Transmission of Quarterly Financial Statements for the Period Ended September 30, 2025

MADE FOR IMPACT

QUARTERLY REPORT

FOR THE 1ST QUARTER ENDED SPETMEBER 30, 2025

AIR LINK COMMUNICATION

COVER STORY

Air Link CommunicaĒion LĒd. sĒands among ™akisĒan's forgmosĒ ĒgchnologD companigs, wiĒh a sĒrong prgsgncg in Ēhg manufacĒuring, disĒribuĒion, and rgĒail of smarĒ-phongs and consumgr glgcĒronics.

Since its inception, the Company has maintained a position of distinction in the telecom sector, consistently setting new benchmarks for growth and innovation.

The successful launch of Pakistan's largest private sector IPO in 2021, oversubscribed by PKR 11 billion, was a landmark achievement that reinforced investor confidence and highlighted Airlink's leadership within the industry. Building on this momentum, the Company has continued to expand its portfolio, most

notably through the launch of the Xiaomi Smart TV manufacturing facility, strengthening its role in advancing the nation's consumer electronics sector.

In 2025, Airlink accelerated its transformation by embedding AI-driven systems into its manufacturing ecosystem, enabling greater precision, efficiency, and scalability.

This integration ensures that cutting-edge, locally produced smartphones and smart devices remain accessible to households across Pakistan, supporting both technological inclusion and the "Made in Pakistan" vision.

Airlink's mission remains steadfast: to enhance quality of life by delivering innovative, affordable technology, while fostering long-term digital transformation and contributing to Pakistan's economic resilience. The Company's operations are guided by core values of integrity, transparency, diversity, and inclusivity, with innovation consistently positioned at the forefront.

Through these commitments, Airlink continues to drive sustainable growth, enable digital access, and shape a smarter future for Pakistan.

PERFORMANCE AT A GLANCE

Since its inception, Air Link has demonstrated remarkable growth, achieving a compound annual growth rate (CAGR) of 33.3% over the past decade. In addition to its impressive financial performance, the company has also expanded its product portfolio more extensively than any other player in the industry.

01

INTRODUCTION

02

DIRECTOR'S REPORT

03

FINANCIAL STATEMENT

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Air Link Communication Ltd. is a leading force in Pakistan's technology and communication sector, recognized for delivering innovative, high-quality, and affordable solutions nationwide. Through strategic partnerships with global leaders such as Samsung, Xiaomi, Apple (Authorized Reseller), Tecno, itel, Acer Gadgets Inc., and iMiki, Airlink continues to bridge international expertise with local capabilities.

The company's journey began with distribution, where a robust nationwide network positioned Airlink as a trusted partner for leading international brands. This success paved the way for backward integration into manufacturing, with advanced local facilities producing Xiaomi smartphones, Smart TVs, and Tecno smartphones, strengthening Pakistan's role in the global technology value chain while supporting the "Made in Pakistan" vision.

Complementing its upstream capabilities, Airlink has expanded forward into retail through flagship stores and brand outlets that provide consumers with convenient access to world-class technology, including smartphones, smart TVs, wearables, home appliances, and accessories.

To further scale operations, a landmark manufacturing unit is currently under construction at Sundar Industrial Estate, spanning 8 acres with a covered area of 1.4 million square feet. Once completed, this state-of-the-art facility will significantly expand production capacity, accelerate technology transfer, and create new employment opportunities, while positioning Pakistan as an emerging hub for exports of smartphones and consumer electronics.

By integrating distribution, manufacturing, and retail, Airlink has built a complete 360-degree ecosystem. This model not only ensures accessibility and affordability for consumers but also advances digital inclusion, supports sustainable growth, and strengthens Pakistan's position in the global technology landscape.

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To become a global leader in technology and telecommunication, driving innovation and excellence to establish Pakistan as a recognized technological hub.

To enhance connectivity and improve lives throughhigh-quality, affordable products, while driving Pakistan's transformation into a global technological leader. With a steadfast commitment to customer satisfaction, integrity, and excellence, we aim to set industry benchmarks and foster a culture of continuous improvement and innovation.

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TRANSPARENCY

INTEGRITY

QUALITY

CUSTOMER SATISFACTION

INNOVATION

DIVERSITY & INCLUSION

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Air Link Communication Limited is a prominent player in Pakistan's technology and telecommunication sector, excelling in the distribution, retail and manufacturing of mobile phones and varied electronics. The company has partnered with leading global brands such as

delivering innovative products to a broad consumer market.

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DISTRIBUTION

RETAIL

SMARTPHONE PRODUCTION FACILITY

SMART TV PRODUCTION FACILITY

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RETAIL NETWORK

Airlink maintains one of Pakistan's most extensive and strategically positioned retail networks, designed to enhance nationwide access to advanced technology. These outlets serve as more than points of sale; they function as experiential centers where consumers can directly engage with the latest innovations in smartphone, consumer electronics, smart wearables, accessories and digital communication.

The network showcases a comprehensive portfolio of globally recognized brands, including Samsung, Xiaomi, Apple (iPhone), Tecno, Acer Gadgets Inc., and iMiki complemented by a wide selection of premium accessories. Each product is presented with an emphasis on authenticity, quality assurance, and reliability, underscoring the company's role as a trusted partner in the technology sector.

Retail operations are further strengthened by a service-oriented approach. Highly trained staff provide professional guidance on product specifications, features, and suitability, enabling informed purchasing decisions.

This commitment to excellence ensures that the retail network delivers not only accessibility to technology but also a consistently superior customer experience across all locations.

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COMPANY PROFILE

BOARD OF DIRECTORs

Mr. Aslam Hayat Piracha

Chairman / Non-executive Director

Mr. Muzzaffar Hayat Piracha

Chief Executive Officer /Executive Director

Mr. Sharique Azim Siddiqui

Independent Director

Mr. Hussain Kuli Khan

Independent Director

Mr. Aqdus Faraz Tahir

Independent Director

Mrs. Rabiya Muzzaffar

Non-executive Director

Syed Nafees Haider

Executive Director

AUDIT COMMITTEE HR & REMUNERATION

Mr. Hussain Kuli Khan

(Independent Director) - Chairman

Mr. Sharique Azim Siddiqui

(Independent Director) - Member

Mrs. Rabiya Muzzaffar

(Non-executive Director) - Member

Mr. Qaiser Ali

(Head of Internal Audit) - Secretary

COMMITTEE

Mr. Sharique Azim Siddiqui

(Independent Director) - Chairman

Mr. Aqdus Faraz Tahir

(Independent Director) - Member

Mr. Muzzaffar Hayat Piracha

( Chief Executive Officer ) - Member

Mr. Amer Latif

(Company Secretary & Head of Legal) - Secretary

CHIEF FINANCIAL OFFICER

Mr. Nusrat Mahmood

COMPANY SECRETARY

Mr. Amer Latif

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Directors' Report

1. Introduction

   The Directors of Air Link Communication Limited are pleased to present the standalone and consolidated financial statements for the three months ended September 30, 2025.

2. Economic Environment

   During the first quarter of FY2026, Pakistan's economy exhibited sustained stability, with year-on-year inflation easing below 3% and the policy rate held steady at 11%. Economic activity showed gradual improvement, supported by stable foreign reserves, prudent fiscal management, and resilient industrial performance. Despite localized disruptions caused by recent floods, the broader macroeconomic setting remained supportive of business confidence and investment prospects.

   Amid this improving environment, Air Link continues to strengthen its operational agility and enhance efficiencies across all business segments. The Company remains focused on capitalizing on emerging opportunities within the mobile technology sector, with an unwavering commitment to sustainable growth and long-term value creation for its stakeholders.

3. Financial Performance

   A brief financial summary of the operations performed during the period is summarized below:

   • Consolidated Performance:

     PKR mln	QE Sept 2025	QE Sept 2024
     Sales	24,402	22,052
     Gross Profit	3,387	2,170
     GP Margin	13.88%	9.84%
     Net Profit	1,583	842
     Net Margin	6.48%	3.82%
     EPS	4.01	2.13

   • Standalone Performance:

     PKR mln	QE Sept 2025	QE Sept 2024
     Sales	13,423	13,138
     Gross Profit	1,583	1,109
     GP Margin	11.80%	8.45%
     Net Profit	608	352
     Net Margin	4.53%	2.68%
     EPS	1.54	0.89

4. Future Outlook

   The Company's management is proactively implementing strategies to enhance operational efficiency, maintain high product quality, meet production goals, and accomplish business objectives under present conditions.

5. Looking Ahead

   The Board is confident that, with continued stakeholder support, the Company will successfully deliver on its strategic objectives. These objectives focus on strengthening financial performance, expanding market presence, driving product innovation, and advancing sustainability initiatives.

6. Acknowledgement

The Board of Directors formally acknowledges and expresses its sincere appreciation and gratitude to all stakeholders for their continued support. It also extends its gratitude to the management and

staff for their dedication and hard work.

Director

Chief Executive Officer

ٹروپر یک زرٹکیرئاڈ

فراعت .1

ڈنیٹسا ےیل ےک تدم یک ہام نیت یلاو ےنوہ متخ وک 2025 ربمتس 30 زرٹکیرئاڈ ےک ڈٹیمل نشیکینویمک کنل رئیا ۔ںیہ ےہر رک سوسحم ترسم ےئوہ ےترک شیپ ےراوشوگ یتایلام یعومجم روا نولا

لوحام یشاعم .2

لاس ںاہج ،ایک ہرہاظم اک ماکحتسا رادیئاپ ےن تشیعم یک ناتسکاپ ،نارود ےک یہام ہس یلہپ یک 2026 لاس یلام ےک ہلدابمرز مکحتسم ۔اہر رارقرب رپ %11 ٹیر یسیلاپ روا یئگ وہ مک ےس %3 حرش یک رز طارفا لاس ہب یھکید یرتہب جیردتب ںیم ںویمرگرس یشاعم تلودب یک یگدرکراک یتعنص رادکچل روا ،ماظتنا یتایلام طاتحم ،رئاخذ ےک رابوراک لاحتروص کمانکا ورکیم رت عیسو ،دوجواب ےک لطعت یماقم ےلاو ےنوہ ےس بالیس ہیلاح ۔یئگ ۔یہر راگزاس ےیل ےک تاناکما ےک یراک ہیامرس روا دامتعا

مامت روا ےہ اہر رک طوبضم لسلسم وک یتسچ لنشیرپآ ینپا کنل رئیا ،نایمرد ےک لوحام ےئوہ ےتوہ رتہب سا عقاوم ےئوہ ےترھبا ںیم ےبعش ےک یجولانکیٹ لئابوم ینپمک ۔ےہ اہر اھڑب وک یگدرکراک ںیم ںوبعش یرابوراک لیوط روا یقرت رادیئاپ ےیل ےک زرڈلوہ کیٹسا ےنپا مزع لزلزتم ریغ اک سج ،ےہ زوکرم رپ ےناھٹا ہدئاف ےس ۔ےہ قیلخت یک ردق یتدم

یگدرکراک یتایلام .3

:ےہ ایگ اید ںیم لیذ ہصالخ یتایلام رصتخم کیا اک ںویئاورراک یلاو ےناج یک نارود ےک تدم سا

رظنم اک لبقتسم .4

رارقرب وک رایعم ےک تاعونصم ی' لعا ،ےناھڑب وک یگدرکراک لنشیرپآ ںیم تالاح ہدوجوم ہیماظتنا یک ینپمک تمکح رپ روط لاعف ےیل ےک ےنرک لصاح وک دصاقم یرابوراک روا ،ےنرک اروپ وک فادہا یراوادیپ ،ےنھکر ۔ےہ اریپ لمع رپ ںویلمع

لمع ہحئال اک ہدنئآ .5

اروپ ےس یبایماک وک دصاقم کجٹیرٹسا ےنپا ینپمک ،ےس نواعت لسلسم ےک زرڈلوہ کیٹسا ہک ےہ نیقی وک ڈروب تاعونصم ،انید تعسو وک یگدوجوم ںیم ٹیکرام ،انانب طوبضم وک یگدرکراک یتایلام روحم اک دصاقم نا ۔یگ ےرک ۔ےہ اناھڑب ےگآ وک تامادقا ےک یرادیئاپ روا ،انید غورف وک یزارط تدج یک

رکشت راہظا .6

روا ہیرکش ےس لد ہہت روا فارتعا ہطباضاب اک نواعت لسلسم ےک زرڈلوہ کیٹسا مامت زرٹکیرئاڈ فآ ڈروب ۔ےہ اترک ادا ہیرکش اک نا یھب ےیل ےک تنحم روا نگل یک ےلمع روا ہیماظتنا ہی ۔ےہ اترک راہظا اک تینونمم

رٹکیرئاڈ رسیفآ وٹکیزگیا فیچ

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AIR LINK COMMUNICATION LIMITED

UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2025

30-Sept-25 30-Jun-25

ASSETS

NON CURRENT ASSETS

Note Rupees Rupees (Un-Audited) (Audited)

The annexed notes from 1 to 16 form an integral part of these unconsolidated financial statements.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECPTagOeR19 of 69

AIR LINK COMMUNICATION LIMITED UNCONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED SEPTEMBER 30, 2025

The annexed notes from 1 to 16 form an integral part of these unconsolidated financial statements.

DIRECTOR

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER

AIR LINK COMMUNICATION LIMITED

UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED SEPTEMBER 30, 2025

DIRECTOR

The annexed notes from 1 to 16 form an integral part of these unconsolidated financial statements.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER

AIR LINK COMMUNICATION LIMITED UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED SEPTEMBER 30, 2025

DIRECTOR

The annexed notes from 1 to 16 form an integral part of these unconsolidated financial statements.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER

AIR LINK COMMUNICATION LIMITED UNCONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED SEPTEMBER 30, 2025

CASH FLOW FROM OPERATING ACTIVITIES

30-Sept-25 30-Sept-24

Rupees Rupees (Un-Audited) (Un-Audited)

Profit before taxation 856,820,360 458,446,546

Adjustments for:

Stock in trade Stores and spares Trade debts

Loans and advances

Trade deposits, prepayments and other receivable Tax refunds due from the Government

(Decrease) / increase in current liabilities Trade payables, accrued and other liabilities Contract liabilities

1,604,601,307 (959,026,976)

Cash generated / (used in) from operations 2,861,344,628 (211,274,707)

Finance cost paid Long term deposits Gratuity paid

Net Cash generated / (used in) from operating activities 2,322,499,841 (435,947,220)

CASH FLOW FROM INVESTING ACTIVITIES

Additions in operating fixed assets Additions in capital work in progress Additions in intangible assets Interest income received

Short term investments - net

Net cash (used in) / generated investing activities (695,129,916) 76,645,604

CASH FLOW FROM FINANCING ACTIVITIES

Lease liability repaid Long term loans - net Dividend paid

Short term borrowings - net

DIRECTOR

Net cash (used in) / generated from financing activities (4,665,069,958) 1,685,319,222

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER

AIR LINK COMMUNICATION LIMITED

NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. THE COMPANY AND ITS OPERATIONS

   1. The Company was incorporated in Pakistan on January 02, 2014 as a private limited company, under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) having registered office at 152-M Quaid-e-Azam Industrial Area, Kot Lakhpat, Lahore, Punjab, Pakistan. The Company is engaged in the business of import, export distribution, assembling of smart phones indenting, wholesale, retail of communication and IT related products and services including cellular mobile/smart phones, tablets, laptops, accessories and allied products. The Company converted to a public limited company on April 24, 2019 and got itself registered on Pakistan Stock Exchange (PSX) on September 22, 2021 as a result of completion of its Initial Public Offering (IPO).

      The Company has a facility for assembly of smart phones and feature phones located at 152-M, Quaid-e-Azam Industrial Area, Kot Lakhpat, Lahore, Punjab, Pakistan.

   2. Subsidiary company: Select Technologies (Private) Limited

      Select Technologies (Private) Limited (STPL), an unlisted public company registered under the Companies Act, 2017, is a wholly owned subsidiary of the Company. STPL is engaged in the business of assembly and production of smartphones and related accessories, and has its registered office and assembly unit at 152-1-M, Quaid-e-Azam Industrial Area, Kot Lakhpat, Lahore.

      The subsidiary has set up a state-of-the-art smartphone assembly plant in Lahore. The principal line of business of the subsidiary is to set up, establish, and operate plants for the assembly and production of mobile phones of all sorts and descriptions, accessories, components, attachments, and bodies used for or in connection with the aforementioned mobile phones.

      These unconsolidated financial statements are the separate financial statements of the Company in which investment in subsidiary Company, is accounted for on the basis as discussed in Note 5.16. Consolidated financial statements are presented separately.

2. GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

   The locations of Company's head office, assembling facility, retail outlets and flagship store are as below:

   BUSINESS UNIT ADDRESS

   Head Office

   Assembling Facility

   Assembling Facility -

   152-M, Quaid-e-Azam Industrial Area, Kot Lakhpat, Lahore, Punjab, Pakistan.

   152-M, Quaid-e-Azam Industrial Area, Kot Lakhpat, Lahore, Punjab, Pakistan.

   Capital Work in Progress E2 and E3 Sundar Green Special Economic Zone.

   BUSINESS UNIT ADDRESS

   Samsung Retail Store Air Link Flagship Store Samsung Retail Store Air Link Retail Store Air Link Retail Store

   Shop No. LG-19, Lucky One Mall, LA-2/B, Block 21, Opp. UBL Sports Complex, Rashid Minhas Road, Karachi, Pakistan.

   Shop No. 1, Xinhua Mall, 24-B/2, Mian Mehmood Ali Kasoori Road, Block B2 Gulberg III, Lahore, Pakistan.

   Shop No. 27, Ground Floor, Emporium Mall, Johar Town, Lahore, Pakistan.

   Shop No. SF-7, Lucky One Mall, LA-2/B, Block 21, Opp. UBL Sports Complex, Rashid Minhas Road, Karachi, Pakistan.

   Shop No. 1080 Opposite Carrefour, Packages Mall, Walton Road, Lahore, Pakistan.

   Air Link Retail Store Shop No. SF-51, Dolmen Mall Clifton, Karachi, Pakistan. Samsung Retail Store Shop No. 1 Near Bank Alfalah, Saddar Cantt. Hyderabad, Pakistan.

   Samsung Retail Store

   Shop No. 5, Ground Floor, Shareef Complex, Tehsil Chowk, Multan, Pakistan.

   Samsung Retail Store City Centre, DC Office Chowk, Bahawalpur.

   Samsung Retail Store Shop-1079, 1st Floor, Packages Mall, Walton Road, Lahore.

   Air Link Retail Store Shop G-56, Ground Floor, Emporium Mall, Johar Town, Lahore.

   MI Retail Store

   Samsung Experience Store

   Shop No. LG-20, Lucky One Mall, LA-2/B, Block 21, Opp. UBL Sports Complex, Rashid Minhas Road, Karachi, Pakistan.

   Shop G-29, Ground Floor, Dolmen Mall, Phase-6 Defence Housing Authority, Lahore

   In addition to the above, the Company also operates 13 retails, 7 stores and 6 warehouses, the list of which is not presented in these unconsolidated financial statements to maintain concision.

3. BASIS OF PREPARATION

   1. Statement of compliance

      These unconsolidated financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:

      • International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act 2017;

      • Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act, 2017; and

      • Provision of and directives issued under the Companies Act, 2017.

        Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS and IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. Basis of measurement

      These unconsolidated financial statements have been prepared under the historical cost convention

      except defined benefits are recognized on the basis mentioned in Note 5.10.

   3. Functional and presentation currency

      These unconsolidated financial statements are presented in Pakistani Rupee which is the functional and presentation currency of the Company. The figures have been rounded off to the nearest of Rupees unless otherwise stated.

   4. Significant accounting judgements, estimates and assumptions

      The preparation of unconsolidated financial statements in conformity with approved accounting standards requires management to make estimates, assumptions and judgements that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

      In preparing these unconsolidated financial statements, the significant estimates, assumptions and judgements made by the management in applying accounting policies include:

      Note

      Impairment of non financial assets 5.1.5

      Lease term 5.1.6

      Allowance for expected credit loss 5.5.1

      Taxation 5.7

4. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS TO PUBLISHED APPROVED ACCOUNTING AND REPORTING STANDARDS

   1. New accounting standards, amendments and IFRS interpretations that are effective for the year ended June 30, 2026

The following standards, amendments and interpretations are effective for the year ended June 30, 2025. These standards, amendments and interpretations are either not relevant to the Company's operations or did not have significant impact on the financial statements other than certain additional disclosures.

Amendments to IFRS 7 'Financial Instruments: Disclosures' - Supplier finance arrangements.

Amendments to IFRS 16 'Leases' - Amendments to clarify how a seller-lessee subsequently measures sale and leaseback transactions.

Amendmends to IAS 1 'Presentation of Financial Statements' - Classification of liabilities as current or non-current.

Amendmends to IAS 1 'Presentation of Financial Statements' - Non-current liabilities with covenants.

Amendments to IAS 7 'Statement of Cash Flows' - Supplier finance arrangements.

Effective date

(annual periods beginning on or after)

January 01, 2024

January 01, 2024

January 01, 2024

January 01, 2024

January 01, 2024

4.2 New accounting standards, amendments and interpretations that are not yet effective

The following standards, amendments and interpretations are only effective for accounting periods, beginning on or after the date mentioned against each of them. These standards, amendments and interpretations are either not relevant to the Company's operations or are not expected to have significant impact on the Company's unconsolidated financial statements other than certain additional disclosures.

Amendments to IFRS 7 'Financial Instruments: Disclosures' - Amendments regarding the classification and measurement of financial instruments.

Amendments to IFRS 9 'Financial Instruments' - Amendments regarding the classification and measurement of financial instruments.

Amendmends to IAS 21 'The Effects of Changes in Foreign Exchange Rates' -Lack of Exchangeability.

January 01, 2026

January 01, 2026

January 01, 2025

Amendments to IFRS 7 'Financial Instruments: Disclosures' - Amendments

regarding nature-dependent electricity contracts that are often structured as January 01, 2026 power purchase agreements (PPAs).

Amendments to IFRS 7 'Financial Instruments: Disclosures' - Amendments regarding nature-dependent electricity contracts that are often structured as power purchase agreements (PPAs).

IFRS 17 Insurance Contracts.

January 01, 2026

January 01, 2027

Certain annual improvements have also been made to a number of IFRSs and IASs.

IFRS 1 'First-time Adoption of International Financial Reporting Standards' has been issued by IASB effective from July 01, 2009. However, it has not been adopted yet locally by Securities and Exchange Commission of Pakistan (SECP).

IFRS 18 'Presentation and Disclosures in Financial Statements' has been issued by IASB effective from January 01, 2027. However, it has not been adopted yet locally by SECP.

IFRS 19 'Subsidiaries without Public Accountability: Disclosures' has been issued by IASB effective from January 01, 2027. However, it has not been adopted yet locally by SECP.

IFRS 17 - 'Insurance contracts' has been notified by the IASB to be effective for annual periods beginning on or after January 1, 2023. However SECP has notified the timeframe for the adoption of IFRS - 17 which will be adopted by January 01, 2027.

1. MATERIAL ACCOUNTING POLICIES INFORMATION

   The accounting policies applied are consistent with prior year except as stated in Note 4.

   1. Property, plant and equipment

      1. Owned assets

         Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is provided on straight line method at the rates given in schedule of property, plant and equipment and charged to statement of profit or loss to write off the depreciable amount of each asset at the rates specified in the Note 6.

         Depreciation on additions is charged from the day it becomes available for use, and assets are depreciated till the date of disposal. Normal repairs and maintenance are charged to unconsolidated statement of profit or loss, while major renewals and improvements are capitalized.

         The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

      2. Disposal

         An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the unconsolidated statement of profit or loss when the asset is derecognized.

      3. Right-of-use assets

         The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term or the estimated useful lives of the assets.

      4. Estimate

         Estimates with respect to residual values, depreciable lives and pattern of flow of economic benefits are based on the analysis of the management of the Company. Further, the management reviews the value of the assets for possible impairments on an annual basis. Any change in the estimates in the future might affect the carrying amount of respective item of property and equipment, with a corresponding effect on the depreciation charge and impairment.

      5. Impairment

         The carrying amounts of the Company's assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the carrying amounts of such assets are reviewed to assess whether they are recorded in excess of their recoverable amount. Where carrying values exceed the respective recoverable amount, assets are written down to their recoverable amounts and the resulting impairment is recognized as expense. The recoverable amount is the higher of an asset's fair value less cost to sell and value in use. Where an impairment loss is charged, the depreciation charge is adjusted for the future periods to allocate the asset's revised carrying amount over its estimated useful life.

      6. Lease liabilities

         At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs.

         In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rates implicit in the leases are not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

         The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonable certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

         The Company has several lease options that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factor that create an economic incentive for it to exercise the renewal or termination. After the commencement period, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

      7. Short-term leases and leases of low-value assets

         The Company applies the short-term lease recognition exemption to its short-term leases, if any (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are of low value. Lease payments on short-term leases and leases of low value assets are recognized as expense on a straight-line basis over the lease term.

   2. Intangible assets

Intangible assets are initially stated at cost less accumulated amortization and accumulated impairment losses, if any. Amortization is charged to statement of profit or loss applying the straight line basis over its normal useful life as specified in Note 7. Amortization is charged to statement of profit or loss on time proportion basis for addition or deletion during the year. Gains and losses on disposal of assets are included in statement of profit or loss.

Cash and cash equivalents in the unconslidated statement of financial position comprise cash in hand and cash at bank as specified in Note 9 that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in values.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash in hand and cash at banks defined above. Term deposit receipts are not included in cash and cash equivalents as they are not held for cash management purposes.