Transmission of Quarterly Report for the Period Ended December 31,2025

‌

‌DEWAN SUGAR MILLS LIMITED CONTENTS

Company Information 4

Directors' Report 5

Condensed Interim Statement of Financial Position 6

Condensed Interim Statement of Profit or Loss 7

Condensed Interim Statement of Comprehensive Income 8

Condensed Interim Statement of Cash Flow 9

Condensed Interim Statement of Changes in Equity 10

Condensed Interim Statement of Segment Wise Operating Results 11

Condensed Notes to the Financial Statements 12

16

‌A YOUSUF DEWAN COMPANY

COMPANY INFORMATION

EXECUTIVE DIRECTORS

Ishtiaq Ahmad - Chief Executive Officer Ghazanfar Baber Siddiqi

NON-EXECUTIVE DIRECTORS

Abdul Basit - Chairman Board of Directors Syed Maqbool Ali

Nida Jamil

Mehmood-ul-Hassan Asghar

INDEPENDENT DIRECTOR

Aziz-ul-Haque

COMPANY SECRETARY

Muhammad Hanif German

CHIEF FINANCIAL OFFICER

Muhammad Ilyas Abdul Sattar

AUDITORS

Feroze Sharif Tariq & Co. - Chartered Accountants

COST AUDITORS

UHY Hassan Naeem & Co.

LEGAL ADVISOR

A.K. Brohi & Company Advocates

AUDIT COMMITTEE

Aziz-ul-Haque Chairman

Syed Maqbool Ali Member

Abdul Basit Member

HUMAN RESOURCE & REMUNERATION COMMITTEE

Aziz-ul-Haque

Ghazanfar Baber Siddiqi Abdul Basit

Chairman

Member

Member

BANKERS

National Bank of Pakistan MCB Bank Limited

Summit Bank Limited Meezan Bank Limited

Habib Bank Limited The Bank of Punjab

Standard Chartered Bank Pakistan Limited Dubai Islamic Bank Pakistan Limited The Bank of Khyber Limited Bank Islami Pakistan Limited

REGISTERED OFFICE: CORPORATE OFFICE

Dewan Centre, 3-A Lalazar, Beach Hotel Block-A, 2nd Floor Road, Karachi-74000, Pakistan. Finance & Trade Centre

Shahrah-e-Faisal, Karachi, Pakistan.

SHARE REGISTRAR / TRANSFER AGENT

BMF Consultants Pakistan (Pvt.) Limited Annum Estate Building, Room No. 310 & 311, 3rd Floor, 49, Darul Aman Society.

Main Shahrah-e-Faisal, Adjacent Baloch Colony, Karachi, Pakistan.

FACTORY

Jillaniabad, Budho Talpur, Taluka: Mirpur Bathoro

District: Sujawal Sindh, Pakistan.

WEBSITE

www.yousufdewan.com

04 QUARTERLY REPORT

‌DEWAN SUGAR MILLS LIMITED DIRECTORS' REPORT IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL.

IF YE ARE GRATEFUL, I WILL GIVE YOU MORE (HOLY QURAN)

The Board of directors of Dewan Sugar Mills Limited is pleased to present unaudited condensed interim financial statements for the first quarter ended December 31, 2025

FINANCIAL RESULTS

During the period under consideration, your Company has after-tax loss to Rs.189.840 million, compared to loss of Rs.333.082 million in the corresponding period last year.

PERFORMANCE REVIEW

Sugar Segment

Sugar unit maintenance work has been completed and by the Grace of Allah started its crushing season from January 01, 2026. We are very much optimistic for prospects of Sugar industry because of increased cultivation area and better expected sucrose recovery.Cane Cultivation is more in the province of Punjab as compared to the last year, however in the province of Sindh the area of cultivation is more or less same as that of the last year.

Distillery Segment

The Distillery plant unit has not started its operation due to nonavailability of raw material because of late start of sugar cane crushing. During the current quarter, the unit suffered operating loss of Rs.28.348 million as compared to loss of Rs.195.633 million of last period. The management is optimistic to commence the operations of the unit in near future.

Chip Board

The Chip Board plant produced 4,630 sheets during the period under review as compared to production of 6,560 sheets during the corresponding period of last year.

In conclusion, we bow, beg and pray to Almighty Allah, Rahman-o-Ar-Rahim, in the name of our beloved Prophet Muhammad (peace be upon him) for the continued showering of his blessings, guidance, strength, health, and prosperity to us, our company, Country and nation; and also pray to Almighty Allah to bestow peace, harmony, brotherhood, and unity in true Islamic spirit to whole of the Muslim Ummah; Ameen; Summa Ameen.

LO-MY LORD IS INDEED HEARER OF PRAYER (AL-QURAN)

Under Authority of the Board of Directors

Abdul Basit

Chairman Board of Director

Ishtiaq Ahmad

CEO & Director

Date: January 29, 2026

Place: Karachi

QUARTERLY REPORT 05

(Rupees in '000')

Notes

Sep-25

Dec-25

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

FOR THE QUARTER ENDED DECEMBER 31, 2025

A YOUSUF DEWAN COMPANY

ASSETS

NON-CURRENT ASSETS

Property, Plant and Equipment

5

CURRENT ASSETS

Stores, Spares and Loose Tools Stock-in-Trade

Trade Debts - Unsecured, Considered Good Loans and Advances and Other Receivable -Unsecured, Considered Good

Trade Deposits, Short-Term Prepayments

and Current Balances with Statutory Authorities Income Tax Refunds and Advances

Cash and Bank Balances

TOTAL ASSETS EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized Capital

130,000,000 (2025: 130,000,000) Ordinary

Shares of Rs. 10/- each

Issued, Subscribed and Paid-up Capital Reserves and Surplus

Surplus on Revaluation of Property, Plant & Equipment(Net)

NON-CURRENT LIABILITIES

Sponsors Loan - Unsecured 6

Long Term Finance (Secured) 7

Long Term Interest Payable 8

Deferred Liabilities 9

CURRENT LIABILITIES

Trade and Other Payables - Unsecured Interest, Profit, Mark-up Accrued on Loans and Other Payables

Short Term Finances - Secured Unclaimed Dividend

Current Portion of Non-Current Liabilities Provision for Taxation

10

7&8

CONTINGENCIES & COMMITMENTS

11

The annexed notes form an integral part of these financial statements

Ishtiaq Ahmad

CEO & Director

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Director

06 QUARTERLY REPORT

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE QUARTER ENDED DECEMBER 31, 2025

31-Dec-25 31-Dec-24

(Rupees in '000')

Sales - net Cost of Sales Gross (Loss)

Administrative and General Expenses Distribution and Selling Costs

Other Operating Income/(Loss)

(Loss) from Operations

Finance Cost

(Loss) before Tax & Levies

Levies

Taxation

(Loss) after-tax

Loss per Share - Basic

The annexed notes form an integral part of these financial statements

DEWAN SUGAR MILLS LIMITED

Ishtiaq Ahmad

CEO & Director

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Director

QUARTERLY REPORT 07

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE QUARTER ENDED DECEMBER 31, 2025

31-Dec-25 31-Dec-24

(Rupees in '000')

A YOUSUF DEWAN COMPANY

Ishtiaq Ahmad

CEO & Director

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Director

08 QUARTERLY REPORT

CONDENSED INTERIM STATEMENT OF CASH FLOW (UN-AUDITED)

FOR THE QUARTER ENDED DECEMBER 31, 2025

31-Dec-25 31-Dec-24

DEWAN SUGAR MILLS LIMITED

Cash Flow from Operating Activities

(Loss) Before Taxation

Adjustment for Non-Cash and Other Items: Depreciation

Financial Charges

(Rupees in '000')

Changes in Operating Assets and Liabilities

(Increase) / Decrease in Current Assets

Stores and Spares Stock in Trade Trade Debts

Loans and Advances

Increase / (Decrease) in Current Liabilities

Trade and Other Payables Short Term Finances

Taxes Paid

Financial Charges Paid

Net Cash Flows from Operating Activities

Cash Flow from Investing Activities

Fixed Capital Expenditure

Net Cash Out Flows from Investing Activities

Cash Flow from Financing Activities

Long Term Loan Sponsor Loan

Net Cash Out Flows from Financing Activities

Net (Decrease) in Cash and Bank Balances

Cash and Bank Balances at Beginning of the period Cash and Bank Balances at the end of the period

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

Ishtiaq Ahmad

CEO & Director

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Director

QUARTERLY REPORT 09

(Rupees in '000')

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE QUARTER ENDED DECEMBER 31, 2025

A YOUSUF DEWAN COMPANY

The annexed notes form an integral part of these financial statements

Ishtiaq Ahmad

CEO & Director

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Director

10 QUARTERLY REPORT

CONDENSED INTERIM STATEMENT OF SEGMENT WISE OPERATING RESULTS (UN-AUDITED)

FOR THE QUARTER ENDED DECEMBER 31, 2025

(Rupees in '000')

Gross Sales

Local Exports

-

-

-

-

-

-

-

-

10,108 22,232

- -

-

-

66,767 10,108 88,999

195,777 - 195,777

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10,108 22,232

- -

1,772 3,680

1,772 3,680

-

-

-

-

262,544

1,263

8,571

9,834

10,108

-1,772

1,772

284,776

Sales Commission

Sales Tax /Special Excise Duty

13,514

Net Sales

-

-

-

-

8,336 18,552

-

252,710

8,336 271,262

COST OF SALES

Gross Profit

161,186 142,830 - - 13,324 18,759 21,483 431,193 195,993 592,782

(161,186)

(142,830)

-

-

(4,988)

(207)

(21,483)

(178,483)

(187,657) (321,520)

Administrative Expenses 3,910

Selling and Distribution Costs -

Other Operating (Income)/Loss (185)

4,710 1,669

- -

- -

1,846

-

-

23

25

-

-

-

-

6,905 10,403 12,507

- 8,074 -

(40) (1,327) (225)

3,725 4,710 1,669 1,846 23 25 6,865 17,150 12,282 23,731

Profit/(Loss) before Tax and Financial Cost (164,911) (147,540) (1,669) (1,846) (5,011) (232) (28,348) (195,633) (199,939) (345,251)

Ishtiaq Ahmad

CEO & Director

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Director

16,984

8,074

(1,327)

DEWAN SUGAR MILLS LIMITED

QUARTERLY REPORT

11

‌A YOUSUF DEWAN COMPANY

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

FOR THE QUARTER ENDED DECEMBER 31, 2025

1. Dewan Sugar Mills Limited (the Company) was incorporated in Pakistan, as a Public Limited company on June 27, 1982, under the Companies Act, 1913 (Now the Companies Act 2017 and its shares are listed in Pakistan Stock Exchange Guarantee Limited.(formerly Karachi and Lahore Stock Exchanges in Pakistan). The Principal activity of the Company is production and sale of white crystalline refined sugar, processing and trading of by-products, and other related activities and allied products. Further, one unit of the Company namely Poly propylene unit is non operative since 2016.

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

   The Company consist of Four units namely:

   1.Sugar unit. 2.Distellery unit. 3.Board and Penal unit and 4. Poly propylene unit.

   The registered office of the Company is situated at Dewan Centre, 3-A, Lalazar Beach Hotel Road, Karachi.-74000, Pakistan; while its all four units manufacturing facilities are located at Jillaniabad, Budho Talpur, Talluka, Mirpur Bathoro. District: Thatta, Sindh, Pakistan.

2. These financial statements have been prepared in accordance with requirements of the international Accounting Standard 34 "Interim Financial Reporting". In order to comply with the requirements of the above IAS, these financial statements include the following:

   • Balance Sheet as at Dec. 31, 2025, with comparative Balance Sheet as at September 30,2025

   • Profit and Loss Account for the Quarter ended Dec 31, 2025 with comparable profit and loss account for the comparable interim periods i.e. Quarter ended Dec 31, 2024

   • Cash flow statement, the statement of changes in equity and statement of comprehensive income cumulatively for the quarter ended Dec 31, 2025 with a comparative statement for the comparable the quarter ended Dec 31, 2024.

3. These financial statements are un-audited and are being submitted to the share holders under the requirement of section 245 of the Companies Act 2017.

4. The accounting policies and method of computation adopted in the preparation of these financial statements are the same as those applied in the preparation of the annual financial statements of the Company for the preceding year ended September 30, 2025.

5. PROPERY, PLANT & EQUIPMENT

   Note

   31-Dec-25 30-Sep-25

   (Rupees in '000')

   Operating Property Plant & Equipment 5.1

   Capital Work in Progress 5.2

   1. Opening Written down Balance

      Addition during the period Depreciation for the period

   2. Capital Work in progress

      Opening Balance

      12 QUARTERLY REPORT

      6,908,258

      6,815,988 109,128

      6,925,116

      6,908,258 -

      6,908,258 92,270

      6,815,988

      109,128

      109,128

      7,017,386

      7,321,668

      671

      7,322,339

      414,081

      6,908,258

      109,128

      ‌DEWAN SUGAR MILLS LIMITED

      Fixed capital expenditure during the period amounted to Rs. Nil million ( September 30, 2025: Rs.0.671 million).

6. SPONSOR LOAN - UNSECURED

   Note

   31-Dec-25 30-Sep-25

   (Rupees in '000')

   Sponsor Loan	6.1	501,295		469,855
   6.1 Sponsor Loan
   Opening Balance Loan amount Additional Loan		580,788 18,779		580,788 -
   		599,567		580,788
   Present value adjustment		(110,933)		(158,180)
   Additional Amortization Discount		(472)		-
   Add Amortization Discount Charged to P & L		13,133		47,247
   		(98,272)		(110,933)
   		501,295		469,855

   The Sponsors loan had been measured at amortized cost in accordance with International Accounting standard 39, Financial Instruments: Recognition and Measurement, and have been discounted using the weighted average interest rate of ranging 11.18% per annum. These interest free loans are payable in lum sum on September 30, 2027.

7. LONG TERM FINANCE-SECURED

   Syndicated Term Finance: Principal

   Repayment during the period Classified as current portion Current Maturity

   Overdue installments

   Less : Current Maturity on Long Term Loan

   2,348,128

   2,337,349

   10,779

   2,326,570

   -2,326,570

   2,326,570

   -

   10,779

   2,337,349

   -

   2,337,349

2,337,349

-

This amount represent outstanding balance of rescheduled settled amount as per compromising decree dated February 18, 2011 granted by Honorable High Court of Sindh at Karachi. As per terms 32 quarterly installments of principal loan ranging from Rs.57.09 million to Rs. 143.858 million will be payable in ten years with one year grace period with no mark-up through out the repayment period. The repayments of loan had been started from March 30, 2012 and last payment will be made on December 30, 2020

The Company had defaulted in repayments of restructured liabilities; however, the Company reapproached its lenders for further restructuring of its liabilities in 14 years, without the requirement of paying the markup and the Management is hopeful that such revision will be accepted soon by the lenders. Accordingly, the Banks' liability has been classified as non-current.

284,801

284,801

--

1. LONG TERM MARK UP PAYABLE

   Mark-up payable on Reschedule Term Finance

   Less : Current Maturity on Long Term Loan (overdue)

   QUARTERLY REPORT

   13
   
   
   
   

   ‌A YOUSUF DEWAN COMPANY

   This amount represents accumulated running balance of token mark up of Rs 425.051 million payable to Syndicated (Summit Bank & Other) in 4 equal quarterly instalments payable at the end of the loan period. Company had provided Rs.284.801 million till September 2018 and stopped providing further Mark up and approaching to lender for waiver due to current worst situation of sugar industries, we are hopeful our this request will be oblige.

2. DEFERRED LIABLITIES

   Note

   31-Dec-25 30-Sep-25

   (Rupees in '000')

   Deferred Tax Liability for Staff Gratuity (Provision)	9.1	5,348	5,348
   Deferred Income Tax Liability		1,552,139	1,575,601
   		1,557,487	1,580,949

   1. The Company discontinued its policy for staff retirement benefits plan for gratuity on March 31, 2007 and provision for all its outstanding liabilities had been made until March 31, 2007. This payable amount of gratuity was to transfer to provident fund trust account, however the Board of Trustee had amended the said clause and now the Company opted to pay this liability to each employees at the time of their separation from the Company.

3. SHORT TERM RUNNING FINANCES - SECURED

   191,196

Short term running finances - Secured 10.1 192,196

1. 1. This amount represent RF facility of Rs.192.196 million sanctioned by the lenders as per Court order/compromising decree. The facility is secured by the way of first charge over current assets of the Company with 20% margin. The mark-up of this facility is 3 month KIBOR plus 0.75% per annum payable quarterly basis.

2. CONTINGENCIES & COMMITMENTS

   There is no significant changes in the status of contingencies and commitments during the period as those reported in last published financial statements.

3. TRANSACTION WITH RELATED PARTIES

   The related parties comprise associated undertaking, directors, key management personnel and staff provident fund statement regarding remuneration and benefits and chief executives directors and key management personnel.

   Sale Commission Provident fund contribution

   Sponsors Loan Received / (Payment)

   31-Dec-25 31-Dec-24

   -972

   18,779

(Rupees in '000')

1,263

1,069

-

1. DATE OF AUTHORIZATION FOR ISSUE

   These Financial Statements were authorized for issue on January 29, 2026 by the board of directors of the Company.

2. GENERAL

Figures have been rounded off to the nearest thousand rupees.

Ishtiaq Ahmad

CEO & Director

Muhammad Ilyas Abdul Sattar

Chief Financial Officer

Abdul Basit

Chairman Board of Director

14

QUARTERLY REPORT

‌DEWAN SUGAR MILLS LIMITED

189.840

QUARTERLY REPORT

15