Annual Report 2022

ANNUAL REPORT
2022
CONTENTS
Corporate Information 02
Mission/Vision Statement 03
Notice of Annual General Meeting 04
Financial Highlights 06
Chairman's Report 07
Directors Report 08
20
Review Report to the Share Holders on Statement of Compliance with

the Best Practices of the Code of Corporate Governance 21
Statement of Compliance with the Code of Corporate Governance

for the Year Ended June 30, 2022 22
Auditors Report to the Members 24
Statement of Financial Position 28
Statement of Profit & Loss Account 29
Statement of Comprehensive Income 30
Cash Flow Statement 31
Statement of Changes in Equity 32
Notes to the Financial Statements 33
Pattern of Shareholding 59
Form of Proxy 61
CORPORATE INFORMATION
Management Company 786 Investments Limited
G-3 B.R.R. Tower, Hassan Ali Street,
Off I.I. Chundrigar Road, Karachi - 74000 Pakistan
Tel: (92-21) 32603751-54
Email: info@786investments.com
Website: www.786investments.com
Board of Directors Mr. Ahmed Salman Munir Chairperson

Miss Tara Uzra Dawood Chief Executive Officer
Syed Shabahat Hussain Director
Mr. Naveed Ahmed Director
Syed Musharaf Ali Director
Mr. Iqbal Shafiq Director
Mr. Ahmed Zia Sarwar Director
Chief Financial Officer &

Company Secretary Mr. Noman Shakir
Audit Committee Syed Shabahat Hussain Chairman

Mr. Naveed Ahmed Member
Syed Musharaf Ali Member
Human Resource Mr. Ahmed Salman Munir Chairperson

Commitee Miss Tara Uzra Dawood Member
Mr. Naveed Ahmed Member
Auditors Grant Thornton Anjum Rahman

Chartered Accountants
Legal Advisor Rauf & Ghaffar Law Associates (Advocates & Consultants)
Suite # 65, 5th Floor, Fareed Chamber,
Abdullah Haroon Road,
Saddar Karachi, Pakistan.
Registrars F.D. Registrar Services (SMC-Pvt.) Ltd.

Office# 1705, 17th Floor Saima Trade Tower. A,
I.I. Chundrigar Road, Karachi-74000, Pakistan.
Banker: Habib Metropolitan Bank Limited

JS Bank Limited
Rating: PACRA: AM3
02
Mission Statement
To offer our unit holders the best

possible return by expertly diversifying the
Funds investment portfolio into minimal
risk and high yielding instruments and at
all time to be a good corporate citizen.
03
NOTICE OF ANNUAL GENERAL MEETING (AGM XXX)
Notice is hereby given that the 31st Annual General Meeting of the shareholders of the Company will be held on
Saturday, October 22, 2022, at 08:30, am via zoom video, to transact the following business:
Ordinary Business
1- To confirm the Minutes of the Extraordinary Annual General Meeting on dated July 30, 2021.
2- To receive, consider and adopt the Audited Financial Statements of the Company for the year ended
June 30, 2021 together with Directors and Auditors Reports thereon.
3- To appoint the Auditors and fix their remuneration.
4- Any other Business with the permission of the Chair.
By Order of the Board
September 26, 2022 Noman Shakir

Karachi Company Secretary
Notes:
1 Book Closure
The share transfer books of 786 Investments Ltd. will remain closed from October 15, 2022, to October 22, 2022
(both days inclusive). The transfers received in order by our share registrar, FD Registrar Services (Pvt) Ltd
situated on the 17th floor, Saima Trade Tower A, I.I. Chundrigar Road, Karachi by the close of business on October
14, 2022, will be considered in time to attend and vote at the meeting.
In light of the COVID-19 situation, the Securities and Exchange Commission of Pakistan ("SECP"), in terms of
its Circular No.5 dated March 17, 2020, and Circular No. 25 dated August 31, 2020, has advised companies to
modify their usual planning for general meetings for the safety and wellbeing of shareholders and the public at
large with minimal physical interaction. Hence, the proceedings of the meeting will be carried out through a video-
link facility. In this regard, special arrangements have been made for the AGM which are as under:
a) AGM will be held through Zoom application - a video link facility.
b) Shareholders requested to attend the AGM through Zoom application it is requested to get themselves
registered with FD Registrar Services situated on the 17th floor, Saima Trade Tower A, I.I. Chundrigar
Road, Karachi (Video Conferencing Service Provider) at least 48 hours before the time of AGM at
(info@fdregistrar.com) by providing the following details:
Folio/ AC no Company Name of CNIC number Cell number Email Address

Shareholder
786 Investments Limited
04
A video-link for the meeting will be sent to members at their provided email addresses enabling them to attend the meeting on the given
date and time.
The login facility will be opened fifteen (15) minutes before the meeting time to enable the participants to join the meeting after the
identification process. Shareholders will be able to log in and participate in the AGM proceedings through their devices after completing
all the formalities required for the identification and verification of the shareholders.
c) Shareholders are encouraged to participate in the AGM to consolidate their attendance and participation through proxies.
2 Appointment of Proxy
a) A member entitled to attend the meeting may appoint any other member as his/her proxy to attend the meeting through video-link. A
proxy form is enclosed.
b) A member entitled to attend and vote at Annual General Meeting shall be entitled to appoint another member, as a proxy to attend and
vote on his/her behalf. The proxies in order to be effective must be received to FD Registrar not less than forty-eight (48) hours before
the meeting.
c) Members are requested to notify changes immediately, if any, in their registered addresses to FD Registrar.
3 For Appointment of Proxy

The shareholders will further have to follow the under mentioned guidelines:
a) In case of individuals having physical shareholding or the account holder or sub-account holder and/or the person whose securities are
in group account and their registration details are uploaded as per the CDC Regulations, shall submit the proxy form accordingly.
b) The proxy form shall be witnessed by two persons whose names, addresses and CNIC number shall be mentioned on the form.
c) Notarized copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.
d)In case of a corporate entity, the Board of Directors' resolution/power of attorney with specimen signature shall be submitted (unless it
has been provided earlier) along with proxy form to the Company.
4 Submission of copy of CNIC/NTN (Mandatory):

Individual members who have not yet submitted photocopy of their valid CNIC to the Company/Share Registrar, are once again requested
to send their CNIC (copy) at the earliest directly to FD Registrar Corporate Entities are requested to provide their National Tax Number
(NTN). Please also give Folio Number with the copy of CNIC/NTN details.
5 Availability of Annual Audited Financial Statements on the Company's website:
In terms of Securities and Exchange Commission of Pakistan's (SECP) S.R.O. 634 (1)/ 2014, the Annual Report for the year ended 30 June
2022 will also be placed on 786 Investments Ltd. website www.786investments.com and is readily accessible to the shareholders.
6 Transmission of Financial Statements to the Members through e-mail:

As per the directives issued by the Securities and Exchange Commission of Pakistan ("SECP") vide S.R.O.787(1)2014 dated 08 September
2014 and in pursuance of Circular No. 10 dated April 1, 2020, respectively regarding Regulatory Relief to dilute the impact of Corona Virus
(COVID 19) for Corporate Sector companies are allowed the circulation of Audited Financial Statements along with Notice of Annual
General Meeting to their shareholders through email to those shareholders whose emails addresses are present in the records of Share
Registrar/database of CDC. The shareholders who wish to receive the Annual Report via email in the future are requested to fill the consent
form to FD Registrar.
In case any shareholder who has provided consent to receive Audited Financial Statements and Notice through email subsequently requests
for a hard copy for Audited Financial Statements the same shall be provided free of cost within seven days of receipt of such request, but
due to health and safety concerns in these COVID-19 times and our sustainable policy to be as paperless and plastic-free as possible, we
request shareholders to view the annual report as pdf.
7 Deposit of Physical Certificates in CDC Account

As per Section 72 of the Companies Acts, 2017, every AMC shall be required to replace its physical certificate with book-entry from in a
manner as may be specified and from the date notified by the Commission, within a period not exceeding four years from the commencement
of this Act.
The AMC having physical shareholders are encouraged to open the CDC sub-account with any of the brokers or investor Account directly
with CDC to place their physical certificate into scrip less form.
05
FINANCIAL HIGHLIGHTS
2022 2021 2020 2019 2018 2017
Rupees In Million
Authorized Capital 200.0000 200.0000 200.0000 200.0000 200.0000 200.0000
Paid-Up Capital 149.7375 149.7375 149.7375 149.7375 149.7375 149.7375
Shareholders' Equity 230.9224 230.1301 210.3695 210.3695 245.4472 270.8865
Total Assets 251.8710 248.8764 229.6785 229.6785 264.0662 287.1988
Short-Term Investment in Securities 226.5300 215.2467 192.0067 192.0067 8.6252 7.6483
Income From Investments 2.0061 4.6185 7.6435 7.6435 0.0427 -
Management Fee 13.1830 8.8368 9.5667 9.5667 11.5011 10.0134
Advisory Fee 1.1111 1.1111 1.1111 1.1111 - -
Dividend Income 17.5517 9.5510 10.0074 10.0074 4.3759 75.6602
Other Income 1.1484 3.7407 2.8357 2.8357 0.5568 0.6706
Impairment Loss on Investment - - - - (0.1542) (0.5665)
Profit/(Loss) Before Taxation 3.8205 5.1396 5.4481 5.4481 (24.8392) 64.8050
Taxation 3.0283 1.8708 1.5122 1.5122 1.5769 9.6630
Profit/(Loss) After Taxation 0.7923 3.2688 3.9359 3.9359 (26.4162) 55.1420
Book Value Per Share 15.4218 15.3689 14.0492 14.0492 16.3918 18.0908
Earnings Per Share 0.05 0.22 0.26 0.26 (1.76) 3.68
06
CHAIRMAN'S REPORT
During the year, all Directors of 786 Investments Ltd performed their due job with professionalism, demonstrable
skills, and determination to support management in turning around the company. I wish to record my appreciation
to the Board Members.
786 Investments limited successfully renewed from SECP for both licenses to carry out "Asset Management
Service" and "Investment Advisory Services" via vide letter no. SCD/AMCW/38/786IL/AMS/04/2022 and vide
letter no. SCD/AMCW/37/786IL/IAS/07/2022 respectively; on dated May 12, 2022.
The Company is revisiting its strategy and analyzing the situation of the economy and the resources available to
the company. Also planned the process to significantly modify the financial and operational aspects of the company
as business was faced with financial pressures last year.
The company also planned to introduce a new fund to increase the fund size and develop a strategy to cut costs
ineffective way to turn around the company. Our objective for the year is to grow Asset under Management (AUM).
Company managed to improve the position of the fund with the available resources with the company and turned
it into profits.
On behalf of the Company, I would like to express my gratitude to the Securities and Exchange Commission of
Pakistan, the management of the Pakistan Stock Exchange Limited for their continued support and cooperation
and all other stakeholders who are contributing in our success.
_______________________
Ahmed Salman Munir
Chairperson
Date: September 26, 2022

Karachi
07
REPORT OF THE DIRECTORS OF THE MANAGEMENT COMPANY
The Board of Directors of 786 Investments Limited. ("786" or the "Company") is pleased to present the annual
report and the audited financial statements of the Company for the year ended June 30, 2022.
Principle Business:
786 Investments Ltd is a public listed company incorporated in Pakistan. The Company is registered as NBFC
under the NBFC Rules, 2003. The Company has obtained the license to carry out Asset Management Services
and in process of obtaining the license of Investment Advisory Services and under the NBFC Rules, 2003, and
NBFC Regulation, 2008.
Company Performance Review:
June 30, 2022 June 30, 2021

. Rupees ..
Management Fees 13,182,987 8,836,778
Advisory fee 1,111,112 1,111,112
Gross Revenue 14,294,099 9,947,890
Income from Investments 15,924,658 16,504,158
Other Operating Income 1,148,388 3,740,722
Total Revenue 30,218,757 26,452,048
Administration and Operating Expenses (24,990,211) (23,456,960)
Financial Charges (2,556,393) (1,650,044)
Total Expenses (27,546,604) (25,107,004)
Profit Before Taxation 3,820,541 5,085,767

Profit After Taxation 792,288 3,214,948
The Company recorded a Profit of PKR 0.79 million during the period ended June 30, 2022, as compared to a
profit of PKR 3.21 million FY22. The Company Income which comprised of Management Fees increased by PKR
4.35 million representing a 49% increase in Management Fees. The administrative and operating expenses
increased by PKR 1.53 million representing a 6.54% increase in administrative and operating expenses. Other
income also contributed to sustain the profits. Further Dividend Income from the fund was PKR 17.55 million
as compared to the Dividend Income of PKR 9.55 million FY21.
The earnings per share (EPS) of the Company for the period ended June 30, 2022, was PKR 0.05 as compared
to PKR 0.21 per share as of June 30, 2021.
The Board of Directors of the Company has a responsibility to ensure that the internal financial control system
of the company is adequate and is operating effectively.
During the Year 2022 786 Investments limited successfully renewed both licenses to carry out "Asset Management
Service" and "Investment Advisory Services" via it's vide letter no. SCD/AMCW/38/786IL/AMS/04/2022 and
vide letter no. SCD/AMCW/37/786IL/IAS/07/2022 respectively; on dated May 12, 2022. The Licenses be renewed
by the Commission for next three years till April 2025.
The Company focused is to grow Assets Under Management (AUMs). The Company is maintaining one fund
which categorized into Islamic Income Fund called 786 Smart Fund during the year (AUMs) increased up to PKR
867m, However as of June 2022 (AUMs) decreased to PKR 589 million as of the year ended June 30, 2022 due
the redemption and dividend payout.
08
Future Plans:
The Company is revisiting its strategy and analyzing the situation of the economy and the resources available to
the company. Also planned the process to significantly modify the financial and operational aspects of the company
as business was faced with financial pressures last year.
The company also planned to introduce a new fund to increase the fund size and develop a strategy to cut costs
ineffective way to turn around the company. Our objective for the year is to grow Asset under Management
(AUMs).
Economic Review:
The global economy is confronting with slower economic growth and high inflationary pressures due to the Russia-
Ukraine conflict and subsequent supply chain disruptions. The impact of war has revised the global growth forecast
downward by 0.8 and 0.2 percentage points to 3.6 percent in both 2022 and 2023. Global commodity prices showed
mixed trend in the month of May, 2022. The projection for economic growth of European Economies has been
revised downwards by 1.1 percentage points to 2.8 percent. Similarly, the outlook for advanced and emerging
economies also revised downwards by 0.6 and 1.0 percentage points, respectively. In the medium-term, the outlook
is revised downwards for all groups, except commodity exporters who are benefitting from the surge in energy
and food prices. The fiscal deficit in Jul-Apr FY2022 was recorded at 4.9 percent of GDP. The primary balance
posted a deficit of Rs 890 billion. During the period 1st July - 03rd June, FY2022 money supply (M2) witnessed
growth of 8.4 percent (Rs 2,050.2 billion) as compared to growth of 9.8 percent (Rs 2,042.2 billion) in last year.
During Jul-May FY2022, the current account deficit was recorded at $ 15.2 billion.
Money Market Review:

Monetary Policy Committee (MPC) has increased the policy rate by 250 bps to 12.25 percent in its meeting held
on 07th April 2022, on account of significant uncertainty around the outlook for international commodity prices
and global financial condition. During 1st July - 01st April, FY22 money supply (M2) observed growth of 2.7
percent (Rs. 665.5 billion) as compared to growth of 6.7 percent (Rs. 1,439.5 billion) last year. Within M2, Net
Foreign Assets (NFA) decreased by Rs 1,198.9 billion as compared to an increase of Rs 704.7 billion last year,
shows pressure on external front. Net Domestic Assets (NDA) of the banking sector increased by Rs. 1,864.4
billion as compared Rs. 734.8 billion last year. Under the borrowing for budgetary support, government has
borrowed Rs. 895.7 billion against the borrowing of Rs. 711.1 billion last year. Government has retired Rs. 52.4
billion to SBP against the retirement of Rs. 1,194.8 billion last year. Government has borrowed Rs. 843.2 billion
from Scheduled banks against the borrowing of Rs 1,905.9 billion last year. Under the head of net government
borrowing, government has borrowed Rs 840.6 billion as compared to the borrowing of Rs. 600.3 billion over
the previous year. Private Sector has borrowed Rs 1,198.3 billion as compared Rs 443.7 billion last year showing
a growth of 20.8 percent as on 01st April, FY2022.
Stock Market Review:

Pakistan stock market's performance has posted a boom-and-bust situation during the first nine months of the
current fiscal year. During July-March FY2022, the benchmark KSE-100 index declined from 47,356 points to
44,929 points. During the period under review, the index closed at its highest level of 48,112 points on August
23, 2021. As of March 31, 2022, the total number of listed companies on the Pakistan Stock Exchange (PSX)
stood at 532, with a total market capitalization of Rs 7,583 billion. The major development of this year in the
equity market is the issuance of Initial Public Offerings (IPOs). During July-March FY2022, five companies issued
shares through a public offering on the main board of PSX (Citi Pharma limited, Pakistan Aluminium Beverages
Cans Limited, Airlink Communications Limited, Octopus Digital Limited, and Adamjee Life Assurance Company
Limited), while two companies were listed on the Overview of the Economy ix newly introduced Growth Enterprise
Market (GEM) Board (Pak Agro Packaging Limited and Universal Network Systems Limited). During July-March
FY2022, corporations raised Rs 121.5 billion by issuing 32 debt securities, while 102 previous corporate debt
securities worth Rs 749.82 billion remain outstanding. Moreover, during July-March FY2022, 2.31 million lots
of various commodities futures contracts including gold, crude oil, and US equity indices worth Rs 2.65 trillion
were traded on Pakistan Mercantile Exchange Limited.
09
Asset Management Industry Overview
Mutual Funds (open-end funds) have Assets Under Management (AUMs) of PKR 1,184 billion as of June 30,
2022, as compared to PKR 1,056 billion as of June 30, 2021. Increased by 12.12%.
The Company's Asset under Management (AUM) during the year increased up to PKR 867m, However, as of
June 2022, AUM decreased to PKR 589 million as the year ended June 30, 2022, due to the redemption and
dividend payout on June 30, 2022. However, the fund size increases again to 848 million on July 30, 2022. The
fund size throughout the year was improved by 16.12% as compared to June 30, 2021 (PKR 746 million).
Corporate Social Responsibility and Impact on Environment

During the year, 786 Investments Ltd managed CSR activities, we went out for the 3000 Ration bag distribution
on September 08, 2022, Thursday and were on the ground till September 11, 2022, Sunday to provide some relief
to the people surviving from hunger and loads of diseases due to floods, at Mirpurkhas, Sindh. As part of the
LADIESFUND #LFFEED initiative. All our policies are sustainable and environmentally friendly.
Our team members also volunteered for 1) educating girls vocationally, 2) distributing food rations 3) LADIESFUND
awards. Our approach and commitment are to you, our clients, our shareholders, our employees, and the community.
Principle Risk & Uncertainties

The Company is maintaining one fund which is categorized as Islamic Income Fund which is called 786 Smart
Fund, The fund's most value is invested in the Commercial banks which works unanimously well for the company.to
counter the risk of the market but as the interest rate improved after the Covid we are considering allocating an
A+ rating Sukuk in the short term providing a good return
The Company's risk management policies and procedures ensure that risks are effectively identified, evaluated,
monitored, and managed. Risk management is a dynamic function and management must continuously monitor
its internal risk procedures and practices to reduce earnings variability.
Board Evaluation
Listed Companies (Code of Corporate Governance) Regulation, 2019 require evaluation of the Board of Directors
as a whole and its committees. In this regard, a comprehensive range of self-evaluation survey were conducted
in the Company with respect to the performance of its Board of Directors and Board Committee. Feedback from
all the Board members was solicited on areas of strategic clarity & beliefs, direction of business plan and functional
adequacy of its role.
Corporate Governance and Financial Reporting Framework

The Directors are pleased to state as follows:
The financial statements, prepared by the company, present its state of affairs fairly, the result of its
operations, cash flows and changes in equity.
Proper books of account have been maintained by the company.
Appropriate accounting policies have been consistently applied in preparation of financial statements and
accounting estimates are based on reasonable and prudent judgment.
International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation
of financial statements and any departures there from has been adequately disclosed and explained.
The system of internal control is sound in design and has been effectively implemented and monitored
with ongoing efforts to improve it further.
There are no significant doubts upon the company's ability to continue as a going concern.
10
There has been no material departure from the best practices of Corporate Governance except as disclosed
in the statement of compliance annexed with these financial statements.
There has been no trading during the year in the units of the Fund carried out by the Directors, Chief
Executive Officer, Company Secretary and their spouses and their minor children except as disclosed
in the relevant notes to the financial statement.
There is no statutory payment on account of taxes, duties, levies and charges outstanding.
The Company has complied with the requirement of the Regulation and LISTED COMPANIES (CODE OF
CORPORATE GOVERNANANCE) REGULATIONS, 2019 in the following manner.
The total number of directors are seven (7) as per the following:
a) Male: 6
b) Female: 1
The Composition of board is as follows:
Category Names Designation
Independent Directors Mr. Ahmed Salman Munir Chairperson
Syed Shabahat Hussain Director
Mr. Ahmer Zia Sarwar Director
Executive Director Ms. Tara Uzra Dawood Chief Executive Officer
Non-Executive Directors Syed Musharaf Ali Director
Mr. Naveed Ahmed Director

Mr. Iqbal Shafiq
Female Directors Ms. Tara Uzra Dawood Chief Executive Officer
11
Board of Directors Meetings
During the year, four meetings were held. The attendance of each Director is as follows:
Names No of Meetings held No of Meetings attended Leave granted

Ms. Shafqat Sultana 4 1 -
Ms. Tara Uzra Dawood 4 4 -
Ms. Charmaine Hidayatullah 4 - 2**
Mr. Iqbal Shafiq 4 2 -
Syed Musharaf Ali 4 2 -
Syed Shabahat Hussain 4 4 -
Mr. Ahmed Salman Munir 4 2 2
Mr. Naveed Ahmed 4 3 -
**Leave of absence was granted.
Mr. Ahmed Salman Munir
Ms. Charmaine Hidayatullah
Subsequent appointments after the Election of Director on Board of 786 Investments limited were as follows:
- Mr. Charmaine Hidayatullah appointed as Director of the company w.e.f September 21, 2021, in place of Mr.
Tahir Mehmood
* Mr. Ahmer Zia Sarwar appointed as Director of the company w.e.f July 07, 2022, in place of Ms. Charmaine
Hidayatullah.
** Mr. Syed Musharaf Ali appointed as Director of the company w.e.f September 21, 2021, in place of Syed
Farhan Abbas
*** Mr. Iqbal Shafiq appointed as Director of the company w.e.f January 27, 2022, in place of Ms. Shafqat Sultana
due her demise.
Audit Committee Meeting
During the year, four meetings were held. The attendance of each member is as follows:
Names No of Meetings held No of Meetings attended Leave granted
Syed Shabahat Hussain 4 4 -
Ms. Shafqat Sultana*** 4 1 -
Syed Musharf Ali*** 4 2 -
Mr. Naveed Ahmed 4 3 -
***Ms Shafqat Sultana had attended the only one Audit Committee meeting due to the approval for other Directors
elected on the date of EOGM was pending. However the approval was obtained on October 06, 2021.
*** Mr. Naveed Ahmed had attended three Audit Committee meeting his approval obtained on October 06, 2021.
*** Subsequently, Syed Musharaf Ali *** had attended two Audit Committee meeting his approval obtained on
November 30, 2021.
**Leave of absence was granted.
12
Directors Remuneration
The remuneration of the Non-Executive Directors, Independent Directors and Chief Executive Officer for attending
Board and its Committees meetings is determined by the Company in the General Meeting. The remuneration of
the Directors is determined on the basis of prevailing industry trends and business practices. The details of
remuneration paid to the Chief Executive Officer and Directors are available in note 29 to the financial statements.
Auditors' Appointment
The "Auditors M/s J.A.S.B & Associates Chartered Accountants have consented to act as auditor of the 786
Investments Ltd. The Board Audit Committee have recommended their appointment as for the year ending June
30, 2023 for 786 Investments Ltd and the Board have endorsed the communication".
Auditors' Report
The Auditors have given their unmodified opinion on the financial statements of the Company for the year ended
June 30, 2022.
Statement of Ethics and Business Practices
The Board of Directors of Company has adopted a Statement of Ethics and Business Practices. All employees
are informed of this statement and are required to observe these rules of conduct in relation to business and
regulations.
Dividend
Based on the above, the Board of Directors of the Company has decided not to distribute any dividend to the
shareholders for the year.
Credit Rating
The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of "AM3", to the
Company.
Trading in shares of the Company
During the year 2021-22, no transactions in shares were carried out by the Directors, Chief Financial Officer &
Company Secretary, and their spouses of minor children. Except for the Chief Executive Officer, who purchased
76,700 shares, 9000 shares & 2500 Shares of the company during the year on October 14, 2021, & December 10,
2021?
Transaction with Connected Persons/Related Parties
Transactions between the Fund and its connected persons as disclosed in notes to the financial statements are
carried out on an arm's length basis.
13
Pattern of Share Holding as on June 30, 2022
The pattern of shareholding holding as on June 30, 2022 is annexed to these financial statements.
Key Financial Highlights
Key financial highlights are summarized and annexed to these financial statements.
Staff Retirement Benefits
786 operates a provident fund scheme for all permanent employees' details are included in these financial statements.
Events after the Balance Sheet Date
There was no subsequent event after the Balance sheet date but Ms. Charmaine Hidayatullah has resigned as
director during the year 2021-22. The Board has appointed Mr. Ahmer Zia Sarwar as Director on July 07, 2022
subject to SECP approval in place of Ms. Charmaine Hidayatullah. Subsequently the SECP has approved the
appointment on August 23, 2022.
Acknowledgement
The Board of Directors of the Management Company is thankful to the Securities and Exchange Commission of
Pakistan and the management of the Pakistan Stock Exchange Limited for their continued support and cooperation.
The Directors also appreciate the efforts put in by the employees of the Company for their commitment and
dedication and shareholders for their confidence in the Company.
__________________ _______________________
Director Ahmed Salman Munir
Chairperson
September 26, 2022

Karachi.
14
15
16
17
18
19
13,182,987
8,836,778
1,111,112
1,111,112
14,294,099
9,947,890
16,504,158 15,924,658
3,740,722 1,148,388
26,452,048 30,218,757
(23,456,960) (24,990,211)
(1,650,044) (2,556,393)
(25,107,004) (27,546,604)
5,085,767 3,820,541
3,214,948 792,288
20
21
22
23
24
25
26
27
STATEMENT OF FINANCIAL POSITION
AS AT JUNE 30, 2022
June 30, June 30, June 30,
2022 2021 2020
Restated Restated
ASSETS Note ---------------------Rupees---------------------
Non-Current Assets
Property and Equipment 6 877,914 2,052,245 3,621,242

Intangible Assets 7 831,060 969,570 1,108,080
Long-Term Deposits and Prepayments 8 36,300 36,300 536,300
Total Non-Current Assets 1,745,274 3,058,115 5,265,622
Current Assets
Loans and Advances 10 300,000 - 22,003
Investments 11 226,530,045 215,246,736 192,006,668
Prepayments and Other Receivable 12 7,105,869 7,579,509 7,609,372
Trade Receivables 13 2,814,597 1,938,496 4,108,583
Accrued Markup 14 902,734 2,431,517 2,804,667
Tax Refund due from Government 15 7,406,613 6,664,825 5,819,256
Cash and Bank Balances 16 5,065,871 11,957,163 12,042,370
Total Current Assets 250,125,729 245,818,246 224,412,919
TOTAL ASSETS 251,871,003 248,876,361 229,678,541
EQUITY AND LIABILITIES

Share Capital and Reserves
Authorised Share Capital
20,000,000 (June 30, 2021: 20,000,000) Ordinary Shares of Rs. 10 Each 200,000,000 200,000,000 200,000,000
Issued, Subscribed and Paid-Up Share Capital

Ordinary Shares 14,973,750 (June 30, 2021: 14,973,750) of
Rs. 10 Each 17 149,737,500 149,737,500 149,737,500
General Reserves 33,630,264 33,630,264 33,630,264
Surplus on Revaluation of Investments Classified at Fair Value
through Other Comprehensive Income - - 5,454,357
Subordinated Loan form Director 18 22,000,000 22,000,000 -
Unappropriated Profit 25,554,608 24,762,320 21,547,372
Total Shareholders' Equity 230,922,372 230,130,084 210,369,493
Current Liabilities
Accrued and Other Liabilities 19 19,949,889 17,747,535 18,310,306
Unclaimed Dividend 20 998,742 998,742 998,742
Total Current Liabilities 20,948,631 18,746,277 19,309,048
Total Liabilities 20,948,631 18,746,277 19,309,048
Contingencies and Commitments 21
Total Equities and Liabilities 251,871,003 248,876,361 229,678,541

The annexed notes from 1 to 38 form an integral part of these financial statements.
(Management Company)
Chief Financial Officer Director Chief Executive Officer
10
28
STATEMENT OF PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED JUNE 30, 2022
June 30, June 30,
2022 2021
Restated
Note ------------Rupees------------
Remuneration from Fund under Management 22 13,182,987 8,836,778

Advisory Fee 23 1,111,112 1,111,112
Dividend Income 17,551,749 9,551,016
Income on Term Finance Certificates 257,628 2,467,742
Income on Pakistan Investment Bonds 1,748,457 2,150,770
33,851,933 24,117,418
Reclassification of Surplus on Investments - 5,454,357

Provision against Investments (2,245,710) -
Net Unrealized Loss on Revaluation of Investments at Fair Value through Profit or Loss (1,387,466) (3,119,727)
30,218,757 26,452,048
Administrative and Operating Expenses 24 (24,990,211) (23,456,960)

Financial Charges 25 (2,556,393) (1,650,044)
(27,546,604) (25,107,004)
Operating Profit 2,672,153 1,345,044
Other Operating Income 26 1,148,388 3,740,723
Taxation 27 (3,028,253) (1,870,819)
Net Profit for the Year 792,288 3,214,948
Earnings per Share for the Year - Basic and Diluted 28 0.05 0.21

10
29
STATEMENT OF COMPREHENSIVE INCOME
June 30, June 30,
2022 2021
Restated
------------Rupees------------
Net Profit for the Year 792,288 3,214,948
Other Comprehensive Loss
Reclassification of Surplus on Investments - (5,454,357)

Other Comprehensive Income/(Loss) - (5,454,357)
Total Comprehensive Income/(Loss) for the Year 792,288 (2,239,409)

10
30
CASH FLOW STATEMENT
Share Capital -----Capital Reserve----- -----------------Revenue Reseve-----------------
Surplus on Revaluation of Share of Other

Issued, Subscribed Total
Sub Ordinated Investments Classified at Comprehensive Unappropriated
and Paid-Up Share General Reserve
Loan from Director Fair Value through Other Income from Profit
Capital
Comprehensive Income Associate
Balance as at July 1, 2020 as Previously Reported 149,737,500 33,630,264 - 5,454,357 236,114 21,311,258 210,369,493
Effect of Restatement (Refer Note 4.4) - - - - (236,114) 236,114 -
Balance as at July 1, 2020 as Restated 149,737,500 33,630,264 - 5,454,357 - 21,547,372 210,369,493
Subordinated Loan from Director - - 22,000,000 - - - 22,000,000
Profit for the Year- As Restated - - - - - 3,214,948 3,214,948

Other Comprehensive Loss for the Year - As Restated - - - (5,454,357) - - (5,454,357)
Total Comprehensive Loss for the Year - - - (5,454,357) - 3,214,948 (2,239,409)
Balance as at June 30, 2021 - As Restated 149,737,500 33,630,264 22,000,000 - - 24,762,320 230,130,084
Balance as at July 1, 2021 149,737,500 33,630,264 22,000,000 - - 24,762,320 230,130,084
Profit for the Year - - - - - 792,288 792,288

Other Comprehensive Income for the Year - - - - - - -
Total Comprehensive Income for the Year - - - - - 792,288 792,288
Balance as at June 30, 2022 149,737,500 33,630,264 22,000,000 - - 25,554,608 230,922,372

10
31
STATEMENT OF CHANGES IN EQUITY
June 30, June 30,
2022 2021
Restated
CASH FLOWS FROM OPERATING ACTIVITIES Note ------------Rupees------------

Adjustments for Non-Cash and Other Items:
Depreciation on Property and Equipment 1,427,958 1,826,947

Amortization 138,510 138,510
Provision Against Investments 2,245,710 -
Financial Charges 2,556,393 1,650,044
Mark-Up Earned on Saving Account (681,457) (1,431,241)
Income on Pakistan Investment Bonds (1,748,457) (2,150,770)
Income on Term Finance Certificate (257,628) -
Revaluation Loss on Investments Classified at Fair Value Through Profit Or Loss 1,387,466 (2,334,630)
Liabilities Written Back (390,656) (2,306,682)
Dividend Income (17,551,749) (9,551,016)
Bank Balances Written Off - 123,737
(12,873,910) (14,035,101)
Working Capital Changes
Changes in Current Assets:
Loans and Advances (300,000) 22,003

Deposits, Prepayments and Other Receivable 473,640 529,863
Trade Receivable (876,101) 2,170,087
Accrued Markup 1,528,783 -
826,322 2,721,953
Changes in Current Liabilities:
Accrued and Other Liabilities 47,725 (21,623)

Cash Used in Operations (8,179,322) (6,249,004)
Taxes Paid (3,770,041) (1,530,166)

Finance Cost Paid (11,108) (8,247)
Net Cash Used in Operating Activities (11,960,471) (7,787,417)
CASH FLOWS FROM INVESTING ACTIVITIES

Investments Made during the Year (14,918,985) (18,000,000)
Term Finanace Certificate Redeemed 2,500 5,000
Receipt of Mark-Up on Savings Account 681,457 1,955,160
Income Received on Term Finance Certificate 257,628 -
Income Received on Pakistan Investment Bonds 1,748,457 2,000,000
Dividend Received 17,551,749
Capital Expenditure Incurred (253,627) (257,950)
Net Cash Generated From/(Used In) Investing Activities 5,069,179 (14,297,790)
CASH FLOWS FROM FINANCING ACTIVITIES

Subordinated Loan From Director - 22,000,000
Net Cash Generated From Financing Activities - 22,000,000
Net Decrease in Cash and Cash Equivalents (6,891,292) (85,207)
Cash and Cash Equivalents at Beginning of the Year 11,957,163 12,042,370
Cash and Cash Equivalents at End of the Year 16 5,065,871 11,957,163

10
32
NOTES TO THE FINANCIAL STATEMENTS
1 STATUS AND NATURE OF BUSINESS
1.1 786 Investments Limited, the Company was incorporated on September 18, 1990 as a public limited Company in Pakistan, with its registered
office at G3, Ground Floor BRR Tower, Hassan Ali Street, Off I.I. Chundrigar Road, Karachi 74000. The Company is listed on the Pakistan Stock
Exchange Limited. The Company has changed its name to 786 Investments Limited from Dawood Capital Management Limited with effect from
20 January, 2017 after completing regulatory formalities.
The Company is registered as a Non Banking Finance Company under the Non Banking Finance Companies (Establishment and Regulation)
Rules, 2003 (the NBFC Rules). The Company has obtained the licenses to carry out investment advisory services and asset management services
under the NBFC Rules and the Non Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations).
1.2 The license to carry out "Asset Management Service" has been successfully renewed dated May 12, 2022 under Rule 5 of the Non Banking
Finance Companies (Establishment and Regulation) Rules, 2003 amended through S.R.O 1131(1) 2007, S.R.O 271(1) 2010, S.R.O 570(1)/2012
and S.R.O 1002(1)/2015 respectively.
1.3 The license to carry out "Investment Advisory Services" has been successfully renewed vide its letter No.SCD/AMCW/37/786IL/IAS/07/2022
dated May 12, 2022 with effect from May 26, 2022 and valid till May 25, 2025 . Licence shall further be renewable by the Commission for next
three years, subject to the compliance of the NBFC Rules and the NBFC Regulations.
2 BASIS OF PREPARATION
2.1 Statement of compliance
These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting
and reporting standards applicable in Pakistan comprise of:
- International Financial Reporting Standards (IFRS Standards) issued by the international Accounting Standard Boards (IASB) as notified
under the Companies Act, 2017;
- Provision of and directives issued under the Companies Act, 2017;
- The Non Banking Finance Companies (Establishment and Regulation) Rules, 2003 (The NBFC Rules), and the Non Banking Finance
Companies and Notified Entities Regulations, 2008 (The NBFC Regulations); and
- Directives issued by the SECP.
Where provisions of and directives issued under the Companies Act, 2017, The NBFC Rules, The NBFC Regulations and by the SECP differ
with the requirements of IFRS the provisions of and directives issued under the Companies Act, 2017, The NBFC Rules, The NBFC Regulations
and SECP have been followed.
2.2 Basis of measurement
These financial statements have been prepared under the historical cost convention, except for certain investments which are measured at fair
value. These financial statements have been prepared following accrual basis of accounting except for cash flow information.
2.3 Functional and presentation currency
These financial statements are presented in Pak Rupees, which is the Company's functional and presentation currency.
3 ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements is in conformity with approved accounting standards which requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the Companys accounting policies. Estimates and
judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
In the process of applying the Company's accounting policies, management has made the following estimates and judgments which are significant
to the financial statements:
33
a) Recognition of taxation and deferred taxation;
b) Determining the useful lives of operating fixed assets;
c) Classification of investments; and
d) Impairment of financial assets.
4 STANDARDS, AMENDMENTS AND INTERPRETATIONS TO APPROVED ACCOUNTING STANDARDS
4.1 Standards, interpretations and amendments to published accounting and reporting standards that are effective in the current year
The Company has adopted the following new standards, amendments to published standards and interpretations of IFRSs which became effective
during the current year.
Standard or Interpretation Effective Date (Annual periods beginning on or after)
IBOR Reform and its Effects on Financial ReportingPhase 2 January 1, 2021
Adoption of the above standards have no significant effect on the amounts for the year ended June 30, 2022 except for those mentioned in change
in accounting policy note.
4.2 Standards, amendments and interpretations to the published standards that may be relevant but not yet effective and not early adopted
by the Company
The following new standards, amendments to published standards and interpretations would be effective from the dates mentioned below against
the respective standard or interpretation.
Standard or Interpretation Effective Date (Annual periods beginning on or after)
Fees in the 10 per cent Test for Derecognition of Financial Liabilities
(Amendment to IFRS 9) January 1, 2022
Onerous ContractsCost of Fulfilling a Contract

(Amendments to IAS 37) January 1, 2022
Property, Plant and Equipment: Proceeds before Intended Use

Subsidiary as a First-time Adopter

(Amendment to IFRS 1) January 1, 2022
Taxation in Fair Value Measurements

(Amendment to IAS 41) January 1, 2022
Updating a Reference to the Conceptual Framework

(Amendments to IFRS 3) January 1, 2022
Classification of Liabilities as Current or Non-current

(Amendment to IAS-1) January 1, 2023
Deferred Tax related to Assets and Liabilities arising from a Single Transaction
Definition of Accounting Estimates

Disclosure InitiativeAccounting Policies January 1, 2023
The Company is in the process of assessing the impact of these Standards, amendments and interpretations to the published standards on the
financial statements of the Company.
34
4.3 Standards, amendments and interpretations to the published standards that are not yet notified by the Securities and Exchange Commission
of Pakistan (SECP)
Following new standards have been issued by the International Accounting Standards Board (IASB) which are yet to be notified by the SECP
for the purpose of applicability in Pakistan.
Standard or Interpretation IASB effective date(Annual periods beginning on or after)
IFRS 17 'Insurance Contracts' January 1, 2023
Amendments to IFRS 17 Insurance Contract January 1, 2023
IFRS 1 'First-time Adoption of International Financial Reporting Standards' July 1, 2009
4.4 Change in accounting policy
During the year ended June 30, 2022, the management has changed its accounting policy of its investments in units of mutual funds. Previously
the said investment was classified as Investments in associates under Investments in associates and joint ventures (IAS-28). However, the said
investment is for trading purpose and the percentage of holding varies overtime due to trading in units of such mutual fund and the Company is
more concerned with fair value measurement of such investment. Therefore, the said investment is now accounted as investment at fair value
through profit or loss under Financial Instruments (IFRS-9).
The change has been accounted for retrospectively in accordance with the requirements of IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors and comparative figures have been restated.
As of June 30, 2021 As of June 30, 2020
As previously As previously
Restatement As restated Restatement As restated
reported reported
Effect on statement -----------------------------------Rupees-----------------------------------
of financial position
Decrease in long term investments 172,941,561 (172,941,561) - 147,858,793 (147,858,793) -
Increase in investments - 172,941,561 172,941,561 - 147,858,793 147,858,793
Effect on statement
of changes in equity
Increase in unappropirated profit - 182,232 182,232 - 236,114 236,114
Decrease in share of other 236,114 (236,114) -
comprehensive income from
associate 182,232 (182,232) -
Effect on statement
of profit or loss and on statement
of comprehensive income
Decrease in share of profit from
asscoiate 8,322,872 (8,322,872) - - - -
Decrease in share of other
comprehensive income from
associate (53,882) 53,882 - - - -
Increase in dividend income - 9,551,016 9,551,016 - - -
Net unrealized loss on
revaluation of investments
Classified at FVTPL - (1,282,026) (1,282,026) - - -
35
4.5 CORRESPONDING FIGURES
Corresponding figure has been rearranged and reclassified, wherever necessary, for the purpose of better presentation in the financial statements.
However, there is no significant rearrangements or reclassifications other than the following.
June 30, 2021
Reclassified from Reclassified to Rupees
Statement of financial position
Long term Investments Investments

- Pakistan investment bonds - Pakistan investment bonds 20,166,533
5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the presentation of these financial statements are set out below. These policies have been consistently
applied to all the years presented, unless otherwise stated.
5.1 Property and equipment
5.1.1 Owned assets
These are stated at cost less accumulated depreciation and impairment, if any. Such costs include the cost of replacing parts of fixed assets when
that cost is incurred. Maintenance and normal repairs are charged to profit and loss account as and when incurred. Depreciation is charged to
profit and loss account over the useful life of the asset on a systematic basis applying the straight line method at the rates specified in note 6 to
the financial statements.
Depreciation on additions is charged from the month in which the assets are put to use while no depreciation is charged in the month in which
the assets are disposed off.
The carrying amounts are reviewed at each balance sheet date to assess whether they are recorded in excess of their recoverable amounts, and
where carrying values exceed estimated recoverable amount, assets are written down to their estimated recoverable amount.
An item of fixed asset is derecognised upon disposal or when no future economic benefits are expected from its use or disposal.
The residual values and useful lives of assets are reviewed at each financial year end and adjusted, if appropriate.
Gains and losses on disposals, if any, are included in the profit and loss account.
5.2 Intangible assets
Intangible assets includes software with a finite useful life and are stated at cost less accumulated amortization and accumulated impairment
losses, if any. Such intangible assets are amortized using the straight-line method taking into account residual value, if any, at the rate specified
in note 7 to these financial statements. Amortization is charged from the date the asset is available for use while in the case of assets disposed
off, it is charged till the date of disposal. The useful lives and amortization method are reviewed and adjusted, if appropriate, at each reporting
date.
5.3 Financial instruments
All financial assets and liabilities are initially measured at cost which is the fair value of the consideration given or received. These are subsequently
measured at fair value, amortized cost of cost as the case may be.
36
5.3.1 Classification - IFRS 9
In accordance with IFRS 9, the Company classifies its financial assets and financial liabilities at initial recognition into the categories of financial
assets and financial liabilities discussed below.
In applying that classification, a financial asset or financial liability is considered to be 'at fair value through profit or loss' if:
i) It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
ii) On initial recognition, it is part of a portfolio of identified financial instruments that are managed together and for which, there is evidence
of a recent actual pattern of short-term profit-taking; or
iii) It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).
Financial assets
The Company classifies its financial assets as subsequently measured 'at amortised cost' or measured 'at fair value through profit or loss' on the
basis of both:
- The entitys business model for managing of the financial assets

- The contractual cash flow characteristics of the financial asset
Financial assets measured 'at amortised cost'
A debt instrument is measured at amortised cost if it is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on
the principal amount outstanding. The Company includes in this category short-term non-financing receivables, accrued income and other
receivables.
Financial assets measured 'at fair value through profit or loss'
A financial asset is measured 'at fair value through profit or loss' if:
a) Its contractual terms do not give rise to cash flows on specified dates that are solely payments of principal and interest (SPPI) on the principal
amount outstanding; or
b) It is not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows
and sell; or
c) At initial recognition, it is irrevocably designated as measured at FVPL when doing so eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on
different bases.
Financial liabilities
Financial liabilities measured at amortised cost
This category includes all financial liabilities, other than those measured 'at fair value through profit or loss'. The Company includes in this
category short-term payables, including accrued and other liabilities.
37
5.3.2 Measurement of financial asset
Initial measurement
A financial asset is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition.
Subsequent measurement
Debt investments at FVOCI These assets are subsequently measured at fair value. Interest / markup income
calculated using the effective interest method, and impairment are recognised
in the statement of profit or loss. Other net gains and losses are recognised in
other comprehensive income. On de-recognition, gains and losses accumulated
in other comprehensive income are reclassified to the statement of profit and
loss.
Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognised
as income in the statement of profit or loss unless the dividend clearly represents
a recovery of part of the cost of the investment. Other net gains and losses are
recognised in other comprehensive income and are never reclassified to the
statement of profit and loss.
Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses,
including any interest / markup or dividend income, are recognised in the
statement of profit and loss.
Financial assets measured at amortised cost These assets are subsequently measured at amortised
cost using the effective interest method. The amortised cost is reduced by
impairment losses. Interest / markup income, and impairment are recognised
in the statement of profit and loss.
5.3.3 Non-derivative financial assets
All non-derivative financial assets are initially recognised on trade date i.e. date on which the Company becomes party to the respective contractual
provisions. Non-derivative financial assets comprise loans and receivables that are financial assets with fixed or determinable payments that are
not quoted in active markets. The Company derecognises the financial assets when the contractual rights to the cash flows from the asset expires
or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risk and rewards of ownership of
the financial assets are transferred or it neither transfers nor retain substantially all of the risks and rewards of ownership and does not retain
control over the transferred asset.
5.3.4 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is reported in the unconsolidated financial statements only when the Company
has a legally enforceable right to offset and the Company intends to either settle on a net basis, or to realise the assets and to settle the liabilities
simultaneously. Income and expense items of such assets and liabilities are also offset and the net amount is reported in the unconsolidated
financial statements only when permitted by the accounting and reporting standards as applicable in Pakistan.
5.3.5 Financial liabilities
Financial liabilities are initially recognised on trade date i.e. date on which the Company becomes party to the respective contractual provisions.
Financial liabilities include mark-up bearing borrowings and trade and other payables. The Company derecognises the financial liabilities when
contractual obligations are discharged, cancelled or expire. Financial liability other than at fair value through profit or loss are initially measured
at fair value less any directly attributable transaction cost. Subsequent to initial recognition, these liabilities are measured at amortised cost using
effective interest rate method.
38
5.3.6 Derecognition
A financial asset (or, where applicable, a part of a financial asset or a part of a group of similar financial assets) is derecognised where the rights
to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset, or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement and the Company
has:
a) Transferred substantially all of the risks and rewards of the asset; or

b) Neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its right to receive cash flows from an asset (or has entered into a pass-through arrangement), and has neither
transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the
extent of the Companys continuing involvement in the asset. In that case, the Company also recognises an associated liability. The transferred
asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. The Company
derecognises a financial liability when the obligation under the liability is discharged, cancelled or expired.
5.3.7 Impairment
5.3.7.1 Financial assets
The Company recognises loss allowances for Expected Credit Losses (ECLs) in respect of financial assets measured at amortised cost.
The Company measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at 12-month ECLs:
- debt securities that are determined to have low credit risk at the reporting date; and
- other debt securities and bank balance for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument)
has not increased significantly since initial recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs,
the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including
forward-looking information.
The Company assumes that the credit risk on a financial asset has increased significantly if it is more than past due for a reasonable period of
time. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs
are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the
expected life of the instrument is less than 12 months). The maximum period considered when estimating ECLs is the maximum contractual
period over which the Company is exposed to credit risk.
Loss allowances for financial assets measured at amortised cost are deducted from the Gross carrying amount of the assets.
The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering of a financial asset
in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on
whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However,
financial assets that are written off could still be subject to enforcement activities in order to comply with the Company's procedures for recovery
of amounts due.
Based on the management assessment no ECL was required since the Company's financial assets at amortized cost are held with related parties
or counterparties with low credit risk. Further, ECL calculated on Trade Debts was not required as the amount assessed was immaterial to the
unconsolidated financial statement.
39
5.3.7.2 Non-financial assets
The carrying amounts of the Company's non-financial assets are reviewed at each balance sheet date to determine whether there is any indication
of impairment. If such indication exists, the asset's recoverable amount, being higher of value in use and fair value less costs to sell, is estimated.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be
tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent
of the cash inflows of other assets or groups of assets. An impairment loss is recognised whenever the carrying amount of an asset exceeds its
recoverable amount. Impairment losses are recognised in the unconsolidated statement of profit or loss.
5.4 Settlement date accounting
All purchases and sales of securities that require delivery within the time frame established by regulation or market convention such as 'T+2'
purchases and sales are recognized at the settlement date. Trade date is the date on which the Company commits to purchase or sale an asset.
5.5 Financial instruments
5.5.1 Financial assets and liabilities
Financial assets include investments, deposits, loans, advances, other receivables, receivable from funds and cash and bank balances.
Financial liabilities include accrued expenses and other liabilities and liabilities against assets subject to finance lease. Financial liabilities are
classified according to the substance of the contractual agreement entered into.
At the time of initial recognition, all the financial assets and liabilities are measured at cost, which is the fair value of the consideration given or
received for it. Transaction costs are included in the initial measurement of all financial assets and liabilities except for transaction costs that
may be incurred on disposal. The particular recognition method adopted for recognition of financial assets and liabilities subsequent to initial
recognition is disclosed in the policy statement associated with each item.
5.5.2 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to
set off the recognised amounts and the Company intends to either settle on a net basis, or to realise the asset and settle the liability simultaneously.
Corresponding income on the asset and charge on the liability is also off-set.
5.5.3 Related party transactions and transfer pricing
Transactions and contracts with the related parties are based on the policy that all transactions between the Company and related parties are carried
out at arms length prices which are determined in accordance with the methods prescribed in the Companies Act, 2017.
5.6 Employee retirement benefits-defined contribution plan
The Company operates recognised provident fund scheme for all its eligible employees. Equal monthly contributions are made, both by the
Company and its employees, to the fund at the rate of 10 percent of basic salary.
5.7 Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost. For the purpose of cash flow statement, cash and cash equivalent consist of
bank balances and running finances under mark-up arrangements.
5.8 Trade debts, loans, deposits, interest accrued and other receivables
These are classified at amortized cost and are initially recognised when they are originated and measured at fair value of consideration receivable.
These assets are written off when there is no reasonable expectation of recovery. Actual credit loss experience over past years is used to base
the calculation of expected credit loss.
40
5.9 Subordinated loan from sponsors
Subordinated loans are classified as per the terms and conditions of loan agreements and in accordnace with the classification crieteria provided
in NBFC Rules and TR-32 of ICAP.
5.10 Trade and other payables
Liabilities for trade and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for goods
and services received, whether or not billed to the Company.
5.11 Proposed dividend and transfer between reserves
Dividends declared and transfer between reserves, except appropriations which are required by the law, made subsequent to the balance sheet
date are considered as non adjusting events and are recognized in the financial statements in the year in which such dividends are declared or
transfers between reserves are made.
5.12 Revenue recognition
Remuneration for investment advisory and asset management services are recognised on accrual basis.
Management fee is recognized on accrual basis when relevant services are rendered.
Gains and losses on sale of marketable securities are recognised on the trade debt.
Dividend income is recorded when the right to receive the dividend is established. Return on securities other than shares is recognised on accrual
basis.
Return on bank deposits are recognised on accrual basis. Other income is recognised as and when earned.
5.13 Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, if it is probable that outflow
of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made. Provisions
are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
5.14 Operating Segments
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incurred expenses.
Board of Directors has been identified as chief operating decision maker and is responsible for performance, allocation of resources and assestment
of results.
5.15 Taxation
Current
The charge for current taxation is based on taxable income at current rates of taxation after taking into consideration available tax credits, rebates
and tax losses, if any. However, for income covered under final tax regime, taxation is based on applicable tax rules under such regime. The
charge for current tax also includes adjustments where necessary, relating to prior years which arise from assessments framed / finalised during
the year.
Deferred
Deferred tax is accounted for using the statement of financial position liability method in respect of all temporary timing differences arising from
difference between the carrying amount of the assets and liabilities in the financial statements and corresponding tax bases used in the computation
of taxable profit.
41
Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary
differences to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax
losses and tax credits can be utilized.
June 30, June 30,
2022 2021
Note ------------Rupees------------
6 PROPERTY AND EQUIPMENT 6.1 877,914 2,052,245
6.1 The following is the statement of property and equipment:
Furniture
Description Vehicles Office equipment Computers Total
and fixtures
------------------------------------Rupees------------------------------------
Year ended June 30, 2022
Opening net book value (NBV) 330,056 1,206,194 195,579 320,416 2,052,245
Additions (at cost) - - 207,350 46,277 253,627
Disposals
Cost - - - - -
Depreciation - - - - -
Net Book value - - - - -
Depreciation charge (52,504) (1,008,014) (195,532) (171,908) (1,427,958)
Closing net book value 277,552 198,180 207,397 194,785 877,914
Gross carrying value basis

Cost 1,487,514 5,593,370 1,701,852 5,584,702 14,367,438
Accumulated depreciation (1,209,962) (5,395,190) (1,494,455) (5,389,917) (13,489,524)
Net book value 277,552 198,180 207,397 194,785 877,914
Depreciation rate % per annum 10 20 20 33
Furniture
Description Vehicles Office equipment Computers Total
and fixtures
------------------------------------Rupees------------------------------------
Year ended June 30, 2021
Opening net book value (NBV) 395,656 2,324,868 453,327 447,391 3,621,242
Additions (at cost) - - - 257,950 257,950
Disposals
Cost - - - - -
Depreciation - - - - -
Net Book value - - - - -
Depreciation charge (65,600) (1,118,674) (257,748) (384,925) (1,826,947)
Closing net book value 330,056 1,206,194 195,579 320,416 2,052,245
Gross carrying value basis

Cost 1,487,514 5,593,370 1,494,502 5,538,425 14,113,811
Accumulated depreciation (1,157,458) (4,387,176) (1,298,923) (5,218,009) (12,061,566)
Net book value 330,056 1,206,194 195,579 320,416 2,052,245
Depreciation rate % per annum 10 20 20 33
42
June 30, June 30,
2022 2021
7 INTANGIBLE ASSETS Note ------------Rupees------------
Computer software 7.1 831,060 969,570
7.1 Computer software
Opening Net Book Value 969,570 1,108,080

Addition - -
Amortization Charge (138,510) (138,510)
Closing Net Book Value 831,060 969,570
Cost 1,385,100 1,385,100

Accumulated Amortization (554,040) (415,530)
Closing Net Book Value 831,060 969,570
Amortization rate 10% 10%
7.2 Intangibles relates to software developed for business operations having remaining useful life of 6 years.
June 30, June 30,

2022 2021
8 LONG TERM DEPOSITS AND PREPAYMENTS Note ------------Rupees------------
Deposits
With Central Depository Company of Pakistan Limited 25,000 25,000
Against utilities 11,300 11,300
36,300 36,300
Prepayments
License renewal fee - 500,000
Current portion shown under current Assets - (500,000)
8.1 - -
36,300 36,300
8.1 This represents fee paid in respect of renewal of licenses of Asset Management Services (AMC) and Investment Advisory Services (IAS) till
June 2022.
June 30, June 30,
2022 2021
9 DEFERRED TAX ASSET Note ------------Rupees-----------
Relating To Taxable Temporary Differences
Accelerated tax depreciation - -
Relating To Deductible Temporary Differences

Accelerated accounting depreciation 811,105 623,646
Carried forward assessed tax losses 17,861,784 15,266,936

Unabsorbed tax depreciation & amortization 1,948,031 1,403,051
20,620,920 17,293,633
Unrecognized deferred tax asset 9.1 (20,620,920) (17,293,633)
- -
43
9.1 Deferred tax asset has not been recognized on the ground that sufficient taxable profits are not expected in foreseeable future against which the
asset could be utilized. The accumulated tax losses, unabsorbed depreciation and amortization as at June 30, 2022 amounting to Rs. 61.59 million
(June 30, 2021: Rs. 57.48 million).
June 30, June 30,
2022 2021
10 LOANS AND ADVANCES ------------Rupees-----------
Unsecured - considered good

Advance against salary 300,000 -
10.1 Advance against Salary
Maximum Aggregate Amount

Outstanding at any Time with
Name of the Employee Terms of the Loans Security Purpose Reference to Month End Balances Provision Written Off
2022 2021
Rupees Rupees
Monthly Installment Family

Noman Shakir Unsecured 390,000 - - -
Basis and Interest Free Commitment
June 30, June 30,

2022 2021
Restated
11 INVESTMENTS Note ------------Rupees-----------
At fair value through profit or loss
Pakistan investment bonds 11.1 17,311,043 20,166,533

Units of mutual fund- related party 11.2 189,007,617 172,941,561
Term finance certificate - unlisted 11.3 20,211,385 22,138,642
226,530,045 215,246,736
11.1 This Government securities - Pakistan investment bonds will mature latest by September 19, 2029 and carry interest at the rate of 12.14% (June
30, 2021: 12.14%).
11.2 Units of mutual funds- related party
June 30, June 30,

June 30, June 30, 2022 2021
2022 2021 Carrying value Fair value Fair value
-------Number of units------- ----------------------Rupees----------------------
786 Smart Fund- Fund Under

2,312,993 2,130,273 Management 190,493,309 189,007,617 172,941,561
44
11.3 Term Finance Certificate - Unlisted
June 30, June 30, June 30, June 30,

2022 2021 2022 2021
---Number of certificates--- ------------Rupees------------
5,000 5,000 Silk Bank Limited 22,457,095 22,138,642
Provision against investment (2,245,710) -

20,211,385 22,138,642
11.3.1 This represents investments in BBB+ rated, unsecured and subordinated Term Finance Certificate (TFCs) carry profit equal to 6 months KIBOR
plus 1.85% (June 30, 2021: 6 months KIBOR plus 1.85%) receivable half yearly in arrears and will mature in August 2025. The instrument is
structured to redeem 0.14% of the issue amount during the first 7 years and remaining 99.86% in last two (2) equal semi annual installments of
49.93%.
During the year, Silk Bank Limited (the issuer) has not made its payment of principal and mark-up due on February 10, 2022, as issuer informed
the investors the status of minimum capital requirement and invoked lock-in clause governed by Terms and Conditions of the Trust Deed till
minimum capital requirement is met and does not constitute a breach of issuer's redemption obligations pursuant to the Trust Deed as per the
legal opinion sought by the issuer. Due the above fact the management has prudently recorded an impairment of 10% on the amount of investments
based on the Company's policy. Further, the accrual of markup on the same was also suspended. The management is actively looking the matter
for the redemption of the same.
June 30, June 30,
2022 2021
12 PREPAYMENTS AND OTHER RECEIVABLE ------------Rupees------------
Prepayments
Insurance 142,453 449,709
Rent 124,862 116,121
Current portion of license renewal fee - 500,000
Others 324,875 -
592,190 1,065,830
Other receivable
Federal excise duty 6,513,679 6,513,679
7,105,869 7,579,509
12.1 This represents amount receivable from funds in lieu of Federal Excise Duty the break up of which is as follows:
June 30, June 30,

2022 2021
Note ---------Rupees-------
786 Smart Fund- Fund Under Management 12.1.1 6,513,679 6,513,679
12.1.1 The Maximum amount outstanding at any time during the year with reference to month end balances from the funds is Rs. 6.51
(2020: Rs. 6.51) million .
June 30, June 30,

2022 2021
13 TRADE RECEIVABLE Note ------------Rupees------------
Receivable against management fees 1,914,597 1,638,496
Receivable on account of advisory fees 900,000 300,000
13.1 2,814,597 1,938,496
45
June 30, 2022 June 30, 2021
Gross Impairment Gross Impairment
----------------------------Rupees----------------------------
13.1 Balance Outstanding
Past due 1 - 60 days 1,914,597 - 1,028,865 -
Past due 61 - 90 days 900,000 - 909,631 -
Past due 91 - 180 days - - - -
Past due 181 - 365 days - - - -
2,814,597 - 1,938,496 -
13.2 Maximum aggregate amount outstanding at any time during the year with reference to month end balances from each fund is as follows:
June 30, June 30,

2022 2021
Note ------------Rupees------------
786 Smart Fund- Fund Under Management 2,670,445 2,784,461
Dawood Family Takkaful Limited- Common Directorship 900,000 300,000
14 ACCRUED MARKUP
Saving accounts 332,871 701,973
Term finance certificates - 908,138
Pakistan investment bonds 569,863 821,406
902,734 2,431,517
15 TAX REFUND DUE FROM GOVERNMENT
Opening 6,664,825 5,819,256

Tax paid during the year 3,770,041 2,716,388
Prior year tax adjustment - 22,345
Provision for the year (3,028,253) (1,893,164)
Closing 7,406,613 6,664,825
16 CASH AND BANK BALANCES

Cash in hand - 1,315
Cash at bank-saving accounts 16.1 5,065,871 11,955,848
5,065,871 11,957,163
16.1 The balance in savings accounts carry profit at rates of 5.5% - 12.25% per annum (June 30, 2021: 5.5% per annum).
17 ISSUED, SUBSCRIBED AND PAID - UP CAPITAL

June 30, June 30, June 30, June 30,
2022 2021 2022 2021
------Number of shares------ ------------Rupees------------
Ordinary shares of Rs. 10 each issued as fully paid
10,000,000 10,000,000 in cash 100,000,000 100,000,000
Ordinary shares of Rs. 10 each issued as fully paid
4,973,750 4,973,750 bonus shares 49,737,500 49,737,500
14,973,750 14,973,750 149,737,500 149,737,500
46
17.1 The following shares are held by the related parties with whom the Company has entered into transactions or has arrangements
in place.
June 30, June 30,
2022 2021
Name of related party ------Number of shares------
First Dawood Investment Bank Limited 2,246,070 2,246,070
BRR Guardian Modaraba 1,935,505 1,935,505
Tara Uzra Dawood - Chief Executive Officer 1,856,658 1,768,458
18 SUBORDINATED LOAN FROM DIRECTOR
This subordinated loan carries markup @ 3 Months KIBOR + 2 % (June 30, 2021: 3 Months KIBOR + 2%) and is repayable at the discretion
of the Company. This loan has been classified as part of equity as per NBFC rules and ATR 32 issued by the ICAP.
June 30, June 30,
2022 2021
19 ACCRUED AND OTHER LIABILITIES Note ------------Rupees------------
Accrued expenses 19.1 9,140,992 9,422,153

Accrued mark-up on director loan 4,187,082 1,641,797
FED payable 19.2 6,513,677 6,513,677
Sales tax payable 100,901 165,570
Withholding tax payable 7,237 4,338
19,949,889 17,747,535
19.1 This includes an amount of Rs. 7.895 million (June 30, 2021: Rs. 7.895 million) received from NCCPL being refund of tax amount with respect
to funds under management. This amount will be disbursed to unit holders.
19.2 This represents amount payable against Federal Excise Duty (FED) on management fees received/receivable from the Funds under management.
The amount is being held for payment to Federal Board of Revenue on the basis of stay order of the Honorable High Court of Sindh dated
September 04, 2013. The stay order was granted as a result of petition filed by asset management companies on the forum of MUFAP against
the amendment in Finance Act, 2013 which levied FED on the fees received by asset management companies from funds under management.
The Honorable Sindh High Court in its decision dated July 16, 2016 maintained the previous order passed against other constitutional petition
whereby levy of FED is declared to be Ultra Vires the Constitution. On September 23, 2016, the Federal Government has filed an appeal against
the said order in the Honorable Supreme Court of Pakistan (SCP) and thus, the previous balance of FED has not been reversed.
Further, the Federal Government vide Finance Act, 2016 has excluded asset management companies and other non-banking finance companies
from charge of FED on their services. Accordingly, no provision for FED is made from July 01, 2016 onwards.
20 UNCLAIMED DIVIDEND
In compliance of sec 244 of companies Act, 2017, company is in the process of opening a separate bank account for unclaimed dividend.
21 CONTINGENCIES AND COMMITMENTS
21.1 Contingencies
The Additional Commissioner of Income Tax (ACIT) has amended the assessment order under section 122(5A) of the Income Tax Ordinance,
2001, resulting in an additional tax of Rs. 1.005 million and Rs. 0.820 million for Tax Years 2003 and 2004 respectively. The Company has filed
appeals with the Commissioner of Income Tax Appeals-II (CIT-A). The said appeals are pending for hearing. The management is confident that
the appeal will be decided in favour of the Company and therefore no provision in this respect has been made in these financial statements.
Appeals have been filed before Income Tax Appellate Tribunal (ITAT) for the Tax Year 2003 and 2004 against the order of CIT-A. Hearing has
been fixed and ITAT has finalized the order for the Tax Year 2004, which partially allowed and partially remanded back the order to the CIT-A
for passing an order. The case has been decided in favour of the Company by the Appellate Tribunal in Tax Year 2017.
21.2 Commitments
There was no commitment during the year (June 30, 2021: Nil)
47
22 REMUNERATION FROM FUND UNDER MANAGEMENT June 30, June 30,
Open-end funds 2022 2021
Note ------------Rupees------------
786 Smart Fund- fund under management 14,896,775 9,985,558
Less: Sales tax on remuneration (1,713,788) (1,148,780)
13,182,987 8,836,778
Remuneration for services rendered as an asset management company

786 Smart Fund- Fund under Management 1.5 1.5
23 ADVISORY FEE
Advisory Fee 1,200,000 1,200,000

Less: Sales Tax on Advisory Fee (88,888) (88,888)
1,111,112 1,111,112
24 ADMINISTRATIVE AND OPERATING EXPENSES
Salaries and allowances 24.1 12,751,254 12,161,438

Rent, rates and taxes 1,514,100 1,420,573
Postage and telephones 293,539 252,349
Legal and professional charges 1,370,905 951,800
Printing and stationery 245,669 203,671
Travelling and conveyance 80,829 -
Vehicles running 1,624,299 550,069
Advertisement expense 103,500 79,900
Electricity 1,143,586 628,421
Repairs and maintenance 311,812 268,275
Auditors remuneration 24.2 502,200 737,200
Entertainment 305,315 88,533
Insurance 351,262 318,665
Depreciation 1,427,958 1,826,947
Amortization 138,510 138,510
Fee and Subscriptions 2,920,391 3,899,932
Newspapers and periodicals 11 7 100
Directors' fee 212,000 308,000
Others expenses 571,830 87,947
Bank Balances written off - 123,737
25,869,076 24,046,067
Less: Reimbursement of fees and expenses 24.3 (878,865) (589,107)
24,990,211 23,456,960
48
24.1 This includes amount of Rs. 0.727 (June 30, 2021: Rs. 0.589) million relating to staff retirement benefits.
June 30, June 30,
2022 2021
24.2 Auditors' remuneration ------------Rupees------------
Annual audit 280,000 280,000
Certification fee - 235,000
Half yearly review 145,000 145,000
Sales Tax 34,000 34,000
Out of pocket expenses 43,200 43,200
502,200 737,200
24.3 Reimbursement of Fees and Expenses Breakup:
786 Smart Fund- Fund under Management 24.3.1 878,865 589,107
24.3.1 In accordance with the provisions of the NBFC Regulations amended vide S.R.O 1160(I)/2015 dated November 25, 2015, the Management
Company of the Fund is entitled for reimbursement of fees and expenses incurred by the Management Company in relation to registrar services,
accounting, operation and valuation services related to Fund maximum up to 0.1% of average annual net assets of the Scheme or actual whichever
is less. Accordingly, Company has charged accounting and operational charges to the Fund at the rate of 0.1% per annum of the average annual
net assets of the Fund. The breakup in respect of each fund is as follows:
June 30, June 30,
2022 2021
25 FINANCIAL CHARGES Note ------------Rupees------------
Mark-up On Director loan 25.1 2,545,285 1,641,797

Bank charges 11,108 8,247
2,556,393 1,650,044
25.1 This Director loan carry interest at the rate of 3 month Kibor +2% (June 30, 2021: 3 month Kibor +2%).
June 30, June 30,
26 OTHER OPERATING INCOME 2022 2021
Income from financial assets Note ------------Rupees------------
Mark-up earned on saving accounts 681,457 1,431,241

Participation fee 76,275 -
Income from non - financial assets
Scrap sales - 2,800

Liabilities written back 390,656 2,306,682
390,656 2,309,482
1,148,388 3,740,723
49
27 TAXATION
Current tax 3,028,253 1,893,164
Deferred tax 9 - (22,345)
27.1 3,028,253 1,870,819
27.1 The tax reconciliation has not been prepared in these financial statements as the Company's income attracts minimum tax and final tax regime
under the Income Tax Ordinance, 2001.
June 30, June 30,

28 EARNINGS PER SHARE- Basic and diluted 2022 2021
Restated
Net profit for the year- Rupees 792,288 3,214,948
Weighted average number of ordinary shares- Numnber 14,973,750 14,973,750
Earnings per share- Rupees 0.05 0.21
There are no dilutive potential shares as at the year end.
29 REMUNERATION OF CHIEF EXECUTIVE OFFICER, DIRECTORS AND EXECUTIVES
2022 2021
Chief Executive Chief Executive
Directors Executives Directors Executives
Officer Officer
-------------------------------------------Rupees-------------------------------------------
Managerial Remuneration 4,816,000 - 1,864,000 4,416,000 - 1,664,000

House Rent 1,926,400 - 745,600 1,766,400 - 665,600
Medical 89,916 - 28,000 78,059 - 48,000
Utilities 481,600 - 186,400 441,600 - 116,400
Provident Fund 481,601 - 185,730 441,600 - 116,400
Meeting Fee - 212,000 - - 308,000 -
7,795,517 212,000 3,009,730 7,143,659 308,000 2,610,400
Number of Persons 1 6 2 1 6 2
29.1 The Chief Executive and Executives have been provided with company maintained cars.
30 Executive means an employee other than Director and Chief Executive Officer, whose basic salary exceeds Rs. 1,200,000 in a financial year.
50
June 30, June 30,
31 DISCLOSURE RELATING TO PROVIDENT FUND 2022 2021
Size of the Fund- Rupees 210,666,785 208,863,513
Cost of Investments Made- Rupees 39,972,762 39,972,762
Percentage of Investments Made- Percentage 59.21% 74.86%
Fair Value of Investments- Rupees 124,736,045 156,364,741
Breakup of Investments
Defence Saving Certificates 43,000,000 43,000,000
Term Finance Certificates - 18,885,792
Sukuks 6,127,200 6,596,076
Commercial Paper 5,979,309 -
Listed Securities 46,171,294 61,910,005
Mutual Funds 23,458,242 25,972,868
124,736,045 156,364,741
Breakup of Investments (Percentage as size of the fund)

Defence Saving Certificates 34% 27%
Term Finance Certificates 0% 12%
Sukuks 5% 4%
Commercial Paper 5%
Listed Securities 37% 40%
Mutual Funds 19% 17%
100% 100%
The Provident Fund (the Fund) is maintained for its permanent employees and the employees of its associated companies/undertakings at group
level. Accordingly, the information is based upon the latest unaudited financial statements of the Fund as at June 30, 2022 and audited financial
statements as at June 30, 2022. As per Trustees, Investments out of Provident Fund have been made in accordance with the provisions of Section
218 of the Companies Act, 2017 and the Rules formulated for this purpose.
32 TRANSACTIONS WITH RELATED PARTIES
The related parties comprise of related group companies, directors, their close family members, senior executives, retirement benefit plans, major
shareholders of the Company and funds under management. Transactions with the related parties other then those disclosed elsewhere during
the year are as follows:
51
June 30, 2022 June 30, 2021
Relationship with the Company Nature of Transactions During the year
------------Rupees-----------
Transactions During the year
Subordinated loan - 22,000,000.00

Chief executive officer
Interest bearing subordinated loan 2,545,285 1,641,797.00
Management fee charged - net of tax 13,182,987 8,836,778
Sales tax on management Fee 1,713,788 1,148,780

786 Smart Fund- Fund under Management Accounting and operational charges 878,865 589,107
Purchase of Nil (June 30, 2021: 212,457) Units - 18,000,000

Dividend received during the year excluding taxes 17,551,749 9,551,016
Other Related Party
First Dawood Investment Bank Limited & Others Employees' Provident fund contribution
Provident Fund 727,597 633,190
B.R.R Guardian Modaraba- 12.93% shareholder Rent charge during the year 1,489,600 1,402,198
Remuneration and directors fee 11,017,247 10,628,723
Key Management Personnel
Loan to Chief Financial Officer 390,000 -
Insurance expense charge during the year 69,608 50,784
Dawood Family Takaful Limited- common directorhsip
Advisory fee 1,111,112 1,111,112
Balances as the year end
Units Held:
786 Smart Fund- Fund under Management 786 Smart Fund 2,312,993 (June 30, 2021: 2,130,273) Units 189,007,617 172,941,561
Receivable against management fees 1,914,597 1,638,496
Prepaid life insurance - 12,135
Dawood Family Takaful Limited- - common directorhsip
Advisory fee receivable 900,000 300,000
B.R.R Guardian Modaraba- 12.93% shareholder Prepaid rent 124,862 116,121
Key Management Personnel Loan to Chief Financial Officer 300,000 -
Chief executive officer Subordinated loan 26,187,082 23,641,797
The Company has not entered into any transaction with director and senior executives other than those provided under the Company's policies
and terms of employment.
33 OPERATING SEGMENTS
These financial statements have been prepared on the basis of single reportable segment as the Company's asset allocation decision are based
on single, integrated business strategy and the Company's business performance is evaluated on an overall basis.
33.1 Remuneration from fund Under management represents 92.23% (June 30, 2021: 88.83%) of the total revenue of the Company. Whereas, Advisory
Fee reprsents 7.77% (June 30, 2021: 11.17%).
Receivable against management fees represents 68.02% (June 30, 2021 84,52%) of the total trade receivables.
34 FINANCIAL RISK MANAGEMENT
The Company is exposed to a variety of financial risks: market risk (comprising currency risk, interest rate risk, and other price risk), liquidity
risk and credit risk that could result in a reduction in the Company's net assets or a reduction in the profits available for dividends.
52
The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the Company's financial performance.
The Company's financial assets primarily comprise of deposits, investments, trade receivables and cash and bank balances. The Company also
has deposits, loans and advances, other receivables and accrued markup. The Company's principal financial liabilities include trade and other
payables.
34.1 Market risk
Market risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market interest rates or the market price
of securities due to a change in credit rating of the issuer or the instrument, change in market sentiments, speculative activities, supply and demand
of securities and liquidity in the market.
The Company manages market risk by monitoring exposure on marketable securities by following the internal risk management policies and
regulations laid down by the Securities and Exchange Commission of Pakistan, the NBFC Regulations and the NBFC Rules.
Market risk comprises of three types of risks: currency risk, interest rate risk and other price risk.
34.1.1 Currency Risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Company, at present is not exposed to currency risk as its operations are geographically restricted to Pakistan and all transactions are
carried out in Pak Rupees.
34.1.2 Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates.
a) Sensitivity analysis for variable rate instruments
Presently, the Company does not hold any variable profit based investment except balances with bank in deposit account, investment in term
finance certificate and subordinated loan from director exposing the Company to cash flow profit rate risk. In case of 100 basis points increase
/ decrease as on June 30, 2022, with all other variables held constant, the equity of the Company and net profit for the year would have been
higher / lower by Rs. 0.06 (2021: Rs. 0.12) million.
Interest rate sensitivity position for on balance sheet financial instruments is based on the earlier of the contractual repricing or maturity date.
b) Sensitivity analysis for fixed rate instruments
Presently, the Company does not hold any fixed profit based investment except investment in pakistan investments bonds exposing the
Company to cash flow profit rate risk. In case of 100 basis points increase / decrease as on June 30, 2022, with all other variables held constant,
the equity of the Company and net profit for the year would have been higher / lower by Rs. 0.17 (2021: Rs. 0.20) million.
Yield / interest rate sensitivity position for on-balance sheet financial instruments is based on the earlier of contractual repricing ormaturity date
and for off-balance sheet instruments is based on the settlement date.
53
June 30, 2022
Exposed to yield/ profit rate risk
Effective yield/ More than three More than one Not exposed to
profit rate Total Upto three month months and upto one year yield/ profit rate
year risk
% -------------------------------------Rupees-------------------------------------
On balance sheet
financial instruments
Financial assets
Cash and bank balances 5.5 5,065,871 5,065,871 - - -
Investments 12.14 226,530,045 2,500 5,000 37,514,928 189,007,617
Deposits 36,300 - - - 36,300
Accrued markup 902,734 - - - 902,734
Trade receivables 2,814,597 1,637,205 - - 1,177,392
Total financial assets 235,349,547 6,705,576 5,000 37,514,928 191,124,043
Subordinated loan from
director 16.87 22,000,000 22,000,000 - - -
Accrued and other liabilities 13,328,074 - - - 13,328,074
Total financial liabilities 35,328,074 22,000,000 - - 13,328,074
On balance sheet gap 200,021,473 (15,294,424) 5,000 37,514,928 177,795,969
June 30, 2021

Exposed to yield/ profit rate risk
More than three Not exposed to

Effective yield/ More than one
Total Upto three month months and upto one yield/ profit rate
profit rate year
year risk
% -------------------------------------------Rupees-------------------------------------------
On balance sheet
financial instruments
Financial assets
Cash and bank balances 5.5 11,957,163 11,955,848 - - 1,315
Investments 9.41-12.14 215,246,736 - 5,000 42,300,175 172,941,561
Deposits 36,300 - - - 36,300
Accrued markup 2,431,517 - - - 2,431,517
Trade receivables 1,938,496 1,938,496
Total financial assets 231,610,212 11,955,848 5,000 42,300,175 177,349,189
-
Subordinated loan from
director 9.45 22,000,000 22,000,000 - - -
Accrued and other liabilities 11,063,950 - - - 11,063,950
Total financial liabilities 33,063,950 22,000,000 - - 11,063,950
On balance sheet gap 198,546,262 (10,044,152) 5,000 42,300,175 166,285,239
54
34.1.3 Price risk
Price risk is the risk that the fair value of the financial instrument will fluctuate as a result of changes in market prices (other than those arising
from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer or factors affecting all instruments
traded in the market. The Company manages its exposure to price risk by investing in Companies as per the trust deed.
In case of a 5% increase / decrease in rates determined by MUFAP as on December 31, 2021, the equity of the Company would increase / decrease
by Rs. 11.44 (June 30, 2021: Rs. 10.76) million, as a result of reduction / increase in unrealized gains / (losses).
34.2 Credit risk
Credit risk arises from the inability of the issuers of the instruments, the relevant financial institutions or counter parties to fulfil their obligations.
There is a possibility of default of issuers of the instrument, financial institutions or counter parties.
Management of credit risk
The Companys policy is to enter into financial contracts with reputable counterparties in accordance with the internal riskmanagement policies
and investment guidelines approved by the Board of Directors. The Investment Committee closely monitors the creditworthiness of the Companys
counterparties (e.g. issuer of the instruments, brokers, banks, etc.) by reviewing their credit ratings, financial statements and press releases on a
regular basis. In addition the credit risk is also minimized due to the fact that the Company only invests in liquid equity and money market based
collective investment schemes (CIS).
The maximum exposure to credit risk is as follows: -
2022 2021
Chief Executive Chief Executive
Directors Executives Directors Executives
Officer Officer
-------------------------------------------Rupees-------------------------------------------
Managerial Remuneration 4,816,000 - 1,864,000 4,416,000 - 1,664,000

House Rent 1,926,400 - 745,600 1,766,400 - 665,600
Medical 89,916 - 28,000 78,059 - 48,000
Utilities 481,600 - 186,400 441,600 - 116,400
Provident Fund 481,601 - 185,730 441,600 - 116,400
Meeting Fee - 212,000 - - 308,000 -
7,795,517 212,000 3,009,730 7,143,659 308,000 2,610,400
Number of Persons 1 6 2 1 6 2
The Company kept its funds with banks having strong credit ratings. Currently the funds are kept with banks having rating of A1+ to AA+.
34.3 Liquidity Risk
Liquidity risk is the risk that the Company may encounter difficulty in raising funds to meet its obligations and commitments associated with
financial instruments. The Company is not materially exposed to the liquidity risk as all obligations/commitments of the Company are short-
term in nature and restricted to the extent of available liquidity and all assets of the Company are readily disposable in the market.
The table below analyses the Company's financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet
date to the contractual maturity date.
55
More than one More than three
Carrying value Upto one month month upto three months and upto More than one year
months one year
-------------------------------------------Rupees-------------------------------------------
As at June 30, 2022

Subordinated loan from director 22,000,000 22,000,000 - - -
Accrued and other liabilities 13,328,074 13,328,074 - - -
44,987,693 35,328,074 - - -
As at June 30, 2021
Subordinated loan from director 22,000,000 22,000,000
Accrued and other liabilities 11,063,950 11,063,950 - - -
33,063,950 33,063,950 - - -
June 30, June 30,

2022 2021
34.4 Financial instruments by category Note ------------Rupees------------
Financial assets
At fair value through profit or loss

Investments 226,530,045 215,246,736
At Amortized Cost
Cash and bank balances 5,065,871 11,957,163
Deposits 36,300 36,300
Accrued markup 902,734 2,431,517
Trade receivables 2,814,597 1,938,496
8,819,502 16,363,476
235,349,547 231,610,212
Financial Liabilities
At Amortized Cost
Subordinated loan Form director 22,000,000 22,000,000
Accrued and Other Liabilities 13,328,074 11,063,950
35,328,074 33,063,950
34.5 Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the processes, technology and infrastructure
supporting the Companys operations either internally within the Company or externally at the Company's service providers, and from external
factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards
of investment management behaviour. Operational risks arise from all of the Companys activities.
The Companys objective is to manage operational risk so as to balance limiting of financial losses and damage to its reputation with achieving
its investment objective of generating returns for investors.
The primary responsibility for the development and implementation of controls over operational risk rests with the board of directors. This
responsibility encompasses the controls in the following areas:
56
- requirements for appropriate segregation of duties between various functions, roles and responsibility;
- requirements for the reconciliation and monitoring of transactions;
- compliance with regulatory and other legal requirements;
- documentation of controls and procedures;
- requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified;
- ethical and business standards; and
- risk mitigation, including insurance where this is effective.
34.6 Capital Risk Management
The primary objective of the Company's capital management is to maintain healthy capital ratios, strong credit rating and optimal capital structures
in order to ensure ample availability of finance for its existing and potential investment projects, to maximize shareholder value and reduce the
cost of capital.
The Company manages its capital structure and makes adjustment to it, in light of changes in economic conditions. In order to maintain or adjust
the capital structure the Company may adjust the amount of dividend, return on capital to shareholders or issue new shares. Currently the Company
has an equity of 230.92 (June 30, 2021: Rs 230.13) million against the minimum equity requirement of Rs. 230 Million set by the Securities and
Exchange Commission of Pakistan for the Non Banking Finance Company providing Asset Management Services and Advisory Services.
35 FAIR VALUE OF FINANCIAL INSTRUMENTS
IFRS 13 - 'Fair Value Measurement' establishes a single source of guidance under IFRS for all fair value measurements and disclosures about
fair value measurement where such measurements are required as permitted by other IFRSs. It defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price).
Financial assets which are tradable in an open market are revalued at the market prices prevailing on the balance sheet date. The estimated fair
value of all other financial assets and liabilities is considered not significantly different from book value.
The following table shows financial instruments recognised at fair value, analyzed between those whose fair value is based on:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices); and
Level 3: Those with inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The table shown below analyses the financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into
which the fair value measurement is categorised:
June 30, 2022 June 30, 2021

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
-------------------------------------Rupees-------------------------------------
Financial assets at fair value

through profit or loss
Pakistan investments bonds - 17,311,043 - - 20,166,533 -

Units of mutual funds - 189,007,617 - - 172,941,561 -
Term finance certificate 20,211,385 - 22,138,642
- 226,530,045 - - 215,246,736 -
57
35.1 Valuation techniques
For Level 2 the Company values the investment using rates mentioned on MUFAP.
Investment in mutual funds are valued on the basis of the closing net assets at the reporting date announced by the Mutual Funds Association of
Pakistan (MUFAP) based on the closing net assets of the mutual funds.
Investment in term finance certificates and Pakistan investment bonds are valued on the basis of the rates announced by the Mutual Funds
Association of Pakistan (MUFAP) in accordance with the methodology prescribed.
35.2 Transfers during the year
During the year ended June 30, 2022 there were no transfers between level and level 2 fair value measurements, and no transfer into and out of
of Level 3.
35.3 The Company has not disclosed the fair values for financial assets other than above, as these are either short term in nature or repriced periodically.
Therefore, their carrying amounts are a reasonable approximation of fair value.
36 NUMBER OF EMPLOYEES
The number of employees as at year end was 7 (2021: 9) and average number of employees during the year was 8 (2021: 9).
37 GENERAL
37.1 In compliance of the NBFC Rules read with SRO 1002(1)/2015 dated October 15, 2015 of SECP, the management would like to report that the
Company has sufficient insurance coverage from an insurance company, rated AA++ by the Pakistan Credit Rating Agency limited (PACRA),
against financial losses that may be caused as a result of gross negligence of its employees.
37.2 Figures have been rounded off to the nearest rupee.
38 DATE OF AUTHORIZATION FOR ISSUE
These financial statements were authorised for issue by the Board of Directors on 26 September, 2022 of the Company.

58
Pattern of Shareholding
As on June 30, 2021
Number Of Shareholding Total Shares
Shareholders From To Held
143 1 - 100 3,677

189 101 - 500 56,296
207 501 - 1000 170,373
202 1001 - 5000 546,679
69 5001 - 10000 521,693
32 10001 - 15000 414,885
17 15001 - 20000 311,008
13 20001 - 25000 293,500
5 25001 - 30000 143,447
3 30001 - 35000 99,000
4 35001 - 40000 152,354
5 40001 - 45000 215,227
2 45001 - 50000 93,500
1 55001 - 60000 57,500
4 60001 - 65000 250,690
1 65001 - 70000 68,000
3 95001 - 100000 299,500
3 115001 - 120000 352,779
2 125001 - 130000 260,000
2 150001 - 155000 306,500
1 175001 - 180000 177,000
1 185001 - 190000 186,500
1 190001 - 195000 194,000
1 245001 - 250000 246,509
1 270001 - 275000 273,500
1 345001 - 350000 346,500
1 480001 - 485000 480,652
1 645001 - 650000 648,845
1 1375001 - 1380000 1,376,006
1 1935001 - 1940000 1,935,505
2 2245001 - 2250000 4,492,125
919 14,973,750
Categories of Share Holders As on June 30, 2022

Categories Of Number Of Total Shares Percentage
Shareholders Shareholders Held %
Individuals 895 7,615,209 50.86

Joint Stock Companies 13 216,440 1.45
Financial Institutions 2 2,246,428 15.00
Investment Companies 3 2,247,070 15.01
Modarabas 1 1,935,505 12.93
Others 5 713,098 4.76
919 14,973,750 100.00
59
Shares
S. No. Categories of Share holders Numbers % Age
Held
1 Associated Companies 3 6,427,630 42.93
B.R.R. Guardian Modaraba 1,935,505

First Dawood Investment Bank Limited 2,246,070
The Bank of Khyber 2,246,055
2 NIT & ICP 2 1,000 0.01
Investment Corporation of Pakistan 500

IDBP (ICP UNIT) 500
3 Directors, CEO their Spouses and Minor Children 7 1,871,974 12.50
Miss Tara Uzra Dawood 1,856,658

Mr. Iqbal Shafiq 2,816
Mr. Ahmed Zia Sarwar 2,500
Mr. Ahmed Salman Munir 2,500
Syed Shabahat Hussain 2,500
Syed Musharaf Ali 2,500
Mr. Naveed Ahmed 2,500
4 Banks, DFIs. NBFIs, Insurance Companies, 19 929,911 6.21

Takaful, Modarabas and Pension Funds
5 General Public 888 5,743,235 38.36
Total 919 14,973,750 100.00
Shareholders holding ten percent or more shares in the Company 14,973,750
First Dawood Investment Bank Limited 2,246,070 15.00

The Bank of Khyber 2,246,055 15.00
B.R.R. Guardian Modaraba 1,935,505 12.93
Miss Tara Uzra Dawood 1,856,658 12.40
60
FORM OF PROXY
31th Annual GENERAL MEETING
I/We_______________________________________________________________________________________________________________of
__________________________________________________________________________________________________________(full address)
being a member of 786 Investments Limited Folio #_________________________________________________ do hereby appoint
Mr./Ms _________________________________________________________________________Folio #_______________________________
of ___________________________________________________________________________________________(full address) (or failing him)
Mr./Ms_____________________________________________________________________________Folio#____________________________
of ________________________________________________________________________________________________________(full address)
being another member of the Company as my/our proxy to attend and vote for me/us on my/our behalf, at the Annual General Meeting
of the Company to be held on October 22, 2022 at 08:30 hours and to every adjournment thereof.
And witness my/our hand/seal this _________________day of _________________2022, signed by the said
______________________________________________________________________________________________________in the presence of
Mr./Ms.______________________________________________________________________________________________________________
of _______________________________________________________________________________________________________ (full address)
REVENUE
STAMP
Rs. 5/-
____________________________ _____________________________
Signature of Witness Signature(s) and or Seal
Important Notes :
1. The share transfer books of the Company will remain closed from October 15, 2022 to October 22, 2022 (both days inclusive).
2. A member entitled to attend and vote at the General Meeting is entitled to appoint a proxy to attend and vote instead of him/her.
3. An instrument appointing a proxy and the power of attorney or other Authority (if any) under which it is signed or a notarially certified copy of the Power
or Authority, in order to be valid, must be deposited at the Registered office of the Company, 48 hours before the meeting and must be duly stamped, signed
and witnessed.
4. If more than one instrument of proxy appointing more than one person is deposited with the Company, all such instruments of proxy shall be rendered invalid.
5. This signature on the Instrument of Proxy must conform to the specimen signature recorded with the Company.
6. CDC account holders will in addition have to follow the guidelines as laid down in Circular No. 1 dated January 26, 2000 of the Securities
& Exchange Commission of Pakistan for attending the meeting
61
If undelivered, please return to:
Karachi - 74000 Pakistan
Off I.I. Chundrigar Road,
BOOK POST
786 Investment Limited
G-3, B.R.R. Tower,
Hassan Ali Street,
ARP Tel: 0300-3626628
Managed By:
G-3, B.R.R. Tower, Hassan Ali Street,
Off I.I. Chundrigar Road, Karachi - 74000 Pakistan
Tel: (92-21) 32603751-54
Email: info@786investments.com
Website: www.786investments.com

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ANNUAL REPORT

Notice of Annual General Meeting 04

Review Report to the Share Holders on Statement of Compliance with

Statement of Compliance with the Code of Corporate Governance

Auditors Report to the Members 24

Statement of Financial Position 28

Statement of Profit & Loss Account 29

Statement of Comprehensive Income 30

Cash Flow Statement 31

Statement of Changes in Equity 32

Notes to the Financial Statements 33

Board of Directors Mr. Ahmed Salman Munir Chairperson

Chief Financial Officer &

Audit Committee Syed Shabahat Hussain Chairman

Human Resource Mr. Ahmed Salman Munir Chairperson

Auditors Grant Thornton Anjum Rahman

Registrars F.D. Registrar Services (SMC-Pvt.) Ltd.

Banker: Habib Metropolitan Bank Limited

Rating: PACRA: AM3

To offer our unit holders the best

By Order of the Board

September 26, 2022 Noman Shakir

a) AGM will be held through Zoom application - a video link facility.

Folio/ AC no Company Name of CNIC number Cell number Email Address

786 Investments Limited

3 For Appointment of Proxy

4 Submission of copy of CNIC/NTN (Mandatory):

5 Availability of Annual Audited Financial Statements on the Company's website:

6 Transmission of Financial Statements to the Members through e-mail:

7 Deposit of Physical Certificates in CDC Account

2022 2021 2020 2019 2018 2017

Authorized Capital 200.0000 200.0000 200.0000 200.0000 200.0000 200.0000

Paid-Up Capital 149.7375 149.7375 149.7375 149.7375 149.7375 149.7375

Shareholders' Equity 230.9224 230.1301 210.3695 210.3695 245.4472 270.8865

Total Assets 251.8710 248.8764 229.6785 229.6785 264.0662 287.1988

Short-Term Investment in Securities 226.5300 215.2467 192.0067 192.0067 8.6252 7.6483

Income From Investments 2.0061 4.6185 7.6435 7.6435 0.0427 -

Management Fee 13.1830 8.8368 9.5667 9.5667 11.5011 10.0134

Advisory Fee 1.1111 1.1111 1.1111 1.1111 - -

Dividend Income 17.5517 9.5510 10.0074 10.0074 4.3759 75.6602

Other Income 1.1484 3.7407 2.8357 2.8357 0.5568 0.6706

Impairment Loss on Investment - - - - (0.1542) (0.5665)

Profit/(Loss) Before Taxation 3.8205 5.1396 5.4481 5.4481 (24.8392) 64.8050

Taxation 3.0283 1.8708 1.5122 1.5122 1.5769 9.6630

Profit/(Loss) After Taxation 0.7923 3.2688 3.9359 3.9359 (26.4162) 55.1420

Earnings Per Share 0.05 0.22 0.26 0.26 (1.76) 3.68

Date: September 26, 2022

Company Performance Review:

June 30, 2022 June 30, 2021

Profit Before Taxation 3,820,541 5,085,767

Money Market Review:

Stock Market Review:

Corporate Social Responsibility and Impact on Environment

Principle Risk & Uncertainties

Corporate Governance and Financial Reporting Framework

Proper books of account have been maintained by the company.

The Composition of board is as follows:

Category Names Designation

Independent Directors Mr. Ahmed Salman Munir Chairperson

Auditors Report to the Members 24

IBOR Reform and its Effects on Financial ReportingPhase 2 January 1, 2021

Onerous ContractsCost of Fulfilling a Contract