16. LONG TERM FINANCING – SECURED

Allied Bank Limited: This represents balance transferred as a result of restructuring of short term running finance (RF) facility to Term Loan Facility and subsequently amended on October 8, 2020 and September 30, 2021. Principal will be repaid in 37 stepped up monthly installments starting from August 2021 until August 2024. Markup will be accrued and will be serviced in 12 equal monthly installments, starting from September 2024. The effective markup rate applicable will be 3 Month KIBOR + 85 bps. The mark up is charged during the period on the outstanding balance at 12.99% to 13.03% (2024: 16.98% to 22.31%) per annum. The facility is secured against a 1st joint pari passu charge on present and future current and fixed assets excluding building of the Company for USD 1.88 million and right to set off on collection account. The Company is in negotiations with Allied Bank Limited (the “Bank”) to settle this liability in full.

Bank Islami Limited: This represents the balance transferred as a result of the restructuring of a short term running finance (RF) facility to Term Loan Facility on February 12, 2021. The principal is repayable in 29 installments starting from February 2022 until May 2026. Markup to be accrued and will be serviced in 24 monthly installments, starting from June 1, 2024. The effective markup rate applicable will be the 6 Month KIBOR (Floor 7.5% and capping 17%). The mark up charged during the period on the outstanding balance was 11.87% (2024: 17%) per annum. The facility is secured against a 1st joint pair passu charge on present and future current and fixed assets excluding land, building and licenses/receivable of LDI & WLL of the Company for USD 3.10 million with a 25% margin, the pledge of various listed securities of the Company having a carrying value of USD 0.13 million, and a Mortgage over the Company’s Offices at Ali Tower MM Alam Road Lahore and at The Plaza Shopping Mall Kehkashan Karachi.

Subsequently in June 2023, the Bank approved the Company’s restructuring request as a result of which overall repayment tenure was extended by 1 year and 6 months, i.e. principal repayment will end in November 2025 instead of May 2024 and Markup repayment will end in November 2027, instead of May 2026. In the same year, the period for repayment of principal and deferred markup was further extended and according to the revised terms both will be repaid until November 1, 2027. As of the reporting date, the Company is in negotiation with the Bank to fully settle this liability.

Askari Bank Limited: This represents the balance transferred as a result of a settlement agreement from short term running finance (RF) facility to Term Loan Facility as of November 2, 2022. Principal will be repaid in 48 installments starting from November 2022 until October 2026. Markup outstanding after effective discounts / waivers as per settlement agreement and markup to be accrued will be serviced in 36 monthly installments, starting from November 2024. Effective markup rate applicable will be one month KIBOR (“1MK”)- 2% (Floor 10%). The mark up charged during the six months ended June 30, 2025 on the outstanding balance ranged from 9.38% to 11.35% (2024: 12.93% to 20.34%) per annum. The facility is secured against a 1st joint pari passu charge on present and future current and fixed assets (excluding land, building and licenses) of the Company with a margin of 25%, a collection account with Askari Bank Limited (“AKBL”) for routing of LDI receivables, and an additional mortgage on Properties situated in Sindh.

Subsequently in April 2024, the Bank approved the Company’s request for restructuring of installments as a result of which total repayment tenure of the facility remains unchanged. Principal settlement tenure was however extended by one year until October 2027. Further, markup will be paid in the last 2 years (24 installments) starting from November 2025 and ending in October 2027.

The Company used post tax weighted average borrowing rate for amortization of deferred markups.