Annual Report 2024
Arif Habib Group
Since its inception, the Arif Habib Group has been at the forefront of innovation, turning bold ideas into tangible realities. We've played a pivotal role in Pakistan's growth story, investing in sectors that drive national development and uplift communities across the country.
Our entrepreneurial spirit and passion for positive change have fueled our expansion into diverse industries, including financial services, fertilizers, cement, steel, renewable energy, and real estate development. By leveraging our expertise and forging strategic partnerships, we've consistently delivered value to our stakeholders and contributed significantly to Pakistan's economy.
Quality and excellence are the cornerstones of our business model. We're committed to setting new standards and pushing the boundaries of what's possible. With unwavering faith in Pakistan's potential, we're dedicated to harnessing innovation and transforming challenges into opportunities for growth and prosperity.
Arif Habib Corporation Limited
Arif Habib Corporation Limited (AHCL) is the cornerstone of the Arif Habib Group, a legacy built on the entrepreneurial vision of Mr. Arif Habib. Incorporated as a public limited company in 1994, AHCL has consistently delivered value to its shareholders and stakeholders.
In 2001, AHCL achieved a significant milestone by becoming a publicly listed company, with an initial public offering (IPO) of one million shares aimed at raising PKR 80 million to fuel its growth trajectory. Since its IPO, the company has demonstrated a strong commitment to its shareholders, distributing a total of PKR 16 billion as dividends (including specie dividends).
Moreover, AHCL conducted two buybacks of its share having face value of PKR.10; first in 2005-06 amounting to PKR 720 million at prices of PKR 360 per share, and second in 2019-20 amounting to PKR 1.225 billion at prices of PKR 27 per share.
As of June 30, 2024, AHCL has strong equity base of PKR 34 billion built through retained earnings. This remarkable journey has translated into a compounded annualized return of 26% for the initial investors who participated in the IPO back in 2001.
The Arif Habib brand is synonymous with integrity, excellence, and a relentless focus on stakeholder value. Our commitment to best practices and ethical conduct has earned us the trust and respect of our clients, partners, and employees. As we continue to evolve, we remain dedicated to upholding the high standards that have defined our success.
Arif Habib
Group's Journey
Incorporation of Black Gold | Achieved COD of |
Power Limited for 660MW Coal | Aisha Steel's |
Power Project | expansion |
Achievement of Financial Close | |
for expansion of Aisha Steel | |
and Power Cement (USD 300m) |
Achieved COD of Power Cement's expansion
2017 | 2019 | 2020 |
Establishment of Arif
Habib Commodities
20152012
Launch of Dolmen City REIT,
South Asia's first listed REIT
Acquisition of Fatimafert Ltd
(formerly DH Fertilizers)
1994 2001
Acquisition of Sachal Energy (to set up Wind Power)
Merger of Arif Habib Investments and
MCB asset management
Launch of Naya Nazimabad
2011
2004
Establishment of Arif Habib Securities (Present name: Arif Habib Corporation)
Establishment of Asset | Establishment of |
Management Company, | Arif Habib Limited by |
Arif Habib Investments | separating brokerage |
business from Arif Habib | |
Securities |
Launch of Silk Islamic Development REIT, Pakistan's first developmental REIT
First Developmental REIT | Divestment of | Amalgamation of |
Listed on PSX, Globe | MCBAH Savings | AHL's investment |
Residency REIT (GRR) | and Investments | portfolio into AHCL |
Limited |
2021 2022
2023 2024
Establishment of REIT
Management CompanyAcquired stake in ICPL (Dolmen City)
Divestment of Arif Habib Bank (now Bank Makramah Limited) and Thatta Cement
Became a joint venture partner in Aisha Steel Mills Limited
2009 | 2008 | 2007 |
2004 | 2005 | 2005 | 2006 |
Acquired Rupali Bank, renamed it Arif Habib Rupali Bank and then renamed it Arif Habib Bank
Acquisition of Sukh Chayn Gardens and Thatta Cement
Acquisition of Pakarab Fertilizers
Invested in Fatima Fertilizer, which was established as a JV green field project
Acquisition of Javedan Cement
Invested in Power Cement
Table of Content
11
Company Information
54
Financial Highlights
142
Consolidated Financial Statements
24 | 38 |
Directors' Report | Group Companies |
81 | 84 |
Statement of Compliance with | Unconsolidated |
Listed Companies (Code of | Financial Statements |
Corporate Governance) | |
Regulations, 2019 |
230 | 232 |
Shareholders' | Notice of Thirtieth |
Information | Annual General Meeting |
Forward Looking
Statements
Statements in this report that are not historical facts are futuristic plans based on the current beliefs, estimates and expectations of management and includes risks and uncertainties coupled with variations in economic or market conditions, amendments in laws, regulations and policies.
08
11
12
14
24
31
32
35
38
54
56
57
58
60
62
64
65
66
74
76
77
78
80
81
Core Values | 84 | Unconsolidated Financial Statements |
Company Information | 85 | Audit Report on Unconsolidated Financial |
Review Report by the Chairman on the overall | Statements | |
Performance of the Board | 90 | Statement of Unconsolidated Financial Position |
Profile of Director's and Key Management | 92 | Statement of Unconsolidated Profit or Loss |
Directors' Report | 93 | Statement of Unconsolidated Comprehensive |
Statement Showing Transactions in Shares by | Income | |
Exectives | 94 | Statement of Unconsolidated Changes in Equity |
Attendence of Directors in Meetings | 95 | Statement of Unconsolidated of Cash Flows |
Pattern of Shareholding | 96 | Notes to the Unconsolidated Financial |
Group Companies | Statements | |
Financial Highlights | 142 | Consolidated Financial Statements |
Financial Year 2024 at a Glance | 143 | Audit Report on Consolidated Financial |
Key Figures & Highlights | Statements | |
Financial & Business Highlights - Six Years at a | 148 | Statement of Consolidated Financial Position |
Glance | 150 | Statement of Consolidated Profit or Loss |
Horizontal Analysis of Financial Statements | 151 | Statement of Consolidated Comprehensive |
Vertical Analysis of Financial Statement | Income | |
Summary of Cash Flow Statements | 152 | Statement of Consolidated Changes in Equity |
Share Price / Volume Analysis | 153 | Statement of Consolidated of Cash Flows |
Sustainability Report | 154 | Notes to the Unconsolidated Financial |
AHG's Commitment to ESG | Statements | |
Governance & Management | 229 | Corporate Calendar of Major Events |
Criteria to Evaluate Board's Performance | 230 | Shareholders' Information |
Report of the Audit Committee on Adherence to | 232 | Notice of Thirtieth Annual General Meeting |
the Best Practices of Code of Corporate | 238 | Statement Under Section 134(3) Of The |
Governance | Companies Act, 2017 | |
Independent Auditor's Review Report on the | 265 | Director Report (Urdu) |
Statement of Compliance contained in Listed | From of Proxy (English) | |
Companies (Code of Corporate Governance) | From of Proxy (Urdu) | |
Regulations, 2019 | Ballot Paper | |
Statement of Compliance with Listed | ||
Companies (Code of Coporate Governance) | ||
Regulations, 2019 |
Our Vision
To be Pakistan's leading Investment Company, which delivers both competitive financial returns, together with having a positive impact on the country's economy and its people through responsible investing
Our Mission
Our mission is to excel in conceiving, developing and executing innovative projects across business sectors, with the aim of maximising returns for stakeholders, while playing a significant role in developing Pakistan's economy and its integration into the world markets.
06 | Arif Habib Corporation
Corporate Strategy
Our Corporate Strategy aims at creating value for all stakeholders by maintaining and improving our competitive position in the market.
This is achieved by continuously evaluating and acting in the best interests of our stakeholders in response to the changing market conditions, both domestically and internationally. Towards this end, we optimise our financial and human capital while seeking partnerships with other business houses having strong management teams to create and expand viable business enterprises.
Objectives
- Maintain Industry Leadership
- Create new businesses to augment profitability for sustained economic growth
- Maintain operational efficiency and to achieve synergies within our resources
Annual Report 2024 | 07
Values
AHCL is values-driven, and this principle continues to direct the business and the growth of the Arif Habib Group companies. The core values which reinforce the way we do business are:
Integrity
We conduct our business fairly, with honesty and with transparency. Everything we do stands the test of public scrutiny
Excellence
We constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide
Unity
We work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation
Responsibility
We continue to be responsible, as well as sensitive to the geographies, communities and the environment in which we work, always ensuring that what comes from the people goes back to the people many times over
08 | Arif Habib Corporation
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