KTML Transmission of Annual Financial Statements for the Year Ended 30.06.2025

ANNUAL REPORT

2024-2025

72 YEARS OF EXCELLENCE: WEAVING A SUSTAINABLE FUTURE,

THREAD BY THREAD

For 72 years, the story of Kohinoor Textile Mills Limited has been a tapestry woven with resilience, craftsmanship, and innovation. Since our founding in 1953, we have embraced every challenge as an opportunity to strengthen our fibers and perfect our weave. In 2025, we celebrate this remarkable journey of more than seven decades, reflecting on how our core values have sustained us through changing markets and global shifts.

Building on this deep-rooted heritage, our focus has never been more forward-looking. We are committed to crafting the fabric of a sustainable future, driving innovation that not only elevates our products but also minimizes our environmental footprint. This report details our latest investments in renewable energy, water conservation, and eco-friendly manufacturing, reinforcing our role as a responsible industry leader.

Our legacy is not just in the past; it is the foundation for our future. We believe that true progress is measured not only by our financial performance but also by our positive impact on the planet and our community. As we continue to spin, weave, and stitch, our commitment remains the same: to create products that bring vitality and comfort to lives around the world, one sustainable thread at a time.

ANNUAL REPORT 2025 01

ORGANIZATIONAL OVERVIEW

AND EXTERNAL ENVIRONMENT

06

01

STRATEGY AND

RESOURCE ALLOCATION

34

02

RISKS, OPPORTUNITIES

AND COMPLIANCE

48

03

CORPORATE SOCIAL

RESPONSIBILITY

64

04

SUSTAINABILITY AND

GOVERNANCE

100

05

IT GOVERNANCE AND

CYBERSECURITY

154

06

FUTURE OUTLOOK

162

07

02 KOHINOOR TEXTILE MILLS LIMITED

STAKEHOLDERS

RELATIONSHIP AND ENGAGEMENT

168

08

BUSINESS MODEL

174

09

STRIVING FOR EXCELLENCE

IN CORPORATE REPORTING

178

10

ANALYSIS OF THE

FINANCIAL INFORMATION

182

11

FINANCIAL

STATEMENTS

218

12

CONSOLIDATED

FINANCIAL STATEMENTS

285

13

BCR CRITERIA

391

14

ANNUAL REPORT 2025 03

REPORT

KOHINOOR TEXTILE MILLS LIMITED (KTML) corporate Annual Report 2025 covers the period from 1st July 2024 to 30th June 2025. All the activities and performance related data is related to KTML and its subsidiaries Maple Leaf Cement Factory Limited, Maple Leaf Capital Limited, Maple Leaf Power Limited, Maple Leaf Industries Limited & Novacare Hospitals (Pvt.) Limited and does not include any information or data related to its associated companies unless where required by legal and corporate regulations.

Annual Report 2025 gives an introduction & overview about the principal activities of the Company. Very brief and comprehensive information has been provided about business review, future outlook of the Company along with Governance structure, risk management framework, Performance and future strategies of the Company. Economic, environmental and corporate social responsibility data is also presented for the better understandability of users of financial statements about the operations of the Company.

Financial statements that are an integral part of Annual Report 2025 have been prepared in compliance with provisions and directives of Companies Act, 2017 and Code of Corporate Governance Regulations, 2019. Independent auditor's report is also part of ANNUAL REPORT 2025. There has been no change in the reporting period, boundary and scope of the Report.

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This Annual Report is also available at: https://www.kmlg.com

ANNUAL REPORT 2025 05

ORGANISATION

OVERVIEW AND EXTERNAL ENVIRONMENT

Company Profile & Principal

Business Activities 08

Our Products 10

Company Information 13

Our Vision and Mission 14

Group Structure 18

Geographical Presence 20

Organization Chart 22

Value Chain Analysis 26

Factors Effecting The External

Environment (PESTLE) 28

SWOT Analysis 30

Position in Value Chain 31

Code of Business Conduct

and Ethical Principles 32

https://WWW.KMLG.COM/KTML

01

ORGANISATION OVERVIEW

AND EXTERNAL ENVIRONMENT

ANNUAL REPORT 2025 07

COMPANY PROFILE & PRINCIPAL

BUSINESS ACTIVITIES

Kohinoor Textile Mills Limited ("The Company"), founded as a private limited entity in 1953 and publicly listed in 1968, is a prominent, vertically integrated textile manufacturer. To ensure sustained growth and navigate evolving market dynamics, KTML has strategically expanded its operations to include spinning, weaving, processing, and home textiles.

01

SPINNING DIVISION

02

WEAVING DIVISION

03

PROCESSING DIVISION

TEXTILES

HOME

DIVISION

04

POWER DIVISION

05

The Company's production capabilities include state-of-the-art spinning facilities located in Rawalpindi and Gujjar Khan, equipped with 180,144 ring spindles, 768 MVS Spindles, and 3,648 open-end rotors for manufacturing a wide variety of yarn counts from both cotton and synthetic fibers. At Raiwind, 384 looms are dedicated to weaving a diverse range of griege fabrics. The Rawalpindi unit's processing division specializes in dyeing and printing fabrics for the home textile sector, with stitching facilities producing an extensive range of home textiles for the export market. Investments are underway to enhance both dyeing and stitching capacities to leverage broader market opportunities. Each of the three manufacturing locations features fully equipped laboratory facilities, crucial for maintaining quality control and optimizing processes.

Sustainability is a core value at Kohinoor Textile Mills Limited, evident in various initiatives aimed at responsible environmental stewardship. These projects encompass micro-grid systems, the use of biomass fuel for coal boilers, advanced ultra-filtration & sewage treatment plants, and a dedicated rainwater harvesting lake. The rainwater harvesting initiative exemplifies KTML's commitment to responsible water management, reducing reliance on external sources and contributing to the conservation of this vital resource. In a significant stride towards reducing its carbon footprint, the Company generates 35MW of electricity from solar energy, displacing furnace oil-based power generation and eliminating an estimated 76.8 million pounds (34,833 metric tons) of carbon dioxide emissions annually.

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LEADING EDGE PRODUCTION CAPABILITIES

To meet the evolving demands of market integration, the Company has made significant investments in Information Technology, human resource training, and management development. This ongoing commitment supports the maintenance of our strong competitive position and drives continuous improvement towards achieving world-class manufacturing standards. KTML's operations are conducted with strict adherence to all applicable environmental, labor, corporate, and other legal requirements.

ANNUAL REPORT 2025 09

OUR PRODUCTS

Product Portfolio - Kohinoor Textile Mills Limited (KTML) offers a diversified product portfolio designed to serve a broad range of market requirements. Our principal product lines include:

i. Yarn: A comprehensive selection of yarn counts spun from cotton and synthetic fibers.

ii. Greige Fabric: High-quality fabrics in their natural, unfinished state.

iii. Dyed and Printed Fabric: Custom-processed fabrics for various applications.

iv. Home Textiles: A diverse array of finished goods, such as bed linen, quilts, embroidered items, and curtains.

Our products are sold in both local and global markets. The finished home textile division exports extensively to international markets, with a significant presence in Europe, the Americas, Canada, Australia, Asia, and Africa.

YARN

10 KOHINOOR TEXTILE MILLS LIMITED

GREIGE FABRIC

HOME TEXTILES

ANNUAL REPORT 2025 11

12 KOHINOOR TEXTILE MILLS LIMITED

COMPANY INFORMATION

Board of Directors

Mr. Tariq Sayeed Saigol Chairman

Mr. Taufique Sayeed Saigol Chief Executive

Mr. Sayeed Tariq Saigol Mr. Waleed Tariq Saigol Mr. Danial Taufique Saigol Ms. Jahanara Saigol

Syed Muhammad Shabbar Zaidi

Mr. Zulfikar Monnoo Syed Mohsin Raza Naqvi

Audit Committee

Syed Muhammad Shabbar Zaidi Chairman

Mr. Zulfikar Monnoo Member

Mr. Sayeed Tariq Saigol Member

Mr. Waleed Tariq Saigol Member

Human Resource & Remuneration Committee

Mr. Zulfikar Monnoo Chairman

Mr. Sayeed Tariq Saigol Member

Mr. Danial Taufique Saigol Member

Chief Financial Officer

Syed Mohsin Raza Naqvi

Company Secretary

Mr. Muhammad Ashraf

Head of Internal Audit

Mr. Fawad Ahmad Khan

Auditors

M/s. Riaz Ahmad & Company,

Chartered Accountants

Legal Adviser

Mr. Muhammad Amin Hashmi,

Advocate High Court

Bankers of the Company

Al Baraka Bank (Pakistan) Limited Allied Bank Limited

Askari Bank Limited Bank Alfalah Limited Bank Al-Habib Limited

BankIslami Pakistan Limited Bank Makramah Limited Faysal Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited JS Bank Limited

MCB Bank Limited

MCB Islamic Bank Limited Meezan Bank Limited National Bank of Pakistan

PAIR Investment Company Limited SAMBA Bank Limited

Silk Bank Limited The Bank of Khyber The Bank of Punjab United Bank Limited

Share Registrar

Vision Consulting Limited

5-C, LDA Flats, Lawrence Road, Lahore Tel: (00-92-42) 36283096-97

Fax: (00-92-42) 36312550

E-Mail: shares@vcl.com.pk

Registered Office

42-Lawrence Road, Lahore. Tel: (00-92-42) 36302261-62

Fax: (00-92-42) 36368721

Mills:

Peshawar Road, Rawalpindi Tel: (0092-51) 5495328-32

Fax: (0092-51) 5495304

Gulyana Road, Gujar Khan, District Rawalpindi

Tel: (0092-51) 3564472-74

8 K.M., Manga Raiwind Road, District Kasur Tel: (0092-42) 32560683-85,

Fax: (0092-42) 32560686-87

Website:

https://www.kmlg.com/ktml

Note: KTML's Financial Statements are also available at the above website.

ANNUAL REPORT 2025 13

The Kohinoor Textile Mills Limited stated vision is to achieve and then remain as the most progressive and profitable Company in Pakistan in terms of industry standards and stakeholders interest.

The Company shall achieve its mission through a continuous process of having sourced, developed, implemented

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and managed the best leading edge technology, industry best practice, human resource and innovative products and services and sold these to its customers, suppliers and stakeholders.

ANNUAL REPORT 2025 15

Committed to leading textile innovation, we aim to leave an enduring mark on the industry worldwide. Cheers to the next chapter, built on a foundation of seven decades of unmatched quality and progress.

EMPATHY

INTEGRITY

PASSION

We share each others' feelings and emotions, making us a stronger, more cohesive team; we communicate effectively and approach challenges collectively.

We ensure adherence to moral and ethical principles; we act with honesty, we do not compromise our values.

It's about growth & success; we chase our goals and objectives (personal & professional) with the highest level of energy and enthusiasm.

16 KOHINOOR TEXTILE MILLS LIMITED

ANNUAL REPORT 2025 17

GROUP STRUCTURE

The Company is a part of Kohinoor Maple Leaf Group (KMLG). KMLG structure comprises of two listed public limited companies i.e. Kohinoor Textile Mills Limited (KTML) and Maple Leaf Cement Factory Limited (MLCFL), three unlisted public limited companies i.e. Maple Leaf Capital Limited (MLCL), Maple Leaf Power Limited (MLPL) and Maple Leaf Industries Limited (MLIL), and a private company i.e. Novacare Hospital (Private ) Limited. Further Agritech Limited (AGL) is an associate of the Group.

Kohinoor Textile Mills Limited is a parent Company of other five below mentioned Companies. The initial capacity of its Rawalpindi Unit comprised 25,000 spindles. Later, fabric processing facilities were added and spinning capacity was augmented. Additional production facilities were acquired on the Raiwind-Manga Road near Lahore in District Kasur and on the Gulyana Road near Gujar Khan, by way of merger.

Maple Leaf Cement Factory Limited (MLCFL) was incorporated in Pakistan on 13 April 1960 under the Companies Act, 1913 (now the Companies Act, 2017) as a public company limited by shares. The Company is listed on Pakistan Stock Exchange. The cement factory is located at Iskanderabad District Mianwali in the province of Punjab. The principal activity of the Company is production and sale of cement. The Company is a subsidiary of Kohinoor Textile Mills Limited ("the Holding Company").

Maple Leaf Power Limited (MLPL) a wholly owned subsidiary of MLCFL, an unlisted public limited company, has established a 40 MW Coal Fired Power Plant at Iskanderabad, District Mianwali which has successfully started its commercial production on 12th October 2017. The project was completed within budget and as per the planned timelines. The principal activity of MLPL is to generate, purchase, transform, distribute and supply electric power to MLCFL. The project has added another reliable and inexpensive source of power compared to the national grid and has reduced dependency on the same.

Maple Leaf Capital Limited (MLCL) was incorporated in Pakistan on 25 April 2014 under the Companies Ordinance 1984 (now the Companies Act, 2017) as a public company limited by shares. The principal object of MLCL is to buy, sell, hold or otherwise acquire or invest its capital in any sort of financial instruments. MLCL is a subsidiary of KTML.

18 KOHINOOR TEXTILE MILLS LIMITED

Maple Leaf Industries Limited (MLIL) was incorporated in Pakistan on 21 September 2022 as a public company limited by shares under the Companies Act, 2017. The registered office of MLIL was located at 42-Lawrence Road, Lahore. MLIL was incorporated with the primary objective of setting up a cement manufacturing facility in Special Economic Zone in Mianwali, Punjab. However, the Government of Pakistan did not allow for import of machinery for cement manufacturing line and consequently, the Board of Directors of MLIL decided to initiate the winding-up process of the Company as at 31 March 2024. The winding-up process has since been completed.

ANNUAL REPORT 2025 19

Novacare Hospitals (Private) Limited (Novacare) was incorporated in Pakistan on 21 March 2023, by Andalus Holdings (ADGM) Limited ("Andalus"), represented by directors Mr. Faraz Minai and Mr. Ghalib Hafiz, each holding 2,500 shares. Andalus, based in Abu Dhabi, is incorporating a company in Pakistan to which these shares will be transferred. On May 10, 2023, Andalus entered into an agreement with the MLCFL that along with its affiliates. It is subsidiary of MLCFL, which is subsidiary of the Holding Company. MLCFL entered into an agreement with NHPL that MLCFL would invest in NHPL, maintaining at least a 66.66% shareholding. The agreement granting the MLCFL ordinary shares, has a term of eight years with a one-year extension option. The principal line of business of NHPL is to establish, manage, and operate healthcare facilities, including hospitals, pharmacies, nursing homes, clinics, laboratories, dental clinics, and healthcare centres. NHPL aims to provide healthcare and surgical services, including the treatment of various diseases. NHPL is currently in the pre-commencement phase and has purchased land for hospital on which it has begun construction work. The registered office of the Company is situated at 1st Floor, F-J Plaza, Block No. 02, Markaz F-7, Islamabad Capital Territory (I.C.T), Pakistan.