Transmission of 1st Quarterly Report fo the period ended 30 September 2025

ENGINEERING VALUE.

1st Quarterly

ENGINEERING VALUE. BUILDING TRUST.

At Crescent Steel, we do more than manufacture pipelines; we deliver solutions that create value and foster enduring trust. Our pipelines go beyond steel; they carry energy, fuel growth, and enable communities and industries to thrive.

Spanning landscapes and markets, every pipeline we build reflects our dedication to quality, innovation, and sustainability. Built to endure and crafted with care, we are steadfast in our commitment to engineering value and earning trust in all we do.

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CONTENTS

COMPANY INFORMATION

Company Profile 05

Company Information 07

DIRECTORS' REPORT

Directors' Report 13

Directors' Report (Urdu) 17

UNCONSOLIDATED FINANCIAL STATEMENTS

Condensed Interim Unconsolidated Statement of Financial Position 24

Condensed Interim Unconsolidated Statement of Profit or Loss and

other Comprehensive Income 25

Condensed Interim Unconsolidated Statement of Changes in Equity 26

Condensed Interim Unconsolidated Statement of Cash Flows 27

Notes to the Condensed Interim Unconsolidated Financial Statements 28

CONSOLIDATED FINANCIAL STATEMENTS

Condensed Interim Consolidated Statement of Financial Position 50

Condensed Interim Consolidated Statement of Profit or Loss and

other Comprehensive Income 51

Condensed Interim Consolidated Statement of Changes in Equity 52

Condensed Interim Consolidated Statement of Cash Flows 53

Notes to the Condensed Interim Consolidated Financial Statements 54

COMPANY PROFILE

Incorporated in 1983 as a steel line pipe manufacturer, Crescent Steel has grown into a diversified conglomerate, listed on the Pakistan Stock Exchange, with business units across four key sectors: engineering, textiles, capital markets, and power. Our operations are spread across four campuses in Sindh and Punjab, with headquarters in Karachi and a registered and liaison office in Lahore.

STEEL DIVISION - SPIRAL PIPE PRODUCTION LINE, PIPE COATINGS AND FABRICATION

The Steel Division operates three plants across two campuses, a Pipe Manufacturing and Coating Plant in Nooriabad, Sindh and, a Machinery Fabrication Plant (Shakarganj Engineering) in Dalowal, Punjab. The pipe plant operates two Spiral Pipe (SP) production lines, specializing in large-diameter spiral submerged arc welded steel line pipes. The Coating Plant applies flow-efficient and anticorrosion, external and internal pipe coatings on steel line pipes. The unit is also capable of applying weight coatings. Shakarganj Engineering fabricates machinery and equipment for the Sugar, Cement, Power and Engineering industries, including our own manufacturing units.

The Spiral Pipe (SP) Plant has the capability of manufacturing high-quality steel pipes in the diameter range of 8 inches -120 inches (219 mm -3,048 mm) with wall thickness up to 25 mm and material grades up to API 5L X-100. The unit's pipe production capacity is 200,000 MT per annum.

The notional annual capacity for production based on a single shift of eight hours is 66,700 MT of bare pipe per annum. Both SP lines are capable of operating for 24 hours at an annual plant capacity of 200,000 MT per annum. The notional pipe size is taken as a diameter size of 30 inches with 1⁄2 inch thickness for SP-1600 and a diameter of 40 inches with 5⁄8 inch thickness for SP-2003.

External coatings include Multi-Layer Polyolefin and Polypropylene Coating, Single layer Fusion

Bonded Epoxy Coating, Tape Coating, and Liquid Epoxy Coating while internal coatings include Anti-Corrosion Epoxy Coatings, Flow Efficiency Coating (FEC) and Cement Lining.

We carry the capability to coat steel line pipes ranging from 4 inches - 84 inches (114 mm - 2,134 mm), tape coatings on pipe diameters above 60 inches (1,524 mm) and internal epoxy coatings on diameters ranging from 8 inches - 60 inches (219 mm - 1,524 mm).

The annual notional capacity of the plant works out to 600,000 square meters based on 14-inch diameter pipes operating single Ten-hour shifts.

Our new Cement Mortar Lining (CML) setup is now up and running-marking a big step forward in how we maintain and protect our water pipelines. This system applies to an even layer of cement mortar inside pipes, helping to prevent corrosion, improve flow efficiency, and extend the life of our infrastructure. With automated application tools, high-capacity mixers, and controlled curing chambers, the setup is built for consistent performance and long-term reliability. It also supports our sustainability efforts by reducing the use of chemicals and lowering maintenance needs over time.

The fabrication unit has the capability to fabricate and erect reliable, quality machinery at par with international standards and designs, especially for the sugar and cement industry. The unit specializes in the manufacture and supply of cane shredders, juice heaters, evaporators, batch and continuous vacuum pans, centrifugal machines, stainless steel deep bed filters, spray clusters, multi-jet condensers, perforated plates, vibrio screens and high voltage transformer tanks.

5

The unit also has the capability to fabricate and erect machinery used in the secondary steel sector and it was leveraged for partial fabrication of a continuous caster machine structure, girders for overhead cranes and a vibratory scrap feeder for the billet manufacturing units of the steel industry.

COTTON DIVISION - COTTON YARN SPINNING UNIT

The Cotton Division comprises of one spinning unit with 19,680 spindles and is located in Jaranwala. The unit operating as "Crescent Cotton Products" (CCP), has a daily production capacity of 385 bags of high quality cotton/synthetic carded yarn, in counts ranging from 10s to 31s.

CCP is a division of the company but its operating results are shown separately. As a division, it is registered with the Ministry of Textile Industry Pakistan and All Pakistan Textile Mills Association (APTMA). It produces quality cotton/synthetic yarn with value addition of slub, siro and compact attachments.

CCP is equipped with modern high-tech European and Japanese machinery ensuring a high-quality yarn making process, producing various counts from 10s to 31s and has a notional capacity (based on 20s) of 6.36 million kilograms per annum.

The brand is known for its high quality and hence demands a premium.

INVESTMENT AND INFRASTRUCTURE DEVELOPMENT DIVISION

The division manages an investment portfolio in securities (shares, bonds and other securities), across diversified sectors and investment properties in order to meet specified investment goals at a given risk appetite, to maximize returns.

The portfolio is balanced in a way that spreads risk over a diversified spectrum and offers potential for growth as well as dividend yields, while real estate investments are held for rental as well as long term appreciation.

CS ENERGY DIVISION

The primary function of this unit is to provide electricity internally to Crescent Hadeed Division -Billet Manufacturing Unit and generate, accumulate, distribute, sell and supply electricity to distribution companies, as permitted.

Initially equipped with a 15MW co-generation, thermal generation power plant at Bhone, Punjab, the unit commenced commercial operations in December 2014. The unit also employs a 16.5MW condensing and extraction turbine to process steam during off-season periods to ensure uninterrupted supply to Crescent Hadeed Division throughout the year. The generation plant uses bagasse in the combustion process to produce power and process steam.

SUBSIDIARY COMPANIES

CS CAPITAL (PRIVATE) LIMITED

CS Capital (Private) Limited is a fully owned subsidiary of Crescent Steel. The principal activity of the subsidiary is to manage and organically grow investment portfolios in stocks, commodities, and other securities, both strategic and short term.

SOLUTION DE ENERGY (PRIVATE) LIMITED

Solution de Energy which was previously operating as a fully owned subsidiary of CS Energy (Private) Limited, now operates as a fully owned subsidiary of Crescent Steel, post amalgamation of CS Energy (Private) Limited and Crescent Steel.

The company was incorporated in October 2013, its principal activity being to build, own, operate and maintain a 100 MW solar power project.

6

COMPANY

INFORMATION

Board of Directors

Ahmad Waqar

Chairman, Non-Executive Director

Ahsan M. Saleem

Chief Executive Officer

Ahmad Shafi

Non-Executive Director

Muhammad Kamran Saleem

Non-Executive Director (Independent)

Nadeem Maqbool

Non-Executive Director (Independent)

Nausheen Ahmad

Non-Executive Director (Independent)

Nihal Cassim

Non-Executive Director (Independent)

S.M. Ehtishamullah

Non-Executive Director

Company Secretary

Azeem Sarwar

Audit Committee

Nihal Cassim

Chairman, Non-Executive Director (Independent)

Ahmad Shafi

Member, Non-Executive Director

Nadeem Maqbool

Member, Non-Executive Director (Independent)

S.M. Ehtishamullah

Member, Non-Executive Director

Human Resource and Remuneration Committee

Nadeem Maqbool

Chairman, Non-Executive Director (Independent)

Ahmad Shafi

Member, Non-Executive Director

Ahmad Waqar

Member, Non-Executive Director

Nausheen Ahmad

Member, Non-Executive Director (Independent)

Governance and Nomination Committee

Ahmad Waqar

Chairman, Non-Executive Director

Ahsan M. Saleem

Member, Chief Executive Officer

Muhammad Kamran Saleem

Member, Non-Executive Director (Independent)

Nausheen Ahmad

Member, Non-Executive Director (Independent)

Risk Management Committee

S.M. Ehtishamullah

Chairman, Non-Executive Director

Muhammad Kamran Saleem

Member, Non-Executive Director (Independent)

Nihal Cassim

Member, Non-Executive Director (Independent)

Disclaimer: Other than the position of Chairman and CEO, listings are in alphabetical order

07

Management Team

Ahsan M. Saleem - 1983*

Chief Executive Officer

Muhammad Saad Thaniana - 2007*

Chief Financial Officer and CEO Solution De Energy (Private) Limited

Hajerah A. Saleem - 2012*

Business Unit Head - Investments and Infrastructure Development Division and Head of Corporate Affairs and CEO CS Capital (Private) Limited

Abdullah A. Saleem - 2017*

Business Unit Head - Steel Division and Head of Commercial Operations

Abdul Rouf - 2000*

Business Unit Head - Cotton Division

Mushtaque Ahmed - 1985*

Head of Manufacturing - Steel Division

Owais Ahmed - 2024*

Chief Information Officer

Head of Internal Audit

Muhammad Shakeeb Ullah Khan - 2021*

Auditors

External Auditors

A.F. Ferguson & Co Chartered Accountants

Internal Auditors

BDO Ebrahim & Co Chartered Accountants

Legal Advisor

Hassan and Hassan, Advocates, Lahore

A.K. Brohi & Co., Advocates, Karachi

Bankers

Conventional

Allied Bank Limited Al-Falah Bank Limited Habib Bank Limited

Habib Metropolitan Bank Limited JS Bank Limited

MCB Bank Limited National Bank of Pakistan United Bank Limited

* Year of Joining

20 ENGINEERING VALUE.

26 BUILDING TRUST. 08

Shariah Compliant

Al-Baraka Bank Pakistan Limited BankIslami Pakistan Limited Dubai Islamic Bank Pakistan Faysal Bank Limited

Subsidiaries**

CS Capital (Private) Limited Solution de Energy (Private) Limited

Registered Office

E-Floor, IT Tower, 73-E/1, Hali Road, Gulberg-III, Lahore.

Tel: +92 42 3578 3801-03

Fax: +92 42 3578 3811

Liaison Office Lahore

E-Floor, IT Tower, 73-E/1, Hali Road, Gulberg-III, Lahore.

Tel: +92 42 3578 3801-03

Fax: +92 42 3578 3811

Email: asif.randhawa@crescent.com.pk

Principal Office

9th Floor, Sidco Avenue Centre, 264 R.A. Lines, Karachi-74200.

Tel: +92 21 3567 4881-85

Fax: +92 21 3568 0476

Email: info@crescent.com.pk

Production Sites

Steel Division

Pipe and Coating Plants

A/25, S.I.T.E., Nooriabad, District Jamshoro, Sindh-73090.

Tel: +92 25 4670 020-22, +92 25 4670 055

Email: abdullah.saleem@crescent.com.pk

Engineering Unit

(Shakarganj Engineering)

17 Kilometer Summundri Road, Dalowal, District Faisalabad, Punjab.

Tel: +92 41 2569 825-26

Fax: +92 41 2679 825

**Registered Office and Principal office are same as Holding Company

09

Cotton Division

Crescent Cotton Products

1st Mile, Lahore Road, Jaranwala, District Faisalabad.

Tel: +92 41 4318 061-65

Fax: +92 41 4318 066

Email: abdul.rouf@crescent.com.pk

CS Energy Division Power Generation Unit

57 Kilometer, Jhang Sargodha Road, Bhone, District Jhang.

Tel: +92 48 6889 210 - 12

Public Information

Financial analysts, stock brokers, interested investors and financial media desiring information regarding the Company can contact.

Mr. Azeem Sarwar

Company Secretary

9th Floor, Sidco Avenue Centre, 264

R.A. Lines, Karachi-74200. Tel: +92 21 3567 4881-85

Email: company.secretary@crescent.com.pk

Share Registrar

Enquiries concerning lost share certificates, dividend payments, change of address, verification of transfer deeds and share transfers should be directed to Company's Share Registrar.

M/s CorpTec Associates (Private) Limited, 503-E Johar Town, Lahore.

Tel: +92 42 3517 0336-37

Fax: +92 42 3517 0338

Email: info@corptec.com.pk

Corporate Website

To visit our website, go to https://www.crescent.com.pk

For 1st Quarterly Report 2026 go to:

https://www.crescent.com.pk/uploads/media/quarterly-report-september-2025.pdf

20 ENGINEERING VALUE.

26 BUILDING TRUST. 10

ENGINEERING VALUE. BUILDING TRUST.

DIRECTORS' REPORT

The Directors of the Company are pleased to submit their report, together with Unaudited condensed interim unconsolidated and consolidated financial statements of the Company and the Group for the quarter ended September 30, 2026.

ECONOMIC OUTLOOK

Pakistan's economy demonstrated measured stability during Q1FY26, supported by moderating inflation and continued IMF engagement, though structural headwinds remain. The current account deficit widened modestly to USD 594 million (+18% YoY), due to higher import demand amid recovering economic activity. Inflation averaged 4.2% during the quarter, down sharply from 9.2% for Q1FY25. The State Bank of Pakistan (SBP) maintained its policy rate at 11%, prioritizing external stability and inflation control.

Pakistan's external positioning strengthened on the back of renewed bilateral and multilateral support. Expanded economic and strategic cooperation with the United States, Saudi Arabia and other key partners signaled improving global engagement and financing access. These developments alongside sovereign rating upgrades helped reinforce sentiment and near term market outlook.

Economic growth is projected at 3-3.5%, supported by stable remittance flows, moderate price pressures, and an improving investment sentiment.

The Pakistani Rupee remained stable, averaging

282.65 per USD during the period and trading within a narrow band of Rs. 281.31-284.97.

On the fiscal front, the government missed its Q1FY26 target and a key IMF performance criterion by Rs. 198 billion, collecting Rs. 2.885 trillion. Collections also lagged the IMF benchmark by Rs.

138 billion, reaffirming that incremental adjustments to tax rates are insufficient to close structural revenue gaps.

Real sector activity showed early signs of recovery. The Quantum Index of Large-Scale Manufacturing Industries (LSMI) expanded 4.44% during July-August FY26 driven by automobiles and transport equipment. Flood related damages are likely to have a lagging impact on agri and food segments in the coming quarter.

A key forward challenge lies in the rising external repayment obligations. Scheduled repayments to the IMF and other creditors will increase sharply from FY26, peaking around FY28 before gradually easing.

FINANCIAL AND OPERATIONAL PERFORMANCE

Overall Unconsolidated Financial Performance

During the quarter ended September 30, 2026 (Q1FY26) the Company's after-tax profit amounted to Rs. 431.0 million as compared to profit after tax of Rs. 73.6 million in Q1FY25. Earnings per share (EPS) for Q1FY26 was Rs. 5.55 per share as compared to EPS of Re. 0.95 in Q1FY25.

Company's sales revenue stood at Rs. 1,280.8 million (Q1FY25: Rs. 1,145.8 million). Cost of goods sold stood at Rs. 873.0 million (Q1FY25: Rs. 905.3) generating a gross profit (GP) of Rs. 407.8 million (Q1FY25 GP of Rs. 240.5 million) which was 31.8 percent of sales as compared to a margin of 21.0 percent in Q1FY25.

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The Company's PBT for Q1FY26 from continuing operations was Rs. 574.6 million as compared to PBT of Rs. 103.7 million in Q1FY25. Income tax charge from continuing operations during Q1FY26 amounted to Rs. 167.9 million (current tax and deferred tax charge of Rs. 35.1 million and Rs. 132.8 million respectively). EPS from continuing operations was Rs. 5.24 (Q1FY25: Rs. 1.19).

Cotton Division was not operational during the quarter and consequently reported LBT of Rs. 17.2 million.

The CS Energy Division was not operational during Q1FY26 and reported LBT of Rs. 16.6 million primarily on account of fixed costs incurred during the period including non-cash (depreciation and amortization expense) of Rs. 14.9 million.

During the quarter, profit from discontinued operations was Rs. 65.0 million (Q1FY25: LBT of Rs. 19.0 million). The PBT mainly represents the gain on disposal of held for sale assets amounting to Rs. 69.6 million. Income tax charge from discontinued operations during Q1FY26 amounted to Rs. 40.8 million. EPS from discontinued operation was Re. 0.31 as compared to LPS of Re.

0.24 for same period last year (SPLY).

Summary of operating results as per unconsolidated condensed interim financial statements of the company

• Sales revenue increased by 11.8 percent to Rs. 1,280.8 million as compared to Rs. 1,145.8 million in Q1FY25.

• Income from Investments amounted to Rs.

  378.0 million as compared to Rs. 14.8 million in Q1FY25.

• Gross profit of Rs. 407.8 million as compared to a GP of Rs. 240.5 million in Q1FY25.

• Profit before interest and tax from continuing operation (PBIT) for Q1FY26 was Rs. 639.6 million as compared to PBIT Rs. 166.3 million in Q1FY25.

• Profit before interest, tax, depreciation, and amortization (EBITDA) was Rs. 777.7 million as compared to EBITDA of Rs. 219.0 million in Q1FY25.

• EPS for Q1FY26 was Rs. 5.55, as compared to EPS of Re. 0.95 for Q1FY25.

• Return on average capital employed (annualized) was 15.4 percent for Q1FY26 as compared to 3.3 percent in corresponding period last year.

BUSINESS SEGMENTS

Steel Segment

Steel Division revenue for Q1FY26 stood at Rs. 1,270.3 million (Q1FY25: Rs. 1,145.8 million). Gross profit for Q1FY26 was recorded at Rs. 439.4 million

i.e. 34.6% of revenue (Q1FY25: gross profit of Rs. 272.3 million i.e. 23.8%). PBT) for Q1FY26 stood at Rs. 240.0 million (Q1FY25: PBT of Rs. 128.9 million).

Major orders executed during the period include 5.3 km of 40-inch diameter coated steel line pipe with internal cement lining, 18 km of 12-inch diameter coated steel line pipes and 89 km of coating only on 6-inch and 8-inch.

IID Segment

Market Review

The KSE-100 Index extended its record setting rally into FY26, gaining 31.7% in Q1FY26 (Q1FY25: 3.4%) following a 60.15% gain in FY25. Over the last two years the index has delivered a 4X return and 104.0% on a trailing twelve months basis - one of the strongest performances among emerging markets.

The all-share market capitalization expanded by 26.41% (Rs. 4.02 trillion) during Q1FY26 to Rs.

19.26 trillion (USD 68.47 billion, up 27.51%) reflecting strong price momentum and renewed investor activity. KSE-100 market capitalization was up Rs. 1.14 trillion (+30.36%) to Rs. 4.89 trillion (USD 17.40 billion, +31.50%).

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Average daily traded volumes on the All-Share index were up 94.22% to 951.96 million shares per day (SPLY: 490.13 million shares/day) while average daily value traded was up 144.70% to Rs.

44.15 billion per day (SPLY: 18.04 billion /day). When compared to historical data: average daily volumes in FY23 and FY24 stood at 218.43 million and 280.77 million shares/day, respectively, while corresponding traded values were Rs. 6.95 billion and Rs. 9.62 billion - less than one fourth of current levels.

The KSE-100 is currently trading at a forward P/E of 9.24 - compared to regional market averages of

13.82. Similarly, in terms of the price-to-book (P/B) ratio, the benchmark bourse is at 1.59 as against a regional P/B average of 2.16.

Segment Performance

The portfolio's accumulated PBT for the period ended September 30, 2025 stood at Rs. 368.4 million (SPLY: Rs. 9.0 million). The PBT includes unrealized gains of Rs. 334.3 million and realized gains of Rs. 28.9 million, respectively. Dividend income for the period stood at Rs. 13.8 million.

During the period, the division's HFT investments recorded a positive ROI of 28.8% on weighted average investments of Rs. 1,288.5 million whereas the benchmark KSE-100 index increased by 31.7%. Investments in marketable securities, excluding unquoted investments, as on September 30, 2025 stood at Rs. 3,412.67 million (Q1FY25: Rs 2,443.7 million).

UNCONSOLIDATED BALANCE SHEET

Balance sheet footing stood at Rs. 15,325.5 million as of September 30, 2025, compared to Rs 15,919.8 million on June 30, 2025. Break-up value per share increased to Rs. 118.3 from Rs. 112.8 as at June 30, 2025.

The current ratio increased to 1.82, as compared to

1.63 as at June 30, 2025. Gearing ratio (including short-term borrowings) decreased to 16.6 percent as compared to 22.0 percent as at June 30, 2025. Interest cover for Q1FY26 was 10.8 times (Q1FY25: 2.4 times).

Overall Consolidated Financial Performance

On a consolidated basis, operating profit from continuing operations before interest and tax amounted to Rs. 868.6 million (Q1FY26: Profit of Rs. 167.5 million) mainly from income from investments of Rs. 609.7 million. Consolidated profit after tax for the Group for Q1FY26 was Rs.

563.1 million as compared to profit after tax of Rs.

331.9 million in Q1FY25.

CONSOLIDATED BALANCE SHEET

On a Group basis, the consolidated balance sheet footing stood at Rs. 15,311.3 million, compared to Rs. 15,651.0 million as at June 30, 2025. Total shareholders' funds increased to Rs. 8,972.0 million from Rs. 8,40.3 million as at June 30, 2025.

FUTURE OUTLOOK

The domestic operating environment has improved with increased political and economic stability and a greater ease of doing business; however, we expect that development expenditure in the current fiscal shall remain subdued, and this will directly impact our prospects in the oil and gas transmission pipeline sector. In contrast the water sector remains active and our participation in the K-IV Project has created space for us in this sector, especially given that larger projects are emulating the specifications adopted for the K-IV Project. In the coming years we expect that the water sector will pivot to API standards steel pipes with external and internal linings.

Recently, global commodity markets have been volatile, and the ongoing conflict in the Middle East, coupled with stimulus measures announced by the Government of China is expected to add to the volatility. The engineering sector is especially vulnerable to such challenges as critical raw materials, consumables and spares are all imported, and the sector is deeply linked with infrastructure developments which require fiscal space.

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By Q2FY25, we shall complete manufacturing our in-process orders in hand against Water Pipeline Project for the supply of 32 km 40 inches of coated and cement lined pipes. We shall also execute against our order from the oil and gas sector.

There is continuing line pipe demand in the oil, gas and water segments; bidding and awards against these projects are expected in due course and, if we are successful in our bids, these may be executed throughout the end of FY26.

I would like to thank all stakeholders for their patronage and look for their continued support.

For and behalf of the Board of Directors.

Ahsan M. Saleem Nadeem Maqbool

Chief Executive Officer Director

October 28, 2025

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ENGINEERING VALUE. BUILDING TRUST.

Crescent Steel and Allied Products Limited

Statements

Unconsolidated Financial

for the first quarter ended September 30, 2025

The annexed notes from 1 to 28 form an integral part of these condensed interim unconsolidated financial statements.

Chief Executive Director Chief Financial Officer

24

Crescent Steel and Allied Products Limited

Condensed Interim Unconsolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

For the first quarter ended September 30, 2025

Note First quarter ended

September 30,

2025

September 30,

2024

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

profit or loss

Changes in the fair value of equity investments at fair

value through other comprehensive income (FVOCI) (23) (673)

Total comprehensive income for the period 430,928 72,880

-------------------- (Rupees) --------------------

Director

_

The annexed notes from 1 to 28 form an integral part of these condensed interim unconsolidated financial statements.

______________________

Chief Executive

_ 25

_________________

Chief Financial Officer

Crescent Steel and Allied Products Limited

Condensed Interim Unconsolidated Statement of Changes in Equity (Unaudited)

For the first quarter ended September 30, 2025

Issued, subscribed

Capital reserves Revenue reserves Total revenue

reserves

Total

and paid-up capital

Share premium Fair value reserve

General

reserve

Unappropriated

profit

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

The annexed notes from 1 to 28 form an integral part of these condensed interim unconsolidated financial statements.

Chief Executive Director Chief Financial Officer

26

Crescent Steel and Allied Products Limited

Condensed Interim Unconsolidated Statement of Cash Flows (Unaudited)

For the first quarter ended September 30, 2025

Note First quarter ended

September 30,

2024

______________

__________________

27

Crescent Steel and Allied Products Limited

Notes to the Unconsolidated Financial Statements (Unaudited)

For the first quarter ended September 30, 2025

1. THE COMPANY AND ITS OPERATIONS

   Crescent Steel and Allied Products Limited ("the Company") was incorporated on August 1, 1983 as a public limited company in Pakistan under the Companies Act, 1913 (now the Companies Act, 2017) and is quoted on the Pakistan Stock Exchange. The registered office of the Company is located at E-floor, IT Tower, 73-E/1, Hali Road, Gulberg-III, Lahore. Whereas its principal office is situated at 9th floor, Sidco Avenue Centre, 264 R.A. Lines, Karachi.

   The Company operates four operating segments namely Steel, Cotton, Investment and Infrastructure Development (IID) and Energy as disclosed in note 24 to these condensed interim unconsolidated financial statements.

2. BASIS OF PREPARATION

   1. These condensed interim unconsolidated financial statements of the Company 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 Standards Board (IASB) as notified under the Companies Act, 2017; and

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

      Where the provisions of and 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.

   2. These condensed interim unconsolidated financial statements of the Company do not include all of the information required for annual unconsolidated financial statements and should be read in conjunction with the audited annual unconsolidated financial statements of the Company for the year ended June 30, 2024. 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 audited annual unconsolidated financial statements.

   3. These condensed interim unconsolidated financial statements are presented in Pakistani Rupees which is also the Company's functional currency and all financial information presented has been rounded off to the nearest thousand, except otherwise stated.

3. ACCOUNTING POLICIES

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

      28

   2. NEW STANDARDS AND AMENDMENTS TO ACCOUNTING AND REPORTING STANDARDS
      1. Amendments to published accounting and reporting standards which became effective during the period:

         There were certain amendments that became applicable for the Company during the period, are not considererd to be relevant or did not have any significant effect on the Company's operations and financial reporting and have, therefore, not been disclosed in these condensed interim unconsolidated financial statements.

      2. Standards and amendments to published accounting and reporting standards that are not yet effective and have not been early adopted by the Company: Standards and amendments Effective date (Accounting period beginning on or after)

         • IFRS 9 'Financial Instruments' (Amendments) January 1, 2026

         • IFRS 7 'Financial Instruments: Disclosures' (Amendments) January 1, 2026

         • IAS 21 'The Effects of Changes in Foreign Exchange Rates' (Amendments) January 1, 2025

           Following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of applicability in Pakistan

           Standards

         • IFRS 1 'First-time Adoption of International Financial Reporting Standards'

         • IFRS 18 'Presentation and Disclosure in Financial Statements'

         • IFRS 19 'Subsidiaries without Public Accountability: Disclosures'

           The management is in the process of assessing the impact of these standards and amendments on these unconsolidated financial statements.

4. USE OF ESTIMATES AND JUDGEMENTS

   1. The preparation of condensed interim unconsolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reporting amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

   2. Estimates and judgements made by the management in the preparation of these condensed interim unconsolidated financial statements are the same as those that were applied to the annual unconsolidated financial statements of the Company for the year ended June 30, 2025.

5. PROPERTY, PLANT AND EQUIPMENT Unaudited Audited

   Note

   September 30, 2025

   June 30,

   2025

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

   Operating fixed assets	5.1	1,866,913		1,929,642
   Capital work-in-progress	5.2	81,273		69,429
   		1,948,186		1,999,071
   				29

   1. Following are the cost of operating fixed assets added / transferred and disposed off during the three months period ended:

      Unaudited Unaudited

      First quarter ended First quarter ended

      September 30, 2025 September 30, 2024

      Additions / Transfers

      Disposals / Transfers

      Additions / Transfers

      Disposals

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

      Plant and machinery Electrical / office equipments and	605		-		-		-
      installation	157		-		160		310
      Computers	1,354		422		759		-
      Motor vehicles	-		9,151		6,116		-
      	2,116		9,573		7,035		310

   2. Net additions to capital work-in-progress during the three months period ended September 30, 2025 amounted to Rs. 11.63 million (September 30, 2024: Rs. 13.70 million).

6. LONG TERM INVESTMENTS Unaudited Audited

   Note

   September 30,

   2025

   June 30,

   2025

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

   	Subsidiary companies - at cost	6.1	905,001		905,001
   	Associated companies - at cost	6.2	691,108		691,106
   	Other long term investments	6.3	643,411		643,434
   			2,239,520		2,239,541
   6.1	Subsidiary companies - at cost
   	Unaudited Audited September 30, June 30,		Unaudited September 30,		Audited 30 June
   	2025 2025		2025		2025

   (Number of shares) Unquoted

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

   70,500,000 70,500,000 CS Capital (Private) Limited 6.1.1 705,000 705,000

   (Chief Executive Officer -Ms. Hajerah Ahsan Saleem)

   2 2 Crescent Continental Gas Pipelines

   Limited (US $ 1 each) 6.1.2 - -

   20,000,100 20,000,100 Solution de Energy (Private) Limited 6.1.3 200,001 200,001 (Chief Executive Officer -

   Mr. Muhammad Saad Thaniana)

   905,001 905,001

   30

   1. This represents the Company's investment in 100% ordinary shares of CS Capital (Private) Limited. The Company acquired CS Capital (Private) Limited on September 26, 2011.

   2. This represents investment in subsidiary of Rs. 90 only. The subsidiary company has not commenced operation and accordingly no financial statements have been prepared.

   3. This represents the Company's investment in 100% ordinary shares of Solution de Energy (Private) Limited that was acquired through amalgamation on June 30, 2019.

   1. Associated companies - at cost

      Unaudited Audited Unaudited Audited

      September 30,

      2025

      June 30,

      2025

      Note

      September 30,

      2025

      June 30,

      2025

      (Number of shares) -------- (Rupees in '000) --------

      Quoted

      27,409,075 27,409,075 Shakarganj Limited 6.2.1 691,108 691,106

      (Chief Executive Officer -

      Mr. Muhammad Saif Ullah)

      691,108 691,106

      1. The Company holds 21.93% (June 30, 2025: 21.93%) shareholding in Shakarganj Limited and there is no common directorship in the investee company. However, the Company directly and / or indirectly has significant influence as per requirement of IAS 28 'Investments in Associates', therefore it has been treated as an associate as per IAS 28.

      2. The fair value of investments in associated companies as at September 30, 2025 is Rs. 1,832.02 million (June 30, 2025: Rs. 1,872.86 million).

   2. Other long term investments Unaudited Audited

      Note

      September 30,

      2025

      June 30,

      2025

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

      Fair value through other comprehensive income (FVOCI)	6.3.1	13,526		13,549
      Fair value through profit or loss (FVTPL)	6.3.2 & 6.3.3	629,885		629,885
      		643,411		643,434

      1. This represents investment in the Crescent Textile Mills Limited which are not held for trading and the Company has irrevocably designated at initial application of IFRS 9 to recognise in this category. This is strategic investment and management considers this classification to be more relevant. The accumulated fair value reserve related to this investment will never be reclassified to profit or loss.

         31

      2. This includes investments in Crescent Industrial Chemicals Limited and Crescent Bahuman Limited amounting to Rs. 10.470 million and Rs. 24.037 million (June 30, 2025: Rs. 10.470 million and Rs. 24.037 million), respectively, which had been fully charged to profit or loss in earlier periods.

      3. This also includes investment in Shakarganj Food Products Limited and Central Depository Company of Pakistan Limited amounting to Rs. 313.48 million and Rs. 316.40 million (June 30, 2025: Rs. 313.48 million and Rs. 316.40 million), respectively.

7. STOCK-IN-TRADE Unaudited Audited

   September 30,

   2025

   June 30,

   2025

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

   Raw materials

   Hot rolled steel coils (HR Coils)	1,062,126		1,713,626
   Coating materials	256,773		311,976
   Steel scrap	2,327		2,327
   Others	332,004		353,078
   Raw cotton	89,084		100,206
   Stock-in-transit	-		25,913
   	1,722,792		2,507,126
   Work-in-process	130,909		57,023
   Finished goods - net	741,744		398,907
   Scrap / cotton waste	38,966		20,745
   	911,619		476,675
   	2,634,411		2,983,801

   1. Stock in trade as at September 30, 2025 includes certain items valued at net realisable value (NRV). Charge for the period in respect of stock written down to NRV was amounting to Rs. Nil (June 30, 2025: charge of Rs. 11.293 million) has been recognized in cost of sales.

8. TRADE DEBTS Unaudited Audited

   Note

   September 30,

   2025

   30 June

   2025

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

   Secured

   Considered good 315,572 196,540

   Unsecured

   1,444,492

   27,529

Considered good 8.1

Considered doubtful

1,502,080 1,472,021

Impairment loss on trade debts (27,529) (27,529)

1,790,123 1,641,032

1. 1. This includes balances due from following related parties:

      Pak Elecktron Limited 34,983 45,546

2. LOANS AND ADVANCES

Loan to related parties - considered good

Loan to subsidiaries 9.1 3,272 2,672

Advances - considered good

Staff 532 123

Suppliers for goods and services 116,443 44,654

Contract cost - 261,890

Advances to others 3,164 1,559

Advances - considered doubtful

Suppliers for goods and services Provision for doubtful advances

123,411 310,898

32