Transmission of Quarterly Report (Q2 - 2026) for the Period Ended December 31, 2025

BIBOJEE GROUP

Half-Yearly Accounts December 31, 2025 (Un-Audited)

COMPANY INFORMATION

Chairman

Lt Gen Ali Kuli Khan Khattak (Retd) Chairman

Board of Directors

Mr. Khalid Kuli Khan Khattak Director

Mrs. Ayesha Alamzeb Durrani Director Mr. Muhammad Kuli Khan Khattak Director Mr. Sikandar Kuli Khan Khattak Director

Mr. Kamal Abdullah Malik Independent Director

Brig Humayun Malik (Retd) Independent Director

Chief Executive Officer

Mr. Khalid Kuli Khan Khattak

Audit Committee

Mr. Kamal Abdullah Malik Chairman Mr. Muhammad Kuli Khan Khattak Member Mr. Sikandar Kuli Khan Khattak Member

HR Committee

Brig Humayun Malik (Retd) Chairman Mrs. Ayesha Alamzeb Durrani Member Mr. Sikandar Kuli Khan Khattak Member

Company Secretary

Officiating

Chief Financial Officer

Mr. Ghulam Murtaza Khurshid

Internal Auditor

Mr. Salman Khan ACA

External Auditor

M/S Rizwan & Co.

Chartered Accountants Islamabad

Legal Advisor

Chanda Law Associates

Rawalpindi Advocates

Stock Exchange

The Gammon Pakistan Limited is a listed Company and

Its shares are traded on

Pakistan Stock Exchange Limited

Gammon Pakistan Limited

Bankers

Askari Bank Limited Bank Alfalah Limited Bank of Punjab Habib Bank Limited Allied Bank Limited Silk Bank Limited

National Bank of Pakistan

Registered Office

Gammon House

400/2, Peshawar Road, Rawalpindi Tel: 051-5477326-7

Fax: 051-5477511

E-mail: (i) gammon1@dsl.net.pk

(ii) Info@gammonpakistan.com

Share Registrar

Vision Consulting Limited 5-C, 2nd Floor, LDA Flats, Lawrence Road, Lahore Tel: +92-42-36283096-97

Email: shares@vcl.com.pk Web: www.vcl.com.pk

https://www.gammonpakistan.com

DIRECTORS REPORT

The Directors of your Company have pleasure in presenting their report, together with Un-Audited Financial Statements for the Half Year ended December 31, 2025.

PERFORMANCE REVIEW

The principal activity of the Company is all type of construction specially Buildings and Bridges. The highlights of the Company's financial results as compared to the preceding period are as follows:

FINANCIAL PERFORMANCE

During the half year ended 31 December 2025, the Company did not record any contract income. The operating environment for the construction sector continued to remain challenging, with limited project activity, cautious investment behaviour, and persistent cost pressures. For the six-month period under review, the Company reported an operating loss of Rs. 29.87 million compared to an operating loss of Rs. 18.39 million in the corresponding period last year. The increase in operating loss primarily reflects administrative expenses and depreciation charges incurred during the period. Other income amounting to Rs. 31.91 million partially offset the operating loss. However, after accounting for taxation, the Company recorded a net loss of Rs. 3.73 million for the half year ended 31 December 2025, compared to a net loss of Rs. 0.57 million in the corresponding period of the previous year. Earnings per share for the period stood at (Rs. 0.13) compared to (Rs. 0.02) last year.

The economic conditions during the reporting period continued to remain difficult for the construction and infrastructure sector. Although certain macroeconomic indicators exhibited relative stability, overall business activity remained subdued. High operating costs, constrained development spending, and slower project initiation across both public and private sectors continued to affect market dynamics. These factors have contributed to

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reduced opportunities for new contract acquisition. Despite these challenges, management remains focused on maintaining financial discipline, controlling costs, and exploring viable business opportunities.

The Company continues to pursue recovery of outstanding receivables, claims, and retention monies from completed projects. Following progress achieved during the first quarter, further follow-up efforts are underway for settlement of the remaining dues relating to the Maritime Technologies Complex (MTC) project. The management is also actively engaged with the concerned authorities for recovery and final billing of the Old Bannu Road (OBR) Structure and Bridges Project. Realization of these outstanding amounts remains a key priority, as successful recoveries will support the Company's liquidity position and financial stability.

OVERALL OUTLOOK

The Directors recognize that the prevailing economic conditions and limited project activity continue to impact the Company's financial performance. Management remains committed to improving operational efficiency, strengthening liquidity management, and identifying potential revenue-generating opportunities. The Board will continue to closely monitor developments in the economic environment and evaluate strategic measures aimed at improving the Company's performance.

ACKNOWLEDGMENT

The Board acknowledges with appreciation the continued efforts, dedication, and commitment of the Company's management, engineers, and employees during the period under review. We also extend our sincere gratitude to our bankers, clients, and suppliers for their cooperation, support, and confidence in the Company.

For and on behalf of Board of Directors

(Chief Executive Officer)

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ےک تدم یہامشش یلاو نی وہ متخ وک 2025 ٹر مسد 31 ہو ہک ہے شی وخ ہی وکزٹر کیرئاڈ ےک نی پمک یک پآ ۔یے ہ ہے ر رک شیپ ،ہارمہ ےک تانایب یلام ہدش ٹڈآ ٹے غ ،ٹروپر نی پا یے ل

ےک تدم ہتشزگ ۔ٹے معت یک ںولپ روا ںوترامع اصوصخ ،ہے تاٹے معت یک مسق رہ یمرگرس یداینب یک نپمک

-:یے ہ لیذ جرد تاکن ںایامن ےک جئاتن یلام ےک نی پمک یے م ےلباقم

ڈراکیر نے دمآ ےس ےدہاعم یھب یسک نے نے پمک نارود ےک تدم یہامشش یلاو نے وہ متخ وک 2025 بر مسد31 نی اج ہبوصنم دودحم یں م سج ،اہر گنجنلیچ روتسدب لوحام یرابوراک بں ل ےک بر عش نی ابں معت ۔یک یں ہن ےک تدم یک ہام ھچ ہزئاج رِیز ۔ہے ر لماش ؤابد نی گال لسلسم روا ناحجر اک یراک ہیامرس طاتحم ،یمرگرس ہراسخ ہی یں م تدم یسا لاس ہتشزگ ہکبج ،ایک ٹروپر ہراسخ گنٹیرپآ اک نے ور یے ں لم 29.87 نے نے پمک نارود

یک. دوسرف روا تاجارخا یماظتنا رپ روط یداینب ہفاضا یں م ےراسخ گنٹیرپآ ۔اھت نے ور یے ں لم 18.39

(Depreciation) 31.91 نے دمآ رگید ۔بگے بں ک تشادرب نارود ےک تدم سا وج اوہ ےس ہجو یکزجراچ ےک

دعب ےک ٹنمٹسجڈیا یک سکیٹ ،مہات ۔ایک مکوک ےراسخ گنٹیرپآ رپ روط یوزج نے سج یہر نے ور یے ں لم

ہراسخ صلاخ اک نے ور یے ں لم 3.73 بں ل ےک تدم یہامشش یلاو نے وہ متخ وک 2025 بر مسد 31 نے نے پمک

۔اھت نے ور یے ں لم 0.57 ہراسخ صلاخ یں م تدم یسا لاس ہتشزگ ہکبج ،ایک ٹروپر

نے دمآ صصح فے نارود ےک تدم سا (Earnings per Share) ۔یھت (نے ور 0.02) ہی لاس ہتشزگ ہکبج ،یہر (نے ور 0.13)

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ہچرگا ۔ہے ر لکشم روتسدب بں ل ےک بر عش ےک رچکبر سارفنا روا تابں معت تالاح یسی اعم نارود ےک تدم گنٹروپر دنلب ۔یہر دودحم یمرگرس یرابوراک یعومجم مہات ،ایگ اھکید ماکحتسا اًتبسن یں م ںویراشا یسی اعم ضعب راتفر یکزاغآ ےک ںوبوصنم یں م ںوبعش ںونود جر ن و یراکرس روا ،یمک یں م تاجارخا نی ایقرت ،تگال گنٹیرپآ عقاوم ےک لوصح ےک ںودہاعم بے ن یں م جر یتن ےک لماوع نا ۔نے وہ رثاتم تالاح ےک ٹیکرام ےس نے ہر تسس لِباق روا نے اپ وباق رپ تاجارخا ،نے ھکر رارقرب طبض و مظن یلام ہیماظتنا دوجواب ےک زجنلیچ نا ۔ہے ر دودحم ۔ہے نے وہ بں کزوکرم ہجوت رپ نے رک شالت عقاوم یرابوراک لمع

یں ششوک بں ل ےک یلوصو یک نے م نشنیٹیر روا زمیلک ،ںویلوصو ایاقب قلعتم ےس ںوبوصنم ہدش لمکم نے پمک بے ں جولانکیٹ مئاٹ یبں م دعب ےک تفر شیپ یلاو نے وہ لصاح نارود ےک یہام ہس ےلہپ ۔ہے نے وہ ےھکر یراج سکیلپمک (MTC) یسا ۔یں ہ یراج تامادقا دیزم بں ل ےک یلوصو یک تابجاو ہدنام فی اب قلعتم ےس نر وصنم ڈور ںونب انارپ ھتاس ےک ماکح ہقلعتم ہیماظتنا حرط (OBR) روا ںویلوصو یک نر وصنم زجرب ڈنیا رچکبر سا ،ہے لماش یں م تاحیجرت یک نے پمک یلوصو یک تاج ایاقب نا ۔ہے لمع مرگرس یھب یں م ےلسلس ےک گنلب یمتح تباث راگددم یں م نے انب طوبضم وک ماکحتسا یلام روا نشیزوپ نر یڈیوکیل یک نے پمک ںایلوصو بایماک ہکنویک ۔یک. ںوہ

یک نے پمک ںایمرگرس نی اج ہبوصنم دودحم روا تالاح یسی اعم ہدوجوم ہک یں ہ نی رکمیلست وکرما سا زبر کیرئاڈ طوبضم وک ٹنمجنیم نر یڈیوکیل ،یبی ہب یں م یک. درکراک لنشیرپآ ہیماظتنا ۔یں ہ یہر رکرثاتم وک یک. درکراک یلام تفر شیپ یلاو نے وہ یں م تالاح یسی اعم ڈروب ۔ہے مزعرپ بں ل ےک یہدناشن یک عقاوم ےک نے دمآ ہنکمم روا نے انب ۔اگ ہے ر اترکروغ رپ یلمع تمکح بسانم بں ل ےک نے انب بی ہب یک. درکراک یک نے پمکروا اگ ہے ر اتیل ہزئاج لسلسم اک

گ. تسباو روا نگل ،تنحم لسلسم یک یے ں مزالم روا زبے نیجنا ،ہیماظتنا یک نے پمک نارود ےک تدم ہزئاج رِیز ڈروب ےک نا بں ل ےک دامتعا رپ نے پمکروا تیامح ،نواعت ےک زرئالپس روا سٹنئالک ،ںوراکنیب نے پا مہ ۔ہے اتہارس وک ۔یں ہ رازگرکش

ےس بناج یکزبر کیرئاڈ فآ ڈروب

کٹخ ناخ یلق دلاخ

ٹر کیرئاڈ (رسیفآ وٹکیزگیا فیچ)

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To the members of Gammon Pakistan Limited

Report on review of Unconsolidated Condensed Interim Financial Statements

Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Gammon Pakistan Limited as at December 31, 2025 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity and unconsolidated condensed interim statement of cash flows together with the notes to the unconsolidated condensed interim financial statements for the six month period then ended (hereinafter referred to as the "unconsolidated condensed interim financial statements'). Management is responsible for the preparation and presentation of the unconsolidated condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan. Our responsibility is to express a conclusion on these unconsolidated condensed interim financial statements based on our review.

Scope of Review

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

Basis i'or Qualified Conclusion

We believe (hat the procedures we have performed are sufficient and appropriate to provide a basis for our qualified conclusion and we report that:

1. Contract receivables amounting to Rupees 30.330 million, allowance of expected credit loss amounting to Rupees 122.543 million, net contract assets amounting to Rupees 65.049 million, as disclosed in notes 10, 10.1, 11 to the unconsolidated condensed interim financial statements and joint venture partner's advances amounting to Rupees 30.059 million as disclosed in the unconsolidated condensed interim statement of financial position respectively could not be verified in absence of direct confirmations from the involved parties. Further, there are no written efforts available to recover/settle these old balances. The consequential cumulative effect of this matter has neither been determined nor adjusted in these unconsolidated condensed interim financial statements.

   
   
   

2. As fulty explained in note 14.2 to the uncon olidated condensed interim fnancial statements, after lapse of considerable time tha company could not make the arrangament to pay the provident fund amounting to Rupees 1.563 million to the relevant employees as instructed by the Securities and exchange Commission of Pakistan, and unclaim•d dividend as disclosed in the

unconsolidated condensed interim statement of financial position amounting to Rupees 1.442 million has not been kept In unpaid dividend account under Section 244 of the Companies Act, 2017, The effect of these matters has not been adjusted appropriately in these unconsolidated condensed interim financial statements.

Qualified Conclusion

Based on our review, except for the effect of matters discussed in paragraphs (a) & (b) of Basis for

Qualified Conclusion above, nothing has come to our attention that causes us to believe that the

accompanying unconsolidated condensed interim financial statements are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim

financial reporting.

Emphasis of Ifatter

/Without (urther qualifying our conclusion:

a) we also draw attention to the Note 21.3 to the unconsolidated condensed interim financial statements which explains that certain financial transactions pertaining to the ex-CFO of the Company are under investigation internally as well as by external agency and the impact of such investigation, if any, will be accounted for in the period during which such investigation is completed.

Otber Ma/ter

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the company. Accordingly, the figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three months period ended December 31, 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is lmran

Bashlr FGA.

Islamabad Date:

I T FEB 7026

zwan & Gompany

artered Accountants

UDIN: RR202510140eYvF3RwdM

UN-CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2025 (UN-AUDITED)

NOTE

ASSETS

NON CURRENT ASSETS

Property, plant and equipment

C

305,528,129 313,948,785

TOTAL ASSETS 986,718,219 996,860,538

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

NON-CURRENT LIABILITIES

The annexed notes from 1 to 24 form an integral part of these financial statements.

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

UN-CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS AND QUARTER ENDED DECEMBER 31, 2025 (UN-AUDITED)

The annexed notes from 1 to 24 form an integral part of these financial statements.

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

(Loss) / Profit after taxation (3,725,870) (572,777) 1,723,213 (1,906,697) Other comprehensive income - - - -

Total comprehensive (loss) / Income for the period

(3,725,870) (572,777) 1,723,213 (1,906,697)

The annexed notes from 1 to 24 form an integral part of these financial statements.

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

GAMMON PAKISTAN LIMITED

UN-CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED DECEMBER 31, 2025 (UN-AUDITED)

The annexed notes from 1 to 24 form an integral part of these financial statements.

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

UN-CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS AND QUARTER ENDED DECEMBER 31, 2025 (UN-AUDITED)

The annexed notes from 1 to 24 form an integral part of these financial statements.

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

NOTES TO THE UN-CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED DECEMBER 31, 2025

1. STATUS AND NATURE OF BUSINESS

   The Company was incorporated under the repealed Companies Act, 1913 (now the Companies Act, 2017) on August 12, 1947 as a Public Company Limited by shares. It's shares are quoted on Pakistan Stock Exchange Limited (Formerly Karachi Stock Exchange Limited in which Lahore and Islamabad stock exchanges have merged). It is principally engaged in the execution of civil construction works. The registered office of the Company is situated at Gammon House, 400/2 Peshawar Road, Rawalpindi. The Company is a subsidiary of Bibojee Services (Private) Limited.

2. BASIS OF PREPARATION

   1. Statement of compliance

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

      These unconsolidated condensed interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the audited financial statements of the Company for the year ended June 30, 2025. Comparative unconsolidated condensed interim statement of financial position is extracted from annual audited financial statements for the year ended June 30, 2025 and comparative unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity and unconsolidated condensed interim statement of cash flows are extracted from unaudited condensed interim financial statements for the six months ended December 31, 2024.

      These unconsolidated condensed interim financial statements are unaudited but subject to the limited scope review by auditors and is being submitted to the shareholders as required under section 237 of the Companies Act, 2017. The condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three months period ended 31 December 2025 and 31 December 2024 are neither audited nor reviewed.

   2. Basis of measurement

      These unconsolidated condensed interim financial statements have been prepared under the historical cost convention except for certain fixed assets which have been stated at revalued amount and staff retirement benefit at present value.

      These unconsolidated condensed interim financial statements have been prepared following accrual basis of accounting except for cash flow information.

   3. Functional and presentation currency

      These unconsolidated condensed interim financial statements have been presented in Pak Rupees, which is the functional and presentation currency of the Company.

3. MATERIAL ACCOUNTING AND RISK MANAGEMENT POLICIES, ACCOUNTING ESTIMATES, JUDGEMENTS AND CHANGES THEREIN

   1. The material accounting policies adopted and methods of computation followed in the preparation of these unconsolidated condensed interim financial statements are same as those applied in the preparation of financial statements for the year ended June 30, 2025.

   2. The preparation of these unconsolidated condensed interim financial statements in conformity with approved accounting standards require management to make estimates, assumptions and use judgements that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors, including reasonable expectations of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of revision.

   3. The significant estimates, judgments and assumptions made by the management in applying the accounting policies and the key sources of estimation uncertainty are the same as those applied to the annual audited financial statements as at and for the year ended June 30, 2025.

   4. There are certain standards, interpretations and amendments to approved accounting standards which have been published and are mandatory for the Company's accounting period beginning on or after July 01, 2025. These standards, interpretations and amendments are either not relevant to the Company's operations or are not expected to have a significant effect on these unconsolidated condensed interim financial statements.

   5. The Company's significant risk management objectives and policies are consistent with that disclosed in annual audited financial statements of the Company for the year ended June 30, 2025.

   6. The accounting policies applied in these unconsolidated condensed interim financial statements are the same as those applied in the preparation of the annual financial statements of the Company for the year ended June 30, 2025.

4. TAXATION

   The provision for taxation for the half year and quarter ended December 31, 2025 has been made using the estimated effective tax rate applicable to expected total annual earnings.

5. ESTIMATES

   The preparation of unconsolidated condensed interim financial statements in conformity with the accounting and reporting standards for interim financial reporting applicable in Pakistan requires the use of certain critical accounting estimates. In addition, it requires management to exercise judgment in the process of applying the Company's material accounting policies. The areas involving a high degree of judgment or complexity, or areas where assumptions and estimates are significant to the unconsolidated condensed interim financial statements, are the same as those that were applied to the financial statements for the year ended June 30, 2025.

6. RELATED PARTY TRANSACTIONS

Transactions involving related parties arising in the normal course of business are conducted at arm's length at normal commercial rates on the same terms and conditions as third party transactions.

NOTE

Limited as on December 31, 2025.

1. CONTRACT RECEIVABLES

   Unsecured - considered good

   NOTE

   Against billings
   - completed contracts		58,718,715		76,107,566
   Provision for expected credit loss	10.1	(56,123,425)		(73,512,276)
   		2,595,290		2,595,290
   Against retention money - completed contracts		64,163,814		79,929,396
   Provision for expected credit loss	10.1	(36,428,740)		(38,066,851)
   		27,735,074		41,862,545
   Joint venture
   - against billings		17,054,553		17,054,553
   - against retention money		12,936,380		12,936,380
   		29,990,933		29,990,933
   Provision for expected credit loss	10.1	(29,990,933)		(29,990,933)
   		-		-
   		30,330,364		44,457,835

   1. Management, in previous periods, carried out an exercise to identify long outstanding receivable balances comprising progress billings and retention monies which were not likely to be received and accordingly recognised an expected credit loss of Rs. 141.50 million as at 30-June-2025. During the current financial priod, as a result of write-off of such long outstanding balances and receipts against retention outstanding balances, provision for expected credit loss has accordingly reduced to Rs.

      122.54 million.

2. CONTRACT ASSETS

   Net Construction contracts-analyzed as current

   NOTE

   Unaudited		Audited
   December 31, 2025		June 30, 2025
   Rupees

   11.1 65,049,779 65,049,779

   1. The Company receive payments from customers based on a billing schedule, as established in the contracts. Contract assets relate to the conditional right to consideration for completed performance obligations under the contract. Contract receivables are recognised when the right to consideration becomes unconditional. In addition, contract assets have been recognized in line with the initial application of IFRS -15.

      Unaudited		Audited
      December 31, 2025		June 30, 2025
      Rupees

      NOTE

3. CASH AND BANK BALANCES

   Cash in hand 1,547,918 1,020,385

   25,927

   10,505

   889,443

Cash at bank - local currency Current accounts

PLS accounts 12.1

Deposit accounts 12.2

951,101 925,875

2,499,019 1,946,260

2.50 million and Saudi Riyals 5 million during the year 1986 for the Saudi Operations of the company, that the company may have to incur as a result of settlement of overseas dues of National Bank of Pakistan in accordance with the Incentive Scheme under the State Bank of Pakistan's Circular No.19 of 05 June,1997 (For further detail please refer note 15.2(a) of these financial statements).

1. CONTINGENCIES AND COMMITMENTS

   1. Contingent assets

      The Company had lodged a claim with National Highway Authority amounting Rs. 201.177 million (2025: Rs. 201.177 million) against M/s Bayinder for recovery of losses suffered by the Company attributable to the cessation of work at Islamabad - Peshawar Motorway Project.

   2. Contingent liabilities

      1. The National Bank of Pakistan (NBP) vide its letter number NBP/CORP/2022/107 has categorically confirmed that the company does not owe any amount in respect of overseas dues of NBP and the e-CIB portal of the State Bank of Pakistan has also not reported any overdue amount. Therefore, outcome of the case pending before the Sindh High Court since 2000 cannot be determined at this stage. However the legal advisor is confident of a favourable outcome.

         In view of the above and since the company has made provision for the contingent liability (note 14.3 above) in accordance with the Incentive Scheme under the State Bank of Pakistan's Circular No. 19 of 05 June, 1997, the management is of the opinion that there is no further requirement for any provision on this account as no adverse effect is expected. The same has been endorsed by the Company's Board of Directors (BOD) and the legal advisor in his opinion. Furthermore, the BOD has agreed to settle any liability that may arise consequent upon the outcome of the above matter.

      2. Regarding tax year 2015 Best judgment assessment was made against the company under section 121 of the Income Tax Ordinance, 2001 determining tax chargeable at Rupees 46,282,156/- and tax payable of Rupees. 22,636,470/- The Commissioner Inland Revenue (Appeals) who upheld the assessment order of Deputy Commission Inland Revenue. Later on, the Appellate Tribunal Inland Revenue remanded back the case to the assessing officers which is yet to set for hearing. Legal counsel of the company is confident of a favorable decision in due course of time.

         Punjab Revenue Authority completed its proceedings against the company for nonpayment of Rupees 68,290,380/- as provincial tax during the tax periods from June 2013 to March 2018. The case is pending before the Appellate Tribunal Punjab Revenue Authority. Legal counsel of the company is confident of a favorable decision in due course of time.

         Proceedings under section 161/205 of the Income Tax Ordinance, 2001 were initiated and completed against the company for the tax year 2016 and 2018 by determining tax payable of Rupees 1,677,422/- and Rupees 16,764,436/- respectively. The cases have been heard by the Commissioner Inland Revenue (Appeals) whose decision is awaited. Legal counsel of the company is confident of a favorable decision in due course of time.

      3. In the ordinary course of business various parties have filed legal cases against the Company, which have not been admitted as liabilities; accordingly, no provision has been considered necessary against these claims till their final outcome. The legal advisor of the Company is of the opinion that these cases are expected to be decided in favor of the Company and therefore no provision has been made in these financial statements for any liability that may arise consequent upon the result of above law suits.

      4. The Company received a notice under section 161(1A) of the Income Tax Ordinance, 2001, for the tax year 2022. The case, involving a potential tax exposure of Rs. 12.793 million, is currently pending before the Assistant/Deputy Commissioner, Federal Board of Revenue (FBR). Based on the advice of its tax, the management believes that it has strong grounds to support its position and expects a favourable outcome.

      5. For Tax Year 2016, the Federal Board of Revenue (FBR) raised a demand of Rs. 168 million under section 122(5A) of the Income Tax Ordinance, 2001. The Company has filed an appeal before the Appellate Tribunal Inland Revenue (ATIR), which is pending adjudication. Based on the advice of its tax and legal advisors, the management believes that it has strong grounds to support its position and expects a favourable outcome.

      6. An appeal previously filed before the Lahore High Court involving a tax demand of Rs. 44.675 million was dismissed on the grounds of limitation. The Company has now filed a petition before the Honourable Supreme Court of Pakistan. The Company's legal counsel remains confident of a favourable outcome.

      7. Another case for Tax Year 2019 was decided by the Commissioner (Appeals) FBR, whereby the demand was modified to Rs. 2.223 million.

   3. Commitments

      The Company's commitments as at balance sheet date are as follows:

      1. Guarantees issued by a commercial bank and insurance companies in respect of financial and operational obligations of the Company to various institutions and corporate bodies, aggregate Rs.

         50.062 million (2025: Rs. 50.062 million).

      2. There were no commitments for capital expenditures as at the balance sheet date (2025: Nil).

2. EARNINGS PER SHARE- BASIC AND DILUTED

   There is no dilutive effect on the basic earnings per share of the Company, which is based on:

   UN-AUDITED
   HALF YEAR ENDED			QUARTER ENDED
   December 31, 2025		December 31, 2024	December 31, 2025		December 31, 2024

   (Loss) / Earnings after	(3,725,870)	(572,777)	1,723,213	(1,906,697)
   taxation-(Rupees)
   Weighted average number of ordinary shares	28,266,231	28,266,231	28,266,231	28,266,231
   Earnings per share - (Rupees)	(0.13)	(0.02)	0.06	(0.07)

3. TRANSACTIONS WITH RELATED PARTIES

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

      UN-AUDITED
      HALF YEAR ENDED			QUARTER ENDED
      December 31,			December 31,
      2025	2024		2025	2024
      --------------------------------Rupees-----------------------------------

      Relation with the Company Nature of transaction

      Subsidiary Company
      Gammon Pakistan Precast
      (Private) Limited
      Loan Provided	87,336,217	17,583,403	80,142,217	13,514,418
      Repayments	(19,273,132)	(2,743,650)	(7,508,193)	(694,582)
      Associated Companies
      Ghandhara Nissan Limited
      Rental income	2,657,346	2,415,768	1,328,673	1,207,884
      Payment received	(2,657,346)	(2,415,768)	(1,328,673)	(1,207,884)
      Gandhara Industries Limited
      Rental income	2,657,346	2,415,768	1,328,673	1,207,884
      Payment received	-	(2,415,768)	-	(1,207,884)
      Bannu Wollen Mill Limited
      Rental income	3,684,660	3,349,692	1,842,330	1,674,846
      Payment received	(3,684,660)	(3,349,692)	(1,842,330)	(1,674,846)
      Kissa Khani (pvt) Limited
      Rental income	2,400,000	-	1,200,000	-
      Rental received	2,400,000	-	1,200,000	-

   2. Balances receivable / payable with related parties are disclosed in respective notes.

4. FINANCIAL RISK MANAGEMENT

   The Company's financial risk management objective and policies are consistent with that disclosed in the unconsolidated financial statements for the year ended June 30, 2025.

5. FAIR VALUE MEASUREMENT

   Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable willing parties in an arm's length transaction. Consequently, differences can arise between carrying values and fair value estimates.

   Underlying the definition of fair value is the presumption that the Company is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.

   Financial assets which are traded in an open market are revalued at the market prices prevailing at the close of trading on the reporting date. The estimated fair value of all other financial assets and liabilities is not considered to be significantly different from book values as the items are either short-term in nature or periodically repriced.

   International Financial Reporting Standard (IFRS) 13, "Fair Value Measurement" requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

   • quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);

   • 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 2); and

   • inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).

   The management assessed that the carrying value of cash and short term deposits, trade debts, other receivables trade and other payables and other current liabilities approximate their fair values largely due to the short term maturities of these instruments. Fair value is determined on the basis of objective evidence at each reporting date.

   Transfers during the period

   During the six month period to December 31, 2025, there were no transfers into or out of Level 3 fair value measurements.

   As at December 31, 2025 and June 30, 2025 the Company held financial instruments carried at fair value which comprising, investment property and operating fixed assets, are measured at fair value.

   1. The investment property was valued on June 30, 2025 carried out by external independent valuers M/s Impulse (Private) Limited. The fair value of investment property is categorized as level 3 recurring fair value measurement due to significant unobservable inputs used in the valuation. A reconciliation of the opening and closing balance is provided below:

      Unaudited		Audited
      December 31, 2025		June 30, 2025
      Rupees

      Opening balance (level 3 recurring fair value)	365,339,500	357,646,440
      Less: Transfer during the year	-	-
      Fair value loss recognized in profit and loss	-	7,693,060
      Closing balance (level 3 recurring fair value)	365,339,500	365,339,500

   2. The Company has revalued its freehold land, buildings on June 30, 2025 and plant and machinery on June 30, 2019 by independent valuer M/s Impulse (Private) Limited on the basis of market values of similar properties. The fair value of free hold land, buildings and plant and machinery is a level 3 recurring fair value measurement.

      Valuation techniques used to derive level 2 fair values - Land and building

      Fair value of land and building has been derived using a sales comparison approach. Sale prices of comparable land and buildings in close proximity are adjusted for differences in key attributes such as location and size of the property. Moreover value of building also depends upon the type of construction, age and quality. The most significant input in this valuation approach is price / rate per square foot in particular locality. This valuation is considered to be level 3 in fair value hierarchy due to significant unobservable inputs used in the valuation.

      Valuation techniques used to derive level 3 fair values-Plant and machinery and other fixed assets

      In the absence of current prices in an active market, the fair value is determined by taking into

      account the following factors:

      • Make, model, country of origin and etc.;

      • Operational capacity;

      • Present physical condition;

      • Resale prospects; and

      • Obsolescence.

      The valuation is considered to be level 3 in the fair value hierarchy due to the above unobservable inputs used in the valuation. Most significant input in this valuation is the current replacement cost which is adjusted for factors above.

      Had there been no revaluation, the net book value of the specific classes of operating assets would have been as follows:

      Unaudited		Audited
      December 31, 2025		June 30, 2025
      Rupees

      Freehold land 120,988 120,988

      Buildings on freehold land	38,382,066		38,382,066
      Plant and machinery	8,618,699		8,623,263
      Furniture and fixture	1,493,176		1,161,988
      Computers and accessories	1,299,810		1,282,307
      Motor vehicles, cycles and boats	10,471,218		10,119,655
      Construction equipments	273,403		273,403

      Unaudited Half year ended
      2025	2024
      Rupees

      NOTES

6. PROFIT BEFORE WORKING CAPITAL CHANGES

   Profit/(Loss) before taxation 2,037,765 (608,821)

   Adjustment for:

   716,084

   108,000

   4,988

Depreciation 7

Staff retirement benefits - gratuity (net) Finance cost

2,486,887 829,072

Profit before working capital changes 4,524,652 220,251

1. SUMMARY OF SIGNIFICANT TRANSACTIONS AND EVENTS

   1. Post Balance Sheet Event

      No significant events have occurred after the balance sheet date that would require adjustment to, or disclosure in, these financial statements.

   2. Management Assessment of Going Concern

      Although the company has reported an operating loss of Rs 29.87 million due to non-availability of profitable contracts/projects during the period, it has managed to meet the day to day working capital requirements and to repay all the administrative cost through the rental income earned from investment properties. However, the management is confident of the Company's ability to continue as a going concern based on its concentrated effort to re-profile the operational activities and utilization of improved liquidity in cost efficient operational levels of machinery and related projects. The Company undertook significant operational measures in order to generate liquidity and profitable projects/ventures which are amply disclosed in note 45.1 to the audited financial statements.

   3. Investigation against EX-CFO

      Based on in-house internal audit report the EX-CFO of the company during the period from 01 January 2018 to 29 December 2020 was involved in certain financial transactions amounting to Rs 26.804 million, which is being investigated internally. Moreover, FIR has been lodged against him subsequent to June 30, 2021. The transactions mainly done out of books and the impact of such investigation/FIR, if any, will be accounted for in the period during which such case is completed.

2. CORRESPONDING FIGURES

   Corresponding figures have been rearranged and reclassified, wherever necessary for the purposes of comparison and for better presentation. However, no significant reclassification has been made during the period.

3. DATE OF AUTHORIZATION

   These condensed interim financial statements were authorized for issue on by the Board of Directors of the Company.

   27 Feb 2026

4. GENERAL

Figures have been rounded off to the nearest rupee.

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

SAY NO TO CORRUPTION