NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENT
For the year ended June 30, 2024
Value in Hair Cut/ Net Adjusted
S.No. Head of Account
Pak Rupees Adjustments Value
3.6 Amount Payable under REPO - - -
Repo adjustment
In the case of financier/purchaser the total amount receivable under Repo less the 110%
3.7 of the market value of underlying securities.
In the case of financee/seller the market value of underlying securities after applying
haircut less the total amount received, less value of any securities deposited as collateral
by the purchaser after applying haircut less any cash deposited by the purchaser. - - 107,907,804
Concentrated proprietary positions
If the market value of any security is between 25% and 51% of the total proprietary
3.8
positions then 5% of the value of such security. If the market of a security exceeds 51%
of the proprietary position, then 10% of the value of such security - - -
Opening Positions in futures and options
i. In case of customer positions, the total margin requirements in respect of open
3.9 positions less the amount of cash deposited by the customer and the value of securities
held as collateral/ pledged with securities exchange after applying VaR haircuts - -
ii. In case of proprietary positions , the total margin requirements in respect of open
positions to the extent not already met - -
Short sell positions
i. Incase of customer positions, the market value of shares sold short in ready market
on behalf of customers after increasing the same with the VaR based haircuts less
the cash deposited by the customer as collateral and the value of securities held as
3.10 collateral after applying VAR based Haircuts - - -
ii. Incase of proprietary positions, the market value of shares sold short in ready
market and not yet settled increased by the amount of VAR based haircut less the
value of securities pledged as collateral after applying haircuts. - - -
3.11 Total Ranking Liabilities - - 159,890,653
1,273,181,740 Liquid Capital 656,939,848

39. GENERAL

39.1 Operating segment

These consolidated financial statements have been prepared on the basis of a single reportable segment as the Group's asset
allocation decisions are based on a single and integrated business strategy.

All non-current assets of the Group as at June 30, 2024 are located in Pakistan.

39.2 Customers assets held in the Central Depository System

2024 2023

No. of shares 3,496,929,049 7,155,217,322

Amount of shares 90,465,681,130 85,793,224,247

39.3 Number of employees

The total number of employees and average number of employees at year end and during the year respectively are as follows:
2024 2023
––---–––––– Number ––---––––––

Total number of employees as at 154 168

Average number of employees during the year 161 163

174 AHL Annual Report | 2024

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
39.4 Corresponding figures

The corresponding figures have been rearranged and reclassified, wherever considered necessary, to comply with the
requirements of the Companies Act, 2017 and for the purpose of comparison and better presentation. Following reclassifications
have been made in these consolidated financial statements.

Reclassified from component Reclassified to component Amount

(Rupees)
Accrued expenses Withholding tax payable
(Trade and other payables) (Trade and other payables)
109,071
Other payable Other receivable
(Trade and other payables) (Long-term advances, deposits and other receivable)
320,773

Profit on exposure deposit Other

(Other income) (Other income) 1,529,885

39.5 Date of authorization for issue

These consolidated financial statements were authorized for issue by the Board of Directors of the Company in their meeting
held on October 30, 2024 .

39.6 Level of rounding off

Figures have been rounded off to the nearest rupee.

AHL Annual Report | 2024 175

NOTICE OF TWENTIETH ANNUAL
GENERAL MEETING
Notice is hereby given that the Twentieth Annual General Meeting of Arif Habib Limited (“the Company”) will be held on November 27,
2024 at 10:00 A.M. at PSX Auditorium, Stock Exchange Building, Stock Exchange Road, Karachi along video link facility, to transact the
following business:

Ordinary Business

1) To confirm minutes of the Annual General Meeting held on October 28, 2023 and Extra Ordinary General Meeting held on
December 26, 2023.

2) To review, consider and adopt audited financial statements of the company together with the auditors’ and directors’ report
thereon including approval of the annexures there to, for the year ended June 30, 2024 together with Audited Consolidated
Financial Statements of the Company and the Auditors’ Reports thereon for the year ended June 30, 2024.

In accordance with Section 223 of the Companies Act, 2017, and pursuant to SRO 389(I)/2023 dated 21st March 2023, as well
as the approval granted by shareholders at the AGM held on October 28, 2023, the financial statements of the Company have
been uploaded to the Company's website and can be downloaded via the following weblink or QR code :

https://arifhabibltd.com/downloads/annual-report/June-302024.pdf

3) To consider and approve final dividend for the year ended June 30, 2024, in cash at Rs. 5.00 per share i.e. 50% as recommended
by the Board of Directors.

4) To appoint auditors of the company and fix their remuneration for the financial year 2024-25. The Board of Directors have
recommended for reappointment of M/s. Rahman Sarfaraz Rahim Iqbal Rafiq, Chartered Accountants as external auditors.

Special Business

5) To authorize the Board of Directors of the Company to approve those transactions with related parties (if executed) during the
financial year ending June 30, 2025 or upto the next annual general meeting which require approval of shareholders u/s 207 and
u/s 208 of the Companies Act, 2017, by passing the following special resolution with or without modification:

“RESOLVED THAT the transactions / arrangements / agreements / balances with related parties as disclosed in the audited financial
statements for the year ended June 30, 2024 be and are hereby approved.”

“FURTHER RESOLVED THAT the Board of Directors of the Company be and is hereby authorized to approve the transactions to be
conducted with Related Parties on case to case basis for the financial year ending June 30, 2025 or upto the next annual general meeting.”

“FURTHER RESOLVED THAT the transactions approved by the Board shall be deemed to have been approved by the shareholders u/s
207 and / or u/s 208 of the Companies Act, 2017 (if triggered) and shall be placed before the shareholders in the Annual General Meeting
for their formal ratification/approval u/s 207 and / or 208 of the Companies Act, 2017 (if required).”

6) To consider and if deemed fit, pass the following Special Resolutions with or without modification(s):

Investment in Associated Companies & Associated Undertakings:

“RESOLVED THAT the consent and approval be and is hereby accorded under Section 199 of the Companies Act, 2017 and the Companies
(Investment in Associated Companies or Associated Undertakings) Regulations, 2017 for renewal of following unutilised limits of equity
investment, and sanctioned limits of loans / advances / guarantees etc. in associated companies and associated undertakings, for which
approval has been sought in previous general meeting(s), as mentioned in detail in the Annexure-B of statement under Section 134(3), for
a period upto next annual general meeting, unless specifically approved for a longer period, and shall be renewable thereon for further
period(s) as specified.”

176 AHL Annual Report | 2024

“FURTHER RESOLVED THAT the consent and approval be and is hereby accorded under Section 199 of the Companies Act, 2017
and the Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017, investments in associated
companies transferred pursuant to the sanction of the Scheme of Arrangement by the Honourable High Court of Sindh pertaining to,
inter alia, the demerger of certain non-core business, including assets, liabilities and obligations, from Arif Habib Limited (AHL) and
the merger / amalgamation of the same with and into Arif Habib Corporation Limited (AHCL), being the holding company of AHL,
along with ancillary matters, be and is hereby approved.”

Amount in Million

Name of Companies & Undertakings Renewal Requested

Equity Loan / Advance / Guarantee

156 250
1 Safemix Concrete Products Limited
- 1,500
2 Arif Habib Corporation Limited
870 1,000
3 Power Cement Limited
589 1,000
4 Aisha Steel Mills Limited
588 1,000
5 Javedan Corporation Limited

6 REITS under management of Arif Habib

*3,000
Dolmen REIT Management Limited

“FURTHER RESOLVED THAT the consent and approval be and is hereby accorded under Section 199 of the Companies Act, 2017
and the Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017, *unutilized limit of investment
amounting to Rs. 3,000 Million for the REIT Schemes under management of Arif Habib Dolmen REIT Management Ltd. (associated
Company), be hereby approved to be continue to be utilized in any form / nature of investment including equity, loans, advances,
running finance, guarantee, indemnity, pledge of shares etc.”

“FURTHER RESOLVED THAT the Chief Executive and/or the Company Secretary be and are hereby authorized to take and do,
and/or cause to be taken or done, any/all necessary actions, deeds and things which are or may be necessary for giving effect to the
aforesaid resolutions and to do all acts, matters, deeds, and things which are necessary, incidental and/or consequential to the
investment of the Company’s funds as above, as and when required at the time of investment, including but not limited to negotiating
and executing any necessary agreements/documents, and any ancillary matters thereto.”

Any Other Business

7) To consider any other business with the permission of the Chair.

Statements under Section 134(3) of the Companies Act, 2017 pertaining to the special business is being sent to the shareholders
along with this notice.

By order of the Board

Karachi Muhammad Taha Siddiqui
Wednesday, November 6, 2024 Company Secretary

AHL Annual Report | 2024 177

NOTES:

A. Book closure:

i) The share transfer books of the Company will remain closed from November 21, 2024 to November 27, 2024 (both days
inclusive). Transfers in good order, received at the office of Company’s Share Registrar, CDC Share Registrar Services Limited,
CDC House, 99 – B, Block ‘B’, S.M.C.H.S., Main Shahrah-e-Faisal, Karachi-74400 by close of the business on November 20, 2024
will be treated in time for the purpose of attending the annual general meeting and for determination of entitlement of share-
holders to cash dividend.

ii) All members/shareholders are entitled to attend, speak and vote at the annual general meeting. A member/shareholder may
appoint a proxy to attend, speak and vote on his/her behalf. The proxy need not be a member of the Company. Proxies in order
to be effective must be received at the office of our Registrar: M/s. CDC Share Registrar Services Limited, CDC House, 99 – B,
Block ‘B’, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400 not less than 48 hours before the meeting.

iii) In pursuance of Circular No. 1. of 2000 of SECP dated January 26, 2000 the beneficial owners of the shares registered in the
name of Central Depository Company (CDC) and/or their proxies are required to produce their Computerized National Identity
Card (CNIC) or passport for identification purpose at the time of attending the meeting. The form of proxy must be submitted
with the Company within the stipulated time, duly witnessed by two persons whose names, addresses and CNIC numbers must
be mentioned on the form, along with attested copies of the CNIC or the passport of the beneficial owner and the proxy.

In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature of the nominee shall
be produced at the time of the meeting.

iv) Members are requested to intimate any changes in address immediately to Company’s Share Registrar, CDC Share Registrar
Services Limited, CDC House, 99 – B, Block ‘B’, S.M.C.H.S., Main Shahra-e-Faisal, Karachi-74400.

B. Participation of shareholders through online facility

In order to maximize the member’s participation, the Company is convening this AGM via video link in addition to holding physi-
cal meeting with shareholders., the shareholders shall be entitled to attend the proceedings of the AGM through online means
using a video link facility, Zoom application or other electronic means.

The shareholders will be able to login and participate in the AGM proceedings through their smartphones or computer devices
from their homes or any convenient location after completing all the formalities required for the verification and identification
of the shareholders.

The login facility will be opened at 09:45 a.m. on November 27, 2024 enabling the participants to join the proceedings which will
start at 10:00 a.m. sharp.

Shareholders interested in attending the AGM through electronic means, are requested to register themselves by submitting
their following particulars and valid copy of CNIC at the Company’s designated email address agm2024@arifhabibltd.com with
subject of “Registration for AHL AGM 2024” not less than 48 hours before the time of the meeting. The link to the zoom applica-
tion will be sent to the shareholders on the email address provided in the below table:

Shareholder’s Name CNIC No. Folio / CDC Account No. Cell No. No. of shares held Email address

Login facility will be shared with the shareholders whose emails addresses are provided on above table, shareholders can also
provide their comments / suggestions on agm2024@arifhabibltd.com or Whatsapp or SMS on 0321-8210503 for the agenda
items proposed to be conducted at the AGM in the same manner as it is being discussed in the AGM, and later shall be made part
of the minutes of the meeting.

C. Provision of online video facility

If the Company receives a demand (at least 7 days before the date of meeting) from shareholder(s) holding an aggregate 10% or
more shareholding residing in any other city, to participate in the meeting through video link, the Company will arrange video
link facility in that city.

Shareholders, who wish to participate through video-link facility, are requested to fill in Video Link Facility Form available at
Company's website and send a duly signed copy to the Registered Address of the Company. It may be noted that no person other
than the member or proxy holder can attend the meeting through video link facility.

D. Vote Casting In-Person or Through Proxy

Polling booth will be established at the place of physical gathering of the AGM for voting.

178 AHL Annual Report | 2024