NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENT
For the year ended June 30, 2024
Subsequent to initial recognition, investment properties are measured at fair value at each reporting date. The changes in
fair value is recognised in the statement of profit or loss.

When the Company determines that the fair value of an investment property under construction is not reliably measurable
but expects the fair value of the property to be reliably measurable when construction is complete, the Company measures
that investment property at cost until either its fair value becomes reliably measurable or construction is completed
(whichever is earlier).

3.6 Financial instruments

3.6.1 Initial recognition, classification and measurement

The Company recognizes a financial asset when and only when it becomes a party to the contractual provisions of the
instrument evidencing investment.

Regular way purchase of investments are recognized using settlement date accounting i.e. on the date on which settlement
of the purchase transaction takes place. However, the Company follows trade date accounting for its own (the house)
investments. Trade date is the date on which the Company commits to purchase or sell its asset.

Transactions of purchase under resale (reverse-repo) of marketable securities including the securities purchased under
margin trading system are entered into at contracted rates for specified periods of time. Amounts paid under these agreements
in respect of reverse repurchase transactions are recognized as a receivable. The difference between purchase and resale
price is treated as income from reverse repurchase transactions in marketable transactions / margin trading system and
accrued on a time proportion basis over the life of the reverse repo agreement.

The Company classifies its financial assets into either of following three categories:

(a) financial assets measured at amortized cost.

(b) fair value through other comprehensive income (FVOCI); and
(c) fair value through profit or loss (FVTPL)

(a) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it is held within business model whose objective is to hold assets to
collect contractual cash flows, and its contractual terms give rise on specified dates to cash flows that are solely
payments of principal and interest on principal amount outstanding.

Such financial assets are initially measured at fair value plus transaction costs that are directly attributable to the acquisition
or issue thereof.

(b) Financial assets at FVOCI

A financial asset is classified as at fair value through other comprehensive income when it is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial assets and its contractual terms
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

Such financial assets are initially measured at fair value plus transaction costs that are directly attributable to the acquisition
or issue thereof.

(c) Financial assets at FVTPL

A financial asset shall be measured at fair value through profit or loss unless it is measured at amortised cost or at fair
value through other comprehensive income, as aforesaid. However, for an investment in equity instrument which is not
held for trading, the Company may make an irrevocable election to present in other comprehensive income subsequent
changes in the fair value of the investment.

Such financial assets are initially measured at fair value.

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NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
3.6.2 Subsequent measurement

(a) Financial assets measured at amortized cost

These assets are subsequently measured at amortized cost (determined using the effective interest method) less accumulated
impairment losses.

Interest / markup income, foreign exchange gains and losses and impairment losses arising from such financial assets are
recognized in the statement of profit or loss.

(b) Financial assets at FVOCI

These are subsequently measured at fair value less accumulated impairment losses.

A gain or loss on a financial asset measured at fair value through other comprehensive income is recognised in other
comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset
is derecognised or reclassified. When the financial asset is derecognised , the cumulative gain or loss previously recognised
in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. Interest is calculated
using the effective interest method and is recognised in profit or loss.

(c) Financial assets at FVTPL

These assets are subsequently measured at fair value.

Net gains or losses arising from remeasurement of such financial assets as well as any interest income accruing thereon are
recognized in the statement of profit or loss. However, for an investment in equity instrument which is not held for trading
and for which the Company has made an irrevocable election to present in other comprehensive income subsequent changes
in the fair value of the investment, such gains or losses are recognized in other comprehensive income. Further, when such
investment is disposed off, the cumulative gain or loss previously recognised in other comprehensive income is not reclassified
from equity to profit or loss.

3.6.3 Impairment

The Company recognises a loss allowance for expected credit losses in respect of financial assets measured at amortised cost.

For trade debts and receivables from margin financing, the Company applies the IFRS 9 'Simplified Approach' to measuring
expected credit losses which uses a lifetime expected loss allowance.

For other financial assets, the Company applies the IFRS 9 'General Approach' to measuring expected credit losses whereby the
Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the
credit risk on that financial instrument has increased significantly since initial recognition. However, if, at the reporting date, the
credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss
allowance for that financial instrument at an amount equal to 12-month expected credit losses.

The Company measures expected credit losses on financial assets in a way that reflects an unbiased and probability-weighted
amount, time value of money and reasonable and supportable information at the reporting date about the past events, current
conditions and forecast of future economic conditions. The Company recognises in profit or loss, as an impairment loss, the
amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

3.6.4 De-recognition

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been
transferred and the Company has transferred substantially all risks and rewards of ownership.

The Company directly reduces the gross carrying amount of a financial asset when the Company has no reasonable expectations
of recovering the financial asset in its entirety or a portion thereof. A write-off constitutes a derecognition event.

80 AHL Annual Report | 2024

NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
3.7 Financial liabilities

Financial liabilities are classified as measured at amortized cost or 'at fair value through profit or loss' (FVTPL). A financial
liability is classified as at FVTPL if it is classified as held for trading, it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognized in the statement of profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognized in the statement of profit or loss. Any gain or loss on
de-recognition is also recognized in the statement of profit or loss.

Financial liabilities are derecognized when the contractual obligations are discharged or cancelled or have expired or when
the financial liability's cash flows have been substantially modified.

3.8 Offsetting of financial assets and financial liabilities

Financial assets and liabilities are offset when the Company has a legally enforceable right to offset and intends to settle
either on a net basis or to realise the asset and settle liability simultaneously.

3.9 Trade debts and receivables against margin financing

These are carried at their transaction price less any allowance for lifetime expected credit losses. A receivable is recognized
on the settlement date as this is the point in time that the payment of the consideration by the customer becomes due.

3.10 Cash and cash equivalents

Cash and cash equivalent are carried in the statement of financial position at amortized cost. For the purpose of the
statement of cash flows, cash and cash equivalents comprise cash and bank balances and short term running finance.

3.11 Staff retirement benefits - Defined contribution plan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate fund and will have no legal or constructive obligation to pay further contributions if the fund does not hold
sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. As a consequence,
actuarial risk (that benefits will be less than expected) and investment risk (that assets will be insufficient to meet expected
benefits) fall, in substance, on the employee.

The Company operates a defined contribution plan i.e. recognized provident fund ("the Fund") for all of its eligible employees
in accordance with trust deed and rules made thereunder. Monthly contributions at the rate 12.50% of basic salary are
made to the Fund by the Company and the employees.

When an employee has rendered service to the Company during a period, the Company recognises the contribution
payable to a defined contribution plan in exchange for that service as an expense in profit or loss and as a liability in the
statement of financial position (accrued expense), after deducting any contribution already paid. If the contribution already
paid exceeds the contribution due for service before the end of the reporting period, the Company recognises that excess
as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or
a cash refund.

When contributions to a defined contribution plan are not expected to be settled wholly before twelve months after the
end of the annual reporting period in which the employees render the related service, they are discounted using the
discount rate determined by reference to market yields at the end of the reporting period on high quality corporate bonds
(or when there is no deep market in such bonds, the government bonds) having term consistent with the estimated term of
the post-employment benefit obligations.

3.12 Levies and Taxation

Levies

A levy is an outflow of resources embodying economic benefits imposed by the government that does not meet the definition
of income tax provided in the International Accounting Standard (IAS) 12 'Income Taxes' because it is not based on taxable
profit.

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NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
In these financial statements, levy includes minimum tax under section 113 or other sections of Income tax ordinance, Income
tax under final tax regime, workers' welfare fund expense and workers' profit participation. The corresponding effect of levy
other than worker's welfare fund expense and workers' profit participation, advance tax paid has been netted off and the net
position is shown in the statement of financial position.

Current tax

In these financial statements , minimum tax on local sales revenue is recognized as levy under section 113 of the Income Tax
Ordinance and other sections of the said ordinance. Any excess charged under the normal tax regime is recognized as current
tax.

In these financial statements , Income tax under final tax regime is recognized as levy and the excess amount charged is recognized
as current tax.

Deferred tax

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. However, deferred income taxes are not accounted for if they
arise from the initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the
transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is measured using tax rates (and laws) that
have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled.

A deferred tax asset is recognised only to the extent that the entity has sufficient taxable temporary differences or there is
convincing other evidence that the sufficient taxable profit will be available against which the unused tax losses or unused tax
credits can be utilized by the entity. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is
no longer probable that the related tax benefit will be realised.

Judgment and estimates

Significant judgment is required in determining the income tax expenses and corresponding provision for tax. The Company
recognizes liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. Where the final tax
outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and
deferred tax assets and liabilities in the period in which such determination is made.

Further, the carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current
assessment of future taxable profits. If required, carrying amount of deferred tax asset is reduced to the extent that it is no
longer probable that sufficient taxable profits to allow the benefit of part or all of that recognised deferred tax asset to be
utilised. Any such reduction shall be reversed to the extent that it becomes probable that sufficient taxable profit will be
available.

Offsetting

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities
and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.

3.13 Provisions and contingent liabilities

Provisions

A provision is recognised in the statement of financial position when the Company has a legal or constructive obligation as a
result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating
losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.

82 AHL Annual Report | 2024

NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase
in the provision due to the passage of time is recognised as interest expense.

As the actual outflows can differ from estimates made for provisions due to changes in laws, regulations, public expectations,
technology, prices and conditions, and can take place many years in the future, the carrying amounts of provisions are
reviewed at each reporting date and adjusted to take account of such changes. Any adjustments to the amount of previously
recognised provision is recognised in the statement of profit or loss unless the provision was originally recognised as part
of cost of an asset.

Contingent liabilities

A contingent liability is disclosed when the Company has a possible obligation as a result of past events, whose existence
will be confirmed only by the occurrence or non-occurrence, of one or more uncertain future events not wholly within the
control of the Company; or the Company has a present legal or constructive obligation that arises from past events, but it
is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or the
amount of the obligation cannot be measured with sufficient reliability.

3.14 Operating revenue

Revenue from trading activities - brokerage commission

Commission revenue arising from sales / purchase of securities on clients' behalf is recognized on the date of settlement of
the transaction by the clearing house.

Revenue from advisory and consultancy services

Revenue is recognized when the performance obligation is satisfied i.e. when services are provided.

'The Company does not expect to have contracts where the period between the services to the customer and payment by
the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time
value of money.

Dividend income

Dividends received from investments measured at fair value through profit or loss and at fair value through other
comprehensive income are recognized in the statement of profit or loss when the right to receive payment is established, it
is probable that the economic benefits associated with the dividend will flow to the Company and the amount of the
dividend can be measured reliably. This applies even if they are paid out of pre-acquisition profits, unless the dividend
clearly represents a recovery of a part of the cost of an investment. In this case, dividend is recognized in other comprehensive
income if it relates to an investment measured at fair value through other comprehensive income.

Mark up / interest income

Mark-up / interest income is recognized on a time proportion basis on the principal amount outstanding and at the rate
applicable.

3.15 Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit
or loss in the period in which they are incurred.

To the extent that the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the Company
determines the amount of borrowing costs eligible for capitalisation as the actual borrowing costs incurred on that borrowing
during the period less any investment income on the temporary investment of those borrowings.

AHL Annual Report | 2024 83