Transmission of Quarterly/Half Yearly Report for the Period Ended December 31, 2025

IDREES TEXTILE MILLS LIMITED

CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED DECEMBER, 2025

(UN-AUDITED)

COMPANY INFORMATION

BOARD OF DIRECTORS Mr. Rizwan Idrees Allawala

Mr. S. M. Mansoor Allawala Mr. Omair Idrees Allawala Ms. Aamnah Mansoor

Mr. Muhammad Beyaz Aftab Syed Masud Arif

Ms. Azra Yaqub Vawda

• Chairman

• Executive Director / CEO

• Executive Director

• Non - Executive Director

• Non - Executive Director

• Independent Director

• Independent - Director

  COMPANY SECRETARY CHIEF FINANCIAL OFFICER

  Syed Shahid Sultan

  Mr. Muhammad Jawaid

  AUDITORS

  AUDIT COMMITTEE

  M/s. BDO Ebrahim & Co.

  Chartered Accountants

  Ms. Azra Yaqub Vawda Syed Masud Arif

  Ms. Aamnah Mansoor

  Syed Shahid Sultan

• Chairperson

• Member

• Member

• Secretary

  HUMAN RESOURCE & REMUNERATION COMMITTEE

  Syed Masud Arif

  Ms. Aamnah Mansoor

  Ms. Azra Yaqub Vawda

  • Chairman

  • Member

  • Member

BANKERS

REGISTERED OFFICE

National Bank of Pakistan Bank Alfalah Limited

Habib Metropolitan Bank Ltd. Meezan Bank Ltd.

Bank of Punjab Ltd. BankIslami Pakistan Ltd. Askari Bank Limited

Dubai Islamic Bank Pakistan Ltd. Samba Bank Limited

Bank Al-habib Limited

United Bank Limited

6-C, Ismail Centre, 1st Floor, Central Commercial Area, Bahadurabad,

Karachi - 74800.

MILLS Kot Shah Mohammad,

Tehsil Nankana, District Nankana, Punjab. https://www.idreestextile.com

SHARES REGISTRAR M/S. JWAFFS Registrar Services (Pvt) Ltd.

407-408, 4th Floor, Al-Ameera Centre, Shahrah-e-Iraq, Saddar, Karachi.

DIRECTORS' REPORT

The directors of your Company are pleased to present their review along with condensed interim financial statements for the half year ended December 31, 2025 duly reviewed by the external auditors.

The principal activity of the Company is manufacturing, processing and sale of all kinds of yarn and home textile. During the period under review, there has not been any material change in the Company's business activities.

FINANCIAL AND OPERATIONAL PERFORMANCE

During the first half of FY26, the Company's turnover amounted to Rs. 2,151 million as compared to Rs. 2,476 million in the same period of last year (SPLY). Gross profit amounted to Rs. 220 million compared to Rs. 194 million in SPLY. Loss for the period amounted to Rs. 43 million compared to Rs. 179 million in SPLY. Finance cost amounted to Rs. 191 million (SPLY: Rs. 272 million) showing reduction of Rs. 81 million as compared to SPLY. Loss per share worked out to Rs. 2.15 (SPLY: Rs. 9.01).

During the period under review, the Company continued to operate in a complex and challenging environment but, despite of difficult circumstances, your Company demonstrated resilience. While revenue experienced a marginal contraction, primarily attributable to subdued demand, the operational performance showed improvement. By focusing on cost-efficiency, agility and margin preservation, your Company successfully narrowed its losses compared to SPLY. This trajectory demonstrates the effectiveness of the management's turnaround strategy based on cost optimization. Consequent to modest decline in the policy rate there has been a meaningful reduction in finance cost. Due to availability of cheaper imported yarn, the local yarn manufacturers faced significant pricing pressure. However, by refining our product mix, deepening market penetration, strengthening customer engagement and ensuring superior quality standards we were able to achieve sustainable volumes during the period under review.

While Pakistan's economy showed signs of recovery, supported by strong remittance inflows, agriculture recovery and continued IMF engagement under the Extended Fund Facility, the 'cost of doing business' remains a persistent challenge for the country. Our regional competitors like India, Bangladesh and Vietnam benefit from significantly lower energy tariffs, interest rate and more favorable taxation structures. Moreover, Pakistani businesses face delays in tax refunds and volatility in fuel prices which constrain industrial competitiveness and block liquidity. Inadequate domestic cotton production and quality concerns force the spinning sector to buy expensive imported cotton, straining margins and foreign exchange reserves.

International markets remained disrupted by geopolitical tensions and evolving tariff regimes by the United States. In the wake of subdued trade flows and supply chain disruptions, businesses worldwide are focusing on efficiency and resilience.

FUTURE OUTLOOK

Following a period of significant volatility, Pakistan's economy is exhibiting signs of gradual stabilization on the back of improved fiscal discipline and a more predictable exchange rate. While welcoming rationalization of energy tariffs, the industry continues to advocate for long-term policy consistency and alignment of input costs with those of our regional peers. The outlook for the remainder of the year is characterized by 'cautious optimism'. While domestic conditions are improving, the international landscape remains fragmented as cautious consumer spending persists in the face of global economic uncertainty. The ongoing conflict in the

DIRECTORS' REPORT

Middle East has disrupted oil and LNG shipments through the Strait of Hormuz, triggering a surge in fuel prices and a 'risk premium' on the cost of logistics.

In rapidly evolving global trade flows, we are actively diversifying the customer base, controlling waste and conserving energy, rather than pursuing aggressive capacity growth, while following a clear path to enhance shareholder value and ensure long-term sustainability. To counter the prevailing headwinds, we believe that immediate, state-level interventions are required to revitalize Pakistan's cotton crop both in terms of quality and output. Access to affordable working capital and consistency in policy implementation will remain critical for sustaining export-led growth. Your Company's management continues to closely monitor global and domestic developments and is adopting a proactive and disciplined approach to navigate market uncertainties.

ACKNOWLEDGEMENT

The directors place on record their sincere appreciation for dedication and hard work by the Company's employees at all levels and also extend their gratitude to the valued customers, suppliers, bankers and shareholders for their confidence in the management and their ongoing commitment to the Company.

For and on behalf of the Board

Karachi:

Rizwan Idrees Allawala S.M. Mansoor Allawala

Chairman Chief Executive

March 31, 2026

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF IDREES TEXTILE MILLS LIMITED

Report on review of the unconsolidated condensed interim financial statements to the members Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of IDREES TEXTILE MILLS LIMITED ("the Company") as at December 31, 2025 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive loss, unconsolidated condensed interim statement of changes in equity, and unconsolidated condensed interim statement of cash flows and notes to the unconsolidated condensed interim financial statements for the half year then ended (here-in-after referred to as the "interim unconsolidated financial statements"). Management is responsible for the preparation and presentation of these unconsolidated condensed interim 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 interim unconsolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of unconsolidated condensed interim 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 opinion.

Conclusion

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

Other matter

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 limited scope review by the statutory auditors of the company. Accordingly, the figures of the unconsolidated condensed interim statement of profit or loss and unconsolidated condensed interim statement of comprehensive income for the three months period ended December 31, 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is Tariq Feroz Khan.

KARACHI BDO EBRAHIM & Co.

DATED: April 01, 2026 CHARTERED ACCOUNTANTS UDIN: RR202510166TQ9Ck01P6

UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED DECEMBER, 2025 (UN-AUDITED)

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT DCEMBER 31, 2025

DIRECTOR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

DIRECTOR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

Half-year ended Quarter ended

--------------- (Rupees) --------------- ---------------- (Rupees) --------------

Loss for the period (42,722,500) (178,914,344) (28,845,868) (15,729,948)

Item not to be classified subsequently in profit or loss:

Adjustment of surplus on revaluation of property, plant and equipment due to change in tax rate

(3,365,779) - (3,365,779) -

Total comprehensive loss for

the period (46,088,279) (178,914,344) (32,211,647) (15,729,948)

The annexed notes from 1 to 32 form an integral part of these unconsolidated condensed interim financial statements.

DIRECTOR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

Half - year ended

December 31,

2025

December 31,

2024

Note --------------- (Rupees) --------------

CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for:

Increase in current assets Stores, spares and loose tools Stock-in-trade

Trade debts

Loans and advances

Deposits and short-term prepayments Other receivables

Decrease in current liabilities

(498,898,551) (416,717,491)

Trade and other payable 432,626,682 458,862,336

Purchase of property, plant and equipment Long-term deposits

Proceed from disposal of property, plant and equipment Purchase of term deposit receipt - net

Net cash used in investing activities (11,778,030) (39,553,411)

CASH FLOWS FROM FINANCING ACTIVITIES

Long-term finance repaid to financial institutions Long-term finance obtained from a related party Short-term borrowings - net

Proceeds from long-term finance

The annexed notes from 1 to 32 form an integral part of these unconsolidated condensed interim financial statements.

DIRECTOR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

Note ------------------------------------------------- (Rupees) --------------------------------------------------

Transactions with the owners of the Company:

The annexed notes from 1 to 32 form an integral part of these unconsolidated condensed interim financial statements.

DIRECTOR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

1. STATUS AND NATURE OF BUSINESS

   Idrees Textile Mills Limited (the Company) was incorporated in Pakistan as an unquoted public limited company on June 05, 1990 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) and is listed on Pakistan Stock Exchange Limited effective from April 28, 1992. The principal activity of the Company is manufacturing, processing and sale of all kinds of yarn. The Company is also engaged in business of home textile.

   These unconsolidated condensed interim financial statements represent standalone financial statements of the Company in which investment in subsidiary has been accounted for at cost less accumulated impairment losses, if any. Details of investment held by the Company in the Subsidiary Company has been given in Note 9.

2. GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

   The registered office of the Company is situated at 6-C, Ismail Centre, 1st floor, Central Commercial Area, Bahadurabad, Karachi, Pakistan. The Company's manufacturing facility is located at Kot Shah Muhammad, District Nankana in the Province of Punjab.

   The geographical location and address of the Company's business units, including mill / plants is under:

   Karachi Purpose

   6-C, Ismail Centre, 1st floor, Central Commercial Area, Bahadurabad

   Head office

   Nankana Sahib Purpose

   Kot Shah Muhammad, Tehsil & District Nankana Punjab

   Regional Office and Production Plant / Factory

3. BASIS OF PREPARATION

   1. Statement of compliance

      These unconsolidated condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim reporting. The accounting and reporting standards comprise of:

      • International Accounting Standards (IAS) 34 ''Interim Financial Reporting, 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 the provisions of and directives issued under the Companies Act, 2017 differ from the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. These unconsolidated condensed interim financial statements do not include all the statements and disclosures required for annual unconsolidated financial statements and should be read in conjunction with the annual unconsolidated financial statements of the Company as at and for the year ended June 30, 2025 which have been prepared in accordance with accounting standards as applicable in Pakistan. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual unconsolidated financial statements.

   3. The comparative unconsolidated statement of financial position presented in these unconsolidated condensed interim statement of financial position has been extracted from the annual audited unconsolidated financial statements of the Company for the year ended June 30, 2025, whereas the comparative unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of cash flows and unconsolidated condensed interim statement of changes in equity are extracted from the unaudited unconsolidated condensed interim financial statements for the half year ended December 31, 2024.

      
      
      

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

      FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   4. Basis of measurement

      These unconsolidated condensed interim financial statements have been prepared under the historical cost convention unless stated otherwise.

   5. Functional and presentation currency

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

4. MATERIAL ACCOUNTING POLICY INFORMATION

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

5. USE OF ACCOUNTING ESTIMATES AND JUDGEMENTS

   Estimates and judgements made by the management in applying the accounting policies and the key sources of estimation uncertainty are the same as those applied to the annual audited financial statements for the year ended June 30, 2025.

6. INITIAL APPLICATION OF STANDARDS, AMENDMENTS OR AN INTERPRETATION TO EXISTING STANDARDS

   1. Standards, amendments and interpretations to accounting standards that are effective in the current period

      There are certain amendments to the published accounting and reporting and reporting standards that are mandatory for the Company's annual accounting period beginning on July 01, 2025. However, these do not have any material impact on the Company's financial statements and, therefore, have not been detailed in these unconsolidated condensed interim financial statements.

   2. Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company

      There are certain new standards and amendments to the published accounting and reporting standards that will be applicable to the Company for its annual periods beginning on or after July 1, 2026. However, these are not considered to be relevant or will not have any material effect on the unconsolidated condensed interim financial statements except for:

      The new standard - IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18) (published in April 2024) with applicability date of January 1, 2027 by IASB. IFRS 18 when applicable shall impact the presentation of 'Income Statement' with certain additional disclosures in the financial statements; and

      Amendments to IFRS 9 'Financial Instruments' which clarify the date of recognition and derecognition of a financial asset or financial liability including settlement of liabilities through banking instruments and channels including electronic transfers with effective date of January 01, 2026. The amendment when applied may impact the timing of recognition and derecognition of financial liabilities.

7. RISK MANAGEMENT POLICIES

   The financial risk management objectives and policies are consistent with those disclosed in the annual audited published financial statements of the Company for the year ended June 30, 2025.

   
   
   

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

   FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   December 31,

   2025

   June 30,

   2025

8. PROPERTY, PLANT AND EQUIPMENT

   (Un-audited) (Audited) Note ------------- (Rupees) -------------

   Operating fixed assets

   - Owned 8.1 3,209,636,359 3,275,634,059

   Capital work in progress:

   • Building

   • Capital spares

   1. Operating fixed assets:

      2,197,962

      9,442,072

11,640,034 11,640,034

3,221,276,393 3,287,274,093

Balance at beginning of the period / year 3,275,634,059 3,363,126,162 Additions during the period / year 2,756,328 45,467,134

Disposals during the period / year (2,471,145) (3,059,493)

Depreciation charged during the period / year (66,282,883) (129,899,744)

Balance at end of the period / year 3,209,636,359 3,275,634,059

1. 1. Fair value measurement

      The assets include land, building, labour colony and machinery, electric installations and mill equipment are carried at revalued amount. The valuations was based on the calculations carried out by an independent valuer "Tristar International Consultant (Private) Limited" on January 2, 2024 on the basis of market value. As at reporting date, the management has determined that there is no material change in the aforementioned fair value of property, plant and equipment and accordingly no adjustment has been incorporated in these unconsolidated condensed interim financial statements.

2. INVESTMENT IN SUBSIDIARY

   ORA HOME LLC - at cost - -

   1. On January 5, 2022, the Company acquired 100% ownership in the subsidiary incorporated in New Jersey, United States of America (USA). The Company has not paid any consideration for the acquisition of subsidiary due to net liability position in the books of subsidiary and accordingly assumed all liabilities of the subsidiary as on acquisition date i.e. January 5, 2022.

      
      
      

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

      FOR THE HALF YEAR ENDED DECEMBER 31, 2025

      December 31,

      2025

      June 30,

      2025

3. STOCK-IN-TRADE

   (Un-audited) (Audited) Note ------------- (Rupees) -------------

   Raw material Work-in-process	10.1	1,450,303,785		1,413,851,808
   - Yarn		81,217,573		111,511,263
   - Home textile		88,555,503		91,383,644
   		169,773,076		202,894,907
   Finished goods-yarn		387,582,496		353,228,959
   Waste-yarn		8,273,591		13,597,283
   		2,015,932,948		1,983,572,957

   1. This includes raw material in transit amounting to Rs. 8.095 million (June 2025: 406.421 million).

4. TRADE DEBTS

   Considered good Secured :

   Export 83,517,391 15,848,225

   Unsecured:

   Export - due from a related party 10,695,927 8,807,530 Local 1,956,100,922 1,653,916,364

   2,050,314,240 1,678,572,119

   Considered doubtful

   Local 59,633,884 44,517,802

   2,109,948,124 1,723,089,921

   Less: Allowance for expected loss (59,633,884) (44,517,802) 2,050,314,240 1,678,572,119

5. OTHER RECEIVABLES

   Sales tax 238,984,124 192,602,793

   Cotton claim receivable 12.1 49,618,941 39,831,812

   Export rebate - considered doubtful 12.2 10,353,624 11,114,893

   Duty draw back receivable 12.3 5,872,932 5,872,932

   Profit on deposit 8,724,141 4,086,290

   Others 2,610,243 1,401,827

   316,164,005 254,910,547

   
   
   

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

   FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   1. This represents claim regarding discrepancies related to cotton weight and quality.

   2. Export rebate comprises of incentives/discounts/refunds and other benefits granted by Government of Pakistan.

   3. This represents receivable from the Government of Pakistan since 2021.

      December 31,

      2025

      June 30,

      2025

6. SHORT TERM INVESTMENT

   Note

   (Un-audited) (Audited)

   ------------- (Rupees) -------------

   At amortized cost

   Term deposit receipts (TDR) 13.1 162,721,371 148,099,669

   1. These represents investments in Term deposit receipts with various banks. These carries profit ranging from 6.61% to 9.5% (June 30, 2025: 6.93% to 20.50%) per annum. The banks have lien on these term deposit receipts on account of guarantee provided.

7. CASH AND BANK BALANCES

   Cash in hand 16,434,843 280,531

   Cash at banks:

   Current account 87,092,216 4,369,873

   Saving account 14.1 63,333,094 84,320,203

   166,860,153 88,970,607

   1. These banks carry profit rate from 5.21% to 8.5% (June 30, 2025: 5.36% to 10.05%) per annum.

8. LONG TERM FINANCE

   From financial institutions - secured	15.1	367,919,304	428,692,191
   Related parties - unsecured	15.2	155,461,622	143,272,296

   523,380,926 571,964,487

   1. From financial institutions

      Liabilities under diminishing musharaka	15.1.1	221,051,883	254,228,628
      Loan against Temporary Economic Refinance Facility	15.1.2	298,763,315	337,855,363
      Term Finance Facility	15.1.3	108,462,686		135,457,543
      Long term financing facility	15.1.4	15,044,336		16,187,520
      Current portion shown under current liabilities		643,322,220		743,729,054
      From financial institutions		(275,402,916)		(315,036,832)

      367,919,304 428,692,191

      
      
      

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

      FOR THE HALF YEAR ENDED DECEMBER 31, 2025

      1. These represent diminishing musharaka obtained for plant, machinery and vehicles. The rates of mark up ranges from 12.65% to 13.44% (June 30, 2025: 13.94% to 22.24%).

      2. These represents Temporary Economic Refinance Facility with an Islamic bank and commercial banks, with the total limit aggregating to Rs. 298.763 million (June 30, 2025: Rs. 337.850 million). These facilities carry mark up of SBP Base Rate + 4%. The tenure of these facilities ranges from 5 to 10 years with grace period 1 to 2 years. This is measured at present value using discounting factor ranging from 7.39% to 15.91%. The loan is secured against 1st exclusive charge over specific plant and machinery.

      3. These represents term finance which is secured against 1st specific charge over imported plant and machinery aggregating to Rs. 108.46 million (June 30, 2025: 135.46 million). The facilities carry markup at 3 month KIBOR plus 1.50% to 5.00% per annum and are payable in quarterly installments within a period of 4 to 5 years. The loan is secured by way of 1st exclusive charge over specific machinery over landed cost with a margin of 25%.

      4. These represents long-term finance facilities obtained by the Company from various banks for the purpose of procurement of plant and machinery. The facilities carry markup at KIBOR +1.5% to 4.00% per annum and are payable in fixed monthly/quarterly installments within a period of 4 to 5 years.

         December 31,

         2025

         June 30,

         2025

   2. From related parties Unsecured - At amortized cost

      alance at beginning of the period / year Receipts during the period / year Unwinding of discount Less: Fair value adjustment
      	183,552,644		169,203,415
      Less: Current maturity portion	(28,091,022)		(25,931,119)
      Balance at end of the period / year	155,461,622		143,272,296

      B

      169,203,415		58,272,948
      2,200,000		154,210,474
      12,900,021		16,453,279
      (750,792)		(59,733,286)

      Note

      (Un-audited) (Audited)

      ------------- (Rupees) -------------

      1. These loans are unsecured and interest free and are expected to be repaid by the end of June 30, 2029, furthermore, they are extendable by mutual agreement. The interest (i.e. unwinding of the difference between present value on initial recognition and the amount received) is being recognized on the amount of loan in the statement of profit or loss using the effective interest method.

40,058,597 49,646,844

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

16.1 This relates to the difference between the fair value of the loan and total loan amount received under the State Bank of Pakistan (SBP) Temporary Economic Refinance Facility (TERF) scheme. The loan is amortized by discounting the total loan amount received over the period of 10 years from the date of loan disbursed and the difference between the total amount and it's disbursed value recognized as deferred government grant .

December 31,

2025

June 30,

2025

Note

(Un-audited) (Audited)

------------- (Rupees) -------------

1. TRADE AND OTHER PAYABLES

   Contract liabilities		1,853,158,642	1,490,772,454
   Accrued liabilities		244,211,622	205,100,769
   Infrastructure cess	17.1	187,322,419	184,437,105
   Creditors		182,973,998	156,885,716
   Worker's welfare fund		25,729,586	25,729,585
   Levy payable	17.2	25,779,505	45,031,540
   Withholding tax payable		7,847,356	5,639,492
   Gratuity due but not yet paid		5,971,710	5,971,710
   Provision for gas infrastructure development cess		5,403,945	5,403,945
   Payable to provident fund		546,104	597,924

   2,538,944,887 2,125,570,240

   1. The Government of Sindh through Sindh Finance Act, 1994 provided for imposition of an infrastructure fee for the development and maintenance of infrastructure on goods entering or leaving the Province through air or sea at prescribed rates. The levy was challenged by the Company along with other companies in the High Court of Sindh through civil suits which were dismissed by the single judge of the High Court of Sindh through its decision in October 2003. On appeal filed there against, the High Court of Sindh has held through an order passed in September 2008 that the levy as imposed through the Sindh Finance Act, 1994 (amended time to time) was not valid till December 28, 2006, however, thereafter on account of an amendment in the Sindh Finance (Amendment) Ordinance, 2006, it had become valid and is payable by the Appellants. The Company, along with other companies, filed an appeal in the Supreme Court of Pakistan against the aforementioned order of the High Court of Sindh. The Supreme Court granted stay by passing an interim order on January 22, 2009. The order passed by the High Court of Sindh was set aside by the Supreme Court vide its order dated May 20, 2011. Consequently, a new petition has been filed in the High Court of Sindh. Through the interim order passed on May 31, 2011, the High Court has ordered that for every consignment cleared after December 28, 2006, 50% of the value of infrastructure fee should be paid in cash and a bank guarantee for the remaining amount should be submitted until the final order is passed.

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

On April 06, 2021, the High Court of Sindh vide order C.P.No D-3309 / 2011, summoned to encash all the bank guarantees furnished by the petitioners. The SHC issued this order reasoning that the entire cargo being imported in the Country routes through the Province of Sindh, and for that the Provincial Legislature thought it appropriate to impose a certain amount of tax in the form of a cess. It is though being collected from an importer of goods; but in essence it is not on imports; but for maintenance and development of infrastructure on imported goods. However, during the year ended June 30, 2022, the Supreme Court of Pakistan vide its order dated September 01, 2021, suspended the order issued by SHC stating that it suffers from constitutional and legal defects and granted the interim relief to the Company and other petitioners. The order issued by the Supreme Court of Pakistan states that the petitioners shall keep the bank guarantees already submitted pursuant to the earlier order of SHC and shall furnish the fresh bank guarantees equivalent to the amount of levy claimed by the Sindh Government against release of all future consignments of imported goods.

A writ petition No. 42176 / 2020 was filed by All Pakistan Textile Mills Association (APTMA) (where the Company is also a party to the petition). The Management is confident for a favorable outcome. However, as a matter of prudence, the Company has made provision as follows:

December 31,

2025

June 30,

2025

------------- (Rupees) -------------

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

Half - year ended

December 31,

2025

December 31,

2024

Note --------- (Rupees) -----------

1. CASH AND CASH EQUIVALENTS

   Cash and bank balances	14	166,860,153		18,548,454
   Short term running finance	18	(631,521,371)		(560,197,801)
   		(464,661,218)		(541,649,347)

2. CONTINGENCIES AND COMMITMENTS

   1. Status of contingencies is the same as disclosed in note 24 to the annual unconsolidated financial statements of the Company for the year ended June 30, 2025.

      December 31,

      2025

      June 30,

      2025

      ------------- (Rupees) -------------

   2. Commitments

      Letters of guarantee issued by banks on behalf of the company to :

      Excise and Taxation Office 184,437,105 184,437,105

      Letters of credit opened and outstanding for import of: :

      Stores and spares 5,928,406 3,207,423 Raw material 176,977,446 226,882,018

      
      
      

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

      FOR THE HALF YEAR ENDED DECEMBER 31, 2025

      Half year ended Quarter ended

      December 31,	December 31,	December 31,	December 31,
      2025	2024	2025	2024
      --------- (Rupees) -----------		--------- (Rupees) -----------

3. SALES - NET

Yarn & Home Textile

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2024

Half-year ended Quarter ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Work-in-process Opening stock Closing stock

------------- (Rupees) ------------- ------------- (Rupees) -------------

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

1. FAIR VALUE ESTIMATION

   Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

   The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

   A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

   The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

   The different levels of fair valuation method have been defined as follows:

   Level 1: Quoted prices in active markets for identical assets or liabilities;

   Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

   Level 3: Inputs for the asset or liability that are not based on observable market data As at reporting date, there are no financial asset which have been carried at fair value.

   1. There are no other assets or liabilities to classify under above levels except the Company's land, mill building, labour colony, plant and machinery, electric installations and factory equipment are stated at revalued amounts, being the fair value at the date of revaluation, less subsequent depreciation and subsequent accumulated impairment losses, if any.

2. TRANSACTIONS AND BALANCES WITH RELATED PARTIES

   Related parties comprise associated companies where directors hold common directorship, key management personnel, directors and their close family members and staff retirement benefit funds. Transactions and balances with related parties during the period, other than those which have been disclosed elsewhere in these unconsolidated condensed interim financial statements, are as follows:

   
   
   

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

   FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   27.1	Related parties	Basis of relationship	% of shareholding in the company
   	ORA Home LLC	Subsidiary Company	100.00%
   	Mr. Rizwan Idrees Allawala	Chairman	27.84%
   	Mr. S. M. Mansoor Allawala	Executive Director	21.82%
   	Mr. Omair Idrees Allawala	Executive Director	28.99%
   	Ms. Aamnah Mansoor	Non-Executive Director	0.01%
   	Mr. Muhammad Beyaz Aftab	Non-Executive Director	0.003%
   	Syed Masud Arif	Independent Director	0.003%
   	Ms. Azra Yaqub Vawda	Independent Director	0.003%
   	Mrs. Ambreen Mansoor w/o	Spouse of Director	7.26%
   	S.M Mansoor Allawala

   Half - year ended Quarter ended

   December 31,

   2025

   December 31,

   2024

   December 31,

   2025

   December 31,

   2024

   --------- (Rupees) ----------- --------- (Rupees) -----------

   27.2	Transaction during the half year	Nature of transactions
   	Subsidiary company ORA Home LLC	Sales	5,799,329	44,660,405	5,799,329	35,416,666
   		Amount received during the period	4,033,582	37,689,627	4,033,582	-
   	Key management personnel	Salaries & benefits	8,121,780	12,251,438	4,060,890	6,125,719
   		Meeting fee	30,000	30,000	30,000	30,000
   		Receipts of long term finance during the half year period	2,200,000	141,000,000	2,200,000	141,000,000
   		Unwinding of discount
   		on loan from directors	750,792	5,630,504	750,792	3,260,651
   	Other related parties	Contribution made to provident fund	1,124,231	1,110,170	567,143	519,677

   December 31,

   2025

   June 30,

   2025

   1. Balances with related parties Nature of

      transactions

      --------- (Rupees) -----------

      Subsidiary Company

      ORA Home LLC

      Receivable against sale of goods

      10,695,927 8,930,180

      Key management personnel Loan payable to directors

      Equity portion loan from related parties

      183,552,644 169,203,415

      165,158,842 86,198,059

      Other related parties

      Provident fund

      Payable to provident fund

      546,104 597,924

   2. All transactions with related parties have been carried out on commercial terms and conditions as approved by the Board of Directors.

   
   
   

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

   FOR THE HALF YEAR ENDED DECEMBER 31, 2025

3. OPERATING SEGMENTS

   These unconsolidated condensed interim financial statements have been prepared on the basis of a single reportable segment.

   All non-current assets of the Company as at December 31, 2025 and 2024 are located in Pakistan.

   Significant sales are made by Company in the following countries:

   2025 2024

   --------- (Rupees) -----------

   Pakistan	1,701,071,006	1,667,248,893
   China	333,986,545	643,749,373
   Other countries	116,018,690	164,924,919

   2,151,076,241 2,475,923,185

4. SHARIAH COMPLIANCE DISCLOSURE

   Following information has been disclosed as required under amended part I clause VII of Fourth Schedule to the Companies Act ,2017 as amended via S.R.O.1278(I)/2024 dated August 15, 2024.

   Short-term Investment	Shariah compliant		15,209,000		15,209,000
   	Non - Shariah		147,512,371		132,890,669
   			162,721,371		148,099,669
   Cash and bank balances	Shariah compliant		84,696		81,771
   	Non - Shariah		166,775,457		88,888,836
   		14	166,860,153		88,970,607
   Liabilities
   Long-term financing
   	Shariah compliant		526,216,334		587,794,964
   	Non - Shariah		300,658,533		325,137,474
   			826,874,867		912,932,438
   Short-term borrowings	Shariah compliant		507,911,457		567,552,289
   	Non - Shariah		1,774,972,557		1,495,266,867
   		18	2,282,884,014		2,062,819,156
   Interest and mark-up	Shariah compliant		33,512,683		38,061,816
   accrued	Non - Shariah		49,276,520		36,875,027
   			82,789,203		74,936,843

   Statement of Financial Position Assets

   Note

   December 31, June 30,

   2025 2025

   (Un-audited) (Audited)

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

   
   
   

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

   FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   	December 31,	December 31,
   	2025	2024
   Note	(Un-audited)	(Un-audited)

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

   Statement of Profit or Loss

   Sales - net	Shariah compliant	21	2,151,076,241		2,475,923,185
   Finance cost	Shariah compliant		71,386,006		104,776,269
   	Non - Shariah		119,952,463		167,250,753
   			191,338,469		272,027,022
   Profit on bank deposit	Shariah compliant		551,985		567,585
   	Non - Shariah		8,079,699		16,410,135
   		24	8,631,684		16,977,720

   1. The Company has relationships with banks, having Islamic window operations, in respect of availling borrowing facilities amounting to Rs. 1,247 million (June 30, 2025: Rs 1,292 million).

5. CORRESPONDING FIGURES

   Corresponding figures have been re-arranged and re-classified, wherever necessary, for the purpose of comparison and for better presentation.

6. GENERAL

   Figures have been rounded off to the nearest rupees, unless otherwise stated.

7. DATE OF AUTHORIZATION FOR ISSUE

These unconsolidated condensed interim financial statements have been authorized for issue on March 31, 2026 by the Board of Directors of the Company.

DIRECTOR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

Mçĩ.sl(d.sdS  Suisd5sl

3d

Jsls lgçé:çlgS Øl

SU.l.Sux5ťfslçlPƯçюdu*5lĩ

."ldť"3GS6us.

βs/l).sdťSb.SÙP.JLUbJl

ufrdz.UslгluglƯMllslżSç/ćċs

N"."U S5lĩslMSSMlȦSJLćB. Ml PslгllćĩybfSlćcĩ.



splll.(PGSċMḘsllslƯfGSç6x

.UbJLsJllGS.l.du sl5łdrr.M s

.

lslĠGSUbslć 

çl

ulldslbsll/Msl

çÙSl

Ưl)gsťslÙl.lċ

lE

UlsilȦll Ulsillglè

l 

2026l31:Tl

Ưl66sGSIsċM 2025L31IS

-/UćEIłSusIỨ

gIsS6.ss)sI I.

ǾsIØS(//

5Is u 5Mu/.sd

6d(d.sIƯl

2,476Iłţs2,151ssIg4dgIsS 2026łl

6.s6Ss194SIłfţs220Bs

s191UƯlBs179Iłţs43g

9.01 :łţs 2.15 g5Is Js81 s272:ł

x .trz

s

dċs.SUbdçdrl Ir.s..sI6IċgIsS6.s

JU5(dss5IsJIƯ6/0

bdċMISłċcĩ.SsIG

IIl.SJ /Md.JUIg

5IsJ6IA

IISLţłd  .SuMuIsċxsx6

ċbIMḘIsIċdbċØы5łl

d

xĩSI I 5sI гIć Sg

x5ťfcIыI I "Uċ.sd " NgsťSçIs.

dr.a..r gu.çBI6ťç sIxu*5IĩçssIø

IsIƯsMLsIMn ØIugIsI

I ..żSJsIlƯ6M IsnSḘsI

Űsţ.Sç ćB.:çIsI(5IuṷIUI

CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED DECEMBER, 2025 (UN-AUDITED)

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT DECEMBER 31, 2025

December 31, June 30,

2025 2025

(Un-audited) (Audited)

ASSETS ------------ (Rupees) ------------

Non-current assets

The annexed notes from 1 to 31 form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

CONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2025

Half-year Ended Quarter Ended

(25,800,649) (28,614,627) (14,257,733) (14,468,727)

(Loss before Taxation) (64,792,254) (189,276,963) (47,103,973) (30,911,679)

Prior Deferred

18,324,347 17,088,118 18,324,347 17,088,118

(Loss) / Profit for the period (46,467,907) (172,188,845) (28,779,626) (13,823,561)

Earnings per share - basic and diluted (Rupees)

(2.34) (8.67) (1.45) (0.70)

CHAIRMAN CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

Half-year Ended Quarter Ended

Note -------------- (Rupees) ---------------- -------------- (Rupees) ----------------

Earnings per share - basic and diluted (Rupees) (2.34) (8.67) (1.45) (0.70)

The annexed notes from 1 to 31 form an integral part of these condensed interim financial information.

CHAIRMAN / DIRECTOR CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2025

Half - year Ended

December 31,

2025

December 31,

2024

------------------- (Rupees) -------------------

CASH FLOWS FROM OPERATING ACTIVITIES

(Loss) / Profit before taxation (64,792,254) (189,276,963) Adjustments for:

Depreciation 66,282,883 63,840,261

Profit on deposits - -

Unrealized loss on other financial Assets - -

Finance cost on unwinding of discount on long-term finance from related parties - -

The annexed notes from 1 to 31 form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

Capital reserves Revenue reserves

surplus on

Issued,subscribed and paid up capital

revaluation of property, plant and equipment -

Equity portion of loan from related Parties

Un-appropriated profit

Exchange translation reserve

Total

net of tax

-------------------------------------------------- (Rupees) ----------------------------------------------------

1 , 3 1 7 , 9 4 7 6 1 , 0 7 2 , 1 9 6 4

Transfer from surplus on revaluation of property, plant and equipment on account:

• incremental depreciation charge thereon - net of tax

• disposals - net of tax

- (3,365,779) - (46,467,907) 128,125 (49,705,561)

- (12,614,239) - 12,614,239 - -

Transactions with related parties / owners

Fair value effect of interest free loan provided 750,792 750,792 Unwinding of discount on long-term loan from

related parties - - - - -Balance as at December 31, 2025 198,528,000 831,645,384 165,158,842 904,732,792 (8,068,667) 2,091,996,351

The annexed notes from 1 to 31 form an integral part of these condensed interim financial information.

CHAIRMAN CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

1. STATUS AND NATURE OF BUSINESS

   1. The Group consists of Idrees Textile Mills Limited (the Holding Company) and its 100% owned subsidiary ORA Home LLC (ORA) (the Subsidiary). Together referred to as "the Group" and individually as "Group entities".

      Idrees Textile Mills Limited (the Company) was incorporated in Pakistan as an unquoted public limited company on June 5,1990 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) and is listed on Pakistan Stock Exchange Limited effective from April 28,1992. The principal activity of the Company is manufacturing, processing and sale of all kinds of yarn.

      ORA Home LLC (ORA), a limited liability company ( the subsidiary ) incorporated in New Jersey, USA on January 5, 2022. The principal activity of the subsidiary is trading of Home textile.

2. GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

   The registered office of the Company is situated at 6-C, Ismail Centre, 1st floor, Central Commercial Area, Bahadurabad, Karachi Pakistan. The Company's manufacturing facility is located at Kot Shah Muhammad, District Nankana in the Province of Punjab.

   The geographical location and address of the Company's business units, including mill / plants, is under:

   Karachi Purpose

   6-C, Ismail Centre, 1st floor, Central Commercial Area, Bahadurabad

   Head office

   Nankana Sahib Purpose

   Kot Shah Muhammad, Tehsil & District Nankana Punjab Regional Office and Production

   Plant / Factory

   New Jersey, USA Purpose

   1215 Livingstn Avnue, STE 4 North Registered office Brunswick, NJ 08902

3. BASIS OF PREPARATION

   1. Statement of compliance

      These condensed interim consolidated financial statements for the half year ended December 31, 2025 have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

      International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standard Board (IASB) as notified under the Companies Act, 2017 and provisions of and directives issued under the Companies Act, 2017.

      
      
      

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

      FOR THE HALF YEAR ENDED DECEMBER 31, 2025

   2. These condensed interim consolidated financial statements do not include all the statements and disclosures required for full annual consolidated financial statements and should be read in conjunction with the annual consolidated financial statements of the Company as at and for the year ended June 30, 2024 which have been prepared in accordance with accounting standards as applicable in Pakistan. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual consolidated financial statements.

   3. Basis of measurement

      These condensed interim consolidated financial statements have been prepared under the historical cost convention

      unless stated otherwise.

   4. Basis of consolidaton

      Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity generally accompanying a share of more than fifty percent of the voting rights. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and up to the date when the control ceases. These consolidated financial statements include Idrees Textile Mills Limited (the Holding Company) and its subsidiary entity ORA Home LLC, i.e., the entity in which the Holding Company directly owns 100%. Accordingly, there is no non-controlling interest.

      The financial statements of the Subsidiary have been consolidated on a line-by-line basis. Inter- company balances and transactions, and any unrealised income and expenses (except for foreign currency transaction gains or losses) arising from inter-company transactions, are eliminated.

   5. Functional and presentation currency

      These condensed interim consolidated financial statements have been presented in Pakistani Rupee, which is the functional and presentation currency of the Company.

4. MATERIAL ACCOUNTING POLICIES INFORMATION

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

5. USE OF ACCOUNTING ESTIMATES AND JUDGEMENTS

   Estimates and judgements made by the management in applying the accounting policies and the key sources of estimation uncertainty are the same as those applied to the annual audited financial statements for the year ended June 30, 2025.

6. INITIAL APPLICATION OF STANDARDS, AMENDMENTS OR AN INTERPRETATION TO EXISTING STANDARDS

   1. Standards, amendments and interpretations to accounting standards that are effective for the half year ended December 31, 2025

      
      
      

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

      FOR THE HALF YEAR ENDED DECEMBER 31, 2025

      There are certain amendments to the published accounting and reporting and reporting standards that are mandatory for the Company's annual accounting period beginning on July 01, 2025. However, these do not have any material impact on the Company's financial statements and, therefore, have not been detailed in these unconsolidated condensed interim financial statements.

   2. Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Holding Company

      There are certain new standards and amendments to the published accounting and reporting standards that will be applicable to the Company for its annual periods beginning on or after July 1, 2026. However, these are not considered to be relevant or will not have any material effect on the unconsolidated condensed interim financial statements except for:

      The new standard - IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18) (published in April 2024) with applicability date of January 1, 2027 by IASB. IFRS 18 when applicable shall impact the presentation of 'Income Statement' with certain additional disclosures in the financial statements; and

      Amendments to IFRS 9 'Financial Instruments' which clarify the date of recognition and derecognition of a financial asset or financial liability including settlement of liabilities through banking instruments and channels including electronic transfers with effective date of January 01, 2026. The amendment when applied may impact the timing of recognition and derecognition of financial liabilities.

7. RISK MANAGEMENT POLICIES

The financial risk management objectives and policies are consistent with those disclosed in the annual audited published financial statements of the Company for the year ended June 30, 2025.

December 31,

2025

June 30,

2025

(Un-audited) (Audited)

Note ------------- (Rupees) -------------

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

8.1.1 The assets include land, building, labour colony and machinery, electric installations and mill equipment are carried at revalued amount. The valuations was based on the calculations carried out by an independent valuer "Tristar International Consultant (Private) Limited" on January 2, 2024 on the basis of market value. As at reporting date, the management has determined that there is no material change in the aforementioned fair value of property, plant and equipment and accordingly no adjustment has been incorporated in these unconsolidated condensed interim financial statements.

December 31,

2025

June 30,

2025

(Un-audited) (Audited)

------------- (Rupees) -------------

9.1 In year 2022, the Company acquired 100% ownership in the subsidiary incorporated in New Jersey, United States of America (USA). The Company has not paid any consideration for the acquisition of subsidiary due to net liability position in the books of subsidiary and accordingly assumed all liabilities of the subsidiary as on acquisition date.

10. STOCK-IN-TRADE

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

1. OTHER RECEIVABLES

   Note

   December 31, 2025 June 30,

   2025

   (Un-audited) (Audited)

   ------------- (Rupees) -------------

   Sales tax		238,984,124	192,602,793
   Export rebate	12.1	10,353,624	11,114,893
   Cotton claim receivable	12.2	39,831,812	39,831,812
   Duty draw back receivable	12.3	5,872,932	5,872,932
   Claim Against Detention / Demmarage/ Others - (Cot/Vis/Poly)		9,787,129	-
   Profit on deposit		8,724,141	4,086,290
   Others		2,610,243	1,401,827

   316,164,005 254,910,547

   1. Export rebate comprises of incentives/discounts/refunds and other benefits granted by Government of Pakistan.

   2. This represents claim regarding discrepancies related to cotton weight and quality.

   3. This represents receivable from the Government of Pakistan since 2021.

2. SHORT TERM INVESTMENT

   At amortised cost

   Term deposit receipts (TDR) 13.1 162,721,371 148,099,670

   1. These represents investments in Term Deposit Receipts with various banks. The profit rate on these TDRs ranges from 6.61% to 9.50% (June 30, 2025: 6.93% to 20.50%) per annum. The banks have lien on these TDRs on account of guarantee provided by such banks.

3. CASH AND BANK BALANCES

   Cash in hand 16,434,843 280,531

   Cash at banks

   - in current accounts 14.1 101,238,040 27,573,305

   - in savings accounts 63,333,094 84,320,203

   181,005,977 112,174,039

   13.1 These banks carry profit rate from 5.21% to 8.5% (June 30, 2025: 5.36% to 10.05%) per annum.

4. LONG TERM FINANCE

   From financial institutions 15.1 367,919,304 428,692,191

   From Related parties 15.2 155,461,622 143,272,296

   523,380,926 571,964,487

   1. From financial institutions

      Liability under diminishing musharaka 15.1.1 221,051,883 254,228,628

      Loan against Temporary Economic Refinance Facility (TERF) 15.1.2 298,763,315 337,855,363

      Term finance (TF) 15.1.3 108,462,686 135,457,543

      Long term financing facility (LTFF) 15.1.4 15,044,336 16,187,520

      643,322,220 743,729,054

      Current portion shown under current liabilities (275,402,916) (315,036,863)

      367,919,304 428,692,191

      
      
      

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

      FOR THE HALF YEAR ENDED DECEMBER 31, 2025

      1. These represent diminishing musharaka obtained for plant, machinery and vehicles. The rates of mark-up ranges from 12.65% to 13.44% (June 30, 2025: 13.94% to 22.24%).

      2. These represents Temporary Economic Refinance Facility with an Islamic bank and commercial banks, with the total limit aggregating to Rs. 298.763 million (June 30, 2025: Rs. 337.850 million). These facilities carry mark up of SBP Base Rate + 4%. The tenure of these facilities ranges from 5 to 10 years with grace period 1 to 2 years. This is measured at present value using discounting factor ranging from 7.39% to 15.91%. The loan is secured against 1st exclusive charge over specific plant and machinery.

      3. These represents term finance which is secured against 1st specific charge over imported plant and machinery aggregating to Rs. 108.46 million (June 30, 2025: 135.46 million). The facilities carry markup at 3 month KIBOR plus 1.50% to 5.00% per annum and are payable in quarterly installments within a period of 4 to 5 years. The loan is secured by way of 1st exclusive charge over specific machinery over landed cost with a margin of 25%.

      4. These represents long-term finance facilities obtained by the Company from various banks for the purpose of procurement of plant and machinery. The facilities carry markup at KIBOR +1.5% to 4.00% per annum and are payable in fixed monthly/quarterly installments within a period of 4 to 5 years.

   2. From related parties

      Note

      December 31, 2025 June 30,

      2025

      (Un-audited) (Audited)

      ------------- (Rupees) -------------

      Opening balance	169,203,415		58,272,948
      Receipts during the period/year	2,200,000		154,210,474
      Fair value adjustment	(750,792)		(59,733,286)
      Unwinding of discount	12,900,021		16,453,279
      	183,552,644		169,203,415
      Less:current portion shown under current liabilities	(28,091,022)		(25,931,119)
      	155,461,622		143,272,296

      1. These loans are unsecured and interest free and are expected to be repaid by the end of June 30, 2027, furthermore, they are extendable by mutual agreement. The interest (i.e. unwinding of the difference between present value on initial recognition and the amount received) is being recognized on the loan in the statement of profit or loss using the effective interest method.

5. DEFERRED GOVERNMENT GRANT

   Deferred grant against temporary economic refinance facility	16.1	60,860,760		73,399,575
   Current portion of deferred government grant		(20,802,163)		(23,752,731)
   		40,058,597		49,646,844

   1. This relates to the difference between the fair value of the loan and total loan amount received under the State Bank of Pakistan (SBP) Temporary Economic Refinance Facility (TERF) scheme. The loan is amortized by discounting the total loan amount received over the period of 10 years from the date of loan disbursed and the difference between the total amount and it's disbursed value recognized as deferred government grant .