Frontier Ceramics LimitedPSX: FRCL

Transmission of Quarterly Report for the Period Ended March 31, 2026

· Issued by Frontier Ceramics Limited
‌FRONTIER CERAMICS LIMITED

Financial Statements

For the Third Quarter & Nine Months Period Ended March 31, 2026

(UN-AUDITED)

‌CONTENTS

VISION & MISSION STATEMENT COMPANY INFORMATION DIRECTORS' REPORT

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS CONDENSED INTERIM STATEMENT COMPREHENSIVE INCOME CONDENSED INTERIM STATEMENT CASH FLOW

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENT

‌VISION AND MISSION STATEMENT

VISION STATEMENT

To become industry leader by instilling ethical and moral values, honest practices according to the Principles of Islam, offering the best innovative, competitive and quality products, ensuring direct benefit for all stake holders.

MISSION STATEMENT
  • Deliver un-parallel value to customers by continuous striving and to exceed their expectations;

  • Under the guiding principles of Islam, to inculcate the culture of honest practices, ethical and moral values in our employees;

  • Special emphasis on workforce, health, safety, environment. Constant motivation of employees by fair benevolence;

  • To ensure reasonable growth and profits of the Group, to the shareholders on their investment; and

  • The Group will assert efforts towards the social development of society and be instrumental in the industrial growth of Pakistan.

‌COMPANY INFORMATION

BOARD OF DIRECTORS

Ms. Shabina Anjum Independent Director & Chairperson Mr. Omer Khalid Non-Executive Director

Mr. Javid Khalid Non-Executive Director

Mr. Zia Khalid Executive Director Ms. Numrah Khalid Executive Director Mr. Muhammad Riaz Khan Independent Director

Mr. M.Nehmatullah Toor Non-Executive Director

Audit Committee

Mr. Muhammad Riaz Khan Chairman Mr. Omer Khalid Member

Mr. Javid Khalid Member

Human Resource & Remuneration Committee

Ms. Shabina Anjum Chairperson

Ms. Numrah Khalid Member

Mr. Javid Khalid Member

Chief Executive Officer Mr. Nadeem Khalid Chief Financial Officer

Khawaja Mushtaq Ahmed FCA,ACIS khawaja.mushtaq@forte.com.pk

Company Secretary

Mr. Rehman Khan Sherwani

rehman.khan@forte.com.pk

Head of Internal Audit

Mr. Wasif Naeem wasif.naeem@forte.com.pk

Bankers Conventional Banks

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

Habib Metropolitan Bank Limited MCB Bank Limited

Silk Bank Limited Meezan Bank Limited United Bank Limited Habib Bank Limited

Islamic Banks

Bank Al Habib Islamic Limited Bank Alfalah Islamic Limited Silk Emaan Islamic Bank Limited UBL Ameen Limited

First Habib Islamic Income Fund Alfalah Asset Management Limited

Auditors

M/S BDO Ebrahim & Co Chartered Accountants 4th Floor, Saeed Plaza, 22 East, Jinnah Avenue, Blue Area, Islamabad.

Legal Advisor

Mr. Ishtiaq Ahmed

Advocate & Legal Consultant

Flat No. 42, Block C, 2nd Floor, Cantonment Plaza, Saddar Road, Peshawar Cantt.

Registrar and Share Transfer Office

Central Depository Company of Pakistan Ltd CDC House, 99-B, Block B, S.M.C.H.S,

Main Sharah-e-Faisal, Karachi. Ph: 021-111-111-500

Head Office/Registered Office

29-Industrial Estate, Jamrud Road, Peshawar Ph: 091-5891470-79, Fax: 091-5830290.

Website

https://www.forte.com.pk or scan QR code



‌FRONTIER CERAMICS LIMITED DIRECTORS' REPORT TO THE SHAREHOLDERS

FOR THE THIRD QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2026

The Directors of your Company are pleased to present the financial statements for the third quarter and nine months ended March 31, 2026.

ECONOMIC AND INDUSTRY OVERVIEW

During the period under review, the construction and housing sector remained under pressure due to high financing costs, subdued consumer demand, and reduced development activity. These factors adversely impacted the demand for building materials, including tiles & ceramics, resulting in lower industry volumes.

BUSINESS CHALLENGES AND FINANCIAL PERFORMANCE

Notwithstanding the challenging operating environment, the Company demonstrated resilience and delivered a strong financial performance during the period under review. Through proactive management actions, the Company was able to not only sustain operations but also significantly enhance profitability.

Management implemented several measures including timely price revisions, improvement in overall product mix and optimization of energy consumption through beneficial energy mix.

The financial performance for the period ended March 31, 2026 is summarized below:

Mar 31,2026 Mar 31,2025

(Rupees in Millions)

Turnover - net

3,593.69

3,258.54

Gross profit

296.90

207.89

Operating Profit

222.82

139.74

Profit before taxation

258.06

122.15

Profit after taxation

185.68

82.09

Earnings per share (Rs.)

4.90

2.17

During the period, net turnover increased by 10.29% due to increase in volume, Hence, your Company ended up at a bottom-line after-tax profit of Rs.185.68 million as compared to corresponding period of Rs. 82.09 million

OPERATIONAL REVIEW

The industry continues to face challenges due to widespread sales tax evasion in the informal sector, which has led to unfair pricing and pressure on margins for compliant manufacturers. To address this issue, the government has introduced stricter monitoring measures, including camera-based tracking of production, aimed at reducing under-reporting and improving tax compliance. Consistent and effective implementation of these measures across all manufacturers will help create a more level and competitive playing field within the industry.

The Company continued to focus on improving its product mix, enhancing manufacturing efficiencies, and strengthening distribution channels. Various initiatives were undertaken to rationalize costs, optimize energy consumption, and improve supply chain efficiency. However, the overall market slowdown limited the impact of these measures during the period.

FUTURE OUTLOOK

The Company remains cautiously optimistic regarding the outlook for the coming quarters. Demand recovery is expected to be gradual and largely dependent on macroeconomic stability, easing of interest rates, and revival of construction activity.

Management will continue to focus on:

  • Enhancing operational efficiencies and cost optimization

  • Strengthening brand positioning and market share

  • Expanding value-added product offerings

  • Maintaining financial discipline and liquidity management

These strategic priorities are aimed at sustaining profitability and positioning the Company to capitalize on future growth opportunities.

ACKNOWLEDGEMENT

The Directors would like to express their gratitude to shareholders. customers. business partners, financial institutions, and employees for their continued support and commitment to the Company.

The Directors also encourage shareholders to review the Directors' Report for the year ended June 30, 2025, which provides a comprehensive overview of the Company's long-term strategy and operations.



On behalf of the Board of Directors

Nadeem Khalid

Numrah Khalid

Chief Executive Officer Director

Peshawar:

Dated: April 30, 2026

















‌2026 t31 2025 t3 1

3,593 69

3,258.54



296 90

207.89



222.82

139.74



258.06

122.15



185.68

82.09



4.90

2. 17



























































‌FRONTIER CERAMICS LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED) AS AT MARCH 31, 2026

March 31, June 30,

2026 2025

Rupees Rupees

Note Un-audited Audited

ASSETS

NON CURRENT ASSETS

Property, plant and equipment

Operating fixed assets 7 2,288,114,498 2,431,024,130

Investment property 8 471,375 489,741

2,288,585,873

2,431,513,871

Long term deposits

5,925,450

5,925,450

Long term advances 9 550,880,130 550,880,130

CURRENT ASSETS

2,845,391,453

2,988,319,451

Stores, spares and loose tools

10

195,751,559

233,692,687

Stock in trade

11

553,855,518

561,169,457

Trade debts

21,829,614

21,829,614

Due from related parties

12

992,519,434

236,469,796

Advances

13

74,638,222

71,010,671

Tax refunds due from Government

90,964,332

111,861,137

Taxation - net

14

-

-

Cash and bank balances

15

171,169,603

64,658,609

2,100,728,282 1,300,691,971

TOTAL ASSETS 4,946,119,735 4,289,011,422

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Share capital

18

378,738,210

378,738,210

Discount on issue of right shares

19

(180,795,726)

(180,795,726)

197,942,484

197,942,484

Revaluation surplus on property, plant and equipmen

1,201,961,278

1,201,961,278

Unappropriated profit

708,302,467

522,622,187

2,108,206,229

1,922,525,949

NON CURRENT LIABILITIES

Loan from related parties

20

36,164,472

118,740,891

Deferred liability

21

25,393,458

25,393,458

Deferred taxation

322,900,672

352,926,346

CURRENT LIABILITIES

384,458,602

497,060,695

Unclaimed dividend

3,189,224

3,189,224

Gas infrastructure development cess (GIDC)

22

240,522,165

129,395,113

Due to related parties

23

3,109,222

1,891,360

Contract liability

24

1,000,465,718

744,354,190

Trade and other payables

25

1,206,168,574

990,594,891

2,453,454,903

1,869,424,778

TOTAL EQUITY AND LIABILITIES

4,946,119,735

4,289,011,422

CONTINGENCIES AND COMMITMENTS

26



The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements



CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR

FRONTIER CERAMICS LIMITED

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

FOR THE THIRD QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2026

Quarter Ended March 31,

Nine Months Ended March 31,

2026

2025

2026

2025

Sales - net

3,593,693,416

3,258,536,494

………..Rupees………

1,178,674,832

1,189,514,297

Cost of sales

(3,296,795,306)

(3,050,649,113)

(1,061,318,852)

(1,092,082,204)

Gross Profit

296,898,110

207,887,381

117,355,980

97,432,093

Distribution cost

(11,788,223)

(11,015,717)

(3,996,682)

(3,618,483)

Administrative expenses

(37,963,234)

(33,416,613)

(12,466,853)

(10,993,895)

Other operating expenses

(24,331,322)

(23,719,617)

(9,915,375)

(12,026,758)

Operating profit

222,815,331

139,735,434

90,977,070

70,792,957

Finance cost

(23,084,986)

(22,243,981)

(7,818,062)

(850,800)

Other operating income

58,334,378

4,662,532

28,409,877

1,808,282

Profit before taxation

Taxation:

258,064,723

122,153,985

111,568,885

71,750,439

-current

(104,337,446)

(62,047,298)

(36,923,136)

(25,576,483)

-Prior

1,927,329

-

-

-

-deferred

30,025,674

21,983,818

14,888,486

(6,775,991)

Profit after taxation

185,680,280

82,090,505

89,534,234

39,397,965

Earnings per share - basic and diluted

4.90

2.17

2.36

1.04

The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.



CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR

FRONTIER CERAMICS LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE THIRD QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2026

Nine Months Ended

March 31,

Quarter Ended

March 31,

2026

2025

2026

2025

………..Rupees………

Profit after taxation 185,680,280 82,090,505 89,534,234 39,397,965 Other comprehensive income for the Period - - - -Total comprehensive income for the Period 185,680,280 82,090,505 89,534,234 39,397,965

The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.



CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR

FRONTIER CERAMICS LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2026 (UN-AUDITED)

Issued, subscribed and paid up capital

Discount Issue of Right Shares

Revaluation

surplus on property, plant and equipment

Unappropraited Profit

Total

………..Rupees………

Balance as at July 01, 2024 - (Audited)

378,738,210

(180,795,726)

1,161,971,530

242,169,885

1,602,083,899

Impact of ratification of error

comprehensive Income for the period ended March 31, 2025

Transfer from surplus on revaluation of fixed assets incremental depreciation - net of deferred tax

-

-

82,090,505

-

82,090,505

-

Balance as at March 31, 2025

378,738,210

(180,795,726)

1,161,971,530

324,260,390

1,684,174,404

Balance as at July 01, 2025 - (Audited)

378,738,210

(180,795,726)

1,201,961,278

522,622,187

1,922,525,949

comprehensive Income for the Period eneded Mar 31, 2026

Transfer from surplus on revaluation of fixed assets incremental depreciation - net of deferred tax

-

185,680,280

-

185,680,280

-

Balance as at March 31, 2026

378,738,210

(180,795,726)

1,201,961,278

708,302,467

2,108,206,229



The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.



CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR

FRONTIER CERAMICS LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2026 (UN-AUDITED)

Rupees

31-Mar-26 31-Mar-25

Un-Audited Un-Audited

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 258,064,723 122,153,985 Adjustment for:

Depreciation 142,927,998 160,522,428

Finance Cost 23,084,986 22,243,981 Profit before working capital changes 424,077,707 304,920,393

Changes in working capital:

Decrease / ( increase) in current assets

Stores, spares and loose tools

37,941,128

23,139,482

Stock in trade

7,313,939

(14,454,306)

Trade debts

-

369,614

Other receivables

-

(1,088,640)

Short Term Lending

(756,049,638)

(4,236,538)

Advances

Increase / (decrease) in current liabilities Trade and other payables

(3,627,551)

215,573,683

(3,800,758)

180,289,308

Contract liability

256,111,528

140,696,954

Due to related parties

1,217,862

(36,056,741)

Current portion of liability against assets subject to finance

-

(8,597,683)

Current portion of long term financing

-

(13,097,821)

Current portion of GIDC payable

111,127,052

15,634

(130,391,996)

263,178,505

Cash generated from operations

293,685,710

568,098,898

Taxes paid

(81,513,311)

(68,246,196)

Finance Cost Paid

(23,084,986)

(22,243,981)

Net cash generated / (Used in) from operating activities

189,087,413

477,608,722

CASH FLOWS FROM INVESTING ACTIVITIES

Increase in long term advances

-

114,456

Advance for Land Purchase

-

(27,300,000)

Deferred liability

-

22,485,559

Net cash used in investing activities

-

(4,699,985)

CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing - net

(82,576,419)

(426,429,443)

Net cash used in financing activities

(82,576,419)

(426,429,443)

Net (decrease) / increase in cash and cash equivalents

106,510,994

46,479,294

Cash and cash equivalents at the beginning of the period

64,658,609

73,148,026

Cash and cash equivalents at the end of the period

171,169,603

119,627,319



The annexed notes from 1 to 29 form an integral part of these condensed interim financial statements.



CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR

FRONTIER CERAMICS LIMITED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) AS AT MARCH 31, 2026
  1. STATUS AND NATURE OF BUSINESS

    Frontier Ceramics Limited (the Company) was incorporated in July 1982 as a Public Limited Company with its shares quoted on Pakistan Stock Exchange Limited (formerly Karachi Stock Exchange Limited in which Lahore and Islamabad Stock Exchanges have merged). The principal activities of the Company are manufacturing of ceramic tiles, sanitary wares and related ceramic products.

    The registered office and manufacturing unit of the Company is situated at 29-Industrial Estate, Jamrud Road, Peshawar Pakistan.

  2. BASIS OF PREPARATION
    1. Statement of compliance

      These condensed interim financial statements are unaudited and being submitted to the shareholders as required under section 237 of the Companies Act, 2017.

      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 (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

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

        Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

        These condensed interim financial statements do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the annual financial statements of the Company as at and for the year ended June 30, 2025, which have been prepared in accordance with approved accounting standards as applicable in Pakistan. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last declared financial statements.

    2. Basis of measurement

      This condensed interim financial information has been prepared under the historical cost convention except for certain fixed assets which have been stated at revalued amount. This condensed interim financial information has been prepared following accrual basis of accounting except for cash flow information.

    3. Functional and presentation currency

      This condensed interim financial information has been presented in Pak Rupees, which is the functional and presentation currency of the Company.

  3. MATERIAL ACCOUNTING POLICY INFORMATION

    The accounting policies, significant judgements made in the application of accounting policies, key sources of estimations and methods of computation adopted in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the financial statements for the year ended June 30, 2025.

  4. CHANGES IN ACCOUNTING STANDARDS, INTERPRETATIONS AND PRONOUNCEMENTS
    1. Amendments to published accounting and reporting standards which became effective during the period:

      There were certain amendments to accounting and reporting standards which became mandatory for the Company during the period. However, the amendments did not have any significant impact on the financial reporting of the Company and, therefore, have not been disclosed in these condensed interim financial statements.

    2. Amendments to published accounting and reporting standards that are not yet effective and have not been early adopted by the Company:

    There are certain amendments to the accounting and reporting standards that will be mandatory for the Company's accounting period beginning on or after January 01, 2025, but are considered not to be relevant or to have any significant effect on the Company's operations and are, therefore, not detailed in these condensed interim financial statements.

  5. TAXATION

    The provision for taxation for the Nine Months and quarter ended March 31, 2026 has been made using the estimated effective tax rate applicable to expected total annual earnings.

  6. KEY JUDGEMENTS AND ESTIMATES

    The preparation of interim financial statements require management to make judgments, 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. The significant judgments made by management in applying the Company's accounting policies and key sources of estimation of uncertainty are the same as those that were applied to the financial statements for the year ended June 30, 2025, otherwise disclosed.

  7. PROPERTY, PLANT AND EQUIPMENT March 31, June 30, 2026 2025 Rupees Rupees (Unaudited) (Audited)

    Opening written down value 2,431,024,130 2,645,028,257

    Add:

    Additions - -

    Revaluation - -2,431,024,130 2,645,028,257

    Less:

    Depreciation charge (142,909,632) (214,004,127)

    Closing written down value 2,288,114,498 2,431,024,130

  8. INVESTMENT PROPERTY March 31, June 30, 2026 2025 Rupees Rupees (Unaudited) (Audited)

    Opening written down value 489,741 515,517 Additions - -

    Depreciation charge (18,366) (25,776) Closing written down value 471,375 489,741

    Depreciation rate 5% 5%
    1. This represents two offices having number 102 and 103 measuring 1200 Sqft each, situated at 1st floor, Kashif center, Shahrah e Faisal, Karachi owned by the Company. This has been held to earn rental income by letting out its office and disclosed in the financial statements as an investment property applying cost model in accordance with IAS 40 "Investment Property". Fair value of the investment property assessed by the management amounts to Rs. 7 million (June 2025: Rs. 7 million) at period end.

  9. LONG TERM ADVANCES March 31, June 30, 2026 2025 Rupees Rupees Note (Unaudited) (Audited)

    Advance against land 9.1 550,836,594 550,836,594

    Others

    43,536 43,536

    550,880,130 550,880,130

    1. The Board of Directors of the Company in their meeting held on January 07, 2021 decided in principal to avail the opportunity of initially acquiring 1,031 kanals of land, off CPEC highway & Jand-Mianwali Road, Mouza Masan, Tehsil and District Mianwali, from a related party Mr. Nadeem Khalid (Chief Executive Officer) at payment terms over the period of five years. During the year, the Company reassessed its future expansion plans and determined that the market is already saturated, making it unfeasible to expand operations by setting up a new business unit and land purchase agreement should be withdrawn with the approval of the Board. Subsequent to year end, the Board approved the withdrawal of the said agreement and Rs. 200 million will be paid by the counterparty by May 2026, while the remaining payment will be paid after June 30, 2026 with mutual agreement between the parties.

  10. STORES, SPARE PARTS AND LOOSE TOOLS March 31, June 30, 2026 2025 Rupees Rupees Note (Unaudited) (Audited)

    Stores 190,060,627 232,676,267

    Spare parts and loose tools 5,690,932 1,016,420

    1. 195,751,559 233,692,687

      10.1 Stores, spare parts and loose tools includes items which may result in capital expenditure but are not distinguishable at the time of purchase. However, the stores and spares consumption resulting in capital expenditure are capitalized in cost of respective assets.

  11. STOCK IN TRADE
March 31, June 30, 2026 2025 Rupees Rupees (Unaudited) (Audited)

Raw materials 371,463,973 175,622,674

Work in process 27,416,682 60,627,122

Finished goods 154,974,863 324,919,661

553,855,518 561,169,457

March 31,

June 30,

2026

2025

Rupees

Rupees

Note

(Unaudited)

(Audited)

12

DUE FROM RELATED PARTIES

Khalid and Khalid Holdings (Private) Limited

Balance at start of the period / year

36,469,796

(3,445,876)

Payments made during the period / year

806,827,549

145,127,502

Mark up

50,272,089

2,422,964

Amount received during the period / year

(101,050,000)

(107,634,794)

Balance at end of the period / year

12.1

792,519,434

36,469,796

Current portion of long term advances

9

200,000,000

200,000,000

992,519,434

236,469,796

12.1 This represents amount advanced to the related parties due to common directorship. The advance is unsecured and interest is charged at Kibor + 3.25% per anumm.

March 31,

June 30,

13

ADVANCES AND DEPOSITS

2026

Rupees (Unaudited)

2025

Rupees (Audited)

Advances to / against:

- suppliers

3,668,885

3,668,885

- letter of credit

4,610,386

17,218,727

- letter of credit margin

21,277,038

12,071,696

- letter of guarantee

33,622,762

31,904,062

- salaries

3,745,799

4,971,004

- expenses

78,265 73,051

67,003,136

69,907,425

Security deposit

1,103,246

1,103,246

Rent receiveable 6,531,840 -

74,638,222 71,010,671

March 31,

June 30,

2026

2025

Rupees

Rupees

Note

14 TAXATION - NET

(Unaudited)

(Audited)

Balance at start of the period / year - 28,490,906 Prior year adjustment - (11,362,058)

- 17,128,848

Transferred to tax refunds due from government

20,896,805 51,089,128 20,896,805 68,217,976

Taxation / levy (102,410,117) (157,710,095)

Advance income tax 81,513,312 89,492,119

Balance at end of the period / year - -

  1. CASH AND BANK BALANCES

    Cash in hand 138,493 112,750

    Cash at bank - local currency Current accounts

    - conventional 108,451,443 31,828,070

    • under shariah arrangements 2,168,651 2,265,271

      - PD account 15.1 9,235 -Saving account

    • under shariah arrangements 60,401,781 30,452,517

    171,169,603 64,658,609

    1. It represents personal deposit custom account used for the payments of duty and taxes on imports.

16 SHARIAH DISCLOSURES UNDER CLAUSE VII OF PART I OF SCHEDULE IV OF THE COMPANIES ACT, 2017

As per the requirements of the fourth schedule to the Act, Shariah compliant companies and companies listed on the Islamic Index

shall disclose the following:

March 31,

June 30,

2026

2025

Rupees

Rupees

Un-audited

Audited

FINANCING STRUCTURE / MODE

Conventional mode:

Assets

Due from related parties

992,519,434

236,469,796

Bank Balances

108,451,443

31,828,070

1,100,970,877

268,297,866

Liabilities

Loan from related parties

36,164,472

118,740,891

Shariah compliant mode:

Assets

Short-term lending

-

-

Bank Balances

62,570,431

32,717,788

62,570,431

32,717,788

Liabilities

Loan/advances obtained as per Islamic mode:

Loans

-

-

Contract liabilities

1,000,465,718

744,354,190

Trade and other payables

1,206,168,574

990,594,891

March 31,2026

Un-audited

Conventional

Shariah

Compliant

Total

March 31,2025

Un-audited

Conventional

Shariah

Compliant

Total

….....(Rupees)…..

….....(Rupees)…..

17 Statement of Profit or Loss

Sales - net

-

3,593,693,416

3,593,693,416

-

3,258,536,494

3,258,536,494

Other income

Profit earned from conventional loan - Short term lending

50,272,089

-

50,272,089

1,184,641

-

1,184,641

Rental Income

-

2,903,040

2,903,040

-

1,088,640

1,088,640

Reversal of provision for doubtful debts

-

3,628,800

3,628,800

-

-

-

Profit earned from shariah compliant bank deposit

-

-

-

-

-

-

Exchange gain earned

-

1,530,449

1,530,449

-

-

-

Others

-

-

-

-

2,389,251

2,389,251

Gain/loss or dividend earned from shariah compliant investments

-

-

-

-

-

-

Finance costs

23,084,986

-

23,084,986

20,798,288

1,445,692

22,243,981

Markup paid on Islamic mode of financing - Ijarah

- 85,128 85,128

-

4,611,353

4,611,353

73,357,075 3,601,840,833 3,675,197,908 21,982,929 3,268,071,430 3,290,054,360

Relationship with shariah compliant banks:

Name Relationship

Bank Al Habib Islamic Limited Bank balance and financing

Bank Alfalah Islamic Limited Bank balance

Silk Emaan Islamic Bank Limited Bank balance

Faysal Bank Limited Bank balance

Meezan Bank Limited Bank balance

UBL Ameen Limited Bank balance

18 SHARE CAPITAL

March 31,

2026

June 30,

2025

18.1 Authorized share capital

Rupees (Unaudited)

Rupees (Audited)

Number of shares Mar 31, 2026

75,000,000

June 30, 2025

75,000,000

Ordinary shares of Rs. 10 each

750,000,000 750,000,000

18.2

Issued, subscribed and paid up capital

March 31,

June 30,

2026

2025

Number of shares

Rupees

Rupees

Mar 31, 2026 June 30, 2025

(Unaudited)

(Audited)

Ordinary shares of Rs. 10 each fully paid in

37,873,821

37,873,821

cash

378,738,210 378,738,210

18.3 All ordinary share holders have same rights regarding dividend, voting, board selection, right of first refusal and block voting.

19 DISCOUNT ON ISSUE OF RIGHT SHARES

This represents discount on issue of right shares upon exercising the option given to members in Board of Directors meeting held on February 18, 2014 to subscribe for the right shares issue which has allotted on August 08, 2014 at a discount of Rs. 6 per share with the entitlement of 389.25% shares against SECP approval vide letter No. EMD/233/584/02 dated February 07, 2014 for the total right issue of 30.133 million shares at Rs. 4 per share (discount of Rs. 6 per share) by way of right issue. All the relevant legal formalities were completed by the Company before issuance of the right shares.

March 31,

June 30,

2026

2025

Note

Rupees (Unaudited)

Rupees (Audited)

20

LOAN FROM RELATED PARTIES

From associated person - unsecured

- Chief Executive Officer

Opening balance

104,245,797

106,619,974

Additions during the period

12,060,000

1,800,000

Markup

3,768

309,823

Payments made during the period

(98,625,087)

(4,484,000)

Closing balance

20.1

17,684,478

104,245,797

From associated companies - unsecured

- Rawal Industrial Equipment (Private) Limited

Opening balance

5,651,834

253,556,959

Additions during the period

-

14,072,182

Markup

783,718

1,806,873

Payments made during the period

(160,000)

(263,784,180)

Closing balance

20.2

6,275,552

5,651,834

March 31,

June 30,

2026

2025

Note

Rupees

(Unaudited)

Rupees

(Audited)

- Toyota Rawal Motors (Private) Limited

Opening balance

8,843,260

173,085,943

Additions during the period

41,200,000

149,088,969

Markup

883,642

6,070,796

Payments made during the period

(38,722,460)

(319,402,448)

Closing balance

20.2

12,204,442

8,843,260

36,164,472 118,740,891

  1. This represents interest bearing unsecured loan and accumulated markup thereon received from Chief Executive of the Company for working capital requirements. The loan carries mark up at the rate at KIBOR plus 2 % per annum. The loan was restructured on June 30, 2021. As per the revised terms, the Company is accruing interest over the loan amount while interest is payable after the final payment of principal amount.

  2. This represents interest bearing unsecured loans and accumulated markup thereon received from related parties, Rawal Industrial Equipment (Private) Limited and Toyota Rawal Motors (Private) Limited for working capital of the Company and acquisition of the equipment. The loan was restructured on June 30, 2021. It carries mark up at the rate at KIBOR plus 2 % per annum. As per the revised terms, the Company is accruing interest over the loan amount while interest is payable after the final payment of principal amount.

  1. DEFERRED LIABILITY March 31, June 30, 2026 2025 Rupees Rupees Note (Unaudited) (Audited)

    Staff retirement benefits - gratuity

    25,393,458 25,393,458

    25,393,458 25,393,458

  2. GAS INFRASTRUTURE DEVELOPMENT CESS

    Accumulated present value of GIDC

    240,522,165 129,395,113

    Less: current portion of GIDC (240,522,165) (129,395,113)

    1. - -

22.1 In 2011, GIDC was imposed on natural gas consumers including companies with effect from January 01, 2012 to finance the cost of laying the overland gas pipeline. In 2013, the Peshawar High Court declared the GIDC Act, 2011 as ultra vires the constitution and struck down the GIDC Act, 2011. In August 2014, Supreme Court of Pakistan dismissed the appeal filed by the Federal Government of Pakistan deciding that GIDC is a fee and not a tax and could not be imposed by money bill. In September 2014, the GIDC Ordinance was promulgated by the President of Pakistan with retrospective effect with original imposition. In October 2016, the Sindh High Court declared the levy to be un-constitutional. In August 2020, the Honourable Supreme Court of Pakistan held that GIDC is validly levied and allowed the Government to collect the amount in 24 equal instalments. Further, in November 2020, the Supreme Court dismissed the review petition seeking review of its order (issued in August 2020). Supreme Court in its judgement on the review petitions noted that Government is agreeing to recover the arrears for GIDC in 48 monthly instalments (instead of 24 months, as mentioned in August 2020 order of the Supreme Court). The Federal Government had started the recovery of this fee and the Company had recorded the liability amounting to Rs. 119.353 million in this regard after receiving bill of Rs. 129.395 million from the SNGPL at fair value in accordance with IFRS 9 by discounting the future cash payments required to be made in 48 instalments, to settle the liability for GIDC. Balance unwinding is Rs. 240.522 million and payment was due on December 31, 2025, however no payments have been made during the year. The Company has taken a collective decision along with ceramics industry to delay payments and will start payments once there is a consensus reached within the sector.

March 31,

June 30,

2026

2025

Rupees

Rupees

(Unaudited)

(Audited)

23 DUE TO RELATED PARTIES

Rawal Industrial Equipment (Private) Limited

1,147,808

1,147,808

Toyota Rawal Motors (Private) Limited

1,961,414

743,552

3,109,222

1,891,360

24 CONTRACT LIABILITY

Opening balance

744,354,190

836,755,119

Advance received during the period / year

4,558,795,396

5,167,530,972

Transferred to revenue during the period / year

(4,302,683,868)

(5,259,931,901)

Closing balance

1,000,465,718

744,354,190

24.1 This represents amounts received from customers which will be recognized as revenue upon the completion of performance obligation of the Company.

  1. TRADE AND OTHER PAYABLES March 31, June 30, 2026 2025 Rupees Rupees (Unaudited) (Audited)

    Trade creditors

    462,725,640

    408,897,551

    Accrued liabilities

    365,839,264

    318,823,025

    Old labour dues

    3,256,878

    3,256,878

    Sales tax payable

    28,859,898

    10,093,963

    Withholding income tax payable

    53,681,026

    17,394,984

    Workers' profit participation fund

    130,445,251

    104,495,274

    Workers' welfare fund

    21,106,968

    13,712,876

    Provident Fund Payable 140,253,651 113,920,340

    1,206,168,574 990,594,891

  2. CONTINGENCIES AND COMMITMENTS
    1. Contingencies
      1. Legal case against the Company:

        There has been no significant change in the status of contingent liabilities disclosed as at June 30, 2025.

      2. Tax contingencies:

      There has been no significant change in the status of tax contingencies disclosed as at June 30, 2025.

    2. COMMITMENTS March 31, June 30, 2026 2025 Rupees Rupees Note (Unaudited) (Audited)

      The Company has following commitments:

      - in respect of letter of credit

      - against import of raw materials

      62,009,175

      113,746,555

      - against import of stores and spare parts

      69,892,430

      -

      1. 131,901,605 113,746,555

        26.2.1 This amount represents future letter of credit commitments which will be fulfilled in respect of import of raw material, stores and spare parts and plant and machinery.

  3. TRANSACTION WITH RELATED PARTIES

    The related parties and associated undertakings of the Company comprise of group companies, other associate companies, directors and key management personnel. Transactions with related parties and associated undertakings during the period are as follows :

    Name of the related

    Nine months ended

    Three months ended

    party Relationship Transactions during the period

    March 31, March 31,

    2026 2025 2026 2025

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

    (Unaudited) (Unaudited) (Unaudited) (Unaudited)

    Toyota Rawal Motors (Private) Limited

    Rawal Industrial Equipment (Private) Limited

    Associated company by Interest on short term borrowings - - - -

    Rental for building

    1,127,862

    1,025,328

    375,954

    341,776

    Utilities

    90,000

    90,000

    30,000

    30,000

    Long term financing - received

    41,200,000

    140,088,969

    24,500,000

    88,588,969

    Long term financing - repayment

    38,722,460

    235,844,863

    18,022,460

    88,600,000

    Interest on long term financing

    883,642

    1,184,641

    216,490

    253,403

    Closing balance

    Long term financing - repayment Long term financing - received

    12,204,442

    160,000

    -

    371,776

    149,795,170

    5,772,182

    12,204,442

    -

    -

    371,776

    -

    -

    Interest on long term financing

    783,718

    1,896,994

    260,413

    -

    virtue of common directorship

    Associated company by virtue of common directorship

    Closing balance

    6,275,552

    1,410,237

    6,275,552

    1,410,237

    Mr. Nadeem Khalid

    Chief Executive

    Long term financing - loan repaid

    98,625,087

    2,244,000

    -

    700,000

    Long term financing - received

    12,060,000

    1,800,000

    -

    -

    Interest on long term financing

    3,768

    313,092

    730

    95,047

    Advance for land purchase

    -

    27,300,000

    -

    7,300,000

    Closing balance

    17,684,478

    106,489,066

    17,684,478

    106,489,066

    Khalid & Khalid Associated company by Short term Lending - Paid

    806,827,549

    93,603,005

    67,919,910

    67,919,910

    Holdings

    virtue of common

    Short term Lending - Received 101,050,000 93,109,153 60,237,409 60,237,409

    directorship

    Interest on short term borrowings

    50,272,089

    1,184,641

    253,403

    253,403

    Closing balance

    792,519,434

    1,678,493

    792,519,434

    1,678,493

    Chief Executive,

    Directors and

    Key management

    Remuneration and other

    Executives

    personnel

    benefits

    17,274,784

    17,176,043

    5,561,427

    5,561,427

    1. Balances receivable/payable to related parties are disclosed in respective notes.

  4. DATE OF AUTHORIZATION

    `

    These condensed interim financial information were authorized for issue on April 30, 2026 by the Board of Directors of the Company.

  5. GENERAL

Figures have been rounded off to the nearest rupee.



CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR

‌PRINTED MATTER

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Frontier Ceramics Limited

29- Industrial Estate, Jamrud Road, Peshawar, K.P.K. Telephone: 091-5891470 Fax: 091-5830290

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