Transmission of Quarterly Report for the Period 31-12-2025

CONDENSED INTERIM STATEMENT FOR SIX MONTH PERIOD ENDED DECEMBER 31, 2025

Half Yearly Report

December 31, 2025

UN-AUDITED

COMPANY INFORMATION BOARD OF DIRECTORS

1. Mr. Ali Maqsood Butt :

2. Mr. Faisal Khan :

3. Mr. SH. Ghulam Mustafa :

4. Mrs. Durray Zara Butt :

5. Dr. Aruj Butt :

6. Mr. Muhammad Sajjad Hussain :

7. Miss Amara Javid :

Chair Person Chief Executive Director Director Director Director Director

CHIEF FINANCIAL OFFICER

Mrs. Durray Zara Butt

COMPANY SECRETARY

Mr. Muhammad Sajjad Hussain

LEGAL ADVISOR

Mr.Mian Waheed Akhtar,

Advocate High Court/ Supreme Court Lahore.

REGISTERED OFFICE

2-KM Off Raiwind-Manga Road, Raiwind, Lahore.

Tel: (92 - 42) 35393125-6, 38102800

Fax: (92 - 42) 35393127

E-mail: info@aruj.com Website: https://www.aruj.com

SHARE REGISTRARS

M/s. Corplink (Pvt.) Ltd. Wings Arcade, 1-K , Commercial Model Town Lahore.

Tel: 35839182, 35869037

AUDITORS

M/s. Qadeer & Co. Chartered Accountants, 32-A Lawrence Road, Lahore.

AUDIT COMMITTEE

Mr. Muhammad Sajjad Hussain Mr. SH. Ghulam Mustafa Miss Amara Javid

Chairman Member Member

REGISTERED OFFICE HR & REMUNERATION COMMITTEE

2-KM Off Raiwind-Manga Road, Raiwind, Lahore.

Tel: (92 - 42) 35393125-6, 38102800

Fax: (92 - 42) 35393127

E-mail: info@aruj.com Website: https://www.aruj.com

BANKERS

Bank Alfalah Limited. Habib Bank Limited. Bank of Punjab.

JS Bank Limited.

Habib Metropolitan Bank Ltd. Faysal Bank Limited.

Meezan Bank

Bank Al Habib

Mr. Muhammad Sajjad Hussain Dr. Aruj Butt

Miss Amara Javid

Chairman Member Member

DIRECTOR'S REPORT

Your Directors have the pleasure to present to you the Financial Statement of the company for the Half Year ended 31st December, 2025

Particulars

Sales Gross Loss

Loss Before Taxation

Taxation Loss After Taxation

Loss per Share-basic & diluted

6 Months ended Dec., 31, 2025

Rupees

-(10,788,130)

(16,198,196)

-(16,198,196)

(1.55)

6 Months ended Dec., 31, 2024

Rupees

191,800

(14,907,816)

(20,966,617)

2,398

(20,969,015)

(2.01)

The 2nd Quarter results paint a similar picture as the previous quarters. Rest assured, the directors of your company have been working on solutions to kickstart the company back into business. In this respect, the founder of the company, Mr Maqsood Ahmad Butt, has shown willingness to inject some of his personal money into operations. We are currently planning on starting trading of fusible interlining, a core product of the company, when that cash injection is made.

Your company expects this transaction to be complete by the 3rd quarter of the current financial year. However, we are still steadfast on making your company profitable again.

Future outlook

We do hope that the new government would bring back some of this lost confidence. As stated before, your Company believes business outlook should start turning positive beginning from the 4th quarter of the current financial year.

Note of Thanks:

The Board would like to extend our sincere gratitude to its valued shareholders, customers and raw materials suppliers whose cooperation, constant support and patronage have enabled us to achieve our desired results.

The Board would also like to express its thanks to the Executives, Staff members and especially the Workers of your Company, who have loyally worked with utmost effort to make this all possible

FOR AND ON BEHALF OF THE BOARD

Lahore

Dated: February 26, 2026

FAISAL KHAN

Chief Executive

2024

2025

2025

191,800

(14,907,816)

(20,966,617)

2,398

(20,969,015)

(2.01)

-(10,788,130)

(16,198,196)

-(16,198,196)

(1.55)

2026

26

Independent Practitioner's Review Report

To the members of ARUJ INDUSTRIES LIMITED Report on review of Interim Financial Statements Introduction

We were engaged to review the accompanying condensed interim statement of financial position of Aruj Industries Limited (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 changes in equity, condensed interim statement of cash flows for the six-month period then ended, and notes to the financial statements, including material accounting policy information. Management is responsible for the preparation and fair presentation of this interim financial statements in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this condensed interim financial information based on our review. However, because of the matters described in the Basis for Disclaimer of Conclusion paragraph, we were not able to obtain sufficient appropriate evidence as a basis for expressing a conclusion on the financial statements

Scope of Review

We were required to conduct 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 information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying 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.

Basis for Disclaimer of Conclusion

As disclosed in the interim financial statements, the Company continues to incur losses and has accumulated losses resulting in negative equity as at December 31, 2025. Further, the Company's current liabilities exceed its current assets. These conditions indicate the existence of a material uncertainty that may cast significant doubt 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. We do not conform with the management assumption of the ability of the company to continue as a going concern.

During the period, the Company did not carry out any significant manufacturing or trading operations. No sufficient appropriate evidence was made available to us regarding management's plans for resumption of operations or improvement in the Company's financial position.

In addition, adequate accounting records and relevant supporting documentation were not maintained or made available for our review. Various balances including trade debts, trade and other payables, balances payable to financial institutions, accrued mark-up, advances and other receivables include long outstanding amounts from prior periods. We were unable to obtain sufficient appropriate evidence regarding the existence, completeness and valuation of these balances.

Further, no allowance for expected credit losses has been recorded against long-outstanding receivables which appear doubtful of recovery. Inventory balances, where applicable, have not been assessed at the lower of cost and net realizable value in accordance with applicable accounting standards.

Disclaimer of Conclusion

Because of the significance of the matter described in the Basis for Disclaimer of Conclusion paragraph, we have not been able to obtain sufficient appropriate evidence to provide a basis for a review conclusion. Accordingly, we do not express a conclusion on the accompanying financial statements.

The engagement partner on the review resulting in this independent auditor's report is SALAHUDDIN MAHMOOD, FCA.

QADEER & COMPANY CHARTERED ACCOUNTANTS

Lahore:

Date: February 26, 2026. UDIN: RR202510809768OeujFR

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED) AS AT DECEMBER 31, 2025

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital: 12,500,000 (June 30, 2025: 12,500,000)

Un-audited Audited

Dec 31, 2025 June, 2025

Note Rupees Rupees

ordinary shares of Rs. 10/- each 125,000,000 125,000,000 Issued, subscribed and paid up share capital: 10,457,890

(June 30, 2025: 10,457,890) ordinary shares of Rs. 10/- each

Capital reserve

Revenue reserves - unappropriated loss

(227,686,630) (211,488,434)

Directors' loan - unsecured 7 101,364,748 101,364,748

(126,321,882) (110,123,686)

Non-current liabilities

Long term loan 8

Lease liabilities

Deferred liabilities 9

Current liabilities

Trade and other payables 10

Unclaimed dividend Accrued mark-up

Short term borrowings 11

Current portion of long term loan Current portion of lease liabilities Provision for taxation

CONTINGENCIES AND COMMITMENTS 12

53,060,413 53,060,413

988,301,881 988,070,166

TOTAL EQUITY AND LIABILITIES 915,040,412 931,006,893

ASSETS

Non-current assets

Property, plant and equipment 13

Capital work in progress

336,446,936 351,394,132

Long term deposits 1,994,591 1,994,591

CONDENSED INTERIM STATEMENT OF PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2025

The annexed notes form an integral part of these financial statements.

Loss for the period (16,198,196) (20,969,015) (8,911,403) (8,681,121)

Other comprehensive income - - - -Total comprehensive loss for the period (16,198,196) (20,969,015) (8,911,403) (8,681,121) The annexed notes form an integral part of these financial statements.

Un-audited Un-audited

14,947,196 15,062,634

Operating loss before working capital changes (1,251,000) (5,903,983)

(Increase)/decrease in current assets:

Gratuity paid - -

Income tax paid / deducted - net -

Net cash generated from / (used in) operating activities 52,493 10,884,825

CASH FLOWS FROM INVESTING ACTIVITIES

Long-term security deposits - 8,178,930

Net cash (used in) / generated from investing activities - 8,178,930

CASH FLOWS FROM FINANCING ACTIVITIES

(RUPEES)

The annexed notes form an integral part of these financial statements.

1. LEGAL STATUS AND OPERATIONS

   Aruj Industries Limited ("the Company") was incorporated in Pakistan on December 31, 1992 under the Repealed Companies Ordinance, 1984 (now the Companies Act, 2017), as a Public Company, limited by shares which are quoted on Pakistan Stock Exchange Limited. The Company is principally engaged in manufacturing of Fusible Interlining and Dying / Bleaching / Stitching of Fabric. The Company commenced its commercial operations on May 15, 1995.

   The geographical location and address of the Company's business units, including mills/plant is as under:

   Geographical location

   2-KM, Off Raiwind Manga Road, Raiwind, Lahore. 1-KM, Raiwind Road, Thokar Niaz Baig, Lahore.

2. GOING CONCERN ASSUMPTION

   During the half year period ended December 31, 2025 (interim period), the Company has incurred a gross loss of Rs. 10.788 million (December 31, 2024: Rs. 14.907 million). It has also incurred a net loss of Rs. 16.198 million (December 31, 2024: Rs. 20.969 million). In addition, as at the period end, its accumulated losses stand at Rs. 432.265 million (June 30, 2025: Rs. 416.067 million). These conditions indicate the existence of material uncertainty that may cast significant doubt 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.

   During the period, the Company did not carry out any manufacturing or significant trading operations. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

3. BASIS OF PREPARATION

   These condensed interim 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 applicable in Pakistan for interim financial reporting comprise of:

   • International Accounting Standard (IAS) 34 issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;

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

   Where the provision of and directives issues under the Companies Act, 2017 differ with the requirements of IAS 34 or IFRS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   These condensed interim financial statements have been subjected to limited scope review by the auditors, as required under section 237 of Companies Act, 2017 and should be read in conjunction with audited annual financial statements of the Company for the year ended June 30, 2025. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual audited financial statements.

   The figures included in the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the quarters ended December 31, 2025 and 2024 and the notes forming part thereof have not been reviewed by the auditors of the Company, as they are required to review only the cumulative figures for the half year period ended December 31, 2025 and 2024.

4. BASIS OF MEASUREMENT

   This condensed interim financial information has been prepared under the historical cost convention. In this condensed interim financial information, except for the condensed interim statement of cash flows, all the transactions have been accounted for on accrual basis.

5. MATERIAL ACCOUNTING POLICY INFORMATION

   The accounting policies and methods of computation adopted for the preparation of this condensed interim financial information are the same as those applied in the preparation of the financial statements for the year ended 30 June 2025.

   1. Statement of compliance

      These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards as applicable in Pakistan comprise of International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 and provisions of and directives issued under the Companies Act, 2017.

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

   2. Standards, amendments and Interpretations adopted during the year

      There are certain new and amended standards, interpretations and amendments that are mandatory for the Company's accounting period beginning on or after July 1, 2024, but are considered not to be relevant or do not have any significant effect on the Company's operations and are therefore not detailed in these financial statements.

   3. Standard, interpretation and amendments to approved accounting standards that are not yet effective and have not been early adopted by the Company:

      Standards, amendments or interpretations

      IFRS 9 - Financial Instruments - Classification and Measurements (amendments) IFRS 17 - Insurance Contracts

      IFRS 7 - Financial Instruments Disclosures' (amendments)

      IAS 21 - The Effects of Changes in Foreign Exchange Rates' (amendments)

      Annual improvement to IFRS 7, IFRS 9, IFRS 10 (Consolidated Financial Statements) and IAS 7 ( Statement of Cashflows)

      Effective date (accounting period beginning on or after)

      January 1, 2026

      January 1, 2026

      January 1, 2026

      January 1, 2025

      January 1, 2026

      The above standards, amendments to approved accounting standards and interpretations are not likely to have any material impact on the Company's financial statements.

      Other than the aforesaid standards, interpretations and amendments, International Accounting Standards Board (IASB) has also issued the following standards and interpretation, which have not been notied locally or declared exempt by the Securities and Exchange Commission of Pakistan (SECP) as at 30 June 2024;

      IFRIC 1 First-time Adoption of International Financial Reporting Standards IFRIC 12 Service Concession Arrangement

      IFRS 18 Presentation and Disclosures in Financial Statements IFRS 19 Subsidiaries without Public Accountability: Disclosures

6. SIGNIFICANT ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

   The preparation of these condensed interim financial statements are in conformity with the approved accounting and reporting standards as applicable in Pakistan for interim reporting requires management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on the historical experience and other factors, including reasonable expectations of future events. Revision to accounting estimates are recognized prospectively commencing from the period of revision.

   Judgments and estimates made by the management in the preparation of these condensed interim financial statements are same as those applied to financial statements as at and for the year ended June 30, 2025.

   The Company's financial risk management objectives and policies are consistent with those disclosed in the financial statements

   as at and for the year ended June 30, 2025.

7. DIRECTORS' LOAN - UNSECURED

   Loan from directors - unsecured

   Un-audited Audited

   Dec 31, 2025 June 30, 2025

   Rupees Rupees

   101,364,748 101,364,748

8. LONG TERM LOAN

   Loan from banking companies - secured

   Bank Alfalah Limited

   Less: Current portion of long term loan

   6,006,540 6,006,540

   (6,006,540) (6,006,540)

   - -

9. DEFERRED LIABILITIES

Deferred tax - net

Employees retirement benefits - gratuity

35,055,354 35,055,354

17,370,095 17,370,095

52,425,449 52,425,449

Contingencies

There is no material change in the status of the contingencies reported in the annual financial statements for the year ended June 30, 2025.

Commitments

There are no known material commitments as at reporting date (June 30, 2025: nil)

13 PROPERTY PLANT AND EQUIPMENT

18 ENTITY-WIDE INFORMATION

The Company constitutes of a single reportable segment, the principal classes of products are Fusible Interlining, Dying / Bleaching / Processing, Stitching of Fabric and other related products.

All of the revenue of the Company during the period relates to the customers in Pakistan. All non-current assets of the Company as at the period end are located in Pakistan.

19 DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements were approved and authorized for issue on February 26. 2026 by the Board of Directors of the Company.

20 CORRESPONDING FIGURES

Corresponding figures have been reclassified wherever necessary to reflect more appropriate presentation of events and transactions for the purpose of comparison. However, no significant rearrangement / reclassification of corresponding figures have been made.

21 GENERAL

Figures have been rounded off to the nearest of Pakistani rupees.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

BOOK POST

UNDER POSTAL CERTIFICATE

If undelivered please return to:

ARUJ INDUSTRIES LTD.

2-KM Off Raiwind-Manga Road, Raiwind, Lahore Tel: (92 - 42) 38102800, 35393125-6

Fax: (92 - 42) 35393127

E-mail: info@aruj.com Website: https://www.aruj.com