Transmission of Annual Financial Statements for the Year Ended 30/06/2025

International IGihVear I.im1ted

annual report

2025

CONTENTS

Overview & Strategy

Page No.

Rcvi cw Re port by the Ch airm an. 4

Directo rs' Repor t. 5

C a rpa rate GoverrJance 16

Financial Statements

Report ar4 the Aud it of the Fire anci al Srare metJt s. 2 1

Statement af Financial Pos iCan. 25

St at cLnc rat aI P rofit a r Loss. 26

Stateme nt af Other Comp rehensive Income. 27

Stateme nt af Ch anges in Equ ity. 28

Stateme nt aI Cash Flows. 29

Notes to INe Financial Statements. 30

Governance and Compliance

Statement af Compli ance with Listed Co mpanie s.............. (Code of Co rporate Gove rnance) ReguIaII ons, 2019

Revi ew Re port on INe State ment of Compliance. 56

Noice aI Annual General Meefing. 6o

P HN B hN OI h HFE•N O I d I FI 8 G4

Rev+evv Report by the Ch airman in Urdu. y4

D+v+dend Mandat e Form .................................................................................................

BOARD OF DIR£CT0RS

Mr. Khalid Jamil Siddiqi Mr.

Mr. Waseem Shafi

Mr. Javed Khan

Mr. Abdullah Ahsan Saleem Ms. Salefia Majid

Mr. Muhammad Shafi

Chairman Chief Execut1ve

CHIEF FTNANCTAL OFFICER COMPANY SECRETARY AUDIT COMMITTEE

HR & REMUNERATION

COMMITTEE

AUDITORS

LEGAL ADVISOR BANKERS

REGISTERED OFFICE & REGISTRAR

WEBSITE

Mr. Javed Khan

Mr. Salik Sultan-FCA

Mr. Abdullah Ahsan Saleem Mr. l‹haIid Jamil Siddiqi

Ms. Saleha Majid

Mr. Khalid Jamil Siddiqi Mr. Naeem Shafi

Mr. Javed khan

RSM Avais Hyder Liaquat Nauman Chanered Accountants

Ali Associates

Bank AI Habib Limited Habib Banl‹ Limited

Habib Metropolitan Bank Limited F-2A/(L), S.I.T.E., Karachi-75730

CDC Registrar Services Limited

CDC House, 99-B, Block 'B', S.M.C.H.S.

Main Shahra-e-Faisal, Karachi-74400 https://www.internationaIknitwear.com

2

VISION

Is to achieve and then remain as the most progressive and profitable Company offering a wide range of quality products and service provider in terms of industry standards and stakeholders interest.

MISSION

The Company shall achieve its mission through a continuous process of having sourced, developed, implemented and managed the best leading edge technology, industry best practice, human resource and innovative of superior products, performance and service quality that fully meet the needs of our customers, better returns to our stakeholders and a better quality of life to the employees.

it is my privilege to present the Chairman's Rev iew for the financiaI year ended June 30, 2025, in compliance with the Companies Act, 2017 and the Listed Companies (Code of Corporate Governance) Regulat1ons, 2019. This review reflects our confinued commitment to transparency, sound governance, and Iong-term strategic directon.

During the year, our Company demonstrated resilience and foresight in navigat1ng a challenging economic environment. We achieve d a record-high turnover, underscoring our ability to adapt and compeEe effect1ve iy ina dynam ie ma rket. However, ris ing energy cosEs and persistent inflation exened signifi cant pressure on profit margins, highlighting the im portance of prudent

Board of Directors upholds transparency, account abilit y, and integrity while ensuring adherence to best prac t1ces in governance. Robust systems for risk m anagement, internaI controls, and regulatory compliance remain firmly in place, reinforcing stakeholder confidence and strengthening our corporate reputation.

Throughout the fiscal year 2024-25, the Board convened four meetings, including sessions of its audit committee, to ensure effective oversight of business performance and sub -committee act1vit1es. in line with our governance framework, the Board aIsa conducted its annual self-evaluarion for 2024-25, which produced sarisfacto ry resuIts. This exercise is criticaI to assessing

Our Board comprises a Averse miv oC independent and nonezerufve dkeflors, each

experience ensures that the Company rem ains well-posifioned to achieve its objecl-ives and create sustainable value.

In conclusion, I would like to express my heartfe it appreciatio n to our shareholders, empioyees, and business partners for their trust and dedication. With your support, we will cont1nue to pursue our strategic priorides, strengthena ur foundat1ons, and progress with confidence and integrity.

The Board of Directors of International Knitwear Limited takes pleasure in presenting this report together with the Audited Financial Statements of the Company for the year ended June 30, 2025.

Financial Performance at a Glance

Financial NighJights for the Year Ended June 30, 2025

» Net Sa Yes reached Rs. 1.2T biiiion, com pared to Rs. 850.50 miiiion in the same period last yea r

(SPLY), reflecting an increase of Rs. 360.07 million (42.33%).

• Gross Profit stood at Rs. 106.35 million, up from Rs. 81.39 million in the previous year.

  » Profit Before Tax amounted to Rs. 49.29 million, compared to Rs. 26.78 miiiion in the corresponding period lasc year.

• Earnings Per Share (EPS) increased to Rs. 3.19, compared to Rs. 1.14 in the previous year. Business Overview

During the year under review, the Company delivered an outstanding financial performance, with net

turnover reaching Rs. 1.2T billion, compared to Rs. 850.50 million in che corresponding period, reflecting robust growth of 42.33%. This increase was prim arily driven by a substantial rise in sales

Despite challenges such as pricing pressures in export markets, polil-ical uncertainty, high financing costs, and volaLiie utility prices, che Company successfully expanded order volumes and fully ufiiised its producfion capacity during FY24-25. Export revenue rose by 13.74%, from Rs. 487.63 million in the same period last year to Rs. 556.66 million. Local sales showed even stronger growth, increasing by 80.20%, from Rs. 362.87 million to Rs. 653. 91 million during FY25.

This strong performance lifted net sales to Rs. 1.21 billion, up 42.33% year-on-year, demonstrating the effectiveness of management's strategic iniriarives, including time iy investments and an optimai balance between export and domestic markef opportunities.

BOARD OF DIRECTORS AND ITS COMMITTEES

BOA RD 0 F DIR E CTORS

1. Oh aIi d J am iI Sid d iq i

   
   
   
   
   
   

   s A hrJ‹I II a h A hsa n s arI em

   
   
   

   COM POSITIO N OF AUDIT COM MITTEE

   COM POS ITI ON0 F HR & REM IdN ERATI0 N COM M ITTEE

   COMPOSITION0 F RISK MAN AGEM ENT COMM ITTEE

   
   
   

   COMPOSITION OF NOMINATION COMMITTEE

2. KU alid J ato iI Siddi i

3. M ‹Ih am m arJ 5h aft

'' ' *"*'"'""""'"" '*' '**"''"'' '

1. Abduhad Ahsan Saleem

2. Naeem Shafi

   
   
   

   covrosnoworsuAx*siuAwsrzmcovv+wz*

   
   
   

   Meefing of the Board and its Committees

   Chairman Member Membe

   Mvmbe
   
   
   

   and one meeting of Human Resource and Remuneration Committee (HRRC) were held. The arteodance of the Directors aod the number of their directorship in listed companies, ioclu ding

   No		ship
   			Re-elected w.e.I	No		J	4/4	4/4	1/1
   	or. MaeemShafi	2	Re-elected w.e.f	Yes		T	4/4		1/1
   		t	Re elected w.e.f	yes					1/1
   6	Ms. Saleha Majid	*	ge-elected w.e.f	No
   	Mr. Muham mad Shafi		Re elected w.e.I	No			4/4

   maoage ment, supports timely and informed decision-making across the Company. Acting in ao advisory role to the CEO, it reviews business operations, budgets, and long-term strategies, while monitoring performance against targets throu gh monthiy meetings. The CEO ensures chac Board decisions aod directives are effectively comm uoicated and inn plemeoted throughout the

   Evaluation Criteria for the Board

   In addition to discharging their statutory responsibilities, the performance of the Company's Board is regularly evaluated at both the individual and collective levels, based on the following criteria:

   1. Promotion of di'versity in gender, talents, skills, and perspectives;

   2. integrity, credibility, trustworthiness, and active participation of members;

   3. Monitoring and reviewing progress against annual targets set by management;

   4. Provision of strategic guidance and direction to the Company;

S. Ability to identify and address areas requiring performance improvement;

1. Review and oversight of management succession planning;

2. Assessment and understanding of the Company's risk exposures;

3. Contribution to strengthening policies and practices relating to health, safety, environment, employment, and other key areas;

4. Commitment to safeguarding the Company from avoidable litigation and reputanonal risks.

Performance Evaluation of the Board

The Board's overall performance for the year, evaluated against the prescribed criteria, has been found satisfactory. In compliance with Seclaon 192 of the Companies Act, 2017, a detailed repon by the Chairman on the Board's performance is presented in this Annual Report.

Director's Remuneration

The Board of Directors has approved the Directors' Remuneralaon Policy, which includes the

1. No remunerat1on shall be paid to non-execut1ve or independent directors, other than meeting fees for attending meetings of the Board and its Committees.

2. The Company shall bear or reimburse direccors' cra'veI and accommodadon expenses incurred in connection with attending Board and Committee meetings.

3. The Directors' Remuneration Policy shall be subject to periodic review and approval by the Board of Directors.

Pattern of Shareholding

A statement showing a pattern of shareholdings of the Company and additional information as at June 30, 2025, is included in the report.

The retiring auditors, M/s RSM Avais Hyder Liaquat Nauman, Chartered Accountants, being eligible, ha've offered themseI'ves for reappointment. On the recommendation of the Audit Committee, the Board of Oirectors proposes their reappointment as auditors of the Company for the financial year ending June 30, 2026, on such remuneration as may be fixed by the Board in consultation with the Audit Committee, subject to the approval of the shareholders at the Annual Genera| Meelang.

Directors' Training Program

Four Directors have completed the Directors' Training Program, while two Directors, having over 25 years of experience serving on the Boards of listed companies, are exempt from this requirement. The Company intends to arrange the mandatory training for the remaining Directors in the next fiscal year. The Board is adequately equipped to discharge its responsibilities, and the Directors are fully aware of their dulaes, powers, and obligations under the Companies Act, 2017 and the Pakistan Stock Exchange Rule Book.

Acknowledgement

The Board places on record its sincere appreciation to the executives, officers, staff members, and workers for their dedicalaon, hard work, and commitment, which have contributed significantly to the Company's performance. The Board also extends its gratitude to the Company's bankers, customers, and suppliers for their continued suppon and cooperation. The Management remains confident that these valued relationships will be further strengthened in the years ahead.

For and on behalf of the Board

Karachi: September 29,2025

97,333 73,514 50,017 53,236 3J,983 31,942

29,907 28,025 20,39't 20,867 16,979 f4,478

42,614 32,'t85 20,006 17,4 39 16,781 8,506

96,7 S0

Long term and defer red 1'cb+1+Yes 3,4 4 642 fi,693 12,723 fatal capital employed 1s7,847 167,3i1 1S8,306 144,SSS i27,481 i36,511

£sIc I,4I0,J73 £40,f0J %l14Fâ 67D,46? 488,090 f37,4f7

30,858 11, 04 3 22 073 22,084 '{50} 7,735

Dividend

05

Capital expenditure {1n 000}

Return on Equity (%)

Propeny, plant and equipment (In 000)

Break-up Value (In Rs.)

Dividend payout (%j

14

15

ixorrcxorxiauDpox'sheron

Report on the Audit of the Financial Statements

RSFJ

We have audited the annexed financial statements of InternationalKnitwear Limited {the Company), which comprise the statement of financial position as at June 30, 2025, and the statement of profit or loss, the statement of other comprehensive income, the statement of changes in equity, the statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information and other explanatory information, and we state that we have obtained all the informalon and explanations which, to the best of our knowledge and belief, were necessary for the purposes of the audit.

In our opinion and to the best of our information and according to the explanations given to us, the statement of financial posifion, the statement of profit or loss, thestatement of comprehensive income, the statement of changes in equity and the statement of cash flows together with the notes forming part thereof conform with the accounting and reporting standards as applicable in Pakistan and give the inform aGon required by the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the state of the Company's affairs as at June 30, 2025 and of the profit and comprehensive income, the changes in equity and its cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with International Standards on Audifing (ISAs) as applicable in Pakistan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Internafional Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants as adopted by the Insfitute of Chartered Accountants ofPakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

long term deposits

Unappropriated prodt

2025 2024

cost of goods sold

IB 1,210,S73,713

(769,107,246]

(37,646,184}

8S0,60S,029

(34,4 B2,873)

Other income

Unrealized gain on revaluafion of investments through P&L

24

Other charges

2 2 7 270 S

13,671,994 10,213,976

Profit after taxahon for the year

Items that will be subsequently reclassified to stalemenl of profit or loss Items that will not be subsequently reclassified to statement olprofit or

Unrealised gain on remeasurement of investments classified as £/T0CI -

£xa›W%atoz@0Crompo«io FpadofñT0Ci=s«msn

directly into equity Defered tax

Total comprehensive income for the year

The annexed notes y to 38/orm on integral port a/rfiese/nonrio/storemenrs

84,848,276 18,67g,gt7

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2025

Issue, Unrealized gain /

Subscribed and (loss) on

Paid up Sfiare revaI+iaflon of pro6t

uet profit for tfie year ended June 30, 2024 Reclassification on disposal of F/T06l directly into equity

tact profit for the year ended June 30, 2025 Peclazihcaton on disposal of FW0£i directly into equity fair value adjustment on investment classifled as FW0€1

7.SP cash dividend paid for the year enhed dune 30, 2024

2,173

3,205,115

2g4,599

11,043,541 11,043,541

(9,675,000) (9,675,000)

30,858,562 30,858,562

3,20S,IIS

284,S99

(7,256,250) (7,256,250)