NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENT
For the year ended June 30, 2024
23. OPERATING REVENUE
2024 2023
Note ––---–––––– Rupees ––---––––––

Equity brokerage revenue 618,282,015 354,804,313

Inter bank brokerage revenue 23.1 163,171,183 116,066,254
Commodity brokerage revenue 36,994,583 37,908,326
Advisory and consultancy fee 250,218,507 343,499,284
Markup on margin financing 49,928,245 63,294,214
Dividend income on investment in equity securities 11,811,378 340,651,522
Markup on corporate debt securities 25,779,266 275,870,361
1,156,185,177 1,532,094,274

23.1 Break up - Inter bank brokerage revenue

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

Forex income 7,849,020 7,388,325

Money market income 155,322,163 108,677,929
163,171,183 116,066,254

24. NET CHANGE IN UNREALIZED LOSS

ON INVESTMENTS
2024 2023
Note ––---–––––– Rupees ––---––––––

Long term investments (726,580) 264,508,644

Short term investments 10.1 & 10.2 (18,951,081) (3,379,440)
(19,677,661) 261,129,204

25. NET CHANGE IN UNREALIZED GAIN / (LOSS) ON

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

(Decrease) / Increase in fair value of open plots / (100,000) 254,106,447

offices held at year end 26.1 (749,029) (1,270,875,827)
Less: Decrease in unrealized gain upon sale (849,029) (1,016,769,380)

154 AHL Annual Report | 2024

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
26. ADMINISTRATIVE AND OPERATING EXPENSES
2024 2023
Note ––---–––––– Rupees ––---––––––

Salaries and other benefits 26.1 722,144,917 341,896,891

Motor vehicle and travelling expense 61,635,162 52,236,500
CDC and clearing house charges 25,169,842 22,729,016
Building maintenance 36,541,579 43,783,047
Depreciation on right-of-use assets 5 26,477,305 29,134,843
Depreciation on property and equipment 4 14,470,893 17,824,555
Man power services 26.2 20,714,800 25,192,644
Communication 26,097,613 26,725,059
Legal and professional charges 7,926,985 3,300,700
Insurance 12,649,640 11,014,265
Repairs and maintenance 10,219,615 7,262,623
Fees and subscription 30,696,982 21,555,848
Printing and stationery 3,444,501 4,462,462
Business representation 5,237,246 6,197,559
Rent, rates and taxes 1,250,960 867,191
Auditors' remuneration 26.3 2,735,000 2,615,000
Advertisement and business promotion 8,914,026 5,374,572
Conveyance and meals 5,289,306 4,201,893
Meeting expenses 1,650,000 1,500,000
Amortization on intangible assets 6.1 278,907 371,876
Donation 26.4 - 3,382,000
Settlement against NFL 16,124,921 13,867,563
Others 1,039,670,200 645,496,107

26.1 Salaries and other benefits

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

Salaries and other benefits 26.1.1 231,817,922 198,351,847

Commission / bonus 490,326,995 143,545,044
722,144,917 341,896,891

26.1.1 Salaries and benefits include Rs. 10.05 million (2023: Rs. 10.66 million) in respect of provident fund contribution.

26.2 These represent charges paid to M/s. Arif Habib Consultancy (Private) Limited, a related party, in respect of recruitment
services obtained for providing senior and highly qualified consultants to lead the Holding Company's investment banking
department.

26.3 Auditors' remuneration

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

Annual audit fee 1,650,000 1,650,000

Half yearly review 400,000 400,000
Review of compliance with Code of Corporate Governance 200,000 200,000
Other certifications 485,000 365,000
2,735,000 2,615,000

AHL Annual Report | 2024 155

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
26.4 Donation

None of the directors or their spouse had any interest in the donees. Further, the particulars of the parties to whom donation
paid exceeds Rs. 1 million or 10% of the total donation, whichever is higher, are as follows:

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

Momina & Duraid Foundation - 1,500,000

Ali Afzal & Mian Muhammad Afzal - 1,000,000
Ali Hassan Mangi Memorial Trust - 500,000
Others - 382,000
- 3,382,000

27. OTHER CHARGES

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

Provision for expected credit losses on trade debts 11.2 12,627,092 24,688,276
Loss on Sale of asset 402,588 -
Irrecoverable trade debt written off - 271,544
Other receivable written off - 1,900,073
Other 27.1 1,663,198 -
14,692,878 26,859,893

27.1 This represents tax u/s 161 of Income Tax Ordinance, 2001 along with penalties and default surcharge.

28. OTHER INCOME

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

Markup on reverse repo transaction 32,144,885 13,524,000

Markup on loan to related party - 2,071,785
Markup on margin trading deposits 2,546,932 1,644,685
Profit on savings accounts 342,157,375 84,983,744
Profit on exposure deposit 35,451,779 4,842,542
Gain on termination of lease - 144,302
Reversal of provision of bad debt 11.2 - 7,630,328
Reversal of provision of margin financing 12.2 - 1,917,749
Other 39.4 1,977,127 1,529,885
414,278,098 118,289,020

29. FINANCE COSTS

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

Markup on short term borrowings 29.1 & 29.2 66,811,214 617,158,325

Other finance costs 29.3 31,188,962 20,728,580
98,000,176 637,886,905

156 AHL Annual Report | 2024

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
29.1 Markup on short term borrowings
2024 2023
––---–––––– Rupees ––---––––––

Markup on borrowing from banking companies 66,811,214 349,760,306

Markup on borrowing from related parties:

- M/s. Javedan Corporation Limited - 246,267,157
- Mr. Arif Habib - 21,130,862
- 267,398,019
66,811,214 617,158,325

29.2 Markup on short term borrowing from banking companies, amounted to Rs. 236.071 million, out of which, Rs. 66.811
million related to the Holding Company has been recorded, whereas, the remaining is shown as Receivable from M/s. Arif
Habib Corporation Limited, as disclosed in note 14 to these consolidated financial statements.

29.3 Other finance costs

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

Finance cost on lease liability 17,245,125 916,144

Markup on MTS securities 1,721,732 1,715,421
Bank charges 12,222,105 15,216,100
Guarantee charges to Parent Company - 2,880,915
31,188,962 20,728,580

30. LEVIES
2024 2023
––---–––––– Rupees ––---––––––

Excess of minimum tax over normal tax - 47,464,265

Income tax - Final tax regime 2,564,850 49,509,147
Income tax - Tax on deemed rental income u/s 7E 389,000 2,020,000
2,953,850 98,993,412

31. TAXATION
2024 2023
––---–––––– Rupees ––---––––––
Current tax
- for the year 161,082,234 34,623,701
- for prior year (3,464,521) (8,093,592)
157,617,713 26,530,109
Deferred (5,977,246) 42,444,881
151,640,467 68,974,990

AHL Annual Report | 2024 157

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
31.1 Relationship between tax expense and accounting profit

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

Profit before taxation 772,719,504 348,158,218

Tax at the applicable rate of 29% (2023: 29%) 224,088,656 100,965,883

Tax effect of:

- income under Presumptive Tax Regime (1,323,777) (51,000,161)
- income under Minimum Tax Regime - 46,925,872
- income under Final Tax Regime (3,495,897) -
- exempt income / permanent differences (217,217) (365,849,740)
- realized and unrealized capital losses on short term investments (103,079,358) 145,368,956
- unrealized capital loss on long term investment (4,006,393) -
- unrealized capital gain on investment property 246,218 269,079,304
- prior year charge (3,464,521) (8,093,592)
- super tax under section 4C of Income Tax Ordinance, 2001 35,563,196 23,152,759
- tax on deemed income under section 7E of Income Tax
Ordinance, 2001 389,000 2,020,000
- amount transferred to levies (2,953,850) (98,993,412)
- other miscellaneous items 9,894,410 5,399,121
151,640,467 68,974,990

31.2 Except for the matters disclosed in note 23.1, income tax assessments of the Holding Company are deemed to be finalized as per
tax returns file up to tax year 2023. Tax returns are subject to further assessment under provisions of the Income Tax Ordinance,
2001 ("the Ordinance") unless selected for an audit by the taxation authorities. The Commissioner of Income Tax may, at any
time during a period of five years from date of filing of return, select a deemed assessment order for audit.

32. EARNINGS PER SHARE - BASIC AND DILUTED

32.1 Basic earnings per share 2024 2023

––---–––––– Rupees ––---––––––

Profit after taxation 618,125,187 181,133,872

––---–– Number of shares ––---––

Weighted average number of ordinary shares
outstanding during the year 65,340,000 65,340,000

----––---––-- Rupees ----––---––--

Earnings per share - basic 9.46 2.77

32.2 Diluted earnings per share

There is no dilutive effect on the basic earnings per share of the Group, since there were no potential ordinary shares in issue as
at June 30, 2024 and June 30, 2023.

158 AHL Annual Report | 2024