Transmission of Annual Report for the Year Ended 30.06.2025

ManuFacturers of High Tension Elecfrical Porcelain Insulators, High /'o/tage S wi tchgear

23.09.2025

The General Manager,

Pakistan Stock Exchange Limited, Stock Exchange Building,

Stock Exchange Road, Karachi, Pakistan

SUBJECT: PSX Regulation 5.6.9 Transmission of Annual Accounts for the year ended 30.06.2025

Dear Sir,

It is to inform you that the Annual Report of the Company for the year ended 30.06.2025 has been transmitted through PUCARS and is also available on the Company's website.

You may please inform the TRE Certificate Holders of the Exchange accordingly.

Yours faithfully,

For Emco Industries Limite

(Ahsa Su il M n an)

Company Secretary/Director

Encl: a.a.

Executive Director / HOD, Offsite-II Department, Supervision Di/ision,

Securities & Exchange Commission of Pakistan, 63, NIC Building, Jinnah Avenue, Blue Area, Islamabad, Pakistan

HEAD OFFICE• 4th F|oor. National Tower. 28-Egertni› HOoâ P.0 Box 36. Lahore - 54000. Pak,s/an

PABX: (042) 3630 â5 5 - J6 FAX . (042) 3636 8 f fi VVEBSI*E: vw›zv emco cam.pk E-iviAiL . in(o@emcg com.p

FA C TO R Y : 19-Km. Lahore- ShaeEnggura Poad. Ladore PABE,. (0^ 2) '37 16 8922-28 FAX . {0J 2J 3716 8932

E-/tfé/C . /ns‹7/a/or@ en cn con j.pñ

EMCO INDUSTRIES LIMITED

REPORT

ANNUAL REPORT 2025 1

CONTENTS

Company Information and Business Items 3

Notice of Annual General Meeting 4

Chairman's Review 8

Directors' Report to the Members 12

Financial Highlights of Last Ten Years 27

Statement of Compliance with the Code of Corporate Governance 28

Review Report to the Members on Statement of Compliance

with Code of Corporate Governance 31

Auditors' Report To The Members 32

Statement of Financial Position 36

Statement of Profit or Loss 37

Statement of Comprehensive Income 38

Statement of Changes in Equity 39

Statement of Cash Flows 40

Notes to and Forming part of the Financial Statements 41

Pattern of Shareholdings 86

Form of Proxy 89

2

Company Information

Mr. Javaid Shafiq Siddiqi Chairman / Non-Executive Director

Mr. Usman Haq Managing Director / Executive Director

Mr. Salem Rehman Chief Executive / Executive Director

Mr. Tariq Rehman Executive Director

Mr. Ahsan Suhail Mannan Company Secretary / Executive Director

Mr. Pervaiz Shafiq Siddiqi Non-Executive Director Mr. Salman Javaid Siddiqi Non-Executive Director Mr. Umair Noorani Non-Executive Director Mrs. Ayesha Mussadaque Hamid Independent Director Ch. Imran Ali Independent Director Syed Muhammad Mohsin Independent Director Mr. Osman Hameed Chaudhri Independent Director

Mr. Riaz Ahmad

Mr. Ahsan Suhail Mannan

Mr. Osman Hameed Chaudhri Chairman

Syed Muhammad Mohsin Member

Mr. Javaid Shafiq Siddiqi Member

Mr. Umair Noorani Member

Mr. Ahsan Suhail Mannan

"Is the Committee Secretary as required by the Chapter IX, 27 (1) (iv) of Code of Corporate Governance, Regulations 2019."

Mrs. Ayesha Mussadaque Hamid Chairman

Mr. Pervaiz Shafiq Siddiqi Member

Mr. Salman Javaid Siddiqi Member

Mr. Ahsan Suhail Mannan Member / Committee Secretary

Syed Muhammad Mohsin Chairman

Mr. Tariq Rehman Member

Ch. Imran Ali Member

Mr. Salem Rehman Member / Committee Secretary

Ch. Imran Ali Chairman

Mr. Javaid Shafiq Siddiqi Member

Mr. Usman Haq Member

Mr. Ahsan Suhail Mannan Member / Committee Secretary

M/s. Crowe Hussain Chaudhury & Co., Chartered Accountants, Lahore.

M/s. Muhammad Ali Hussain & Co. Chartered Accountants, Lahore.

Cornelious Lane & Mufti Chaudhary Associates Law Inn Rizvi & Company

Asad Ullah Khan

Habib Bank Limited National Bank of Pakistan The Bank of Punjab

The Bank of Khyber

Al Baraka Bank (Pakistan) Limited Askari Bank Limited

Soneri Bank Limited

• Tension Insulator

• Suspension Insulator

• Pin Insulator

• Line Post Insulator

• Cap and pin Insulator

• Station Post Insulator

• Long Road Insulator

• Insulator for Railway Electrification

• Telephone Insulator

• Low Voltage Insulator

• Dropout Cutout Insulator

• HT & LT Bushings

  Switchgear

• Disconnect Switch upto 245 kv

• Metal Oxide Surge Arresters upto 245 kv

• CTs, CVTs & PT,s upto 245 kv

  RTV Coating

• Room Temperature Vulcanised Silicone Rubber Coating

  Chemical Porcelain

• Acid Proof Tiles

• Acid Proof Cement

  Special Porcelain

• High Alumina Porcelain

• Lining Special Refractories & Grinding Media

  Metal Components

• Cross Arms for Distribution Poles

• Steel Pins for Pin Insulators/ Cross Arms

• D-Shakle Assembly

Corplink (Pvt) Limited

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

4th Floor, National Tower, 28-Egerton Road, Lahore.

19-Kilometre,

Lahore Sheikhupura Road, Lahore.

ANNUAL REPORT 2025 3

Notice of Annual General Meeting

NOTICE is hereby given that the 70th Annual General Meeting of the Shareholders of EMCO Industries Limited ("Company", "EMCO") will be held at ICC House, 2 - Chamba House Lane, Golf Road, GOR-1, Lahore on Tuesday 14th October 2025, at 11:30 A.M, to conduct the following business:

Ordinary Business:

1. To confirm the minutes of the Annual General Meeting of the Company held on 24.10.2024.

2. To receive, consider, approve and adopt the Annual Audited Accounts of the Company for the year ended 30th June 2025 together with the Director's and Auditor's Reports thereon.

3. To appoint Auditors for the next financial year ending 30th June 2026 and to fix their remuneration. The present Auditors, M/s. CROWE HUSSAIN CHAUDHURY & CO., Chartered Accountants, retire and being eligible, offer themselves for re-appointment.

Other Business:

1. To transact any other business with the permission of the Chair.

   By order of the Board of Directors

   Place: Lahore Ahsan Suhail Mannan

   Dated: September 18, 2025 (Company Secretary / Director)

   NOTES:

   1. The Share Transfer Books of the Company will remain closed from 6th October 2025 to 14th October 2025 (both days inclusive). Transfer received in order at M/S. Corplink (Pvt) Limited, Wings Arcade, 1-K, Commercial Model Town, Lahore up to the close of business on 3rd October 2025, will be treated in time for purpose of attending the Annual General Meeting.

   2. A member entitled to attend and vote at the Annual General Meeting may appoint another member as his/her proxy to attend and vote instead of him/her at the meeting. Proxies must be deposited at the Company's Registered Office at 4th Floor, National Tower, 28-Egerton Road, Lahore not less than 48 (forty-eight) hours before the time of holding the meeting. (Form of Proxy is available in the Financial Statements & on Company website).

   3. Any individual beneficial owner of CDC, entitled to vote at the Annual General Meeting, must bring his/her CNIC with him/her to prove his/her identity, and in case of proxy, attested copy of shareholder's CNIC must be attached with the proxy form. The representative of corporate member should bring the usual documents required for such purpose. (Form of Proxy is attached)

   4. Members are requested to promptly notify the change in their address, if any, to the Company's Share Registrar M/S. Corplink (Pvt) Limited, Wings Arcade, 1-K Commercial, Model Town, Lahore.

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   5. Consent for Video Conference Facility:- Pursuant of Section 132(2) of the Companies Act, 2017, Members may avail video conference facility for this Annual General Meeting provided, the Company receives consent from the members holding aggregate 10% or more shareholding at least 7 days prior to the date of meeting. The requisite form for availing the facility is provided at the website of the Company https://www.emco.com.pk
   6. Unclaimed Dividend and Share Certificates:- Members, whose dividend and share certificates are still un-claimed/undelivered, are hereby once again requested to approach the Company to claim their outstanding dividend amounts and / or undelivered share certificates.
   7. Deposit of Physical Shares into CDC Account:- As per Section 72 of the Companies Act, 2017, every existing listed Company is required to replace its physical shares with book-entry form in a manner as specified by the Commission. The Members having physical shareholding are encouraged to open Investor Account directly with CDC to place their physical shares into scrip-less form. This will facilitate them in many ways, including safe custody and sale of shares any time they want, as the trading of physical shares is not permitted as per existing regulations of the Pakistan Stock Exchange.
   8. Provision of International Bank Account Number (IBAN Detail):- Under the provision of Section 242 of the Companies Act, 2017 and Circular No. 421(1) dated 19th March 2021 issued by SECP, Listed Company deposit cash dividend directly into shareholders' designated bank accounts. Shareholders are required to provide their International Bank Account Number (IBAN) details as directed by SECP.
   9. Prohibition of Distribution of Gifts:- Considering S.R.O.452(1)/2025 dated 17th March 2025, No gifts will be distributed to the shareholders of the Company at the Annual General Meeting being prohibited under Section 185 of the Companies Act, 2017.

ANNUAL REPORT 2025 5

Chairman Review

I am pleased to present the Chairman's Review, reflecting on the performance of EMCO Industries Limited and the strategic role played by the Board of Directors in steering the Company toward its objectives during the financial year ended June 30, 2025.

EMCO Industries Limited is governed by a highly experienced, diverse, and competent Board of Directors, fully aligned with the Company's vision, mission, and core values. The Board remains committed to fostering transparency, accountability, and ethical leadership, while safeguarding the interests of all stakeholders shareholders, employees, customers, and the broader community.

In compliance with the Companies Act, 2017 and the Listed Companies (Code of Corporate Governance) Regulations, 2019, the Company adheres strictly to all statutory and regulatory requirements concerning Board structure, roles, and responsibilities. This includes the appointment of executive, non-executive, and independent directors, the conduct and frequency of meetings, and the effective functioning of Board committees. These practices reinforce our commitment to sound corporate governance across the organization.

Throughout the year, the Board actively monitored the Company's performance across business operations, financial health, and productivity. Its primary objective remains to guide and advise management, ensuring strategic alignment and sustainable growth.

The financial year 2024-25 presented significant challenges due to a combination of micro and macroeconomic factors that contributed to a nationwide economic slowdown. These included:

Elevated inflationary pressures Domestic political uncertainty

Reduction in PSDP funding amid IMF negotiations Global geopolitical tensions

These headwinds led to a decline in local demand for insulators, particularly from DISCOs and NTDC, posing concerns for the Company. In response, management strategically pivoted toward export markets, with a strong focus on the United States. This shift yielded remarkable results-export sales surged by 174% compared to the previous fiscal year. Encouraged by this momentum, the Company aims to sustain a similar growth trajectory in the coming year, while anticipating a recovery in domestic demand.

Despite the economic challenges, and by the grace of Allah Almighty, EMCO Industries Limited achieved a profit after tax of Rs. 56 million, a testament to the resilience and adaptability of our team.

In accordance with the Code of Corporate Governance, the Board conducted its annual performance evaluation. The results reflected a satisfactory level of effectiveness, strategic oversight, and governance.

The Board comprises a well-balanced mix of executive, non-executive, and independent directors, each bringing a wealth of professional expertise, financial acumen, and independent judgment. This diversity enhances strategic decision-making and ensures robust compliance with fiduciary and regulatory responsibilities.

The Board remains proactive in reviewing and updating its governance frameworks and policies to reflect evolving market dynamics, external developments, and changes in the legal and regulatory landscape.

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On behalf of the Board of Directors, I extend heartfelt appreciation to our management team, employees, and esteemed shareholders for their continued trust, support, and dedication. Your unwavering commitment is the cornerstone of our progress.

We reaffirm our pledge to uphold the highest standards of corporate governance and operational excellence as we pursue sustainable growth and long-term value creation for all stakeholders.

Dated: September 18, 2025 (Chairman)

ANNUAL REPORT 2025 9

Directors' Report

On behalf of the Board of Directors, we warmly welcome you to the 70th Annual General Meeting of the Company. We are pleased to present the audited financial statements along with the Auditor's Report for the fiscal year ended June 30, 2025. The financial results are summarized below:

In the period under review, the global economy experienced a moderate recovery, supported by easing inflationary pressures despite ongoing regional and global geopolitical tensions. Trade flows remained unpredictable, influenced by rising protectionist policies and regional conflicts. Nevertheless, the sustained trade friction between the United States and China created favorable conditions for EMCO, enabling deeper market penetration in the U.S. and expanding our export footprint.

Significant investments were directed toward digital services and green technologies, while traditional manufacturing sectors continued to face headwinds. Companies worldwide prioritized resilience, regionalization, and AI-driven transformation, all of which require extensive energy resources and help drive growth for EMCO's products. Capital investment was notably channeled into automation, cybersecurity, and compliance with Environmental, Social, and Governance (ESG) standards.

Pakistan's economy demonstrated signs of stabilization during the year, supported by the Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF). The country recorded GDP growth of approximately 2.7%, driven primarily by industrial recovery and improved fiscal discipline. Inflation moderated, and early results of the government's reform agenda began to materialize. However, challenges in energy pricing and tax policy persisted.

IMF-backed reforms played a pivotal role in enhancing fiscal responsibility and incentivizing investment. Looking ahead, the country's economic outlook will largely depend on the sustainability of these macroeconomic stabilization efforts, the pace of structural reforms, and global economic trends.

During the reporting period, your Company generated sales revenue of Rs. 3,607.41 million, reflecting a year-on-year decline of 14%. Despite this, the Company reported a pre-tax profit of Rs. 42.08 million and a post-tax profit of Rs. 55.74 million.

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These results reflect the challenges faced by your Company in the period under review. A sluggish domestic demand for EMCO products on account of a sharp fiscal tightening in public sector spending severely impacted your Company's operations. However, your management team continued to aggressively pursue an ongoing transformation in EMCO's business strategy, including optimizing production capacity, a focus on exports, and product diversification-particularly the introduction of new High Voltage Switchgear offerings, and Metal Components and products for the Energy sector. Low demand in the domestic segment resulted in elevated finished goods inventory toward the end of the fiscal year. Encouragingly, a significant uptick in demand was witnessed in the audit period, which will result in offloading this stock.

The Company's export strategy has yielded positive results, with export sales increasing by 174% compared to the previous fiscal year. This upward trajectory is expected to continue in the current year, with the US taking the lead as EMCO's largest market this year.

Strategic expansion projects have positioned EMCO to enhance its competitiveness across both domestic and international markets. However, the second half of the year saw supply chain disruptions caused by rising global logistics costs and delays in transshipments. These issues led to Liquidated Damages (LDs) of Rs. 15.87 million, recorded against annual sales as of June 30, 2025. This LD was significantly lower than last year. Most of the financial impact from these disruptions has now been absorbed, and further LDs are expected to be significantly reduced moving forward.

Persistent inflation and elevated borrowing costs on account of short term financing posed substantial challenges. Nevertheless, through prudent management and, by the grace of ALLAH Almighty, your Company achieved positive operational and financial outcomes. Import-related constraints prompted decisive action to localize components, reducing dependence on imported materials. These initiatives will provide longterm benefits, particularly in the face of ongoing PKR currency volatility. Moreover, the export drive is expected to mitigate future input cost fluctuations.

Insulator production for the year stood at 3,224 tons, slightly lower than the 3,300 tons produced last year. The current rated production capacity is being restructured to accommodate the manufacture of new product lines, including Switchgear and Apparatus Insulators for High Voltage Substation applications, and new products for the export markets. Due to the significantly larger physical size and kiln processing requirements of these products, the overall rated capacity is reduced in this configuration.

Domestic demand for Insulators and Switchgear products was adversely affected by fiscal constraints and spending cuts imposed by the interim federal government. However, the current government has signaled its commitment to rehabilitating and expanding the country's energy infrastructure, which is evident as new tenders were announced towards the end of the period under review. Management anticipates increased demand for EMCO's products in the upcoming fiscal year, with current orders already exceeding four months of production capacity.

The Company's expansion into High Voltage Disconnect Switches and Instrument Transformers has also proven successful, supported by strong market demand.

Direct export sales of your Company reached Rs. 462.79 million during the review period, with significant volumes delivered to markets including the United States, UAE, Turkey, Brazil, Taiwan, Egypt, and Colombia. With export revenue growing by 174% year-on-year, the management has already secured substantially larger export orders currently under execution. Your Company remains committed to expanding its export portfolio and expects significant year-on-year growth in this segment.

The requirements of the Code of Corporate Governance set out by the Pakistan Stock Exchange in its Listing Regulations, relevant for the year ended June 30, 2025, have been adopted by the Company and have been duly complied with. A statement to this effect is annexed with the report.

In compliance with the provisions of the Code, the Board members are pleased to place the following statement on record:

The financial statements for the year ended June 30, 2025, present fairly its state of affairs, the results of its operations, cash flow and changes in equity.

Proper books of accounts have been maintained.

ANNUAL REPORT 2025 13

Appropriate accounting policies have been consistently applied in preparation of financial statements for the year ended June 30, 2025, and accounting estimates are based on reasonable and prudent judgment.

International Accounting Standards (IAS), as applicable in Pakistan, have been followed in preparation of financial statements.

The system of internal control is sound in design and has been effectively implemented and monitored.

There has been no material departure from the best practices of corporate governance, as detailed in listing regulations.

Overall, 100% of the Board of Directors have either completed the Director's Training Program or are exempted from it.

The value of Assets of Provident Fund based on its audited accounts as on December 31, 2024 was Rs.

9.9 Million. The value of investment includes accrued interest.

The Board of Directors, which consists of Twelve members, have responsibility to independently and transparently monitor the performance of the Company and take strategic decisions to achieve sustainable growth in the Company value. All members of the Board are elected in the general meeting after every three years. The current Board of Directors was elected on 26th June 2023. The current Board members are as follows:

1. Mr. Javaid Shafiq Siddiqi Chairman / Non-Executive Director

2. Mr. Usman Haq Managing Director / Executive Director

3. Mr. Salem Rehman Chief Executive / Executive Director

4. Mr. Tariq Rehman Executive Director

5. Mr. Ahsan Suhail Mannan Company Secretary / Executive Director

6. Mr. Pervaiz Shafiq Siddiqi Non-Executive Director

7. Mr. Salman Javaid Siddiqi Non-Executive Director

8. Mr. Umair Noorani Non-Executive Director

9. Mrs. Ayesha Mussadaque Hamid Independent Director

10. Ch. Imran Ali Independent Director

11. Syed Muhammad Mohsin Independent Director

12. Mr. Osman Hameed Chaudhri Independent Director

As listed above, there are a total of 12 Directors including 04 Executive Directors, 04 Non-Executive Directors and 04 Independent Directors (03 Male & 01 Female).

The term of the existing members of the Board will expire on 30-06-2026, along with their consent to act so and filed a declaration on the prescribed form as requirements of the Code of Corporate Governance.

A written notice of the Board meeting along with working papers was sent to the members seven days before meetings. A total of Four meetings of the Board of Directors were held during the year ended June 30, 2025. The attendance of the Board members was as follows: -

Leave of absence was granted to Directors who could not attend the meetings.

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During the financial year none of the Directors, CEO, CFO, Company Secretary (including their spouses and minor children) traded in the shares of the Company.

The Audit Committee (AC) reviews the annual and quarterly financial statements, internal audit reports, and information before dissemination to Pakistan Stock Exchange, and proposes appointment of the external auditors for approval of the shareholders, apart from other matters of significant nature. The AC holds its meeting prior to the Board meeting. A total of Six meetings of the AC were held during the year under review. It includes statutory meetings with external auditors before start of annual audit and meeting with external auditors without CFO and Head of Internal Audit being present.

The Board has appointed the following members of the Audit Committee for a period of three years w.e.f. 01.07.2023 in the meeting of the Board of Directors held on 04.07.2023.

Mr. Osman Hameed Chaudhri Chairman

Syed Muhammad Mohsin Member

Mr. Javaid Shafiq Siddiqi Member

Mr. Umair Noorani Member

Mr. Ahsan Suhail Mannan is the Committee Secretary as required by Chapter IX, 27 (1) (iv) of the Code of Corporate Governance, Regulations 2019.

A total of two meetings of HR & Remuneration Committee were held during the year under review.

The Board has appointed the following members of the HR & Remuneration Committee for a period of three years w.e.f. 01.07.2023 in the meeting of the Board of Directors held on 04.07.2023.

Mrs. Ayesha Mussadaque Hamid Chairman

Mr. Pervaiz Shafiq Siddiqi Member

Mr. Salman Javaid Siddiqi Member

Mr. Ahsan Suhail Mannan Member / Committee Secretary

A total of one meeting of Risk Management Committee was held during the year under review.

The Board has appointed the following members of the Risk Management Committee for a period of three years w.e.f. 01.07.2023 in the meeting of the Board of Directors held on 04.07.2023.

Syed Muhammad Mohsin Chairman

Mr. Tariq Rehman Member

Ch. Imran Ali Member

Mr. Salem Rehman Member / Committee Secretary

A total of one meeting of Nomination Committee was held during the year under review.

The Board has appointed the following members of the Nomination Committee for a period of three years

w.e.f. 01.07.2023 in the meeting of the Board of Directors held on 04.07.2023.

Ch. Imran Ali Chairman

Mr. Javaid Shafiq Siddiqi Member

Mr. Usman Haq Member

Mr. Ahsan Suhail Mannan Member / Committee Secretary

ANNUAL REPORT 2025 15

The Company has an approved Director Remuneration policy governing remuneration of executive, non executive and independent director of the Company. The significant features of the policy are:

1. All directors, including independent director are entitled to receive remuneration as per approval from the Board in The Board of Directors ("BOD") meetings.

2. The BOD on recommendation of Human Resource & Remuneration (HR & R) Committee from time to time determines and approves the remuneration of the members of the BOD for attending Board Meetings.

Please note that the Company does not pay remuneration to its non-executive director. Aggregate amount of the remuneration paid to Chief Executive, executive directors and non-executive directors have been disclosed in note 39 of the annexed financial statements.

It is our policy to view risk management as integral to the creation, protection and enhancement of shareholder value by managing the significant uncertainties and risks that could possibly influence the achievement of our corporate goals and objectives.

Following are the risks which may be faced by the Company in future:

1. Devaluation of Rupee and foreign exchange controls imposed by Government of Pakistan.

2. Constant fluctuations in costs of Natural Gas & Power.

3. Evolving protectionist policies in the export markets that could negatively impact export of EMCO products from Pakistan.

Strategy and Policy Business Continuity Management is in place. Its application remains a priority for the Company. Risk Management processes have been reviewed and updated recently and are considered effective.

The Company acknowledges its responsibility towards society and performs its duty by providing financial assistance to local communities for their economic and social development. The Company is diligently complying with its Corporate Social Responsibility (CSR).

Your Company has renewed its ISO 14001:2015 certification for helping it achieve its outcomes regarding environmental management. Management is pleased to announce that the ISO 50001 certification is being leveraged to further improve the metrics on energy management, which will also tie into the Company's overall vision to protect the environment. With the completion of the BMR project, your Company intends to also review the opportunity to enhance the PV Solar project to further reduce its carbon footprint, whilst simultaneously improving its operational and financial metrics.

Despite the inflationary pressure, the Management would like to place on record a very positive and cooperative role of employees during the year. The Management would like to place on record its appreciation in this regard and will look forward to their continuous support during the difficult time that the nation is presently undergoing. The Management would also like to place on record the continuous research and development by the Engineering team and the very cooperative role played by the Union in increasing the output on virtually each stage of production and reducing losses wherever possible. The support of all other departments is also acknowledged.

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The Company upholds a firm commitment to non-discrimination based on gender or any other characteristic. We strongly advocate equality, fairness, and respect for every individual. Our company ensures that all policies, practices, and decision-making processes are devoid of any form of discrimination. The Company promotes an inclusive culture and cultivates a safe, supportive environment where everyone can contribute their unique talents and perspectives. By fostering a workplace free from gender bias, the Company aims to create a diverse and empowering environment for all employees.

Pakistan continues to face considerable macroeconomic challenges, including a slowdown in economic growth, elevated inflation, and a substantial debt burden. Despite these pressures, the country has demonstrated resilience, and efforts to enforce fiscal discipline and foster an export-oriented economy are commendable steps in the right direction. Your Company remains fully aligned with these national priorities and is committed to supporting and contributing to these broader economic objectives.

Energy sector reform has re-emerged as a focus for the current political administration. The reform agenda includes addressing structural inefficiencies, encouraging private sector participation, and promoting the indigenization of products within the sector. Management believes that this strategic national direction presents a valuable opportunity for EMCO to expand its role and footprint within the energy sector.

We are pleased to report that EMCO continues to forge ahead in its recently pre-qualified products manufactured at its metal foundry with encouraging sales in the period under review as well as in the immediate future. Your management has also strived for obtaining the ISO 17025 independent laboratory certification of the High Voltage and Mechanical Testing Laboratories at the Company. The final audit from the Pakistan National Accreditation Council (PNAC) has been conducted successfully and the certification is expected within the Calendar Year 2025. This prestigious development enables the Company to offer its state of the art laboratory facilities to external clients as a means to generate additional revenue, and to improve the ability for EMCO to offer high-quality certifications to it's products for both the domestic, as well as international clients.

In parallel with domestic initiatives, EMCO continues to strengthen its presence in the export market. Building on recent successes in North American and Latin American markets, the Company is aggressively pursuing its efforts to further grow its international customer base. Management is optimistic that the export segment will continue its upward trajectory in the coming year, Insh'Allah.

The Company is pleased to inform its stakeholders that all banking relationships remain in good standing. EMCO continues to meet its financial obligations on schedule, in accordance with all agreed terms and conditions.

The Company's contribution to the exchequer in the year under review is Rs. 794 million (Rs. 902 million in last year) in the shape of Import duty, Sales tax, Income Tax and other levies.

We would like to thank our Board of Directors for their continued guidance, and our entire management team for their hard work to ensure a positive trajectory of the Company. We would also like to acknowledge the support of our shareholders, financial institution partners and creditors for closing a successful year.

The Board has not recommended any dividend for the period.

ANNUAL REPORT 2025 17

The pattern of shareholding as on June 30, 2025 and its disclosure, as required by the Code of Corporate Governance is annexed with this report.

The key financial highlights for the last 10 years performance of the Company is available in this report.

As proposed by the Audit Committee and recommended by the Board, the present auditors M/s Crowe Hussain Chaudhury & Co., Chartered Accountants, retire and being eligible, offer themselves for re-appointment if approved by the shareholders in Annual General Meeting.

VIS Credit Rating Company Limited reaffirms entity ratings of EMCO Industries Limited ('EMCO' or 'the Company') at 'A-/A-2' (Single A minus/A-Two) with a 'Stable' outlook. Medium to long term rating of 'A-' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A-2' indicates good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are minimal.

For and on behalf of the board of Directors

Salem Rehman Ahsan Suhail Mannan

Chief Executive Officer Director / Company Secretary Lahore: September 18, 2025

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