Transmission of Quarterly Report for the Period Ended 30-9-2025

2025

aq•

Three Months Ended Sep 30, 2025

Fazal Cloth Mills Limited

Contents

Corporate

1. Company Information

2. Directors' Review

06

Condensed Interim Financial Information

09 Condensed Interim Statement of Financial Position (Un-Audited)

10 Condensed Interim Statement of Profit or Loss (Un-Audited)

11 Condensed Interim Statement of Comprehensive Income (Un-Audited)

12 Condensed Interim Statement of Changes in Equity (Un-Audited)

1. Condensed Interim Statement of Cash Flows (Un-Audited)

2. Notes to the Condensed Interim Financial Information (Un-Audited)

BOARD OF DIRECTORS

AUDIT COMMITTEE

HUMAN RESOURCE AND REMUNERATION COMITTEE

STRATEGIC PLANNING COMPITTEE

COMPANY SECRETARY CHIEF FINANCIAL OFFICER

COMPANY PROFILE

aq•

Three Months Ended Sep 30, 2025

t Fazal Cloth Mills Limited

Sh. Naseem Ahmad Mr. Rehman Naseem

Mr. Amir Naseem Sheikh Mr. Faisal Ahmed

Mr. Muhammad Mukhtar Sheikh Mr. Abbas Mukhtar

Mr. Babar Ali

Mr. Masood Karim Shaikh Ms. Parveen Akhter Malik

Ms. Parveen Akhter Malik Mr. Sheikh Naseem Ahmad Mr. Amir Naseem Sheikh Mr. Babar Ali

Mr. Babar Ali

Mr. Amir Naseem Sheikh Mr. Faisal Ahmad

Mr. Rehman Naseem

Mr. Masood Karim Shaikh Ms. Parveen Akhter Malik

Mr. Azher Iqbal, ACA

Mr. Muhammad Azam, FCA 6 FCMA

Chairman/ Non - Executive Director Chief Executive Officer

Non- Executive Director Non - Executive Director Executive Director Executive Director Independent Director Independent Director Independent Director

Independent Director/Chairperson Non - Executive Director

Non - Executive Director Independent Director

Independent Director/Chairman Non- Executive Director

Non - Executive Director

CEO/Chairman Independent Director Independent Director

AUDITDRS BANKERS

ShineWing Hameed Chaudhri & Co., Chanered Accountants

Bank Al Habib Limited Askari Bank Limited

National Bank of Pakistan MCB Bank Limited

Meezan Bank Limited The Bank of Khyber

The Bank of Punjab JS Bank Limited

Habib Metropolitan Bank Limited Dubai Islamic Bank Pakistan Limited

Bank Alfalah Limited Habib Bank Limited Faysal Bank Limited Allied Bank Limited

Standard Chartered Bank (Pakistan) Limited Bank Makramah Limited

Saudi Pak Industrial b Agricultural lnv. Company Limited Pak Oman Investment Company Limited

Bank lslami Pakistan Limited Pak Brunei Investment Company Limited

Soneri Bank Limited Pak Libya Holding Company (Pvt. ) Limited

Industrial and Commercial Bank of China Ltd. Pakistan Kuwait Investment Company (Private) Limited

United Bank Limited

HEAD OFFICE 6 SHARES DEPARTMENT:

SHARES REGISTRAR:

REGISTERED OFFICE:

MILLS:

PAIR Investment Company Limited

59/3, Abdali Road, Multan.

Phone: (92), 4781637 Fax: (92) 61-4541832

E-mail: corporate@fazalcloth.com Shareséfazalcloth.com Website: https://www.fazalcloth.com

Vision Consulting Ltd.

5C, LDA Flats, Lawrence Road, Lahore . sharesé'vcl,com.pk Phone: (92) 42-36283096, 36283097 Fax: (92) 42-36374839

69/7, Abid Majeed Road, Survey No. 248/7, Lahore Cantt, Lahore. Phone: (92) 42-36684909

Fazal Nagar, Jhang Road, Muzaffargarh Pakistan Ph. (92) 66-2422216, 18 Fax: (92) 66-2422217

Qadirpur Rawan Bypass, Khanewal Road, Multan - Pakistan Ph. (92) 61-6740041-43, Fax : (92) 61-6740052

13 k.M., Mian Wali Road, Khanpur Bagga Sher. Ph. (92) 662-490183

On behalf of the Board of Directors of Fazal Cloth Mills Ltd. (the Company), we would like to present the un-audited financial information of the Company for the three months period ended September 30, 2025.

OVERVIEW

During the period under review, the textile sector, especially the spinning segment, encountered multiple challenges. The Company's revenue recorded a modest increase of 0.61% reaching Rs. 24.334 billion compared to Rs. 24.186 billion in the Same Period Last Year (SPLY). The gross margins have declined from 9.41% to 7.34% mainly on account of decreased yarn prices and fluctuating demand.

FINANCIAL PERFORMANCE

A comparison of the key financial results of the Company for the three months period ended September 30, 2025 with SPLY, is as follows:

During the period under review, finance costs recorded a decline of 13.48%, amounting to Rs. 1,215 million. This decrease was mainly attributable to the reduction in the policy rate to 11%, coupled with improved financial management and optimized utilization of available funding facilities.

FUTURE OUTLOOK

Pakistan's economy maintained its trajectory of stabilization and growth during the first two months of FY2026, with moderating inflation, strengthening large scale manufacturing, and contained fiscal imbalances despite the severe floods since July 2025. Fiscal consolidation continued, supported by stronger revenue mobilization and prudent expenditure management, resulting in a primary surplus, while exports, remittances, and an adequate level of foreign exchange reserves provided cushion to external sector.

The overall national export performance in Q1 of FY2026 was negative and the textile sector's share of national exports was around 63%. The widening trade deficit and concerns about rising energy costs and labor wages put pressure on competitiveness of textile sector compared to regional rivals. Despite the overall quarterly increase, monthly textile exports in September 2025 saw a slight year-on-year decrease. Sustained growth depends on structural reforms, such as aligning energy and labor costs with regional benchmarks, and a unified export strategy.

CPI inflation during Jul-Aug FY2026 stood at 3.5 percent as compared to 10.4 percent last year. The Monetary Policy Committee (MPC), in its meeting on 27 October 2025, kept the policy rate unchanged at 11 percent. While inflation remains moderate and high frequency indicators show improvement, the decision was reflected caution over the evolving outlook amid ongoing floods.

Despite the disruption caused by recent floods, economic activity has remained broadly stable. The rebound in large-scale manufacturing indicates strengthening industrial momentum in the months ahead. The external sector is expected to remain stable, with the current account deficit projected to stay manageable despite higher import demand. Pakistan's cotton production as of September 30, 2025 has increased by 49.26% year-on-year, with higher inflows from both Punjab and Sindh.

The management, being mindful of the challenges facing the textile sector, continues to refine its strategies and implement effective measures to address market dynamics, enhance operational efficiency, and sustain business growth. Going forward, we remain committed to improve our operations, to be more innovative, efficient and profitable to deliver sustainable returns to our shareholders.

THANKS AND APPRECIATION

We would like to place on record deep appreciation for the efforts of the executives, officers and other staff members and workers for their hard work, co-operation and sincerity to the Company in achieving the best possible results. The Board also wishes to place on record the appreciations to all banks, customers and suppliers for continued support to the Company with zeal and dedication. The Management is quite confident that these relations and co-operation will continue in the years to come.

On behalf of the Board of Directors On behalf of the Board of Directors

Sheikh Naseem Ahmad (Chairman)

Dated: October 29, 2025

Rehman Naseem (Chief Executive Officer)

2024 2025

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Three Months Ended Sep 30, 2025

t Fazal Cloth Mills Limited

+'*

Three Months Ended Sep 30, 2025

yt¿ Fazal Cloth Mills Limited

Fazal Cloth Mills Limited

Condensed Interim Financial Information (Un-audited)

30 September 2025

Condensed Interim Statement of Financial Position

As at 30 September 2025

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

Condensed Interim Statement of Profit or Loss (Un-Audited)

For the three months ended 30 September 2025

Profit after taxation

Earnings per share - basic and diluted

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

179,573,718 332,025,105

19 5.99 11.07

Condensed Interim Statement of Comprehensive Income (Un-Audited)

For the three months ended 30 September 2025

Three months ended

Condensed Interim Statement of Changes In Equity (Un-Audited)

For the three months ended 30 September 2025

Capital reserves

Revenue reserve

Three Months Ended Sep 30, 2025

profits

Capital reserves Revenue reserve

Share capital

Share premium

Capital redemption reserve

Fair value reserve - net of tax

Capital reserve against capacity expansion

Revaluation surplus on property, plant and

Sub - total

Un-appropriated profits

Total

equipment

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

Balance as at 30 June 2025 300,000,000 77,616,000 175,000,000 4,363,947,165 15,000,000,000 17,970,136,770 37,886,699,935 9,048,716,202 46,935,416,137

Total comprehensive income for the period :

Profit for three months ended 30 September 2025

Other comprehensive income

for three months ended 30 September 2025

- - - 1,814,858,033 - - 1,814,858,033 179,573,718 1,994,431,751

Surplus transferred to un-appropriated profit on account of incremental depreciation charged

during the period -net of tax - - - - - (132,103,980) (132,103,980) 132,103,980 -

Transfer from surplus on revaluation of fixed assets

on disposal -net of tax - - - - - - - - -

Balance as at 30 September 2025 300,000,000 77,616,000 175,000,000 6,178,805,198 15,000,000,000 17,838,032,790 39,569,453,988 9,360,393,900 48,929,847,888

Three Months Ended Sep 30, 2025

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

Condensed Interim Statement of Cash Flows (Un-Audited)

For the three months ended 30 September 2025

Three months ended 30 September 30 September

Loss allowance on interest income for the period 836,605 -Finance income (22,554,966) (6,171,766)

Finance cost 1,214,597,295 1,403,887,493

Cash generated from operations before working capital changes 2,179,467,687 2,721,153,084

Effect on cash flows due to working capital changes

(Increase) / decrease in current assets:

Stores, spares and loose tools Stock-in-trade

Trade debts

Loans and advances

Deposits, prepayments and other receivables

(1,314,731,611) (850,611,533)

Increase / (decrease) in current liabilities:

Notes to the Condensed Interim Financial Information (Un-audited)

For the three months ended 30 September 2025

1. Legal status and nature of business

   Fazal Cloth Mills Limited ("the Company") was incorporated in Pakistan in 1966 as a Public Limited Company under the Companies Act, 1913 (now the Companies Act, 2017). The shares of the Company are quoted on Pakistan Stock Exchange ('PSX'). The Company is principally engaged in manufacture and sale of yarn and fabric.

   Geographical location and addresses of major business unitsincluding mills / plant of the Company are as under:

   Lahore Purpose

   69/7, Abid Majeed Road, Survey No. 248/7 Cantt. Registered office

   Multan

   59/3, Abdali Road. Head office

   Qadirpur Rawan Bypass, Khanewal Road. Production plant

   Muzaffargarh

   Fazal Nagar, Jhang Road. Production plant

   13-KM, Mianwali Road, Khanpur Bagga Sher. Production plant

2. BASIS OF PREPARATION AND SIGNIFCANT ACCOUNTING POLICIES

   1. Statement of compliance

      1. These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicablein Pakistan for interimfinancial 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 International Accounting Standards Board ('IASB') as notified under the Companies Act, 2017 (the Act),

         • Provisions of and directives issued under the Act, and

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

           Where provisions of and directives issued under the Act, differ with the requirements of IAS 34, the provisions of and directives issued under the Act have been followed.

      2. These condensed interim financial statements does not include all the information and disclosures as required in an annual audited financial statements, and these should be read in conjunction with the Company's annual audited financial statements for the year ended June 30, 2025. These condensed interim financial statements are being submitted to the shareholders as required by the section 237 of the Companies Act, 2017.

   2. Accounting policies

      All the accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements are consistent with those applied in the preparation of audited annual financial statements for the year ended June 30, 2025.

3. ACCOUNTING ESTIMATES AND JUDGEMENTS

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

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied to the audited annual financial statements for the year ended June 30, 2025.

Capital work-in-progress 4.3 2,433,016,741 1,416,298,657

53,076,472,043 52,167,363,593

4.1 Opening net book value 50,716,603,453 51,701,058,121

Additions during the period / year:

12,062,987,471 10,248,129,438

Shares

Market value Market value per share

Percentage of holding

30 September

2025

30 June

2025

30 September

2025

30 June

2025

30 September

2025

30 June

2025

30 September

2025

30 June

2025

Note ------------------Number--------------------------------Rupees------------------------------------Rupees------------------

Shares

Carrying value

Percentage of holding

30 September

2025

30 June

2025

30 September

2025

30 June

2025

30 September

2025

30 June

2025

------------------Number----------------------------------Rupees------------------

(Un-audited) 30 September

(Audited) 30 June

1. Long term advance and mark up accrued

   Fatima Transmission Company Limited a- ssociate

   Pak Arab Energy Limited - associate

   2025 2025

   Note Rupees Rupees

   13,748,696	13,748,696
   25,904,160	25,904,160

   39,652,856 39,652,856

   Less: Loss allowance (39,652,856) (39,652,856)

   - -

2. Stock-in-trade

   Raw material [In-transit: Rs. 4,106.39 million

   (30 June 2025: Rs. 4,954.03 million)] 20,645,076,091 19,128,039,516

   Work-in-process 1,103,971,123 1,090,597,209

   9,666,575,640	11,464,519,087
   857,408,440	1,021,542,292
   1,004,064,346	956,847,495

   Finished goods [In-transit: Rs. 76.57 million (30 Jun 2025: Rs. 91.61 million)]

   Yarn Fabric Waste

3. Trade debts

   Export debtors - secured against letters of credit:

   11,528,048,426 13,442,908,874

   33,277,095,640 33,661,545,599

   Considered good 1,990,169,998 2,248,569,443

   Local debtors - unsecured

   1,563,232,513	1,478,389,088
   10,311,201,586	8,540,039,774
   44,665,120	44,665,120

   Related Parties - considered good 8.1

   Others - considered good Others - considered doubtful

   11,919,099,219 10,063,093,982

   Allowance for impairment of trade debts (44,665,120) (44,665,120)

   13,864,604,097 12,266,998,305

   1. Trade debts due from following related parties on account of trading activities.

      Ahmad Fine Textile Mills Limited 1,538,010,589 1,413,863,233

      Reliance Weaving Mills Limited 24,883,010 64,276,346

      Fatima Fertilizer Company Limited 338,914 249,509

      1,563,232,513 1,478,389,088

4. Short term investment

   Investment at fair value through profit or loss Fatima Fertilizer Company Limited - quoted

   6,120,000 (2023: 6,120,000) fully paid ordinary shares of Rs. 10 each

   Equity held 0.29% (30 June 2025: 0.29%) Market value per share Rs.128.22 (30 June 2025: Rs.99.41) 784,706,400 608,389,200

   784,706,400 608,389,200

5. Cash and bank balances

   Cash in hand 119,968,326 50,256,125

   130,239,520	265,104,287
   62,583,850	93,680,776

   Cash at banks

   • Current accounts

   • Saving accounts

   192,823,370 358,785,063

   Term deposit receipt 863,250,000 713,250,000

   1,176,041,696 1,122,291,188

   (Un-audited) 30 September

   (Audited) 30 June

   20

6. Long term financing - secured

   2025 2025

   Note Rupees Rupees

   Opening balance 14,432,252,534 14,650,855,677

   Loan obtained during the period / year 11.1 1,671,544,997 2,774,638,954

   Repayments made during the period / year (754,990,807) (2,993,242,097)

   Closing balance 15,348,806,724 14,432,252,534

   Less: current portion grouped under current liabilities 13 (3,219,592,814) (3,264,201,917)

   12,129,213,910 11,168,050,617

   1. - Markup bearing finances availed during the period:

      Lender Amount Rate of Mark Up

      Security

      Per Annum

      - - R u p e e s - -

      1st joint pari passu charge/ mortgage of Rs.1,294 million on all present and future fixed assets of the Company and personal guarantees of the sponsoring directors of the Company.

Askari Bank Limited

• Term finance

  1st joint pari passu charge/ mortgage of Rs.1,651 million over all present and future fixed assets of the Company and personal guarantees of the sponsoring directors of the Company.

Habib Bank Limited

• Term finance

  1st joint pari passu charge/ mortgage of Rs.323 million on all present and future fixed assets of the Company and personal guarantees of the sponsoring directors.

Pak Oman Investment Company Limited

• Term finance

  1st joint pari passu charge/ mortgage of Rs.627 million on all present and future fixed assets of the Company and personal guarantees of the sponsoring directors.

Pak Brunei Investment Company Limited

Three Months Ended Sep 30, 2025

• Term finance

  1st joint pari passu charge/ mortgage of Rs.677 million on all present and future fixed assets of the Company.

PAIR Investment Company Limited

• Term finance

  1st joint pari passu charge/ mortgage of Rs.1,920 million on all present and future fixed assets of the Company and personal guarantees of sponsoring directors of the Company.

MCB Bank Limited

• Term finance

  1st joint pari passu charge/ mortgage of Rs.6,285 million on all present and future fixed assets of the Company and personal guarantees of sponsoring directors of the Company.

Allied Bank Limited

• Term finance

1,671,544,997

(Un-audited) 30 September

(Audited) 30 June

1. Long term musharika -secured

   2025 2025

   21

   Note Rupees Rupees

   Opening balance		8,999,190,673	4,406,852,549
   Loan obtained during the period / year	12.1	2,258,415,000	5,489,548,859

   Repayments made during the period / year (100,000,000) (897,210,735)

   Closing balance 11,157,605,673 8,999,190,673

   Less: current portion grouped under current liabilities 13 (1,205,544,067) (1,043,044,067)

   9,952,061,606 7,956,146,606

   1. - Profit bearing finances availed during the period:

      Lender Amount Rate of Profit Per

      Security

      Annum

      - - R u p e e s - -

      1st joint pari passu charge/ mortgage of Rs.3,130 million over all present and future fixed assets of the Company and personal guarantees of the sponsoring directors of the Company.

Three Months Ended Sep 30, 2025

Askari Bank Limited

2,258,415,000

(Un-audited) 30 September

(Audited) 30 June

1. Current portion of non-current liabilities

   2025 2025

   Note Rupees Rupees

   Long term financing - secured 3,219,592,814 3,264,201,917

   Long term musharika - secured 1,205,544,067 1,043,044,067

   Current portion of lease liability 4,762,321 4,235,280

   4,429,899,202 4,311,481,264

2. Trade and other payables

   Trade creditors 1,762,901,926 883,302,869

   Accrued liabilities 1,458,472,488 1,716,247,361

   Due to associated undertakings 14.1 5,602 378,465,070

   Bills payable 2,894,993,024 3,117,084,261

   Tax deducted at source 68,363,309 29,571,730

   Infrastructure cess 2,923,334,210 2,778,901,401

   Workers' profit participation fund 56,925,246 45,837,853

   Workers' welfare fund 51,904,506 39,256,594

   Loan from Director 299,693 299,693

   Others 7,300,000 7,300,000

   9,224,500,004 8,996,266,832

   1. Due to associated undertakings

      Fatima Energy Limtied - 373,622,167

      Fazal Farm (Private) Limited - 4,842,903

      Fatima Fertilizer Company Limited 5,602

      5,602 378,465,070

3. Contingencies and commitments

   1. Contingencies

      1. There has been no change in the status of contingenciessince the annual audited financial statements as

         at 30 June 2025.
         15.2 Commitments	(Un-audited) 30 September 2025 Rupees	(Audited) 30 June 2025 Rupees
         15.2.1 Guarantees issued by various commercial banks, in respect of financial and operational obligations of the Company, to various institutions and corporate bodies.	4,065,715,954	3,915,715,954
         	(Un-audited) 30 September 2025 Rupees	(Audited) 30 June 2025 Rupees
         15.2.2 Commitments against irrevocable
         letters of credit:
         - capital expenditure	266,492,075	346,393,400
         - raw material and stores and spares	4,974,161,756	5,141,588,662
         	5,240,653,831	5,487,982,062
         15.2.3 Commitments against foreign bills discounting	2,142,934,335	410,563,243

         15.2.4 Commitments in respect of Fatima Energy limited (FEL):

         The Company through sponsors support agreement commits to lenders of FEL, in case of default by FEL, to pay amount outstanding up to Rs. 6,000 million (30 June 2024 : Rs. 6,000 million), This commitment was already approved by the shareholders under section 199 of the Companies Act, 2017 in annual general meeting dated 26 November 2020.

         15.2.5 Commitments in respect of Fatima Transmission Company Limited (FTCL):

         The Company through sponsors support agreement commits to MCB Bank Limited, in case of default by FTCL, to pay amount outstanding up to Rs 250 million (30 June 2024: Rs. 250 million). This commitment was already approved by the shareholders under section 199 of the Companies Act, 2017 in extra ordinary general meeting held on 25 March 2017.

         Three months ended

         (Un-audited) (Un-audited)

         30 September 30 September

4. Revenue from contracts with customers - net

   Gross sales Local sales Direct exports

   2025 2024

   22,636,492,348	24,049,030,495
   4,007,983,059	2,378,470,306
   1,560,138,825	1,788,959,922

   Note Rupees Rupees

   Indirect exports 16.1

   Sales tax

   Local sales Indirect export

   Sales return

   (3,432,479,845)	(3,714,400,730)
   (237,987,278)	(272,891,124)
   (3,670,467,123)	(3,987,291,854)
   (200,599,135)	(43,352,197)
   24,333,547,974	24,185,816,672

   28,204,614,232 28,216,460,723

   1. It includes sales made to direct exporters against Export facilitation Scheme (EFS) to a related party under S.R.O 957(1)/ 2021 dated 30 July 2021, amounting Rs. 1,560.14

million (30 September 2024: Rs. 1,788.96 million).

Three months ended

(Un-audited) (Un-audited)

Three months ended

(Un-audited) (Un-audited)

1. Financial risk management

   26

   The Company's activities exposes it to a variety of financial risks: market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

   There has been no changes in the risk management policiesduring the period, consequently these condensed interimfinancial statements do not include all the financialrisk management informationand disclosures required in annual financial statements.

2. Fair value measurement

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

   Underlying the definition of fair value is the presumption that the company is a going concern and there is no intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.

   A financial instrument is regarded as quoted in an active market if quoted price is readilyand regularlyavailable from an exchange dealer, broker, industry group, pricingservice, or regulatoryagency, and that price represents actual and regularly occurring market transactions on an arm's length basis.

   IFRS 13 'Fair Value Measurement' requires the company to classify fair value measurements and fair value hierarchy that reflects the significance of the inputsused in making the measurements of fair value hierarchy has the following levels:

   Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

   Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3 - Inputs for the asset or liability that are not based on observable market data (i.e. unobservable) inputs.

   Transfer between levels of the fair value hierarchy are recognised at the end of the reporting period during which the changes have occurred.

   The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

   Carrying amount Fair value

   Financial assets at amortised cost

   Fair value through Profit or loss

   Fair value through OCI

   Other financial liabilities

   Total Level 1 Level 2 Level 3 Total

   As at 30 September 2025

   Three Months Ended Sep 30, 2025

   Financial assets - measured at fair value

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

   Short term investment	-	784,706,400	-	-	784,706,400		784,706,400	- -	784,706,400
   Long term investments	-	40,000,000	12,022,987,471	-	12,062,987,471		8,117,094,655	- 3,945,892,816	12,062,987,471
   Financial assets - measured at amortized cost
   Long term deposits	25,733,193	-	-	-	25,733,193		-	- -	-
   Trade debts	13,864,604,097	-	-	-	13,864,604,097		-	- -	-
   Deposits and other receivables	443,413,999	-	-	-	443,413,999		-	- -	-
   Mark-up accrued	39,402,192	-	-	-	39,402,192		-	- -	-
   Cash and bank balances	1,176,041,696	-	-	-	1,176,041,696		-	- -	-
   	15,549,195,177	824,706,400	12,022,987,471	-	28,396,889,048		8,901,801,055	- 3,945,892,816	12,847,693,871
   Financial liabilities - measured at amortized cost
   Long term financing -secured	-	-	-	15,348,806,724	15,348,806,724		-	- -	-
   Long term musharika -secured	-	-	-	11,157,605,673	11,157,605,673		-	- -	-
   Trade and other payables	-	-	-	6,123,972,733	6,123,972,733		-	- -	-
   Unclaimed dividend	-	-	-	21,977,192	21,977,192		-	- -	-
   Short term borrowings -secured	-	-	-	21,729,995,875	21,729,995,875		-	- -	-
   Accrued mark-up	-	-	-	813,081,814	813,081,814		-	- -	-
   	-	-	-	55,195,440,011	55,195,440,011		-	- -	-

   
   
   27

   Carrying amount Fair value

   Financial assets at amortised

   Fair value through Profit

   Fair value through OCI

   Other financial liabilities

   Total Level 1 Level 2 Level 3 Total

   As at 30 June 2025

   Three Months Ended Sep 30, 2025

   Financial assets - measured at fair value

   cost or loss

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

   Short term investment	-	608,389,200	-	-	608,389,200	608,389,200		-	-	608,389,200
   Long term investments	-	40,000,000	10,208,129,438	-	10,248,129,438	6,302,236,622		-	3,945,892,816	10,248,129,438
   Financial assets - measured at amortized cost
   Long term deposits	25,733,193	-	-	-	25,733,193	-		-	-	-
   Trade debts	12,266,998,305	-	-	-	12,266,998,305	-		-	-	-
   Deposits and other receivables	642,810,677	-	-	-	642,810,677	-		-	-	-
   Mark-up accrued	19,085,522	-	-	-	19,085,522	-		-	-	-
   Cash and bank balances	1,122,291,188	-	-	-	1,122,291,188	-		-	-	-
   	14,076,918,885	648,389,200	10,208,129,438	-	24,933,437,523	6,910,625,822		-	3,945,892,816	10,856,518,638
   Financial liabilities - measured at amortized cost
   Long term financing -secured	-	-	-	14,432,252,534	14,432,252,534	-	-		-	-
   Long term musharika -secured	-	-	-	8,999,190,673	8,999,190,673	-	-		-	-
   Trade and other payables	-	-	-	6,102,699,254	6,102,699,254	-	-		-	-
   Unclaimed dividend	-	-	-	21,977,192	21,977,192	-	-		-	-
   Short term borrowings -secured	-	-	-	23,537,764,673	23,537,764,673	-	-		-	-
   Accrued mark-up	-	-	-	882,273,218	882,273,218	-	-		-	-
   	-	-	-	53,976,157,544	53,976,157,544	-	-		-	-

   
   
   28

3. Segment reporting

   1. Reportable segments

      The management has determined the operating segments of the Company on the basis of products produced. The Company's reportable segments are as follows:

      • Spinning segment - production of different qualities of yarn using natural and artificial fibers

      • Weaving segment - production of different qualities of fabric using yarn

      Information regarding the Company's reportable segments is presented below. Performance is measured based on segment profit before tax, as management believes that such informationis the most relevant in evaluatingthe results of certain segments relative to other companies that operate within

   2. Information about reportable segments

      Spinning Weaving Total

      (Un-audited) (Un-audited) (Un-audited) (Un-audited) (Un-audited) (Un-audited)

      30 September

      2025

      30 September

      2024

      30 September

      2025

      30 September

      2024

      30 September

      2025

      30 September

      2024

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

      External revenues 21,285,878,854 20,639,724,419 3,047,669,120 3,546,092,253 24,333,547,974 24,185,816,672

      Intersegment revenues	1,566,076,386	2,653,127,505	5,141,150	7,907,650	1,571,217,536	2,661,035,155
      Cost of sales	(21,372,172,059)	(21,245,709,264)	(1,176,295,416)	(663,591,958)	(22,548,467,475)	(21,909,301,222)
      Intersegment cost of sales	(5,141,150)	(7,907,650)	(1,566,076,386)	(2,653,127,505)	(1,571,217,536)	(2,661,035,155)
      Selling and distribution expense	(57,967,268)	(95,308,591)	(23,533,323)	(28,249,549)	(81,500,591)	(123,558,140)
      Administrative expenses	(223,295,509)	(201,484,121)	(22,935,373)	(23,731,052)	(246,230,882)	(225,215,173)
      Other expense	(88,193,093)	(26,762,585)	-	-	(88,193,093)	(26,762,585)
      Other income	450,746,849	260,325,494	3,354,804	4,248,730	454,101,653	264,574,224

      Three Months Ended Sep 30, 2025

      Finance cost (1,130,833,065) (1,245,571,487) (83,764,230) (158,316,006) (1,214,597,295) (1,403,887,493)

      Profit before taxation 425,099,945 730,433,720 183,560,346 31,232,563 608,660,291 761,666,283

      1. The accounting policiesof the reportable segments are the same as those described in the annual financial statements for the preceding year ended 30 June 2025.

+'*

Three Months Ended Sep 30, 2025

yt¿ Fazal Cloth Mills Limited