Transmission of Annual Financial Statements for the Year Ended June 30, 2025

ANNUAL REPORT 2025

ICC Industries Limited

( Formerly ICC Textiles Limited )

COMPANY INFORMATION

Board of Directors • Mr. Javaid S. Siddiqi Chief Executive/Director

• Mr. Pervaiz S. Siddiqi Chairman/Director

• Mrs. Fauzia Javaid Director

• Mr. Salman Javaid Siddiqi Director

• Mr. Asim Pervaiz Siddiqi Director

• Mr. Arif Mahmud Khan Independent Director

• Mr. Naveed Hashim Rizvi Independent Director

  Audit Committee • Mr. Arif Mahmud Khan

• Mr. Salman Javaid Siddiqi

  Chairman Member

• Mr. Pervaiz S. Siddiqi Member

  HR&R Committee • Mr. Naveed Hashim Rizvi Chairman

• Mr. Pervaiz S. Siddiqi Member

• Mr. Asim Pervaiz Siddiqi Member

  Chief Financial Officer Company Secretary

• Mr. Javed Rashid

• Mr. Shahid Ali Ahmad

  Auditors • Reanda Haroon Zakaria Aamir Salman Rizwan & Company Chartered Accountants

  275, Block H-1, M.A. Johar Town, Lahore

  Bankers • MCB Bank Limited

  • Faysal Bank Limited

  • Bank AL Habib Limited

  • United Bank Limited

  • Allied Bank Limited

  • Habib Metropolitan Bank Limited

Legal Advisor • Imtiaz Siddiqi Associates

179/180-A, Scotch Corner, Upper Mall Scheme,

Lahore-Pakistan. Tel: 042-35758573-35758574

Fax: 042-35758572

Shares Registrar • Corplink (Pvt.) Ltd.

Wings Arcade, 1-K Commercial Model Town, Lahore.

Ph: 042-35916714, 35916719

Fax : 042-35869037

Registered Office Factory

242-A, Anand Road, Upper Mall, Lahore. Ph: 042-35751765-67

Fax : 042-35789206

Website:https://www.icctextiles.com

32-K.M. Lahore-Multan Road, Sunder, Distt. Lahore. Ph: 042-35975426-27

Fax : 042-35975428

NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that 37thAnnual General Meeting of the Company will be held at the registered office of the Company, 242-A, Anand Road, Upper Mall, Lahore on Tuesday October 28, 2025 at 10:30 a.m. to transact the following business:

ORDINARY BUSINESS

1. To confirm the minutes of Annual General Meeting held on October 28, 2024.

2. To receive consider and adopt the audited financial statements of the Company for the year ended 30thJune 2025 together with the Directors and Auditors Report thereon.

3. To appoint statutory auditors for the year ending 30thJune 2026 and to fix their remuneration.

4. To transact any other business with the permission of the Chair.

Lahore By Order of the Board

October 06, 2025

NOTES:

`

Company Secretary

1. The members register will remain closed from October 22, 2025 to October 28, 2025 (both days inclusive). Transfers received at Share Registrar Office, Corplink (Private) Limited, Wings Arcade, 1-K, Commercial, Model Town, Lahore by the close of business on October 21, 2025 will be entertained.

2. A member eligible to attend and vote at this meeting may appoint another member as proxy to attend and vote in the meeting. Proxies in order to be effective must be received by the company at the registered office not later than 48 hours before the time for holding meeting.

3. Any individual Beneficial Owner of CDC, entitled to attend and vote at this meeting, must bring his/her original CNIC or Passport, Account and participant’s I.D numbers, to prove his/her identity, and in case of proxy must enclose and attested copy of his/her CNIC or Passport. Representatives of corporate members should bring the usual documents required for such purpose. The account/sub account holders of CDC will further have to follow the guidelines as laid down in Circular No.1 of 2000 dated January 26, 2000 issued by Securities & Exchange Commission of Pakistan

4. In accordance with the provisions of section 223 and 237 of the Companies Act, 2017, the audited financial statements of the Company for the year ended on June 30, 2025 are available on the Company’s website (https://www.icctextiles.com.pk).

5. Shareholders are requested to immediately notify the change in address, if any to the Company’s Share Registrar M/s Corplink (Pvt.) Limited Wings Arcade, 1-K, Commercial, Model Town, Lahore.

6. All shareholders who had not yet submitted the valid copies of CNIC, NTN certificate(s) and IBAN are requested to send the same to the Share Registrar. Shareholders of the Company who holds shares in scrip-less form on Central Depository Company of Pakistan Ltd. (CDC) are requested to update their IBAN details directly to their CDC participant (brokers/CDC) Investor Account Services.

7. As per section 72 of the Companies Act, 2017, every existing company shall be required to replace its physical shares with book-entry form in a manner as may be specified and from the date notified by the Commission, within a period not exceeding four year from the commence of this Act i.e., May 30, 2017. The Shareholders having physical shareholding may open CDC Sub-account with any of the broker or investor account directly with CDC to place their physical share into scrip less form.

8. Shareholders who could not collect their dividend/physical shares are advised to contact our Registered Office situated at 242-A, Anand Road, Upper Mall, Lahore to collect/enquire about their unclaimed dividend or shares, if any.

9. No gifts will be distributed at the meeting.

10. Members can also avail video conference facility. In this regard, please fill the following form and submit to registered address of the company 10 days before holding of the Annual General Meeting.

If the company receives consent from member holding in aggregate 10% or more shareholding residing at a geographical location, to participate in the meeting through video conference at least 10 days prior to date of meeting, the company will arrange video conference facility in the city subject to availability of such facility in that city.

The Company will intimate members regarding venue of video conference facility at least 5 days before the date of the Annual General Meeting along with complete information necessary to enable them to access the facility.

“I/WE, of being a member of ICC Industries Limited, holder of

Ordinary Shares as per Register Folio No. hereby opt for video conference facility at Email ”

Signature of Member

The Company will intimate to the Members the venue of the video-link facility at least five (5) days before the date of the Meeting along with all the information necessary to enable them to access the facility.

Further, in compliance of circular no.4 of the 2021 dated February 15, 2021, members can opt to attend the AGM through Video-Link. Members who are willing to attend and participate at the AGM through Video-Link are required to register their particulars by sending an email at “shares@icctextiles.com“ Such Members are requested to register by providing their credentials

as follows with subject “Registration for ICCIL’s AGM 2025”:

Video-Link and login will be shares with only those members whose emails containing all the required particulars are received at the given email at least 48 hours before the time of AGM.

ICC Industires Limited

(Formerly ICC Textiles Limited )

CHAIRPERSON’S REVIEW REPORT ON BOARD PERFORMANCE

ICC Industries Limited (“the Company”) has a seven member Board of Directors (“the Board”) and the composition of the Board depicts reasonable balance of executive, non executive, independent and female directors having requisite skills, competence and knowledge to lead the company.

The Board has formed various committees like Audit Committee , Human Resource Committee. The Audit Committee reviewed the internal control and appropriateness of the financial statements and ensured that the financial statements fairly represents the financial position of the company. While the HR&R Committee overview the HR policy.

The Board together with its committees was fully involved in policy and decision making process.

During the financial year 2025 the BOD met six times. All its members are committed to serve the company with the same zeal, while taking into consideration all material facts, information and circumstances in a manner to ensure that appropriate decisions.

To evaluate the performance of the Board, the Board has put in place mechanism of evaluation of the performance of the Board. Board’s overall performance and effectiveness has been found satisfactory..

LAHORE: PERVAIZ S. SIDDIQI

October 06, 2025 Chairman

ICC Industries Limited

(Formerly ICC Textiles Limited )

Directors’ report to the members

On behalf of the board of directors, we take pleasure in presenting the audited financial statements of the company pertaining to the financial year ended on June 30, 2025.

Financial Highlights

The company suffered an after tax loss of Rs. 16.538 million and registered a revenue of Rs. 50.148 million as against an after tax loss of Rs. 11.648 million and revenue of Rs.52.974 million in the preceding period.

Rupees

• Revenue 50,148,461

• Gross profit 30,057,630

• Operating loss 10,076,609

• Finance Cost

• Change in fair value of investment property

  136,876

  4,256,101

• Loss after tax 16,538,392

• Accumulated losses 777,988,850

• Earning / (Loss) per share (0.55)

Period under Review

The following transactions / factors influenced the company’s financial position and performance during this period:

• Revenue decreased by Rs. 2.826 million, from Rs. 52.974 million to Rs.

  50.148 million, mainly due to reduced rental occupancy of our factory premises during the year mainly attributed to country’s overall business environment.

• Admin expenses increased by Rs. 2.379 million largely driven by enhanced minimum wage requirements.

Future Strategy and Prospects

For the financial year 2026, the domestic economy is expected to improve. Macroeconomic conditions show signs of improvement: inflation is easing, the policy rate has reduced, and external support has strengthened stability. However, political polarization, regional security concerns with its neighbor, and global market volatility remain risks to investor confidence. Against this backdrop, our strategy remains prudent. Presently, in a significant portion of our covered area we are providing warehousing services, hence we anticipate improved performance in the coming periods.

Contingencies and commitments

No material changes and commitments affecting the financial position of the Company have occurred between the end of the financial year to which the statement of financial

position relates and the date of Directors’ Report, except as disclosed in the financial statements.

Outstanding Statutory Dues

There are no outstanding statutory payments on account of taxes, duties, levies and charges which are outstanding as on June 30, 2025 except for those disclosed in the financial statements.

Corporate Social Responsibility

Your company is a responsible corporate citizen and fully recognizes its responsibility towards community, employees and environment.

Gender Pay Gap

At our company male and female employees were working, however, after suspension of our textile operations in 2018 and subsequently sale of all textile machinery, presently we are in the business of renting out our vacant factory buildings and labour colony. According to our business requirements, we have only 28 employees mainly comprising of security guards, electricians and labour having no female employee, considering nature of jobs.

Corporate and Financial Reporting Framework

In order to follow the SECP code of corporate governance, the following statements are given:

Presentation of Financial Statements

The financial statements, prepared by the management of the Company, fairly present its state of affairs, the result of its operations, cash flows and changes in equity.

Books of Accounts

Proper books of accounts have been maintained by the Company.

Accounting Policies

Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment.

International Financial Reporting Standards (IFRS)

International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of the financial statements.

Internal Control System

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

Going Concern

Without qualifying their opinion, Company’s auditors, in their report, have drawn your attention to note 1.2 to the financial statements, which describes that the Company’s current liabilities exceeded its current assets by Rs. 270.829 million, and its accumulated losses stood at Rs. 777.989 million, whereas, current year after tax loss amounts to Rs. 16.538 million. These conditions indicate the existence of a material

uncertainty that may cast significant doubt about the entity’s ability to continue as a going concern.

These financial statements have, however, been prepared on going concern basis on the grounds that the company will be able to achieve satisfactory levels of profitability in the future based on plan drawn up by the management for this purpose and bringing its liabilities to serviceable levels and availability of the adequate working capital from its lenders and sponsors.

To substantiate its going concern assumption the directors had implemented a plan to consolidate the company’s position by repaying the banks’ borrowings through sponsors’ loans and sale of inefficient textile machinery and renting out vacant buildings to generate revenue. In this regard, the company has taken steps mentioned in note 1.2 ( i – v ) to the financial statements.

Presently company is engaged in the business of renting out its covered area and has a potential to generate substantial revenue. Therefore, there are no significant doubts about company's ability to continue as a going concern.

Corporate Governance

There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations of stock exchanges.

Operating and Financial Data

Key operating and financial data of last six years is as under:

SIX YEARS AT A GLANCE

( Rs. in million )

2020 2021 2022 2023 2024 2025

Staff Retirement Benefits

Value of unfunded gratuity scheme, based on actuarial valuation, at the period end was Rs.

45.397 million (2024: Rs. 38.294 million).

Remuneration of Directors

Remuneration of directors is determined by the company in general meeting. Presently only chief executive is entitled for remuneration as mentioned in note No. 34 to the financial statements. No remuneration is being paid to other directors.

Board and Committees Meetings

Composition of board and its committees is mentioned below. During the year July 2024 to June 2025, Five meetings of the Board of Directors, Seven meetings of audit committee and One meeting of HR & R committee were held.

Attendances by the Directors were as follows:

Board of Directors

Audit Committee

Pattern of Shareholding

The Pattern of shareholding as required by the Code of Corporate Governance is attached with this report.

Trading of Company Shares

During the financial year, there was no trading in shares of the company by Directors, Company Secretary, CEO, CFO and Executives of the Company (including their spouses and minor children).

Audit Committee

The Audit Committee comprises 3 members, of whom 1 is Independent Director and 2 are non-executive directors.

HR And Remuneration Committee

The HR and Remuneration Committee comprise 3 members, of whom 1 is Independent Director and 2 are non-executive directors.

Auditors

M/S. Reanda Haroon Zakaria Aamir Salman Rizwan & Company Chartered Accountants will retire at the conclusion of the 37thAnnual General Meeting. They have expressed their willingness for reappointment. The Audit Committee has recommended their reappointment, as external auditors of the company for the year ending on June 30, 2026.

Dividend

Considering the results for the year, the board is not recommending disbursement of any dividend for the period ended June 30, 2025.

Acknowledgement

As always, our dedicated work force deserves appreciation for good work.

.

For and on behalf of the Board of Directors

LAHORE: PERVAIZ S. SIDDIQI SALMAN JAVAID SIDDIQI

October 06, 2025 Director Director

ICC Industries Limited

Statement of Compliance with Listed Companies (Code of Corporate Governance) Regulations, 2019

Name of Company : ICC Industries Limited

Year Ending : June 30, 2025

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

1. The total number of directors are seven as per the following:

   1. Male: 6

   2. Female: 1

2. The composition of board is as follows:

   Category Names

   Independent Directors	Mr. Naveed Hashim Rizvi Mr. Arif Mahmud Khan
   Executive Director	Mr. Javaid S. Siddiqi
   Non-Executive Directors	Mr. Pervaiz S. Siddiqi Mr. Salman Javaid Siddiqi Mr.Asim Pervaiz Siddiqi
   Female Director	Mrs. Fauzia Javaid

   The Board comprises of minimum number of members which is seven (7). Requirement of independent directors are higher of two (2) or one third of the Board. The fraction of 0.33 for independent directors has not been rounded up as one (1), due to the reason that, considering nature and volume of company’s business, the existing independent directors with requisite skills and knowledge are sufficient to take independent decisions for the company.

3. The directors have confirmed that none of them is serving as a director on more than seven listed companies, including this company;

4. 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;

5. 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 significant policies along with their date of approved or updating is maintained by the Company;

6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by board/shareholders as empowered by the relevant provisions of the Act and these Regulations;

7. 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 the Act and the Regulations with respect to frequency, recording and circulating minutes of the meeting of board;

8. The Board have a formal policy and transparent procedures for remuneration of directors in accordance with the Act and these Regulations;

9. One director, Mr. Salman Javaid Siddiqi has completed his directors training program, whereas two directors i,e Mr. Javaid S. Siddiqi and Mr. Pervaiz S. Siddiqi are exempt from the requirements of the directors training program.. The Board will arrange directors training program for remaining directors in near future;

10. 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;

11. Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before approval of the board;

12. The board has formed committees comprising of members given below:

    1. Audit Committee

       1. Mr. Arif Mahmud Khan - Chairman/Member

       2. Mr. Pervaiz S. Siddiqi - Member

       3. Mr. Salman Javaid Siddiqi - Member

    2. HR & Remuneration Committee

       1. Mr. Naveed Hashim Rizvi - Chairman/Member

       2. Mr. Pervaiz S. Siddiqi - Member

       3. Mr. Asim Pervaiz Siddiqi - Member

13. The terms of reference of the aforesaid committees have been formed, documented and advised to the committee for compliance;

14. The frequency of meetings (quarterly/half yearly/yearly) of the committee were as per following :

    1. Audit Committee - 07 meetings

    2. HR & Remuneration Committee - 01 meeting

15. The Board has set up an effective internal audit function which are considered suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the company;

16. 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, parents, dependent and independent children) of the chief executive officer, chief financial officer, head of internal audit, company secretary or director of the company;

17. 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;

18. We confirm that all other requirements of the Regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulation have been complied with.

19. Explanation for non compliance with requirements, other than regulations 3, 6, 7, 8, 27, 32, 33 & 36 :

LAHORE:

October 06, 2025 PERVAIZ S. SIDDIQI

Chairman

SALMAN JAVAID SIDDIQI

Director

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audit

{i)

Investment property

Re&t to aote lb to tlta anneTud Hnnncial statements. The Gomp owns freehold land and building.

A• «t du • tio, zoz6, to fair value of

bMion, zepzeaontiag 9T' a£t1te

£•-p • NziaJ aaoete be at tbat

date.

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• evaluating the qualiEmtions, experience

  and competence of the external valuer

• eva4uatiog tbe saJuatioa lthodalogy uaed by the aztezoaJ vAuer aad aaee wbetbsr it ie io a‹xo wttb the

asarte. The Investment property ia

’ "°

vtluatien carried out by independent

qua1ided prafeestoaa3 s'aJuer witb

ct •oge• ia tbe ata.tomeat

in the valuation ofdivestment p ;

iov‹ UemnCpnepertyduziogtbeyeao.

end

• evatuetiog tke adeguaof'dJoc feces in 6nancial atateoieots.

pzotzertiee asa key avdit a•aue because ¥Ize detezmiantioa oftbe

aad izt detazadzñog tbe oadezjyiog

oferror or potential management biac aodbecause the veluatioaa eve sensitive to tbe key e•euzaptiaas

financial vtetnme d M Company Ins aign&ccnc related party,

iatezeat See 8oaacioC aaiountinc he. 78t,8S8,4S1/• f'zoza its dlseca›ra.

We identified the exxnirggy and

mmpletenees ct the rotated parly

• obtaining an undarataading of thi Compapp'a policies, procee oand

  calmed pax1gea. oktauziog apps xeooadñzg aod diaclaauzo ofrelated pezty tfnnanctionu;

• mvitwnp Umaofloan iYoni

  REANDA

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  BaaposstbltlttesofBun gamcst M Boxed ofDirectors for the Flnnnotal Stetimenta

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  P a g e 3 | 5

  REANDA

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ability u continue ana goinp cone Ifwe conclude thasi material u cert inQ axi•ta,

we are requimd to draw attention in eur eudit«r’e to the deleted dieelov repe in

Our e ncluaienc are b on the audic evideom ohtainad up to the date ofone auditor's

ionludlnJ the diedoauree, and whether the 6oenci•1 stntemente represent thu underlying tranmctio o and events ina manner that achieves fair presentation.

We ‹xi-mu•ie•te with thu ixnrd ofdireotorn r6gnrdlng, annng odor matters, the planned

aod titxéog of‘the audit aod aégnffzmnt audit god1rtge, inctudizzg azty algzfi£zeaat de6nieaeiaa io

cam«l coobal tbat we identify duziog one audit.

ethical requirements regezding independence, and to m nmunicato with them all ialAtionahips

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Tbs c•easaa»at t›«rmer oo tea audit zeeulñae iatbia ioéepeadaat auditoz'a zaport la Abaa4

Date: Oetobec , 20â6 UDIN AIt20 10884W

ICC INDUSTRIES LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2025

SHARE CAPITAL AND RESERVES

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

DIRECTOR

DIRECTOR

CHIEF FINANCIAL OFFICER

ICC INDUSTRIES LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2025

DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

ICC INDUSTRIES LIMITED

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED JUNE 30, 2025

2024

Rupees

2025

Rupees

DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

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

DIRECTOR

DIRECTOR

CHIEF FINANCIAL OFFICER

ICC INDUSTRIES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED JUNE 30, 2025

-------------------Rupees-------------------------

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

DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

ICC INDUSTRIES LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2025

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations

Finance cost paid Taxes paid Gratuity paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Decrease in long term loans and advances Interest received

Net cash generated from investing activities 705 9,412

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from loans obtained from directors Repayment of short term borrownings

DIRECTOR DIRECTOR CHIEF FINANCIAL OFFICER

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

DIRECTOR

DIRECTOR

CHIEF FINANCIAL OFFICER

ICC INDUSTRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2025

1. STATUS AND NATURE OF BUSINESS

   1.1

   1.2

   ICC Industries Limited ( Formerly ICC Textiles Limited) "the Company" was incorporated in Pakistan on May 25, 1989 as a public limited company under the repealed Companies Ordinance, 1984 (Repealed with the enactment of the Companies Act, 2017 on May 30, 2017). The shares of the Company are listed on Pakistan Stock Exchange. The principal activity of the Company is renting out vacant buildings and/ or open area of the Company's premises. The registered office of the Company is situated at 242-A, Anand Road, Upper Mall, Lahore and the Company's another premises is located at 32-Km Multan Road, Sundar, Lahore.

   During the year ended June 30, 2025, the Company incurred an after tax loss of Rs. 16.538 million (2024: Rs. 11.648 million) and has accumulated loss of Rs. 777.989 million (2024: Rs. 762.666 million). As at the year end the current liabilities exceeded its current assets by Rs. 270.829 million (2024: Rs. 261.819 million) at the year end.

   These conditions indicate existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as going concern and therefore, the Company may be unable to realize its assets and discharge its liabilities in normal course of business. Continuation of the Company as a going concern is dependent on its ability to attain satisfactory levels of profitability and liquidity in the future by bringing its liabilities to serviceable levels and availability of adequate working capital through continued support from its customers and :

   1. the principal lenders of the Company; and

   2. the sponsors of the Company.

      These financial statements have been prepared on going concern basis on the grounds that the Company will be able to achieve satisfactory levels of profitability and liquidity in the future based on the plans drawn up by the management for this purpose, bringing its liabilities to serviceable levels and availability of the adequate working capital from its lenders and sponsors.

      To substantiate its going concern assumption:

      1. In order to consolidate the Company's resources, due to uncertainty in securing industrial gas connection, which was essential for cheaper and continuous gas based electricity, the Company had disposed off all its looms.

      2. The Company has rented out its factory buildings and labor colony to generate cash flows;

      3. Bank borrowings had been fully repaid;

      4. Directors of the Company have injected interest free loans to the company amounting to Rs.761.328 million;

      5. During 2013, the Board of Directors of ICC (Private) Limited, an associated undertaking, had written off

         following outstanding loans advanced to the Company:

         • Long term interest free loans amounting to Rs. 189.150 million with carrying value in ICC Industries Limited books, amounting to Rs. 48.801 million; and

         • Short term interest bearing loans amounting to Rs. 30.850 million.

   The financial statements consequently do not include any adjustment relating to the realization of the assets and liquidation of its liabilities that might be necessary would the Company be unable to continue as a going concern.

2. BASIS OF PREPARATION

   1. Statement of Compliance

      These financial statements have been prepared in accordance with 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 Standard, the provisions of and directive issued under the Companies Act, 2017 have been followed.

   2. Standards, Interpretations and Amendments to the Approved Accounting Standards

      The following standards, amendments and interpretations are effective for the year ended June 30, 2025. These standards, amendments and interpretations are either not relevant to the Company’s operations or did not have significant impact on the financial statements other than certain additional disclosures.

      ICC INDUSTRIES LIMITED

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE YEAR ENDED JUNE 30, 2025

      Effective date (annual reporting periods beginning on

      or after)

      Amendments to IFRS 7 'Financial Instruments: Disclosures' - Supplier finance arrangements

      Amendments to IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ - Definition of Accounting Estimates

      Amendments to IAS 1 'Presentation of Financial Statements' - Classification of liabilities as current or non-current

      Amendments to IAS 1 'Presentation of Financial Statements' - Non-current liabilities with covenants

      Amendments to IAS 7 'Statement of Cash Flows' - Supplier finance arrangements

      January 1, 2024

      January 1, 2024

      January 1, 2024

      January 1, 2024

      January 1, 2024

      The Company adopted the narrow-scope amendments to the International Accounting Standard (lAS) 1, Presentation of Financial Statements which have been effective for annual reporting periods beginning on or after 1 January 2024. Although the amendments did not result in any changes to accounting policy themselves, they impacted the accounting policy information disclosed in the financial statements.

      The amendments require the disclosure of ‘material’ rather than ‘significant’ accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting the Company to provide useful entity-specific accounting policy information that users need to understand other information in the financial statements.

      Management reviewed the accounting policies and updates to the information disclosed in Note 4 Material accounting policies in certain instances in line with the amendments and concluded that all its accounting policies are material for disclosure.

   3. Disclosure detailing shariah and conventional elements

      During the year, the Securities and Exchange Commission of Pakistan (SECP) has made amendments to the Fourth Schedule to the Companies Act, 2017 whereby certain disclosure requirements have been introduced, which have been presented in note 37 to these financial statements.

   4. New accounting standards, amendments and interpretations that are not yet effective

      The following standards, amendments and interpretations are only effective for accounting periods, beginning on or after the date mentioned against each of them. These standards, amendments and interpretations are either not relevant to the Company’s operations or are not expected to have significant impact on the Company’s financial statements other than certain additional disclosures.

      Effective date (annual reporting periods beginning on or after)

      Amendments to IFRS 7 'Financial Instruments: Disclosures' - Amendments regarding the classification and measurement of financial instruments

      Amendments to IFRS 9 'Financial Instruments' - Amendments regarding the classification and measurement of financial instruments

      Amendments to IAS 21 'The Effects of Changes in Foreign Exchange Rates' - Lack of Exchangeability

      IFRS 17 Insurance Contracts

      Amended by Annual Improvements to IFRS Accounting Standards IFRS 7 Financial Instruments: Disclosures (Amendments)

      January 01, 2025

      January 01, 2026

      January 01, 2025

      January 01, 2026

      January 01, 2026

      January 01, 2026

      ICC INDUSTRIES LIMITED

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE YEAR ENDED JUNE 30, 2025

      IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information

      IFRS S2 Climate-related Disclosures

      July 01, 2027

      July 01, 2027

      IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’ has been issued by IASB effective from July 01, 2009. However, it has not been adopted yet locally by Securities and Exchange Commission of Pakistan (SECP).

      IFRS 17 - ‘Insurance contracts’ has been notified by the IASB to be effective for annual periods beginning on or after January 1, 2023. However SECP has notified the timeframe for the adoption of IFRS - 17 which will be adopted by January 01, 2026.

      IFRS 18 ‘Presentation and Disclosures in Financial Statements’ has been issued by IASB effective from January 01, 2027. However, it has not been adopted yet locally by SECP.

      IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’ has been issued by IASB effective from January 01, 2027. However, it has not been adopted yet locally by SECP

   5. Basis of measurement

      These financial statements have been prepared under the historical cost convention except for:

      • staff retirement benefits which are measured at present value of defined benefit obligations (refer Note 9.5);

      • Investment property at fair value and machinery at revalued amounts (refer Note 4.2 & 4.3);

      • Provision for taxation and recognition of deferred tax-refer note 4.5;

      • Impairment of financial assets -refer note 4.9;

      • Surplus on Revaluation of Property and equipment-refer note 7.

   6. Critical accounting estimates and judgments

      The preparation of financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to the estimates and assumptions turning out to be wrong. Estimates and judgments are continually evaluated and are based on historical experience, including expectation of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the Company's financial statements or where judgments were exercised in application of accounting policies are discussed below:

      Income taxes

      In making the estimates for income taxes currently payable by the Company, the management looks at the current income tax law and the decisions of appellate authorities on certain issues in the past.

      Trade debts and other receivables

      Trade debts and other receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing component in which case such are recognized at fair value. The Company holds trade debts with objective of collecting contractual cash flows and therefore, measures its trade debts subsequently at amortized cost using the effective interest method. The Company reviews annually its trade debts for impairment.

      Property and equipment

      The Company's management determines the estimated useful lives and related depreciation charge for its Property and equipment. The estimates for revalued amounts of different classes of Property and equipment are based on valuation performed by external professional valuers and recommendations of technical teams of the Company. The said recommendation also includes estimates with respect to residual values and depreciable lives. Further, the Company reviews its assets for possible impairment on an annual basis. Any change in use of assets in future years might affect carrying amounts of the respective item of Property and equipment with a corresponding effect on the depreciation charge and impairment.

      ICC INDUSTRIES LIMITED

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE YEAR ENDED JUNE 30, 2025

      Stores, spare parts and loose tools

      The Company's management reviews net realizable value (NRV) and impairment of stores, spare parts and loose tools to assess any diminution in the respecting carrying values and wherever required provision for NRV/ impairment is made. The difference in provision, if any, is recognized in statement of profit or loss for the year.

      Staff retirement benefits

      Certain actuarial assumptions have been adopted as disclosed in Note 9.5 to the financial statements for the valuation of present value of defined benefit obligation. Any changes in these assumptions might affect unrecognized gains and losses in those years.

      Provision

      The Company's management uses assumptions and estimates in the assessment of provision.

      Investment property

      Fair value of investment property is reviewed on yearly basis. The effect of any changes in estimate accounted for on a prospective basis. Further, determining adjustments for any differences in nature, location and condition of the investment property involves significant judgment.

3. FUNCTIONAL AND PRESENTATION CURRENCY

   These financial statements are presented in Pak Rupees which is the Company's functional and presentation currency.

4. MATERIAL ACCOUNTING POLICIES INFORMATION

   1. Staff retirement benefits

      The Company operates an unfunded gratuity scheme ( defined benefit plan ) covering all eligible directors and employees, payable at cessation of employment. The liability is provided on the basis of actuarial valuation applying Projected Unit Credit (PUC) Actuarial Method. The Company has a policy of carrying out actuarial valuation on annual basis with the assistance of independent actuarial appraisers to cover the obligations under the scheme.

      Actuarial gains and losses are recognized in the other comprehensive income in the period in which they occur. Past-service costs are recognized immediately in the statement of profit or loss.

   2. Property and equipment

      Property and equipment are initially recognized at acquisition cost, including any costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by the Company's management.

      Furniture and fittings, vehicles, electrical appliances and office equipment

      Subsequently, furniture and fittings, vehicles, electrical appliances and office equipment are measured using cost model i.e. cost less subsequent accumulated depreciation and impairment losses, if any. Depreciation is charged to statement of profit or loss on diminishing balance method at the rates as disclosed in Note 14 so as to write off the depreciable amount of the assets over their estimated useful lives.

      Machinery

      Machinery is subsequently measured using revaluation model at revalued amounts less accumulated depreciation and impairment losses, if any. Any surplus on revaluation of machinery is credited to the surplus on revaluation of property and equipment account. Revaluation is carried with sufficient regularity to ensure that the carrying amount of assets does not differ materially from the fair value. To the extent of incremental depreciation charged on revalued assets, related surplus on revaluation of property and equipment (net of deferred tax) is transferred directly to accumulated loss.

      Depreciation on machinery is charged to statement of profit or loss on straight line method at rates disclosed in relevant Note 14 so as to write off the depreciable amount of these assets over their estimated useful lives.

      Depreciation on additions to property and equipment is charged from the date of acquisition/ capitalization and depreciation on assets disposed off during the year is charged up to the date of disposal.

      ICC INDUSTRIES LIMITED

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE YEAR ENDED JUNE 30, 2025

      Gain / loss on disposal of property and equipment is reflected in statement of profit or loss during the year in which they are incurred. Normal repairs and maintenance are charged to statement of profit and loss as and when incurred. Major renewals and improvements are capitalized.

      The assets' residual values and estimated useful lives are reviewed when revaluation of assets is performed and adjusted accordingly.

   3. Investment property

      Properties which are held to earn rentals or for capital appreciation or for both are classified as investment properties. Investment properties are initially recognized at cost including transaction costs. Subsequently, these are stated at their fair value. The fair value is determined annually by an independent professional valuer based on market values, being the estimated amount for which a property could be exchanged on the date of valuation between knowledgeable willing parties in an arm length transaction. Any gain or loss arising from a change in fair value is charged to the statement of profit or loss.

      When an item of property and equipment is transferred to investment property, following a change in its use, any difference arising at the date of transfer between the carrying amount of the item and its fair value is recognized in revaluation surplus of property, plant and equipment. Upon disposal, related revaluation surplus is transferred to retained earning. Any gain or loss arising at disposal is credited to statement of profit or loss.

      When an investment property becomes owner-occupied, it is reclassified as property and equipment and its fair value at the date of reclassification becomes its cost for accounting purposes for subsequent recording.

   4. Revenue recognition

      -Revenue is measured at the fair value of the consideration received or receivable. Revenue is generated through leasing out of investment properties under operating lease. Rental income derived from the leases is recognized on the straight line basis in accordance with the lease agreements. The revenue is recognized when the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Company.

   5. Taxation

      Current

      The charge for current taxation is accounted for in accordance with applicable provisions of Income Tax Ordinance 2001.

      Deferred

      Deferred income tax asset is recognized for all deductible temporary differences and carry forward of unused tax losses, if any, to the extent that it is probable that taxable profits will be available against which such temporary differences and tax losses can be utilized. Deferred tax liabilities are recognized for all major taxable temporary differences.

      Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantively enacted at the date of statement of financial position. Deferred tax is charged or credited to the statement of profit or loss, except in the case of items credited or charged to equity or OCI in which case it is included in equity or statement of other comprehensive income.

   6. Loan from Directors

      Borrowings from directors are recorded at the amount of proceeds received. In subsequent periods, borrowings are stated at amortized cost using effective yield method. Finance costs are accounted for on an accrual basis and are included in current liabilities to the extent of the amount remaining unpaid. In accordance with TR-32, interest free loans repayable at discretion of entity are carried at face values and are included in equity.

      OTHER ACCOUNTING POLICIES INFORAMTION

   7. Stores, spare parts and loose tools

      These are stated at lower of cost & net realizable value. Cost is determined by applying moving average method except goods in transit which are stated at lower of cost.

      ICC INDUSTRIES LIMITED

      NOTES TO THE FINANCIAL STATEMENTS

      FOR THE YEAR ENDED JUNE 30, 2025

      Net realizable value means estimated selling price in the ordinary course of business less costs necessarily to be incurred to make sales.

   8. Financial instruments

      1. Financial assets

         The Company classifies its financial assets at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of the Company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

         Financial assets of the Company are classified as follows:

         1. Financial assets at amortized cost

            Financial assets at amortized cost are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income from these financial assets, impairment losses, foreign exchange gains and losses, and gain or loss arising on derecognition are recognized directly in profit or loss account.

         2. Financial assets at fair value through other comprehensive income

            Financial assets at fair value through other comprehensive income are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

         3. Financial assets at fair value through profit or loss

         Financial assets at fair value through profit or loss are those financial assets which are either designated in this category or not classified in any of the other categories. A gain or loss on debt investment that is subsequently measured at fair value through profit or loss is recognized in profit or loss account in the period in which it arises.

         Financial assets are initially measured at cost, which is the fair value of the consideration given and received respectively. These financial assets and liabilities are subsequently remeasured to fair value, amortized cost or cost as the case may be.

         Any gain or loss on the recognition and de-recognition of the financial assets and liabilities is included in the statement of profit or loss account for the period in which it arises.

         Where an election is made to present fair value gains and losses on equity instruments in other comprehensive income there is no subsequent reclassification of fair value gains and losses to profit or loss account following the derecognition of the equity instruments.

         Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. Assets or liabilities that are not contractual in nature and that are created as a result of statutory requirements imposed by the Government are not the financial instruments of the Company.

         The Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach, which requires expected lifetime losses to be recognized from initial recognition of the receivables. The Company recognizes in profit or loss account, as an impairment gain or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date.

      2. Financial liabilities

All financial liabilities are recognized at the time when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities at amortized costs are initially measured at fair value minus transaction costs. Financial liabilities at fair value through profit or loss are initially recognized at fair value and transaction costs are expensed in the profit or loss account.