International Knitwear LimitedPSX: INKL

Transmission of Quarterly Financial Statements for the Period Ended 30/09/2025

Oct 31, 2025 at 6:34 AM UTC · Issued by International Knitwear Limited

IntcIhhtl0hñJ )(J2VPñI (lINIPJ

FIRST QUARTER REPORT SEPTEMBER 2025

COMPANY INFORMATION

BOARD OF DIRECTORS

CHIEF FINANCIAL OFFICER COMPANY SECRETARY AUDIT COMMITTEE

HR & REMUNERATION COMMITTEE

AUDITORS

LEGAL ADVISOR

BANKERS

REGISTERED OFFICE &

FACTORY

REGISTRAR

WEBSITE

Mr. Khalid Jamil Siddiqi Mr. Naeem Shafi

Mr. Waseem Shafi

Mr. Javed Khan

Mr. Abdullah Ahsan Saleem

Ms. Saleha Majid

Mr. Muhammad Shafi

Mr. Javed Khan

Mr. Salik Sultan - FCA

Mr. Abdullah Ahsan Saleem

Mr. Khalid Jamil Siddiqi Ms. Saleha Majid

Mr. Khalid Jamil Siddiqi Mr. Naeem Shafi

Mr. Abdullah Ahsan Saleem

RSM Avais Hyder Liaquat Nauman Chartered Accountants

Ali Associates

Bank AI Habib Limited Habib Bank Limited Bank Alfalah Dubais|amicBank

Faysal Bank 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

Chairman

Chief Executive

Chairman

Directors' Report

The Board of Directors of International Knitwear Limited (INKL) is pleased to present the unauditedfinancial statements of the Company for the three-month period ending September 30, 2025.

	September-2025	September-2024
	Rupees	Rupees
Sales	275,926,861	341,898,578
Gross proht	33,784,482	23,637,597
Other income	5,652,793	2,623,608
Pratt before income tax	15,252,422	9,679,496
Profit after taxation	11,253,692	6,872,442
Earnings per share-basic and diluted	1.16	0.71

PROFIT AND LOSS ANALYSIS

During the period under review, the Company's net sales amounted to Rs. 275.92 million as compared to Rs. 341.B9 million in the corresponding period of the previous year, represenfing a decline of Rs. 65.97 million. despite the reducron in sales, the Company recorded an improved gross profit of Rs. 33.78 million, as against Rs. 23.63 million in the comparative period. Consequently, the earnings per share (EPS) increased to Rs. 1.16, compared to Rs. 0.71 in the same period last year.

REVIEW OF OPERATION

During the period under review, local sales revenue increased significantly from Rs. 100,29 million to Rs. 21'i.38 million, reflecting a groMh of Rs. 115.09 million (114.75%). In contrast, export sales dec|ined from Rs. 240.07 million to Rs. 61.29 million, showing a decrease of Rs. 178.78 million (74.46%) as compared to the corresponding period last year.The Company's gross profit increased by Rs. 10.14 million (42.93%), rising from Rs. 23.64 million to Rs. 33.78 million over the same period. Despite the increase in gross profit and margin, the profit before and aftertax raflos remained comparatively lower, mainly due to an increase in mance costs by Rs. 5.54 million. The rise in ifance costs was attributable to an extended credit period allowed to customers and a reduction in the credit period received from suppliers, resulhng in higher utilizaton of credit facilihes.

FUTURE OUTLOOK

The management is confident that sales revenue will continue to grow during the year, supported by strategic initiatives aimed at ekpanding the customer base and improving operational eftciency. The Company's liquidity position is also expected to further strengthen, enabling smooth and sustainable business operations. Moving forward, we remain committed to driving innovation, enhancing productivity, and achieving higher profitability to deliver long-term, sustainable value for our shareholders.

KNOWLEDG£MENT

The management expresses its sincere appreciation to all employees, valued customers, financial partners, shareholders, and the Board of Directors for their conflnued trust, dedication, and support.

For and on behalf of the Board

karachi: October 29, 2025

NAEEM SHAFI

Chief Executive Officer

JAVED KHAN

Director & Chief Financial Officer

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2025

(Un-Audited)

SEPTEMBER

(Audited)

JUNE

2025

ASSETS

Note

Rupees

Non-Current Assets

Property, plant and equipment

96,225,233

97,333,096

Long term deposits

1,S00,OX

1,500,000

Loan and advances

1,409,290

927,500

Long term investments

38,139,040

29,907,662

Current Assets

137,273,563

129,668,258

Stock in trade

170,393,028

174,951,260

Short term investments

50,87,003

42,614,407

Trade debts - considered gooo

290,065,396

424,314,509

Short term loans and advances

4,744,569

6,331,066

Other receivables

11,844,91d

15,134,391

Taxation -net

16,545,338

15,703,936

Cash and bank balances

5,109,419

2,646,910

S49,SS9,665

681,696,480

TOTAL ASSETS

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVED

Authorised Capital

20,000,000 Ordinary shares of Rs. 10 each

686,833,22g

2O0,000,%0

B11,364,738

200,000,000

Issued, subscribed & paid-up capital

96,750,000

Revenue Reserves

Mnappropriated profit

96,260,298

8S,006,606

Capital Reserves

193,010,298

181,7S6,606

Unrealized (loss) / gain on revaluation of investments - FVTOCI

21,012,824

12,647,282

Non-Current Liabilities

214,023,122

194,403,888

Deferred Liabilities - Deferred Taxation Liability

3,444,616

Current Liabilities

Short term finance under mark-up arrangement - Secured

294,291,721

402,871,536

Creditors, accrued and other liabilities

172,562,068

208,132,871

Unclaimed dividend

2,511,701

2,511,823

469,365,490

613,516,230

Contingencies and Commitments

TOTAL EQUITY AND LIABILITIES

686,833,228

811,364,738

The annexed notes 1 to 2P/arm an infeprd/ port of t//ese/nonc/oJstatements.

Kha4id Jamil Siddiqi

Chairman

Naeem Shafl Chief Executive

Javed Khan Director / CFO

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS FOR THE PERIOD ENDED SEPTEMBER 30, 2025(UN-AUDITED)

Note

30-Sep-25

Rupees

30-Sep-24

Rupees

Net saes

275,926,861

341,B98,S78

Cost of good sod

(242,142,378)

(318,260,981)

0J784,483

23,637,597

Administrative and selling expenses

(10,861,358)

(9,224,380)

Operating profit

22,933,125

14,4t3,217

Other income

172,930

484,413

Unrealized (loss) on revaluation of investments thrO•8*

5,479,863

2,139,195

5,652,793

2,623,608

28,575,918

17,036,825

Hnancecost

(12,186,159)

(6,639,945)

Othercha ges

(1,130,893)

(717,385)

(13,317,052)

(7,357,330)

Profit before income taxes and final taxes

9,679,496

Taxation - Final taxes

Profit before income tax

15,252,4Z3

9,67g,4g6

Taxation - Income tax

Current - for the year

(3,998,730)

(2,807,054)

Defered Tax

(3,998,730)

(2,807,054)

Profit afier taxation

11,253,693

6,872g42

Earnings per share - basic and diluted

1.16

0.71

the annexed notes 1 to 20/orm an integral part of these finantial statements.

Naeem Shafl

Chief Executive

Saved xhan

Dlrector / CFO

COND5NS£D INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED SEPTEMBER 30, 2025

#f0#t 3(ttf t3Xâti0I1(0ft#9 §9fi0#

0t8er compefi98sive IOM

Items that will not besvbseqvently reclassified tcstatement efyrafit cr loss

§tClgffifiC8t01of 0LIC0lTl§0000t Ofl #IS§OS6I 0f LOCI invettmert

directly int0 e§aig

Total comprehensive Intooe for theperiod

11,253,693

6,872,442

8,382,814

(17,292)

1 1T4,3%

Khatid Jamil Siddiqi Chairman

Naeem Shafl Chief Executive

Saved xhan

Dlrector / CFO

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED SEPTEMBER 30, 2025(UN-AUDITED)

andPtié apS5are (loss| onrevalvator of UrappropitteJ profit Total

Layital ilvestmznts

Balance aszt uIy01,207t Totaltonpreertiveintsme:

Setpr0fitfortâe leaf rrJeJ June J0,202J

ll,iJ3,693

|17,l92)

9t,75O,OOO 11,0it,82t 9t,2H,298 2lt,Ot3,lt2

xr,aIid Jamil Siddiqi Chairman

Naeem Shafi Chief ExecMtive

Javed Khan Director / CFO

CONDENSED INTERIM STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED SEPTEMBER 30, 2025(UN-AUDITED)

CASH FLOW FROM OPENATING ACTIVITIES

30-Sep-25

Rupees

30-Sep-24

Rupees

Profit before taxation

Adjustment for non cash items:

15,258,866

9,679,496

Depreciation

3,291,299

2,575,026

Loss / (Gain) on sale of property, plant and equipment

(58,300)

Other (income)/loss

(14,018,335]

(484,413)

Finance cost

t2,186,159

6,639,945

1,459,123

8,672,258

Profit before changes In working capital

16,717,989

l8,3Sl,754

(Increase)/ decrease in current assets

Stock in trade

4,558,232

90,009,277

Trade debts

134,249,113

(41,992,361)

Short term loans and advances

1,104,707

(7,161,384)

Other receivables

3,289,480

(3,724,827)

143,201,533

37,130,705

II+crease in current liabilities

Creditors, accrued and other Iiabili0es

{35,570,804)

3051,815

(35,570,804)

30561,815

Financial charges paid

(12,186,159)

(6,639,945)

Taxes paid

(5,116,209)

(5,552,990)

Cash proceed from Sales tax

2,948,132

(14,354,236)

(10,192,935)

Net cash generated/ (Msed) in operating activities

109,994,482

75,851,338

CASH FLOW FROM INVESTING ACTIVITIES

Capital expenditure

{2,183,436)

(894,860)

Addisons in investment

(3,685,278)

(7,941,16t)

Disposal of investment

932,430

Proceeds from sale of property, plant and equipment

301,900

Net cash (used in)/ generated from investing activities

{4,936,285)

(8,534,121)

CASH FLOW FROM FINANCING ACTIVITIES

Cash proceeds from short term finance under markup arrangement

329,569,936

64,318,492

Repayment of short term finance under markup arrangement

(438,056,845)

(134,244,319)

Dividend paid

12t

25,644

Net cash generated from / (used) financing activities

(108,486,787)

(69,900,183)

Net (decrease)/ increase in cash and cash equivalents

(3,428,590)

(2,582,966)

Cash and cash equivalents at the beginning of the year

2,646,910

3,272,247

Cash and cash equivalents at the end of the period

(781,680)

689,281

Cash and cash equivalent at the end of the period Cash and bank balances

5,109,419

6,617,271

Running finance facility

(5,891,099)

(5.527,990)

(781,680)

689281

The annexed notes 1 to /0/orm an integrol port of these financial statements.

Khalid Jamil Siddiqi

Chairman

Naeem Shafi

Chief Executive

Javed Khan Director / CFO

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2025(UN-AUDITED)

1 STATUS AND NATURE OF THE BUSINESS

International Knitwear Limited (hereinafter referred as the "Company" or "IKL") is incorporated in Pakistan and is listed on Pakistan Stock Exchange Limited. The geographical location and address of the head office and manufacturing plant of the Company is Plot # F-2A/L, SITE, Karachi, Pakistan.

We are leaders in crea0ng, developing and manufacturing knitted and woven apparel products right from basic to highly fashioned garments. We are engaged in the export of quality garments. We have established a name of credenfials owing to the projected commitments, working speed and quality prac0ces. Our opera0ng philosophy is to provide buyers with products that meet their specifica0on, and are reliably delivered at a reasonable pri0e in domestic and internafional markets..

BASIS OF PREPARATION

These financial statements have been prepared in acCordanCe with the accounting and reporting standards as applicable in Pakistan. The accountng and reporting standards as applicable in Pakistan comprise of:

Interna0onal Financial Repor0ng Standards (IFRS) issued by the Internatonal Accounting Standards Board (USB) as nodded under the Companies Act, 2017; and

Provisions of and diiec0ves issued under the Companies Act, 2017.

Where provisions of and direc0yes issued under the Companies Act, 2017 differ from the |FRS Standards, the provisions of and directves

issued under the Companies Act, 20}7 have been followed.

ACCOUNTING POLICIES

The tompany's accountng and financial risk management policies and methods of computafion of this condensed interim financial informaflon are the same as those followed in the preparation of annual financial statements for the preceding tn8ncial year ended hare 30,2025.

Note

(Un-audit9d (Audited)

September 30, ‹ 30, 2025

2025

roperty and equipment - at cost less accumu!ated depreciation 4.1 94,990,797 97,333,096

apital work in progress 4.4 1,234,936

96,225,233

97,333,096

4.1 Operating assets

Opening book value

97,333,096

73,514,794

Additions during the period

4.2

948,500

35,973,140

Disposals during the period at book value

4.3

(637,058)

DepreCiaron charged during the period

(3,291,299)

(11,517,780)

94,9S0,297

97,333,09G

4.2 AdditiOLiS dLltihg the # 'fi0d/y96f

Factory building

6,049,341

Plant and machinery

358,500

2S,1S9,0S0

Computers

458,000

Furniture Fitting

532,000

971,214

Once equipment

58,000

23t,000

Motor vehicles

3,104.535

948,500

35,973,140

4.3 Deletions / write-all/ adjustments at book yalue - period/year

Plant and machinery

385,292

Computers

8,166

Office equipment

44,750

Motor vehicles

198,850

637,058

Movement in Capital Watt in Progress

Opening balances

Add: Addisons during the period Less: Transfer to operating assets

,234,936

1,234,936

6,609,81'i

ts,sog,gs›

•

PROPERTY, PLANT & £QUIPM£NT P
C
--(Rupees]------
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2025(UN-AUDITED)
INVESTMENTS

Long Term Investments

EQuity securities - listed	s.*	38,139,042	29,907,662
Short Term Investments
At fair value through proñt or loss (FVTPL) EQuity securities - listed	S.2	2 0 8 083	14 8 8 26
Mutual fundr - li.ated	5.3	0778 9	7 806 142
		50,8S7.003	42,614,407
		88.996.045		72.522.069
5.1 Long Term Investments Equity Securltles - listed
Name of Shares
Engro Fertilizer Limited		1,108,400		927,950
Mari Energies Limited		741,040		626,890
Engro Holdings Limited		1,296,600		912,800
Pakistan Oilfields Limited		30,694,645		24,492,055
The Hub Power Company Limited		3,469,995		1,998,245
Millat Tractors Limited Meezan 8ank Limited		828 362		949,722

5.2 Short Term Investments EqMity securities - listed
Name oJShares
Attack Petroleum Limited		1,553,040		1,438,860
Engro Holdings Limited		1,426,260		1,004,080
Pakistan Oilfields Limited		6,780,188		5,410,088
Pakistan State Oil Company Limited		S,8S8,380		4,681,372
The Hub Power Company Limited		3,948,615		2,273.865
United Distributors Pakistan Limited		511,600

5.3 Short Term Investments Mutual Funds - listed
Name of the Fund AKD Islamic Fund		76S,670		744,083
Faysal runds		1,'424,038		1,392,523
MCB Cash Management Optimizer Fund		1,004,589		980,605
UBL Al-Ameen Islamic Cash Plan-I Fund		17,645,324		17,148,436
UBL Liquidity Plus Fund		9,939,298		7,540,494
UBL Money Market Fund		I		1
		30,778,920		27,806,142
6 STOCK IN TRADE
Raw materia		44,314,261		74,096,585
Work-in-process		99,713,668		52,919,607
Finished goods	6.1	26,365,099		47,93S 068
		170393 028		174 951.260
6.1 Finished goods Finished stock		20,412,779		42,597,397
Finished stock in transit Scrap / Left over stock		5,952,320		5,337,67 L
		26 365 099		47.935 068
7 TRADE DEBTS - CONSIDERED GOOD
Foreign - secured, considered good Gain/(loss) on translation of export debtors		7z		2 s 970
		5,671,772		155,243,707
Local - unsecured - Considered good		2 4 393 624		269 0708 2
- Considered doubtful		23 270		523 270
		284,916,894		269,594,072
Less: Provision for doubtful debts (523,270)				(523,270)
290,065,396				424,314,509

AI fair value through other comprehensive income |FVTOCI)

Note

(Un-audited) (Audited} SeptembeF 30a June 30, 2025

2025

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2025(UN-AUDITED)

LOANS AND ADVANCES

(un-audned) iAuditedJ September 30, jgg gg g gg

2025 '

---(Rupees)---

Loans and advances to employees - Long term portion - unsecured, considered good

Loan to employees

2,363,605

2,434,605

Less: current portion of loan to employees

(954,315)

1,507,105)

Shon term Loans and advances - unsecurecl, considered good

1,409490

927,500

Advance to contractor and supplier

3,790,254

4,823,961

Current portion of advances to employees

954,315

l,507,t0S

4 744 569

5,331 066

OTHER RECEIVABLES

Sales tax refundable

3,314,643

Export rebate receivables

8,257,475

8,214,849

Research and development receivable

2,5S7,3t6

2,574,779

Receivables from Bank BAH/SBP

1,030,120

t1,844,911

15,134,391

10 CASH AND BANK BALANCES

Cash in hand

With banks in:

Treasures call accounts {deposit accounts)

200,000

133 49

200,000

2 935 177

Saying account

4352

7 739

Current accounts

1 232 8

939 9

6,409,419

3,946,910

Security deposit

(1,500,000)

5,109,419

2,646,910

11 Share capital

Authorized share capital

sePtember 30, June 3o.

septemher 4o.

June 30,

2025 2024

2025 202S

Number of shares

-----{Rupees]----

20,000,000

Ordinary Shares of RS. 10/- each

200,000,000

20,000,000 20.O€I0.0€I0		200,000,000		200,000,000
Issued, sMbccribed and paid-up share capital
3,000,000	3,000,000	Ordinary shares of Rs. 10/- each fully paid in cash.	30,000,000	30,000,000
225,000	225,000	Ordinary shares of Rs. 10/- each issued as bonus shares	2,250,000	2,250,000

6.450,000 6,450,000 Right shares of Rs. 10/- each fully paid In cash

9,675,000 9,675,D00

64,500,000 64,500,000

96,7S0,000 96,750,000

(Mn-audited) (Un-audited) September 30, September 30,

2025 2024

--(Rupees)-•

12 NET SAI.fiS
Export	61,291,879	240,071,139
Sales local	215,381,351	100,298,708
Export rebates	612,919	2,400,711
	277,286,149	342,770,S58
Sales discount	{887,216)	(624,280)
Rebate Commission	(20,911)	(7L,817)
inspection Fees	{451,161)	(175,883)
(1,459,268) (871,980)
	275,926,861	341,898,578
13 OTHER INCOM£
Income From Financial Assets
Profit on bank accounts	109,389	224,3IS
Dividend income	42,950	421,919
Exchange loss - net	93,189	(209,739)
Loss on translation of foreign currency debtors	(72,597)	(10,382)
Income From Non-FlnanciaI Assets
Gain on disposal of property, plant and equipment		58,300
	172.930	4B4,413

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2025(UN-AUDITED)

(Un-audited) (Un-audited) September 30, September 30,

2025 2024

14 FINANCE CDST

Note

Mark-up on exporl refinance

1,156,031

1,146,000

Mark-up on runnlng finance

200,520

341,000

Mark-up short term finance raw material local

1,561,011

123,617

Mark-up short term finante Solar

2.580

Bank charges

969,034

971,281

Exthange loss

840,079

Mark-up on short term finance loan & Discounfing

6,793,291

312,534

Mark-up on mance from Twinco

925,367

Late Shipment charges

2,820,146

Mark-up on export Discounnng

663,613

L2 186 159

6 639 945

(Un-audited} Se

ternber 30,

(Audited) June 30, 2025

SHORT TERM FINANCE UNDER MARK-UP ARRANGEMENT

Running Gance facility Export refinance facility

Shon term finance - local sales

Finance against Foreign documentary bills Finance against local documentary bills

Short term hnance - Against Raw Material Local

Short term finance - Against Solar

16 CREDITORS, ACCRUED AND OTHER PAYABLES

Creditors

Accrued expenses

Compensated absences payabJe Other fund payable

Workers' profit participation fund Workers' welfare fund

Advance from customers Payable to Brokers

----(Rupees)----

5,891.099 5,984,005

47,800,000 60,000,000

5,000,000 5,000,000

5,744,371 81,425,574

186,920,561 194,486,540

38,555,390 49,810,550

4,380,300 6,164,867

294.291.721 402.871.S36

125,073,430 174,930,102

21,586,904 20,427,580

3,550,202 3,334,009

810,104 753,072

3,459,204 2,639,716

4,809,374 4,497,969

1,125,518 519,356

86,278

Others

3,O92,314

934,788

Sales tax Payable

1? CONTINGENCIE$ AND COMMITMENTS

37.1 Contingencies

9,055,016

172,562,066 208,132,871

For tax year 2O08, an amenJed assessment order ha› been passed under setnon 122{5A) of the Income Tax Ordinance, 2001 by the Additional Commissioner Inland Revenue (ACIR) against which the company fled an appeal w1th Commissioner Inland Revenue Appeals-l| vho passed an order with certain amendments. In pursuance of such order, Company filed an appeal in 2011 before Appellate Tribunal and matter is pending for hearing.

17.2 Commitments

Commitments under letter of Eredit are Rs. 56.93 (June 30, 202S: Rs 67.50 million)

Corresponding figures' have been reclassified / rearranged, wherever necessary.

DATE OF AUTHORIZATION
These condensed interim financial statements was authorised by the Board of Directors of the Company on October 29, 2025.
GENERAL

30.1 8igurcs have been rounded off to the nearest thousand of PKR, unless otherwise stated.

20.2 Corresponding figures have been rearranged and reclassified, where necessary, for the purpose of better presentation and comparison. However no significant reclassification has been made during the period.

Khalid Jamil Siddiqi

Chairman

Naeem Shafi Chief Executive

Javed Khan Director / CFO

341,898,578

23,637,597

2623608

9,678,496

6,872,442

0.71

2025

275,.926,861

33,784,482

5,652,793

15,252,422

11,353,692

1.16

65.97

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International I‹fizitwear Limited

If undelivered, please return to: International Knitwear Limited F-2A/(L), S.I.T.E., Karachi-75730.

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