Transmission of Quarterly Report for the Period Ended as on 31-Mar-2026

(UN-AUDITED)

FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED MARCH 31, 2026

ALTERN ENERGY LIMITED

COMPANY INFORMATION

BOARD OF DIRECTORS

Mr. Faisal Dawood Chairman

Mrs. Mehreen Dawood Director

Mr. Farooq Nazir Director

Mrs. Aliya Saeeda Khan Independent Director

Mr. Saqib Sajjad Director

Mr. Muhammad Saqlain Arshad Independent Director

Mr. Syed Rizwan Ali Shah Director

Mr. Umer Shehzad Sheikh Chief Executive (Deemed Director)

AUDIT COMMITTEE

Mrs. Aliya Saeeda Khan (Independent Director - Chairperson) Mr. Farooq Nazir

Mr. Syed Rizwan Ali Shah

HUMAN RESOURCE & REMUNERATION COMMITTEE

Mr. Farooq Nazir Chairman

Mrs. Mehreen Dawood Mr. Syed Rizwan Ali Shah

CHIEF FINANCIAL OFFICER

Mr. Sohail Abid

COMPANY SECRETARY

Mr. Salman Ali

HEAD INTERNAL AUDIT

Mrs. Rabia Shoaib

EXTERNAL AUDITORS

M/s. Grant Thornton Anjum Rahman Chartered Accountants

BANKERS

MCB Bank Limited Habib Bank Limited

Habib Metropolitan Bank Limited

REGISTERED OFFICE

DESCON HEADQUARTERS, 18-km Ferozpur Road, Lahore.

REGISTRAR SHARES

M/s. Corplink (Pvt.) Limited

Wings Arcade, 1-k Commercial Model Town, Lahore. Tel: (92-42) 35839182 Fax: (92-42) 35869037

03

ALTERN ENERGY LIMITED

DIRECTORS' REVIEW

We, the undersigned, on behalf of the Board of Directors of Altern Energy Limited ('the Company') present the un-audited consolidated and unconsolidated condensed interim financial statements of the Company for the nine-month period ended March 31, 2026.

GENERAL

Principal Activities:

The Company's principal activities are the ownership, operation, and maintenance of a 32-megawatt gas-fired thermal power plant located near Fateh Jang, District Attock, Punjab, and sale of electricity. The electricity produced is sold to its sole customer, Central Power Purchasing Agency (Guarantee) Limited ('CPPA') through the transmission network of the National Transmission and Dispatch Company ('NTDC'). The Company has a Power Purchase Agreement ('PPA') with its sole customer, CPPA, for thirty years, which commenced from June 6, 2001, ending on June 6, 2031. The Company also holds direct and indirect investments in other companies engaged in power generation, as detailed in note 8 to the condensed interim unconsolidated financial statements annexed with this report.

Group Structure:

The Company owns 100% shares of Power Management Company (Private) Limited ('PMCL') (a special purpose vehicle), which in turn holds 67.31% (June 30, 2025: 59.98%) shares of Rousch (Pakistan) Power Limited ('RPPL').

MATERIALINFORMATION

Given continued operational losses suffered by the Company as a result of nil dispatch demand from the off-taker during the past several years, during the previous fiscal year on April 17, 2025, the Shareholders of the Company approved the proposal of the Board of Directors for early termination of: (i) the Power Purchase Agreement ("PPA") with CPPA, (ii) the Implementation Agreement with the President of Islamic Republic of Pakistan on behalf of the Government of Pakistan ("IA"), and (iii) the Guarantee issued by the Government of Pakistan ("Guarantee"), (the PPA, IA and the Guarantee are hereinafter collectively referred to as the "Agreements"). Subsequently, on May 09, 2025, the Company submitted a request for early termination/retirement of the Agreements with CPPA and Private Power and Infrastructure Board ("PPIB"). The Company, on November 24, 2025, initialled a "Termination Agreement" ("TA"), to be executed in due course by the Company, PPIB, and CPPA.

Pursuant to the draft TA, the following agreements shall stand terminated with mutual consent of the relevant parties:

1. The Implementation Agreement executed with the GOP,

2. The Guarantee issued by the GOP.

3. The Power Purchase Agreement executed with CPPA, and

4. The Gas Supply Agreement executed with SNGPL.

On March 31, 2026, the Federal Cabinet approved the TA and marked it back to the concerned departments for further process.

GOING CONCERNASSUMPTION

As a result of no/low generation revenue during the past several years, the major income to support the cashflows of the Company has been dividends from RPPL. As mentioned in the ensuing paragraphs, in December 2024 RPPL handed over its power generation complex to the Government and can no longer generate and sell electricity to CPPA. These conditions indicate a material uncertainty on the Company's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, these condensed interim financial statements have been

04

prepared on a going concern basis, as RPPL has invested the funds received from the Government in mutual funds, which are expected to generate sufficient dividend income in future to support the Company in meeting its expenditures, based on the cash flow projections of RPPL and the Company.

FINANCE

During the period under review, the Company incurred gross loss of Rs. 79 million as compared to gross loss of Rs. 70 million in corresponding period of 2025. The Company incurred net loss after tax of Rs. 161million resulting in a loss per share of Rs. 0.44, as compared to net profit of Rs. 5,815 million and earnings per share of Rs. 16 in corresponding period of 2025. The net profit for the corresponding period included dividend income amounting to Rs. 5,864 million from the subsidiary, PMCL.

Your Company's consolidated loss attributable to the equity holders of Altern Energy Limited for the period under review was Rs. 1,488 million resulting in loss per share Rs. 4.09, as compared to consolidated loss of Rs.4,370 million and loss per share of Rs. 12.03 in the corresponding period of the last year.

OPERATIONSAND MAINTENANCE

During the period under review, the dispatch from the plant was zero to the off-taker similar to no dispatch during the corresponding period of the previous fiscal year, on account of no dispatch demand from NPCC.

During the period under review, all other scheduled and preventive maintenance activities were conducted in accordance with the Original Equipment Manufacturer ('OEM')'s recommendations. We are pleased to report that all the engines and their auxiliary equipment are in sound working condition.

QUALITY, ENVIRONMENT, HEALTH & SAFETY (QEHS')

The Company adheres to a set of QEHS Principles implemented to achieve optimal standards of health and safety for its employees. Overall, the health, safety and environment performance of the plant remained satisfactory during the period under review.

SUBSIDIARY REVIEW

During the period under review, your Company's subsidiary Rousch (Pakistan) Power Limited ('RPPL') posted turnover of Rs. 469 million (corresponding period in 2025: Rs. 7,970 million) and the cost of sales was Rs. 495 million (2025: Rs. 4,097 million). Net profit for the period was Rs. 270 million as compared to net loss of Rs. 7,871 million in corresponding period of 2025, delivering earnings per share of Rs. 0.31 (2025: loss per share of Rs. 9.13). The net loss during the corresponding period was mainly due to write-off of fixed assets and current assets due to termination of Agreements as result of a Negotiated Settlement Agreement ('NSA'), as mentioned in ensuing paragraph.

During the previous fiscal year, RPPL was approached by the Government of Pakistan for Termination of its PPA with CPPA, the IA with the President of the Islamic republic of Pakistan, and the Guarantee issued by the President Islamic Republic of Pakistan ('the Agreements'). In November 2024, RPPL signed a NSA for Termination of the Agreements. As per the terms of the NSA, CPPA paid the agreed outstanding receivables to RPPL by December 31, 2024. Accordingly, RPPL handed over the Complex to the Government of Pakistan's designated entity National Power Parks Management Company Limited ('NPPMCL'). As a result of the execution of the NSA, RPPL no longer owns the Complex to generate and sell electricity to CPPA.

CORPORATE GOVERNANCE

Composition of the Board of Directors

The election of Directors was held on December 31, 2025, after which the total number of directors is eight including Chief Executive (Deemed Director) as per the following:

05

The composition of the board is as follows:

Committees of the Board

The Board has established two committees which are chaired by Independent or non-executive directors. These committees are as follows:

Audit Committee

The Audit Committee comprises of three (3) members as follows:

Mrs. Aliya Saeeda Khan (Independent Director - Chairperson) Mr. Farooq Nazir (Non-Executive Director) Mr. Syed Rizwan Ali Shah (Non-Executive Director )

Human Resource & Remuneration Committee

The Human Resource & Remuneration Committee comprises of three (3) members as follows: Mr. Farooq Nazir (Non-Executive Director - Chairman)

Mrs. Mehreen Dawood (Non-Executive Director) Mr. Syed Rizwan Ali Shah (Non-Executive Director)

Internal Audit and Control

The Board of Directors has set up an independent audit function headed by a qualified person reporting to the Audit Committee. The scope of the internal audit function within the Company is clearly defined by the Audit Committee which involves regular review of internal financial controls.

RISK MANAGEMENT

There has been no change in the risk management profile and risk policies of the Company as disclosed in Note 32 of the annual audited financial statements of the Company for the year ended June 30, 2025.

06

CORPORATE SOCIALRESPONSIBILITY

The Company is committed to act responsibly towards the community and environment for mutual benefit. The Company recognizes the importance of being a good corporate citizen in steering its business as well as delivering its obligations in social welfare of its staff and community in general. Particular attention is given to protect the environment of the local community by planting trees. Additionally, local community benefits from the strategy of employing more staff at our plant site from surrounding areas.

DIRECTORS' REMUNERATION

The remuneration of Board members is fixed by the Board itself. A formal directors' remuneration policy approved by the Board is in place. The policy states procedure for remuneration to Directors in accordance with requirements of the Companies Act 2017 ('the Act'), and the Listed Companies Code of Corporate Governance Regulations, 2019 ('the Regulations').

RELATED PARTYTRANSACTIONS

The transactions with related parties are conducted in ordinary course of business on an arm's length basis. In accordance with the requirements of the Act and the Regulations, the Board of Directors have approved a policy for related party transactions. The Company has made appropriate disclosure of the related party transactions in the condensed interim financial statements annexed with this report.

FUTURE OUTLOOK

During the previous year, as a result of the negotiations between public and private sector IPPs and the Government of Pakistan, tariffs of various IPPs were reduced and the Agreements of some IPPs were terminated. Your company's subsidiary, RPPL, was one of the IPPs whose Agreements were terminated as a result of negotiations with the Task Force, and its complex was handed over to NPPMCL. Resultantly, RPPL will no longer be able to generate operational revenue in the future.

Your Company's PPA with CPPA, based on a take-and-pay arrangement, has been subjected to a serious challenge of meeting its fixed costs due to zero dispatch from the off-taker during the last few years. During the previous fiscal year, upon approval from the shareholders, the Company has submitted request for early termination / retirement of its Agreements with the Government. Subsequent to termination of the Agreements, the Company will evaluate future course of action. In the meanwhile, the Company remains a going concern due to future dividend income from RPPL.

ACKNOWLEDGEMENT

The Board remains grateful to its employees and management for their continued dedication and commitment and for placing their confidence and trust to steer the Company in these challenging times.

Umer Shehzad Sheikh

For and on behalf of the Board

Chief Executive Date: April 21, 2026 Place: Lahore.

Farooq Nazir

Director

07

08

09

10

11

ALTERN ENERGY LIMITED CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

Authorized share capital

400,000,000 (June 30, 2025: 400,000,000) ordinary shares of Rs. 10 each

Issued, subscribed and paid up share capital 363,380,000 (June 30, 2025: 363,380,000) ordinary shares of Rs. 10 each

Capital reserve: Share premium Revenue reserve: Un-appropriated profit

NON-CURRENT LIABILITIES

Employee benefit obligations

CURRENT LIABILITIES

Trade and other payables Dividend payable Unclaimed dividends Provision for taxation - net

CONTINGENCIES AND COMMITMENTS

Note

5

Audited June 30, 2025

Un-Audited March 31, 2026

(Rupees in th

ousand)

4,000,000

4,000,000

3,633,800

41,660

30,975

3,706,435

3,633,800

41,660

192,002

3,867,462

11,988

10,783

25,681

598,245

4,476,490

The annexed notes 1 to 22 form an integral part of these condensed interim unconsolidated financial statements.

Chief Executive

12

Chief Financial Officer

Director

AS AT MARCH 31, 2026

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment Intangible assets

Long term investment

Long term security deposits

CURRENT ASSETS

Stores and spares Trade debts - secured

Loans, advances, prepayments and other receivables

Short term investments Bank balances

Note

Un-Audited March 31, 2026

Audited June 30, 2025

(Rupees in thousand)

3,521,100

3,537,129

223,004

939,361

4,476,490

6

7

8

9

10

Chief Executive

Chief Financial Officer

Director

13

ALTERN ENERGY LIMITED CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED MARCH 31, 2026

Revenue Direct costs

Gross Loss Administrative expenses Other income Finance cost

(Loss)/ profit before income tax and final tax

Taxation - final tax

T

Note

11

12

13

14

period ended March 31,

2025

thousand)

-(70,325)

(70,325)

(33,557)

5,941,533

(3,288)

5,834,364

(19,229)

(Loss) / profit before income tax for the period

Taxation - income tax

(Loss) / profit after taxation

(Loss) / earnings per share - basic and diluted - Rupees

5,815,135

(3)

5,815,132

16.00

The annexed notes 1 to 22 form an integral part of these condensed interim unconsolidated financial statements.

Chief Executive

Chief Financial Officer

Director

14

ALTERN ENERGY LIMITED CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED MARCH 31, 2026

(Loss) / profit for the period

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Items that may be reclassified subsequently to profit or loss

Total comprehensive (loss) / income for the period

The annexed notes 1 to 22 form an integral part of these condensed interim unconsolidated financial statements.

Chief Executive

Chief Financial Officer

Director

15

ALTERN ENERGY LIMITED CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE NINE-MONTH PERIOD ENDED MARCH 31, 2026

Capital reserve Revenue reserve

The annexed notes 1 to 22 form an integral part of these condensed interim unconsolidated financial statements.

Chief Executive

16

Chief Financial Officer

Director

ALTERN ENERGY LIMITED CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE NINE-MONTH PERIOD ENDED MARCH 31, 2026

CASH FLOWS FROM OPERATING ACTIVITIES

Cash used in operations

Finance costs paid

Income tax and final tax paid Employee benefit obligations paid

Net cash outflow from operating activities

Note

March 31,

March 31,

2026 2025

(Rupees in thousand)

(108,967)

(86,183)

(6,151)

(21,828)

(115,118)

(108,011)

15

CASH FLOWS FROM INVESTING ACTIVITIES

Payment for property, plant & equipment and intangible assets Profit on short term investments received

Dividend received from PMCL (wholly owned subsidiary) Profit on bank deposits received

The annexed notes 1 to 22 form an integral part of these condensed interim unconsolidated financial statements.

Chief Executive

Chief Financial Officer

Director

17

ALTERN ENERGY LIMITED NOTES TO AND FORMING PART OF THE CONDENSED INTERIM UNCONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED MARCH 31, 2026

1.

1.1

1.2

1.3

1.4

1.5

1.6

18

LEGALSTATUS & NATURE OF BUSINESS

Altern Energy Limited (the 'Company') was incorporated in Pakistan as a public company limited by shares under the Companies Ordinance, 1984 (now the Companies Act, 2017 and hereinafter referred to as the 'Act') on January 17, 1995. It is a subsidiary of DEL Power (Private) Limited ('the Holding Company'). The Ultimate Parent of the Company is DEL Processing (Private) Limited. The Company's ordinary shares are listed on the Pakistan Stock Exchange. The registered office of the Company is situated at Descon Headquarters, 18 km, Ferozepur Road, Lahore and the Company's thermal power plant is located near Fateh Jang, District Attock, Punjab.

The principal activity of the Company is to build, own, operate and maintain a gas fired power plant having gross capacity of 32 Mega Watts (June 30, 2025: 32 Mega Watts). The Company achieved Commercial Operations Date ('COD') on June 6, 2001. The Company has a Power Purchase Agreement ('PPA') with its sole customer, Central Power Purchasing Agency (Guarantee) Limited ('CPPA') for thirty years which commenced from the COD. The Company also holds direct and indirect investments in other companies engaged in power generation as detailed in Note 8 to these condensed interim unconsolidated financial statements.

The Company's Gas Supply Agreement ('GSA') with Sui Northern Gas Pipelines Limited ('SNGPL') expired on June 30, 2013. Thereafter, the Company signed a Supplemental Deed dated March 17, 2014 with SNGPL, whereby SNGPL agreed to supply gas to the Company on as-and-when available basis till the expiry of the PPA on June 5, 2031. The Ministry of Petroleum and Natural Resources (now Ministry of Energy, Petroleum Division), empowered for Re-liquefied Natural Gas ('RLNG') allocation by the Economic Coordination Committee ('ECC') of the Federal Cabinet, issued an allocation of 6 MMSCFD of RLNG to the Company on April 28, 2017 and advised the Company and SNGPL to negotiate a new GSA. While the long term GSA is yet to be negotiated, in July 2019, the ECC of the Cabinet approved the summary of interim tri-partite GSA. Currently, the Company, SNGPL and CPPA are in the process of executing an interim GSA for supply of RLNG. Under the interim GSA, RLNG is being supplied on as-and-when available basis till the execution of a long term GSAbetween the parties.

The Company's Generation License issued by the National Electric Power Regulatory Authority ('NEPRA') expired on September 21, 2021, and the Company applied for its renewal/extension from NEPRA , in line with the term of its PPA and Implementation Agreement ('IA') on August 31, 2021. On April 01, 2024, NEPRA granted the renewal of the Generation License to the Company for another term of ten (10) years from the date of expiry. Now, the term of the Generation License is extended till June 05, 2031, making it consistent with the terms of the PPA and the IA. As directed by NEPRA in its Determination, on May 10, 2024 the Company applied for the Licensee Proposed Modification ('LPM') with NEPRA to match the installed capacity in the Generation License with the capacity mentioned in the PPAand the IA, which is still in process.

The Company received a recommendation from Islamabad Electric Supply Company ('IESCO') with respect to the upgradation of 66 kV switchyard of the Company in order to synchronize the existing network with the IESCO system. This will allow the Company to fully transmit the generated power. National Transmission and Despatch Company Limited ('NTDC') has upgraded one transmission line of Jand-Bassaal network from 66 kV to 132 kV. Resultantly, the Company can only transmit electricity generated by its complex through transmission network of Fateh Jang 66 kV grid station of IESCO. Whenever NTDC upgrades the Fateh Jang grid station in future, the Company will be required to upgrade its own 66 kV switchyard to 132 kV.

During the previous year, Company's subsidiary, Rousch (Pakistan) Power Limited ('RPPL') was approached by the Government of Pakistan for Termination of its PPA entered into with Central Power Purchasing Agency (Guarantee) Limited ('CPPA'), the Implementation Agreement ('IA') entered into with the President of the Islamic republic of Pakistan, and the Guarantee issued by the Islamic Republic Of Pakistan ("the Agreements"). On November 11, 2024, RPPL signed a Negotiated Settlement Agreement ('NSA') for Termination of the Agreements. As per terms of the NSA, CPPA

paid the agreed outstanding receivables to RPPL by December 31, 2024, and RPPL handed over the Complex to the Government of Pakistan's designated entity National Power Parks Management Company Limited ('NPPMCL').

1. the Guarantee issued by the Government of Pakistan ("Guarantee"), (the PPA, IA and the Guarantee are hereinafter collectively referred to as the "Agreements"). On May 09, 2025, the Company submitted a formal request to CPPA for early retirement of the Agreements. On November 24, 2025, the Company initialled a "Termination Agreement" ("TA"), to be executed in due course by the Company, the President of the Islamic Republic of Pakistan ("GOP") and CPPA. The Federal Cabinet has approved the draft of the TA and has forwarded the same to the relevant counter parties for further process. Once the TA is executed by the counter parties, the following agreements shall stand terminated with mutual consent of the relevant parties:

   1. the Implementation Agreement executed with the GOP,

   2. the Guarantee issued by the GOP.

   3. the Power Purchase Agreement executed with CPPA, and

   4. the Gas Supply Agreement executed with SNGPL.

These conditions indicate a material uncertainty on the Company's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, these condensed interim unconsolidated financial statements have been prepared on going concern basis, as RPPL is expected to generate sufficient income on its investments to support the Company in meeting its expenditures including tax contingencies., based on the cash flow projections of the Company and RPPL.

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

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

These condensed interim unconsolidated financial statements are un-audited and are being submitted to the members as required by section 237 of the Act.

The Company is required to issue condensed interim consolidated financial statements along with its condensed interim separate financial statements in accordance with the requirements of accounting and reporting standards as applicable in Pakistan. Condensed interim consolidated financial statements are prepared separately.

19

3.

3.1

3.2

3.3

4.

5.

5.1

MATERIAL ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of these condensed interim unconsolidated financial statements are the same as those applied in the preparation of preceding annual published financial statements of the Company for the year ended June 30, 2025.

Standards, amendments to published standards and interpretations that are effective in the current period

Certain standards, amendments and interpretations to International Financial Reporting Standards ('IFRS') are effective for accounting period beginning on July 1, 2025, but are considered not to be relevant or to have any significant effect on the Company's operations (although they may affect the accounting for future transactions and events) and are, therefore, not detailed in these condensed interim unconsolidated financial statements.

Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company

There are certain standards, amendments to the accounting standards and interpretations that are mandatory for the Company's accounting periods beginning on or after July 01, 2025 but are considered not to be relevant or to have any significant effect on the Company's operations and are, therefore, not detailed in these condensed interim unconsolidated financial statements.

ACCOUNTING ESTIMATES

The preparation of these condensed interim unconsolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing these condensed interim unconsolidated financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual financial statements of the Company for the year ended June 30, 2025.

CONTINGENCIESAND COMMITMENTS

Contingencies

There are no material changes in contingencies and commitments as disclosed in the notes to the financial statements for the year ended June 30, 2025, except for the following:

5.1.1

20

In respect of tax years 2010, 2011, 2012 and 2013, the Additional Commissioner Inland Revenue (ACIR) raised demands aggregating Rs

9.30 million under section 122(5A) of the Income Tax Ordinance, 2001 which mainly related to subjecting capacity price to minimum taxation under section 113 of the Income Tax Ordinance, 2001. The Company preferred an appeal before the Commissioner Inland Revenue (Appeals)(CIR(A)) against the impugned tax demand who decided the appeal in favour of the Company thereby deleting the alleged tax demand. The tax department filed an appeal before the Appellate Tribunal Inland Revenue (ATIR) against the order of CIR(A). On August 25, 2025, the ATIR decided the case in favour of the Company. The tax department has filed an Appeal before the Honorable Lahore High Court, and the case is pending adjudication.

The Company has not made any provision against the above demand as the case has already been decided in Company's favour on merits the management is confident that the ultimate outcome of the appeal would be in favour of the Company, inter alia on the basis of the advice of the tax consultant and the relevant law and facts.

Audited June 30,

Un-Audited March 31,

2026

(Rupees in

2025

thousand)

9,300

9,300

5.1.2

5.1.3

In respect of tax years 2024, in May 2025 the ACIR issued a Notice under section 122(9) of the Income Tax Ordinance, wherein explanation was sought for tax charged at reduced rate on dividend, and short paid tax on dividend from investment in mutual funds. The Company submitted reply in July 2025.

The principal matter in dispute relates to the rate of tax applicable on dividend income received from an Independent Power Producer. The tax authorities have disallowed the application of the reduced dividend tax rate of 7.5% through order dated December 31, 2025, contending that the statutory condition regarding pass through and reimbursement of dividend tax by Central Power Purchasing agency was not fulfilled, and have accordingly subjected such dividend income to tax at the standard rate of 15%. In addition, a portion of withholding tax credits claimed against dividend has been disallowed due to alleged non verification of corresponding CPRs .The Company filed an appeal against the impugned order before the CIR(A) on January 28, 2026. Subsequently, the CIR(A) vide order dated March 30, 2026, confirmed the demand previously raised by the ACIR. Aggrieved, the Company filed an appeal before the ATIR on April 6, 2026, along with a stay application. The ATIR, vide its interim order dated April 7, 2026, has granted a stay against the recovery of the alleged demand for a period of 30 days, and the matter is pending adjudication before the ATIR.

Based on the advice of the Company's tax advisor, the management believes that there are meritorious grounds to defend the Company's stance on this matter. Consequently, no provision has been made in these condensed interim unconsolidated financial statements.

Power Management Company (Private) Limited PMCL) - wholly owned subsidiary:

In respect of tax year 2019, the ACIR passed an Order under section 122(5) of the Income Tax Ordinance, 2001, creating income tax demand amounting to Rs. 30.99 million which is related to chargeability of Super Tax under section 4B of the Income Tax Ordinance, 2001. Aggrieved with the said Order, the Company filed an appeal before the CIR (A), where relief was not granted. Aggrieved with the Order of CIR(A), the Company preferred an Appeal before the ATIR. On August 24, 2024, the ATIR decided the case in favour of the company. Against the ATIR's order, the tax department filed an appeal before the LHC.

In respect of tax year 2022, the Deputy Commissioner Inland Revenue (DCIR) passed an Order under section 4C of the Income Tax Ordinance, creating a demand of Rs. 293.17 million. Aggrieved with the said Order, the Company preferred an Appeal before the CIR(A), where the relief was not granted on January 8, 2024. The Company filed an Appeal with ATIR against the decision of the CIA(A).

The Supreme Court of Pakistan, while taking Suo Moto Notice, called upon all the cases pertaining to the chargeability of Super Tax under Section 4B and Section 4C for adjudication. Thereafter, upon constitution of the Federal Constitutional Court of Pakistan, the cases pertaining to Super Tax were transferred from the Supreme Court to the Federal Constitutional Court.

Un-Audited Audited March 31, June 30,

2026 2025

(Rupees in thousand)

389,568 -

21

Un-Audited Audited March 31, June 30,

2026 2025

(Rupees in thousand)

Order upheld the constitutional validity of Super Tax imposed under

million pertaining to Super Tax under section 4C of the Income Tax DCIR passed an Order amounting to Rs. 687 million pertaining to Super 2025.

Petition before the Federal Constitution Court. In the meanwhile, the

favour of SNGPL for supply of RLNG for which payments are made in

5.2

Commitments - Nil

Un-Audited Audited

March 31, June 30,

2026 2025

6 PROPERTY, PLANT AND EQUIPMENT

Note

(Rupees in thousand)

This includes upgradation of ERP system that has been implemented by Descon Corporation (Private) Limited, a related party on the basis of common directorship, under a Service Level Agreement with the Group.

8.1

The Company directly holds 100% shares in its wholly owned subsidiary, PMCL. PMCL is a private company limited by shares incorporated in Pakistan to invest, manage, operate, run, own and build power projects. The investment in PMCL is accounted for using cost method in the unconsolidated financial statements of the Company. PMCL, in turn, directly holds 67.31% (June 30, 2025: 59.98%) shares in Rousch (Pakistan) Power Limited ('RPPL'). RPPL is an unlisted public Company limited by shares incorporated in Pakistan.

The principal objective of RPPL is establishing, operating and managing the power plant and to sell electric power. RPPL had been engaged in the sale of electricity and ownership, operation, and maintenance of a 450 Megawatt gas based combined cycle thermal power plant to CPPA. As disclosed in Note 1.6, RPPL's Agreements were terminated, and its Complex was handed over to NPPMCL during the previous year after receiving its receivables from CPPA. Currently, RPPL no longer owns the Power Plant. However, RPPL has sufficient funds to meet its ongoing obligations. Since liquid funds available with RPPL are higher than carrying value of the investment in the Company's statement of financial position, the management has not recorded any impairment on investment in these condensed interim unconsolidated financial statements.

1. TRADE DEBTS - SECURED

   Considered good Considered doubtful

   Impairment of receivables

   Note

   9.1

   9.1

   Audited June 30, 2025

   Un-Audited March 31, 2026 (Rupees in -

   40,386

   40,386 (40,386)

   -

   thousand)

   -

   -

   -

   -

   -

   9.1

   The Company raised an invoice to CPPA on account of RLNG Tariff Differential Cost following finalisation of RLNG rates by Oil and Gas Regulatroy Authority ('OGRA'). As disclosed in note 1.7, the Company is in the process of executing a Termination Agreement ("TA") with the relevant counterparties. Pursuant to the terms of the TA, the Company will be foregoing its claim amounting to Rs. 40.3 million pertaining to RLNG Tariff Differential Cost. Therefore, this receivable has been impaired.

2. SHORT TERM INVESTMENTS

   Mutual Funds

   Term Deposit Certificates ('TDRs')

   10.1

   10.2

   670,300

   4,020 130,718

   134,738

   -

   670,300

   10.1

   10.2

   This represents investment in units of mutual funds of NBP Fund Management Limited that are classified as fair value through profit or loss.

   This represents TDR placement with Habib Metropolitan Bank Limited amounting Rs. 130.72 million (June 30, 2025: Nil)

   Un-Au Three-month March 31, 2026 (Rupees in - -	dited period ended March 31, 2025 thousand) - -	Un-Au Nine-month March 31, 2026 (Rupees in 40,386 (6,161)	dited period ended March 31, 2025 thousand) - - -
   -	-	34,225

3. REVENUE

   Energy purchase price - gross Sales tax

   Energy purchase price - net

   23

   11.1

   This represents EPP invoice raised to CPPA on account of RLNG Tariff Differential invoice raised by SNGPL for the period from October 2017 to June 2020, following finalisation of RLNG rates by OGRA.

   Un-Audited Un-Audited

4. DIRECT COSTS

   Note

   Three-month period ended Nine-month period ended March 31, March 31, March 31, March 31,

   2026 2025 2026 2025

   (Rupees in thousand) (Rupees in thousand)

   RLNG cost 12.1 1,939 115 39,533 343

   Depreciation on operating fixed assets	5,295	5,367	15,848	15,282
   Stores & spares consumed	565	308	3,488	1,762
   Purchase of energy	1,180	1,162	3,599	4,005
   Operation & maintenance	11,292	10,754	33,874	32,261
   Security	3,272	3,028	9,736	9,014
   Salaries, benefits & other allowances	446	483	1,412	1,341
   Insurance	868	940	2,749	2,897
   Travelling & conveyance	202	134	612	347
   Licensing fee	840	830	2,543	2,925
   Miscellaneous	121	39	140	148
   	26,020	23,160	113,534	70,325

   1. This represent cost of invoices issued by SNGPL following finalization of RLNG rates by OGRA.

13.1

24

As disclosed in note 1.7 and 9.1, the Company is in the process of executing a Termination Agreement ("TA") with the President of the Islamic Republic of Pakistan (GOP), the Central Power Purchasing Agency (Guarantee) Limited, and other relevant counterparties. Pursuant to the terms of the TA, the Company will be foregoing its claim amounting to Rs. 40.3 million pertaining to RLNG Tariff Differential Cost. Therefore, this receivable has been impaired.

15 CASH USED IN OPERATIONS

(Loss) / profit before income tax and final tax Adjustment for non cash charges and other items:

-Depreciation on operating fixed assets

-Dividend income from PMCL (wholly owned subsidiary)

-Amortization of intangible assets

-Provision for employee retirement obligations

-Profit on short term investments

-Provision for doubtful debts

-Liabilities written back

-Profit on bank deposits

-Finance cost

Loss before working capital changes

Effect on cashflow due to working capital changes:

Decrease / (Increase) in current assets

Stores and spares

Loans, advances, prepayments, and other receivables Trade debts - secured

(Decrease) / Increase in current liabilities

Trade & other payables

Cash used in operations

dited period ended

March 31,

2025

thousand)

5,834,364

16,149

(5,864,253)

146

1,564

(76,871)

1,137

361

(49)

3,288

(5,918,528)

(84,164)

289

(4,750)

7,395

2,934

(4,953)

(86,183)

25

16

17 TRANSACTIONSAND BALANCES WITH RELATED PARTIES

The related parties include the Holding Company and subsidiaries of the Holding Company, group companies, related parties on the basis of common directorship and key management personnel of the Company and its Holding Company. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, including any director (whether executive or otherwise) of the Company. The Company in the normal course of business carries out transactions with various related parties. Significant transactions and balances with related parties are as follows:

26

All transactions with related parties have been carried out on mutually agreed terms and conditions and in compliance with applicable laws and regulations.

There are no transactions with key management personnel other than under the terms of employment.

18

18.1

18.2

-

FINANCIALRISK MANAGEMENT

Financial risk factors

The Company'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 Company's overall risk management programme 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 Company's finance department under policies approved by the Board of Directors ('BOD'). The Company's finance department evaluates and hedges financial risks based on principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity, provided by the BOD. All treasury related transactions are carried out within the parameters of these policies.

These condensed interim unconsolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements as at June 30, 2025.

There have been no changes in the risk management department or in any risk management policies since the year ended June 30, 2025.

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 different levels for fair value estimation used by the Company have been defined as follows:

The fair value of financial instruments traded in active markets (such as publicly traded equity securities) is based on quoted (unadjusted) market prices at the end of the reporting period. The quoted market price used for financial assets held by the Company is the current bid price. These instruments are included in Level 1.

27

• The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to determine fair value of an instrument are observable, the instrument is included in Level 2.

• If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments.

The following table presents the Company's financial assets measured and recognised at fair value at March31, 2026 and June 30, 2025 on a recurring basis:

Level 1 Level 2 Level 3 Total

There was a transfer from Level 1 to Level 2 during the period, arising from the reclassification of investments from mutual funds to Term Deposit Receipts (TDRs). TDRs are valued at face value, which is considered a Level 2 input. There were no transfers between Levels 2 and 3, and no changes in valuation techniques during the period. The Company's policy is to recognize transfers into and out of fair value hierarchy levels as at the end of the reporting period.

The fair values of investments in units of mutual funds are determined based on their net asset values as published at the close of each business day.

The carrying values of all financial assets and liabilities reflected in the financial statements approximate their fair values. Fair value is determined on the basis of objective evidence at each reporting date.

1. DISCLOSURE REQUIREMENTS FOR THE COMPANY NOT ENGAGED IN SHARIAH NON-PERMISSIBLE BUSINESSACTIVITIESAS ITS CORE BUSINESS

   28

   Un-Audited Audited March 31, June 30,

   2026 2025

   (Rupees in thousand)

   1. Disclosure in relation to condensed interim statement of financial position - Liability side:

      Not applicable Not applicable

Financing (Long Term, Short term or lease financing) obtained as per Islamic Mode Interest or markup accrued on any conventional loan or advance

Not applicable Not applicable

144,834

Not applicable

1. 1. Disclosure in relation to condensed interim statement of comprehensive income:

      Un-Audited Nine-month period ended

      March 31, March 31,

      2026 2025

      (Rupees in thousand)

      Revenue earned from Shariah compliant business 34,225 -

      Breakup of late payments or liquidated damages

      Not applicable

      Not applicable

      Gain and Dividend earned on Shariah Compliant Investment 3 3,014

      Profit earned from Shariah Compliant bank balances Exchange gain earned from actual currency Exchange gain earned using conventional derivative financial instruments Profit paid on Islamic mode of financing Total Interest earned on any conventional loan or advance Profit on short term investments

      Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

      Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

   2. Source and detailed breakup of other income, including breakup of other or miscellaneous portions of ther income into shariah-compliant and non-compliant income

      Shariah Compliant:

      Profit on short term investments	3	2,873
      Sale of scrap	517	-
      Liabilities written back	-	361
      Non Shariah Compliant: Return on bank deposits	4,647	49
      Profit on short term investments	2,690	73,998

      29

2. CORRESPONDING FIGURES

   In order to comply with the requirements of IAS 34 - 'Interim Financial Reporting', the condensed interim statement of financial position has been compared with the balances of annual audited financial statements of preceding financial year, whereas, the condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows have been compared with the balances of comparable period of immediately preceding financial year.

   Corresponding figures have been re-arranged wherever necessary to reflect more appropriate presentation of events and transactions for the purpose of comparison. However, no significant rearrangements have been made.

3. ROUNDING OFAMOUNTS

   All amounts disclosed in the condensed interim unconsolidated financial statements and notes have been rounded off to the nearest thousand Rupees unless otherwise stated.

4. DATE OFAUTHORIZATION OF ISSUE

These condensed interim unconsolidated financial statements were authorized for issue on April 21, 2026 by the Board of Directors of the Company.

Chief Executive

Chief Financial Officer Director

30

ALTERN ENERGY LIMITED AND ITS SUBSIDIARIES CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital

400,000,000 (June 30, 2025: 400,000,000)

ordinary shares of Rs 10 each

Issued, subscribed and paid up share capital 363,380,000 (June 30, 2025: 363,380,000)

ordinary shares of Rs 10 each

Capital reserve: Share premium Revenue reserve: Un-appropriated profits

Attributable to owners of the Parent Company

Non-controlling interests

Total equity

NON-CURRENT LIABILITIES

Employees' benefit obligations Deferred taxation

CURRENT LIABILITIES

Trade and other payables Unclaimed dividends Dividends Payable Provision for taxation

CONTINGENCIES AND COMMITMENTS

Note

5

The annexed notes 1 to 23 form an integral part of these condensed interim consolidated financial statements.

Chief Executive

Chief Financial Officer

32

Director

AS AT MARCH 31, 2026

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment Intangible assets

Long term security deposits

CURRENT ASSETS

Store, spares & loose tools Trade debts - secured Loans, advances, prepayments

and other receivables Short term investments Bank balances

Note

6

7

8

9

Chief Executive

Chief Financial Officer

Director

33

ALTERN ENERGY LIMITED AND ITS SUBSIDIARIES CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED MARCH 31, 2026

period ended March 31,

2025

Note thousand)

Revenue 10

Direct costs 11

Gross (loss) / profit

Administrative expenses 12

Other expenses 13

Other income 14

Finance cost 15

Profit / (loss) before income tax and final tax

Taxation - final tax 16

(Loss) / profit before income tax for the period

Taxation - income tax 16

(Loss) / profit for the period

Attributable to:

Equity holders of the Parent Company Non-controlling interest

(Loss) / earnings per share attributable to equity holders of the Parent Company during the period -basic and diluted

7,970,077

(4,167,822)

3,802,255

(286,980)

(12,031,626)

881,670

(92,225)

(7,726,906)

(558,806)

(8,285,712)

766,300

(7,519,412)

(4,369,844)

(3,149,568)

(7,519,412)

Rupees

The annexed notes 1 to 23 form an integral part of these condensed interim consolidated financial statements.

(12.03)

Chief Executive

Chief Financial Officer

Director

34

ALTERN ENERGY LIMITED AND ITS SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED MARCH 31, 2026

(Loss) / profit for the period

Other comprehensive income / (loss):

Items that may be reclassified subsequently to profit or loss

Items that will not be reclassified subsequently to profit or loss

Total comprehensive (loss) /income for the period

Attributable to: Equity holders of the Parent Company Non-controlling interest

p period ended

March 31, 2025

t thousand)

(7,519,412)

-(7,519,412)

(4,369,844)

(3,149,568)

(7,519,412)

The annexed notes 1 to 23 form an integral part of these condensed interim consolidated financial statements.

Chief Executive

Chief Financial Officer

Director

35

ALTERN ENERGY LIMITED AND ITS SUBSIDIARIES CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE NINE-MONTH PERIOD ENDED MARCH 31, 2026

Attributable to equity holders of Parent Company

Capital reserve Revenue reserve

Note

Balance as on July 1, 2024 (Audited) 3,633,800 41,660 12,918,847 11,200,008 27,794,315

Loss for the period Other comprehensive income / (loss) for the period

Total comprehensive loss for the period - - (4,369,844) (3,149,568) (7,519,412)

Transactions with owners in their capacity as owners:

1st Interim cash dividend @ Rs 5.90 per ordinary share

by Parent Company (2,143,942) - (2,143,942)

2ndt Interim cash dividend @ Rs 9.70 per ordinary share

by Parent Company (3,524,786) - (3,524,786)

The annexed notes 1 to 23 form an integral part of these condensed interim consolidated financial statements.

Chief Executive

36

Chief Financial Officer

Director

ALTERN ENERGY LIMITED AND ITS SUBSIDIARIES

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE NINE-MONTH PERIOD ENDED MARCH 31, 2026

The annexed notes 1 to 23 form an integral part of these condensed interim consolidated financial statements.

Chief Executive

Chief Financial Officer

Director

37

ALTERN ENERGY LIMITED AND ITS SUBSIDIARIES

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE THREE-MONTH AND NINE-MONTH PERIOD ENDED MARCH 31, 2026

1. THE GROUPAND ITS OPERATIONS

Altern Energy Limited ('the Parent company') and its subsidiaries, Power Management company (Private) Limited and Rousch (Pakistan) Power Limited (together, 'the Group') are engaged in power generation activities. The registered office of AEL and PMCL is situated at Descon Headquarters, 18 km Ferozepur Road, Lahore. The registered office of RPPL is situated at 403-C, 4th Floor, Evacuee Trust Complex, Sector F-5/1, Islamabad.

1.1

The Group is structured as follows:

Parent company:

- Altern Energy Limited, the Parent Company (hereinafter referred to as AEL)

Subsidiary companies:

(Effective holding percentage) Un-audited Audited

March 31, June 30,

2026 2025

1.1.1

1.2

1.2.1

1.2.2

1.2.3

During the previous year, a Put Option Agreement was executed between Siemens Project Ventures GmbH, ESB International Luxembourg S.A. ('ESBI'), Power Management Company (Pvt) Limited ('PMCL'), and Rousch (Pakistan) Power Limited ('RPPL'). Pursuant to this agreement, ESBI exercised its Put Option, requiring PMCL to purchase and acquire all ESBI-held shares in RPPL at a Put Option Price of USD 1.

In July 2025, the transfer of all ESBI shares was completed. Resultantly, the equity holders of the Parent Company hold 67.31% (June 30, 2025: 59.98%) shares in RPPL, whereas non-controlling shareholders hold 32.69% (June 30, 2025: 40.016%) shares in RPPL.

AEL( the Parent Company)

AEL was incorporated in Pakistan as a public company limited by shares under the Companies Ordinance, 1984 (now, the Companies Act, 2017) on January 17, 1995. AEL's ordinary shares are listed on the Pakistan Stock Exchange Limited.

The principal activity of AEL is to generate and supply electricity to its sole customer, Central Power Purchasing Agency (Guarantee) Limited ('CPPA') from its gas fired power plant having gross capacity of 32 Mega Watts (June 30, 2025: 32 Mega Watts). AEL achieved Commercial Operations Date ('COD') on June 6, 2001. AEL has a Power Purchase Agreement ('PPA') with CPPA for thirty years which commenced from the COD.

AEL's Gas Supply Agreement ('GSA') with Sui Northern Gas Pipelines Limited ('SNGPL') expired on June 30, 2013. Thereafter, AEL signed a Supplemental Deed dated March 17, 2014 with SNGPL, whereby SNGPL agreed to supply gas to AEL on as-and-when available basis till the expiry of the PPA on June 5, 2031. The Ministry of Petroleum and Natural Resources (now Ministry of Energy, Petroleum Division), empowered for Re-liquefied Natural Gas ('RLNG') allocation by the Economic Coordination Committee ('ECC') of the Federal Cabinet, issued an allocation of 6 MMSCFD of RLNG to AEL on April 28, 2017 and advised AEL and SNGPL to negotiate a new GSA. While the long term GSA is yet to be negotiated, in July 2019, the ECC of the Cabinet approved the summary of interim tri-partite GSA. Currently, AEL, SNGPL and CPPA are in the process of executing an interim GSA for supply of RLNG. Under the interim GSA, RLNG is being supplied on as-and-when available basis till the execution of a long term GSAbetween the parties.

38

1.2.4

1.2.5

1.2.6

1.2.7

1.3

AEL's Generation License issued by the National Electric Power Regulatory Authority ('NEPRA') expired on September 21, 2021, and it applied for its renewal/extension from NEPRA , in line with the term of its PPA and Implementation Agreement ('IA') . On April 01, 2024, NEPRA granted the renewal of the Generation License to AEL for another term of ten (10) years from the date of expiry. Now, the term of the Generation License is extended till June 05, 2031, making it consistent with the terms of the PPA and the IA. As directed by NEPRA in its Determination, on May 10, 2024 AEL applied for the Licensee Proposed Modification ('LPM') with NEPRA to match the installed capacity in the Generation License with the capacity mentioned in the PPAand the IA, which is still in process.

AEL received a recommendation from Islamabad Electric Supply Company ('IESCO') with respect to the upgradation of its 66 KV switchyard of AEL in order to synchronize the existing network with the IESCO system. This will allow AEL to fully transmit the generated power. National Transmission and Despatch Company Limited ('NTDC') has upgraded one transmission line of Jand-Bassaal network from 66 KV to 132 KV. Resultantly, AEL can only transmit electricity generated by its complex through transmission network of Fateh Jang 66 KV grid station of IESCO. Whenever NTDC upgrades the Fateh Jang grid station in future, AEL will be required to upgrade its own 66 KV switchyard to 132 KV.

As detailed in the ensuing paragraphs, during the previous year, RPPL was approached by the Government of Pakistan for Termination of its PPA entered into with Central Power Purchasing Agency (Guarantee) Limited , the Implementation Agreement ('IA') entered into with the President of the Islamic republic of Pakistan, and the Guarantee issued by the Islamic Republic Of Pakistan ("the Agreements"). On November 11, 2024, RPPL signed a Negotiated Settlement Agreement ('NSA') for Termination of the Agreements. As per terms of the NSA, CPPA paid the agreed outstanding receivables to RPPL by December 31, 2024, and RPPL handed over the Complex to the Government of Pakistan's designated entity National Power Parks Management Company Limited ('NPPMCL').

In view of continued operational losses suffered by AEL as a result of no dispatch demand from the off-taker during the past several years, on April 17, 2025, the shareholders of AEL upon recommendation of the Board of directors, decided to and authorised the company to submit an application for early termination / retirement of: (i) the PPA entered into with CPPA, (ii) the IA entered into with the President of Islamic Republic of Pakistan on behalf of the Government of Pakistan, and (iii) the Guarantee issued by the Government of Pakistan ("Guarantee"), (the PPA, IA and the Guarantee are hereinafter collectively referred to as the "Agreements"). On May 09, 2025, AEL submitted a formal request to CPPA for early retirement of the Agreements. On November 24, 2025, AEL initialled a "Termination Agreement" ("TA"), to be executed in due course by AEL, the President of the Islamic Republic of Pakistan ("GOP") and CPPA. The Federal Cabinet has approved the draft of the TA and has forwarded the same to the relevant counter parties for further process. Once the TA is executed by the counter parties, the following agreements shall stand terminated with mutual consent of the relevant parties:

1. the Implementation Agreement executed with the GOP,

2. the Guarantee issued by the GOP.

3. the Power Purchase Agreement executed with CPPA, and

4. the Gas Supply Agreement executed with SNGPL.

These conditions indicate a material uncertainty on the Group's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business. However, these condensed interim consolidated financial statements have been prepared on going concern basis, as RPPL is expected to generate sufficient income on its investments to support the parent company in meeting its expenditures including tax contingencies., based on the cash flow projections of the parent company and RPPL.

PMCL

PMCL was incorporated in Pakistan as a private company limited by shares under the Companies Ordinance, 1984 (now the Act) on February 24, 2006. PMCL is a wholly owned subsidiary of AEL. The principal objective of PMCL is to invest, manage, operate, run, own and build power projects. PMCL directly holds 67.31% shares (June 30, 2025: 59.98%) in RPPL as detailed in note 1.4 to these condensed interim consolidated financial statements.

39