Transmission of Quarterly Report (Q3 - 2026) for the Period Ended March 31, 2026

BIBOJEE GROUP

Quarterly Accounts March 31, 2026 (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 Nine Months ended March 31, 2026.

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:

PERFORMANCE REVIEW

During the nine months ended March 31, 2026, the Company did not generate any contract revenue nor secure new projects, reflecting the continued challenges in the construction and infrastructure sector. Despite a relative improvement in macroeconomic indicators compared to the preceding year, overall activity in the sector remained subdued. During the period under review, inflationary pressures eased compared to prior periods, supported by monetary policy measures and relative exchange rate stability. However, financing costs remained elevated for a significant part of the period, and Public Sector Development Program (PSDP) spending continued to be constrained due to fiscal limitations. Private sector investment also remained cautious, resulting in limited new project opportunities and delays in project awards across the industry.

From a financial perspective, the Company reported a loss after taxation of Rs. 0.63 million for the nine months ended March 31, 2026, as compared to a loss of Rs. 8.09 million in the corresponding period of the previous year. This improvement is primarily attributable to better management of administrative costs and recognition of other income, which is mainly

P a g e 1 | 2

sourced from the rental income during the period. The Company recorded a profit before taxation of Rs. 5.13 million, as compared to a loss before taxation of Rs. 2.99 million in the corresponding period last year. However, the overall result after taxation remained marginally negative due to the impact of tax charges.

Throughout the period, the Company remained actively engaged in identifying viable business opportunities within both public and private sectors. Management continued to participate in tendering processes and maintained engagement with relevant stakeholders to secure potential projects. Efforts also continued towards recovery of outstanding receivables. At the same time, the Company maintained strict financial discipline by controlling administrative and operating costs and ensuring efficient utilization of resources, with the objective of sustaining operations and preserving liquidity during a period of limited revenue generation.

FUTURE PROSPECTS

The management of the Company remains focused on improving the Company's operational and financial position through resolution of long outstanding receivables and claims, which are expected to support liquidity and strengthen the overall financial position. The Company continues to actively pursue new projects through participation in tenders and engagement with potential clients. While the operating environment remains challenging, the gradual stabilization of macroeconomic indicators, including easing inflation and expectations of a more accommodative monetary policy going forward, may provide some support to the construction sector.

The management remains cautiously optimistic that, subject to improvement in development spending and market conditions, the Company will be able to secure new projects in due course. Continued emphasis on cost control, operational efficiency, and prudent financial management is expected to position the Company to benefit from emerging opportunities and achieve sustainable growth.

ACKNOWLEDGMENT

We appreciate the hard work and dedication of the Company's Management, Engineers and Employees during the period under review.

We would also like to express our gratitude to our Bankers, Clients and Suppliers for their cooperation, support and trust reposed in the Company.

For and on behalf of the Board of Directors

Khalid Kuli Khan Khattak Director

(Chief Executive Officer)

P a g e 2 | 2

ٹے غ ،ٹروپر نی پا یے ل ےک ہام ون ےلاو نی وہ متخ وک 2026 چرام 31 ہو ہک ہے لصاح ترسم ہی وکزٹر کیرئاڈ ےک نی پمک ۔یے ہ ہے ر رک شیپ ،ہارمہ ےک تانایب تی ایلام ہدش ٹڈآ

ہزئاج رِیز ۔ہے لمتشم رپ ٹے معت یک ںولپ روا تارامع صوصخلاب ،ںویمرگرس تی اٹے معت یک مسق رہ رابوراک یداینب اک نی پمک ہے لیذ جرد ھتاس ےک رامش و دادعا یلباقت ےک تدم ہتشزگ ہصالخ اک یکی درکراک یلام یک نی پمک نارود ےک تدم

این ت وک یہ ہن روا یکس رک ہن لصاح تی دمآ ٹکیٹر نک ت وک نی پمک نارود ےک ہام ون ےلاو نی وہ متخ وک 2026 31چرام ہچرگا ۔ہے اترک یساکع یک تالکشم یراج یے م یے عش ےک رچکٹر سارفنا روا تی اٹے معت ہکوج ،اکس اج ایک لصاح ہبوصنم یرابوراک یعومجم یے م یے عش سا مہات ،ت آ یے م نی ھکید یٹی ہب یے م ںویراشا یسی اعم ضعب یے م ےلباقم ےک لاس ہتشزگ

۔یے ہر دودحم ںایمرگرس

یے م ہلدابم حرسی روا طبض و مظن تی ایلام ہجو یڑب یک سج ،ت وہ عقاو یمک اًتبسن یے م رز طِارفا یے م تدم ہزئاج رِیز ٹر کیس کلبپ ثعاب ےک ؤابد تی ایلام نی موکح ہکبج یہر رارقرب رپ حطس دنلب دوس حرسی دوجواب ےک سا ۔یہر ماکحتسا مارگورپ ٹنمپلویڈ (PSDP) طاتحم یھب یراک ہیامرس یک یے عش جے ن حرط یسا ۔ہے ر دودحم تاجارخا تی ایقرت تحت ےک ۔ت آ یے م نی ھکید ٹے خات یے م ءارجا ےک ںوبوصنم روا ہے ر مک عقاوم ےک ںوبوصنم ی ن یے م جے یتن ےک سج ،یہر

اک پے ور ین لم 0.63 سکیٹ زا دعب نارود ےک ہام ون ےلاو نی وہ متخ وک 2026 چرام 31 نی نی پمک ےس رظن ۂطقن یلام

ناصقن ہی یے م تدم یسا لاس ہتشزگ ہکبج ،ایکرہاظ ناصقن8.09 ہجو یداینب یک یٹی ہب سا ۔اھت پے ور ی ن لم

ہیارک یلاو نی وہ لصاح یے م ےصرع سا رت ہدایز وج ،ہے لوصح اک ئن دمآ رگید روا لوٹر نکرثؤم رپ تاجارخا یماظتنا ۔ہے قلعتم ےس ئن دمآ یک

P a g e 1 | 2

یے م تدم یسا لاس ہتشزگ ہکبج ،ایک ڈراکیر عفانم اک پے ور ین لم 5.13 سکیٹ زا لبق نی نی پمک یے م ےصرع یسا2.99 یلومعم سکیٹ زا دعب ہجیتن یعومجم ثعاب ےک تارثا ےک نشیسکیٹ ،مہات ۔اھت ناصقن سکیٹ زا لبق اک پے ور ین لم ۔اہر فی نم رپ روط

نی ہیماظتنا ۔یھکر یراج شالت یک عقاوم یرابوراک ہنکمم یے م ںوبعش جے ن روا یراکرس نی نی پمک نارود ےک ےصرع سا لصاح نے وصنم ی ن ہکات ےھکر رارقرب طباور ھتاس ےک زرڈلوہ کیٹسا و ںورادا ہقلعتم روا ایل ہصح یے م زرڈنیٹ فلتخم

یے ششوکیھب یے ل ےک یلوصو یکزمیلکروا تاج ایاقب قلعتم ےس ںوبوصنم ےک ضی ام ھتاس ھتاس ےک سا ۔یے کس اج یے ک

۔یے ہر یراج

ےک لئاسو بایتسد روا اھکر یے م لوٹر نکوک تاجارخا ،اھکر رارقرب طبض و مظن یلام نی نی پمکدوجواب ےک تالاح لکشم ۔ےکس اج اھکر رارقرب لسلست یرابوراک دوجواب ےک تی دمآ دودحم ہکات ایانب نی یقی وک لامعتسا رثؤم

صوصخلاب ،ن اج ایانب ٹی ہب وک لاحتروص لنشیرپآ روا یلام یک نی پمک ہک ہے مزعرپ یے ل ےک رما سا ہیماظتنا یک نی پمک ۔ہے عقوتم یٹی ہب یے م نر یڈیوکیل یک نی پمک ےس سج ،ےعیرذ ےک یلوصو یکزمیلکروا تاج ایاقب ےس ےصرع لیوط

ھتاس ےک سٹنئالک ہنکمم روا ہے یہر ےل ہصح لسلسم یے م لمع ےک گنرڈنیٹ یے ل ےک لوصح ےک ںوبوصنم ی ن نی پمک یے م ںویراشا یسی اعم مہات ،ہے گنجنلیچ یھب با لوحام یرابوراک ہچرگا ۔ہے اہر اج ایانب طوبضم دیزم وک طباور وہ تباث تبثم یے ل ےک یے عش تی اٹے معت یمرن ہنکمم یے م دوس حرسی یے م لبقتسم روا یمک یے م رز طِارفا ،یٹی ہب ج••••یردتب ۔ہے نی کس

نی پمک ھتاس ےک فی اضا یے م ںویمرگرس تی ایقرت روا یٹی ہب یے م لاحتروص یک ٹیکرام ہک ہے دیمارپ رپ روط طاتحم ہیماظتنا یلام طاتحم روا ٹی ی شیرپآ رثؤم ،لوٹر نکرپ تگال ۔یکی ےکس وہ بایماک یے م نی رک لصاح نے وصنم ی ن یے م ےصرع ہدنئآ ۔یکی ن انب لباق ےک نی اھٹا ہدئاف ےس عقاوم ےک لبقتسم وک نی پمک یلمع تمکح

وک تامدخ روا نگل ،تنحم نارود ےک ےصرع سا یک یی ے مزالم مامت روا زٹ نیجنا ،ہیماظتنا یک نی پمکزٹر کیرئاڈ فآ ڈروب ۔ہے اتہارس

۔یے ہ رازگرکش ےک نا یھب رپ تیامح لسلسم روا دامتعا ،نواعت ےک زرئالپس روا سٹنئالک ،ںوراکنیب نی پا مہ ےس بناج یکزٹر کیرئاڈ فآ ڈروب

کٹخ ناخ یلق دلاخ

ٹ& کیرئاڈ (رسیفآ وٹکیزگیا فیچ)

P a g e 2 | 2

UN-CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

GAMMON PAKISTAN LIMITED

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

NOTE

ASSETS

NON CURRENT ASSETS

TOTAL ASSETS 996,350,810 996,860,539

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

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 PROFIT OR LOSS (UN-AUDITED) FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2026

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 COMPREHENSIVE INCOME (UN-AUDITED) FOR THE NINE MONTHS AND QUARTER ENDED MARCH 31, 2026

NOTE

(Loss)/profit after taxation (633,118) (8,092,344) 3,092,752 (7,519,567) Other comprehensive income - - - -

Total other comprehensive (loss)/income for the period

(633,118) (8,092,344) 3,092,752 (7,519,567)

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

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

Transfer from revaluation surplus on property, plant and equipment:

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

‌GAMMON PAKISTAN LIMITED

UN-CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE NINE MONTHS ENDED MARCH 31, 2026

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

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

‌GAMMON PAKISTAN LIMITED

NOTES TO THE UN-CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED MARCH 31, 2026

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 of the Company for the nine months ended March 31, 2026 have been prepared in accordance with the requirements of the International Accounting Standard - 34: "Interim Financial Reporting" and provisions of and directives issued under the Companies Act, 2017. In case where requirements differ, the provisions or directives 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 annual 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 interim financial statements for the nine months ended March 31, 2026.

      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 and Listed Companies (Code of Corporate Governance) Regulations, 2019. The unconsolidated condensed interim statement of profit or loss and unconsolidated condensed interim statement of comprehensive income for the three months period ended March 31, 2026 and March 31, 2025 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.

      GAMMON PAKISTAN LIMITED

   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. SIGNIFICANT ACCOUNTING AND RISK MANAGEMENT POLICIES, ACCOUNTING ESTIMATES, JUDGEMENTS AND CHANGES THEREIN

   1. The 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. 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.

4. 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.

5. ESTIMATES

   The preparation of unconsolidated condensed 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.

   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.

   GAMMON PAKISTAN LIMITED

   Unaudited		Audited
   March 31, 2026		June 30, 2025
   Rupees

   NOTE

6. PROPERTY, PLANT AND EQUIPMENT

   55,506,294

   1,499,765

Opening written down value 126,881,653 264,259,416 Add: Additions during the period / year 6.1

Add: Revaluation Surplus

1,040,701 57,006,059

Less: Disposals - net book value (NBV) (14,344) (192,922,000) Less: Depreciation charged during the period / year (3,709,237) (1,461,822)

124,198,773 126,881,653

1. 1. Detail of additions (at cost) during the period / year are as follows:

      NOTE

      Buildings on freehold land	-	35,449,494
      Motor vehicles, cycles and boats	375,000	9,847,500
      Plant and machinery	-	7,300,000
      Solar System with Grid	-	2,487,000
      Furniture and fixtures	541,701	191,300

      Computers and accessories 124,000 231,000

      1,040,701 55,506,294

2. INVESTMENT PROPERTY

   Gammon House - land and building 7.1 365,339,500 365,339,500

   1. The movement in this account is as follows:

      Opening balance 7.2 365,339,500 357,646,440

      Net fair value (loss) on revaluation shown in

      7.3 -

      7,693,060

      profit and loss account

      365,339,500 365,339,500

   2. This represents Gammon House (head office of the Company) which is held to earn rentals and for capital appreciation and shown under the head "Investment property". The Company has adopted fair value model for valuation.

   3. The company, as of June 30, 2025, had revalued all of its investment property. The revaluation exercise was carried out by an independent valuer, Impulse (Private) Limited, and the revaluation resulted in a gain of Rs. 7,693,060 in net adjustment to the fair value as on that date.

      ‌GAMMON PAKISTAN LIMITED

      Unaudited		Audited
      March 31, 2026		June 30, 2025
      Rupees

3. LONG TERM INVESTMENTS

   Unquoted Subsidiaries

   Gammon Pakistan Precast (Private) Limited (69.99% Holding)

   18,934,000 ordinary shares (June 30, 2025:

   18,934,000) of Rs. 10 each

4. CONTRACT RECEIVABLES

   Unsecured - considered good

   NOTE

   189,340,000 189,340,000

   189,340,000 189,340,000

   Against billings:
   - Completed contracts		58,718,714		76,107,565
   Provision for expected credit loss	9.1	(54,485,314)		(73,512,276)
   		4,233,400		2,595,289
   Against retention money:
   - Completed contracts		64,163,814		79,929,396
   Provision for expected credit loss	9.1	(38,066,851)		(38,066,851)
   		26,096,963		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	9.1	(29,990,933)		(29,990,933)
   		-		-
   		30,330,363		44,457,834

   1. Management, in the previous years, carried out an exercise to identify long outstanding receivable balances comprising of progress billings and retention monies which are not likely to be received due to various reasons. There is no change in the management's assessment of expected credit loss of Rs.122.543 million and accordingly, during the nine months ended March 31, 2026, no further provision has been made (June 30, 2025: Nil).

      ‌GAMMON PAKISTAN LIMITED‌

      Unaudited		Audited
      March 31, 2026		June 30, 2025
      Rupees

      NOTE

5. CONTRACT ASSETS

   Net Construction contracts-analysed as current 10.1 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
      March 31, 2026		June 30, 2025
      Rupees

6. It includes Rs. 81,395,774/- (2025: 72,850,322) loan to associated undertaking Gammon Precast Pakistan (Private) Limited carry markup at the rate of 1Y-KIBOR plus 0.25% per annum (2025: 1Y-KIBOR plus 0.25% per annum) up to the maximum amount of Rs. 90.50 million.

   NOTE

7. CASH AND BANK BALANCES

   Cash in hand 214,537 1,020,385

   25,927

   10,505

   889,443

Cash at bank - local currency Current accounts

PLS accounts 12.1

Deposit accounts 12.2

1,185,764 925,875

1,400,301 1,946,260

1. 1. The PLS accounts remained dormant during the year. Consequently, no profit was accrued or credited to these accounts, and their balances remained unchanged from those reported in the previous year (2025: Nil).

   2. As at March 31, 2026 and June 30, 2025 the entire balance was under bank's lien.

      Unaudited		Audited
      March 31, 2026		June 30, 2025
      Rupees

2. ISSUED, SUBSCRIBED AND PAID-UP CAPITAL

   1. Issued, subscribed and paid up capital

      22,627,320 (June 30, 2025: 22,627,320) ordinary shares of

      Rs.10/- each fully paid in cash 226,273,200 226,273,200

      2,562,845 (June 30, 2025: 2,562,845) bonus shares of

      Rs.10/- each fully paid in cash 25,628,450 25,628,450

      3,076,066 (June 30, 2025: 3,076,066) ordinary shares of

      Rs.10/- each fully paid in cash (against conversion of loans) 30,760,660 30,760,660

      282,662,310 282,662,310

      ‌GAMMON PAKISTAN LIMITED

   2. Authorized share capital

      This represents 30,000,000 (June 30, 2025: 30,000,000) ordinary shares of Rs. 10 each amounting to

      Rs.300,000,000 (June 30, 2025: Rs. 300,000,000).

      Unaudited		Audited
      March 31, 2026		June 30, 2025
      Rupees

   3. Bibojee Services (Private) Limited (the holding company) holds 20,369,056 (June 30, 2025: 20,369,056) shares, i.e. 72.06% of the Company's issued, subscribed and paid-up capital.

Worker's welfare fund payable 1 1

160,561,311 165,966,468

GAMMON PAKISTAN LIMITED

1. CONTINGENCIES AND COMMITMENTS

   1. Contingent assets

      The Company had lodged a claim with National Highway Authority amounting to Rs. 201.177 million (June 30, 2025: 201.177 million) against M/s Bayinder for recovery of losses suffered by the Company attributable to cessation of the 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 the financial statements 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 to have a favourable decision in due course of time.

         Punjab Revenue Authority completed its proceedings against the company for non-payment 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 to have a favourable 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 to have a favourable 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 favour 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.

   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 (June 30, 2025: Rs. 50.062 million).

      2. There were no commitment for capital expenditures as at the unconsolidated condensed interim statement of financial position date (June 30, 2025: Nil).

      GAMMON PAKISTAN LIMITED

2. EARNING 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
   NINE MONTHS ENDED		QUARTER ENDED
   March 31, 2026	March 31, 2025	March 31, 2026	March 31, 2025

   Earning after taxation-(Rupees) (633,118) (8,092,344) 3,092,752 (7,519,567)

   Weighted average number of

   ordinary shares	28,266,231	28,266,231	28,266,231	28,266,231
   Earning per share - (Rupees)	(0.02)	(0.29)	0.11	(0.27)

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:

      GAMMON PAKISTAN LIMITED

      UN-AUDITED
      NINE MONTHS ENDED			QUARTER ENDED
      March 31,			March 31,
      2026	2025		2026	2025
      --------------------------------Rupees-----------------------------------

      Relation with the Company Nature of transaction Gammon Pakistan Precast (Private) Limited

      Loan Provided	31,425,930	51,953,299	12,833,275	34,369,896
      Repayments	(22,880,478)	(14,549,306)	(3,607,346)	(11,805,656)

      Associated Companies Ghandhara Automobiles Limited

      Rental income	4,118,886	3,704,178	1,461,540	1,288,410
      Payment received	(4,196,835)	(3,704,178)	(1,539,489)	(1,288,410)
      Gandhara Industries Limited
      Rental income	4,074,597	3,663,915	1,417,251	1,248,147
      Payment received	(2,214,455)	(3,623,652)	(2,214,455)	(1,207,884)

      Kisa Khani kabab (Pvt) Limited

      Rental income	3,600,000	-	1,200,000	-
      Payment received	(4,000,000)	-	(400,000)	-
      Bannu Wollen Mill Limited
      Rental income	5,649,812	5,136,194	1,965,152	1,786,502
      Payment received	(5,649,812)	(3,349,692)	(1,965,152)	(1,786,502)

   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:

   GAMMON PAKISTAN LIMITED

   • 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 nine month period to March 31, 2026, there were no transfers into or out of Level 3 fair value measurements.

   As at March 31, 2026 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.

   Unaudited		Audited
   March 31, 2026		June 30, 2025
   Rupees

   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 2 recurring fair value measurement due to significant observable inputs used in the valuation. A reconciliation of the opening and closing balance is provided below:

      NOTE

      Opening balance (level 2 recurring fair value) 365,339,500 357,646,440

      Fair value (loss) recognized in profit and loss - 7,693,060

      365,339,500 365,339,500

   2. The Company has revalued its freehold land, buildings, plant and machinery and other fixed assets on June 30, 2025 by independent valuers M/s Impulse (Private) Limited on the basis of market value of similar properties. Fair value of land and building are based on assumptions considered to be level 2 in the fair value hierarchy due to significant observable inputs used in the valuation, while fair value of plant and machinery are considered to be level 3 in the fair value hierarchy due to significant unobservable inputs used in the valuation.

      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 2 in fair value hierarchy due to significant observable 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.

      GAMMON PAKISTAN LIMITED

      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
      March 31, 2026		June 30, 2025
      Rupees

      Freehold land	120,988		120,988
      Buildings on freehold land	38,382,066		38,382,066
      Plant and machinery	8,623,263		8,623,263
      Furniture and fixture	1,703,689		1,161,988
      Computers and accessories	1,400,507		1,282,307
      Motor vehicles, cycles and boats	10,494,655		10,119,655
      Construction equipments	273,403		273,403

      Unaudited Nine Months ended March 31,
      2026	2025
      Rupees

      NOTE

6. PROFIT BEFORE WORKING CAPITAL CHANGES

   Profit/(Loss) before taxation 5,130,517 (2,988,069)

   Adjustment for:

   1,072,285

   (639,770)

   -5,688

Depreciation 6

Staff retirement benefits - gratuity (net) Gain/(loss) on disposal of assets Finance cost

3,442,908 438,203

Profit/(Loss) before working capital changes 8,573,425 (2,549,866)

GAMMON PAKISTAN LIMITED

1. SUMMARY OF SIGNIFICANT TRANSACTIONS AND EVENTS

   1. Post Balance Sheet Event

   2. Management Assessment of Going Concern

      Although the company has earned an operational loss of Rs. 38.20 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 46.1 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, 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

   This condensed interim financial information was authorized for issue on the Board of Directors of the Company.

4. GENERAL

Figures have been rounded off to the nearest rupee.

April 23, 2026 by

CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER DIRECTOR

SAY NO TO CORRUPTION