Fatima Fertilizer Co. Ltd.PSX: FATIMA

Transmission of Quarterly Financial Statements for the Period Ended June 30, 2025

Aug 29, 2025 at 4:34 AM UTC · Issued by Fatima Fertilizer Co. Ltd.

SUSTAINABILITY

TABLE OF

CONTENT

Company Information 02

Directors' Report to the Shareholders 04

Independent Auditors' Review Report to the Members on Separate Financial Statements 08

Condensed Interim Separate Financial Statements

Condensed Interim Statement of Financial Position 10

Condensed Interim Statement of Profit or Loss 12

Condensed Interim Statement of Comprehensive Income 13

Condensed Interim Statement of Changes in Equity 14

Condensed Interim Statement of Cash Flows 15

Notes to and Forming Part of the Condensed Interim Financial Statements 16

Condensed Interim Consolidated Financial Statements

Condensed Interim Consolidated Statement of Financial Position 28

Condensed Interim Consolidated Statement of Profit or Loss 30

Condensed Interim Consolidated Statement of Comprehensive Income 31

Condensed Interim Consolidated Statement of Changes in Equity 32

Condensed Interim Consolidated Statement of Cash Flows 33

Notes to and Forming Part of the Condensed Interim Consolidated Financial Statements 34

COMPANY INFORMATION

Board of Directors

Mr. Arif Habib

Chairman

Mr. Fawad Ahmed Mukhtar

Chief Executive Officer

Mr. Fazal Ahmed Sheikh

Director

Mr. Faisal Ahmed Mukhtar

Director

Mr. Muhammad Kashif Habib

Director

Mrs. Julie Jannerup

Independent Director

Mr. Tariq Jamali

Independent Director

Chief Operating Officer

Mr. Asad Murad

Chief Financial Officer

Dr. Syed Hyder Hasan

Director Legal & Company Secretary

Mr. Omair Mohsin

(communications@fatima-group.com)

Key Management

Mr. M. Abad Khan

Advisor to the CEO

Ms. Sadia Irfan

Director Human Resources

Mr. Iftikhar Mahmood Baig

Director Business Development

Mr. Ausaf Ali Qureshi

Advisor Projects

Mrs. Rabel Sadozai

Director Marketing and Sales

Mr. Salman Ahmad

Director Internal Audit

Mr. Wajid Ishaq Bhatti

G.M. Manufacturing

Mr. Asad-ur-Rehman

Director Risk & Compliance

Mr. Faisal Jamal

Corporate HSE & Technical Support Manager

Audit Committee Members

Mr. Tariq Jamali

Chairman

Mr. Faisal Ahmed Mukhtar

Member

Mrs. Julie Jannerup

Member

Mr. Muhammad Kashif Habib

Member

HR and Remuneration Committee Members

Mrs. Julie Jannerup

Chairperson

Mr. Fawad Ahmed Mukhtar

Member

Mr. Muhammad Kashif Habib

Member

Nomination and Risk Management Committee Members

Mr. Fazal Ahmed Sheikh

Chairman

Mr. Muhammad Kashif Habib

Member

Mr. Tariq Jamali

Member

Legal Advisors

M/s. Chima & Ibrahim Advocates

1-A/245, Tufail Road, Lahore Cantt

Auditors

M/s. Yousuf Adil

Chartered Accountants, Lahore

134-A, Abu Bakar Block, New Garden Town, Lahore

Tel: +92 42 3591 3595-7, +92 42 3544 0520

Fax: +92 42 3544 0521

Registrar and Share Transfer Agent

CDC Share Registrar Services Limited CDC House, 99-B, Block 'B' S.M.C.H.S., Main Shahra-e-Faisal Karachi-74400

Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275) Fax: (92-21) 3432 6053

Email: info@cdcsrsl.com Website: https://www.cdcsrsl.com

Bankers

Al-Baraka Bank (Pakistan) Limited Allied Bank Limited

Askari Bank Limited Bank of Khyber Bank Alfalah Limited

Bank Al-Habib Limited Bank Makramah Limited

BankIslami Pakistan Limited Citibank N.A

Dubai Islamic Bank Pakistan Limited Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited

Industrial & Commercial Bank of China (ICBC) JS Bank Limited

MCB Bank Limited

MCB Islamic Bank Limited Meezan Bank Limited National Bank of Pakistan

Pak Kuwait Investment Company Limited Soneri Bank Limited

Standard Chartered Bank (Pakistan) Limited The Bank of Punjab

United Bank Limited

Registered Office / Head Office

E-110, Khayaban-e-Jinnah, Lahore Cantt, Pakistan

UAN: 111-FATIMA (111-328-462)

Fax: +92 42 3662 1389

Plant Sites

Mukhtar Garh, Sadiqabad, Distt. Rahim Yar Khan, Pakistan Tel: 068 - 5951000

Fax: 068 - 5951166

Khanewal Road, Multan, Pakistan Tel: 061 - 90610000

Fax: 061 - 92290021

28-KM Sheikhupura Road, Chichoki Mallian, Pakistan

Tel: 042 - 37319200 - 99

Fax: 042 - 33719295

DIRECTORS' REPORT

To the shareholders for the six months ended June 30, 2025

On behalf of the Board of Directors of Fatima Fertilizer Company Limited, we are pleased to present a brief overview of the Company's performance and condensed interim consolidated and standalone financial statements for the half year ended June 30, 2025. The standalone financial statements were subject to a limited scope review by the statutory auditors of the Company.

The Economy

The implementation of 37-month, USD 7 billion IMF Extended Fund Facility has reinforced policy credibility and provided essential financial support to promote inclusive and reform-driven growth. With strengthened macroeconomic fundamentals, prudent fiscal management, and improved external sector performance during the Fiscal year 2025 (FY25), Pakistan's economy continued to build on its path to recovery started in the Fiscal Year 2024 (FY24). Real GDP grew by 2.68 percent against planned 3.6 percent, while inflation remained in check. The current account balance recorded a surplus of over 2 billion dollars in the FY25 for the first time in 14 years as against a deficit of $2.1 billion in the previous year. FBR collected Rs 11.737 trillion reflecting a year-on-year growth of over 26.19%.

Consequently, S&P Global upgraded Pakistan's sovereign credit rating to 'B-' from 'CCC+' and placed it on a 'stable' outlook with expectation of continued economic recovery and stabilizing fiscal and debt metrics. Another heartwarming announcement come from data posted by Bloomberg Intelligence, whereby, Pakistan leads the world in Global Emerging Markets Rankings in Default Risk Reduction, as the country has recorded the largest drop in sovereign default risk globally over the last 12 months.

Remaining undeterred by the brief armed conflict with India, investors' business confidence continues to strengthen, as reflected in the continued bullish sentiment in the Pakistan Stock Exchange as the KSE-100 indexed surpassed the 150,000 mark for the first time ever. Company incorporations increased by 27.5% over FY24.

Fertilizer Market

International

Significant volatility in global fertilizer markets, driven by geopolitical disruptions and surging input costs, kept sentiment cautious yet bullish. DAP and MAP prices rose over 20% to close at USD 781.5/MT CFR India and USD 757.5/MT CFR Brazil, respectively, amid constrained Indian imports and China's export restrictions. Urea benchmarks in Algeria, Saudi Arabia, and the US rose USD 50-100/MT within a week after mid June, contributing to an overall 30% increase. Overall, fertilizer affordability declined sharply.

Local

Stressed farmer economics emanating from wheat crisis at the start of April last year coupled with week commodity prices kept the fertilizer market under duress resulting in decline in fertilizer offtake by 17.7%, to 3,595K MT in the first half of year 2025 compared to 4,366K MT in the comparable period last year. However, Punjab Government's Kissan Card program improved the liquidity situation for the farmers slightly.

Urea offtake had the most impact during this struggling time, as it dropped by 22.6% to 2,350K MT from 3,037K MT in first half of year 2024. DAP and Nitro phosphate off-take also dropped by 17.9% and 5% respectively. However, Calcium Ammonium Nitrate (CAN), off-take increased by 9% from 365K MT to 398K MT.

Operational and Financial Performance

Despite the industry facing major headwinds, your Company managed to gain and maintain its healthy presence in the market with an overall market share of 32.7% showcasing a truly resilient and determined performance. The overall market share of the Company increased by an impressive 7.8% as it managed an overall fertilizer offtake of 1,163K MT during the first six months of the year, compared to 1,081K MT inclusive of 38K MT imported urea purchased from NFML for comparable period the year before.

The plant operations remained optimum with worldclass HSE standards. All the plants exceeded their production targets with Sheikhupura plant (Fatimafert Limited) producing 266,791 MT, its highest ever volume for the first six months of the year. Combined fertilizer production achieved was 1,421K MT against 1,419K MT for the comparable period last year.

The plants have built on their reputation as one of the safest workplaces globally by racking up combined +143 Safe Million Man Hours, with only 0.2 Total Recordable Incidence Rate for all three plants, for the reporting period. Sheikhupura plant became the first fertilizer plant in Pakistan to achieve ASME certification for Pressure Vessels Manufacturing.

Products	Production		Sales
	For the six months ended June 30
	2025	2024	2025	2024
	Volume ('000' M. Tons)
NP	429	432	357	349
CAN	435	433	397	365
Urea	557	554	390	319
Own Manufactured	1,421	1,419	1,144	1,033
DAP + Imported Urea	17	82	19	48
Total	1,438	1,501	1,163	1,081

Consolidated sales revenue increased by 7% to Rs 115.90 billion versus Rs 108.38 billion for the reported period last year. Gross profit, however, receded by 4% over last year's comparable period, mainly due to increase in gas cost and other inflationary pressures.

Selling and distribution costs increased by 25% due to high storage and network expansion cost while administrative expenses remained largely in line with last year's comparative period. Other income increased by 29%, mainly driven by return on investments. This enabled the Company to post Consolidated Profit before Tax of Rs 27.57 billion, a 4% increase over

Rs 26.51 billion posted in the comparative period last year. Considerable reduction in effective tax rate resulted in 25% increase in Consolidated Profit after Tax.

The Company's consolidated financial results include the performance of its wholly owned subsidiaries Fatimafert Limited, Fatima Packaging Limited, Fatima Cement Limited and Pakarab Fertilizers Limited.

	Financial Highlights (Consolidated)
	For the six months ended June 30
	2025	2024
	Rupees in Million
Revenue	115,901	108,378
Gross profit	41,938	43,606
Operating profit	21,843	22,757
Profit before tax	27,572	26,512
Profit after tax	16,935	13,583
EPS (Rs)	8.06	6.47

The Scheme of Arrangement, to transfer the operations related to Sheikhupura plant to Fatimafert Limited (a wholly owned Subsidiary Company), has been implemented with effect from July 01, 2024, while the scheme of Arrangement/Reconstruction for carving out of Multan Plant related operations and amalgamating the same with and into Pakarab Fertilizers Limited, a wholly owned subsidiary, with effective date of January 01, 2025, is in the process of court, corporate and regulatory authorizations, consents and approvals.

The standalone financial highlights for the six months ended June 30, 2025 are as follows:

	Financial Highlights (Standalone)
	For the six months ended June 30
	2025	2024
	Rupees in Million
Revenue	99,547	107,078
Gross profit	38,252	42,749
Operating profit	19,385	22,229
Profit before tax	25,500	25,961
Profit after tax	15,676	13,231
EPS (Rs)	7.46	6.30

The Company remains committed to community welfare and uplift in shape of various CSR initiatives in the fields of free quality healthcare, education and supply of potable drinking water for the community in the close vicinity to plants.

Future Outlook

The Country's economic outlook remains highly optimistic, with GDP growth projected between 3.5-4.5 percent for Financial Year 2026, rising home remittances and foreign exchange reserves, and manageable external debt repayments of $26 billion during the current fiscal year. The agriculture sector is also expected to recover in 2026. In particular, the outlook for major crops has somewhat improved from earlier expectations.

Your Company is expected to continue to deliver strong financial performance with the availability of healthy volumes, sustainable operations of the production plants and robust investment strategies. The Company remains committed to play its part in ensuring national food security by providing our farmers with high quality plant nutrients to maximize crop yields while minimizing environmental impact.

The Company continues to explore multiple avenues including large scale mining and exploration, corporate farming, real estate and financial sector to diversify and further solidify its financial position to provide sustained optimum returns to its stakeholders.

Acknowledgments

The Directors of the Company take pleasure in expressing their sincere gratitude and appreciation for the commitment and contribution of all the employees. The Board also appreciates and acknowledges the assistance, continued trust, guidance, and cooperation of all stakeholders including the Government of Pakistan, financial institutions, commercial banks, business associates, customers, and all others whose efforts and contributions strengthened the Company and hope that same spirit will prevail in the future as well.

For and on behalf of the Board

Lahore	Fawad Ahmed Mukhtar	Arif Habib
August 27, 2025	Chief Executive Officer	Chairman

INDEPENDENT AUDITORS' REVIEW REPORT

To the Members of Fatima Fertilizer Company Limited

Report on review of Interim Financial Statements Introduction

We have reviewed the accompanying condensed interim statement of financial position of Fatima Fertilizer Company Limited (the Company) as at June 30, 2025, and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows, and notes to and forming part of the condensed interim financial statements for the six months then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the six months, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three months period ended June 30, 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is Muhammad Sufyan.

Chartered Accountants Lahore

Date: August 27, 2025

UDIN: RR202510180omIY0Ocbn

For the six months ended June 30, 2025

Separate Financial Statements

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at June 30, 2025

Un audited Audited

June 30, 2025 December 31, 2024

Note (Rupees in thousand)

EQUITY AND LIABILITIES CAPITAL AND RESERVES Authorized share capital 3,700,010,000 (December 31, 2024: 3,700,010,000) shares of Rs 10 each		37,000,100	37,000,100
Issued, subscribed and paid up share capital
2,100,000,000 (December 31, 2024: 2,100,000,000)
ordinary shares of Rs 10 each		21,000,000	21,000,000
Reserves	4	127,484,077	120,732,919
		148,484,077	141,732,919
NON CURRENT LIABILITIES
Long term finances	5	3,779,883	42,291,109
Subordinated redeemable preference Class A shares		1,849,237	1,714,210
Lease liabilities		618,457	636,185
Deferred taxation		22,733,249	23,668,521
Deferred liabilities		2,799,522	2,725,767
Long term advances and deposits		517,356	497,354
		32,297,704	71,533,146
CURRENT LIABILITIES
Trade and other payables		64,218,760	55,422,205
Accrued finance cost		1,670,557	1,806,013
Income tax payable		7,635,285	10,140,497
Short term finances - secured	6	22,681,250	17,959,728
Payable to Privatization Commission of Pakistan		2,197,901	2,197,901
Unclaimed dividend		77,046	70,583
Current portion of long term liabilities	7	37,826,695	1,968,866
		136,307,494	89,565,793
CONTINGENCIES & COMMITMENTS	8
		317,089,275	302,831,858

The annexed explanatory notes from 1 to 26 form an integral part of these condensed interim financial statements.

Un audited Audited

June 30, 2025 December 31, 2024

Note (Rupees in thousand)

ASSETS
NON CURRENT ASSETS
Property, plant and equipment	9	93,590,117	96,202,487
Intangible assets	10	253,707	195,113
Investment property	11	163,154	163,607
		94,006,978	96,561,207
Long term investments	12	13,745,483	51,170,793
Long term loan to a subsidiary company		262,500	300,000
Long term advances and deposits	13	10,532,069	7,485,482
		24,540,052	58,956,275
		118,547,030	155,517,482
CURRENT ASSETS
Stores and spares	14	14,883,017	15,058,608
Stock in trade	15	66,333,254	53,169,508
Trade debts		14,268,089	17,569,721
Short term loans to related parties		9,706,135	3,657,539
Advances, loans, deposits, prepayments
and other receivables		18,908,088	18,484,806
Short term investments	16	71,978,107	30,286,530
Cash and bank balances		2,465,555	9,087,664
		198,542,245	147,314,376
		317,089,275	302,831,858

Chief Executive Officer Director Chief Financial Officer

Separate Financial Statements

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN AUDITED)

For the six months ended June 30, 2025

Three months ended Six months ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

Note (Rupees in thousand)

Sales Cost of sales	17	56,595,694 (37,143,295)	41,830,742 (26,009,252)	99,546,715 (61,294,527)	107,077,537 (64,328,857)
Gross profit		19,452,399	15,821,490	38,252,188	42,748,680
Distribution cost		(3,977,852)	(3,099,398)	(7,757,405)	(6,475,347)
Administrative expenses	18	(2,383,852)	(2,441,069)	(4,700,887)	(5,059,162)
		13,090,695	10,281,023	25,793,896	31,214,171
Finance cost	19	(1,967,198)	(721,342)	(3,809,191)	(1,459,181)
Other operating expenses		(1,634,794)	(1,632,254)	(2,599,673)	(7,525,952)
Other income Share of profit from associates Other losses: Unwinding of provision for GIDC Loss allowance on subsidy receivable from GoP		9,488,703	7,927,427	19,385,032	22,229,038
		3,772,543	2,103,973	6,114,729	4,407,322
		573	1,637	573	1,637
		-	(16,676)	-	(48,937)
		-	-	-	(627,648)
		-	(16,676)	-	(676,585)
Profit before tax		13,261,819	10,016,361	25,500,334	25,961,412
Taxation		(5,105,345)	(4,940,647)	(9,824,176)	(12,730,067)
Profit for the period		8,156,474	5,075,714	15,676,158	13,231,345
Earnings per share - basic and diluted (Rupees)	20	3.88	2.42	7.46	6.30

The annexed explanatory notes from 1 to 26 form an integral part of these condensed interim financial statements.

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN AUDITED)

For the six months ended June 30, 2025

Three months ended Six months ended

June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024

(Rupees in thousand)

Profit for the period

Other comprehensive income

8,156,474

5,075,714

15,676,158

13,231,345

Total comprehensive income for the period

8,156,474

5,075,714

15,676,158

13,231,345

The annexed explanatory notes from 1 to 26 form an integral part of these condensed interim financial statements.

Chief Executive Officer Director Chief Financial Officer

Separate Financial Statements

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For the six months ended June 30, 2025

Ordinary share capital	Capital reserve	Revenue reserve	Post retirement benefit obligation reserve	Total
	Share premium	Unappropriated profit

					(Rupees in thousand)
Balance as at December 31, 2023 (Audited)	21,000,000		1,790,000		95,913,335		(337,352)	118,365,983
Profit for the period	-		-		13,231,345		-	13,231,345
Other comprehensive income	-		-		-		-	-
Total comprehensive income	-		-		13,231,345		-	13,231,345
Transaction with owners:
- Final dividend for the year ended
December 31, 2023 @ Rs 2.75 per share	-	-		(5,775,000)		- (5,775,000)
Balance as at June 30, 2024 (Un audited)	21,000,000	1,790,000		103,369,680		(337,352) 125,822,328

Balance as at December 31, 2024 (Audited) Profit for the period Other comprehensive income Total comprehensive income Transaction with owners: - Final dividend for the year ended December 31, 2024 @ Rs 4.25 per share	21,000,000	1,790,000		119,346,573		(403,654)		141,732,919
	- -		- -		15,676,158 -		- -		15,676,158 -
	- -	- -		15,676,158 (8,925,000)		- -		15,676,158 (8,925,000)
Balance as at June 30, 2025 (Un audited)	21,000,000	1,790,000		126,097,731		(403,654)		148,484,077

The annexed explanatory notes from 1 to 26 form an integral part of these condensed interim financial statements.

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN AUDITED)

For the six months ended June 30, 2025

June 30, 2025 June 30, 2024

Note (Rupees in thousand)

Cash flows from operating activities
Cash generated from / (used in) operations	22	27,856,266	(595,109)
Net increase in long term deposits		20,002	48,657
Finance cost paid		(3,849,551)	(1,551,734)
Taxes paid		(13,581,942)	(10,391,549)
Employee retirement benefits paid		(175,636)	(70,019)
Net cash generated from / (used in) operating activities Cash flows from investing activities		10,269,139	(12,559,754)
Additions in property, plant and equipment		(2,808,500)	(3,692,724)
Additions in intangible assets		(109,053)	(5,771)
Proceeds from disposal of property, plant and equipment		80,930	6,933
Short term loans to associated companies - net		(6,048,596)	1,197,190
Purchase of long term investments		(349,290)	(545,396)
Purchase of short term investments		(4,726,409)	(730,309)
Proceeds from short term investments		5,199,991	6,882,051
Profit received on loans and saving accounts		913,552	2,439,171
Dividend income received		1,835,326	347,763
Net increase in long term advances and deposits		(3,877,990)	(2,547,802)
Net cash (used in) / generated from investing activities Cash flows from financing activities		(9,890,039)	3,351,106
Proceeds from long term finances		-	2,000,000
Repayment of long term finances		(2,752,867)	(2,505,007)
Repayment of lease liabilities		(51,327)	(49,491)
Dividend paid		(8,918,537)	(5,768,353)
Repayment of short term loans from related parties		-	(1,626,307)
Increase in short term finances - net		8,929,688	12,853,604
Net cash (used in) / generated from financing activities		(2,793,043)	4,904,446
Net decrease in cash and cash equivalents		(2,413,943)	(4,304,202)
Cash and cash equivalents at the beginning of the period		(6,789,351)	7,094,865
Cash and cash equivalents at the end of the period		(9,203,294)	2,790,663
Cash and cash equivalents comprises of following:
Cash and bank balances		2,465,555	3,306,106
Running finance		(11,668,849)	(515,443)
Cash and cash equivalents at the end of the period		(9,203,294)	2,790,663

The annexed explanatory notes from 1 to 26 form an integral part of these condensed interim financial statements.

Chief Executive Officer Director Chief Financial Officer

Separate Financial Statements

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN AUDITED)

For the six months ended June 30, 2025

Legal status and nature of business
1. Fatima Fertilizer Company Limited ('the Company'), was incorporated in Pakistan on December 24, 2003 as a public company under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The Company is listed on Pakistan Stock Exchange Limited. The principal activity of the Company is manufacturing, producing, buying, selling, importing and exporting fertilizers and chemicals.
  Registered office of the Company is situated at E-110, Khayaban-e-Jinnah, Lahore Cantt. The manufacturing facilities of the Company are located at Mukhtargarh - Sadiqabad and Khanewal Road - Multan.
2. These condensed interim financial statements are the separate financial statements of the Company in which investment in subsidiary companies is accounted for on the basis of actual cost less impairment, if any, and investment in associates is accounted for under equity method. Consolidated condensed interim financial statements are prepared separately.
Basis of preparation
1. These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
  - International Accounting Standard (lAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;
  - Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) 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 lAS 34 and IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.
2. These condensed interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the annual financial statements of the Company for the year ended December 31, 2024. Comparative condensed interim statement of financial position is extracted from annual audited financial statements for the year ended December 31, 2024 and comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows are extracted from un audited condensed interim financial statements for the six months ended June 30, 2024.
3. These condensed interim financial statements are un audited. However, a limited scope review has been performed by statutory auditor of the Company in accordance with Section 237 of Companies Act, 2017 and they have issued their review report thereon.
4. These condensed interim financial statements are presented in Pak Rupees, which is the Company's functional and presentation currency.
Material accounting policies and estimates

The accounting policies, related judgments, estimates and related assumptions adopted for the preparation of these condensed interim financial statements are the same as those applied in the preparation of annual financial statements of the Company for the year ended December 31, 2024.

Un audited Audited

June 30, 2025 December 31, 2024

Note (Rupees in thousand)

4 Reserves Capital reserve: Share premium Revenue reserve: Unappropriated profit Post retirement benefit obligation reserve	1,790,000 126,097,731 (403,654)	1,790,000 119,346,573 (403,654)
	127,484,077	120,732,919
5 Long term finances Secured loans from banking companies / financial institutions 5.1 Less: Current portion	41,494,764 37,714,881	44,152,653 1,861,544
	3,779,883	42,291,109
5.1 Movement of long term finances
Opening balance	44,152,653	7,935,333
Disbursements during the period / year	-	39,159,225
Accreditation of loan under SBP Temporary
Economic Refinance Scheme	94,978	158,936
Repayments during the period / year	(2,752,867)	(3,100,841)
	41,494,764	44,152,653

6 Short term finances - secured

The Company has obtained short term financing facilities from various banks for working capital requirements in the nature of Running Finance, Cash Finance, Finance against Trust Receipt and Finance against Imported Merchandise.

The facilities are secured by pari passu charge on present and future current assets of the Company, pledge of raw materials and finished goods and personal guarantees of sponsoring directors.

These facilities carry mark up ranging from 11.63% to 14.35% (December 31, 2024: 13.97% to 23.37%) per annum for Running Finance and Cash Finance and 11.60% to 12.85% (December 31, 2024: 12.85% to 22.55%) per annum for Finance against Trust Receipt and Finance against Imported Merchandise.

Separate Financial Statements

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN AUDITED)

For the six months ended June 30, 2025

Un audited Audited

June 30, 2025 December 31, 2024

Note (Rupees in thousand)

7 Current portion of long term liabilities

Long term finances 5

Lease liabilities

Deferred government grant

37,714,881

34,602

77,212

1,861,544

30,110

77,212

37,826,695

1,968,866

Contingencies and commitments
1. Contingencies
  As at June 30, 2025, there has been no material change in the status of contingencies as disclosed in the notes to the financial statements of the Company for the year ended December 31, 2024, except for the following:
  - Contingencies disclosed under notes (v), (vi), (viii), and (xxi) no longer remain outstanding, owing to orders issued by the relevant Appellate fora in the Company's favor.
  - In respect of the contingency reported under note (ix), the Company has filed an appeal before the Lahore High Court against the unfavorable order passed by the Appellate Tribunal Inland Revenue (ATIR).

In addition, the following new contingencies have arisen subsequent to the year ended December 31, 2024:

Through an order dated June 30, 2025, the Deputy Commissioner Inland Revenue (DCIR) created an income tax demand of Rs 29,035 million for tax year 2019 by treating bank credit entries as income and disallowing various expenses and tax credits. The Company has filed an appeal before Commissioner Inland Revenue (Appeals) (CIR-A) against the said order which is pending adjudication.
Through an order dated June 30, 2025, passed under sections 124/129, the DCIR created an income tax demand of Rs 1,579 million for tax year 2014 as a result of remand back proceedings initiated by the Commissioner Inland Revenue (Appeals) through an amendment order dated December 27, 2022, earlier issued under section 122(5). The Company has filed an appeal before CIR-A against the said order which is pending adjudication.

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