Abstract:
The research is about the performance review of selected
modaraba companies. The primary object of this study to assess the
perception regarding modaraba in Pakistan with in last five year. The main
source of data collection is secondary approach. To get financial overview,
annual reports of selected modaraba and brokerage houses analysis
report on modaraba are used. The broad problem area of study is to find
out modaraba, s performance in Pakistan in which researcher select four
modaraba companies for five years from 1999 to 2003. These modaraba
companies are trust modaraba, UDL modaraba and Paramount modaraba
and first allied bank modaraba Research finds out why Modaraba not
perform well during last decade. The examining different variables like
return on modaraba certificates, return on equity, return on assets, return
on total capital, business, innovation, management, and earning per
share, dividend, and dividend payout ratio.
These figures of selected companies have been taken from their
annual and different article of financial expert. Researcher analyzes what
role can play government to strengthen the modaraba sector in term of
technology innovation liquidity management. The researcher has done
financial analysis of selected modarabas in term of ratios. Then an
average of ratios is calculated to get inkling of performance of industry.
The performance trehd is decreasing continuously but
performance in current year is reawakening, reason may be decreased
interest rates. Due to low interest rates, instead of keeping money in
banks, people are moving toward stock market. Research result shows
that people are not well aware about modarabas, modarabas main
business in mutual fund that a form of modaraba business but it is found
that people working there' are not sincere with the people who makes
investment in this mode of business. Researcher analysis the report of the
brokerage houses shows that management of modarabas not promoting
modarabas business or modaraba's concept
