NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENT
For the year ended June 30, 2024
To the extent that the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the
Company determines the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the expenditures
on that asset. The capitalisation rate is the weighted average of the borrowing costs applicable to all borrowings of the Company
that are outstanding during the period. However, the Company excludes from this calculation borrowing costs applicable to
borrowings made specifically for the purpose of obtaining a qualifying asset until substantially all the activities necessary to
prepare that asset for its intended use or sale are complete. The amount of borrowing costs that the Company capitalises during
a period does not exceed the amount of borrowing costs it incurs during that period.

The Company begins capitalising borrowing costs as part of the cost of a qualifying asset on the 'commencement date' which is
the date when the Company first meets all of the following conditions: (a) it incurs expenditures for the asset; (b) it incurs
borrowing costs; and (c) it undertakes activities that are necessary to prepare the asset for its intended use or sale.

The Company suspends capitalisation of borrowing costs during extended periods in which it suspends active development of a
qualifying asset.

The Company ceases capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset
for its intended use or sale are complete.

4. PROPERTY AND EQUIPMENT - owned assets

Leasehold Leasehold Office Furniture & Computers &
Offices Improvements Equipment Fixtures Allied Items Vehicles Total

------------------------------------------------------------ Rupees ------------------------------------------------------------

As at June 30, 2022
Cost 32,473,333 102,485,179 8,116,043 18,403,021 58,975,716 5,427,000 225,880,292
Accumulated depreciation (8,738,234) (88,805,841) (2,637,230) (4,614,841) (36,673,308) (431,949) (141,901,403)
Net book value 23,735,099 13,679,338 5,478,813 13,788,180 22,302,408 4,995,051 83,978,889

Movement during the year

ended June 30, 2023

Opening net book value 23,735,099 13,679,338 5,478,813 13,788,180 22,302,408 4,995,051 83,978,889
Additions during the year - - 41,000 - 440,024 - 481,024
Depreciation for the year (3,560,267) (2,051,903) (827,462) (2,114,921) (7,787,925) (999,011) (17,341,489)
Closing net book value 20,174,832 11,627,435 4,692,351 11,673,259 14,954,507 3,996,040 67,118,424

As at June 30, 2023

Cost 32,473,333 102,485,179 8,157,043 18,403,021 59,415,740 5,427,000 226,361,316
Accumulated depreciation (12,298,501) (90,857,744) (3,464,692) (6,729,762) (44,461,233) (1,430,960) (159,242,892)
Net book value 20,174,832 11,627,435 4,692,351 11,673,259 14,954,507 3,996,040 67,118,424

Movement during the year

ended June 30, 2024

Opening net book value 20,174,832 11,627,435 4,692,351 11,673,259 14,954,507 3,996,040 67,118,424
Additions during the year - - 2,380,877 - 2,990,290 - 5,371,167

Disposals
- Cost - - (864,000) - - - (864,000)
- Accumulated depreciation - - 241,412 - - - 241,412
- - (622,588) - - - (622,588)
Depreciation for the year (3,026,222) (1,744,116) (889,176) (1,779,526) (5,520,226) (799,210) (13,758,476)
Closing net book value 17,148,610 9,883,319 5,561,464 9,893,733 12,424,571 3,196,830 58,108,527

As at June 30, 2024

Cost 32,473,333 102,485,179 9,673,920 18,403,021 62,406,030 5,427,000 230,868,483
Accumulated depreciation (15,324,723) (92,601,860) (4,112,456) (8,509,288) (49,981,459) (2,230,170) (172,759,956)
Net book value 17,148,610 9,883,319 5,561,464 9,893,733 12,424,571 3,196,830 58,108,527

Annual rates of depreciation 15% 15% 15% 15% 33% 20%

84 AHL Annual Report | 2024

NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
5. RIGHT-OF-USE ASSETS
2024 2023
––---–––––– Rupees ––---––––––

Opening net book value 2,279,667 32,555,873

Add: Additions during the year 87,523,345 -
- (1,141,363)
Less: Disposal during the year 89,803,012 31,414,510

Less: Depreciation charged during the year (26,477,305) (29,134,843)

Closing net book value 63,325,707 2,279,667

Depreciation rate (per annum) 20% to 33% 20% to 33%

5.1 This represents Company's right to use certain real estate properties held by it under lease arrangements. The principal
terms and conditions of the said arrangements are as follows:

Principal Office Regional Office

(Karachi) (Peshawar)
Rotocast Engineering Co. Mr. Ahsan Mahmood
Lessor name (Pvt.) Ltd.
Block-B, 2nd Floor, Office No.04, 3rd Floor,
Address of the leased property Arif Habib Centre, Plot No. 23, Legacy Tower,
Off. M.T. Khan Road Koh-e-Noor City
Lease agreement date July 01, 2023 October 10, 2020
Lease commencement date July 01, 2023 October 15, 2020
Initial contractual term of the lease 3 year 5 years
Availability of extension option? No Yes
No. of years for which the lease N/A Indefinite
extension option is available
Estimated lease term (as on the date 5 years
3 year
of commencement of the lease)

6. INTANGIBLES ASSETS
2024 2023
Note
––---–––––– Rupees ––---––––––

Computer software 6.1 836,719 1,115,626

Trading Right Entitlement Certificate and offices 6.2 4,600,000 4,600,000
5,436,719 5,715,626

AHL Annual Report | 2024 85

NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
6.1 Computer software
2024 2023
––---–––––– Rupees ––---––––––
Net carrying amount
Opening net book value 1,115,626 1,487,502
Amortisation charge (278,907) (371,876)
Closing net book value 836,719 1,115,626

Gross carrying amount

Cost 7,949,132 7,949,132
Accumulated amortisation (7,112,413) (6,833,506)
Net book value 836,719 1,115,626

Amortisation rate 25% 25%

6.2 Trading Right Entitlement Certificate (TREC) and offices

2024 2023
Note
––---–––––– Rupees ––---––––––
Trading Right Entitlement Certificate
- Cost 6.2.1 26,000,000 26,000,000
- Accumulated impairment (23,500,000) (23,500,000)
6.2.2 2,500,000 2,500,000
Offices- booths - Pakistan Stock Exchange Limited 2,100,000 2,100,000
4,600,000 4,600,000

6.2.1 This represents TREC received by the Company in accordance with the Stock Exchanges (Corporatization, Demutualization and
Integration) Act, 2012 as amended by the Stock Exchanges (Corporatization, Demutualization and Integration) (Amendment)
Act, 2015. These have been carried at cost less accumulated impairment losses.

6.2.2 PSX vide notice no. PSX/N - 225 dated February 16, 2021 have notified the notional fees of a Trading Right Entitlement
Certificate which amounts to Rs. 2.5 million.

7. LONG TERM INVESTMENTS

2024 2023
Note
––---–––––– Rupees ––---––––––

Investment in subsidiaries 7.1 38,000,000 38,000,000

Investment in other entities 7.2 30,461,607 1,085,254,068
68,461,607 1,123,254,068

7.1 Investment in subsidiaries - at cost less accumulated impairment

2024 2023 2024 2023
Note
-–––––– Number of Shares ––---–– ––---–––––– Rupees ––---––––––
Rayaan Commodities
38,000,000 38,000,000 (Private) Limited 7.1.1 38,000,000 38,000,000
38,000,000 38,000,000 38,000,000 38,000,000

7.1.1 This represents paid up share capital comprising of 100% ownership in Rayaan Commodities (Private) Limited, formerly named
as Arif Habib Commodities (Private) Limited, which was incorporated on April 02, 2012 as wholly owned subsidiary for the
purpose of expanding non-core revenue system of the commodity brokerage. The total amount of investment approved by the
shareholders of the Company in the extra-ordinary general meeting held on June 16, 2012 is Rs. 100 million. As of reporting
date, the Company had invested a total sum of Rs. 38 million.

86 AHL Annual Report | 2024

NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
7.2 Investment in other entities - at fair value
through profit or loss
2024 2023
Unquoted - Equity Instruments Note
––---–––––– Rupees ––---––––––

ISE Towers REIT Management Company Limited 7.2.1 24,850,127 22,181,370

24,850,127 22,181,370
Quoted - Equity Instruments

LSE Capital Limited 7.2.2 765,317 1,421,528

LSE Ventures Limited 4,846,163 7,585,290
5,611,480 9,006,818
Unquoted - Debt Instrument

Naya Nazimabad Apartment REIT (NRR) - 426,440,880

Rahat Residency REIT (RRR) - 627,625,000
Signature Residency REIT (SRR) - -
1.5 - 1,054,065,880
30,461,607 1,085,254,068

7.2.1 Investment in ISE Towers REIT Management Company Limited

This represents the investment in 3,034,604 (2023: 3,034,604) unquoted ordinary shares of M/s. ISE Towers REIT
Management Company Limited. The reconciliation of the opening and closing carrying amount of the investment is
presented below:
2024 2023
––---–––––– Rupees ––---––––––
Cost of the investment
ISE Tower REIT Management Company Limited 33,380,639 33,380,639

Unrealised gain / (loss):

Balance as at July 01 (11,199,269) (5,887,136)
Unrealised (loss) / gain for the year 2,668,757 (5,312,133)
(8,530,512) (11,199,269)
Balance as at June 30 24,850,127 22,181,370

The Company as per its policy, carried out the valuation of the above investment. In this connection, the valuation
technique used by the Company was Discounted Free Cash Flow to Equity model for business valuation. Assumptions and
inputs used in the valuation technique mainly include risk-free rate, equity risk premium, long term growth rate and
projected rates of increase in revenues, other income and expenses.

Principal assumptions used in the valuation of the above unquoted investments are as under:

2024 2023

Long term growth rate 5.00% 5.00%

Cost of equity 17.50% 17.50%
Projection period 5 5
Value per share (Rs.) 8.19 7.31
Discounted Discounted
Valuation technique used Free Cash Free Cash
Flow to Equity Flow to Equity

AHL Annual Report | 2024 87

NOTES TO THE UNCONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
7.2.2 During the year, M/s LSE Proptech Limited merged into M/s. Modaraba Al-Mali, to become M/s. LSE Capital Limited and the
Company received 245,295 of M/s. LSE Capital Limited, as per the merger scheme against 295,536 quoted ordinary shares of
LSE Proptech Limited. The said new shares have been measured at their fair value (i.e. quoted price) at the reporting date, along
with 842,811 quoted ordinary shares of LSE Ventures Limited.

8. INVESTMENT PROPERTY
2024 2023
Note
––---–––––– Rupees ––---––––––

Open plots of land / offices - at fair value 8.1 38,900,000 202,000,000

Residential flats under construction - at cost 8.2 - 248,749,014
38,900,000 450,749,014

8.1 Open plots of land / offices - at fair value

2024 2023
Note
––---–––––– Rupees ––---––––––

Opening carrying amount (at fair value) 202,000,000 1,576,836,333

Development charges incurred during the year
(subsequent expenditure) - 12,957,220
202,000,000 1,589,793,553

Elimination as a result of demerger scheme 1.5 (155,500,000) -

Disposal during the year:

Sale proceeds during the year 8.1.2 (7,500,000) (1,632,575,000)
Realized gain on disposal - net 749,029 1,261,550,827
Less: Reversal of unrealized gain upon sale 25 (749,029) (1,270,875,827)
(7,500,000) (1,641,900,000)
Fair value gain on remeasurement 25 (100,000) 254,106,447
8.1.3 38,900,000 202,000,000

8.1.1 As of June 30, 2024, the offices comprised of the following:

Offices: Offices bearing no. 60, 61, 62, 63 and 64 situated at first floor of the building complex
of PSX, office bearing no. 220 situated at Lahore Stock Exchange Plaza and offices bearing
no. 106 situated in the Lahore Stock Exchange - South Tower.

8.1.2 During the year, the Company also sold office no. 203 & 314 situated in the Lahore Stock Exchange - South Tower at sale
consideration of Rs. 7.5 million.

8.1.3 The valuation of the investment property was carried out by an independent external property valuer having appropriate
recognised qualification and relevant experience according to which the aggregate fair value and forced sale value of the properties
are stated below:

Fair Value Forced Sale Value

2024 2023 2024 2023
––---–––––––––––––---–––––– Rupees ––---–––––––––––––---––––––
- at fair value
Residential plots - 155,500,000 - 124,400,000
Commercial plots
Offices 12,900,000 20,500,000 10,965,000 17,425,000
- at committed sale price
Committed to sale office 26,000,000 26,000,000 N/A N/A
38,900,000 202,000,000 10,965,000 141,825,000

88 AHL Annual Report | 2024