Transmission of Half Yearly Report

Go«ron

DIRECTORS' REPORT

Dear Shareholders,

On behalf of the Board of Directors, we are pleased to present the half yearly report of Garton (Industries) Limited for the period ended December 31, 2025, along with the un-audited financial statements duly reviewed by the external auditors.

FINANCIAL REVIEW:

The financial synopsis for the period under review are as below:

• Net sales Rs.13,529 million,

• EBITDA Rs.1,005 million,

• Operating profit Rs.98 million,

• Loss before levies and income tax Rs.570 million,

The Company achieved an operating profit of Rs.98 million for the reporting period, however the loss before levies and income tax for the period ended December 31, 2025, amounted to Rs.570 million compared to Rs.1,339 million loss in the corresponding period last year.

Net revenue for the period is Rs.13,529 million, up 3% from Rs.13,124 million in the previous correspondence period.

As stated in previous reports, the Company had been facing significant challenges due to the dumping of imported yarn at exceptionally low prices in the local market. However, in June 2025, the National Tariif Commission (NTC) imposed final Anti-Dumping Duties (ADra) GFI Polyester Filament Yarn (PFY) from major Chinese exporters, ranging from 5.35% to 20.78 S with only 3 suppliers between 5.35% to 10%, while all other suppliers being above 13%. The focus of the Company now is effective enforcement and collection of duties or in case of stay orders the collection of bank guarantees. In July to September 2025, this was lacking at custom stage, however by end September there was proper enforcement of collection of bank guarantees/pay orders in case of stay orders. This was necessary to undo the dumping led price depression and to get the impact of Anti-Dumping Duty reflected in the market prices and to prevent large scale evasion of Anti-Dumping Duty which happened in the previous ADD period of 2017 to 2023. Over Rs 10 billion anti-dumping duties still remain evaded/not paid in the case of PFY for the period 2017 to 2023.

The persistent dumping and evasion of dumping duty besides above noted price suppres s:on have so far compelled the Company to operate at substantially diminished capacity utilization So besides the price margin recovery, the aim is also to increase operating rates without iar.d ng in a situation of increased inventory and the resulting inventory carrying cost. .'.II i .:›. price recovery and the gradual Increase in operating capacity will improve the bottom ii .r the Yarn segment. However, increased energy costs are affecting bottom line of the Ccmpa*y The imposition of off-grid captive levy on gas and petroleum levy on HFO has made producing power from these sources very expensive and also made investment of over Rs.3 billion *y the Compan,v not fully utilized. The Company is taking various steps to decrease its ener$y costs by investing in further renewable energy as well as grid stabil:'zing equipment !o util:ze the available grid power which is now costing lower than gas based capti 'e pcwer.

The misuse of duty-free imports under the Export Facilitation Scheme (EFS) for local saie> a*.d misdeclaration of DTY as FDY to take advantage of reduced duty in some instances alsc put pressure on market prices.

Gatron (Industries) Limited

https://www.gatron.com

D +92213565950O-O9

Liason Office

Ground floor, G & T Tower,

tt18 Beaumont Road, Civil Lines-10, Karachi-75S3O, Pakistan

Registered Office Room No.32, 1st Floor,

Ahmed Complex, Jinnah Road, Quetta - Pakistan

Plant

e

Plot No. 441/49- M2, Sector 'M'. H.I.T.E.,

Main R.C.D. Highway, Hub Chowki, Distt. Lasbela, Balochistan, Pakistan

f9OCFOI3

COST SAVING AND OTHER INITIATIVES:

Besides many cost saving initiatives which were completed at the start of this financial year, Management is actively pursuing several other cost-saving projects to improve profitability, including:

• Expansion of existing solar and batteries to increase power capacities and to reduce energy costs.

• Power grid stabilization equipment to reduce energy costs.

• Evaluation of wind power capacities as well as other initiatives to reduce power cost.

• Enhancing labor efficiency through time and motion studies.

• Promoting diversified products in the market. EXPENSES AND FINANCING:

  Distribution and selling expenses decreased by 39% compared to last correspondence period, whereas administrative expenses decreased by 5%. Finance costs also decreased by Rs.243 million. Efforts continue to reduce inventory and receivables.

  On the balance sheet front, compared to June 30, 2025:

• Stocks decreased by Rs.594 million to Rs.6,719 million, with further reduction expected in coming periods.

• Debtors decreased by Rs.434 million to Rs.4,229 million,

• Creditors increased by Rs.2,089 million to Rs.6,639 million.

• Short-term borrowings were reduced by Rs.2,068 million to Rs.4,841 million.

CHALLENGES AND FLITURE OUTLOOK:

• The NTC in June 2025 imposed final Anti-Dump'•9 DUties on PFY import from China with 3 suppliers at 5.35%, 6.79% and 9.67% while all other suppliers being above 13%. As noted above the focus of the Company now is effective enforcement and collection of duties or in case of stay orders the collection of bank guarantees which is a continuous effort. To put a perspective on the rate of 5.35% to 9.67% ADD on 3 suppliers in Pakistan, noted below are ADD imposed on Chinese exporters of Polyester Filament Yarn in other counti"ies:

  • by Turkey minimum of 20% or $268-$351 per ton

  • by India of minimum 23%

  • by the USA ranging from 76% to 77%

  • by Vietnam minimum one producer at 3.36% but all others above 10% (and max 21.2%)

  • by Brazil $57.85 - 585.70/ton (4.35% - 44%)

  • by Mexico $532/ton (40%)

    So, 7 major countries including Korea have imposed Anti-Dumping or Countervailing Duties on PFY from China, while Indonesia is restricting imports of PFY by not allowing the same to traders and intends to increase import duties on the same. So, this covers mosi of the PFY producing countries. Bangladesh protects its PFY industry by way of 25% import duty on competing imported yarn.

    From October 2023 to November 2025 India had imposed the non-tariff barrier removing the BIS (Bureau of Indian standard) exemption for imports of PFY into India. Because of which the import of PFY from China into India have reouced fram 50,000 tons per month (annua!ized 600,000 MT) to less than 10,000 tons per month (annualized 120,000 MT) at present. However, India allowed Chinese PFY to be imported under Export Bond Scheme for processing and export. So effectively it was not for quality/standards but to prevent the injury to the local PFY industry by the excess Chinese dumping.

    Gatron (Industries) Limited https://www.gatron.com

    
    
    

    0 +92 21-356S95OO-09

    Liason Office

    
    
    

    Ground floor, G & T Tower,

    tt18 Bea u mont Road, Civil Lines-1O, Karachi-7S53O, Pakistan

    Registered Office

    e

    Room No.32, 1st Floor,

    Ahmed Complex, 3innah Road, Quetta - Pakistan

    Plant

    e

    Plot No. 441/49-M2, Sector 'M', H.I.T.E.,

    Main R.C.D. Highway, Hub Chowki, Distt. Lasbela, Balochistan, Pakistan

    Goñron

    On the back of effective implementation of Anti-Dumping Duty for 5 years on the levels on competing imported yarn would allow Pakistan PFY producers to fully utilize their capacity which can meet nearly 50% of the Pakistan's domestic use PFY demand and encourage these producers to further expand to meet over 75% of Pakistan in the next 3 years since polymer capacity for the same is already available. In fact, if we consider only DTY product variety of PFY the domestic producers can meet over 60% of the domestic demand if they are allowed to fully utilize their capacity through effective Anti-Dumping measures.

    PFY is among the top imports, sc it needs to be produced locally, particularly when its raw material PTA is also produced locally. It should also be kept in mind that in the year 2003 over 90% of local demand of Filament Yarn was met by indigenous production, Moreover, the downstream industry and demand has also grown over the years and the total demand of PFY stood over 350,000 tons compared to 260,000 tons in year 2017-18 so increasing domestic production of the same is also essential to reduce this pressure on the current account deficit of the country.

• With recovery in prices through collection of dumping duty on imports by pay order or Bank guarantee (in case of stay order) from October 2025 onwards as well as through energy and other cost reductions, the results of ensuing quarters is expected to be better. And the overall result of the ongoing financial year will Insha Allah be much better than the previous year.

  OTHER MATTERS:

  • Our wholly owned subsidiaries, Gatro Power (Private) Limited and G-Pac Energy (Private) Limited, continue normal operations generating and selling electric power.

  • Global Synthetics Limited, another wholly owned subsidiary, has yet to commence operations.

SCHEME OF ARRANGEMENT

The Board of Directors of Gatron (Industries) Limited on January 28, 2026 have resolved to authorize the Company to enter into a Scheme of Arrangements ("Scheme") w th Nova Frontiers Limited ("NFL") and Ghani & Tayub (Private) Limited ("G&T"), subject to the necessary approval by the Honorable High Court of Balochistan at Quetta and the Shareholders of the respective companies.

Under the proposed Scheme:

1. NFL will cancel the shares held by the certain categories of shareholders (coll Iy referred to as the "Outgoing Shareholders"), resulting in a corresponding reduction in NFL's share capital. As consideration for the aforesaid, the 29.33% shareholding ‹ Gatron, currently held by NFL will be cancelled upto the ratio determined through valuation and new shares of Gatron will be issued to the Outgoing Shareholders/Beneficial Owners of Outgoing Shareholders of NFL in lieu of cancellation of their shareholding in NFL on the basis of SWAP ratio to be determine by the Professional Valuer.

2. Gatron will cancel 2.98% shareholding (comprising 3,240,774 shares) currenly held by the G&T, and will issue new shares of the Company directly to the shareholder G&T.

Gatron (Industries) Limited e

https://www.gatron.com

0 92 21-3565950O-O9

Liason Office

Ground floor, G & T Tower,

#18 Beaumont Road, Civil Lines-1O, Karachi-75530, Pakistan

Registered Office Room No.32,1st Floor,

e

Ahmed Complex, 3innah Road,

Quetta - Pakistan

Plant

e

Plot No. 44Jl49-lv12, Sector 'M', H.I.T.E., Main R.C.D. Highway, Hub Chowki, Distt. Lasbela, Balochistan, Pakistan

I OEFOI3

APPROPRIATION

The Board of Directors of the Company does not recommend any interim cash dividend for the six-month period ended December 31, 2025.

EARNING/(LOSS) PER SHARE

The loss per share of the Company for the six months period ended on December 31, 2025, is Rs.6.79.

MATERIAL CHANGES AND COMMITMENTS

There have been no material changes or commitments affecting the Company's financial position from the date of the balance sheet to the date of this report.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The unaudited condensed interim consolidated financial statements of the Group along with notes and directors' report thereto have also been included in this report.

AUDITORS' REVIEW REPORT

The Auditors of the Company, Mls. Preston Hyder Bhimji & Co. Chartered Accountants, have issued an unqualified review report to the members of the Company on financial statements for the half year ended December 31, 2025.

INTERNAL FtNANClALCONTROLS

The system of internal controls is sound in design and has been effectively implemented and monitored.

ACKNOWLEDGMENT

The Boafd of Directors extends its sincere appreciation to all stakeholders for their continued trust and confidence in the Company. We are truly grateful for the ongoing cooperation and support received over the years and remain confident that this strong partnership will endure. We also wish to thank every member of the Company for their dedication, innovation. and commitment. Your contributions are vital to our continued success. In addition, we extend our gratitude to Government Institutions, Auditors, SECP, PSX, and our Banking partners for their valuable guidance and support, which have played a key role in the Company's groMh and development. Thank you for your steadfast partnership and support.

SHABBIR DIWAN

CHIEF EXECUTIVE OFFICER

Dated: February 28, 2026

MUHAMMA IQBAL BILWANI DIRECTOR

Gatron (Industries) Limited https://www.gatron.com

0 9221-Z56595OO-09

Liason Office

- Ground floor, G & T Tower,

d18 Beaumont Road, Civil Lines-10, Karachi-7553O, Pakistan

Registered Office Room No.32, 1st Floor,

e

Ahmed Complex, 3innah Road, Quetta - Pakistan

Plant

Plot No. 44ll49- M2, Sector 'M', H.I.T.E., Main R.C.D. Hig hway, Hub Chowki, Distt. Lasbela, Balochistan, Pakistan

GATRON (INDUSTRIES) LIMITED

REVIEW OF CONDENSED INTERIM UN-CONSOLIDATED

FINANCIAL STATEMENTS

DECEMBER 31, 2025

I @KRESTON

HYDER BHIMJI & CO.

CHARTEREDACCOUNTANTS

INDEPENDENT AUDITOR'S REVIEW REPORT

To the Members of Gatron (Industries) Limited

Report on Review of Condensed Interim Un-consolidated financial statements

Introduction:

We have reviewed the accompanying condensed interim un-consolidated statement of financial position of GATRON (INDUSTRIES) LIMITED ("the Company") as at December 31, 2025, and the related condensed interim un-consolidated statement of profit or loss, condensed interim un-consolidated statement of comprehensive income, condensed interim un-consolidated statement of changes in equity and condensed interim un-consolidated statement of cash flows and notes to the financial statements for the half year ended (here-in-after referred to as the "condensed interim un-consolidated financial statements"). Management is responsible for the preparation and presentation of these condensed interim un-consolidated financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim un-consolidated

Scope of Review:

We conducted our review in accordance with the International Standard on Review engagements 2410, "Review of condensed Interim financial information Performed by the Independent Auditor of the Entity". A review of condensed Interim un-consolidated financial statements consists of making inquiries primarily of persons responsible for financial and accounting matters, 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

Conclusion:

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim un-consolidated financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

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 un-consolidated statement of profit or loss and condensed interim un-consolidated statement of comprehensive income for the three

The engagement partner of the review resulting in this independent auditor's report is Taswar Hussain.

KRESTO

ER BE

& CO.

CHARTERED ACCOUNTANTS

Karachi: March 03, 2026

UDIN: RR202510729G3 lKQPBfR

Suite No. 1601, 16th Floor, Kashif Centre, Shahrah-e-Faisal, Karachi. Phone: 92-21-35640050 - 52 Website: www.krestonhb.com E-mail: hyderbhimji@krestonhbco.com info@krestonhbco.com

OTHER OFFH E $ LAHORE - FAISALABAD - ISLAMABAD

A member of Kreston Global

GATRON (INDUSTRIES) LIMITED

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

The notes 1 to 20 annexed herewith form an integral part of these condensed interim un-consolidated financial statements.

SHABBIR DIWAN

Chief Executive Officer

MUHAMMAD IQBAL BILWANI

Director

MUHAMMA UFAIL

Chief Financi I fficer

GATRON (INDUSTRIES) LIMITED

CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UN-AUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 202S

Loss per share - Basic and diluted ( Ru pees )

(6. 13)

(6.79)

1. l›u ‹lotus to 20 anne xed herewith form an inte gr al part of these condei sed iiJte rii» un-consoI‹i ñ ocJ financial sta tements

   
   
   
   
   
   
   
   
   
   
   
   
   

   SHABBIR DIWAN

   Chief Executive Officer

   MUHAMMAD IQBAL BILWANI

   
   
   

   Director

   
   
   
   
   
   
   
   
   
   
   
   
   

   GATRON (INDUSTRIES) LIMITED

   
   
   

   CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   
   
   

   Loss for the period	(343,971)		(666,235)		(738,488)		(1,505,073)
   Other comprehensive income
   Items that will never be reclassified to statement of profit or loss Loss on remeasurement of defined benefit plan having nil tax impact	(4,657)				(4,657)
   Total comprehensive loss	(348,628)		(666,235)		(743,145)		(1,505,073)

   
   
   
   
   
   
   

   The notes 1 to 20 annexed herewith form an integral part of these condensed interim un-consolidated financial statements.

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   SHABBIR DIWAN

   Chief Executive Officer

   MUHAMMAD IQBAL BILWANI

   Director

   MUHAM AD TUFAIL

   Chief Fina cial Oftice r

   
   
   
   
   
   
   
   
   

   GATRON (INDUSTRIES) LIMITED

   
   
   
   
   
   
   

   CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDI+ED) roR THF HALF YEAR ENDED DECEMdE R 3 1, 2025

   
   
   
   
   
   
   
   
   
   
   
   
   

   b:tances us at 4uy0l 2024 1,087,290			1 1,656,603		543,270		1 2, 199,873		13, 287, 163
   Tutat comprehensive loss for the six months period
   c i›ded De ceUsber 31, 2024
   Loss for the period 0th e r con p reher s we in come					(1,S0S,073)		(1,505,073)		(1,505,073)
   					(1,505,073)		(1,505,073)		(1,505,073}
   ha la need as at December 31, 2024 1,087,290			I 1,656,603		(961,803)		10,694,800		1 1, 782,090
   Total coi1Jprehensive loss for the six iaJontls period
   ended June 30, 202S
   Loss for the period					ld66,0S0)		(466,050)		(4 o6,05U)
   Other comprehensive income					86549		5 6,549		3 o, 5 -J 9
   					(409,5011		(409,501)		(409,5 U J }
   	1,087,290		1I,656,60/1		t1,37 J , 3 04)		10,28S,299		11,372,583
   Loss for the period					(738, 488)		(73 8,4 88)		i 7 3 8, 4 68)
   Other comp relJeilsive loss					(4, 657)		(4, 657)
   					(743, 45)		(743, 45)

   Balances as at December 31, 2025 1,087,290 11 656,603 (2,114,449) 9,542, 154 10,629,444
   
   
   
   
   
   
   
   

   The notes 1 to 20 an nexed herewith form an integral part of these condensed interim un-consolidated financial staef»ei ts.

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   SHABBIR DIWAN

   Chie I Exec u tive Officer

   MUHAMMAD IQBAL BJLWANI

   
   
   
   
   
   
   
   
   
   
   
   
   

   GATRON (INDUSTRIES) LIMITED

   CONDENSED INTERIM UN-CONSOLIDATED STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   (Rupees in Thousand)

   Jul-2025 Jul-2024

   to to

   Dec-202S Dec-2024

Cash Flows from/(towards) Operating Activities

Loss before levies and income tax

Adjustments for non cash income and expenses: Depreciation on property, plant and equipment Depreciation on right of use assets Amortization of intangible asset

Provision for defined benefit plan

Gain on disposal of property, plant and equipment Impairment in long term investments Impairment/(reversal) of allowance for ECL-net Impairment allowance for slow moving stores,

spare parts and loose tools-net

Amortization of interest free long term loan to subsidiary company Remeasurement gain on discounting of provision for GIDC

Finance costs

(569,832)

1,693,223

(1,339,318)

1,691,256

The notes 1 to 20 annexed herewith form an integral part of these condensed interim un-consolidated financial statem ts.

SHABBIR DIWAN

Chief Executive Officer

MUHAMMA IQBAL BILWANI

Director

MUHAMMAD T F IL

Chief Financial cer

GATRON (INDUSTRIES) LIMITED

NOTES TO THE CONDENSED INTERIM UN-CONSOLIDATED FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

THE COMPANY AND ITS OPERATIONS

L1 The Company was incorporated in Pakistan in 1980 as a Public Limited Company and its shares are quoted at Pakistan Stock Exchange Limited since 1992. The principal business of the Company is manufacturing of Polyester Filament Yarn through its self-produced Polyester Polymer/Chips. The Company also produces Pet Preforms. The registered office of the Company is situated at Room No. 32, 1st floor, Ahmed Complex, Jinnah Road, Quetta whereas the manufacturing facility of the Company is situated at Plot No 441/49-M2, Sector "M", H.I.T.E., Main R.C.D. Highway, Hub Chowki, Distt Lasbela, Balochistan, Liaison office of the Company is situated at 11th Floor, G&T Tower, # 18 Beaumont Road, Civil Lines-10, Karachi and 2nd floor, Bahria Complex-I, M.T. Khan Road, Karachi.

1. 1. Following are the wholly owned subsidiaries of the Company:

      
      
      

      • Gatro Power (Private) Limited, which is engaged in power generation.

      • Global Synthetics Limited, which has yet to commence its operations.

      • G-Pac Energy (Private) Limited, which is engaged in power generation.

        
        
        

   2. The Board of Directors of Gatron (Industries) Limited on January 28, 2026 have resolved to authorize the Company to enter into a Scheme of Arrangements ("Scheme") with Nova Frontiers Limited ("NFL") and Ghani & Tayub (Private) Limited ("G&T"), subject to the necessary approval by the Honorable High Court of Balochistan at Quetta and the Shareholders of the respective companies.

      
      
      

      ( i )

      
      
      
      
      

      ( ii )

      NFL will cancel the shares held by the certain categories of shareholders (collectively referred to as the "Outgoing Shareholders"), resulting in a corresponding reduction in NFL's share capital. As consideration for the aforesaid, the 29.33a» shareholding of Gatron, currently held by NFL will be cancelled upto the ratio determined through valuation and new shares of Gatron will be issued to the Outgoing Shareholders/Beneficial Owners of Outgoing Shareholders of NFL in lieu of cancellation of their shareholding in NFL on the basis of SWAP ratio to be determine by the Professional Valuer.

      Gatron will cancel 2.98% shareholding (comprising 3,240,774 shares) currently held by the G&T, and will issue new shares of the Company directly to the shareholders of G&T.

      
      
      

2. BASIS OF PREPARATION

   
   
   
   
   

   1. These condensed interim un-consolidated 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 comprises of International Accounting Standards (IAS) 34, interim financial reporting, issued by international Accounting Standard 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 requirement of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

      
      
      

   2. These condensed interim un-consolidated financial statements are the separate condensed interim un-consolidated financial statements of the Company in which investments in subsidiaries have been accounted for at cost less accumulated impairment losses, if any.

      
      
      

   3. These condensed interim un-consolidated financial statements are unaudited and do not include all the information and disclosures of the annual financial statements and should be read in conjunction with the audited financial statements of the Company for the year ended June 30, 2025.

   
   
   

   Z.4 The figures included in the condensed interim un-consolidated statement of profit or loss and condensed interim un-consolidated statement of comprehensive income for the quarter ended December 31, 2025 and 2024 and in the notes forming part thereof have not been reviewed by the auditors of the Company, as they have reviewed the accumulated figures for the half year ended December 31, 202S and 2024.

   
   
   

   1. New accounting standards / amendments and IFRS interpretations that are effective for the half year ended

      December 31, 2025

      
      
      

      z.s.z Standards, interpretations and amendments to published approved a•rnunting standards that became effective during the period

      There are certain amendments and interpretations to approved accounting and reporting standards which are mandatory for the Company's annual accounting period beginning on July 1, 2025; however, these do not have any significant impact on these condensed interim un-consolidated financial statements, hence not described.< *

      
      
      
      
      
      
      
      
      

      z.s.z New accounting standards / amendments and IFRS interpretations that are not yet elective

      
      
      

      There are certain new standards and amendments to the approved accounting standards that will be mandatory for the Company's annual accounting periods beginning on or after July 1, 2025. However, these amendments will not have any significant impact on the financial reporting of the Company, therefore, have not been disclosed in these condensed interim un-consolidated financial statements.

   2. Functional and reporting currency

   
   
   

   These condensed interim un-consolidated financial statements are presented in Pakistani Rupee (Rupees), which is the Company's functional currency.

   
   
   

3. ACCOUNTING ESTIMATES AND JUDGEMENTS

   
   
   

   Judgements and estimates made by the management in the preparation of these condensed interim un-consolidated financial statements were the same as those applied to the audited financial statements as at and for the year ended June 30, 2025.

4. MATERIAL ACCOUNTING POLICY INFORMATION

The material accounting policies adopted in the preparation of these condensed interim un-consolidated financial statements are the same as those applied in the preparation of the audited financial statements of the Company for the year ended June 30, 2025.

5.1.1 Following are the cost of additions and net book value (NBV) of assets disposed off during the period: Additions to operating fixed assets at cost during the period including transfer from Capital work in progress

Balance as at start of the period/year Charge for the period/year

Balance as at end of the period/year

166,9Z5

195 337

113,103

53,822

166 925

STOCK IN TRADE

These include items costing Rs.94.520 million (June 2025: Rs.78.767 million) valued at net realizable value of Rs.75.237 million (June 2025: Rs.60.889 million).

SHORT TERM INVESTMENT

Term deposit receipt -Shariah compliant

This carries profit rate @ 10% and matured on January 15, 2026.

350,000 -

1. SHARE CAPITAL

   :Amber of Shares

   Decem"N

   une "

   (Un-*audted)j .

   (A202ted)

   
   
   
   
   

   1. Authorized capital

130,000,000 130,000,000 Ordinary shares of Rs. 10 each

11.2 Deferred Income - Government scheme

This represents the value of benefit of below-market markup rate on the loans obtained under Islamic Temporary Economic Refinance Scheme (ITERF). ITERF scheme is a 'temporary' relief measure taken by the State Bank of Pakistan (SBP) in context of COVID-19 related economic situation and with the objective to provide stimulus to the economy across the board by supporting new investment and BMR of the existing projects in the country. The difference between the fair value of these loans and proceeds received is recorded as Deferred income - Government scheme.

1. TRADE AND OTHER PAYABLES

   
   
   

   There are no material changes in the status of provisions includes in trade and other payables as reported in the annual audited financial statements for the year ended June 30, 2025.

2. CONTINGENCIES AND COMMITMENTS

   
   
   

   The detail of contingencies and commitments as at reporting date are as follows:

   1. Contingencies

      
      
      

      There are no material changes in the status of contingencies as reported in the annual audited financial statements for the year ended June 30, 2025, except for the following:

      
      
      
      
      

      1. The Company had filed petition no. D-557 and D-2656 before the Honorable Sindh High Court wherein the Company had challenged the notice requiring to pay Super Tax for tax year 2018 amounting to Rs.28.187 million and 2019 Rs.31.444 million respectively. The Honorable Sindh High Court has decided the matter against the Company. The Company has filed petition no. 2307 of 2020 and 2308 of 2020 before the Honorable Supreme Court of Pakistan against the judgement of the Honorable Sindh High Court, which has been decided by the Federal Constitutional Court of Pakistan that the Super Tax is intra vires the Constitution. The amount of Super Tax has been fully provided in these condensed interim un-consolidated financial statements.

         
         
         
         
         

      2. The Company has filed a petition no. CP No.D-8011/2022 dated December 23, 2022 before the Honorable Sindh High Court against the levy of Super Tax under section 4C of the Income Tax Ordinance, 2001 for the tax year 2022. The Honorable Sindh High Court held that the Super Tax is not applicable for the tax year 2022. However, the Tax Department has filed petition before the Honorable Supreme Court of Pakistan and has issued interim order whereby the Honorable Supreme Court has directed to pay Super Tax to the extent of 4'X» in other C.P. no. 3825 and 3909 of 2022. Therefore, the Company has paid the Super Tax of Rs. 13.353 million on the direction of the Honorable Supreme Court and in the compliance of the tax department notice as well. Now the Federal Constitutional Court of Pakistan has decided that the Super Tax matter is intra vires the Constitution. The amount of Super Tax has been fully provided in these condensed interim un-consolidated financial statements.

         
         
         
         
         

      3. The Tax Department disallowed expenses of Rs.74 million under section 122(5A) of the income Tax Ordinance, 2(XI1 for tax year 2022. However, no income tax demand was raised owing to tax refundable position both before and after amendment of assessment proceedings. The Company's appeal is reserved for order before the CIRA. Based on the merits of the case, the management is confident that the case will be decided in favor of the Company.

         
         
         

      4. The Commissioner of Balochistan Revenue Authority (BRA) has raised demand of Rs.342.5 million on the basis of short withholding of Balochistan sales tax payment, vide order dated June 30, 2025, for the tax period July 2018 to June 2019. The Company has filed an appeal before Balochistan Appellate Tribunal against the said order. The case has been decided in favor of the Company, vide order dated Sep 15, 2025, by remanding back to the officer for reassessment. No provision has been made in these condensed interim un-consolidated financial statements.

         
         
         
         
         

      5. Income tax return for the Tax Year 2024 was amended by the ADCIR vide order dated July 18, 2025 resulting in reduction of tax refund of Rs.2.3 million against which the Company filed an appeal on Aug 16, 2025 before CIRA. The case has been heard and reserved for Order.

13.3 Commitments

The Company's commitments, against which the banks ha 'e opened Letters of Credit, in favor of different suppliers, are as follows:

Foreign currency:

Property, plant and equipment Raw and packing material Spare parts and others

Local currency:

Property, piarit and equipment Raw material

1,743,083

742,448

74Z,448

2,485,531

1,486,228

2,366

2,366

1,488,594

t4 MEASUREMENT OF FAIR VALUE

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company's certain accounting policies and disclosure requires use of fair value measurement and the Company while assessing fair value maximize the use of relevant observable inputs and minimize the use of unobservable inputs establishing a fair value hierarchy, i.e., input used in fair value measurement is categorized into following three levels:

Le›'el 1

Level 2

Inputs are the quoted prices in active markets for identical assets or liabilities that can be ass•.ssed at measurement.

Inputs are inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 Inputs are unobservable inputs for the asset or liability.

As at reporting date the fair value of all the assets and liabilities approximates to their carrying values except property, plant and equipment and long term investments in subsidiaries and associate. The property, plant and equipment is carried at cost less accumulated depreciation and impairment if any, except free-hold land, lease-hold land and capital work in progress which are stated at cost, whereas long term investment in subsidiaries and associate carried at cost less accumulated impairment, if any. The Company do•.s not expect that unobservable inputs may have significant

effect on fair values. .

IS SEGMENT REPORTING

The Company's reportable segments are as follows:

Polyester Filament Yarn - it comprises manufacturing of Polyester Filament Yarn and its raw materiaI_ Polyester PET Preforms - it comprises manufacturing of Polyester PET Preforms and its raw material.

Other expenses, other income, finance costs and taxation are managed at Company level.