Habib Rice Products Ltd.PSX: HRPL

Transmission of Annual Report For the Year Ended - 30 June 2025

Oct 7, 2025 at 4:43 AM UTC · Issued by Habib Rice Products Ltd.

Iabib Rice Products Ltd.

45th Annual Report for the year ended June 30, 2025

Contents

Page No

Company Information 2

Chairman's Review / Directors' Report 3

Company's Contribution to the Economy 5

Statement on Corporate and Financial Reporting Framework 6

Six Years at a Glance 7

Pattern of Shareholding 8

Statement of Compliance with listed Companies (Code of Corporate

Governance) Regulation, 2019 10

Independent Auditors' Review Report 13

Independent Auditors' Report on Financial Statements 15

Statement of Financial Position 21

Statement of Profit or Loss 22

Statement of Other Comprehensive Income 23

Statement of Changes in Equity 24

Statement of Cash Flows 25

Notes to the Financial Statements 26

Notice of Annual General Meeting 54

Proxy Form

COMPANY INFORMATION

BOARD OF DIRECTORS

Executive Directors

Mr. Owais G. Habib Managing Director Mr. Tufail Y. Habib

Non Executive Directors

Mr. Gaffar A. Habib Chairman

Dr. Howard J. Synenberg Independent Director Ms. Fatemah G. Habib

Dr. Salma Habib

Mr. Adil Ahmed Chapra Independent Director

Mr. Asad R. Premjee Independent Director

BOARD OF AUDIT COMMITTEE

Mr. Gaffar A. Habib Ms. Fatemah G. Habib Dr. Salma Habib

Mr. Asad R. Premjee

BOARD OF HR AND REMUNERATION COMMITTEE

Mr. Gaffar A. Habib Mr. Tufail Y. Habib

Ms. Fatemah G. Habib Dr. Salma Habib

Mr. Adil Ahmed Chapra

NOMINATION COMMITTEE

Mr. Gaffar A. Habib Mr. Owais G. Habib Mr. Tufail Y. Habib

Ms. Fatemah G. Habib

RISK MANAGEMENT COMMITTEE

Mr. Gaffar A. Habib Mr. Owais G. Habib Mr. Tufail Y. Habib Dr. Salma Habib

CHIEF EXECUTIVE OFFICER

Mr. Owais G. Habib

CHIEF FINANCIAL OFFICER

Mr. Jamshed Ali Khan

COMPANY SECRETARY

Mr. Ali Asghar Rajani

AUDITORS

Grant Thornton Anjum Rahman Chartered Accountants

SHARE REGISTRAR

M/s. CDC Share Registrar Services Ltd.

CDC House, 99-B, Block-B, S.M.C.H.S., Main Sharah-e-Faisal, Karachi.

REGISTERED OFFICE ADMINISTRATIVE OFFICES & FACTORY

2nd Floor, UBL Building, I. I. Chundrigar Road, Ahmad Habib Boulevard, Karachi - 74000, Pakistan. Hub - 90250, Pakistan.

Telephone : (021) 32411887 Telephone : (0853) 363963-5

Fax : (021) 32414581 Fax : (0853) 363819

CHAIRMAN'S REVIEW / DIRECTORS' REPORT

Dear Shareholders,

During the year, the Board of the Company comprised of:

Mr. Gaffar A. Habib Chairman, Non-Executive Director

Mr. Owais G. Habib Chief Executive Officer

Dr. Howard J. Synenberg Independent Director

Mr. Tufail Y. Habib Executive Director

Ms. Fatemah G. Habib Non-Executive Director

Dr. Salma Habib Non-Executive Director

Mr. Asad R. Premjee Independent Director

Mr. Adil Ahmed Chapra Independent Director

The Financial Highlights and the Directors' proposed appropriations are as follow:

RUPEES in '000

	2025	2024
(Loss) before Tax	(123,156)	(54,301)
Provision for Tax (Net)	(32,556)	(38,133)
Net (Loss) after Tax	(155,712)	(92,434)
Un-appropriated Profit Brought Forward	689,414	781,848
Un-Appropriated Profit Carried Forward	533,702	689,414
(Loss) per Share (EPS) -Net of Tax	(3.89)	(2.31)
The Year In Review

The past year has been one of considerable challenges for our Company, as unfavorable policy measures, high energy costs, and supply constraints continued to impact our performance. These factors have led to a net loss of PKR 155.71 million for the year ended June 30, 2025.

Iabib Rice Products Ltd.

One of the most critical issues remains the steep escalation in energy costs. These costs cannot be transferred to customers, who find it more economical to import Sorbitol due to the prevailing tax and tariff regime. Imported Sorbitol is subject to only 1% sales tax, compared to 18% on domestically produced alternatives. Additionally, under the Free Trade Agreement with China, Sorbitol imports attract an import duty of 3%, which will be reduced to zero effective January 1, 2026. Such policy measures render imported Sorbitol significantly cheaper and continue to discourage local production. Consequently, demand for domestically produced Sorbitol has contracted sharply-by more than 33%-and shows a declining trend.

Further burdening our operations, the Government of Baluchistan has recently imposed a Market Committee Fee based on vaguely defined product categories. The arbitrary interpretation of these categories by contract collectors has resulted in excessive charges on our products, thereby increasing our overall cost structure.

Water scarcity also persists as a major constraint. Despite Hub Dam having overflowed for three consecutive years and currently holding more than three years' worth of supply, the Company remains deprived of its rightful allocation. We are compelled to purchase water from private suppliers at exorbitant rates of Rs. 1.6 per gallon, compared to the official industrial tariff of Rs.

0.05 per gallon. This inequitable practice, driven by the so-called "Tanker Mafia," has placed a severe financial strain on our operations.

On the agricultural side, a reduced corn crop during the year shifted poultry feed demand toward rice, which supported higher rice prices. However, post-harvest anti-fungal treatment rendered the rice non-organic, limiting its application in our protein products. This has constrained us to the domestic market, where cheaper soybean meal imports intensify competitive pressures.

In response to the unsustainably high energy costs, the Company has initiated a cost-efficient alternate energy arrangement through the establishment of a Co-generation Power Plant. Civil works on this project have been substantially completed, and installation activities are scheduled to commence shortly. Once operational, this initiative is expected to significantly reduce the Company's energy cost burden and strengthen long-term sustainability.

Looking ahead, the resolution of structural and policy-related issues remains critical for the survival and growth of the domestic industrial base. Unless urgent corrective measures are undertaken-particularly in the areas of energy pricing, water allocation, and fair trade policies-local production will continue to face existential challenges.

The Board and management remain committed to exploring efficiency improvements, alternate energy solutions, and operational strategies to mitigate these headwinds, while continuing to advocate for a level playing field for domestic industry.

In closing: Please join me in my prayers to All Mighty Allah to guide the policy makers to take corrective action to save our local Industries, Aameen

On behalf of the Board,

OWAIS G. HABIB GAFFAR A. HABIB

Chief Executive Officer Chairman

Karachi: 01 October 2025

Iabib Rice Products Ltd.

Post Script to the Chairman Report

COMPANY'S CONTRIBUTION TO THE ECONOMY

2025

2024

2023

2022

2021

Amount Amount Amount

-------------- Rupees in milli

Amount Amount

ons --------------

A Quick glance at the numbers below shows the contribution of our Company has made to the Pakistan Economy

Description

Total Revenue	2,153	2,416	2,596	1,963	1,840
Export Sales (Pak Rupees in Million )	196	578	513	689	294
Taxes Paid
Sales Tax	487	466	459	235	165
Income Tax	80	118	111	62	103
	567	584	570	297	268
Employees Salaries & Other Benefit	311	289	289	254	237
Investors	-	51	68	102	167
Grand Total	878	924	927	653	672

Iabib Rice Products Ltd.

STATEMENTS ON CORPORATE AND FINANCIAL REPORTING FRAMEWORK

The Financial Statements prepared by the management of the Company, present fairly it's state of affairs and the result of it's operations.
The Company has maintained proper books of accounts.
In preparation of Financial Statements, appropriate accounting policies have been consistently applied and accounting estimates are based on reasonable and prudent judgment.
In preparation of Financial Statement International Accounting Standards, as applicable in Pakistan, have been followed and non-applicability, if any, has been adequately disclosed.
The existing system of internal control and other procedures have been continuously reviewed by the internal auditor. The process of review will continue and any weakness in controls will have immediate attention of the management.
There are no doubts about the Company's ability to continue as a going concern.
The Corporate Governance Regulations, as detailed in the Listing Regulations, have been fully implemented.
Key operating and financial data for the last six years in summarized form is annexed.
The following is the value of total assets of Provident Fund based on-respective un-audited accounts as on 30 June 2025.
Provident Fund Rs. 319.26 million - (2024 Rs.285.18 million)
Pattern of Share Holding of the Company is shown on the page 8.
During the year (4) meetings of the Board of Directors were held. Attendance by each Director is as follows:-

Name of Directors	No. of Meeting Attended
1. Mr. Gaffar A. Habib	4
2. Mr. Owais G. Habib	4
3. Dr. Howard J. Synenberg	-
4. Mr. Tufail Y. Habib	4
5. Ms. Fatemah G. Habib	4
6. Dr. Salma Habib	4
7. Mr. Asad R. Premjee	2
8. Mr. Adil Ahmed Chapra	4

AUDITORS

The auditors M/s. Grant Thornton Anjum Rahman, Chartered Accountants retire and have offered themselves for reappointment. The Board of Audit Committee of the Company have recommended their re-appointment for the financial year ending June 30, 2026.

OWAIS G. HABIB GAFFAR A. HABIB

Chief Executive Officer Chairman

Karachi: October 01, 2025

Iabib Rice Products Ltd.

SIX YEARS AT A GLANCE

(Rupees in '000)

PARTICULARS	2025	2024		2023		2022		2021		2020
FINANCIAL POSITION
Paid up Capital	200,000	200,000		200,000		200,000		200,000		200,000
Revenue and Reserves	60,000	60,000		60,000		60,000		60,000		60,000
Unappropriated Profit	533,702	689,414		841,768		668,783		704,699		654,681
Total Share Holder Equity	793,702	949,414		1,101,768		928,783		964,699		914,681

Fixed Assets at Cost	1,592,225	1,477,687		1,461,890		1,436,994		1,386,869		1,163,595
Accumulated Depreciation	1,011,210	965,027		915,793		862,127		862,127		773,290
Fixed Assets Net of Depreciation	581,014	512,660		546,098		574,867		524,742		390,304
Right-of-use assets	13,181	5,946		4,516		15,106		4,922		14,014
Long Term Deposits	1,061	27,282		26,892		26,491		26,491		20,130
Deferred Taxation -Net	-	6,341		14,216		20,768		33,329		28,937
Current Assets	788,323	763,408		968,324		768,664		833,076		861,691
Total Assets Net of Depreciation	1,383,579		1,315,638		1,560,045		1,405,896		1,422,560		1,315,076

Non Current Liabilities	43,244	-		3,462		39,715		76,459		695
Current Liabilities	546,634	366,224		454,736		437,030		400,286		399,700
Total Liabilities	589,878	366,224		458,198		476,745		476,745		400,395
INCOME
Consolidated Gross Sales	2,486,125		2,663,090		2,888,595		2,040,878		1,772,259		1,797,679
Net Sales Gain on discounting of provision for GIDC	2,136,281 -	2,340,412 2,174		2,534,016 10,586		1,919,657 8,541		1,772,259 28,367		1,699,067 -
Other Income	17,166	73,877		50,619		34,479		39,811		41,384
Total Net Revenue	2,153,447		2,416,463		2,595,221		1,962,677		1,840,437		1,740,451
Loss / Profit before Taxation	(123,156)	(54,301)		370,048		121,851		251,740		208,663
Taxation	32,556	38,133		36,997		37,767		1,722		34,145
Loss / Profit after Taxation	(155,712)	(92,434)		333,064		84,084		250,018		174,519
STATISTICS AND RATIOS
Pre-Tax Profit to Sales	(6)	(2)		15		6		14		12
Pre-Tax Profit to Capital	(62)	(27)		185		61		126		104
Current Ratio	1.42	2.08		2.13		1.76		2.08		2.16
Paid-Up Value Per Share (Rs)	5	5		5		5		5		5
Earning Per Share Before Tax(Rs)	(3.08)	(1.36)		9.25		3.05		6.29		5.22
Earning Per Share After Tax(Rs)	(3.89)	(2.31)		8.33		2.10		6.25		4.36
Cash Dividend %(Rs.)	0.00(00%)	0.00(00%)		3.50(70%)		2.00(40%)		5.00(100%)		3.00(60%)
Bonus Share %	-	-		-		-		-		-
Retained Earning Per Share (Rs)	(3.89)	(2.31)		4.83		0.10		1.25		1.36
Break-Up Value Per Share (Rs)	19.84	23.74		27.54		23.22		24.12		22.87

Iabib Rice Products Ltd.

PATTERN OF SHARE HOLDING AS ON JUNE 30, 2025

NO. OF SHARE HOLDERS	SHARE HOLDING	TOTAL SHARES HELD
1005	0000001 TO 0000100	28,632
552	0000101 TO 0000500	155,822
263	0000501 TO 0001000	199,074
338	0001001 TO 0005000	808,289
52	0005001 TO 0010000	412,811
10	0010001 TO 0015000	118,980
10	0015001 TO 0020000	183,148
3	0020001 TO 0025000	65,484
5	0025001 TO 0030000	147,966
3	0030001 TO 0035000	94,508
2	0035001 TO 0040000	76,713
4	0040001 TO 0050000	178,828
2	0050001 TO 0070000	134,764
3	0070001 TO 0075000	218,700
4	0075001 TO 0100000	358,017
7	0100001 TO 0200000	1,014,600
4	0200001 TO 0300000	942,237
1	0300001 TO 0500000	400,000
3	0500001 TO 2000000	3,038,087
3	2000001 TO 3000000	7,801,506
3	3000001 TO 5000000	12,674,619
2	5000001 TO 6000000	10,947,215
2279		40,000,000

S.NO.	CATEGORY OF SHAREHOLDERS	NUMBER OF SHAREHOLDERS	NUMBER OF SHARES HELD	PERCENTAGE OF ISSUED CAPITAL
1	INDIVIDUAL	2,243	38,388,656	95.97%
2	JOINT STOCK COMPANIES	21	308,841	0.77%
3	INSURANCE COMPANIES	3	201,000	0.50%
4	FINANCIAL INSTITUTIONS	7	13,262	0.03%
5	CHARITABLE & OTHER TRUSTS	5	1,088,241	2.72%
	TOTAL	2,279	40,000,000	100%

Iabib Rice Products Ltd.

PATTERN OF SHAREHOLDING AS ON JUNE 30, 2025

Category #	Shareholders' Category	Number of Shareholders	Number of Shares Held	Category Wise Shares Held	Percentage
1	Directors, Chief Executive Officer & Their Spouses			25,924,750	64.81
	Mr. Gaffar A. Habib	1	5,468,885
	Mr. Owais G. Habib	1	5,478,330
	Mr. Tufail Y. Habib	1	3,089,742
	Ms. Fatemah G. Habib	1	4,792,891
	Dr. Salma Habib	1	4,791,986
	Mr. Asad R. Premjee	1	500
	Mr. Adil Ahmed Chapra	1	500
	Directors' Spouse		500
	Directors' Spouse
	Mrs. Nishat G. Habib	1	2,301,916
2	Associated Companies, Undertakings and Related Parties			5,823,041	14.56
	M/s. Ahmad Habib Foundation	1	858,245
	M/s. Hydari Boring & Pilling (Pvt) Limited	1	18,000
	M/s. Abbas Builders (Pvt) Limited	1	1,373
	M/s. Indus Oil Expellers (Pvt) Limited	1	200
	Related Parties	5	4,945,223
3	NIT M/s. National Investment Trust Limited	3	12,730	12,730	0.03
4	Bank DFIs, NBFIs	3	366	366	0.00
5	Insurance Companies	3	201,000	201,000	0.50
6	Modarabas and Mutual Funds	1	166	166	0.00
7	Individuals	2,229	7,517,930	7,517,930	18.79
8	Joint Stock Companies	18	289,268	289,268	0.72
9	Charitable & Other Trusts	4	229,996	229,996	0.57
10	Foreign Investors Holding less than 10% voting Interest	1	753	753	0.00
	Total	2,279	40,000,000	40,000,000	100.00

SHARE HOLDERS HOLDING FIVE PERCENT OR MORE VOTING INTEREST IN THE LISTED COMPANY

Name(s) of Shareholder(s)	Number of Shareholders	Number of Shares Held	Percentage
Mr. Owais G. Habib	1	5,478,330	13.70%
Mr. Gaffar A. Habib	1	5,468,885	13.67%
Ms. Fatemah G. Habib	1	4,792,891	11.98%
Dr. Salma Habib	1	4,791,986	11.98%
Mr. Tufail Y. Habib	1	3,089,742	7.72%
Mrs. Atiqa Begum	1	2,761,900	6.90%
Mr. Ghulam Abbas Y. Habib	1	2,737,690	6.84%
Mrs. Nishat G. Habib	1	2,301,916	5.75%
TOTAL		31,423,340	78.56%

Iabib Rice Products Ltd.

STATEMENT OF COMPLIANCE WITH LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE) REGULATIONS, 2019

Habib Rice Products Ltd. Year Ended June 30, 2025

The Company has complied with the requirements of the Regulations in the following manner:

The total number of Directors are 8 as per the following:
1. Male: 6
2. Female: 2
The composition of board is as follows:
Category Names
1. Independent Director Mr. Asad R. Premjee
  Dr. Howard J. Synenberg Mr. Adil Ahmed Chapra
2. Non-Executive Directors Mr. Gaffar A. Habib
3. Executive Directors Mr. Owais G. Habib Mr. Tufail Y. Habib
4. Non-Executive Female Directors Ms. Fatemah G. Habib
Dr. Salma Habib
The Directors have confirmed that none of them is serving as a director on more than seven listed Companies, including this Company;
The Company has prepared a "Code of Conduct" and has ensured that appropriate steps have been taken to disseminate it throughout the company along with its supporting policies and procedures;
The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the Company. The Board has ensured that complete record of particulars of the significant policies along with their date of approval or updating is maintained by the company;
All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by the Board / shareholders as empowered by the relevant provisions of the Act and these Regulations;
The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose. The Board has complied with the requirements of Act and the Regulations with respect to frequency, recording and circulating minutes of meeting of the Board;
The Board have a formal policy and transparent procedures for remuneration of directors in accordance with the Act and these Regulations;
Six directors have been trained under Directors' Training Program. Two Directors of the Company are exempt from the requirement of Directors' Training Program.
10

Iabib Rice Products Ltd.

The board has approved appointment of Chief Financial Officer, Company Secretary and Head of Internal Audit, including their remuneration and terms and conditions of employment and complied with relevant requirements of the Regulations;
Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before approval of the Board;
The Board has formed committees comprising of members given below:-
1. Audit Committee:
  Name Designation
  Mr. Gaffar A. Habib Member
  Ms. Fatemah G. Habib Member
  Dr. Salma Habib Member
  Mr. Asad R. Premjee Chairman
2. HR and Remuneration Committee:
  Name Designation
  Mr. Gaffar A. Habib Member
  Mr. Tufail Y. Habib Member
  Ms. Fatemah G. Habib Member
  Dr. Salma Habib Member
  Mr. Adil Ahmed Chapra Chairman
3. Nomination Committee
  Name Designation
  Mr. Gaffar A. Habib Chairman
  Mr. Owais G. Habib Member
  Mr. Tufail Y. Habib Member
  Ms. Fatemah G. Habib Member
4. Risk Management Committee
Name Designation
Mr. Gaffar A. Habib Chairman
Mr. Owais G. Habib Member
Mr. Tufail Y. Habib Member
Dr. Salma Habib Member
The terms of reference of the aforesaid committees have been formed, documented and advised to the committee for compliance;
The frequency of meetings (quarterly/half yearly/yearly) of the committee were as per following:
1. Audit Committee Quarterly
2. HR and Remuneration Committee Yearly
3. Nomination Committee Yearly
4. Risk Management Committee Yearly
11

Iabib Rice Products Ltd.

The Board has set up an effective internal audit function / or has outsourced the internal audit function to who are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Company;
The statutory auditors of the company have confirmed that they have been given a satisfactory rating under the Quality Control Review program of the ICAP and registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the ICAP and that they and the partners of the firm involved in the audit are not a close relative (spouse, parent, dependent and non-dependent children) of the chief executive officer, chief financial officer, head of internal audit, company secretary or director of the company;
The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the Act, these Regulations or any other regulatory requirement and the auditors have confirmed that they have observed IFAC guidelines in this regard.
We confirm that all other requirements of the regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations have been complied with.
During the current year, the Company did not undergo Directors' Training Program for at least one female executive and one Head of Department, as encouraged under SECP regulations as cost saving strategy.
To ensure confidentiality, the Company has not been posting its policies on its website.

OWAIS G. HABIB GAFFAR A. HABIB

Chief Executive Officer Chairman

Karachi: October 01, 2025

Iabib Rice Products Ltd.

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2025

ASSETS

NON CURRENT ASSETS

NOTE

2025

RUPEES

2024

RUPEES

Property, plant and equipment	4	581,014,206	512,660,327
Right-of-use assets	5	13,181,115	5,946,250
Long-term deposits	6	1,061,249	-
Deferred taxation	7	-	6,341,495
		595,256,570	524,948,072
CURRENT ASSETS
Stores, spares parts and loose tools	8	120,073,257		115,950,823
Stock in trade	9	456,946,103		419,045,739
Trade debts - considered good	10	26,305,128		22,352,383
Loan and advances	11	59,629,527		11,981,675
Trade deposits, prepayments and other receivable	12	6,290,544		4,011,778
Short-term deposits Due from related party	13	7,819,241 491,659		27,282,370 -
Short-term investments Taxation - net	14	210,655 99,623,653	254,450 89,078,282
Cash and bank balances	15	10,933,122	100,732,383

788,322,889 790,689,883

Total assets 1,383,579,459 1,315,637,955

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Issued, subscribed and paid up share capital	16.2	200,000,000	200,000,000
Reserves		593,701,609	749,413,604
		793,701,609	949,413,604
NON-CURRENT LIABILITIES
Long term financing	17	38,000,000		-
Lease liabilities	18	5,243,614		-
		43,243,614		-
CURRENT LIABILITIES
Current maturity of lease liabilities	18	3,483,656		535,640
Provision for gas infrastructure development cess	19	229,344,757		227,124,918
Trade and other payables	20	288,415,210		113,473,180
Due to related party		300,000		-
Unclaimed dividend		25,090,613		25,090,613
		546,634,236		366,224,351
Total equity and liabilities		1,383,579,459		1,315,637,955
CONTINGENCIES AND COMMITMENTS	21

The annexed notes, from 1 to 40, form an integral part of these financial statements.

OWAIS G. HABIB

Chief Executive Officer

JAMSHED ALI KHAN

Chief Financial Officer

GAFFAR A. HABIB

Chairman

Iabib Rice Products Ltd.

STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED JUNE 30, 2025

	NOTE	2025 RUPEES	2024 RUPEES
Sales - net	22	2,136,281,090	2,340,411,980
Cost of goods sold	23	(1,966,289,863)	(2,150,019,672)
Gross profit		169,991,227	190,392,308
Distribution costs	24	(159,980,837)	(164,275,682)
Administrative expenses	25	(141,134,524)	(137,910,995)
Other expenses	26	(1,635,742)	(541,048)
Other income	27	17,166,129	76,050,793
Finance costs	28	(7,562,593)	(18,016,326)
Loss before levies, minimum tax and final tax		(123,156,340)	(54,300,950)
Levies, minimum tax and final tax	29	(26,214,276)	(29,303,533)
Loss after levies, minimum tax and final tax		(149,370,616)	(83,604,483)
Taxation	30	(6,341,379)	(8,829,183)
Net loss for the year		(155,711,995)	(92,433,666)
Loss per share - basic and diluted	31	(3.89)	(2.31)

The annexed notes, from 1 to 40, form an integral part of these financial statements.

OWAIS G. HABIB

Chief Executive Officer

JAMSHED ALI KHAN

Chief Financial Officer

GAFFAR A. HABIB

Chairman

Iabib Rice Products Ltd.

STATEMENT OF OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED JUNE 30, 2025

2025

RUPEES

2024

RUPEES

Net loss for the year (155,711,995) (92,433,666)

Other comprehensive income - -

Total comprehensive loss for the year (155,711,995) (92,433,666) The annexed notes, from 1 to 40, form an integral part of these financial statements.

OWAIS G. HABIB

Chief Executive Officer

JAMSHED ALI KHAN

Chief Financial Officer

GAFFAR A. HABIB

Chairman

Iabib Rice Products Ltd.

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED JUNE 30, 2025

Particulars	Issued, subscribed and paid -up capital	Reserves				Total Equity
		Capital reserves	Revenue reserves		Total Reserves
		Share premium	General reserve	Unappropriated profit

Rupees

As at 30 June 2023	200,000,000	10,000,000	50,000,000	841,847,270	901,847,270	1,101,847,270
Transaction with owners Final dividend @ 30% for the year ended 30 June 2023	-	-	-	(60,000,000)	(60,000,000)	(60,000,000)
Net loss for the year	-	-	-	(92,433,666)	(92,433,666)	(92,433,666)
Other comprehensive income	-	-	-	-	-	-
Total comprehensive loss for the year	-	-	-	(92,433,666)	(92,433,666)	(92,433,666)
As at 30 June 2024	200,000,000	10,000,000	50,000,000	689,413,604	749,413,604	949,413,604
Net loss for the year	-	-	-	(155,711,995)	(155,711,995)	(155,711,995)
Other comprehensive income	-	-	-	-	-	-
Total comprehensive loss for the year	-	-	-	(155,711,995)	(155,711,995)	(155,711,995)
As at 30 June 2025	200,000,000	10,000,000	50,000,000	533,701,609	593,701,609	793,701,609

The annexed notes, from 1 to 40, form an integral part of these financial statements.

OWAIS G. HABIB

Chief Executive Officer

JAMSHED ALI KHAN

Chief Financial Officer

GAFFAR A. HABIB

Chairman

Iabib Rice Products Ltd.

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2025

NOTE

2025

RUPEES

2024

RUPEES

CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from / (used in) operations	32	28,130,979	(180,388,995)
Taxes paid		(36,759,531)	(48,217,132)
Finance costs paid		(3,792,532)	(3,452,944)
Long term deposits - net		(1,061,249)	-
		(41,613,312)	(51,670,076)
Net cash used in operating activities		(13,482,333)	(232,059,071)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure		(114,537,458)	(15,995,839)
Investments - net		254,450	193,524,864
Profit on term receipts and interest savings accounts received		17,167,810	44,989,946
Dividend income received - mutual funds		8,279	5,297,592
Proceeds from disposal of operating fixed assets		-	78,993
Net cash (used in) / generated from investing activities		(97,106,919)	227,895,556
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid		-	(70,642,100)
Long term financing obtained		38,000,000	-
Lease rentals paid		(16,999,354)	(15,477,451)
Net cash generated from / (used in) financing activities		21,000,646	(86,119,551)
Net decrease in cash and cash equivalents		(89,588,606)	(90,283,066)
Cash and cash equivalents at beginning of the year		100,732,383	191,015,449
Cash and cash equivalents at end of the year	15.3	11,143,777	100,732,383

The annexed notes, from 1 to 40, form an integral part of these financial statements.

OWAIS G. HABIB

Chief Executive Officer

JAMSHED ALI KHAN

Chief Financial Officer

GAFFAR A. HABIB

Chairman

Iabib Rice Products Ltd.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2025

THE COMPANY AND ITS OPERATIONS
Habib Rice Products Limited (the "Company") is a public company limited by shares, incorporated in Pakistan on 10 July 1980 and is listed on the Pakistan Stock Exchange. The Company is engaged in the production of rice based starch sugar and proteins. The registered office of the Company is situated at 2nd Floor, UBL Building, I.I Chundrigar Road, Karachi, Sindh.
1. Geographical Location and Address of Business Units / Plant:
  Location Purpose Covered area
  Plot # A-25, A-26, A-27 Quetta Industrial Area Leasehold Land 1.21 acres and Trading Estate, Quetta, Balochistan
  Hub Industrial Area, District Lasbela, Balochistan Leasehold Land 42 acres Hub Industrial Area, District Lasbela, Balochistan Production Plant 32 acres
  Phase 6, Pakistan Defence Officers Housing Authority, Admin Office -Karachi, Sindh
  Plot # 92, New Anaj Mandi, Miro Khan Road, Warehouse 0.0436 acres Quetta Road, Larkana, Sindh
  House # 4F, 7/3 Nazimabad # 4 near Hadi Market, Sales office -Karachi, Sindh and warehouse
  Plot # S/42, SITE, Karachi, Sindh Leasehold land 1 acre
BASIS OF PREPARATION
1. Statement of compliance
  These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:
  - International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
  - Provisions of and directives issued under the Companies Act, 2017.
  Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS Standards, the provisions of and directives issued under the Companies Act, 2017 have been followed.
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Iabib Rice Products Ltd.

New Standards And Interpretations to Approved Accounting Standards
1. Standards, interpretations and amendments to published accounting and reporting standards that are effective in the current year
  There are certain amendments and improvements to approved accounting and reporting standards that are applicable to the Company for the financial year beginning on July 1, 2024; however, these are considered not to have any material impact on the Company's financial reporting and operations, and therefore have not been presented in these financial statements.
2. Standards, interpretations and amendments to published accounting and reporting standards that are not yet effective and have not been early adopted by the Company
  There are standards and certain amendments or improvements to approved accounting and reporting standards that are not yet effective and have not been early adopted by the Company for the financial year beginning on July 1, 2024. These are not expected to have any material impact on the Company's financial reporting and operations, and therefore have not been presented in these financial statements.
Basis of measurement
These financial statements have been prepared under the historical cost convention, except for certain items as disclosed in the relevant accounting policies below.
Functional and presentation currency
These financial statements are presented in Pakistan Rupee (Rs. / Rupees) which is the Company's functional currency. Amounts presented in the financial statements have been rounded off to the nearest of Rs. / Rupees, unless otherwise stated.
Key judgements and estimates
The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
1. Useful lives, residual values and depreciation method of property, plant and equipment (note 3.1 & 4)
2. Assessment of the lease term , discount rate and depreciation method of right of use of assets (note 3.2 & 5)
3. Provision for slow moving and obsolete inventory (note 3.5 and 3.6)
4. Stock in trade: The Company reviews the net realizable value of stock-in-trade at each reporting date to assess any diminution in the respective carrying values (note 3.6)
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Iabib Rice Products Ltd.

Provision (note 3.10)
Current income tax expense, provision for current tax and recognition of deferred tax asset - (note 3.15)
Contingencies (note 3.20)

MATERIAL ACCOUNTING POLICY INFORMATION
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.
1. Property, plant and equipment
  1. Operating fixed assets Initial recognition
    The cost of an item is recognised as an asset if and only if the future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. Measurement Operating fixed assets are stated at cost less any accumulated depreciation and any accumulated impairment losses except leasehold land which is stated at cost. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
    Subsequent Cost
    Expenditures incurred to replace a significant component of an item of property, plant and equipment is capitalised and the asset so replaced is retired. Other subsequent expenditure is capitalised only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the items can be measured reliably. All other expenditures (including normal repairs and maintenance) are recognised in the unconsolidated statement of profit or loss as an expense when these are incurred.
    Depreciation
    Depreciation is charged using reducing balance method and rate of depreciation on above are specified in the note 4 of these financial statements. Depreciation on additions is charged from the quarter the asset is available for use and no depreciation is charged in the quarter of disposal. Depreciation methods, useful lives and residual values of each part of property, plant and equipment that is significant in relation to the total cost of the asset are reviewed, and adjusted if appropriate, at each reporting date.
    Gains or losses on disposal
    The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment, and is recognized in the statement of profit or loss.
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Iabib Rice Products Ltd.

1. Capital work-in-progress
  These are stated at cost less accumulated impairment losses, if any. All expenditure connected with specific assets incurred during installation and construction period, including advances are carried under this head. These are transferred to specific assets as and when these assets are available for use.
Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated using straight line method over the lease term. Right-of-use assets are subject to impairment. The depreciation rates used are stated in note 5 to the financial statements.
Impairment of non-financial assets
The carrying amounts of non-financial assets other than inventories and deferred tax assets are assessed at date of statement of financial position to ascertain whether there is any indication of impairment. If such an indication exists, the asset's recoverable amount is estimated to determine the extent of impairment loss, if any. An impairment loss is recognised, as an expense in the statement of profit or loss. The recoverable amount is the higher of an asset's fair value less cost to disposal and value in use. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
1. Financial assets

On initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value through Other Comprehensive Income (FVOCI) or Fair Value through Profit or Loss (FVTPL). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Based on the business model of the Company, the financial assets of the Company are measured and classified as follows:

- Short-term investments in listed equity securities and mutual fund units are designated at FVTPL. These are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss.

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