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LONG TERM FINANCING SECURED

9 Months Ended

Sep. 30, 2024

15. LONG TERM FINANCING – SECURED

	September 30, 2024		December 31, 2023
	(Unaudited)
Allied Bank Limited		133,749	$	110,057
Bank Islami Limited		244,877		251,073
Askari Bank Limited		1,054,101		921,062
Standard Chartered Bank Limited		28,427		47,698
	$	1,461,154	$	1,329,890

Allied Bank Limited: This represents a balance transferred as a result of the restructuring of a 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 instalments starting from August 2021 until August 2024. Interest will be accrued and will be serviced in 12 equal monthly instalments, starting from September 20, 2024. The effective interest rate applicable will be 3 Month KIBOR + 85 bps. The interest charged during the year on the outstanding balance ranged from 22.31% to 22.84% (2023: 17.85% to 23.76%) per annum. The facility is secured against a 1st joint pari passu charge on present and future current and fixed assets excluding buildings of the Company for $1.92 million and includes a right to set off on the collection account. As of the date of these financial statements, over six monthly installments are pending. The Company is in negotiation with the bank to attempt to settle its liability in full.

Bank Islami Limited: This represents a balance transferred as a result of a restructuring of a short-term running finance (RF) facility to Term Loan Facility on February 12, 2021. Principal will be repaid in 29 installments starting from February 2022 until May 2026. Interest will be accrued and will be serviced in 24 monthly installments, starting from June 1, 2024. The effective interest rate applicable will be the six Month KIBOR (Floor 7.5% and capping 17%). The interest charged during the period on the outstanding balance at 17% (2023: 15.87% to 17%). The facility is secured against a 1st joint pair passu charge on present and future current and fixed assets excluding land & building & licenses/receivable of LDI & WLL of the Company totaling $3.16 million with a 25% margin, pledge of various listed securities of the Company having a carrying value of $0.14 million along with 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 one year and six months, as a result of which the principal repayment will end in November 2025 instead of May 2024 and interest repayment will end in November 2027 instead of May 2026. As of the reporting date, five monthly installments are pending. The Company is in negotiations with the Bank for settling its liability in full.

Last year, the period for repayment of principal and deferred interest was extended and according to revised terms both will be repaid in November 1, 2027.

Askari Bank Limited(AKBL): This represents a balance transferred as a result of a settlement agreement from a 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. Interest outstanding after effective discounts / waivers as per the settlement agreement and interest to be accrued, will be serviced in 36 monthly installments, starting from November 2024. The effective interest rate applicable will be 1Month KIBOR - 2% (Floor 10%). The interest charged during the period on the outstanding balance ranged from 20.1% to 20.34% (2023: 14.4% to 21.14%). The facility is secured against a 1st joint pair passu charge on present and future current and fixed assets (excluding land & building & licenses) of the Company with a margin of 25%, a collection account with AKBL for routing of LDI receivables along with additional mortgage on properties situated in Sindh, Pakistan.

As of the reporting date the bank has approved a restructuring of installments, provided total tenor of the facility remains unchanged.

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

Standard Chartered Bank Limited: This represents a balance transferred from a short-term borrowing as a result of a settlement agreement from a short-term running finance (RF) facility to Term Loan Facility on August 9, 2023. Principal will be repaid in stepped up 23 installments starting from August 2023 until June 2025. Interest outstanding after effective discounts / waivers as per a settlement agreement and interest to be accrued, will be serviced in six monthly installments, starting from January 2025. The effective interest rate applicable will be at a Cost of Funds (subject to change on a yearly basis as advised by the state bank of Pakistan). The interest charged during the period on the outstanding balance will be 4.25% per annum. The facility is secured against a 1st joint pari passu charge on present and future current and fixed assets (excluding land & building & licenses) of the Company for $1.15 million.