Arif Habib : Transmission of Quarterly Report for the Period Ended 30th September 2023

Together

we are Stronger

Quarterly Report 30th September 2023

Content

1. Company Information

1. Directors' Review Report

1. Condensed Interim Unconsolidated Financial Statements

1. Condensed Interim Consolidated Financial Statements

02 Together we are Stronger

Company Information

Board of Directors

Asadullah Khawaja

Chairman

Arif Habib

Chief Executive Officer

Khawaja Najam Ud Din

Roomi

Independent Director

Zeba Bakhtiar

Independent Director

Nasim Beg

Non-Executive Director

Samad A. Habib

Non-Executive Director

Muhammad Ejaz

Non-Executive Director

Kashif A. Habib

Non-Executive Director

Audit Committee

Khawaja Najam Ud Din

Roomi

Chairman

Kashif A. Habib

Member

Muhammad Ejaz

Member

Management

Arif Habib

Chief Executive Officer

Mohsin Madni

Chief Financial Officer &

Chief Operating Officer

Manzoor Raza

Bankers

Allied Bank Limited

Askari Bank Limited

Bank Alfalah Limited

Bank Al Habib Limited

Bank Islami Pakistan

Limited

Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank

Limited

MCB Bank Limited

MCB Islamic Bank Limited

National Bank Of Pakistan

Standard Chartered Bank

(Pakistan) Limited

Sindh Bank Limited

Summit Bank Limited

Soneri Bank Limited

The Bank Of Khyber

The Bank Of Punjab

United Bank Limited

Auditors

A. F. Ferguson & Co. Chartered Accountants

Legal Advisors

Bawaney & Partners Akhund Forbes

Registered & Corporate Office

Arif Habib Centre, 23, M.T.Khan Road Karachi-74000 Phone: [phone] Fax: [phone] Email: [e-mail] Company website: www.arifhabibcorp.com Group website: www.arifhabib.com.pk

Registrar & Share Transfer Agent

CDC Share Registrar Services Limited

CDC House, 99-B,Block-B, S.M.C.H.S, Main Shahrah-e-Faisal, Karachi Phone: [phone] Fax: [phone] URL: www.cdcrsl.com Email: [e-mail]

Company Secretary

Quarterly Report 30th September 2023 03

04 Together we are Stronger

Directors'

Review Report

Dear Shareholders

The Directors of Arif Habib Corporation Limited (AHCL) present herewith the Directors' report of the Company together with interim condensed consolidated and unconsolidated financial statements for the first quarter ended 30th September 2023.

The Economy

The fiscal year 2024 began on a positive note, with several encouraging signs in the economy. Pakistan entered a nine-monthStand-By Arrangement program with the IMF, amounting to USD 3 billion. The current account deficit reduced by more than half in the first two months of the first quarter of the current financial year, and inflation appears to have reached its peak in September 2023. Furthermore, foreign exchange reserves grew from USD 9 billion to USD 13 billion, marking a steady recovery of the Pakistani Rupee against the US Dollar. The KSE100 index also surged, gaining over 6,500 points in July 2023, reflecting growing investor confidence. The continuation of an unchanged monetary policy stance throughout the quarter provides potential support for economic growth.

Financial Results

During the reviewed quarter, our consolidated profit after tax stood at PKR 2,589.66 million, compared to PKR 2,045.80 million in the corresponding quarter of the previous year. This resulted in earnings of PKR 6.34 per share, up from PKR 5.01 per share in the same period last year.

On an unconsolidated basis, we recorded a profit after tax of PKR 843.32 million, translating into earnings of PKR 2.07 per share, compared to PKR 482.86 million and earnings per share of PKR 1.18 in the corresponding period. This improved profitability is attributed to cash dividends from investee companies for the financial year 2023.

Performance of Subsidiaries and Associates

Performance of our subsidiary, Arif Habib Limited (AHL), has improved due to increase in volume and value of traded shares. Fatima Fertilizer Company Limited and Sachal Energy's wind power project maintained impressive performances. Javedan Corporation Limited's and Aisha Steel Mills Limited's performance remained marginal.

Quarterly Report 30th September 2023 05

Future Outlook

In the upcoming months, we anticipate the economy will achieve growth mainly due to better agricultural production, with the possibility of a change in monetary policy stance during the middle of the financial year as inflation trends are expected to come down. The Pakistani Rupee is expected to maintain its gains against the US Dollar in the short-term, although the removal of import restrictions may put pressure on its exchange rate. The Government's initiative of the Special Investment Framework for Cooperation (SIFC) is likely to attract investments from friendly countries in various sectors, and the Government efforts to combat smuggling, border trade abuse, Afghan transit trade, and foreign exchange manipulation, if sustained, will contribute to Pakistan's economic growth.

Acknowledgement

We extend our gratitude to the shareholders of the company for their unwavering confidence and support. We would also like to express our sincere appreciation to our bankers, business partners, the Securities & Exchange Commission of Pakistan, the State Bank of Pakistan, and the management of Pakistan Stock Exchange for their invaluable support and guidance. The unwavering dedication and commitment of our employees during the period is acknowledged and deeply appreciated.

For and on behalf of the Board

Mr. Arif Habib	Mr. Asadullah Khawaja
Chief Executive	Chairman
Karachi: 25th October 2023

Quarterly Report 30th September 2023 7

Condensed Interim

Unconsolidated

Financial Statements

For the three months period ended 30th September 2023

08 Condensed Interim Unconsolidated Statement of Financial Position

1. Condensed Interim Unconsolidated Statement of Profit or Loss and other Comprehensive Income (Unaudited)
2. Condensed Interim Unconsolidated Statement of Changes In Equity (Unaudited)
3. Condensed Interim Unconsolidated Statement of Cash Flows (Unaudited)
4. Notes to the Condensed Interim Unconsolidated Financial Statements (Unaudited)

8 Together we are Stronger

CONDENSED INTERIM UNCONSOLIDATED

STATEMENT OF FINANCIAL POSITION

As at 30th September 2023

	Note	Unaudited	Audited
	30 September	30 June
ASSETS		2023 (Rupees) 2023
NON-CURRENT ASSETS
Property and equipment	5	56,996,059	25,912,136
Intangible assets		257,930	296,615
Long term investments	6	17,555,534,884	17,881,945,203
Long term loan to related party	7	63,886,911	78,103,657
Long term deposits and other receivable		5,880,378	5,880,378
		17,682,556,162	17,992,137,989
CURRENT ASSETS
Loans and advances	8	3,002,282,479	1,781,863,523
Mark-up receivable	9	128,310,101	186,088,244
Prepayments and other receivables	10	936,197,529	10,497,248
Short term investments	11	3,690,471,848	3,803,122,330
Cash and bank balances		41,138,495	40,348,417
		7,798,400,452	5,821,919,762

TOTAL ASSETS	25,480,956,614	23,814,057,751

The annexed notes 1 to 21 form an integral part of these condensed interim unconsolidated financial statements.