Financial Statements
For the Third Quarter & Nine Months Period Ended March 31, 2026
(UN-AUDITED)
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 STATEMENTTo 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 STATEMENTDeliver 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 KhalidChief 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-
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.
-
BASIS OF PREPARATION
-
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.
-
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.
-
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.
-
Statement of compliance
-
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.
-
CHANGES IN ACCOUNTING STANDARDS, INTERPRETATIONS AND PRONOUNCEMENTS
-
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.
- 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.
-
Amendments to published accounting and reporting standards which became effective during the period:
-
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.
-
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.
-
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
-
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%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.
-
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
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.
-
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
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.
- STOCK IN TRADE
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 - -
-
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
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) |
75,000,000
June 30, 202575,000,000
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 SHARESThis 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 | |
- 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
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.
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.
-
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
-
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)
- -
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.
-
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
-
CONTINGENCIES AND COMMITMENTS
-
Contingencies
-
Legal case against the Company:
There has been no significant change in the status of contingent liabilities disclosed as at June 30, 2025.
- Tax contingencies:
There has been no significant change in the status of tax contingencies disclosed as at June 30, 2025.
-
Legal case against the Company:
-
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
-
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.
-
Contingencies
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
Balances receivable/payable to related parties are disclosed in respective notes.
-
DATE OF AUTHORIZATION
`
These condensed interim financial information were authorized for issue on April 30, 2026 by the Board of Directors of the Company.
- GENERAL
Figures have been rounded off to the nearest rupee.
CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER DIRECTOR
PRINTED MATTER
If not delivered, please return to:
Frontier Ceramics Limited29- Industrial Estate, Jamrud Road, Peshawar, K.P.K. Telephone: 091-5891470 Fax: 091-5830290
