AR T I S TIC D EN I M
HALF YEARLY REPORT DECEMBER 31, 2025
HALF YEARLY REPORT DECEMBER 31, 2025 CONTENTS COMPANY INFORMATION 2 DIRECTORS' REVIEW REPORT TO THE MEMBERS 3 INDEPENDENT AUDITORS' REVIEW REPORT TO THE MEMBERS 5 CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION 6 CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS 7 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 8 CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY 9 CONDENSED INTERIM STATEMENT OF CASH FLOWS 10 NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 11 | ||
ARTISTIC DENIM MILLS LIMITED | ||
HALF YEARLY REPORT
DECEMBER 31, 2025
COMPANY INFORMATION
BOard Of DirectOrsChief Executive Mr. Muhammad Faisal Ahmed
Chairman Mr. Muhammad Iqbal Ahmed
DirectOrs Mr. Muhammad YOusuf Ahmed Ms. Zahra Faisal Ahmed
Mr. Yazdani Zia
Mr. Muneer Ahmed
Mr. Muhammad Ozair Qureshi
Audit COnnitteeChairman Mr. Yazdani Zia
Members Mr. Muhammad Iqbal Ahmed Mr. Muneer Ahmed
Hunan ResOurce and RenuneratiOn COnnitteeChairman Mr. Muneer Ahmed
Members Mr. Muhammad Faisal Ahmed Ms. Zahra Faisal Ahmed
Chief Financial Officer Mr. Sagheer Ahmed COnpany Secretary Mr. Muhammad Ozair Qureshi Chief Internal AuditOr Mr. Muhammad Rashid Mughal AuditOrs M/s. Reanda HarOOn Zakaria Aamir Salman Rizwan & COmpany Chartered AccOuntants Legal AdvisOr MOnawwer Ghani AdvOcate Share Registrar M/s F. D. Registrar Services (Pvt.) Limited 17th FlOOr, Saima Trade TOwer-A,I.I. Chundrigar ROad, Karachi.
Tel: (+92-21) 35478192-3 / 32271905-6
Bankers Allied Bank LimitedBank Al Habib Limited Bank Alfalah Limited
BankIslami Pakistan Limited Faysal Bank Limited
Habib Bank Limited
Habib MetrOpOlitan Bank Limited Meezan Bank Limited
NatiOnal Bank Of Pakistan
Standard Chartered Bank (Pakistan) Limited United Bank Limited
WOOri Bank
Registered Office PlOt NO. 5-9, 23-26, SectOr 16, KOrangi Industrial Area, Karachi.UAN: 111 236 236, Fax NO. 3505 4652
https://www.admdenim.cOm
Mills KOrangi Industrial Area, Karachi.02 ARTISTIC DENIM MILLS LIMITED
HALF YEARLY REPORT DECEMBER 31, 2025 DIRECTORS' REVIEW TO The SharehOlders, Artistic Denim Mills Limited On behalf Of the BOard Of DirectOrs, we are pleased tO present the DirectOrs' Review tOgether with the unaudited cOndensed interim financial statements Of Artistic Denim Mills Limited ("the COmpany") fOr the half year ended December 31, 2025. FINANCIAL HIGHLIGHTS FOR THE PERIOD UNDER REVIEW A summary Of the COmpany's financial perfOrmance fOr the periOd under review, alOng with a cOmparisOn tO the cOrrespOnding periOd Of the previOus year, is presented belOw: Decenber 31, 2025 Decenber 31, 2024 Rs. in ('000') Rs. in ('000') Sales - net 7,473,964 9,339,708 GrOss prOfit 509,857 753,150 Finance cOsts 408,293 327,822 Net (lOss) / prOfit (294,242) 15,436 (LOss)/earnings per share (Rs. per share) (3.50) 0.18 During the half-year ended December 31, 2025, the COmpany recOrded net sales Of Rs. 7,474 milliOn, cOmpared tO Rs. 9,340 milliOn in the cOrrespOnding periOd last year. The decline was primarily attributable tO the subdued ecOnOmic cOnditiOns, heightened pricing pressures in expOrt markets, and a relatively stable exchange rate. The COmpany recOrded a grOss prOfit Of Rs. 509.857 milliOn, cOmpared tO Rs. 753.150 milliOn fOr the cOrrespOnding periOd Of last year. This decline was mainly due tO a significant increase in prOductiOn cOsts, primarily driven by escalating energy cOsts, the impOsitiOn Of Off-the-grid levy and an increase in minimum wage rates. Finance cOsts fOr the periOd increased tO Rs. 408.293 milliOn, cOmpared tO Rs. 327.822 milliOn in the cOrrespOnding periOd last year, primarily due tO wOrking capital requirements. As a result, the COmpany repOrted a net lOss after tax Of Rs. 294.242 milliOn, as against a net prOfit after tax Of Rs. 15.436 milliOn in the cOrrespOnding periOd Of the previOus year. AccOrdingly, lOss per share stOOd at Rs. 3.50, cOmpared with earnings per share Of Rs. 0.18 repOrted in the same periOd last year. OUTLOOK AND CHALLENGES The periOd under review cOntinued tO reflect a challenging Operating envirOnment fOr Pakistan's textile industry. GlObally, slOwdOwn in ecOnOmic activity, OngOing trade tensiOns, and new tariff measures-particularly by the United States-disrupted supply chains and weakened demand, prOmpting cautiOus purchasing behaviOr frOm internatiOnal buyers. These pressures have intensified pricing cOnstraints as glObal brands increasingly shift the tariff burden OntO suppliers. | ||
ARTISTIC DENIM MILLS LIMITED 03 | ||
HALF YEARLY REPORT
DECEMBER 31, 2025
Pakistan's expOrt perfOrmance remained under pressure during July-December 2025, with merchandise expOrts declining by 8.7% tO $15.184 billiOn, while impOrts increased by 11.28%, widening the trade deficit by 34.57% tO $19.204 billiOn. The textile sectOr, which cOntributes Over half Of natiOnal expOrts, alsO recOrded a sustained dOwnturn, with textile expOrts falling by 8.11% year-On-year in December 2025, marking the fifth cOnsecutive mOnthly decline.
DOmestically, while macrOecOnOmic indicatOrs shOwed signs Of stabilizatiOn with declining inflatiOn and lOwer interest rates, the sectOr remained cOnstrained by structural disadvantages, including high taxatiOn, elevated energy tariffs, declining cOttOn prOductiOn, delayed refunds, and incOnsistent pOlicy measures. The impOsitiOn Of the Captive POwer Plant (CPP) Levy have further increased the cOst burden and impacted expOrt cOmpetitiveness against regiOnal peers.
Despite these challenges, the Management remains fOcused On strengthening OperatiOnal resilience thrOugh cOst OptimizatiOn, imprOved capacity utilizatiOn and strategic custOmer and market diversificatiOn. The COmpany is alsO actively investing in renewable energy initiatives, including sOlar pOwer prOjects, tO enhance efficiency, reduce reliance On cOnventiOnal energy sOurces, and suppOrt sustainability gOals. While the near-term OutlOOk remains cautiOus amid persistent glObal and dOmestic uncertainties, the COmpany's prOactive strategies are expected tO suppOrt lOng-term grOwth and cOmpetitiveness.
ACKNOWLEDGEMENTS
The DirectOrs wish tO express their sincere appreciatiOn tO all stakehOlders, including custOmers, suppliers, lenders, and regulatOry authOrities, fOr their cOntinued cOnfidence and suppOrt. The BOard alsO acknOwledges, with gratitude, the cOmmitment and dedicated effOrts Of the COmpany's emplOyees.
On behalf Of the BOARD Of DIRECTORS
MUHAMMAD FAISAL AHMED YAZDANI ZIA
CHIEF EXECUTIVE DIRECTOR
Karachi: February 26, 2026
04 ARTISTIC DENIM MILLS LIMITED
REANDA
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF ARTISTIC DENIM MILLS LIMITED REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS
IntrOductiOn
We have reviewed the accOmpanying cOndensed interim statement Of financial pOsitiOn Of Artistic Denin Mills Linited (the COmpany) as at December 31, 2025 and the related cOndensed interim statement Of prOfit Or lOss, cOndensed interim statement Of cOmprehensive incOme, cOndensed interim statement Of cash flOws, and cOndensed interim statement Of changes in equity and nOtes tO the cOndensed interim financial statements fOr the six mOnths periOd then ended (here-in-after referred tO as the "interim financial statements"). Management is respOnsible fOr the preparatiOn and fair presentatiOn Of these interim financial statements in accOrdance with accOunting and repOrting standards as applicable in Pakistan fOr interim financial repOrting. Our respOnsibility is tO express a cOnclusiOn On these interim financial statements based On Our review.
ScOpe Of Review
We cOnducted Our review in accOrdance with InternatiOnal Standard On Review Engagements 2410, "Review Of Interim Financial InfOrmatiOn PerfOrmed by the Independent AuditOr Of the Entity". A review Of interim financial statements cOnsists Of making inquiries, primarily Of persOns respOnsible fOr financial and accOunting matters, and apply analytical and Other review prOcedures. A review is substantially less in scOpe than an audit cOnducted in accOrdance with InternatiOnal Standards On Auditing and cOnsequently dOes nOt enable us tO Obtain assurance that we wOuld becOme aware Of all significant matters that might be identified in an audit. AccOrdingly, we dO nOt express an audit OpiniOn.
COnclusiOn
Based On Our review, nOthing has cOme tO Our attentiOn that causes us tO believe that the accOmpanying interim financial statements are nOt prepared, in all material respects, in accOrdance with accOunting and repOrting standards as applicable in Pakistan fOr interim financial repOrting.
Other Matter
Pursuant tO the requirement Of sectiOn 237(1)(b) Of the COmpanies Act, 2017, Only cumulative figures fOr the half year, presented in the secOnd quarter accOunts, are subject tO a limited scOpe review by the statutOry auditOrs Of the cOmpany. AccOrdingly, the figures Of the cOndensed interim prOfit and lOss accOunt and the cOndensed interim statement Of cOmprehensive incOme fOr the three-mOnth periOd ended December 31, 2025, have nOt been reviewed by us.
The engagement partner On the audit resulting in this independent auditOr's repOrt is Farhan Ahned MenOn.
Reanda HarOOn Zakaria Aanir Salnan Rizwan & COnpany Chartered AccOuntants
UDIN: RR202510147YsJQ3F6wt
Reanda Haroon Zakaria Aamir Salman Rizwan & Company
Chartered Accountants
Place: Karachi
Dated: February 26, 2026
Suite Nos. M1-M4 & 709-710, Progressive Plaza, Beaumont Road, Karachi-75530 Pakistan
Tel: +92 (21) 3567 4741-44 l Fax: +92 (21) 3567 4745 l Email: info@hzasrkhi.pk l https://www.hzasr.pk
Other offices at: Lahore and Islamabad
HALF YEARLY REPORT
DECEMBER 31, 2025
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2025 (UN-AUDITED)Decenber 31,
2025
June 30,
2025
ASSETS
NOn-Current Assets
NOte
----------(Rupees in '000)----------
(Un-audited) (Audited)
PrOperty, plant and equipment 5 10,887,528 11,262,288
LOng term lOans 25,343 28,048
LOng-term depOsits 1,957 1,957
Deferred tax 6 - -
10,914,828 11,292,293
Current Assets StOres and spares StOck-in-trade
Trade debts 7
LOans and advances
Trade depOsits and prepayments Other receivables
ShOrt-term investments 8
Sales tax refundable TaxatiOn - net
Cash and bank balances
266,963
7,624,983
3,647,135
66,933
11,666
148,849
500,433
430,572
193,782
241,088
246,802
7,312,730
4,437,579
88,114
8,137
206,070
418
195,200
101,836
595,922
EQUITY AND LIABILITIES
Share Capital And Reserves AuthOrized share capital
500,000,000 (June 30, 2025: 500,000,000)
13,132,404 13,192,808
24,047,232 24,485,101
Ordinary shares Of Rs.10/- each 5,000,000 5,000,000
Issued, subscribed and paid-up capital 840,000 840,000
Reserves 6,535,339 6,829,581
7,375,339 7,669,581
NOn-Current Liabilities
LOng-term financing 9 4,190,049 2,168,881
Deferred liability 10 433,328 377,886
4,623,377 2,546,767
Current Liabilities
Trade and Other payables 11
Unclaimed dividend Accrued mark-up
ShOrt term bOrrOwings 12
Current maturity Of lOng-term financing
3,151,112
3,760
158,116
8,172,748
562,780
3,235,129
3,771
145,156
10,321,791
562,906
12,048,516 14,268,753
COntingencies and COnnitnents 13
24,047,232 24,485,101
The annexed nOtes frOm 1 tO 17 fOrm an integral part Of these cOndensed interim financial statements.
Muhammad Faisal Ahmed
Chief Executive Officer
Yazdani Zia
Director
Sagheer Ahmed
Chief Financial Officer
06 ARTISTIC DENIM MILLS LIMITED
HALF YEARLY REPORT DECEMBER 31, 2025 CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED DECEMBER 31, 2025 (UN-AUDITED) Half Year Ended Quarter Ended Decenber 31, Decenber 31, Decenber 31, Decenber 31, 2 0 2 5 2 0 2 4 2 0 2 5 2 0 2 4 -----------------------------(Rupees in '000)--------------------------- TurnOver - net 7,473,964 9,339,708 3,175,525 4,082,259 COst Of sales (6,964,107) (8,586,558) (2,933,059) (3,720,893) GrOss prOfit 509,857 753,150 242,466 361,366 DistributiOn cOsts (215,511) (258,766) (98,591) (123,577) Administrative expenses (130,326) (132,847) (66,663) (66,891) Other Operating expenses - (13,776) - 3,291 Other incOme 27,559 121,511 13,921 57,030 (318,278) (283,878) (151,333) (130,147) Operating prOfit 191,579 469,272 91,133 231,219 Finance cOsts (408,293) (327,822) (212,322) (170,458) (LOss) / prOfit befOre Levies and Tax (216,714) 141,450 (121,189) 60,761 Levies (77,528) (126,014) (23,458) (50,421) (LOss) / prOfit befOre Tax (294,242) 15,436 (144,647) 10,340 TaxatiOn - - - - Net (lOss) / prOfit fOr the periOd (294,242) 15,436 (144,647) 10,340 Basic & diluted earnings per share (Rupees) (3.50) 0.18 (1.72) 0.12 The annexed nOtes frOm 1 tO 17 fOrm an integral part Of these cOndensed interim financial statements. Muhammad Faisal Ahmed Yazdani Zia Sagheer Ahmed Chief Executive Officer Director Chief Financial Officer | ||
ARTISTIC DENIM MILLS LIMITED 07 | ||
TOtal cOnprehensive (lOss) / incOne | |||
fOr the periOd (294,242) | 15,436 | (144,647) | 10,340 |
HALF YEARLY REPORT
DECEMBER 31, 2025
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED DECEMBER 31, 2025 (UN-AUDITED)Half Year Ended Quarter Ended Decenber 31, Decenber 31, Decenber 31, Decenber 31,
2 0 2 5 2 0 2 4 2 0 2 5 2 0 2 4
-----------------------------(Rupees in '000)---------------------------
Net (lOss) / prOfit fOr the periOd (294,242) 15,436 (144,647) 10,340
Other cOmprehensive incOme
-
-
-
-
The annexed nOtes frOm 1 tO 17 fOrm an integral part Of these cOndensed interim financial statements.
Muhammad Faisal Ahmed
Chief Executive Officer
Yazdani Zia
Director
Sagheer Ahmed
Chief Financial Officer
08
ARTISTIC DENIM MILLS LIMITED
HALF YEARLY REPORT DECEMBER 31, 2025 CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED DECEMBER 31, 2025 (UN-AUDITED) Revenue Reserves Issued, UnapprOpriated Actuarial (lOss)/ TOtal subscribed and prOfit gain On defined TOtal Equity paid-up capital benefit plan Reserves ----------------------- (Rupees in '000) ------------------------ Balance as at July 1 , 2024 840,000 7,329,983 (70,737) 7,259,246 8,099,246 Net prOfit fOr the periOd - 15,436 - 15,436 15,436 Other cOmprehensive incOme - - - - - TOtal cOnprehensive incOne fOr the periOd - 15,436 - 15,436 15,436 TransactiOns with Owners Cash dividend paid @ Rs. 1 per Ordinary share Of Rs.10 each fOr the year ended June 30, 2024 - (84,000) - (84,000) (84,000) Balance as at Decenber 31, 2024 840,000 7,261,419 (70,737) 7,190,682 8,030,682 Balance as at July 01, 2025 840,000 6,794,884 34,697 6,829,581 7,669,581 Net lOss fOr the periOd - (294,242) - (294,242) (294,242) Other cOmprehensive incOme - - - - -TOtal cOnprehensive lOss fOr the periOd - (294,242) - (294,242) (294,242) Balance as at Decenber 31, 2025 840,000 6,500,642 34,697 6,535,339 7,375,339 The annexed nOtes frOm 1 tO 17 fOrm an integral part Of these cOndensed interim financial statements. Muhammad Faisal Ahmed Yazdani Zia Sagheer Ahmed Chief Executive Officer Director Chief Financial Officer | ||
ARTISTIC DENIM MILLS LIMITED 09 | ||
DepreciatiOn | 5.1 | 516,561 | 509,428 | |
PrOvisiOn fOr gratuity | 66,880 | 53,170 | ||
Gain On dispOsal Of shOrt term investment | (3,708) | (33,662) | ||
Dividend incOme IncOme released frOm gOvernment grant | (22) (1,669) | (3,987) - | ||
Gain On dispOsal Of Operating fixed assets | (6,330) | (52,197) | ||
Finance cOst | 408,293 | 327,822 | ||
980,005 | 800,574 | |||
PrOfit befOre wOrking capital changes | 763,291 | 942,024 | ||
(Increase) / decrease in current assets | ||||
StOres and spares | (20,161) | 7,044 | ||
StOck-in-trade | (312,253) | (1,799,207) | ||
Trade debts | 790,444 | 242,222 | ||
LOans and advances | 21,181 | 5,052 | ||
Trade depOsits and shOrt-term prepayments | (3,529) | (13,321) | ||
Other receivables | (178,151) | (604,531) | ||
297,531 | (2,162,741) | |||
(Decrease) / increase in current liabilities | ||||
Trade and Other payables | (79,177) | (377,395) | ||
Cash generated frOn / (used in) OperatiOns | 981,645 | (1,598,112) | ||
IncOme taxes paid - net | (169,474) | (212,023) | ||
Gratuity paid | (14,736) | (14,416) | ||
Finance cOsts paid | (395,333) | (359,160) | ||
Capital expenditure | 5.1 & 5.2 | (145,014) | (167,862) | |
ShOrt-term investment -net | 8 | (496,307) | 168,638 | |
LOng-term lOans - net | 2,705 | (5,664) | ||
Dividend received PrOceeds frOm dispOsal Of Operating fixed | assets | 22 9,544 | 3,987 69,139 | |
Net cash (used in) / generated frOn investing activities | (629,050) | 68,238 | ||
LOng-term financing Obtained / (repaid) - net | 9 | 2,021,167 | (283,687) | |
ShOrt-term bOrrOwings (repaid) / Obtained - net | 12 | (2,149,043) | 2,130,707 | |
Dividends paid | (10) | (83,747) | ||
Net cash generated frOn / (used in) financing activities (127,886) 1,763,273 | ||||
Net decrease in cash and cash equivalents | (354,834) | (352,200) | ||
Cash and cash equivalents at beginning Of the periOd | 595,922 | 692,466 | ||
Cash and cash equivalents at end Of the periOd | 241,088 | 340,266 | ||
HALF YEARLY REPORT
DECEMBER 31, 2025
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE HALF YEAR ENDED DECEMBER 31, 2025 (UN-AUDITED)
Half Year Ended Decenber 31, Decenber 31,
2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
(LOss) / prOfit befOre levies and taxatiOn Adjustnents fOr nOn-cash charges and Other itens:
NOte
----------(Rupees in '000)----------
(216,714)
141,450
Net cash generated frOn / (used in) Operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
(579,543) (585,599)
402,102 (2,183,711)
CASH FLOWS FROM FINANCING ACTIVITIES
* Cash and cash equivalents cOmprise Of cash and bank balances.
The annexed nOtes frOm 1 tO 17 fOrm an integral part Of these cOndensed interim financial statements.
Muhammad Faisal Ahmed
Chief Executive Officer
Yazdani Zia
Director
Sagheer Ahmed
Chief Financial Officer
10
ARTISTIC DENIM MILLS LIMITED
HALF YEARLY REPORT DECEMBER 31, 2025 NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED DECEMBER 31, 2025 (UN-AUDITED)
The COmpany has twO factOry lOcatiOns with manufacturing facility1 lOcated at PlOt NO. 5-9, 23-26, SectOr 16, KOrangi Industrial Area, Karachi and manufacturing facility 2 lOcated at PlOt NO. 426 - 428, Deh Phihai Of Sub DivisiOn Landhi, KOrangi, Karachi.
| ||
ARTISTIC DENIM MILLS LIMITED 11 | ||
HALF YEARLY REPORT
DECEMBER 31, 2025
These cOndensed interim financial statements dO nOt include all the infOrmatiOn and disclOsures required in annual financial statements and shOuld be read in cOnjunctiOn with the cOmpany's annual financial statements fOr the year ended June 30, 2025. These cOndensed interim financial statements are un-audited, hOwever, have been subjected tO limited scOpe review by the statutOry auditOrs and are being submitted tO the sharehOlders as required by the listing regulatiOn Of Pakistan StOck Exchange limited and sectiOn 237 Of cOmpanies Act, 2017.
These cOndensed interim financial statements are presented in Pakistan Rupees which is the COmpany's functiOnal and presentatiOn currency.
These financial statements have been prepared On a gOing cOncern basis. The BOard has assessed the cOmpany's ability tO cOntinue as a gOing cOncern and cOncluded nO material uncertainties exist that cast significant dOubt Over this assessment.
-
MATERIAL ACCOUNTING POLICY INFORMATION
The accOunting pOlicies and the methOds Of cOmputatiOn adOpted in the preparatiOn Of these cOndensed interim financial statements are the cOnsistent with thOse applied in the preparatiOn Of the annual financial statements fOr the year ended June 30, 2025.
-
Standards, interpretatiOns and anendnents tO accOunting and repOrting standards as applicable in Pakistan which are effective in current periOd
Other than certain amendments updating a reference tO the COnceptual FramewOrk and annual imprOvements made tO a number Of standards, which have nOt been enumerated here fOr brevity, there were nO Other amendments made which are effective during the current periOd.
-
Anendnents tO standards and IFRS interpretatiOns that are nOt yet effective
The fOllOwing standards, amendments tO standards and interpretatiOns are Only effective fOr accOunting periOds, beginning On Or after the date mentiOned against each Of them. These standards, interpretatiOns and amendments are either nOt relevant tO the COmpany's OperatiOns Or are nOt expected tO have significant impact On the COmpany's financial statements Other than certain additiOnal disclOsures:
Effective frOn accOunting periOd beginning On Or afterAmendments tO IFRS 7 'Financial Instruments -DisclOsures' and IFRS 9 'Financial Instruments': Amendments regarding the classificatiOn and measurement Of financial instruments.
January 1, 2026
ARTISTIC DENIM MILLS LIMITED
HALF YEARLY REPORT
DECEMBER 31, 2025
Effective frOn accOunting periOd beginning On Or after
Amendments tO IFRS 10 'COnsOlidated Financial Effective frOm accOunting Statements' and IAS 28 'Investments in AssOciates and periOd beginning On Or after JOint Ventures': Sale Or cOntributiOn Of assets between a date tO be determined.
an investOr and its assOciate Or jOint venture. Earlier applicatiOn is permitted.
IFRS 17 - Insurance COntracts January 1, 2026
IFRS 18 PresentatiOn and DisclOsures in Financial January 1, 2027 Statements (first time applicability)
IFRS 19 Subsidiaries withOut Public AccOuntability: January 1, 2027 DisclOsures (first time applicability)
IFRS S1 - General Requirements fOr DisclOsure Of July 1, 2026 Sustainability-related Financial InfOrmatiOn (applicable tO
listed cOmpanies and unlisted Public Interest COmpanies) (first time applicability)
IFRS S2 Climate-related DisclOsures (applicable tO listed July 1, 2026 cOmpanies and unlisted Public Interest COmpanies) (first
time applicability)
Amendments tO IAS 21 'The Effects Of Changes in FOreign January 1, 2027 Exchange Rates': Amendments regarding translatiOns tO
a hyperinflatiOnary presentatiOn currency
Certain amendments updating a reference tO the COnceptual FramewOrk and annual imprOvements have alsO been made tO a number Of standards, which have nOt been enumerated here fOr brevity.
Other than the afOresaid standards, interpretatiOns and amendments, the InternatiOnal AccOunting Standards BOard (IASB) has alsO issued the fOllOwing standard which has nOt been adOpted lOcally by the Securities and Exchange COmmissiOn Of Pakistan:
IFRS 1 - First Time AdOptiOn Of InternatiOnal Financial RepOrting Standards
4 ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparatiOn Of these cOndensed interim financial statements in cOnfOrmity with the apprOved accOunting standards, as applicable in Pakistan, requires the management tO make estimates, judgements that affect the applicatiOn Of pOlicies and the repOrted amOunt Of assets and liabilities and incOme and expenses. Actual results may differ frOm these estimates.
In preparing these cOndensed interim financial statements, the significant judgements made by the management in applying the cOmpany's accOunting pOlicies and areas where assumptiOns and estimates are significant are same as thOse applied tO the annual financial statements Of the cOmpany as at and fOr the year ended June 30, 2025.
ARTISTIC DENIM MILLS LIMITED 13
HALF YEARLY REPORT
DECEMBER 31, 2025
Decenber 31,
June 30,
2025 2025
NOte ----------(Rupees in '000)----------
(Un-audited) (Audited)
5 PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets
Capital wOrk-in-prOgress (CWIP)
5.1
5.2
10,687,382
200,146
10,887,528
10,988,490
273,798
11,262,288
5.1 Operating fixed assets
Opening written dOwn value AdditiOns during the periOd / year
10,988,490
10,880,499
5.1.1
Transfers frOm CWIP during the periOd / year 5.1.1
218,666 1,156,937
11,207,156 12,037,436
DispOsals during the periOd / year at written dOwn value
DepreciatiOn fOr the periOd / year
5.1.2
(3,213)
(516,561)
10,687,382
(20,503)
(1,028,443)
10,988,490
5.1.1 AdditiOns / transfers* during the periOd / year
Building On leasehOld land Plant and machinery FactOry equipment
Office equipment, including cOmputers Vehicles
*
*
-216,788
1,416
462
-
218,666
770,882
373,831
10,767
1,226
231
1,156,937
5.1.2 DispOsals, at their written dOwn values, during the periOd / year
Vehicles
Plant and machinery
Office equipment, including cOmputers
3,213
-
-3,213
4,898
15,586
19
20,503
5.2 Capital wOrk-in-prOgress
Opening written dOwn value
AdditiOns nade during the periOd / year
Civil wOrks
Plant and machinery FactOry equipment Advances
273,798
962,621
144,552 466,657
Transfers tO Operating assets 5.1.1 * (218,204) * (1,155,480)
5.2.1 200,146 273,798
14
ARTISTIC DENIM MILLS LIMITED
38,942
130,403
10,767
286,545
-43,956
1,416
99,180
1,457
1,155,480
462
218,204
HALF YEARLY REPORT DECEMBER 31, 2025 Decenber 31, June 30, 2025 2025 ----------(Rupees in '000)---------- (Un-audited) (Audited) 5.2.1 Capital wOrk-in prOgress as at periOd / year end Civil wOrks 80,195 86,896 Plant and machinery 3,880 29,422 Advances 116,071 157,481 200,146 273,798
Decenber 31, June 30, 2025 2025 NOte ----------(Rupees in '000)----------
In units Of nutual funds 8.1 500,433 418 | ||
ARTISTIC DENIM MILLS LIMITED 15 | ||
2,962 | 2,868 | Al-Meezan ROzana Amdani Fund | 148 | 143 | ||
28,530 | 27,516 | NBP Islamic Daily Dividend Fund | 285 | 275 | ||
46,978,192 | - | NBP Islamic MOney Market Fund | 500,000 | - | ||
47,009,684 | 30,384 | 500,433 | 418 |
Tern finances frOn banks under the State Bank Of Pakistan's (SBP's) schene fOr ExpOrt Oriented PrOjects (EOP) and LOng-Tern Financing Facility (LTFF) | |||
COmmercial bank - I | 389,775 | 442,061 | |
COmmercial bank - II | 1,484,948 | 1,652,757 | |
COmmercial bank - III | 576,330 | 635,068 | |
9.1 | 2,451,053 | 2,729,886 | |
Tern finances frOn banks | |||
COmmercial bank - I 9.2 | 800,000 | - | |
COmmercial bank - II 9.3 | 1,500,000 | - | |
2,300,000 | - | ||
4,751,053 | 2,729,886 | ||
Current naturities shOwn under current liabilities | (561,004) | (561,005) | |
4,190,049 | 2,168,881 | ||
HALF YEARLY REPORT
DECEMBER 31, 2025
8.1 Mutual fundsDecenber 31,
2025
June 30,
2025
Decenber 31,
2025
June 30,
2025
----------(Rupees in '000)----------
(Un-audited)
(Audited)
Nunber in units
Decenber 31,
2025
June 30,
2025
9 LONG-TERM FINANCING
NOte ----------(Rupees in '000)----------
(Un-audited) (Audited)
There are nO majOr changes in the terms and cOnditiOns Of lOng term financings as disclOsed in nOte 19 Of the annual audited financial statements fOr the year ended June 30, 2025.
The lOan is repayable in 16 equal semi-annual installments, cOmmencing and ranging frOm June 17, 2028 tO December 17, 2035, carrying mark-up at the 6 mOnths KIBOR plus spread per annum, which are payable semi-annual On the Outstanding principal sum Of lOan. The said lOan is secured against the first pari-passu charge Over fixed assets Of the COmpany, tO the extent Of Rs. 1,000 milliOn.
The lOan is repayable in 20 equal quarterly installments, cOmmencing and ranging frOm January 30, 2028 tO OctOber 30, 2032, carrying mark-up at the 3 mOnths KIBOR plus spread per annum, which are payable quarterly On the Outstanding principal sum Of lOan. The said lOan is secured against the first pari-passu charge Over all present and future plant & machinery Of the COmpany, tO the extent Of Rs. 2,000 milliOn.
16
ARTISTIC DENIM MILLS LIMITED
HALF YEARLY REPORT | ||
DECEMBER 31, 2025 | ||
Decenber 31, June 30, | ||
2025 2025 | ||
NOte ----------(Rupees in '000)---------- | ||
(Un-audited) (Audited) | ||
10 DEFERRED LIABILITY | ||
Defined benefit ObligatiOn 424,898 367,913 | ||
Deferred gOvernment grant 10.1 10,206 11,874 | ||
435,104 379,787 | ||
Current pOrtiOn Of deferred gOvernment grant 10.1 (1,776) (1,901) | ||
433,328 377,886 | ||
10.1 MOvenent in deferred gOvernnent grant | ||
TOtal gOvernment grant 10,206 11,874 | ||
Released tO prOfit Or lOss (1,669) - | ||
8,537 11,874 | ||
Current pOrtiOn 1,776 1,901 | ||
NOn current pOrtiOn 6,761 9,973 | ||
8,537 11,874 | ||
11 TRADE AND OTHER PAYABLES | ||
11.1 This includes balance with Artistic Fabric Mills (Private) Limited - related party amOunting tO | ||
Rs. 27.947 (June 30, 2025: Rs. 4.253) milliOn against the purchase Of raw materials in the | ||
Ordinary cOurse Of business. The Outstanding balance is unsecured. | ||
11.2 This includes bOOk Overdraft balance Of Rs. 68.871 milliOn (June 30, 2025: Nil) arising On | ||
accOunt Of unpresented cheques issued as On repOrting date which is tO be cleared subsequent | ||
tO the periOd end. | ||
Decenber 31, June 30, | ||
2025 2025 | ||
NOte ----------(Rupees in '000)---------- | ||
(Un-audited) (Audited) | ||
12 SHORT TERM BORROWINGS | ||
- secured | ||
ShOrt term lOans - expOrt refinance 12.1 4,226,000 3,816,000 | ||
ShOrt term lOans - mOney market 12.2 - 276,000 | ||
ShOrt term Overdraft 12.2 - 291 | ||
ShOrt term running finances under FE-25 12.3 3,068,957 5,380,469 | ||
ShOrt term running finances under EFS 12.4 877,791 849,031 | ||
8,172,748 10,321,791 | ||
ARTISTIC DENIM MILLS LIMITED | 17 | |
HALF YEARLY REPORT
DECEMBER 31, 2025
There are nO majOr changes in the terms and cOnditiOns Of shOrt term lOans as disclOsed in nOte 23 Of the annual audited financial statements fOr the year ended June 30, 2025.
These lOans have been fully repaid during the year in accOrdance with the terms Of agreement.
Decenber 31,
2025
June 30,
2025
ShOrt tern running finance- FE-25
NOte
----------(Rupees in '000)----------
(Un-audited) (Audited)
RF-I 12.3.1 512,898 843,693
RF-II 12.3.1 714,205 984,801
RF-III 12.3.1 621,544 702,050
RF-IV 12.3.1 520,391 1,546,318
RF-V 12.3.1 280,775 422,560
RF-VI 12.3.1 98,508 642,061
RF-VII 12.3.1 179,936 238,985
RF-VIII 12.3.2 140,700 -
3,068,957 5,380,469
There are nO majOr changes in the terms and cOnditiOns Of shOrt term lOans as disclOsed in nOte 23 Of the annual audited financial statements fOr the year ended June 30, 2025.
The COmpany has alsO bOrrOwed shOrt-term running finances under FOreign Exchange Circular NO.25, dated June 20, 1998 fOr the purpOse Of meeting impOrt requirements. The facilities availed are fOr an amOunt Of USD 0.500 milliOn equivalent tO Rs. 140.700 milliOn (June 30, 2025: Rs.Nil). It is secured against the first pari passu registered hypOthecatiOn charge On present & future current assets Of the COmpany, aggregating tO Rs.1,250 milliOn.
Decenber 31,
2025
June 30,
2025
NOte
----------(Rupees in '000)----------
(Un-audited) (Audited)
ShOrt tern running finances - EFS (Rupee based discOunting)
EFS-I
12.4.1
253,873
252,638
EFS-II
12.4.1
573,919
596,393
EFS-III
12.4.2
49,999
-
877,791
849,031
There are nO majOr changes in the terms and cOnditiOns Of shOrt term lOans as disclOsed in nOte 23 Of the annual audited financial statements fOr the year ended June 30, 2025.
The COmpany has alsO bOrrOwed shOrt-term running finances under ExpOrt Finance Scheme (EFS) Circular NO.03, dated February 16, 2022. The facilities availed are fOr an amOunt Of USD
0.177 milliOn equivalent tO Rs. 49.999 milliOn (June 30, 2025: Rs. Nil). The rates Of mark-up On these finances are 2% (June 30, 2025: Nil) per annum. These facilities are secured against the first pari passu hypOthecatiOn charge Over the mOvables and receivables.
18 ARTISTIC DENIM MILLS LIMITED
HALF YEARLY REPORT DECEMBER 31, 2025
Related parties Of the COmpany cOmprise assOciated cOmpanies, directOrs, majOr sharehOlders Of the COmpany and key management persOnnel. All the transactiOns with related parties are entered intO at agreed terms in the nOrmal cOurse Of business as apprOved by the BOard Of DirectOrs Of the COmpany. Details Of transactiOns with related parties during the periOd, Other than thOse which have been disclOsed elsewhere in these financial statements, are as fOllOws: Half-year ended Type Of Related RelatiOnship Nature Of Decenber Decenber Parties TransactiOns 2025 2024 ----------(Rupees in '000)---------- (Un-audited) 87,423 11,207 12,378 1,032 240 76,633 2,428,336 13,890 | ||
ARTISTIC DENIM MILLS LIMITED 19 | ||
AssOciated | COmmOn | Purchases | 116,237 |
COmpanies | directOrship | Services rendered | 3,290 |
DirectOrs & | Key management | Salaries | 12,378 |
Executives | persOnnel | Retirement benefits | 1,032 |
DirectOrship fee | 330 | ||
Dividend paid tO directOrs | - |
Relative Of | Others | Sales | 2,322,137 |
DirectOrs | Reimbursement Of expenses | 16,170 |
HALF YEARLY REPORT
DECEMBER 31, 2025
14.1 The abOve transactiOns are entered intO at agreed terms (based On arms length using admissible valuatiOn methOds) in the nOrmal cOurse Of business as apprOved by the BOard Of DirectOrs Of the COmpany.
FINANCIAL RISK MANAGEMENT AND FAIR VALUE DISCLOSURES
These cOndensed interim financial statements dO nOt include all financial risk management infOrmatiOn and disclOsures which are required in the annual financial statements and shOuld be read in cOnjunctiOn with the cOmpany's annual financial statements fOr the year ended June 30, 2025. There have been nO change in any risk management pOlicies since the year end.
The carrying value Of all financial and nOn-financial assets and liabilities measured at Other than amOrtized cOst in these cOndensed interim financial statements apprOximate their fair values.
DATE OF AUTHORISATION FOR ISSUE
This cOndensed interim financial statements were authOrized fOr issue On February 26, 2026 by the BOard Of DirectOrs Of the COmpany.
GENERAL
Figures have been rOunded-Off tO the nearest thOusands rupees, unless Otherwise stated.
Muhammad Faisal Ahmed
Chief Executive Officer
Yazdani Zia
Director
Sagheer Ahmed
Chief Financial Officer
20
ARTISTIC DENIM MILLS LIMITED
'Addreaa'
Plot No. 5-6, 23-26, Sector-10, Korongi Industrial.Area,
74900 Karachi,.Pakistan
Tel +62 211l1-236-236 I Fox 82.2T 3505 4652