Transmission of half yearly financial statements as at december 31, 2025

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Burshane LPG (Pakistan) Limited

Interim Statement oS Financial Position

as at December 31, 2025

FUELING NEEDS

CATERING TO

Content

Company's Information 02

Directors' Report 03

Unconsolidated Financial Statements

Unconsolidated Statement of Financial Position (un-audited) 06

Unconsolidated Statement of Profit or Loss (un-audited) 07

Unconsolidated Statement of Comprehensive Income (un-audited) 08

Unconsolidated Statement of Changes in Equity (un-audited) 09

Unconsolidated Statement of Cash Flows (un-audited) 10

Notes to the Unconsolidated Financial Statements (un-audited) 11

Consolidated Financial Statements

Consolidated Statement of Financial Position (un-audited) 15

Consolidated Statement of Profit or Loss (un-audited) 16

Consolidated Statement of Comprehensive Income (un-audited) 17

Consolidated Statement of Changes in Equity (un-audited) 18

Consolidated Statement of Cash Flows (un-audited) 19

Notes to the Consolidated Financial Statements (un-audited) 20

Company's Information

Board of Directors

Chartered Accountants Plot No. Commercial - 10, Block-4 Scheme No. 5, Clifton, Karachi - 75600 Tel : + 92 21 35898356, 35309870 & 73

UAN: +92 21 111 111 BPL (275)

Fax : + 92 21 3587 8353

https://www.burshane.com

Director's Report

During the period under review, the sales volume of the Company at 6,694 MT, increased by 3,268 MT (108%) compared to the corresponding period due to better cashflow and inventory management and increased availability of local product. Net sales of the Company at Rs. 1.224 billion increased by Rs 534.643 million (77.61%) over corresponding period oflast year mainly due to better availability oflocal product and higher procurement of imported product from the financing provided by a sister concern. Gross margins of the Company at Rs. 55.162 million (4.51% of sales value) also increased by 26.924 million (95.35%) from comparative period oflast year.

Administrative expenses decreased by Rs. 6.01 million (12.77%) compared to corresponding period of previous year, mainly due to decrease inlitigation expenses andpayroll costs. Distribution & marketing expenses inreased by Rs. 1.43 million due to increased cost of freight incurred to cater to higher sales volume.

Other Income increased by Rs 10.78 million (32.65%) mainly due to write off of Cylinder Deposits. Other operating expenses decreased by Rs 0.797 million

Financial costs have decreased by 14.61 million due to decline inKIBOR rates. Profit before tax of the Company at Rs.

13.296 million, is increased by Rs. 57.693 million. from last year comparative period.

The Company's profit per share for the period under review is at Rs. 0.46 compared to loss per share ofRs. 2.05 in the corresponding period of last year.

On January 06, 2022, the Company received arevised proposal for the restructuring of loan from NBP which has since been accepted and duly executed via offer letter No. NBP/ARG/ARW(S)/BLPL/2022/08. As per the aforementioned letter, the long-term loan and accrued mark-up on long-term loanare termed as Demand Finance-I andDemandFinance-

II. The remaining outstanding loan of Rs 154 million has been restructured to running finance facility. In respect of Demand Finance - I, the Company has made aprincipal down payment ofRs. 25.44 million and the balance ofRs. 75 million to be re-paid in 20 quarterly installments starting from September 30, 2022 with a grace period of 1 year from the date of the drawdown. The facility carries mark-up at the rate of 3 months KIBOR + 2%, which will also be payable during the grace period. In respect of Demand Finance - II, the Company has made a principal down payment of Rs.

10.59 million and the balance of Rs. 95.29 million to be re-paid in 20 quarterly installments starting from September 30, 2022.

A complaint was filed by the Directorate ofInvestigation and Intelligence (Inland Revenue) (I & I - IR) on August 31, 2020, against the Company for alleged Tax evasion of approximately PKR 1.7 billion, with Special Court for Customs, Taxation and (Anti-Smuggling). Based on this complaint the court passed 2 orders against the Company and some of its directors. The orders were pertaining to freezing of Company's 9 bank accounts for 90 days and issuance ofNon Bailable Arrest Warrants of its certain Directors. The Company immediately obtained Protective Bail from the High Court and subsequently from the Special Court which was later confirmed.

The Company also filed a ConstitutionalPetition with High Court against the order of the Special Court for freezing of 9 bank accounts. All banks have removed the freeze on Company's accounts on expiry of 90 days.

The Company had received notices under section 177(1) ofIncome Tax Ordinance, 2001 regarding audit for tax years 2018 and 2019. The Company has replied and submitted relevant details and documents timely through various letters to FBR. The Company has received further notices under section 122(5A) ofthe Income Tax Ordinance, 2001 demanded income tax liability amounting to Rs. 609.79 million andRs. 617.30 million for the tax year 2018 and 2019 respectively. An appeal was preferred before the Commissioner Inland Revenue - Appeal (CIR-A) whereby the CIR-A remanded back the case to the concerned Officer Inland Revenue (OIR). Thereafter, remanded back proceeding was initiated by the learned OIR, that culminated on an order under section 124/129 of the Ordinance, whereby the demanded tax liability of Rs. 172.05 million and Rs. 87.75 million for the tax year 2018 and 2019 was created. Being aggrieved by the demand liability, the Company has appealed the demand before the Appellate Tribunal. Appellate Tribunal decided the case for 2018 in favour of the Company against which the Tax Department has filed appeal in the High Court where the hearing is pending.

The Company carries onbusiness as Sharia Compliant. Further allbank borrowings and deposits are also kept on Sharia Compliant basis.

We believe that sustainable development is only possible if we abide by our Business Principles. Burshane has firmly embedded them in all the operations of the company and we continuously strive to inculcate these principles among our stakeholders.

In the context ofbusiness growth, we would like to assure you that the management of your company is fully aware of its obligations towards its stakeholders and is determined to develop long-term corporate plans to increase the value of the business. We are looking into allpossible options to increase the market share and earn an adequate return on capital employed ofBurshane in aprofitable manner; therefore, we are confident that we will show strong performance in the coming periods.

We have once again excelled in our performance of Health, Safety, Security and Environment (HSSE), with no lost time injury and fatality. The management is committed towards not only improving the HSSE standards for itself but leading in to establish best practices for the industry as well.

The total number of directors are eight and their composition is as following:

- Male: 7

- Female: 1

Category NAME

Mr. Shaikh Abdus Sami Independent Director | Maj. Gen (R) Rafiullah Khan

Brig. (R) Rashid Siddiqi

Non-Executive

Mr. Asad Alam Niazi

Directors

Ms. Shahbano Hameed

Mr. Muhammad Ali Alam Niazi

Non-Executive Directors

Mr. Saifee Zakiuddin

Mr .Amir Aziz

The following Committees continued to function as per the requirements of the law and as directed by the Board.

1. Audit Committee

   Maj. Gen Ratiullah Khan (R) Mr. Shariah Abdus Sami Brig. (R) Rashid Siddiqi

   Mr. Muhammad AU Alam Niazi

2. Human Resource and Remuneration Committee

Mr. Asad Alam Niazi Mr. Saifee Zalciuddin Brig. (R) Rashid Siddiqi

Mr. Muhammad Ali Alam Niazi

Financial Highlights:

Following are the key numbers of the results for the period: Net Sales

Gross Margins Profit before Tax Prott after Tax

Earnings per share

Chairman Member Member Member

Chairman

Member

Member Member Member

(Rs. in '000)

1,223,543

55,162

I 3,296

10,237

0.46

Following is the a ro riation: Dividend declared

Cash

Bonus

NI

On behalt of the Board, we would like to tlianlcs our staff, business paftners, customers and all other stakeholders for their continued support in ensuring sustainable growth of the Company and for making Burshane their brand of first choice.

Sail 'uddin Director

Karachi

Dated: March 02, 2026

Muhamm i am Niazi

Director / CEO

BURSHANE LPG (PAKISTAN) LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2025

Clarl‹son Hyde Saud Ansari

Chartered Accountants

Office No. 1501, 15th Floor, Caesar's Tower, Plot No. ST-1 0, Shohro-e- Faisal, Ko rachi-75350 Tel: + 92 21 32803221, 32803222

E m a i I: info@ c Ia rks onh yd e . pk Web: www.cIorksonhydeglobol.pk

Offices in lslomobod & Lahore

Pakistan representative of Clarkson Hyde Global

Global Association of Auditors, Accountants, Tax Sp"ecialists and Business Advisors

To the members ofBURSHANE LPG (PAKISTAN) LIMITED

Report on review ofInterim Financial Statements

We have reviewed the accompanying condensed interim statement of financial position of BURSHANE LPG (PAKISTAN) LIMITED (the Company) as at 31 December 2fi25 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 ofinterim financial statements consists ofmaking inquiries, primarily ofpersons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in sc€lpe than an audit conducted in accordance with International Standards pn Auditing and consequently does not enable us to obtain assurance that we would become aware ofall significant matters that might be identified inan 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 allmaterial respects, inaccordance with accounting and reporting standards as applicable inPakistan for interim financial reporting.

Clcrl‹son Hyde Saucl Ansari

Chartered Accountants

Other Matter

Office No. 1501, 15fh Floor, Caesar's Tower, Plot No. ST-1 0, Shohro-e- Faisal, Korachi-75350 Tel: -t- 92 21 32803221 , 32803222

E ma i I : info @ c Ia rks o n hyd e . pk Web: www.cIarkson hydeglobol. pk

Offices in Islamabad & Lohp,re

Pakistan representative of Clarkson Hyde Global

Global Association of Auditors, Accountants, Tax Sp"ecialists and Business Advisors

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 ofthe Company. Accordingly, the figures ofthe condensed interim statement ofprofit or loss and condensed interim statement of comprehensive income for the three months periods ended 30 June 2025 and 30 June 2024 have not been reviewed by us.

The engagement partner on the audit resulting in this independent auditors' report is SAUD

DATE: February 28, 2026

UDIN: RR202510l49DhI1fKSUd

CTOR

The annexed notes from 1 to 14 form an integral part of these unconsolidated condensed interim financial statements.

CHIEF E CU E OFFICER CHIEF FINANCIAL OFFICER

,HANE LPG (PAKISTAN) LIMITED

CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED) OR THE HALF YEAR ENDED DECEMBER 31, 2025

Sales - net Cost of sales Gross profit

Administrative expenses Distribution and marketing expenses Other income

Other operating expenses

Operating profit Finance costs

Profit / (Loss) before levies and taxation

Levy

Profit / (Loss) after levies and taxation

Quarter ended Half year ended December 31, December 31, December 31, December 31,

Note (Rupees in '000)

12 701,148 425,111 1,223,543 688,900

(676,939) (412,670) (1,168,381) (660,662) 24,209 12,441 55,162 28,238

(4,279) (10,469) (24,752) (40,910) 19,930 1,972 30,410 (12,672)

(9,395) (15,854) (17,114) (31,725) 10,535 (13,882) 13,296 (44,397)

(1,753) (1,063) (3,05S) (1,722)

Earnings / (Loss) per share - basic and diluted Rs.)

The Company has incurred an operating profit of Rs. 10.237 million and as of the reporting date, the accumulated losses stand at Rs 188.465 million and cuiTent liabilities exceed cun'ent assets by Rs. 220.898 million. These financial statements have been prepared on going concern basis, yet these factors may affect the ability to continue as a going concern.

Despite the above factors, the Company maintains positive equity. Management anticipates improved gross margins and profitability in future periods, driven by strategic cost rationalization, enhanced operational effectiveness and expected recovery in sales volume. Continued financial support is available and the sponsors have reaffirmed their intent to provide financial assistance.

Hence, there is amaterial uncertainty which casts significant doubt on the Company's ability to continue as a going concern, therefore it may be unable to realize its assets and discharge its liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and discharge and classification of liabilities that may be necessary should the Company be unableto continue as a going concern.

GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

Geographical location and addresses ofmajor business units of the Company are as under:

Karachi:

Plot No. 70, Sector 7-D, Korangi Filling Plant-1, Adjacent to Pakistan Refinery Limited, Korangi Creek

Faisalabad:

Square No. 94, Killano. 1,2,3,4,5,6 & 7, Tehsil Faisalabad, Near Abbaspur Railway Station.

Purpose

LPG Storage & filling plant

LPG Storage & filling plant

1. BASIS OF PREPARATION

   1. Statement of compliance

      These unconsolidated 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 as applicable inPakistan for interim financial reporting comprise:

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

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

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

        These unconsolidated condensed interim financial statements do not include all the information and disclosures as 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.

   2. Basis of measurement

      In these condensed interim unconsolidated financial statements, all items have been measured at their historical cost except for freehold land and leasehold land which are stated at their revalued amounts.

   3. Functional and presentation currency

      Items included in these unconsolidated condensed interim financial statements are measured using the currency of the primary economic environment in which the Company operates. These unconsolidated condensed interim financial statements are presented in Pak Rupees which is the Company's functional and presentation currency.

   4. Use of estimates and judgments

      In preparing these unconsolidated condensed interim financial statements, the significant jud ents made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those applied in the Company's annual financial statements as at and for the year ended June 30, 2025.

   5. Material accounting policies

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

      Institute of Chartered Accountants ofPakistan (ICAP) has withdrawn Technical Release 27 'IAS 12, Income Taxes (Revised 2012)' and issued the 'IAS 12 Application Guidance on Accounting for Minimum Taxes and Final Taxes' (the Guidance). Accordingly, in accordance with the Guidance, the Company has changed its accounting policy to recognise minimum and final taxes as 'Levy' under IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" which were previously being recognised as 'Income tax.

      The change in accounting policy has been accounted for retrospectively in accordance with International Accounting Standard 8: "Accounting Policies, Changes in Accounting Esthnates and Errors'. However, there is no material impact on unconsolidated condensed interim financial statement, therefore it has not been accounted for retrospectively.

2. PROPERTY, PLANT AND EQUIPMENT

   Operating fixed assets, at net book value Right-of-use assets

   1. Operation fixed assets

      Note

      5.1

   2. (Un-audited) (Audited)

      December 31, June 30,

      2025 2025

      ------- (Rupees in '000) -------

      836,856 858,512

      16,790 18,872 53 646 77 384

      Additions - at cost, to operating fixed assets during the period were as follows:

      Furniture, fittings, electrical and other equipment	268	459
      Plant & machinery		766
      Computers and related accessories	100	301
      	368	1,526

      18,872

      29,963

      5.2 Right-of-use assets

      Balance at the beginning of the period / year Additions during the period / year
      	18,872	29,963
      Depreciation charged during the period / year	(2,082)	(11,091)
      Balance at the end of the period / year	16,790	18,872

      The right to use assets comprises ofpremises acquired on lease by the Company for its operations.

      (Un-audited) (Audited) December 31, June 30,

      2025 2025

      Note ------- (Rupees in '000) -------

3. TRADE DEBTS

   Unsecured - considered good

   Trade debtors	118,448	62,736
   Allowance for expected credit losses	(20,572)	(22,228)
   	7 876	0 08

4. LONG-TERM LOAN

   Secured

   National Bank ofPakistan (NBP)

   7.1

   81,875

   97,875

   Current maturity of long-term loan (81,875) (97,875)

   
   
   

   1. In year 2015, long-term finance obtained, under conventional banking terms, by HTPL had been transferred to the Company at the time of amalgamation (the scheme). This loan was obtained as a demand finance facility under the agreement dated April 08, 2013 from National Bank of Pakistan (NBP) and was repayable in 9 semi-annual installments ofRs. 44.44 million latest by April 01, 2018 with a grace period of six months. The loan carried mark-up at rate of 6 months KIBOR plus 2.5% per annum.

      On June 08, 2022 long term loan was restructured into Demand finance I, Demand finance II and short term borrowing, terms are as follows.

      Facility	(Rupees in '000)	Repayment term	Markup rate
      Demand Finance - I	74,996	20 quateraly installments	Jntereyt free
      Demand Finance - II	95,289	20 quateraly installments	3 MK + 2%
      Running Finance	154,000	revolving nature	3 MK + 1.75%

      Payments were made in accordance with the restructured terms until December 31, 2023. However, the Company has since defaulted on its payments as outlined in the restructuring agreement. The Company is currently engaged innegotiations with National Bank ofPakistan (NBP) for a revised restructuring plan.

5. LEASE LIABILITIES

(Un-audited) (Audited) December 31, June 30,

2025 2025

------- (Rupees in '000) -------

1. SHORT TERM LOAN

   Related party - unsecured

   Burshane Petroleum (Private) Limited ChiefExecutive Officer

   10.1

   10.2

   (Un-audited) (Audited)

   December 31, June 30,

   2025 " 2025

   131,550 58,000

   - 9,333

   31 550 7 333"

   1. This loan has been obtained for the purpose of purchasing LPG. The markup nn this loan is calculated as 30% of the gross profit, after deducting hospitality charges.

   2. This loan was acquired for the purchase ofLPG. During the period, additional loan ofRs. 11.12 million was acquired and Rs. 13.82 million was repaid. This loan carries markup of 3 monthKIBOR + 2% per anum.

2. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      1. The Special Sales Tax Reference Application (STRA) has been filed by the Commissioner Inland Revenue, Zone-IV, Large Taxpayers Unit Karachi in the High Court of Sindh at Karachi on December 18, 2019. During the year ended June 30, 2018, tax authorities issued Order dated May 25, 2018 and charged sales tax under section 8B of Sales Tax Act, 1990, raising sales tax demand and imposing penalties aggregating to Rs.

         133.11 million and also default surcharge for tax periods from July 2014 to March 2018. Against the said Order, the Company filed appeal before Commissioner (Appeals-I), Karachi who vide Order dated July 03, 2018 vacated the whole principal amount of sales tax of Rs. 65.57 million and reduced the imposition of penalties from Rs. 67.54 million to Rs. 0.50 million only. However, the liability on account of default surcharge was maintained.

         The Order of the Commissioner (Appeal) was challenged before the Hon'ble Appellate Tribunal Inland Revenue, Karachi who vide Order dated August 28, 2019 reduced the substantial amount of default surcharge to Rs. 1.34 million and maintained the amount of penalty Rs. 0.50 million. The Company has paid the reduced amount of default surcharge and penalty without pursuing the matter before the High Court.

      2. On July 31, 2015, the Company received a show cause notice under the Punjab Rented Premises Act, 2009, from the landlords of a leased property comprising approximately 51 Kanals and 03 Mar1'as, situated in Square No. 94, KillaNos. 1-7, Tehsil Faisalabad, near Abbaspur Railway Station. The Company utilizes this premises for its LPG storage and filling operations.

         Subsequently, the landlords filed an ejectment petition before the learned Rent Tribunal, Faisalabad. The petition was adjudicated in favor of the Company. However, the landlords have challenged the decision through an appeal before the learned Additional District and Sessions Judge, Faisalabad. The Case have been decided in Company's Favour and the Land Lordhas not filled any application to date inHigh Court against the order ofDistrict Session Court.

      3. The captioned Special Sales Tax Reference Application (STRA) is filed by the Commissioner Inland Revenue, Zone-IV, Large Taxpayers Unit Karachi in the High Court of Sindh at Karachi. On September 28, 2018, tax authorities levied sales tax under section 8B of Sales Tax Act, 1990, raising sales tax demand along with the levy ofpenalty aggregating to Rs. 7.90 million for tax periods from April 2018 to May 2018.

         Against the Order, the Company filed appeal before Commissioner (Appeals-I), Karachi, who vide Order dated October 31, 2018 vacated the whole principal amount of sales tax of Rs. 7.67 million. However, the liability on account of default surcharge andpenalty was maintained. "

         The Order of the Commissioner (Appeal) was challenged before the Hon'ble Appellate Tribunal Inland Revenue, Karachi who vide Order dated August 28, 2019 reduced the substantial amount of default surcharge to Rs. 0.16 million and maintained the amount ofpenalty Rs. 0.23 million. The Company has paid the reduced amount of default surcharge and penalty without pursuing the matter further.

      4. The Company has filed Special Federal Excise Duty (FED) Ref. Application before the Honorable Sindh High Court (SHC) against the Appellate order dated April 02, 2012 of the Appellate Tribunal IR. The tax authorities at Large Taxpayers Office established a demand towards FED on the payment iof license fee paid/payable by the Company in relation with the software / IT services acquired from the non-resident parent company under the tariff heading "kanchise service" as per First Schedule to Federal Excise Act, 2005. At that time, Burshane LPG (Pakistan) Limited was a subsidiary of Shell Group, operating under the name of Shell LPG Pakistan Limited.

         The scope of services under the head 'franchise services' was not clear when the Federal Excise Act was promulgated in the year 2005 and then the jurisdictional issues also made the matter more complicated when the franchise services were subjected to Provincial sales tax by promulgation of Sindh Sales Tax on Services Act, 2011 effective July 01, 2011.

         Software licensing does not fall under the service classification "franchise services" and this aspect has been settled at the Appellate Tribunal level inreported judgments, also. Hence, the Company has a strong arguable case to defend its position that the impugned demand ofFED may not be warranted. However ,the Company has filed an appeal to the SHC and the matter is stillpending.

      5. During the year, the Company received a letter from Pakistan Refinery Limited (PRL) regarding the lease rental agreement, requesting payment of 15% Sindh Sales Tax (SST) on rental payments under the service category of "Renting of immovable property." In response, the Company filed a constitutional petition no. 1553/2025 before the Honourable Sindh High Court challenging the applicability of SST on rental income in light of the amended provisions of the Sindh Sales Tax on Services Act, 2011 (the Act). An interim order dated April 22, 2025 has been issued, and the matter remains pending adjudication.

         It is pertinent to note that the issue of service tax onrental income had previously been adjudicated in favour of the taxpayer during an earlier round of litigation. However, the current petition specifically contests the legislative amendments introduced to the Act. Given the ongoing legal proceedings and the uncertainty surrounding the final outcome, no provisionhas beenmade in the financial statements.

      6. A complaint was filed by the Directorate of Investigation and Intelligence (Inland Revenue) (I & I - IR) on August 31, 2020, against the Company for alleged Tax evasion of approximately Rs. 1.78 billion, with Special Court for Customs, Taxation and (Anti-Smuggling). Based on this complaint the court passed 2 orders against the Company and some of its directors. The orders were pertaining to freezing of the Company's 9 bank accounts for 90 days and issuance ofnon bailable arrest warrants of its certain Directors. The Company immediately obtained Protective Bail from the Honorable Sindh High Com (SHC) and subsequently from the Special Court which was later confirmed.

         The Company also filed a Constitutional Petition with Honorable Sindh High Court (SHC) against the order of the Special Court for freezing of 9 bank accounts. All banks have removed the freeze on the Company's accounts on expiry of 90 days.

         The Company had received notices under section 177(l) of Income Tax Ordinance (ITO), 2001 regarding audit for tax years 2018 and 2019. The Company has replied and submitted relevant details and documents timely through various letters to FBR. The Company has received further noticés under section 122(5A) of the ITO, 2001 demanded income tax liability amounting to Rs. 609.79 million and Rs. 617.30 million for the tax year 2018 and 2019. An appeal was preferred before the Commissioner Inland Revenue - Appeal (CJR-A) whereby the CIR-A remanded back the case to the concerned Officer Inland Revenue (OIR). Thereafter, remanded back proceeding was initiated by the learned OIR, that culminated on an order under section 124/129 of the Ordinance, whereby the demanded tax liability of Rs. 172.05 million and Rs. 87.75 million for the tax year 2018 and 2019 was created. Being aggrieved, the taxpayer again preferred an appeal before ATIR-I, of which our case for 2018 has been decided in our favour and the entire demand has been deleted. Case hearing for 2019 is currently pending. "

   2. Commitments

      This includes post-dated cheques issued amounted to Rs. 11.47 million (June 30, 2024: Rs. 22.12 million).

3. SALES - NET

   Gross sales

   Liquefied Petroleum Gas (LPG) Low Pressure Regulators (LPR)

   Sales tax Sales return Advance tax

   Quarter ended Half year ended

   December 31,	December 31,	December 31,	December 31,
   2025	2024	2025	2024
   Un-audited	Un-audited	Un-audited	Un-audited

   Rupees in 000's

   831,808 508,533 1,452,709 821,476

   27 16 53 47

   831,835 508,549 1,452,762 , 821,523

   (126,872)	(76,296)	(221,574)	(124,031)
   (3,700)	(6,800)	(7,425)	(8,208)
   (115)	(342)	(220)	(384)

   (130,687) (83,438) (229,219) (132,623)

   01 148 25 11 23 543 88 900

4. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

   1. The related parties include the former holding company, subsidiary company, staff retirement benefit / contribution plans, associate companies / other related parties, Directors and other Key Management Personnel. All transactions with related parties are entered into at agreed terms duly approved by the Board ofDirectors of the Company.

   2. Details of transactions with related parties during the reporting period, other than those which have been disclosed elsewhere in these unconsolidated condensed interim financial statements, are as follows:

      1.

      1. Transactions with related parties

         Nature of relations hip

         Subs idiary

         Burshane Auto Gas (Private) Limited

         Nature of trans actions

         Expenses incurred on behalf of the Company

         Hnlf year ended Decembe r 31, December 31,

         2025 2024

         (Rupees in '000) ---(Un-audited)

         248

         Staff retlrement benefit / contribution plans Burshane LPG(Pakistan) Limited:

         Provident Fund

         Ass ociate companies / other related parties

         Burshane Petroleum (Private) Limited

         Company's contribution for the period

         1,121

         1,210

         [Formerly Darian International (Private)	Short tennLoan - received	334,174 212,000
         Limited]	Short termLoan - paid	254,000 139,000
         	Interest expense on short term loan	6,315 4,381
         	Interest paid on short termloan	6,624 . 2,019

         Directors

         Short termLoan - received

         14,800

         Short termLoan - paid

         9,333

         17,495

         Interest expense on short term loan Interest paid on short termloan

         2,754

         1,562

         Nature of relations hip

         Key management personnel

         ChiefExecutive Omcer

         Nature of transactions

         Managerial remuneration and other benefits

         Contribution to retirement and other service benefits

         Halfyear ended December 31, December 31,

         2025 2024

         - (Rupees in '000) ------(Un-audited)

         452 -

         37

         Executive Directors

         Managerial remuneration and

         other benefits _

         3,298

         2,700

         Advance given against salary _

         Directors

         11.2.2 Balances with related parties

         Fee for attending rmetings

         2,050

         1,450

         Balances with related parties as at the reporting period end, other than those which have been disclosed elsewhere in this unconsolidated condensed interim financial statements, are as follows:

         
         
         

         Nature of relations hip

         Burshane Auto Gas (Private) Limited	Investment in a subsidiary company	50,000	50,000
         	Loan payable to a subsidiary company	50,000 h	50,000
         	Receivable against expenses	1,348	1,068

         Sufaidiery

         Noture of thatances

         DccemMr3l, Juue30, 2025 2025

         -- (Rupees in '000) ------

         Associated Companies / Other Rehtted Parties

         Burshane Petroleum(Private)
         Limited [Formerly Darian International (Private) Limited3	Receivable against use of name
         	"Burshane"	9,0"0"0"""	9,000
         	Loan Payable	131,550	58,000
         	Markup payable	6,315	6,757
         DirectOf	Dividend Payable	59,082" "	5"9,082
         	Short-term loan		9,333
         	Markup payable		4,577

         Key managermnt personnel

5. FAIR VALUE MEASUREMENT

   Advance to ChiefFinancial Officer

   
   
   

   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.

   1. Fair value of hierarchy

At the reporting date, the Company's all assets and liabilities are carried at amortised cost except for those mentioned below:

The Company's freehold land and leasehold land are stated at revalued amounts, being the fair value at the date of revaluation, less any subsequent impairment losses, if any. The fair value measurement of the Company's free holdland at August 27; 2025 and leasehold land as at June 30, 2025 was carried out by Mls. ICEMES (Private) Limited.

The valuation techniques and inputs used to develop fair value measurement of aforementioned assets are as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities;

Level 2: Those involving inputs other than quoted prices included inLevel 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

Level 3: Those whose inputs for the asset or liability that are not based on observable market date (unobservable inputs).

There were no transfers between level 1, 2 or 3 of the fair value hierarchy during the reporting period.

Details of fair value hierarchy and information relating to fair value of the Company's freehold land and leasehold land are as follows:

Fair value measurement

Level 1 Level 2 Level 3 Total

(Rupees in '000)

December 31, 2025 (Un-audited): Assets measured at fair value

Property, plant and equipment

Freehold land

- 16,800

- 16,800

Leasehold land

- 680,500 - 680,500

- 6 7300 - 697,300

June 30, 2024 (Audited): Assets measured at fair value

Property, plant and equipment

Fair value measurement

Level 1 Level 2 Level 3 Total

(Rupees in '000)

Freehold land

- 16,800

- 16,800

Leasehold land

- 680,500 - 680,500

- 97300 - 97300

1. SUBSEQUENT EVENTS AFTER THE REPORTING PERIOD t,

   1. For the tax year 2016, a notice dated June 25, 2018 was issued to the Company to provide certain information / details for audit proceedings. The notice was duly complied.

      Show cause notice dated June 13, 2019 was issued to amend assessment u/s 122(9) read with section 214C of the Income Tax Ordinance, 2001 which was duly responded on all the points. Subsequently, order dated August 29, 2019 passed by the DCIR raising null tax demand due to applicability ofminimum tax.

      The Company filed appeal to the Commissioner (Appeals) against the aforesaid order dated August 29, 2019. Tfie said appeal was heard and order passed wherein the Commissioner (Appeals) has confirmed the certain additions made by the DCIR, whereas, he has annulled / deleted certain additions i.e. (rent, advertising expenses and financial charges - profit on debt) as such. Further, the Commissioner (Appeals) has also directed the Officer to allow credit of actual taxes paid of Rs. 23.45 million subject to due verification. Appeal effect under section 124 to be filed.

      Monitoring of WHT was conducted by the DCIR by issuing a notice under section 176 dated March 28, 2018 which was duly responded. Thereafter, a show-cause notice dated February 13, 2019 was issued under section 161(1A) confronting on non-withholding of taxes on certain payments. Response was"duly filed and accordingly order dated March 15, 2019 was passed under section 161 / 205 by the ACIR wherein the total tax demand of Rs. 2.05 million was raised which comprised the defaulted amount of Rs. 1.552 million; default surcharge of Rs. 0.49 million. Against the Order, the Company filed an appeal before the Commissioner (Appeals-l) which was heard and appellate order passed dated May 15, 2019 wherein Commissioner (Appeals-l) remanded back the Order of DCIR with the directions to verify supporting documentary evidences in respect of expenses claimed to be furnished by appellant company within seven days time. Following the underlying directions of Commissioner (Appeals-l) the Company has filed the details of expenses / payments in question vide our letter no. KT-AA-3707 dated May 22, 2019 to the DCIR for onward proceedings.

      The Company filed application dated March 25, 2021 for approval for revision ofreturn under clause (ba) of subsection 6 of section 114 of Income Tax Ordinance, 2001, for charging minimum tax u/s 113 at the rate 0.2% instead of 1%. The commissioner audit vide his letter dated May 07, 2021 rejected the request of the Company for granting permission for revision of return. The Company has filed a petition in the Hon'ble High Court of Sindh with prayer to direct the Commissioner Inland Revenue to allow revision of return of income for the tax year 2016. The Court ruled in favor of the Company. Consequently, the 'Commissioner Inland Revenue, through a letter dated March 03, 2025, granted permission to revise the return for the mentioned tax year.

2. DATE OF AUTHORIZATION FOR ISSUE

These unconsolidated condensed interim financial statements were authorised for issue on March 2 2026 by the Board ofDirectors of the Company.

18' GENERAL

CHIEF CUTIVE OFFICER CHIEF FINANCIAL OFFICER

BURSBANE LPG (PAKISTAN) LVOTED

CONSOLIDATED CONDENSED INTE I STATEMENT OF FINANCIAL POSITION

AS AT DECENIBER 31, 2025

Clarl‹son Hycte Saud Ansari

Chartered Accountants

Office No. 1501, 15fh Floor, Caesar's Tower, Plot No. ST- 0, Shohro-e-Faisal, Karachi-75350 Tel: + 92 21 328032 2 I , 32803 222

E ma iI: info@ cIa rks onhyde . pk Web: www.clorksonhydeglobol.pk

Offices in Islamabad & Lahore

Pakistan representative of Clarkson Hyde Global

Global Association of Auditors, Accountants,

Tax Specialists and Business Advisors

To the members ofBURSIIANE LPG (PAKISTAN) LIMITED

Report on review ofInterim Financial Statements

We have reviewed the accompanying condensed interim statement of financial position of BURSHANE LPG (PAKISTAN) LIMITED (the Company) as at 31 December 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 standaids 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 ofReview

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 ofinterim financial statements consists ofmaking inquiries, primarily ofpersons 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 inan audit. Accordingly, we do not express an audit opinion.

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 allmaterial respects, inaccoidance 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 ofthe condensed interim statement ofprofit or loss and condensed interim statement of comprehensive income for the three months periods ended 30 June 2025 and 30 June 2024 have not been reviewed by us.

The engagement partner on the audit resulting in this independent auditors' repos is SAUD

DATE: February 28, 2026

UDIN: RR202510149gz8XWo1Tb

BURSHANE LPG (PAKISTAN) LIMITED

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2025

ASSETS

NON-CURRENT ASSETS

(Un-audited) (Audited)

December 31, June 30,

2025 2025

Note ------- (Rupees in '000) -------

Property, plant and equipment Intangible assets

4 853,64d

31,168

877,384

36,184

Long-terin deposit 3,174 3,174

CURRENT ASSETS

887,988

916,742

Revenue reserves (61,058) (l l 1,817)

NON-CURRENT LIABILITIES

408,271

357,517

R ' CTOR

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

CHIEF E UTIVE OFFICER CHIEF FINANCIAL OFFICER

BURSHANE LPG (PAKISTAN) LIMITED

CONSOLIDATED CONDENSED INTERIM SJ'ATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE HALF YEAR ENDED DECEM rn 3i, 2025

Quarter ended Half year ended December 31, December 31, December 31, December 31,

2025 2024 2025 2024

Note (Rupees in '000)

Sales - net

11.1.5

701,148

425,111 1,223,543 688,900

Cost of sales (676,939) (412,670) (1,168,381) (660,662)

Gross profit Administrative expenses

Distr ibution and marketing expenses Other income

Other operating expenses

24,209

12,441 55,162 28,238

33,128 (10,469) 12,655 (40,910)

Operating profit

57,337

1,972 67,817 (12,672)

Finance costs (9,395) (15,854) (17,114) (31,725)

TOR

CHIEF EX VE OFFICER CHIEF FINANCIAL OFFICER