Accounts Fy 2022 23

LAHORE UNIVERSITY OF
MANAGEMENT SCIENCES
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
JUNE 30, 2023
LAHORE UNIVERSITY OF MANAGEMENT SCIENCES
STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2023
Current Endowment Scholarship Chair Sponsored Fixed Assets 2023 2022
Note Fund Fund Fund Fund Projects Fund Total Total
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Fund balance 2,051,221,330 4,089,506,625 118,962,268 74,610,539 1,390,457,497 1,769,214,370 9,493,972,629 7,296,476,681
Represented by
Non - current assets

Operating fixed assets 5 - - - - - 1,309,342,936 1,309,342,936 1,193,549,073
Intangible assets 6 - - - - - 459,871,434 459,871,434 29,518,456
Capital work-in-progress 7 11,379,209 2,108,514 - 31,123 1,269,441 - 14,788,287 34,151,114
Investments 8 605,102,364 1,198,952,995 - - - - 1,804,055,359 3,022,596,719
Long term loans, advances and security deposits 9 360,549,033 3,680,029 7,408,686 - 1,961,667 - 373,599,415 362,084,476
977.030,606 1,204,741,538 7,408,686 31,123 3,231,108 1,769,214370 3,961,657,431 4,641,899,838
Less: Non - current liabilities
Employee benefits obligations 10 103,515,786 - - - - -
103,515,786 91,384,488
Long term security deposits 11 90,918,900 - - - - -90,918,900 78,657,100
Deferred contributions 12 12,528,173 - - - - -12,528,173 16,411,038
206,962,859 206,962,859 186,452,626
770,067,747 1,204,741,538 7,408,686 31,123 3,231,108 1,769,214,370 3,754,694,572 4,455,447,212
Current assets
Stores 58,802,978 - - - - - 58,802,978 39,155,142
Loans, advances, deposits,
prepayments and other receivables 13 408,799,004 77,633,241 3,806,991 15,214,158 17,864,136 - 523,317,530 460,653,840
Income tax recoverable 108,845,469 55,864,929 27,679 158,386 2,664,085 - 167,560,548 160,481,419
Due from National Management Foundation (NMF') 9,542 - - - - - 9,542 -
Current maturity of long term investments 8 243,655,144 618,929,116 - - - - 862,584,260 619,713,048
Short term investments 14 1,995,051,542 2,058,462,700 - - - - 4,053,514,242 1,543,010,629
Cash and bank balances 15 16,788,236 75,866,745 199,531,118 59,451,913 1,435,681,410 - 1,787,319,422 1,317,005,354
2,831,951,915 2,886,756,731 203,365,788 74,824,457 1,456,209,631 7,453,108,522 4,140,019,432
Less: Current liabilities
Creditors, accrued and other liabilities 16 1,642,604,306 1,991,644 6,232 245,041 68,983,242 - 1,713,830,465 1,298,880,433
Due to NMF - - - - - - - 109,530
1,642,604,306 1,991,644 6,232 245,041 68,983,242 1,713,830,465 1,298,989,963
Net current assets 1,189,347,609 2,884,765,087 203,359,556 74,579,416 1,387,226,389 5,739,278,057 2,841,029,469
Due to/(from) 17 91,805,974 (91,805,974)
Net assets 2,051,221,330 4,089,506,625 118,962,268 74,610,539 1,390,457,497 1,769,214,370 9,493,972,629 7,296,476,681
CONTINGENCIES AND COMMITMENTS 18
The annexed notes 1 to 29 form an integral part of these financial statements.
c3
Member of Management Committee
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED JUNE 30, 2023
Note Fund Fund Fund Fund Projects Fund Total Total
Income
Direct grants 19 121 .889.258 159,414,640 324,733,237 38,380,495 1,589,532,125 11,917 .2 18 2,245,866,973 1,245,039,123
Tuition fee and other income
Tuition fee 4,835,329.323 - - - - - 4,835,329,323 4,097,108,659
Other fees 605,495,426 - - - - - 605,495,426 491,347,313
Consultancy fee 11,064,494 - - - 26,894,481 - 37,958,975 62,635,470
Executive devetopment programmes 454,170,376 - - - - - 454,170.376 286,840,343
Miscellaneous income 20 1,081,256,167 1,337,175 1,047,560 - 70,580,658 - 1,154,221,560 782,461,209
Return on investments and term deposits 21 385,899,938 530,329,511 - 454,640 19,023,908 - 935.707,997 550,817,941
Exchange gain 221,273,787 - - - 76,806,897 - 298,080,684 126,767,362
7,594,489,511 531,666,686 1,047,560 454,640 193 305,944 8,320,964,341 6,397,978,297
Total income for the year 7,716, 378.769 691,081,326 325.780,797 38,835,135 1,782,838,069 11,917,218 10,566.831,3 14 7,643,017.420
Expenditure
Salaries, wages and amenities 3,472,182,669 8.208,668 - 16,427,110 145,928,177 - -- 3,642,746,624 3,063,605,910
Training 22,525,859 - - - 6.219,750 - 28,745,609 42.215,393
Rent - - - - 8,076,991 - 8,076.991 -
Fuel and power 534,056,058 - - - - - 534.056.058 374,236,921
Telephone and postage 7,400,562 55,265 - - 4,294,166 - 11,749.993 10,357,698
Contribution to National Management Foundation 300,000.011 - - - - - 300.000.011 367,430,794
Foreign travel and recruitment 122,988,625 264,650 - 3,051,080 26,502,115 - 152,806,470 47,147,193
Travelling and vehicle running expenses 82,628,994 825,610 - 25.975 38.732.229 - 122.212,808 55,711,024
Cafeteria expenses 313,233,469 188,015 - 210,244 14,898,285 - 328,530,013 171,205,973
Repairs and maintenance 25,572,142 8,000 - - 843,299 - 26,423,441 16,491,050
Advertisement and open house programme 70,924,367 - - - 1,555,845 - 72,480,212 103,373,422
Subscriptions 67,570,342 - - 88.702 1,686.955 - 69,345,999 46,608,795
Research and case development 158,096,075 9,746,342 - 21,346 254,170,257 - 422,034,020 421,335.748
Convocation expenses
Printing, stationery and office supplies 455,051,523 1,096,505 - 105,319 48,777,937 505,031,284 367.085,440
Software consumables 200,339,672 - - - 884,116 - 201.223.788 134,516,402
Insurance 21 .973.868 - - - 1,142,803 - 23.116.671 20,832,206
Scholarships and tuition fee waiver 493.277,559 172,323.369 309,846,411 - 20,000 - 975,467,339 760,750,556
PhD living atlowance 129,276,865 - - - 229,250 - 129,506,115 104,063,304
Higher Education Commission scholarship - - 5,058,034 - 584,000 - 5,642,034 7,407,207
Legal and professional charges 99,950,098 - - - 2,058,089 - 102,008,187 142,799,194
Estate management 93,059,538 - - - - - 93,059,538 73,997,485
Intemet charges 91,283,147 - - - 325,060 - 91,608,207 83,657,088
Depreciation on operating fixed assets - - - - - 349,818,994 349,818,994 321,520.119
Amortization of intangible assets - - - - - 11,835,875 11.835,875 9,349,267
Consultancy projects 360,552 - - - 21,399,083 - 21,759,635 21,788,546
Sports and Student activities 242,080 - - - 42,679,931 - 42,922,011 16,437,909
Net impairment losses on financial
and contract assets 2,607.665 988.814 - - - - 3.596,479 1,718,638
Bad debts and advances written off - - - - - - - 1,070.339
Discounting cost on long term loans to
students 73,519,404 - 5,383,634 - - - 78,903,038 46,782,913
Discounting cost on loan from NMF - - - - - - - 4,289,799
Finance cost 3,800,111 - - - 4,806,002 - 8,606,113 3,595,699
Fair value loss on investments at fair vatue
lhrough profit or loss 379,596 157,988 - - - - 537,584 32,830,984
Loss on sale of fixed assets 132,348 - - - - - 132,348 -
Exchange loss 1,116,055 - - - 3,229,000 - 4,345,055 1,262,387
Miscellaneous 188,225 - - - 818,597 - 1,006,822 15,496,634
6,843,737,479 193,863,226 320,288,079 19,929,776 629.861,937 361,654,869 8,369,335,366 6,890,972,037
Surplusl(deflclt) of Income over
expenditure before taxatIon 872,641,290 497,218,100 5,492,718 18,905,359 1,152,976,132 (349,737,651) 2,197,495,948 752,045,383
Provision for taxation
Surplus/(deflclt) of Income over
expendIture after taxatton 872,641,290 497,218.100 5,492.718 18,905,359 1,152,976,132 (349,737,651) ,_.2,197,495,948 752,045,383
The annexed notes ito 29 form an integral part of these financial statements.
c3 Member of Management Committee Ch41 Officer

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2023

Fund Fund Fund Fund Projects Fund Total Total
Surplus/(deficit) of income over expenditure after taxation 872,641290 497,218,100 5,492,718 18,905,359 1 152,976,132 (349,737,651) 2,197,495,948 752,045,383
Other comprehensive income:
Items that may be reclassified subsequently to

income and expenditure account
Items that will not be reclassified subsequently to

income and expenditure account
Other comprehensive income for the year
Total comprehensive income/(loss) for the year 872,641,290 497,218,100 5,492,718 18,905,359 1,152,976,132 (349,737,651) 2,197,495,948 752,045,383
The annexed notes I to 29 form an integral part of these financial statements.

STATEMENT OF CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023
Current Endowment Scholarship Chair Sponsored Fixed Assets

Fund Fund Fund Fund Projects Fund Total
Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Balance as on July 1,2021 1,854,506,914 2,847,818,088 35,385,294 58,125,895 573,700,815 1,174,894,292 6,544,431,298
Surplus/(deficit) of income over expenditure after taxation 697,801,482 203,960,183 (8,693,462) 6,210,515 169,225,368 (316,458,703) 752,045,383
Total comprehensive income/(loss) for the year 697,801,482 203,960,183 (8,693,462) 6,210,515 169,225,368 (316,458,703) 752,045,383
Transfer (from)/to funds 22 (300,000,000) 277,325,612 22,674,388
Transfer of fixed assets additions (from)Ito funds 23 (304,494,213) (107,500) (2,499,440) (57,530,787) 364,631,940
Balance as on June 30, 2022 1,947,814,183 3,328,996,383 49,366,220 61,836,970 685,395,396 1,223,067,529 7,296,476,681
Surplus/(deflcit) of income over expenditure after taxation 872,641,290 497,218,100 5,492,718 18,905,359 1,152,976,132 (349,737,651) 2,197,495,948
Total comprehensive income/(loss) for the year 872,641,290 497,218,100 5,492,718 18,905,359 1,152,976,132 (349,737,651) 2,197,495,948
Transfers (from)/to funds:
Current fund to endowment fund 22 (330,000,000) 330,000,000 - - - - -
Endowment fund to current and scholarship funds 570,714 (64,674,044) 64,103,330 - - - -
Exchange gain from current fund to sponsored projects fund (42,235,899) - - - 42,235,899 - -
(371,665,185) 265,325,956 64,103,330 42,235,
Transfer of fixed assets additions (from)/to funds 23 (404,160,435) (2,033,814) (6,131,790) (490,149,930) 902,475,969
Transfer of fixed assets disposals to/(from) funds 6,591,477 (6,591,477)
Balance as at June 30, 2023 2,051,221,330 4,089,506,625 118,962,268 74,610,539 1,390,457,497 1,769,214,370 9,493,972,629
The annexed notes ito 29 form an integral part of these financial statements.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2023
2023 2022
Rupees Rupees
Cash flow from operating activities
Surplus of income over expenditure before taxation 2,197,495,948 752,045,383
Adjustment for non cash charges and other items:

Depreciation on operating fixed assets 349,818,994 321,520,119
Amortization on intangible assets 11,835,875 9,349,267
Net gain on disposal of operating fixed assets (1,943,276) (3,372,334)
Discounting cost on loan from NMF 4,289,799
Unwinding income on long term loans to students (42,422,287) (31,349,653)
Discounting cost on long term loans to students 78,903,038 46,782,913
Finance cost 8,606,113 3,595,699
Grants income (2,245,866,973) (1,245,039,123)
Net impairment losses on financial and contract assets 3,596,479 1,718,638
Bad debts and advances written off 1,070,339
Liabilities no longer payable written back (851,347) (251,571)
Provision for accumulating compensated absences 27,230,595 20,275,999
Exchange gain - net (98,945,125) (122,548,293)
Amortization of deferred contributions (76,555,775) (137,679,198)
Return on investments and term deposits (935,707,997) (550,817,941)
(2,922,301,686) (1,682,455,340)
Deficit before working capital changes (724,805,738) (930,409,957)
Effect on cashflow due to working capital changes:

Increase in stores (19,647,836) (8,663,047)
Decrease/(increase) in loans, advances, deposits
prepayments and other receivables 32,103,015 (262,684,193)
(lncrease)/decrease in due from NMF (119,072) 15,965,732
Increase in creditors, accrued and other liabilities 415,801,379 408,009,505
428,137,486 152,627,997
Cash used in operations (296,668,252) (777,781,960)
Finance cost paid (8,606,113) (3,595,699)

Payment of accumulating compensated absences (15,099,297) (11,974,906)
Operating contributions received 1,665,830,720 1,209,277,151
Receipts in respect of deferred contributions 72,672,910 119,000,000
Increase in long term loans, advances and
security deposits (78,156,177) (97,440,742)
1,636,642,043 1,215,265,804
Net cash generated from operating activities 1,339,973,791 437,483,844
Cash flow from investing activities

Fixed capital expenditure (460,115,066) (368,832,474)
Proceeds from disposal of operating fixed assets 13,264,980 6,419,949
Return on investments and term deposits received 853,664,063 600,512,286
Proceeds from maturity of investments 7,455,536,718 7,415,793,462
Proceeds from disposal of investments 828,564,223 1,153,053
Purchase of investments (6,856,126,424) (9,022,869,474)
Net cash generated from/(used in) investing activities 1,834,788,494 (1,367,823,198)
Cash flow from financing activities

Endowment grants received 159,414,640 21,351,289
Payment of loan from National Management Foundation ('NMF') (49,999,587)
Net cash generated froml(used in) financing activities 159,414,640 (28,648,298)
Net increase/(decrease) in cash and cash equivalents 3,334,176,925 (958,987,652)
Cash and cash equivalents at the beginning of the year 2,079,072,338 2,915,511,697
Effects of exchange rate changes on cash and cash equivalents 98,945,125 122,548,293
Cash and cash equivalents at the end of the year - note 24 5,512,194,388 2,079,072,338
The annexed notes 1 to 29 form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2023
1. University and its operations
The Lahore University of Management Sciences (hereinafter referred to as 'LUMS' or the 'University') is a body
corporate and has been established in Pakistan under the Lahore University of Management Sciences Order, 1985 on
March 31, 1985. The registered office of the University is situated opposite to Sector U, Phase V, Defence Housing
Authority, Lahore Cantt, Lahore. The principal aims and objectives of the University are to design, prepare and offer
courses of international standard and to undertake, organize, and promote research and dissemination of knowledge.
The University has been divided into five schools namely Suleman Dawood School of Business (SDSB), Mushtaq
Ahmad Gurmani School of Humanities and Social Sciences (MGSHSS), Syed Babar Ali School of Science and
Engineering (SBASSE), Syed Hyder Ali & Syed Maratib Ali School of Education (SOE) and Sheikh Ahmed Hassan
School of Law (SAHSOL). The University is a Not-For-Profit organization under section 2(36) of the Income Tax
Ordinance, 2001 and its surplus, if any, is carried forward to the subsequent year, and is not available for
appropriation.
2. Basis of preparation
2.1 These financial statements have been prepared in accordance with the Accounting Standard for Not for
Profit Organisations (NPOs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) and International
Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as applicable in
Pakistan i.e. as notified by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of
IFRS differ from those of the Accounting Standard for NPOs, the requirements of the IFRS prevail.
2.2 Initial application of standards, amendments or interpretations to existing standards
The following amendments to existing standards have been published that are applicable to the University's financial
statements covering annual periods, beginning on or after the following dates:
2.2.1 Standards, amendments to published standards and interpretations that are effective in the
current year
Certain standards, amendments and interpretations to IFRS are effective for accounting period beginning on July 1,
2022 but are considered not to be relevant or to have any significant effect on the University's operations (although
they may affect the accounting for future transactions and events) and are, therefore, not detailed in these financial
statements.
2.2.2 Standards, amendments and interpretations to existing standards that are not yet effective and
have not been early adopted by the University
There are certain standards, amendments to the IFRS and interpretations that are mandatory for the entities having
accounting periods beginning on or after July 1, 2023 but are considered not to be relevant or to have any significant
effect on the University's operations and are, therefore, not detailed in these financial statements, except for the
following:
a) Classification of Liabilities - Amendments to International Accounting Standard (lAS) 1: (effective for annual
period beginning on January 1, 2023)
The narrow-scope amendments to lAS 1 'Presentation of Financial Statements' clarify that liabilities are classified as
either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is
unaffected by the expectations of the entity or events after the reporting date. The amendments also clarify what lAS 1
means when it refers to the 'settlement' of a liability.
In particular, the amendment clarifies that:
- liabilities are classified as non-current if the entity has a substantive right to defer settlement for at least 12 months at
the end of the reporting period. The amendment no longer refers to unconditional rights;
- the assessment determines whether a right exists, but it does not consider whether the entity will exercise the right.
So, management's expectations do not affect the classification;
- the right to defer only exists if the entity complies with any relevant conditions at the reporting date. A liability is
classified as current if a condition is breached at or before the reporting date and a waiver is obtained after the
reporting date;
- settlement' is defined as the extinguishment of a liability with cash, other economic resources or an entity's own
equity instruments.
The University does not expect any significant impact of this amendment on its financial statements.
b) Amendments to lAS 8, 'Definition of Accounting Estimates'
The amendment to lAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors, effective for accounting
periods beginning on or after January 01, 2023, clarifies how entities should distinguish changes in accounting policies
from changes in accounting estimates. The distinction is important, because changes in accounting estimates are
applied prospectively to future transactions and other future events, but changes in accounting policies are generally
applied retrospectively to past transactions and other past events as well as the current period.
These amendments are not expected to have any material impact on the University's financial statements.
c) Amendments to lAS I and IFRS Practice Statement 2 - Disclosure of Accounting Policies (effective for
annual period beginning on July I, 2023)
The IASB has issued narrow-scope amendments to IFRS Standards.
The amendments will help entities:
- improve accounting policy disclosures so that they provide more useful information to investors and other primary
users of the financial statements; and
- distinguish changes in accounting estimates from changes in accounting policies.
The amendments to lAS 1 require entities to disclose their material accounting policy information rather than their
significant accounting policies.
The University does not expect any significant impact of these amendments on its financial statements.
3. Basis of measurement
These financial statements have been prepared under the historical cost convention, modified by the revaluation of
certain financial instruments at fair value.
3.1 Critical accounting estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal
the actual results. Management also needs to exercise judgement in applying the University's accounting policies,
however, there was no area that involved a higher degree of judgement or complexity, other than those referred to in
notes 4.14.4, 4.22,18 and 27.1(b)(ii) to these financial statements, and of items which are more likely to be materially
adjusted to the estimates and assumptions turning out to be wrong.
Estimates and judgements are continually evaluated. They are based on historical experience and other factors,
including expectations of future events that may have a financial impact on the University and that are believed to be
reasonable under the circumstances.
4. Summary of significant accounting policies
The significant accounting policies adopted in the preparation of these financial statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
4.1 Fund accounting
The University follows the restricted fund method of accounting for contributions.
Income arising from general unrestricted resources is recognized in the statement of income and expenditure in the
Current Fund when the amount of income can be measured reliably and collectability of the consideration exists.
Contributions against restricted funds are recognized as income in the statement of income and expenditure for the
respective restricted fund when the amount of income can be measured reliably and collectability of the consideration
exists. Contributions subject to similar restrictions will all be reported in the same fund and will be accounted for in the
same way on consistent basis from year to year. Income that is generated from assets held in a restricted fund is
subject to the same restrictions as the original fund, unless the terms that imposed the original restriction specifically
say otherwise.
4.2 Current Fund
This is an unrestricted fund. Grants and donations, utilization of which is not restricted for a specific purpose, are
recognised in this fund. it includes grants and donations for all five schools of the University.
4.3 Endowment Fund
This is a form of restricted fund which is held on trust to be retained for the benefit of the University as a capital fund.
The income generated from this capital fund is also credited to this fund and utilized for restricted purposes, which
include but are not limited to, providing scholarships and loans to students and carrying out activities under different
scholarship programmes of the University including National Outreach Programme.
4.4 Scholarship Fund
This is a form of restricted fund utilized for providing scholarships and loans to students and carrying out activities
under different scholarship programmes of the University including National Outreach Programme. Grants and
donations (including government grants) received for this purpose are recognised in this fund.
4.5 Chair Funds
These are restricted funds. The funds received are expended on financing academic chairs.
4.6 Sponsored Projects
This is a restricted fund utilized for carrying out activities by the University under different sponsored projects as per
agreement with the donors. Grants and donations (including government grants) received for specific projects are
recognised in this fund. For completed projects, remaining surplus, if any, if permitted by the relevant agreement, is
transferred to the current fund.
4.7 Fixed Assets Fund
This fund represents the net book value of the tangible fixed assets and intangible assets of the University. These
assets are accounted for in accordance with the policies given in notes 4.9 and 4.10 respectively. Fixed assets
received directly as donations are debited to the property, plant and equipment or intangibles account at fair value and
a corresponding amount credited to income of this fund. Such items are thereafter depreciated as per the policy of the
University.
4.8 Taxation
Income tax comprises current and deferred tax. Income tax is recognized in the income and expenditure account
except to the extent that it relates to items recognized directly in fund balance, in which case it is recognized directly in
the fund balance.
Current
The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply to surplus for the year
if enacted or substantively enacted at the end of the reporting period in accordance with the prevailing law for taxation
of income, after taking into account tax credits, rebates and exemptions, if any. Management periodically evaluates
position taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and
considers whether it is probable that the tax authorities will accept an uncertain tax treatment. The charge for current
tax also includes adjustments, where considered necessary, to provision for tax made in previous years arising from
assessments framed during the year for such years. The University measures its tax balances either based on the
most likely amount or the expected value, depending on which method provides a better prediction of the resolution of
the uncertainty. Current tax assets and tax liabilities are offset where the University has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
The University is allowed a tax credit equal to one hundred per cent of the tax payable, including minimum tax and final
taxes, under section 100C of the Income Tax Ordinance, 2001.
Deferred
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is not
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that, at the time of the transaction, affects neither accounting nor taxable surplus or deficit. Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the
reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred
income tax liability is settled.
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable surplus will be available against which the deductible temporary
differences, unused tax losses and tax credits can be utilised. Deferred tax assets and liabilities are offset where there
is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to
the same taxation authority.
Deferred tax is recognised in income and expenditure account, except to the extent that it relates to items recognised
in other comprehensive income or directly in fund balances. In this case, the tax is also recognised in other
comprehensive income or directly in fund balances, respectively.
Deferred tax has not been provided in these financial statements as the University's management believes that the
temporary differences will not reverse in the foreseeable future to the fact that the University is allowed a tax credit
equal to one hundred per cent of the tax payable, including minimum tax and final taxes, under section 100C of the
Income Tax Ordinance, 2001.
4.9 Operating fixed assets
Operating fixed assets are stated at historical cost less accumulated depreciation and any identified impairment loss.
Historical cost includes expenditure that is directly attributable to the acquisition of items.
Depreciation on all operating fixed assets is charged to income and expenditure account on a reducing balance
method, so as to write off the historical cost of an asset over its estimated useful life at the rates mentioned in note 5
after taking into account their residual values.
The assets' residual values arid useful lives are reviewed, at each financial year end, and adjusted if impact on
depreciation is significant. The University's estimate of the residual value of its operating fixed assets as at June 30,
2023, has not required any adjustment as its impact is considered insignificant.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount (note 4.12).
Subsequent costs are included in the assets' carrying amount or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the University and the cost of the
item can be measured reliably. All other repair and maintenance costs are included in the income and expenditure
account during the period in which they are incurred.
The gain or loss on disposal or retirement of an asset represented by the difference between the sale proceeds and
the carrying amount of the asset is recognized as an income or expense.
4.10 Intangible assets
4.10.1 Computer software and license fee
Computer software and license fee for the right of its use are stated at cost less accumulated amortization and any
identified impairment loss.
Amortization is charged to income and expenditure account on the reducing balance method so as to write off the cost
of the intangible asset over its estimated useful life at the rates mentioned in note 6.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount (note 4.12).
4.10.2 Cryptocurrency assets
The University accounts for its cryptocurrency assets, which are comprised of Stacks, Bitcoin and Ethereum, as
intangible assets with an indefinite useful life in accordance with International Accounting Standard (lAS) 38, Intangible
Assets. The University has ownership of and control over its cryptocurrencies and uses third-party custodial services to
store its cryptocurrencies. The University's cryptocurrency assets are initially recorded at cost. Subsequently, they are
measured at cost, net of any impairment losses incurred since acquisition.
The University determines the fair value of its cryptocurrency assets on a nonrecurring basis in accordance with IFRS
1 3, Fair Value Measurement, based on quoted (unadjusted) prices on the Coinbase Exchange operated by Coinbase
Global, Inc. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount. The recoverable amount is the higher of an asset's fair value
less costs of disposal and value in use. In determining if an impairment has occurred, the University considers the
price of relevant cryptocurrency asset quoted on the active exchange. If the carrying value of cryptocurrency asset
exceeds that price, an impairment loss has occurred with respect to that cryptocurrency asset in the amount equal to
the difference between its carrying value and such price.
Impairment losses recognized in the period in which the impairment occurs and are reflected in the University's Income
and expenditure account. The carrying value of cryptocurrency assets are written down to their fair value at the time of
impairment. Gains (if any) are not recorded until realised upon sale. In determining the gain to be recognized upon
sale, the University calculates the difference between the sale price and carrying value of the specific cryptocurrency
sold, at which point they are presented in the University's Income and expenditure account.
The income generated from investment of these cryptocurrencies is credited to the sponsored projects fund and
utilized for restricted purposes.
4.11 Capital work-in-progress
Capital work-in-progress is stated at cost less any identified impairment loss. All expenditure connected with specific
assets incurred during installation and construction period are carried under capital work-in-progress. These are
transferred to operating fixed assets as and when these are available for use.
4.12 Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in
use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible
reversal of the impairment at the end of each reporting period.
4.13 Investments
Investments intended to be held for less than twelve months from the reporting date or to be sold to raise operating
capital are included in current assets, all other investments are classified as non-current assets. Management
determines the appropriate classification of its investments at the time of the purchase and re-evaluates such
designation on a regular basis.
Investments made by the University are classified for the purpose of measurement into the following categories as
explained in note 4.14.
4.14 Financial assets
4.14.1 Classification
The University classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value [either through other comprehensive income (OCI') or through profit
or loss]; and
- those to be measured at amortised cost.
The classification depends on the University's business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in income and expenditure account or OCI.
For investments in equity instruments that are not held for trading, this will depend on whether the University has made
an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other
comprehensive income ('FVOCI).
The University reclassifies debt investments when and only when its business model for managing those assets
changes.
4.14.2 Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade date, being the date on which the
University commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash
flows from the financial assets have expired or have been transferred and the University has transferred substantially
all the risks and rewards of ownership.
4.14.3 Measurement
At initial recognition, the University measures a financial asset at its fair value plus, in the case of a financial asset not
at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the
financial asset. Transaction costs of financial assets carried at FVPL are expensed in income and expenditure
account.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows
are solely payments of principal and interest.
Debt instruments
Subsequent measurement of debt instruments depends on the University's business model for managing the asset
and the cash flow characteristics of the asset. There are three measurement categories into which the University
classifies its debt instruments:
I) Amortised cost: Assets that are held for collection of contractual cash flows, where those cash flows represent
solely payments of principal and interest, are measured at amortised cost. Interest income from these financial assets
is included in income using the effective interest rate method. Any gain or loss arising on derecognition is recognised
directly in income or expenditure. Impairment losses are presented as a separate line item in the income and
expenditure account.
ii) FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the
assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the
carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and
foreign exchange gains and losses, which are recognised in income or expenditure. When the financial asset is
derecognised, the cumulative gain or loss previously recognised in 001 is reclassified from equity to income or
expenditure. Interest income from these financial assets is included in other income using the effective interest
method. Impairment expenses are presented as a separate line item in the income and expenditure account.
iii) FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a
debt investment that is subsequently measured at FVPL is recognised in income or expenditure in the period in which
it arises.
Equity instruments
The University subsequently measures all equity investments at fair value. Where the University's management has
elected to present fair value gains and losses on equity investments in 001, there is no subsequent reclassification of
fair value gains and losses to income or expenditure following the derecognition of the investment. Dividends from
such investments continue to be recognised in income and expenditure account as income when the University's right
to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in the income and expenditure account.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported
separately from other changes in fair value.
4.14.4 Impairment of financial assets other than investment in equity instruments
The University assesses on a forward-looking basis the expected credit losses (ECL) associated with its financial
assets. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
The University applies general 3-stage approach for investments carried at amortised cost, deposits, loans, security
deposits, other receivables and bank balances i.e. to measure ECL through loss allowance at an amount equal to 12-
month ECL if credit risk on a financial instrument or a group of financial instruments has not increased significantly
since initial recognition.
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the
magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default
and loss given default is based on historical data adjusted by forward-looking information (adjusted for factors that are
specific to the counterparty, general economic conditions and an assessment of both the current as well as the
forecast direction of conditions at the reporting date, including time value of money where appropriate). As for the
exposure at default for financial assets, this is represented by the assets' gross carrying amount at the reporting date.
The University considers that a financial asset other than student loan, is in default when a contractual payment is 90
days past due and in case of a student loan when the contractual payment is 2 years past due from the date of
repayment of first instalment. The definition is based on the University's internal credit risk management policy.
The University recognises life time ECL on trade debts, using the simplified approach. The measurement of ECL
reflects:
- an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
- the time value of money; and
- reasonable and supportable information that is available at the reporting date about past events, current conditions
and forecasts of future economic conditions.
The University recognizes an impairment gain or loss in the income and expenditure account for financial assets with a
corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt
instruments that are measured at FVOCI, for which the loss allowance is recognised in other comprehensive income
and accumulated in the investment revaluation reserve, and does not reduce the carrying amount of the financial asset
in the statement of financial position.
The University writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and
has concluded there is no reasonable expectation of recovery. The assessment of no reasonable expectation of
recovery is based on unavailability of counterparty's sources of income or assets to generate sufficient future cash
flows to repay the amount. The University may write-off financial assets that are still subject to enforcement activity.
Subsequent recoveries of amounts previously written off will result in impairment gains.
4.15 Financial liabilities
All financial liabilities are recognized at the time when the University becomes a party to the contractual provisions of
the instrument. Financial liabilities at amortised cost are initially measured at fair value less transaction costs. Financial
liabilities at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed to
the income and expenditure account.
Financial liabilities, other than those at fair value through profit or loss, are subsequently measured at amortised cost
using the effective interest rate method.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. Where
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the
original liability and the recognition of a new liability, and the difference in respective carrying amounts is recognized in
the income and expenditure account.
4.16 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is reported in the financial statements only when
there is a legally enforceable right to set off the recognized amount and the University intends either to settle on a net
basis or to realize the assets and to settle the liabilities simultaneously.
4.17 Employee benefits
(i) Short term obligations
Liabilities for wages and salaries including non-monetary benefits that are expected to be settled wholly within twelve
months after the end of the period in which the employees render the related service are recognised in respect of
employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled. The liabilities are presented as current employee benefit obligations in the statement of
financial position.
(ii) Post employment benefits
The main features of the schemes operated by the University for its employees are as follows:
(a) Defined contribution plan - Provident Fund
There is an approved contributory provident fund for all permanent employees. Equal monthly contributions are made
by the University and the employees to the fund at the rate of 10 percent of the basic salary.
Retirement benefits are payable to the staff on completion of prescribed qualifying period of service as determined
under the rules of fund.
(b) Accumulating compensated absences
The University has a policy to provide short term employee benefits to its employees in the form of vesting
accumulating compensated absences. As per the University's policy, employees are entitled to 20 days of paid leaves
each year after completion of one year of service, depending on their years of service. The unused entitlement can be
carried forward subject to the condition that the total unused accumulated leaves shall not exceed the prescribed limit
i.e. 30 leaves. Any unused leaves in excess of the limit are lapsed and are not available for carry forward.
Accumulated balance of unavailed earned leaves up to 30 shall be encashable at the rate of gross salary after every
ten (10) years of continuous service.
Upon retirement, resignation, termination / dismissal of an employee's services, earned leave balance to the credit of
employee shall be paid at the rate of gross salary on the respective date.
4.18 Stores
Stores, except for those in transit, are valued principally at lower of cost and net realizable value. Cost is determined
using the weighted average method. Items in transit are stated at cost comprising invoice value plus other charges
paid thereon. If net realizable value is lower than the carrying amount, a write-down is recognised for the amount by
which the carrying amount exceeds its net realizable value.
4.19 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash at bank on current, saving and deposit accounts and other
short term highly liquid instruments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of change in value.
4.20 Creditors, accrued and other liabilities
Creditors and other liabilities are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. These are recognized initially at fair value and subsequently measured at amortized
cost using the effective interest method.
4.21 Provisions
Provisions for legal claims and make good obligations are recognised when the University has a present legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle
the obligation, and the amount can be reliably estimated.
Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a
whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same
class of obligations may be small.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-
tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The
increase in the provision to the passage of time is recognised as interest expense.
4.22 Contingent liabilities
Contingent liability is disclosed when:
-there is a possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non occurrence of one or more uncertain future events not wholly within the control of the University; or
-there is present obligation that arises from past events but it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with
sufficient reliability.
4.23 Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated
at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is
recognized in the income and expenditure account over the period of the borrowings using the effective interest
method.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or
liabilities assumed, is recognised in the income and expenditure account as other income or finance costs.
Borrowings are classified as current liabilities unless the University has an unconditional right to defer settlement of the
liability for at least twelve months after the reporting date.
4.24 Borrowing costs
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale,
are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or
sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are
recognised in the income and expenditure account in the period in which they are incurred.
4.25 Foreign currency transactions and translation
a) Functional and presentation currency
Items included in the financial statements of the University are measured using the currency of the primary economic
environment in which the University operates (the functional currency). The financial statements are presented in Pak
Rupees, which is the University's functional and presentation currency.
b) Transactions and balances
Foreign currency transactions are translated into Pak Rupees using the exchange rates prevailing at the dates of
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognized in the income and expenditure account.
4.26 Income recognition
Income is recognized when it is probable that the economic benefits associated with the transaction will flow to the
University and the amount of income can be measured reliably. Income is measured at the fair value of the
consideration received or receivable on the following basis:
a) Current Fund
- Tuition fees are recognized when the University satisfies a performance obligation by provision of specific academic
and non-academic courses to the students and the transaction price is apportioned to revenue over the period of
instruction.
- Admission and application processing fees are recognized as revenue when due.
- Cafeteria income is recognized as revenue when the goods or services are supplied to the customer.
Where services are being rendered, but are not complete at the end of the period, income is recognised with reference
to the stage of completion/degree of provision of the service, as determined on an appropriate basis for each contract.
Grants from NMF are recognized when approved by NMF. Other grants, gifts, and royalties on publications are
recognized as income on accrual basis when the ultimate collection is reasonably assured.
b) Endowment Fund
Grants as endowments by the University are recognised when the ultimate collection is reasonably assured and these
are credited to income. Income earned from the endowments is booked as a return on investments for the period.
C) Scholarship Fund
Grants for the purpose of providing scholarships and loans to students are credited to income and are recognised
C when the ultimate collection is reasonably assured.

d) Chair Fund
Grants are recognised when the ultimate collection is reasonably assured and are credited to income.
e) Sponsored Projects
Grant is recognized when conditions for its receipt have been complied with and there is a reasonable assurance that
the grant will be received. Grants received to carry out different projects are credited to income.
A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving
immediate financial support to the enterprise with no future related costs is recognized as income of the period in
which it becomes receivable.
On the conclusion of the projects, any balances lying to the credit of the fund account are transferred to the Current
Fund, provided there are no restrictions imposed by the donor.
f) Fixed Assets Fund
Fixed assets received as a grant are debited to the property, plant and equipment and intangibles account at fair value
and a corresponding amount credited to income.
4.27 Deferred contributions
Restricted contributions for which an appropriate restricted fund does not exist, are recognised as deferred
contributions under non-current liabilities in the Current Fund using the deferral method. These are recognised as
income in the same period or periods as the related expenses are recognised.
4.28 Expenses
Expenses are recognized in the income and expenditure account when incurred.
4.29 Contract asset and contract liability
A contract asset is recognised for the University's right to consideration in exchange for goods or services that it has
transferred to a customer. If the University performs by transferring goods or services to a customer before the
customer pays consideration or before payment is due, the University presents the amount as a contract asset,
excluding any amounts presented as a receivable.
A contract liability is recognised for the University's obligation to transfer goods or services to a customer for which the
University has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration, or the University has a right to an amount of consideration that is unconditional (i.e. a receivable),
before the University transfers a good or service to the customer, the entity shall present the contract as a contract
liability when the payment is made or the payment is due (whichever is earlier).
4.30 Rounding of amounts
All amounts disclosed in the descriptive notes to these financial statements have been rounded off to the nearest
thousand Rupees unless otherwise stated.
5. Operating fixed assets
Accumulated Depreciation! Accumulated Book value

Cost as at Additions! Cost as at depreciation (deletions)! depreciation as at Annual rate of
July 1, (deletions)! June 30, as at July adjustments as at June June 30, depreciation
2022 adjustments 2023 01, 2022 for the year 30, 2023 2023 %
Furniture and fixtures 884,579,915 65,956,286 931,880,251 704,224,807 63,954,342 750,670,409 181,209,842 30
(18,706,014) (17,539,544)
50,064 30,804
Computers 988,996,775 156,783,311 1,123,646,613 733,871,958 110,792,985 824,157,940 299,488,673 33.3

(22,133,473) (20,507,003)
Equipment 2,086,790,562 239,836,320 2,303,079,463 1,386,019,950 162,425,842 1,528,696,160 774,383,303 20

(23,547,419) (19,749,632)
Vehicles 37,269,347 2,694,020 39,895,862 18,917,687 4,074,299 22,925,238 16,970,624 20

(67,505) (66,748)
Books 150,947,787 6,934,404 157,832,127 112,000,911 8,571,526 120,541,633 37,290,494 20
(50,064) (30,804)
4,148,584,386 472,204,341 4,556,334,316 2,955,035,313 349,818,994 3,246,991,380 1,309,342,936

(64,454,411) (57,862,927)
Accumulated Depreciation/ Accumulated Book value

Cost as at Additions! Cost as at depreciation (deletions)! depreciation as at Annual rate of
July 1, (deletions)/ June 30, as at July adjustments as at June June 30, depreciation
2021 adjustments 2022 01, 2021 for the year 30, 2022 2022 %
Furniture and fixtures 800,995,941 89,294,216 884,579,915 650,513,285 58,997,406 704,224,807 180,355,108 30
(5,710,242) (5,285,884)
Computers 890,726,253 112,275,809 988,996,775 652,495,615 94,820,613 733,871,958 255,124,817 33.3

(14,005,287) (13,444,270)
Equipment 1,943,032,963 152,109,654 2,086,790,562 1,237,345,379 155,429,878 1,386,019,950 700,770,612 20

(8,356,791) (6,757,310)
4,736 2,003
Vehicles 34,175,531 6,569,730 37,269,347 18,367,432 3,563,410 18,917,687 18,351,660 20

(3,475,914) (3,013,155)
Books 143,115,886 7,836,637 150,947,787 103,294,107 8,708,807 112,000,911 38,946,876 20
(4,736) (2,003)
3,812,046,574 368,086,046 4,148,584,386 2,662,015,818 321,520,114 2,955,035,313 1,193,549,073

(31,548,234) (28,500,619)
5.1 The depreciation for the year has been charged to Fixed Assets Fund.
5.2 Followng assets are sponsored to LUMS by various donors. The title of these assets is not in the name of LUMS. Transfer of the title to LUMS is subject to the discretion of donors at the completion of project term.
2023 2022
Accumulated Accumulated
Cost Book Value Cost Book Value
depreciation depreciation
Rupees Rupees Rupees Rupees Rupees Rupees
Furniture and fixtures 127,669,853 98,482,681 29,187,172 126,293,548 86,432,109 39,861,439

Computers 156,670,400 104,387,665 52,282,735 137,948,649 83,654,764 54,293,885
Equipment 795,389,465 541,093,739 254,295,726 756,245,518 481,469,796 274,775,722
1,079,729,718 743,964,085 335,765,633 1,020,487,715 651,556,669 368,931,046
5.3 Following assets have been contributed by various donors to LUMS:

2023 2022
Accumulated Accumulated
Cost Book Value Cost Book Value
depreciation depreciation
Rupees Rupees Rupees Rupees Rupees Rupees
Furniture and fixtures 58,092,107 49,162,257 8,929,850 51,369,558 47,147,938 4,221,620

Computers 18,177,370 15,729,862 2,447,508 16,185,668 12,945,354 3,240,314
Equipment 54,411,821 30,392,866 24,018,955 49,170,733 24,392,272 24,778,461
130,681,298 95,284,985 35,396,313 116,725,959 84,485,564 32,240,395
6. Intangible assets
The University's intangible assets comprise of the following:

2023 2022
Rupees Rupees
Computer software and license - Note 6.1 32,524,549 29,518,456

Cryptocurrency assets - Note 6.2 427,346,885 -
459,871,434 29,518,456
6.1 The reconciliation of the carrying amount is as follows:
Accumulated Accumulated Book value

Cost as at Cost as at amortization Amortization amortization as at Annual rate of
July 01, June 30, as on July 01, for the as on June 30, June 30, amortization
2022 Additions 2023 2022 year 2023 2023
Computer software and
license 234,376,097 14,841,969 249,218,066 204,857,641 11,835,876 216,693,517 32,524,549 33.3
Accumulated Accumulated Book value
Cost as at Cost as at amortization Amortization amortization as at Annual rate of
July01, June 30, as on July01, for the as on June 30, June 30, amortization
2021 Additions 2022 2021 year 2022 2022 %
Computer software and
license 220,371 910 14,004,187 234,376,097 195,508,374 9,349,267 204,857,641 29,51 8,456 33.3
6.1.1 The amortization for the year has been charged to Fixed Assets Fund.
6.2 These cryptocurrency assets comprise of the following:

Stacks Bitcoin Ethereum Total
- Note 6.2.3
Approximate number of assets held 4,863,009 3 10
Carrying values Rupees 403,974,175 19,023,908 4,348,802 427,346,885
6.2.1 A grant agreement dated January 11, 2021 between the University and Blockstack PBC (Blockstack') was entered into, according to which, Blockstack had agreed to grant five (5) million stacks cryptocurrency to
LUMS department of Computer Science for the purpose of supporting research and education of applications and systems for a decentralized internet and cryptocurrencies specifically related to Bitcoin and Stacks. Out
of these 5 million stacks, 4.9 million stacks have been transferred to the University's wallet upto the end of this year which have been recorded at their transfer-date fair values available on Coinbase Exchange
operated by Coinbase Global, Inc.
The University has invested these Stacks through third-party custodial services, generating returns in the form of Bitcoins. Of these Stacks, the University sold some of the Stacks on Coinbase Exchange and acquired
ten Ethereum and 9,884 USD as disclosed in note 15. No cash transactions took place and all trading activities were conducted with cryptocurrency assets. The management considers that there is no foreseeable limit
to the period over which these cryptocurrency assets are expected to generate cash inflows and are therefore determined to have indefinite useful lives. Consequently, no amortisation has been charged in these
financial statements.
6.2.2 No impairment is identified as a result of annual impairment review performed as of the reporting date. The fair values of the cryptocurrericy assets were determined using the readily available quoted prices
(unadjusted) on Coiribase Exchange. This is a level 1 measurement as per the fair value hierarchy set out in note 27.2.
2023 2022
6.2.3 The reconciliation of the carrying amount is as follows: Rupees Rupees
Opening cost
Recognition of grant - Note 19 408,704,395
Sale of Stacks (4,730,220)
Purchase of Ethereum 4,348,802
Bitcoins earned from investment - Note 21 19,023,908
Carrying value 427,346,885
6.2.4 The brief characteristics of the cryptocurrency assets held by the University are as follows:
Stacks: Stacks is a Bitcoin Layer for smart contracts; it enables smart contracts and decentralized applications to use Bitcoin as an asset and settle transactions on the Bitcoin blockchain.
Bitcoin: Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them.
Ethereum: Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. Ethereum works as a platform for numerous other cryptocurrencies, as well as for the execution of
decentralized smart contracts.
Current Endowment Scholarship Chair Sponsored 2023 2022
Fund Fund Fund Fund Projects Total Total
7. Capital work-in-progress Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Advances for equipment 3353920 2,108,514 31,123 1,269,441 6,762,998 19,982,231

Advances for computers 8,025,289 - - 8,025,289 8,291,638
Advances for vehicles - - - 2,234,000
Advances for furniture and fixtures - 2,880,713
Intangible assets under development - 762,532
11,379,209 2,108,514 31,123 1,269,441 14,788,287 34,151,114
2023 2022
Total Total
The reconciliation of the carrying amount of capital work-in-progress is as follows: Rupees Rupees
Opening balance 34,151,114 32,998,195

Additions during the year 254,325,884 181,781,529
288,476,998 214,779,724
Transfers during the year (273,688,711) (180,628,610)
Closing balance 14,788,287 34,151,114

8. Investments Rupees Rupees Rupees Rupees Rupees Rupees Rupees
At amortised cost - note 8.1 738,944,563 1,443,062,343 2,182,006,906 2,495,169,511

At fair value through profit or loss - note 8.2 109,812,945 374,819,768 484,632,713 1,147,140,256
848,757,508 1,817,882,111 2,666,639,619 3,642,309,767
Current maturity shown under current assets (243,655,144) (618,929,116) (862,584,260) (619,713,048)
605,102,364 1,198,952,995 1,804,055,359 3,022,596,719
8.1 At amortised cost
Pakistan Investment Bonds - note 8.1.1 678,994,563 1,258,062,343 - 1,937,056,906 1,680,496,463

Term finance certificates - note 8.1.2 59,950,000 185,000,000 - 244,950,000 194,960,000
738,944,563 1,443,062,343 - 2,182,006,906 1,875,456,463
8.1.1 This represents investments in Pakistan Investment Bonds. These carry mark-up at coupon rates ranging from 7% to 18.55% (2022: 7% to 15.40%) per annum.
8.1.2 This represents investments in term finance certificates. These carry mark-up at rates ranging from 9.03% to 23.34% (2022: 8.96% to 16.20%) per annum.

8.2 At fair value through profit or loss
Shares of The Hub Power Company Limited - note 8.2.1 - 20,282,570 20,282,570 19,871,555
Units of
UBL Fund Managers mutual funds - note 8.2.2 14 - - 14 386,928,003
Alfalah GHP mutual funds - note 8.2.2 77,425,558 43,617,788 121,043,346 120,857,798
ABL Fund Managers mutual funds - note 8.2.2 7,616,582 127,866,273 - - 135,482,855 124,873,814
Al-Meezan mutual funds - note 8.2.2 - 56,475,004 56,475,004 161,614,648
MCB Arif Habib mutual funds -note 8.2.2 - 107,919,046 107,919,046 245,972,186
NBP mutual funds - note 8.2.2 12,196,167 6,100,138 18,296,305 65,689,034
HBL Fund Managers mutual funds - note 8.2.2 12,574,624 12,558,950 25,133,574 21,333,218
109,812,945 374,819,769 484,632,714 1,147,140,256
8.2.1 This represents 291,500 (2022: 291,500) shares, measured at market value of Rs 69.58 (2022: Rs 68.17) per share, of The Hub Power Company Limited.
8.2.2 These represent portfolios maintained with various asset management companies.

9. Long term loans, advances and security deposits
Loans to students - note 9.1 478,574,014 12,691,564 12,630,165 - 503,895,743 448,795,209

Long term security deposits - note 9.2 42,809,777 1,961,667 44,771,444 45,243,798
Advances to employees 22,714 22,714 22,714
521,406,505 12,691,564 12,630,165 1,961,667 548,689,901 494,061,721
Less: Loss allowance - note 13.1 47,456,115 3,941,159 1,914,488 53,311,762 51,885,000
473,950,390 8,750,405 10,715,677 1,961,667 495,378,139 442,176,721
Less: Current portion of - note 13
loans to students - net
of impairment allowance 113,401,357 5,070,376 3,306,991 121,778,724 80,092,245
360,549,033 3,680,029 7,408,686 1,961,667 373,599,415 362,084,476
9.1 These represent un-secured interest free loans given to students. Loans over and above Rs 150000 are repayable in fixed number of installments (60) within the specified period of five
years after six months from completion of course. Loans up to Rs 150,000 are required to be repaid in fixed number of installments (36) by the students within specified period of three years after six
months from completion of course. These loans are measured at amortised cost using interest rates ranging from 14% to 27% (2022: 14%) per annum for a similar financial instrument.
9.2 These have not been carried at amortised cost as the effect of discounting is not considered material.
10. Employee benefits obligations
This represents accumulating compensated absences and its reconciliation is as follows:

2023 2022
Rupees Rupees
Opening balance 91,384,488 83,083,395

Provision for the year 27,230,595 20,275,999
Payments during the year (15,099,297) (11,974,906)
Closing balance 103,515,786 91,384,488
11. Long term security deposits
These represent securities deposited by students at the time of admission to the University. These securities are refundable upon the completion of the program. These have not been carried at
amortised cost as the effect of discounting is not considered material.
2023 2022
Rupees Rupees
Security deposits 167,915,100 153,430,300

Less: current maturity classified in current liabilities - note 16 76,996,200 74,773,200
90,918,900 78,657,100
12. Deferred contributions
This represents the following contributions:
- unutilised balance of donations made by Babar Ali Foundation, a related party (affiliate) for meeting operational expenses of Project LUMSx; and
- unutilised balance of donations made by Babar All Foundation, a related party (affiliate) and various other donors for prevention of COVI D-1 9 (Corona virus).
The movement in deferred contributions during the year is as follows:
Opening balance 16,411,038 35,090,236

Receipts during the year 72,672,910 119,000,000
Amortization during the year - recognised in grants income of current fund (76,555,775) (137,679,198)
Closing balance 12,528,173 16,411,038
13. Loans, advances, deposits, prepayments Rupees Rupees Rupees Rupees Rupees Rupees Rupees
and other receivables
Advances to:
Employees 46,355,089 500,000 3,439,036 50,294,125 39,220,050
Suppliers 58,284,768 5,974,820 64,259,588 37,416,658
Prepayments 51,421,016 27,140 50,790 51,650 51,550,596 38,145,800
Accrued return on investments 18,771,676 72,482,432 6,895,342 98,149,450 35,129,424
Fee receivable 34,355,875 - 34,355,875 181,203,324
Receivable against REDC programs
and other projects 66,497,543 1,458,620 67,956,163 25591,289
Other receivables 19,711,680 53,292 15,163,368 44,668 34,973,008 23,855,050
Current portion of long term loans
and advances: - note 9
Loans to students 149,004,500 8,262,386 4,747,757 162,014,643 118,960,102
444,402,147 80,825,250 5,247,757 15,214,158 17,864,136 563,553,448 499,521,697
Loss allowance - note 13.1.1 (35,603,143) (3,192,009) (1,440,766) (40,235,918) (38,867,857)

408,799,004 77,633,241 3,806,991 15,214,158 17,864,136 523,317,530 460,653,840
2023 2022
13.1 Loss allowance Rupees Rupees
The reconciliation of loss allowance is as follows:
Balance as at beginning of the year 51,885,000 52,666,893

Charge for the year 3,596,479 1,718,639
Reversals during the year (2,169,717) (2,500,532)
Closing balance - note 13.1.1 53,311,762 51,885,000
13.1.1 The closing balance includes loss allowance against current portion of loans amounting to Rs 40.236 million (2022: Rs 38.868 million).
Current Endowment Chair 2023 2022
Fund Fund Fund Total Total
14. Short term investments Rupees Rupees Rupees Rupees Rupees
At amortised cost
Term deposit receipts - PKR - note 14.1 10,000,000 175,000,000 - 185,000,000 10,000,000
Term deposit receipts - USD - note 14.2 1,030,257,000 - - 1,030,257,000 367,500,600
Treasury Bills 954,794,542 1,883,462,700 - 2,838,257,242 1,165,510,029
1,995,051,542 2,058,462,700 4,053,514,242 1,543,010,629
14.1 This represents investments in term deposit receipts of local currency. These carry mark-up at rates ranging from 15% to 19.25% (2022: 6.75% to 12.11%) per annum.
14.2 This represents investments in term deposit receipts of foreign currency. These carry mark-up at rates ranging from 6% to 6.55% (2022: 6.55%) per annum.

15. Cash and bank balances Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Cash in hand 2,969,299 2,969,299 2,652,490

- USD 10,000 (2022: USD 10,000)
- PKR 107,474 (2022: PKR 610,820)
Balances at bank
In current accounts 667,787 70,064,705 186,168,474 18,005,995 470,875,321 745,782,282 744,835,022
- USD 50,588.07 (2022: USD 50,573.22)
- PKR 731,304,858 (2022: PKR 729,430,527)
In savings accounts 13,151,150 5,802,040 13,362,644 41,445,918 962,349,047 1,036,110,799 569,517,842
- USD 1,540,317.05 (2022: USD 1,169,546.53)
- JPY 1.53 (2022: JPY 1.53)
- PKR 595,299,014 (2022: PKR 330,735,034)
Balance at Coinbase International Exchange

- USD 9,885 (2020: nil) 2,457,042 2,457,042
16,788,236 75,866,745 199,531,118 59,451,913 1,435,681,410 1,787,319,422 1,317,005,354
15.1 Included in savings accounts are Rs 59.930 million (2022: Rs 66.788 million) which are under lien against bank guarantees and letters of credit as referred to in note 18.
15.2 Furthermore, included in savings accounts is an amount of Rs 2.663 million (2022: Rs 2.889 million) in an escrow account with MCB Bank Limited (MCB). Under the terms of agreement
between MCB and LUMS, the University has deposited 6% of each tranche of the finance extended by MCB to students of the University. MCB has the right to utilize this amount for the
purpose of recovery in case of default by any student.
16. Creditors, accrued and other liabilities Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Advance tuition and other fees - notes 16.1 to 16.4 1,139,023,897 - - 1,139023,897 890,051,843
Creditors 145,484,002 1,888,559 4,484 20,484,435 167,861,480 88,919,742
Accrued liabilities 80,235,101 66,900 (18,732) 14,180,337 94,463,606 103,148,449
Advances against executive
development programmes - notes 16.1 to 16.4 38015,064 - 38,015,064 34,289,292
Payable to student societies 1,721,837 24,140,813 25,862,650 23,415,146
Provident fund payable 23,116,742 - 23,116,742 8,524,352
Employee fund payable 11,538,025 11,538,025 12,294,213
Current portion of
long term security deposits - note 11 76,996,200 - 76,996,200 74,773,200
Shortterm security deposits 2,338,697 - 2,100,000 4,438,697 2,896,447
Withholding taxes payable 57,208,811 1,687 - 1,443,656 58,654,154 14,505,602
Other liabilities 66,925,930 34,498 1,748 263,773 6,634,001 73,859,950 46,062,147
1,642,604,306 1,991,644 6,232 245,041 68,983,242 1,713,830,465 1,298,880,433
2023 2022
Total Total
16.1 The category wise breakup of contract liabilities is as follows: Rupees Rupees
16.1.1 Advance tuition and other fees

Tuition fees 1,099,572,002 878,296,777
Other fees 39,451,895 11,755,066
1,139,023,897 890,051,843
16.1.2 Advances against executive development programmes 38,015,064 34,289,292

1,177,038,961 924,341,135
16.2 Revenue recognised during the year that was included in the contract liability balance at the beginning of the year is as follows:
16.2.1 Advance tuition and other fees
Tuition fees 878,296,776 624,794,841

Other fees 11,755,066 514,150
890,051,842 625,308,991
16.2.2 Advances against executive development programmes 34,289,292 26,392,384

924,341,134 651,701,375
16.3 Contract liabilities have increased due to increase in tuition fee and increase in number of new admissions.
16.4 All contracts are for periods of one year or less. As permitted under IFRS 15, the transaction price allocated to these unsatisfied contracts is not disclosed.
17. This represents the scholarships given prior to receipt of funds from donors resulting in utilization of resources of the Current Fund. While there is a commitment from the donors to pay
these amounts, the timing and amount of these receipts is not certain. Therefore, based on prudence, the funds receivable are recognized only when the collection becomes certain.
18. Contingencies and commitments
18.1 Contingencies
(i) The University has provided bank guarantee of Rs 18.0 million (2022: Rs 18.0 million) in favour of Sui Northern Gas Pipelines Limited (SNGPL) on account of payment of gas dues, Rs
1.200 million (2022: Rs 0.802 million) to Pakistan State Oil Company Limited (PSO) on account of fuel cards, Rs 8.50 million (2022: Rs 8.50 million) to Oursun Solar Power Limited and Rs 7.0
million (2022: Rs 7.0 million) to Nizam Power (Private) Limited on account of any damage to solar power panels installed at LUMS. These guarantees have been secured by lien on savings
account balance as mentioned in note 15.1, for an amount equal to 110% of the amount of guarantee.
(ii) Walton Cantonment Board has levied property tax amounting to Rs 1,425.784 million on buildings under LUMS occupation for the years from 1993-94 to 2017-18. On March 15, 2018,
LUMS filed a writ petition before the Lahore High Court ('LHC') challenging the orders dated November 2, 2011 and April 26, 2017 passed by the Director General, Military Lands and Cantonments
whereby LUMS was required to pay property tax. The writ petition was filed on the grounds that LUMS premises are exempt from levy of property taxes under section 99(2)(b) of the Cantonment
Act, 1924. On March 16, 2018, the LHC granted an ad interim relief to LUMS. Since then the case is pending for hearing. Based on the advice of the University's legal counsel, management
considers that there are meritorious grounds to defend the University's stance and the outcome of the case is expected to be favourable, therefore, no provision has been made in these financial
statements for the demands aggregating to Rs 1,425.784 million (2022: Rs 1,425.784 million).
18.2 Commitments
Aggregate facilities available for opening letters of credit and for letters of guarantee from financial institutions aggregate to Rs 150 million (2022: Rs 75 million) and Rs 50 million (2022: Rs 50
million) respectively. The amount utilised at June 30, 2023, for letters of credit was Rs 25.230 million (2022: Rs 32.486 million) and Rs 34.700 million (2022: Rs 34.302 million) for letters of
guarantee.
Commitments in respect of contracts for capital expenditure amount to Rs 57.677 million (2022: Rs 100.601 million).

Fund Fund Fund Fund Projects Fund Total Total
19. Contributions Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
These are from the following major sources:

Government 20,068,504 100,000,000 30,514,563 - 522,458,646 673,041,713 223,542,767
Foundations 63,291,024 4,250,069 96,589,758 38,380,495 558,824,348 761,335,694 216,218,866
Corporate contributors 7,204,949 118,589,893 464,659,759 11,917,218 602,371,819 231,552,265
Individuals 14,705,110 55,164,571 74,183,747 - 144,053,428 106,711,091
Other Not-For-Profit organizations 11,951,127 4,855,276 43,589,372 60,395,775 438,390,807
117,220,714 159,414,640 324,733,237 38,380,495 1,589,532,125 11,917,218 2,241,198,429 1,216,415,796
20. Miscellaneous income Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Hostel and faculty apartment income 410,751,846 410,751,846 292,504,933

Cafeteria income 252,833,478 252,833,478 149,733,759
Gain on sale of fixed assets - - 3,372,334
Gain on sale of stacks - 2,075,624 2,075,624 -
Test and processing fee 66,969,200 66,969,200 49,480,400
Sponsored projects income 225,094 225,094 -
Societies sponsorship income 42,688,231 42,688,231 14,875,578
Rental inconie 7,477,267 7,477,267 5,917,329
Liabilities no longer payable written back 851,347 - 851,347 251,571
Other income 302,062,122 48,261 25,816,803 327,927,186 233,868,996
Net impairment gain on financial and contract assets - 1,103,656
Unwinding income on long term loans to students 40,085,813 1,288,914 1,047,560 42,422,287 31,349,653
1,081,256,167 1,337,175 1,047,560 70,580,658 1,154,221,560 782,461,209
21. Return on investments and term deposits
Interest earned on savings accounts 81,736,174 25,983,330 - 454,640 108,174,144 78,645,715

Bitcoins earned from investment of Stacks - - 19,023,908 19,023,908 78,645,715
Interest earned on investments
carried at amortised cost 252,238,915 427,923,332 680,162,247 419,959,229
Dividend income on investments
carried at FVPL 51,362,812 75,486,155 126,848,967 50,693,632
Gain on disposal of investments
carried at FVPL 363,827 - 363,827 2,618
Fair value gain on investments at FVPL 198,210 936,694 1,134,904 1,516,747
385,899,938 530,329,511 454,640 19,023,908 935,707,997 629,463,656
22. This amount, being last year's surplus, was transferred from the Current Fund to Endowment Fund as per the management's decision.
23. This represents the total amount of fixed and intangible assets capitalized during the year other than donated assets. Capital expenditure made through Endowment, Chair and
Sponsored Projects was made for the purpose of these funds and is in line with the restrictions imposed on these funds.
2023 2022
24. Cash and cash equivalents Rupees Rupees
Cash and bank balances - note 15 1,787,319,422 1,317,005,354

Term deposit receipts 1,040,257,000 377,500,600
Treasury bills 2,684,617,966 384,566,384
5,512,194,388 2,079,072,338
25. Remuneration of key management personnel
Key management personnel are the persons having authority and responsibility for planning, directing and controlling the activities of the University, directly or indirectly. The aggregate amounts
charged in the financial statements for the year for remuneration, including certain benefits, to the key management personnel of the University are as follows:
2023 2022
Rupees Rupees
Remuneration 153,342,643 112,724,053

Housing rent 44,543,770 34,799,136
Medical expenses 7,918,892 11,272,403
Utilities 44,143,202 30,030,505
Other allowances 29,735,671 12,196,410
279,684,178 201,022,507
26. Transactions with related parties
26.1 The related parties comprise of affiliates, controlling organisation (NMF), Board of Trustees, key management personnel and post employment benefit plans. Affiliates are entities which
have a person common on their Board of Directors/ Governors/Trustees with the University. The University in the normal course of business carries out transactions with various related parties.
Significant transactions and balances with related parties other than those disclosed elsewhere in the financial statements are as follows:
2023 2022
Rupees Rupees
Relationship with the University Nature and transaction
Employee benefit plan Provident fund contribution 134,074,013 113,086,890

Affiliate Contribution for buildings paid to NMF 300,000,011 367,430,794
Affiliate Payments made on behalf of NMF by LUMS 19,909,380 18,025,828
Affiliate Goods (scrap) sold 50,400
Affiliates Grants received from significant influenced organization 172,596,179 208,012,346
Affiliates Services received 143,132,907 96,557,307
Affiliates Services provided 46,195,690 6,252,000
Affiliates Goods purchased 41,646,390 112,383,635
Relationship with the University Nature and balance
Employee benefit plan Provident fund payable 23,116,742 8,524,352

Affiliate Due from/(to) NMF 9,542 (109,530)
Affiliates Payables in respect of services availed by the University 10,785,662 1,596,192
Affiliates Payable in respect of goods purchased by the University 238,112 481,119
Affiliates Receivable in respect of services rendered by the University 2,340,807 478,877
26.2 The above transactions with related parties have been conducted in the normal course of business on mutually agreed terms and conditions. The land, buildings and certain equipment of
NMF have been provided to LUMS free of charge. The estimated fair value of the annual rental of such land, buildings and equipment is Rs 1,257 million (2022: Rs 1,032 million). The latest
estimate for fair value of annual rentals was carried out in June 2023 by an independent valuer.
27. Financial risk management
27.1 Financial risk factors
The University's activities expose it to a variety of financial risks: market risk (including currency risk, other price risk
and interest rate risk), credit risk and liquidity risk. The University's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.
Risk management is carried out by the University's Management Committee (the Committee) under policies approved
by the Board of Trustees (the 'Board'). The University's Management Committee evaluates and hedges financial risks.
The Board provides written principles for overall risk management, as well as written policies covering specific areas,
such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity. All treaury related
transactions are carried out within the parameters of these policies.
The University's overall risk management procedures to minimise the potential adverse effects of financial market on
the University's performance are as follows:
(a) Market risk
(i) 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. Currency risk arises mainly from future commercial transactions or receivables and
payables that exist to transactions in foreign currencies.
The University is exposed to currency risk arising from various currency exposures. Currently, the University's foreign
exchange risk exposure is restricted to cash and bank balances, investments and amounts receivable from / payable
to the foreign entities.
2023 2022
USD USD
Cash and bank balances 1,587,226 1,220,120

Short term investments 3,600,000 1,800,000
Trade creditors (12,094) (13,194)
Net asset exposure 5,175,132 3,006,926
At June 30, 2023, if the Rupee had weakened / strengthened by 10% against the US Dollar with all other variables
held constant, surplus for the year would have been Rs 148.216 million (2022: Rs 61 .596 million) higher/lower, mainly
as a result of foreign exchange gains/losses on translation of US Dollar-denominated financial assets and liabilities.
The University is not exposed to any significant currency risk on account of other foreign currencies.
(ii) Other price risk
Other price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those
changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar
financial instruments traded in the market.
The University is exposed to equity securities price risk because of investments held by the University and classified
as at fair value through profit or loss. Material investments within the portfolio are managed on an individual basis and
all buy and sell decisions are approved by the Committee. The primary goal of the University's investment strategy is to
maximise investment returns.
The University's certain investments in equity instruments of other entities are publicly traded on the Pakistan Stock
Exchange Limited.
The table below summarises the impact of increases / decreases of the KSE-1 00 index on the University's surplus for
the year and on fund balance. The analysis is based on the assumption that the KSE-100 index had increased /
decreased by 10% with all other variables held constant and all the University's equity investments moved according to
the historical correlation with the index:
Impact on surplus for the year
2023 2022
Rupees Rupees
Pakistan Stock Exchange Limited 2,028,257 1,987,156
As at June 30, 2023, if the market value of Fund's investment in units held in mutual funds had been 10%
higher/lower, with all other variables held constant, the impact would have been as follows:
Impact on surplus for the year
2023 2022
Rupees Rupees
Mutual funds
46,435,014 112,726,870
Surplus for the year would increase / decrease as a result of gains I losses on investments classified as at fair value
through profit or loss. As at June 30, the University does not hold any investments classified as at fair value through
other comprehensive income.
The University is not exposed to commodity price risk since it does not hold any financial instrument based on
commodity prices.
(iii) Interest rate risk
Interest rate risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.
The University's interest rate risk arises from its investments in Term Finance Certificates and Pakistan Investment
Bonds. These investments at variable rates expose the University to cash flow interest rate risk.
The University analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into
consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios,
the University calculates the impact on surplus or deficit of a defined interest rate shift. The scenarios are run only for
C liabilities that represent the major interest-bearing positions.

At the reporting date, the interest rate profile of the University's interest bearing financial instruments was:
2023 2022
Rupees Rupees
Fixed rate instruments:
Financial assets
1,036,110,799 569,517,842
Bank balances - savings accounts
1,669,091,027 1,633,983,956
Investments
2,705,201,826 2,203,501,798
Financial liabilities
2,705,201,826 2,203,501,798
Net asset exposure
Floating rate instruments:
Financial assets
512,915,879 861,185,555
Investments
Financial liabilities
512,915,879 861,185,555
Net asset exposure
Fair value sensitivity analysis for fixed rate instruments
The University does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change in interest rate at the reporting date would not affect income or expenditure of the University.
Cash flow sensitivity analysis for variable rate instruments
The University does not account for any variable rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change in interest rate at the reporting date would not affect income or expenditure of the University.
(b) Credit risk
Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation.
Credit risk of the University arises from deposits with banks and other financial institutions, as well as its investments in
various mutual funds. The management assesses the credit quality of the counterparties, taking into account their
financial position, past experience and other factors. For banks and financial institutions, only independently rated
parties with a strong credit rating are accepted.
(I) Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit
risk at the reporting date was as follows:
2023 2022
Rupees Rupees
Investments 6,699,871,291 5,165,448,841
Long term loans, advances and security deposits 373,599,415 362,084,476
Loans, advances, deposits and other receivables 357,213,221 345,871,332
Due from NMF 9,542
Balances with banks 1,784,350,123 1,314,352,864
9,215,043,592 7,187,757,513
(ii) Impairment of financial assets
The University's financial assets are subject to the expected credit losses method. While deposits, loans, security
deposits, other receivables, investments carried at amortised cost and bank balances are subject to the ECL method
of IFRS 9, the identified impairment loss as at June 30, 2023 was immaterial and hence has not been accounted for.
Loans to Students
The University applies the IFRS 9 general 3-stage approach to measuring expected credit losses which uses a lifetime
expected loss allowance for loans disbursed to students.
The impairment methodology applied depends on whether there has been a significant increase in credit risk. The
University applies general 3-stage approach to measure ECL through loss allowance at an amount equal to 12-month
or life time ECL based on the variation in credit risk.
For 12-months ECL, probability of credit loss is calculated on the basis of recoverability trend of amount due from
students in the past 10 years. However, for lifetime ECL, 100% of the loan amount, against which there were no
recoveries in the last three years, is provided for.
On that basis, the loss allowance as at June 30, 2023 has only been accounted for in respect of loans to students.
(iii) Credit quality of financial assets
The credit quality of financial assets that are neither past nor impaired can be assessed by reference to external
credit ratings (if a fund is unrated, credit rating of the asset management company) or to historical information about
counterparty default rate:
Rating Rating
Short Long Agency 2023 2022
term term
Bank balances and deposits: Rupees Rupees
Allied Bank Limited Al+ w PACRA 976,477,656 472,115,383

Faysal Bank Limited Ai+ AA PACRA 958,i 82,893 299,205,469
Askari Bank Limited Al + AA+ PACRA 86,355,479 79,380,416
Bank Alfalah Limited Al+ AA+ PACRA i,06i 674 1,169,306
JS Bank Limited Al + AA- PACRA 2,152,104 877,587
MOB Bank Limited Al + w PACRA 6,414,600 7,844,976
United Bank Limited A-i + AAA V's 228,278,984 122,053,523
Meezan Bank Limited A-i + AAA V'S 214,764,628 83,481,776
Habib Bank Limited A-i + w V's 15,520,530 12,900,268
Standard Chartered Bank Pakistan Limited Ai+ AA PACRA 10,828,250 10,460,712
National Bank of Pakistan A-i + V's 184,232,710 168,863,066
NRSP Microfinance Bank Limited A2 A- PACRA 1,595 1,432
Al Baraka Bank Limited A-i A+ PACRA 108,561 101,735
Habib Metropolitan Bank Limited Al+ AA+ PACRA 117,963 102,238
Mobilink Microfinance Bank Limited Al A PACRA 3,263 2,904
Telenor Microfinance Bank Limited Al A PACRA 208,055 196,946
Samba Bank Limited Al AA PACRA 753,730 101,433,896
Dubai Islamic Bank Pakistan Limited A-1 + AA VIS 121,283 114,686
Bank Al Habib Limited Al + w PACRA 311,566,123 326,468,036
2,997,150,081 1,686,774,355
Rating Rating
Short Long Agency 2023 2022
term term
Units of mutual funds: Rupees Rupees
ABL Islamic Income Fund A+(f) VIS 9,566,431

ABL Cash Fund AA+(f) V15 135,482,855 115,307,382
Alfalah GHP Income Fund AA-(f) PACRA 2,478
Alfalah GHP Islamic Stock Fund AM2++ PACRA 58,270,183 57,544,548
Alfalah GHP Stock Fund AM2++ PACRA 62,773,163 63,310,747
Alfalah GHP Money Market Fund AA+(f) PACRA 25
Alhamra Islamic Stock Fund AM1 PACRA 35,694,730
MOB Cash Management Optimizer AA+(f) PACRA 107,919,046 210,277,456
Meezan Rozana Amdani Fund AM1 PACRA 56,475,004 161,383,802
Meezan Islamic Fund (MIF) AMi PACRA 230,846
NBP Islamic Money Market Fund AA(f) PACRA 49,457,932
NAFA Money Market Fund AA(f) PACRA 18,296,305 16,231,102
UBL Stock Advantage Fund AMi V15 - 2,124,276
UBL Liquidity Plus Fund AA+(f) V15 14 314,388,069
UBL Al Ameen Islamic Cash Fund AA+(f) VIS 68,929,027
UBL Al Ameen Islamic Stock Fund AA+(f) VIS 1,486,631
HBL Cash Fund AA+(f) V15 25,133,575 21,333,219
464,350,145 1,127,268,701
Due to the University's long standing business relationships with these counterparties and after giving consideration
to their strong financial standing, management does not expect non-performance by these counter parties on their
obligations to the University. Accordingly, the credit risk is minimal.
(c) Liquidity risk
Liquidity risk represents the risk that the University shall encounter difficulties in meeting obligations associated with
financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an
adequate amount of committed credit facilities. The University's approach to managing liquidity is to ensure that, as far
as possible, it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable loss or risking damage to the University's reputation. The University manages liquidity
risk by maintaining sufficient cash and the availability of funding through an adequate amount of donor funding.
Management monitors the forecasts of the University's cash and cash equivalents (note 24 to these financial
statements) on the basis of expected cash flows. This is generally carried out in accordance with practice and limits set
by the University. In addition, the University's liquidity management policy involves projecting cash flows in each
quarter and considering the level of liquid assets necessary to meet its liabilities, monitoring statement of financial
position liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.
The following are the contractual maturities of financial liabilities as at June 30, 2023 and June 30, 2022:
Total
Less than One to five More than five Carrying
contractual
one year years years amount
cashflows
Rupees
At June 30, 2023
Long term security deposits 90,91 8,900 90,918,900 90,918,900
Current portion of long
term security deposits 76,996,200 76,996,200 76,996,200
Creditors, accrued and
other liabilities 459,795,304 459,795,304 459,795,304
536,791504 90,918,900 627,710,404 627,710,404
At June 30, 2022

Long term security deposits 78,657,100 78,657,100 78,657,100
Current portion of long
term security deposits 74,773,200 74,773,200 74,773,200
Creditors, accrued and
other liabilities 299,766,098 299,766,098 299,766,098
Due to NMF 109,530 109,530 109,530
374,648,828 78,657,100 453,305,928 453,305,928
27.2 Fair value estimation
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in
the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit
price) regardless of whether that price is directly observable or estimated using another valuation technique.
The table below analyses the financial instruments carried at fair value, by valuation method. The different levels have
been defined as follows:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
- Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
- Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs) (level 3).
The following table presents the Universitys assets and liabilities that are measured at fair value:
As at June 30, 2023 Level I Level 2 Level 3 Total

Rupees
Recurring fair value measurements
Assets
Investments - FVPL 484,632,713 484,632,713
Total assets 484,632,713 484,632,713
Liabilities
Total liabilities
As at June 30, 2022
Recurring fair value measurements
Assets
Investments - FVPL 1,147,140,256 1,147,140,256
Total assets 1,147,140,256 1,147,140,256
Liabilities
Total liabilities
There were no transfers between Levels 1 and 2 & Levels 2 and 3 during the year and there were no changes in
valuation techniques during the years.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date.
A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker,
industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market
transactions on an arm's length basis. The quoted market price used for financial assets held by the University is the
current bid price. These instruments are included in Level 1.
The fair value of financial instruments that are not traded in an active market is determined by using valuation
techniques. These valuation techniques maximise the use of observable market data where it is available and rely as
little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in Level 2.
The carrying values of all financial assets and liabilities reflected in the financial statements approximate their fair
values.
27.3 Financial instruments by categories
At fair value
through profit At amortised
or loss cost Total
Assets as per Statement of Financial Position (Rupees)
As at June 30, 2023

Investments 484,632,713 6,235,521,148 6,720,153,861
Cash and bank balances 1,787,319,422 1,787,319,422
484,632,713 8,753,653,206 9,238,285,919
At fair value
through profit At amortised
or loss cost Total
(Rupees)
As at June 30, 2022

Investments 1,147,140,256 4,038,180,140 5185,320,396
Cash and bank balances 1,317,005,354 1,317,005,354
1,147,140,256 6,063,141,302 7,210,281,558
Financial liabilities at
amortized cost
2023 2022
(Rupees)
Liabilities as per Statement of Financial Position
Long term security deposits 90,918,900 78,657,100
Creditors, accrued and other liabilities 459,795,304 299,766,098
Due to NMF 109,530
Current portion of long term security deposits 76,996,200 74,773,200

627,710,404 453,305,928
27.4 Offsetting financial assets and financial liabilities
There are no significant financial assets and financial liabilities that are subject to offsetting, enforceable master
netting arrangements and similar agreements.
28. Corresponding figures
Corresponding figures have been reclassified wherever necessary to reflect better presentation of events and
transactions for the purpose of comparison. However, no significant reclassifications have been made except for
'Current maturity of long term investments' of Rs 619,713,048 previously presented under 'Short term investments',
now reclassified and presented as a separate line item on the face of statement of financial position.
29. Date of authorisation for issue of financial statements
These financial statements were authorised for issue on , 2023 by the Board of Trustees of
the University.
Member of Management Committee Chief fl 0 icer

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LAHORE UNIVERSITY OF

Non - current assets

Due to/(from) 17 91,805,974 (91,805,974)

CONTINGENCIES AND COMMITMENTS 18

The annexed notes 1 to 29 form an integral part of these financial statements.

c3 Member of Management Committee Ch41 Officer

Current Endowment Scholarship Chair Sponsored Fixed Assets 2023 2022

Other comprehensive income:

Items that may be reclassified subsequently to

Items that will not be reclassified subsequently to

Other comprehensive income for the year

The annexed notes I to 29 form an integral part of these financial statements.

Member of Management Committee

Current Endowment Scholarship Chair Sponsored Fixed Assets

Other comprehensive income for the year

Transfer (from)/to funds 22 (300,000,000) 277,325,612 22,674,388

Other comprehensive income for the year

Transfers (from)/to funds:

Current fund to endowment fund 22 (330,000,000) 330,000,000 - - - - -

Endowment fund to current and scholarship funds 570,714 (64,674,044) 64,103,330 - - - -

Transfer of fixed assets disposals to/(from) funds 6,591,477 (6,591,477)

Member of Management Committee

Surplus of income over expenditure before taxation 2,197,495,948 752,045,383

Adjustment for non cash charges and other items:

Effect on cashflow due to working capital changes:

Finance cost paid (8,606,113) (3,595,699)

Cash flow from investing activities

Cash flow from financing activities

The annexed notes 1 to 29 form an integral part of these financial statements.

Member of Management Committee

1. University and its operations

2.2 Initial application of standards, amendments or interpretations to existing standards

b) Amendments to lAS 8, 'Definition of Accounting Estimates'

The IASB has issued narrow-scope amendments to IFRS Standards.

The amendments will help entities:

- distinguish changes in accounting estimates from changes in accounting policies.

3.1 Critical accounting estimates and judgements

4. Summary of significant accounting policies

4.1 Fund accounting

4.2 Current Fund

4.3 Endowment Fund

4.4 Scholarship Fund

4.5 Chair Funds

4.6 Sponsored Projects

4.9 Operating fixed assets

4.10 Intangible assets

4.10.1 Computer software and license fee

4.10.2 Cryptocurrency assets

4.12 Impairment of non-financial assets

4.14 Financial assets

4.14.2 Recognition and derecognition

4.14.4 Impairment of financial assets other than investment in equity instruments

4.15 Financial liabilities

4.16 Offsetting of financial assets and financial liabilities

(i) Short term obligations

(ii) Post employment benefits

(a) Defined contribution plan - Provident Fund

(b) Accumulating compensated absences

4.19 Cash and cash equivalents

4.20 Creditors, accrued and other liabilities