NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENT
For the year ended June 30, 2024
6.1 Computer software
2024 2023
––---–––––– Rupees ––---––––––
Net carrying amount
3.13 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 Holding 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 other entities 7.1 30,461,607 1,085,254,068

30,461,607 1,085,254,068

7.1 Investment in other entities - at fair value

through profit or loss
2024 2023
Note
Unquoted - Equity Instruments ––---–––––– Rupees ––---––––––

ISE Towers REIT Management Company Limited 7.1.1 24,850,127 22,181,370

24,850,127 22,181,370

Quoted - Equity Instruments

LSE Capital Limited 7.1.2 765,317 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

144 AHL Annual Report | 2024

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
7.1.1 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 Group as per its policy, carried out the valuation of the above investment. In this connection, the valuation technique
used by the Group 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

Valuation technique used Discounted Discounted

Free Cash Free Cash
Flow to Equity Flow to Equity

7.1.2 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 1.5 - 248,749,014
38,900,000 450,749,014

AHL Annual Report | 2024 145

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

9. LONG TERM ADVANCES, DEPOSITS

AND OTHER RECEIVABLE 2024 2023
Note
––---–––––– Rupees ––---––––––
Advance against equity
- Rahat Residency REIT 1.5 - 325,000,000
- Signature Residency REIT 1.5 - 133,298,960
- Neem Exponential Technology Pte. Limited 9.1 37,000,000 37,000,000
37,000,000 495,298,960
Deposits
- Pakistan Stock Exchange Limited 500,461 700,461
- National Clearing Company of Pakistan Limited 1,500,000 1,250,000
- Pakistan Mercantile Exchange Limited 9.3 8,900,001 9,007,205
- Other security deposits 819,911 935,146
11,720,373 11,892,812
Other receivable
- from employees 9.2 1,773,960 320,773
50,494,333 507,512,545

146 AHL Annual Report | 2024

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
9.1 In the year ended June 30, 2023, the Holding Company gave advance against purchase of preference shares of Neem
Exponential Technology Pte. Limited (company registered in Singapore) amounting to Rs. 37,000,000 ($180,000) under
the SAFE (Simple agreement for future equity). It is expected that the preference share will be issued in December, 2024.

9.2 This represents amount paid for the parental insurance of employees of the Holding Company which will be recoverable at
the time of their retirement and secured against their retirement benefits.

9.3 This include deposit amounting to Rs. 8,150,000 against NECL building office.

10. SHORT TERM INVESTMENTS - At fair

value through profit or loss
2024 2023
Note
––---–––––– Rupees ––---––––––
Equity securities:
- quoted 10.1 484,827,933 2,761,251,468

Debt securities:
- quoted 10.2 65,877,709 88,544,078
550,705,642 2,849,795,546

10.1 Investment in quoted equity securities

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

Cost of the investments 513,845,829 3,179,844,352

Unrealised gain / (loss):

Balance as at July 01 (7,691,860) (417,666,876)

Unrealised gain / (loss) for the year (21,326,036) (926,008)
(29,017,896) (418,592,884)
Balance as at June 30 484,827,933 2,761,251,468

10.2 Investment in quoted debt securities

2024 2023
Note
––---–––––– Rupees ––---––––––
Cost of investment
66,566,383 91,607,707
Unrealised gain / (loss):

Balance as at July 01
Unrealised gain / (loss) for the year (3,063,629) (610,197)
2,374,955 (2,453,432)
Balance as at June 30 (688,674) (3,063,629)
10.2.1 65,877,709 88,544,078

10.2.1 These represent the investments in Term Finance (TFC) and Sukuk Certificates made under Market Making arrangements.
The Holding Company has entered into such arrangements in accordance with Chapter 12 of PSX Rule Book with various
Financial and Corporate Institution. Under the arrangements, the Holding Company has to maintain minimum inventory of
TFCs and Sukuks to place bid & offer on daily basis. These TFCs and Sukuks carry coupon rate ranging from 3 month KIBOR
+ 1.5% to 1.7% (2023: 3 month KIBOR + 1.5% to 2.25%), 6 month KIBOR + 1.4% to 2.25% (6 month KIBOR + 0.50% to
2.25%) calculated on the face value of the respective TFCs or Sukuks that is payable quarterly / semi annually.

AHL Annual Report | 2024 147

NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENT
For the year ended June 30, 2024
11. TRADE DEBTS
2024 2023
Note
––---–––––– Rupees ––---––––––
Gross receivables
Equity brokerage - secured 275,462,669 199,931,616
- unsecured 879,031,666 871,827,147
11.1 1,154,494,335 1,071,758,763
Inter bank brokerage - unsecured 33,566,485 27,816,750
Advisory and consultancy fee - unsecured 109,493,747 109,748,485
1,297,554,567 1,209,323,998
Less: Provision for expected credit losses
Equity brokerage - unsecured (879,031,666) (871,827,147)
Inter bank brokerage - unsecured (5,972,463) (5,695,935)
Advisory and consultancy fee - unsecured (77,255,993) (72,109,948)
11.2 (962,260,122) (949,633,030)
335,294,445 259,690,968

11.1 Gross receivables - Equity brokerage

11.1.1 These receivables include Rs.1.175 million (2023: Rs. 0.90 million) due from the related parties. The maximum aggregate amount
outstanding during the year from such parties (with reference to month-end balances) amounted to Rs. 15.738 million (2023: Rs.
275.32 million).

11.1.2 The Holding Company holds capital securities having fair value of Rs. 146,942 million (2023: Rs. 75,027 million) owned by its
clients, as collaterals against trade debts.

11.2 Movement in provision for expected credit losses

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

Balance at the beginning of the year 949,633,030 932,575,082

Charge for the year 27 12,627,092 24,688,276
Reversal during the year 28 - (7,630,328)
Balance at the end of the year 962,260,122 949,633,030

12. RECEIVABLE AGAINST MARGIN FINANCING

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

Considered good 117,387,003 113,367,759

117,387,003 113,367,759

12.1 Margin financing facility is provided to clients on markup basis ranging from 25.00% to 29.50% (2023: 15.00% to 28.50%) per
annum.

148 AHL Annual Report | 2024