Transmission of quarterly report for the period ended september 30, 2025

Board of Directors Naila Humayun Maqbool

Imran Maqbool Humayun Maqbool Hanya Maqbool Mansoor Raiz

Syed Rizwan Husain Sheikh Muhammad Ali Asif

(Chairperson, Non-Executive Director) (Chief Executive Officer, Executive Director) (Executive Director)

(Non-Executive Director) (Non-Executive Director)

(Independent, Non-Executive Director) (Independent, Non-Executive Director)

Chief Financial Officer Kamran Rasheed

Company Secretary Javaid Hussain

Audit Committee Sheikh Muhammad Ali Asif

Naila Humayun Maqbool Hanya Maqbool

(Chairman) (Member) (Member)

Human Resources & Remuneration Committee

Syed Rizwan Husain Naila Humayun Maqbool Hanya Maqbool

(Chairman) (Member) (Member)

Auditors BDO Ebrahim & Company Chartered Accountants

Legal Advisor Mohsin Tayebally & Sons

Share Registrar

Corplink (Pvt) Limited

Wings Arcade, 1-K, Commercial, Model Town, Lahore.

Tel: (042) 35916714, 35916719, 35839182

Email: shares@corplink.com.pk

Registered Office 104 Shadman 1, Lahore - 54000

Tel : (042) 35960871-4 Lines

Head Office 7th Floor, Lakson Square Building No. 3, Sarwar Shaheed Road, Karachi

Tel : (021) 35682073-74

Project Locations Unit No. 1

Unit No. 2

Plot No. B/123, Road No. D-7, Industrial Area Nooriabad, District Dadu Sindh 17-Km, Faisalabad Road, Bhikhi, District Sheikhupura, Punjab

E-mail: lo@crescentfibres.com

Website: https://www.crescentfibres.com

The Company reported after tax loss of Rs.77.9 million for the quarter ended September 30, 2025 as compared to a loss of Rs. 96.5 million for the three months ended September 30, 2024. The earnings per share for the period under review was negative Rs. 6.27 as compared to negative Rs.

7.77 in the previous quarter.

Overall, sales decreased by 35% as compared to the quarter ended September 2024. This is primarily attributable to low demand which forced the company to curtail production. The gross margin for the period was

-0.8% as compared to 1.3% in the previous period. Distribution and administrative expenses at 4.6% were higher as compared to 3.1% in the previous period primarily attributable to the general inflationary trend and lower capacity utilization and sales. The operating margin in the period under review was negative 3.7% as compared to negative 1.1% for the quarter ended September 30, 2024. The financial charges were lower at 3.7% as compared to 4.2% for the corresponding period due to the decrease in interest rates and lower borrowing. Overall, the net margin for the quarter was -7.7% as compared to -6.2% for the previous quarter.

The last couple of years have been very challenging for the textile industry caused by a weakening global economy, rising interest rates and inflation and overall commodity and financial market volatility which led to severe demand destruction and pressure on margins. The forecast for global growth five years from now-at 3.1 percent-is at its lowest in decades. This is due to tariff policy uncertainty and structural frictions. A strong and stable recovery is crucial to the textile industry viability. Imprudent economic policies combined with recent global events have made Pakistan's economy particularly fragile. Without meaningful reforms that boost economic competitiveness, direct investment toward productive sectors that promote exports and a sustained effort to end the regulatory quagmire, Pakistan's economic recovery will continue to falter. Industrial output decline 0.74% in FY25 as energy costs, policy inconsistency and weak productivity continued to weigh on growth.

Other than global and domestic economic issues, the textile industry faces other challenges including high cost of doing business, increased financial, exchange rate and commodity market volatility, low domestic cotton yield and quality. The Government had promised supply of energy at regionally competitive rates, but this has been abandoned and energy rates have been increased. Without a regionally competitive energy tariff Pakistan textile exports will continue to suffer. In addition, the Government must adopt a prudent monetary policy, immediately suspend the sales tax regime, which is making domestic products uncompetitive versus imports, and improve liquidity by releasing long delayed income tax and other rebates.

In light of the global economic scenario and Pakistan's own challenges, we expect the next year to be a difficult one for the textile industry. Cognizant of the negative outlook, the Management will continue to rely on sound, low risk decision making to protect the interests of the shareholders and is actively evaluating strategic options to restore viability and profitability.

The Management wishes to place on record its appreciation for the hard work and devotion of its workers and the invaluable advice and support of the Company's Directors, shareholders and bankers.

IMRAN MAQBOOL

Chief Executive Officer October 31, 2025

NAILA HUMAYUN MAQBOOL

Director

ASSETS

NON CURRENT ASSETS

September 30, June 30,

2025 2025

(Un-audited) (Audited)

Note Rupees Rupees

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

IMRAN MAQBOOL

Chief Executive Officer

NAILA HUMAYUN MAQBOOL

Director

KAMRAN RASHEED

Chief Financial Officer

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

IMRAN MAQBOOL

Chief Executive Officer

NAILA HUMAYUN MAQBOOL

Director

KAMRAN RASHEED

Chief Financial Officer

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

IMRAN MAQBOOL

Chief Executive Officer

NAILA HUMAYUN MAQBOOL

Director

KAMRAN RASHEED

Chief Financial Officer

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

IMRAN MAQBOOL

Chief Executive Officer

NAILA HUMAYUN MAQBOOL

Director

KAMRAN RASHEED

Chief Financial Officer

Quarter ended

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

IMRAN MAQBOOL

Chief Executive Officer

NAILA HUMAYUN MAQBOOL

Director

KAMRAN RASHEED

Chief Financial Officer

1. STATUS AND NATURE OF BUSINESS

   Crescent Fibers Limited ("the Company") was incorporated in Pakistan on August 06, 1977 under the repealed Companies Act, 1913 (now the Companies Act, 2017) as a public limited company. The Company's shares are listed on the Pakistan Stock Exchange. The principal business of the Company is manufacture and sale of yarn.

   Geographical locations and addresses of all the business units are as under: Locations

   Karachi

   Office no. 7th Floor, Lakson Square Building No.3 Karachi, Pakistan.

   Lahore

   Office no.104, Shadman-1, Lahore, Pakistan.

   Nooriabad

   Plot No. B/123, Road No. D-7, Industrial Area Nooriabad, District Dadu, in the Province of Sindh

   Bhikhi

   17-KM, Faisalabad Road, Bhikhi, District Sheikhupura in the Province of Punjab

2. BASIS OF PREPARATION

   1. Statement of compliance

      These condensed interim financial statements of the Company for the period ended September 30, 2025 have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

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

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

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

      Where the provisions of and directives issued under the Companies Act, 2017 and IFAS-2 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 and IFAS-2 have been followed.

      1. These condensed interim financial statements do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the annual audited financial statements of the Company as at and for the year ended June 30, 2025, which have been prepared in accordance with accounting and reporting standards as applicable in Pakistan. 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 financial statements.

      2. The comparative statement of financial position presented in these condensed interim financial statements as at June 30, 2025 have been extracted from the annual audited financial statements of the Company for the year ended June 30, 2025, whereas the comparative condensed interim statement of profit or loss and condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows together with the notes thereto for the period ended September 30, 2025 have been extracted from the condensed interim financial statements of the Company for the period ended September 30, 2024 which were subjected to a review but not audited.

      3. The condensed interim financial statements are unaudited and being submitted to members as required under section 237 of the Companies Act 2017 and Listing Regulations of Pakistan Stock Exchange.

   2. Basis of measurement

      These condensed interim financial statements have been prepared under the historical cost convention unless stated otherwise.

   3. Initial application of standards, amendments or an interpretation to existing standards

      1. Standards, amendments and interpretations to accounting standards that are effective in the current period

         Certain standards, amendments and interpretations to accounting standards are effective for accounting periods beginning on January 01, 2024, but are considered not to be relevant or to have any significant effect on the Company's operations (although they may affect the accounting for future transactions and events) and are, therefore, not detailed in these condensed interim financial statements.

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

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

   4. Functional and presentation currency

      These condensed interim financial statements have been presented in Pakistani Rupee ('Rupee', or 'Rs'), which is the functional and presentation currency of the Company.

      
      
      

      ‌NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

      FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. MATERIAL ACCOUNTING POLICY INFORMATION

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

2. ESTIMATES AND JUDGMENTS

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

3. OPERATING FIXED ASSETS

   September 30, June 30,

   2025 2025

   (Un-audited) (Audited)

   Note Rupees Rupees

   Operating fixed assets 5.1 2,355,323,056 1,544,193,357

   Right-of-use assets 5.2 120,397,621 126,627,890

   2,475,720,677 1,670,821,247

   5.1 Fixed assets
   Opening net book value (NBV)	1,544,193,357	1,639,735,312
   Transfer from right of use asset (NBV)	2,822,434	7,410,573
   Surplus on revaluation of property, plant and equipment 5.3	838,475,123	-
   Additions (at cost) during the period / year	-	27,427,159
   	2,385,490,914	1,674,573,044
   Disposals (at NBV) during the period / year	(77,165)	(750,174)
   Depreciation charged during the period / year	(30,090,693)	(129,629,512)
   	(30,167,858)	(130,379,687)
   Closing net book value (NBV)	2,355,323,056	1,544,193,357
   5.2 Right-of-use assets
   Opening net book value (NBV)	126,627,890	150,590,647
   Transfer from leased assets to own assets (NBV)	(2,822,434)	(7,410,573)
   Depreciation charged during the period / year	(3,407,835)	(16,552,184)
   	120,397,621	126,627,890
   5.3 During the quarter ended 30 September 2025, the	Company revalued	its leasehold land in

   accordance with the revaluation model under IAS 16 - Property, Plant and Equipment. The revaluation was carried out as at 30 September 2025 by an independent valuer having relevant professional qualifications and experience.

   The fair value was determined using the market approach under IFRS 13 - Fair Value Measurement, based on recent market transactions for similar properties, adjusted for location and other characteristics. The valuation is classified as a Level 2 fair value measurement in the IFRS 13 hierarchy.

   As a result of the revaluation, the carrying amount of leasehold land increased from Rs. 1.524 Million to Rs. 840 Million, resulting in a revaluation surplus of Rs. 838.475 Million recognized in other comprehensive income and accumulated in equity under revaluation surplus, net of deferred tax.

   The Company will continue to assess the fair value of its land periodically to ensure that the carrying amount does not differ materially from its fair value.

4. INTANGIBLE ASSETS

   Computer software 3,522,242 4,067,604

   Movement in intangible assets

   Opening net book value 4,067,604 6,249,052

   Amortisation charged (545,362) (2,181,448)

   Closing net book value 3,522,242 4,067,604

5. LONG TERM INVESTMENTS

   Fair value through other comprehensive income

   Listed Equity Securities

   Cost 48,187,534 48,187,534

   Unrealized gain on revaluation of investments 82,480,316 78,059,963 Impairment loss (12,648,915) (12,648,915)

   118,018,935 113,598,582

6. STOCK IN TRADE

   Raw material in hand 206,257,808 188,804,570

   Work-in-process 51,680,814 46,859,424

   Finished goods 68,532,782 68,688,192

   326,471,404 304,352,186

   
   
   

   ‌NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. TRADE DEBTS

   September 30, June 30,

   2025 2025

   (Un-audited) (Audited)

   Note Rupees Rupees

   Unsecured - considered good 834,762,482 892,963,580 Considered doubtful 219,385,911 219,385,911

   1,054,148,393 1,112,349,491

   Less: Allowance for expected credit loss 9.1 (219,385,911) (219,385,911)

   834,762,482 892,963,580

   1. Allowance for expected credit loss

      Opening balance 219,385,911 166,069,150 Allowance recognized during the period / year - 53,316,761 Closing balance 219,385,911 219,385,911

2. CASH AND BANK BALANCES

   Cash in hand 375,622 106,036

   17,690,994

   22,791,637

Cash with banks Current accounts

PLS saving accounts 10.1

17,895,612 40,482,631

Islamic current accounts 1,913,195 1,354,907 20,184,429 41,943,574

1. 1. These carry profit rates ranging from 12% to 18 % per annum (June 30, 2025: at 12% to 18 % per annum).

2. ASSETS CLASSIFIED AS HELD FOR SALE

   Investment property classified as held for sale 11.1 2,538,897,200 2,538,897,200

   1. The Board of Directors earlier, in their meeting decided to sale the investment property located at Nishatabad, Faisalabad. Accordingly, the stated assets were re-classified as assets held for sale. However, due to depressed economic conditions, the availability of prospective buyers offering desired prices remain restricted and factory assets cannot be sold during the year despite the efforts of the management of the Company. Therefore, the Board of Directors in their meeting, dated February 9, 2024, re-validate its decision to sale the property and approved the same by passing special resolution in their Extra Ordinary General Meeting dated March 09,2024.

3. LONG TERM FINANCING

   Secured

   Conventional mode 472,219,385 505,295,819 Less: Current portion shown under

   current liabilities (120,812,846) (144,599,655)

   351,406,539 360,696,164

4. LEASE LIABILITIES

   Lease liabilities 121,579,183 133,584,543

   Less: current portion (22,897,673) (28,205,691)

   98,681,510 105,378,852

   Maturity analysis-contractual discounted cash flow:

   Less than one year 22,897,673 28,205,691

   One to five years 98,681,510 105,378,850

   Total discounted lease liability 121,579,183 133,584,541

   1. When measuring the lease liabilities, the Company discounted the lease payments using financing rates ranging from 14.38 % to 16.43% (June 30, 2025: 14.74% to 24.72%) per annum.

5. DEFERRED CAPITAL GRANT

   Deferred government grant against	14.1 &	94,393,274		99,393,433
   Temporary Economic Refinance Facility	14.2
   Less: Current portion of government grant		(19,820,339)		(19,820,339)
   		74,572,935		79,573,094
   14.1	Following is the movement in capital grant during the period / year:
   	Opening balance		99,393,433		118,282,077
   	Amortised during the period		(5,000,159)		(18,888,644)
   	Closing balance		94,393,274		99,393,433

   14.2 This represents government grant recognized on long term financing facilities obtained under Temporary Economic Refinance (TERF) schemes of State Bank of Pakistan.

   
   
   

   ‌NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. TRADE AND OTHER PAYABLES

   September 30, June 30,

   2025 2025

   (Un-audited) (Audited)

   Note Rupees Rupees

   Creditors 15.1 423,208,574 414,196,103

   Accrued liabilities 15.2 641,483,707 604,092,463

   Contractual liability - 66,507,019

   Payable to Provident Fund 2,950,844 4,492,598

   Due to related party 15.3 101,725,388 100,844,889

   Withholding tax payable 16,580,649 16,112,873

   Workers' Welfare Fund 46,079,959 46,079,959

   Provision for default surcharge 1,137,423 1,137,423

   GIDC payable 229,778,482 229,778,482

   Minimum tax - levy 67,587,890 54,824,010 Other liabilities 16,899,805 19,190,250

   1,547,432,721 1,557,256,069

   1. This includes balance amounting to Rs. 38.240 million (June 30, 2025: Rs. 19.121 million) due to an associated company.

   2. This includes the amount payable in respect of Gas Infrastructure Development Cess (GIDC) levied under GIDC Act, 2015. In November 2020, the Supreme Court dismissed the review petition seeking review of its order issued in favor of recovery for GIDC arrears. Accordingly, the Company is paying GIDC installments as per monthly billing by Sui Northern Gas Pipeline Limited (SNGPL), however, the matter with respect to GIDC billing by Sui Southern Gas Company (SSGC) is under litigation in High Court of Sindh. The liability is recognized as per the guidelines issued by Institute of Chartered Accountants of Pakistan dated January 21, 2021.

   3. This includes due to Chief Executive Officer, Directors and other related party amounting to Rs.

      41.227 million (June 30, 2025: Rs.40.828 million) , Rs. 22.526 million ( June 30, 2025: Rs. 22.126 million), Rs. 37.971 million (June 30, 2025: Rs.37.891 million) and respectively. These balances do not carry any interest and are repayable on demand.

      September 30, June 30,

      2025 2025

      (Un-audited) (Audited)

      Rupees Rupees

2. SHORT TERM BORROWINGS

   Islamic mode

   National Bank of Pakistan 70,000,000 75,000,000 Conventional mode

   Muslim Commercial Bank	134,690,200	98,055,000
   JS Bank Limited	298,959,379	235,912,875

   503,649,579 408,967,875

3. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      The contingencies are same as disclosed in preceding annual financial statements for the year ended June 30, 2025.

   2. Commitments

      The commitments are same as disclosed in preceding annual financial statements for the year ended June 30, 2025.

      
      
      

      ‌NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

      FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. COST OF SALES

   Quarter ended

   September 30, September 30,

   2025 2024

   (Un-audited)

   ------------------- Rupees ----------------

1. LEVY

   Quarter ended

   September 30, September 30,

   2025 2024

   (Un-audited)

   Income tax levy under IFRIC 21/IAS 37 12,763,880 19,666,038

2. TAXATION

   Deferred (9,649,589) (4,142,582)

3. (LOSS) / EARNINGS PER SHARE - BASIC AND DILUTED

   Loss for the period (Rupees)	(77,904,870)	(96,518,163)
   Weighted average number of ordinary shares	12,417,876	12,417,876
   (Loss) / Earnings per share - basic and diluted (Rupees)	(6.27)	(7.77)

   13

   
   
   

   ‌NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. CASH GENERATED FROM OPERATIONS

   Loss before taxation (74,790,579) (80,994,707) Adjustment for non-cash charges and other items:

   Depreciation		33,498,528	36,235,583
   Amortization		545,362	545,362
   Gain on disposal of operating fixed assets		(2,322,835)	-
   Grant income		(5,000,159)	(4,402,804)
   Financial charges		37,150,505	64,681,586
   		63,871,401	97,059,727
   Profit before working capital changes		(10,919,177)	16,065,020
   Working capital changes	22.1	(10,957,265)	(4,521,953)
   		(21,876,442)	11,543,067

   1. Working capital changes

      (Increase) / decrease in current assets:

      Stores, spares and loose tools	(2,113,773)	9,160,281
      Stock in trade	(22,119,218)	14,991,098
      Trade debts	58,201,098	(223,999,097)
      Loans and advances	22,133,114	21,385,501
      Trade deposits and short term prepayments	5,814,752	(31,900,712)
      Other receivables	(1,877,243)	(3,709,587)
      Tax refunds due from the Government	(48,408,767)	4,549,308
      (Decrease) / increase in current liabilities	11,629,963	(209,523,208)
      Trade and other payables	(22,587,228)	205,001,255
      	(10,957,265)	(4,521,953)

2. TRANSACTIONS WITH RELATED PARTIES

   Related parties of the company comprise the companies with common directorship, retirement funds, directors 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. Detail of transactions with related parties during the period, other than disclosed elsewhere in the financial statements, are as follows:

   14

   
   
   

   ‌NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. 1. Transactions during the period Relation with the company Nature of transaction Name of the related party

      Quarter ended

      September 30, September 30, 2025 2024 (Un-audited) ------------------ Rupees --------------

      Associate companies	Insurance premium	Premier Insurance Limited	24,958,290	30,470,187
      Retirement benefit	Contribution to staff
      plans	retirement benefit plans	Provident Fund	4,835,558	4,863,024
      Director	Rent paid	Mr. Imran Maqbool	225,000	225,000
      	Rent paid	Mr. Humayun Maqbool	225,000	225,000
      Others	Rent paid	Mrs. Khawar Maqbool	645,000	645,000
      Chief executive	Remuneration and benefits	Mr. Imran Maqbool	3,377,185	3,371,251
      Director	Remuneration and benefits	Mr. Humayun Maqbool	3,631,547	3,541,251
      Key management personnel	Remuneration and benefits	Key management personne	l 9,188,378	8,743,176
      September 30,				June 30,
      			2025 (Un-audited) Rupees	2025 (Audited) Rupees
      23.2 Period / year end balances
      Payable to associated company - Premier Insurance Limited			38,239,642	19,121,185
      Payable to provident fund			2,950,844	4,492,598
      Due to Chief Executive, Directors and close relative			101,725,388	100,844,889

2. FINANCIAL RISK MANAGEMENT

   The Company's financial risk management objective and policies are consistent with that disclosed in the annual audited financial statements for the year ended June 30, 2025.

3. FAIR VALUE MEASUREMENT - FINANCIAL INSTRUMENTS

   Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date

   As of the reporting date, except for the long term investments, none of the Company's financial instruments are carried at its fair value.

   During the period, there have been no transfers between levels of fair value hierarchy used in measuring the fair value of financial instruments.

   The carrying values of all financial assets and liabilities reflected in the condensed interim financial information approximate their fair values.

   15

   
   
   

   ‌NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

   FOR THE PERIOD ENDED SEPTEMBER 30, 2025

1. CORRESPONDING FIGURES

   Corresponding figures have been rearranged and reclassified, wherever necessary for the purpose of comparison and better presentation.

2. DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements have been authorized for issue on October 31, 2025 by the Board of Directors of the Company.

IMRAN MAQBOOL

Chief Executive Officer

NAILA HUMAYUN MAQBOOL

Director

KAMRAN RASHEED

Chief Financial Officer

16

‌CRESCENT FIBRES LIMITED

104 Shadman 1, Lahore

Tel: +92 (42) 35960871 - 4 Lines

Fax: +92 (42) 35960004

Email: Io@crescentfibres.com