Transmission of Half yearly Report for the half year ended December 31, 2025

With Lasting Partnerships

(FORMERLY ORIX MODARABA)

Half Year Ended Report December

Modaraba Information 02

Directors' Review 03

Condensed Interim Statement of Financial Position 07

Condensed Interim Profit and Loss Account and

Other Comprehensive Income (Un-audited) 08

Condensed Interim Statement of Cashflows (Un-audited) 09

Condensed Interim Statement of Changes in Equity 10

Notes to and Forming Part of the Condensed

Interim Financial Statements (Un-audited) 11

Modaraba Company

OLP Services Pakistan (Pvt) Limited

Mr. Naveed Kamran Baloch Chairman / Independent Director

Mr. Raheel Qamar Ahmad Managing Director /

Chief Executive Officer

Mr. Ramon Alfrey Director

Mr. Nausherwan Adil Independent Director Mian Faysal Riaz Director

Mr. Nadim D. Khan Director

Ms. Naila Hasan Female Independent Director

Mr. Muhammad Siddique

Standard Chartered Bank (Pakistan) Limited (Saadiq) Meezan Bank Limited

United Bank Limited (UBL Ameen) Bank Alfalah Limited (Islamic banking) Allied Bank Limited (Islamic banking)

Bank Al Habib Limited (Islamic banking) Habib Bank Limited (Islamic banking)

Al - Barka Bank (Pakistan) Limited

Pakistan Mortgage Refinance Company Limited

MCB Islamic Bank Limited

Habib Metropolitan Bank Limited (Islamic Banking) Askari Bank Limited (Islamic Banking)

Haider Ali Khan

Advocate High Court, Partner, Fazle Ghani Advocates

Mr. Nausherwan Adil Chairman

Mr. Ramon Alfrey Member

Mian Faysal Riaz Member

Ms. Naila Hasan Chairperson

Mr. Ramon Alfrey Member

Mr. Raheel Qamar Ahmad Member

Mian Faysal Riaz Chairman

Mr. Nausherwan Adil Member

Mr. Raheel Qamar Ahmad Member

Mr. Ramon Alfrey Member

Mufti Faisal Ahmed

KPMG Taseer Hadi & Co. Chartered Accountants

OLP Building, Plot no. 16, Sector no. 24, Korangi Industrial Area Karachi.

Office No. 601, 6th Floor,

Syedna Tahir Saifuddin Memorial Foundation Building, Beaumont Road, Civil Lines, Karachi.

Phone: (021) 38341168

Email:askus@olpmodaraba.com

Office No-08, 1St floor,

Park Lane Tower (Mall Of Lahore) 172-Tufail Road, Lahore Cantt.

Phone: (042) 38017006

Ground Floor, Phase 1, State Life Building No. 5, Nazimuddin Road, Blue Area, Islamabad.

Famco Share Registration Service (Private) Limited 8-F, Next to Hotel Faran, Nursery,

Block 6, P.E.C.H.S., Shahra-e-Faisal, Karachi. Tel: (92-21) 34380101-5

Fax: (92-21) 34380106

Email: info.shares@famcosrs.com

For the period ended December 31, 2025

The Board of Directors of OLP Services Pakistan (Private) Limited, the management company of OLP Modaraba is pleased to present the unaudited accounts for the six months period ended December 31, 2025.

1. Economic Outlook

   Over the past year, Pakistan has made progress toward macroeconomic stabilization. Real GDP growth is projected to reach 3.2% in FY26, supported by a moderate recovery in industrial activity and steady expansion in the services sector. Inflation has dropped to 5%, its lowest level in recent years, due to prudent monetary policy and easing global commodity prices. The exchange rate has stabilized, and foreign reserves have improved, supported by remittances and multilateral financing.

   While these developments reflect a more stable economic foundation, certain risks remain elevated. Sustained growth will require deep structural reforms, particularly in tax administration, energy pricing, and governance.

   Pakistan's macroeconomic indicators suggest a cautiously optimistic path forward, provided reform momentum is maintained and external conditions remain supportive. However, the government's continued focus on digital transformation, export diversification, and investment in infrastructure is expected to further support economic resilience. Initiatives aimed at enhancing agricultural productivity, boosting SME financing, and streamlining regulatory frameworks are likely to improve competitiveness and attract foreign direct investment. These efforts, combined with a stable macroeconomic environment, position Pakistan to capitalize on emerging regional trade opportunities and strengthen its long-term growth trajectory.

2. Financial Highlights

   Financial results are summarized as under:

   December 31,

   2025

June 30,

2025

(Rupees in 000)

Profit and Loss

Revenue (net of Ijarah assets depreciation and

Six months ended December 31,

2024

(Rupees in 000)

1. Review of Operations

   By the Grace of Allah, your Modaraba continued to demonstrate strong operational and financial performance during the period under review. Gross margin (revenue net off financial charges and Ijarah assets depreciation) increased by 6.36% to PKR 279.60 million from PKR 262.87 million in the corresponding period last year reflecting its consistent ability to deliver value through effective resources management. Although gross revenue (net of Ijarah assets depreciation) decreased by 22.43% to PKR 634.40 million from PKR 817.85 million in the corresponding period last year mainly due to substantial downward movement of benchmark rates (KIBOR) yet due to efficient liquidity management practices and in line with this reduction of bench mark rates, financial and other charges also decreased to PKR 354.82 million from PKR 554.97 million showing a reduction of 36.07% compared to the corresponding six-months period of last year. Administrative and operating expenses remained well-contained and increased by just 2.92% from PKR 139.35 million to PKR 143.41 million. Due to our prudent approach, a net provision of PKR 22.40 million was charged during the period under review mainly due to subjective downward classification of one customer. Other income decreased by 67.63% to PKR 18.98 million from PKR 58.63 million in the corresponding period last year. Consequently, profit before taxation and levy decreased by 12.29% million to PKR 115.13 from PKR 131.26 whereas net profit for the period decreased by 18.83% to PKR 75.46 million from PKR 92.96 million compared to the corresponding period last year.

   The portfolio of Ijarah finance, Diminishing Musharakah finances and short-term investments stood at PKR 7,430 million compared to PKR 7,707 million as of June 30, 2025, showing a decrease of 3.59% during the six months period. Furthermore, total assets decreased by 3.81% to PKR 8,535 million from PKR 8,874 million as of June 30, 2025. Assets were mainly funded by the Redeemable Capital portfolio of PKR 5,229 million; a 7.18% reduction from PKR 5,633 million as at June 30, 2025. During the period under review, the Modaraba booked fresh disbursements to the tune of PKR 1,619 million as compared to PKR 1,535 million during the corresponding period last year showing an increase of 5.45%.

   The business has been driven mainly by deepening relationships with selective clientele and initiating relationships with good names. The asset portfolio has a good mix of multinationals, large and medium-sized local corporates, selective SME relationships and an excellent housing and consumer portfolio.

   OLP Modaraba remains committed to prudent risk management. Borrower credit profiles are rigorously evaluated at the time of facility approval, with continuous oversight through dedicated Portfolio Management and Early Alert committees. This ensures timely identification of opportunities and supports the Modaraba's long-term financial health.

2. Credit Rating

   The Pakistan Credit Rating Agency Limited (PACRA) has maintained the ratings of your Modaraba as AA (Double A) and A1+ (A one plus) for long-term and short-term respectively on February 28, 2025. These ratings indicate low expectation of credit risk and very strong capacity for timely payment of financial commitments.

3. Acknowledgement

The Board appreciates the support of regulatory authorities, certificate-holders, customers and business partners and looks forward to their support in future.

Karachi: February 17, 2026

Raheel Qamar Ahmad

Managing Director/ CEO

Ramon Alfrey

Director

:s b6J'. /é

<•y/t7^*/ ‹2025,«ñi31

(554,975)

(139,350)

182,157

(30,817)

151,340

131,258

(354,816)

(143,415)

155,146

(22,398)

132,748

115,132

v›! I

92,961

75,456

KPMG Taneer Hadl & Co.

Sheikh Su0an Tnat Bu0dkig No. 2, Road Karachi 75530 Pakbtan

+92 {21) 3T131900. Fax + 2 {21) 35gg60g5

i ozeE osaz xuorros's rwuswnceoet

To ttia oaztfftzms holders otoLp Modazgba

Ineoducgon

Wb have mñevrad tha srnatipanying condemned irtlsrlm etatazieet of Onenctsl poañion of OLP

intnrlm flnanclal statatzmtts Jbrtha ais•month Perlod then end0g ( referred to es the iñt0dm flMnClSl "}. Mdf¥d 0¥ 0f¥t i0 able fttha 2Dd Pr00aftt b0rs €d these in ñm financial atstazants n eccord ›os wtih accounting and reporting g

apldlcabts In PNdatan for ñXstim f¥ianclal rsPortb›g. Ow/saporaibBtyis to expmss a conclusion on theaa imerPn Faanctal stssmargs baaad on otx /s« c

W aonduoed our ra«tew in socordaros wtlti Irtumatlonal Stsndag on Beview Engapar›ents

- A review of k¥erhn f iancial stMsmertts consists of msking g+quines.

2J10.

aooompenylng inis/¥n fbiandai staterrterga •ra not prepare‹t G a0 matortel G aocordanos with the e0o0unting and faPortlrQ at dards u Ns in Pakbtnn c lnteñm

/btaz¥¥aI reporting.

KPMG

KPFIG Taseer Hadi & Co

Other Matter

Pursuant to the requirement of Section 237 i ib: of the Companies 6.ct 20" onl;' cu uI0'i' e figures for the half year presented in tf e secons quarte accoun's a e subject tc a I m tcd scccc re'•ie•' by tn•. statutory auditors of the moaaraDa Accord‹°glj' the 'igures cf the conoensed inlerirr probt and toss account and otner comprehensive come for tne three months pe'iod enned ñ' December 202S have no: been red ie•veo b›' us

The •^8^3 sent partner sn •he •evie'z.' resu'tirg in tn s ingependert nud›tor's revie • epart is

Amyn Malik

Karachi

Date: 19 February 2026

UDIN: RR202510096crPM9v67K

' + " , . .

KPMG Tasccr Hadl & Co.

Chartered Accountants

FINANCIAL POSITION

AS AT DECEMBER 31, 2025

ASSETS

Non-current assets

Note

(Rupees)

Long-term portion of diminishing musharaka 5.5

Ijarah assets 6

Property and equipment 7

Intangible assets 8

Deferred tax assets - net 9

Total non-current assets

Current assets

Current portion of diminishing musharaka 5.5

Ijarah rentals receivable 11

Advances, deposits, prepayments and other receivables

Short-term investment 12

Cash and bank balances 10

Total current assets TOTAL ASSETS

EQUITY AND LIABILITIES CERTIFICATE HOLDERS' EQUITY

Certificate capital Authorised certificate capital

50,000,000 (June 30, 2025: 50,000,000) certificates of Rs. 10 each

Issued, subscribed and paid-up certificate capital

45,383,530 (June 30, 2025: 45,383,530) certificates of Rs. 10 each

Capital reserves Revenue reserve

Non-current liabilities

Long-term portion of redeemable capital 14

Long-term portion of term finance arrangements 13

Long-term portion of security deposits Long-term portion of lease liability Total non-current liabilities

Current liabilities

Current portion of redeemable capital 14.2

Current portion of term finance arrangements 13

Current portion of security deposits Current portion of lease liability Accrued and other liabilities Provision for taxation - net Unclaimed profit distribution Running musharaka

Total current liabilities TOTAL LIABILITIES

TOTAL EQUITY AND LIABILITIES

CONTINGENCIES AND COMMITMENTS 15

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

4,736,612,650

736,741,555

72,962,862

1,825,173

57,377,814 5,605,520,054

2,132,883,863

33,710,624

337,296,977

159,735,406

604,579,710

3,268,206,580

8,873,726,634

500,000,000 453,835,300

578,888,037

294,179,147 1,326,902,484

889,938,591

5,580,448,521

342,429,822

131,090,150

7,852,473

287,907,297

71,327,756

79,892,967

155,936,573

6,656,885,559

102,100,000

587,942,472

147,484,426

52,411,693

7,546,824,150

8,873,726,634

For OLP Services Pakistan (Private) Limited (Management Company)

SD Chief Executive

SD Director

SD Director

SD Chief Financial Officer

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

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

(Rupees)

Income on diminishing musharaka arrangements Ijarah rentals earned

Dividend income

Profit on bank balances

Financial and other charges 16

Depreciation on ijarah assets

ECL (charge) / reversal against ijarah rentals receivable - net ECL charge against diminishing musharaka - net

Other income 11.6

Administrative and operating expenses

Management Company's remuneration 17

Provision for services sales tax on the Management Company's remuneration 18

Provision for Sindh Workers' Welfare Fund 19

Profit for the period before taxation and levy

Levy - final tax 20

Profit for the period before taxation

Taxation 20

Profit for the period after taxation

Other comprehensive income for the period

Total comprehensive income for the period

Earnings per certificate - basic and diluted 21

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

For OLP Services Pakistan (Private) Limited (Management Company)

SD Chief Executive

SD Director

SD Director

SD Chief Financial Officer

CASH FLOWS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the period before taxation

Adjustments for non-cash and other items: Depreciation on tangible assets in own use Depreciation on right-of-use assets

Note (Rupees)

128,444,002

Amortisation on intangible assets 8.1

Depreciation on ijarah assets Gain on disposal of ijarah assets

ECL charge / (reversal) against ijarah rentals receivable - net 11

ECL charge against diminishing musharaka - net 5.3

Profit on bank balances

Levy 20

Financial charges on

• Return on redeemable capital expensed

• Return on running musharaka expensed

• Amortisation of lease liability against right-of-use assets

• Return on term finance arrangements expensed

  Provision for services sales tax on the Management Company's remuneration Provision for Sindh Workers' Welfare Fund - net

  (Increase) / decrease in assets

  Advances, deposits, prepayments and other receivables Ijarah rentals receivable

  Short term investments Diminishing musharaka

  Purchase of assets under Ijarah arrangements

  Proceeds from disposal of assets under Ijarah arrangements

  Increase / (decrease) in liabilities Accrued and other liabilities Advance ijarah rentals received Security deposits

  Profit paid on

• Redeemable capital

• Term finance arrangements

  Taxes and levy paid

  Net cash generated from / (used in) operating activities

  CASH FLOWS FROM INVESTING ACTIVITIES

  Purchases of tangible assets 7.1

  Income received on bank deposits

  Net cash generated from investing activities

  CASH FLOWS FROM FINANCING ACTIVITIES

  Proceeds from redeemable capital less repayments Lease liability paid

  Term finance less repayments

  Profit distributed to certificate holders

  Net cash (used in) / generated from financing activities

  Net increase in cash and cash equivalents during the period

  Cash and cash equivalents at the beginning of the period 25

  Cash and cash equivalents at the end of the period

  The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

  698,146,086 826,590,088

  115,034,668

  19,890,278

  (794,326,979)

  196,811,347

  (365,371,371)

  331,006,800

  4,356,264

  1,166,076

  -213,881,561

  (29,855,340)

  (2,263,481)

  33,080,190

  (43,219,062)

  2,813,582

  401,474,712

  111,762,751

  -

  -2,270,107

  2,678,726

  (496,955,257)

  (44,395,756)

  (4,645,531)

  (18,372,919)

  (67,414,206) 262,220,625

  (459,958,439)

  (126,966,117)

  (586,924,556)

  (32,180,658)

  (356,884,589)

  (5,889,122)

  49,025,379

  43,136,257

  859,570,000

  -(10,803,736)

  (87,776,716)

  760,989,548

  447,241,216

  329,627,579

  776,868,795

  For OLP Services Pakistan (Private) Limited (Management Company)

  SD Chief Executive

  SD Director

  SD Director

  SD Chief Financial Officer

  CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

  FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

  Issued,	Capital reserve			Revenue reserve	Sub Total	Total
  subscribed and paid-up certificate capital	Premium on issue of modaraba certificates	Statutory reserve	Sub-total	Unappropria-ted profit

  (Rupees)

  Balance as on July 01, 2024 (audited)	453,835,300	55,384,700		523,503,337		578,888,037		210,869,362		789,757,399		1,243,592,699
  Total comprehensive income for the period
  - Profit for the six months period ended December 31, 2024	-		-		-		-		92,961,224		92,961,224		92,961,224
  - Other comprehensive income for the six months
  period ended December 31, 2024	-		-		-		-		-		-		-
  Transactions with owners	-		-		-		-		92,961,224		92,961,224		92,961,224
  Contributions and distributions Profit distribution for the year ended June 30, 2024 @ Rs. 2 per certificate declared subsequent to the year ended June 30, 2024	-		-		-		-		(90,767,060)		(90,767,060)		(90,767,060)

  Balance as at December 31, 2024 (un-audited) 453,835,300 55,384,700 523,503,337 578,888,037 213,063,526 791,951,563 1,245,786,863

  453,835,300	55,384,700 523,503,337 578,888,037 294,179,147 873,067,184											1,326,902,484
  - -		- -		- -		- -		75,455,876 -		75,455,876 -		75,455,876 -
  -	- - - 75,455,876 75,455,876											75,455,876
  -	- - - (113,458,825) (113,458,825)											(113,458,825)
  453,835,300	55,384,700 523,503,337 578,888,037 256,176,198 835,064,235											1,288,899,535

  Balance as on July 01, 2025 (audited)

  Total comprehensive income for the period

• Profit for the six months period ended December 31, 2025

• Other comprehensive income for the six months period ended December 31, 2025

Transactions with owners Contributions and distributions

Profit distribution for the year ended June 30, 2025 @ Rs. 2.5 per certificate declared subsequent to the year ended June 30, 2025

Balance as at December 31, 2025 (un-audited)

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

For OLP Services Pakistan (Private) Limited (Management Company)

SD Chief Executive

SD Director

SD Director

SD Chief Financial Officer

NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

1. STATUS AND NATURE OF BUSINESS

   OLP Modaraba ('the Modaraba') was formed under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Rules framed thereunder and is managed by OLP Services Pakistan (Private) Limited ('the Management Company'). The Management Company is a wholly owned subsidiary of OLP Financial Services Pakistan Limited.

   The registered office of the Management Company is situated at OLP Building, Plot No. 16, Sector No. 24, Korangi Industrial Area, Karachi.

   The Modaraba is operated through a head office in Karachi which is situated at 6th Floor, Syedna Tahir Saifuddin Trust Building, Beaumont Road, Civil Lines and two branches which are located in Lahore and Islamabad. The Lahore branch office is situated at office no. 08, Park Lane Tower, 172-Tufail road, Lahore Cantonment. The Islamabad branch is situated at Ground Floor, Phase 1, State Life Building No. 5, Nazimuddin Road, Blue Area, Islamabad.

   The Modaraba is a perpetual Modaraba and is primarily engaged in financing of plant and machinery, motor vehicles (both commercial and private), computer equipment and housing under the modes of ijarah (Islamic leasing) and diminishing musharaka. The Modaraba may also invest in commercial and industrial ventures suitable for the Modaraba. The Modaraba is listed on the Pakistan Stock Exchange Limited.

   The Pakistan Credit Rating Agency Limited (PACRA) has assigned long term rating of AA (June 30, 2025: AA) and short term rating of A1+ (June 30, 2025: A1+) to the Modaraba on February 28, 2025.

2. BASIS OF PREPARATION

   1. Statement of compliance

      These condensed interim financial statements have been prepared in accordance with the approved accounting 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 Standards Board (IASB) as notified under the Companies Act, 2017;

      • Requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981 and Modaraba Regulations, 2021;

      • Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act 2017; and

      • Provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP), under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017.

      Wherever the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Modaraba Regulations, 2021, IFAS, the Companies Act, 2017 and provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP), under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017 differ from IAS 34, the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Modaraba Regulations, 2021, IFAS, the Companies Act, 2017 and provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP), under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017 have been followed.

   2. The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of IAS 34: 'Interim Financial Reporting'. These condensed interim financial statements do not include all the information and disclosures required for a full set of financial statements and should be read in conjunction with the annual published audited financial statements of the Modaraba for the year ended June 30, 2025.

   3. These condensed interim financial statements are unaudited. However, a limited scope review has been performed by the external auditors in accordance with the requirements of the Code of Corporate Governance.

   4. Functional and presentation currency

      These condensed interim financial statements are presented in Pakistani Rupees which is also the Modaraba's functional currency. All financial information presented has been rounded off to the nearest Rupee, unless otherwise stated.

3. MATERIAL ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS

   1. The accounting policies and accounting estimates adopted and the methods of computation of balances used in the preparation of these condensed interim financial statements are the same as those that were applied in the preparation of the annual published audited financial statements of the Modaraba for the year ended June 30, 2025.

   2. The preparation of these condensed interim financial statements in conformity with the accounting and reporting standards as applicable in Pakistan requires the management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenses. It also requires the management to exercise judgements in application of the Modaraba's accounting policies. The estimates, judgements and associated assumptions are based on the management's experience and various other factors that are believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both the current and future periods. In preparing these condensed interim financial statements, the significant judgements made by the management in applying the Modaraba's accounting policies and the key sources of estimation of uncertainty were the same as those that were applied in the annual published audited financial statements of the modaraba for the year ended June 30, 2025.

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

      There are certain amendments to the standards and new interpretations that are mandatory for accounting periods beginning on or after July 1, 2025 but are considered not to be relevant or do not have any significant effect on the Modaraba's operations and are, therefore, not detailed in these condensed interim financial statements.

   4. Standards, interpretations and amendments to the published accounting and reporting standards that are not yet effective

      There are certain other new and amended standards, interpretations and amendments that are mandatory for the Modaraba's accounting periods beginning on or after January 01, 2026 but are considered not to be relevant or will not have any significant effect on the Modaraba's operations and are, therefore, not detailed in these condensed interim financial statements.

4. FINANCIAL RISK MANAGEMENT

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

5. DIMINISHING MUSHARAKA

   Staff - considered good

   • Housing finance

   • Motor vehicles

   • Others

     Others - considered good

   • Housing finance

   • Motor vehicles

   • Plant, machinery and equipment

     Others - considered bad or doubtful

   • Housing finance

   • Motor vehicles

   • Plant, machinery and equipment

   Note

   5.1 & 5.2

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

Accrued profit on diminishing musharaka 5.4

Less: ECL Allowance in respect of diminishing musharaka 5.5 & 5.9

2025

(Audited) (Rupees)

Opening balance

Provision / (reversal) for the period / year - net Closing balance

2025

(Audited) (Rupees)

1. 1. During the period, the Modaraba has not availed the benefit of forced sales value of assets held as collateral against non-performing diminishing musharaka as allowed under the Modaraba Regulations, 2021 issued by the SECP.

   2. Diminishing musharaka includes Rs 175.74 million (June 30, 2025: Rs 176.51 million) which have been placed under non-performing status.

   3. Diminishing musharaka (other than staff finances) carries profit at the rates ranging from 12.38% to 17.18% (June 30, 2025: 12.81% to 26.19%) per annum.

   4. The following table sets out information about the Expected Credit Losses (ECL) provision of diminishing musharaka financing:

      Diminishing musharaka

      Stage 1

      Stage 2

      Stage 3

      December 31, 2025		June 30, 2025
      Drawn Exposure (EAD)	Expected Credit Loss Allowance	Drawn Exposure (EAD)	Expected Credit Loss Allowance

      6,423,963,636	2,409,004	6,397,234,623	4,476,308
      502,752,142	4,430,415	460,427,436	6,117,442
      175,744,591	114,811,924	176,507,360	90,148,593
      7,102,460,369	121,651,343	7,034,169,419	100,742,343

      (Rupees) (Rupees)

   5. An analysis of change in ECL provision in relation to diminishing musharaka financing is, as follows:

      December 31, 2025
      Stage 1	Stage2	Stage 3	Total

      (Rupees)

      4,476,308 (2,067,304)	6,117,442 (1,687,027)	90,148,593 24,663,331	100,742,343 20,909,000
      2,409,004	4,430,415	114,811,924	121,651,343

      Opening balance

      (Reversal) / charge for the period Closing balance

      December 31, 2024
      Stage 1	Stage2	Stage 3	Total

      (Rupees)

      Opening balance 3,283,926 5,929,517 48,373,200 57,586,643

      Charge / (reversal) for the period 2,622,366 (1,191,202) 31,649,026 33,080,190

      Closing balance 5,906,292 4,738,315 80,022,226 90,666,833

   6. Particulars of credit loss allowance - diminishing musharaka financing

      December 31, 2025
      Stage 1	Stage2	Stage 3	Total

      Opening balance

      Net impairment charge / (reversal) Transfer to Stage 1

      Transfer to Stage 2 Transfer to Stage 3

      Closing balance

      (Rupees)

      4,476,308	6,117,442	90,148,593	100,742,343
      (3,967,603)	213,272	24,663,331	20,909,000
      2,654,710	(2,654,710)	-	-
      (754,411)	754,411	-	-
      -	-	-	-
      2,409,004	4,430,415	114,811,924	121,651,343

      December 31, 2024
      Stage 1	Stage2	Stage 3	Total

      (Rupees)

      Opening balance	3,283,926	5,929,517	48,373,200	57,586,643
      Net impairment charge / (reversal)	3,251,785	(569,686)	30,398,091	33,080,190
      Transfer to Stage 1	120,920	(120,920)	-	-
      Transfer to Stage 2	(750,339)	750,339	-	-
      Transfer to Stage 3	-	(1,250,935)	1,250,935	-
      Closing balance	5,906,292	4,738,315	80,022,226	90,666,833

2. IJARAH ASSETS

   Cost

   1,547,736,773	1,711,367,184
   (964,355,796)	(960,341,674)
   (14,283,955)	(14,283,955)
   569,097,022	736,741,555

   Accumulated depreciation Impairment against ijarah assets

   Note

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

Net book value 6.1 & 6.2

December 31,

2024

(Audited)

Ijarah assets

Additions at cost during the period

• Plant, machinery and equipments Disposals at cost during the period

• Plant, machinery and equipments

• Motor vehicles

(Rupees)

1. 1. The Modaraba has entered into various ijarah agreements for periods ranging from 1.5 to 6 years (June 30, 2025: 1.5 to 6 years). Security deposits ranging between 0% to 43% (June 30, 2025: 0% to 43%) are obtained at the time of disbursement. The rate of profit implicit in ijarah finance ranges between 12.90% to 15.69% (June 30, 2025: 13.31% to 26.07%) per annum.

   2. During the period, the Modaraba has not availed the benefit of forced sales value of assets held as collateral against non-performing ijarah as allowed under the Modaraba Regulations, 2021 issued by the SECP.

   3. Ijarah includes Rs. 76.60 million (June 30, 2025: Rs. 102.28 million) which has been placed under non-performing status.

2. PROPERTY AND EQUIPMENT

   Note

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

Own use 7.1

Right-of-use asset 7.1

1. 1. The following is a statement of property and equipment:

      Own use		Right-of-use assets
      Additions	Disposals	Additions	Disposals

      Office equipment, appliances and computer systems

      As on December 31, 2025

      (Rupees)

      1,100,000	-	-	-
      1,100,000	-	-	-
      Own use		Right-of-use assets
      Additions	Disposals	Additions	Disposals

      Building Office equipment, appliances and	-	- 53,017,401	-
      computer systems	4,999,442	- -	-
      As on December 31, 2024	4,999,442	- 53,017,401	-

      (Rupees)

   2. During the six months period ended December 31, 2024, the Modaraba has accounted for lease arrangements pertaining to its offices under IFRS 16 and recorded right of use asset and lease liabilities in the financial statements. The lease term is for a period of five years with quarterly payments subject to annual increment at an agreed rate.

2. INTANGIBLE ASSETS

   Note

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

Software 8.1

1. 1. Statement of Intangible assets

      Opening balance

      Cost

      Accumulated amortisation Net book value

      Additions during the period / year

      Disposals

      Cost

      Accumulated amortisation

      Amortisation charge for the period / year

      Closing net book value

      Amortisation rate (% per annum)

      Closing balance

      Cost

      Accumulated amortisation

      Net book value

   2. During the period, the Modaraba acquired software amounting to Rs. Nil (December 31, 2024: Rs. 227,700).

2. DEFERRED TAX ASSETS

   Note

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

81,513,033

57,377,814

Deferred tax assets 9.1

1. 1. Movement in temporary differences during the period:

      Deductible temporary differences:

      • Ijarah assets

      • Property and equipment

      • Intangible assets

      • Right of use assets

      • ECL allowance in respect of Ijarah financing and diminishing musharaka

      • Provision for SWWF

      • Provision for SST on Management Company Remuneration

        Taxable temporary differences:

      • Staff finances

      • Lease liabilities

      • Accrued profit on deposit account

      As at July 01, 2025

      Recognised in P&L

      Recognised in OCI

      As at December 31, 2025

      23,855,707	14,510,815	-	38,366,522
      3,577,083	(94,317)	-	3,482,766
      2,688,441 1,893,788	(199,842) 2,440,694	-	2,488,599 4,334,482
      17,849,707	7,727,370	-	25,577,077
      5,772,915	880,613	-	6,653,528
      4,059,722	746,282	-	4,806,004
      59,697,363	26,011,615	-	85,708,978
      (541,976)	-	-	(541,976)
      (1,777,573)	(1,072,112)	-	(2,849,685)
      -	(804,284)	-	(804,284)
      (2,319,549)	(1,876,396)	-	(4,195,945)
      57,377,814	24,135,219	-	81,513,033

      (Rupees)

2. CASH AND BANK BALANCES

   Balances with banks

   - in current accounts

   Note

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

5,022,674

592,659,788

597,682,462

14,144,315

- in deposit accounts 10.1 & 10.2

589,909,805

604,054,120

1. 1. These carry profit at the rates ranging from 3.5% to 10.55% (June 30, 2025: 5% to 19%) per annum.

   2. The balances held with banks in saving accounts and investment in mutual funds have been kept in order to comply with the requirement of the Modaraba Regulations, 2021 issued by the SECP with respect to the maintenance of the prescribed liquidity against the Certificates of Musharaka issued by the Modaraba.

2. IJARAH RENTALS RECEIVABLE

   Ijarah rentals receivable - considered good

   Note

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

Ijarah rentals receivable - considered bad or doubtful 11.3 Less: allowance for ECL on ijarah rentals receivable 11.1

2025

(Audited) (Rupees)

1. 1. During the period, the Modaraba has not availed the benefit of forced sales value of assets held as collateral against non-performing ijarah as allowed under the Modaraba Regulations, 2021 issued by the SECP.

   2. The following table sets out information about the Expected Credit Loss (ECL) allowance on ijarah rentals receivable:

      Ijarah

      Stage 1

      Stage 2

      Stage 3

      less: impairment on ijarah assets

      December 31, 2025		June 30, 2025
      Drawn Exposure (EAD)	Expected Credit Loss Allowance	Drawn Exposure (EAD)	Expected Credit Loss Allowance

      273,182,717	99,921	519,124,456	279,548
      116,681,624	2,566,826	46,139,020	208,320
      87,461,591	76,601,158	102,282,812	77,290,863
      477,325,932	79,267,905	667,546,288	77,778,731
      -	(14,283,955)	-	(14,283,955)
      477,325,932	64,983,950	667,546,288	63,494,776

      (Rupees) (Rupees)

      1. ECL is recorded on exposure at default which consists of future cashflows that the Modaraba is entitled to receive through out the contract period. While ijarah receivable is only recorded for the amount accrued at period end. Therefore if the ECL amount exceeds the ijarah receivable recorded, it is recognised as impairment of ijarah asset. There has been no change in the impairment on ijarah assets during the period ended December 31, 2025.

   3. An analysis of change in allowance for ECL in relation to ijarah financing is as follows:

      December 31, 2025
      Stage 1	Stage2	Stage 3	Total

      Opening balance

      (Reversal) / charge for the period Closing balance

      (Rupees)

      279,548 (179,627)	208,320 2,358,506	77,290,863 (689,705)	77,778,731 1,489,174
      99,921	2,566,826	76,601,158	79,267,905

      June 30, 2025
      Stage 1	Stage2	Stage 3	Total

      Opening balance		616,793	- 53,543,043	54,159,836
      (Reversal) / charge for the year		(337,245)	208,320 9,463,865	9,334,940
      Closing balance		279,548	208,320 63,006,908	63,494,776

      (Rupees)

      December 31, 2024
      Stage 1	Stage2	Stage 3	Total

      Opening balance		616,798	-	83,494,934	84,111,732
      (Reversal) / charge for the period		(454,571)	1,150,107	(1,134,776)	(439,240)
      Closing balance		162,227	1,150,107	82,360,158	83,672,492

      (Rupees)

   4. Particulars of credit loss allowance - Ijarah rental receivable

      December 31, 2025
      Stage 1	Stage2	Stage 3	Total

      Opening balance

      Net impairment charge / (reversal) Transfer to Stage 1

      Transfer to Stage 2 Transfer to Stage 3

      Closing balance

      (Rupees)

      279,548	208,320	77,290,863	77,778,731
      (41,254)	2,220,133	(689,705)	1,489,174
      -	-	-	-
      (138,373)	138,373	-	-
      -	-	-	-
      99,921	2,566,826	76,601,158	79,267,905

      December 31, 2024
      Stage 1	Stage2	Stage 3	Total

      (Rupees)

      Opening balance	616,798	-	83,494,934	84,111,732
      Net impairment charge / (reversal)	(339,257)	1,034,793	(1,134,776)	(439,240)
      Transfer to Stage 1	96,194	(96,194)	-	-
      Transfer to Stage 2	(211,508)	211,508	-	-
      Transfer to Stage 3	-	-	-	-
      Closing balance	162,227	1,150,107	82,360,158	83,672,492

   5. Other income includes terminations of ijarah leases which had resulted in gain on termination amounting to Rs. 6.96 million (December 31, 2024: Rs. 29.85 million)

2. SHORT-TERM INVESTMENT

At fair value through profit or loss

Note

June 30,

2025

(Audited) (Rupees)

The aforementioned facilities are secured against exclusive hypothecation over term deposit receipts, specific movable ijarah and diminishing musharaka assets and the rentals / installments receivable in respect of such assets.

1. REDEEMABLE CAPITAL - PARTICIPATORY AND UNSECURED

   Note

   June 30,

   December 31,

   2025

   (Un-audited)

2025

(Audited) (Rupees)

Certificates of musharakah (COM) 14.1 & 14.1.1 Profit payable on COM 14.3

Less: current portion of redeemable capital 14.2

1. 1. 1. This includes COM issued to key management personnel amounting to Rs. 33.55 million (June 30, 2025: Rs. 33.65 million) at the rate ranging from 0% to 10.35% (June 30, 2025: 0% to 21.05%) per annum.

   2. Current portion of redeemable capital

      Current portion of certificates of musharakah Profit payable on COM

      Payable to holders of matured

      Note

      June 30,

      2025

      (Audited) (Rupees)

      3,663,650,000	5,394,650,000
      51,883,019	49,093,521
      264,505,000	136,705,000
      3,980,038,019	5,580,448,521

      certificates of musharakah 14.2.1

      1. These represent amounts with respect to already matured certificates against which respective customer's request for encashment along with original certificates are pending

   3. During the current period, the modaraba reclassified accrued profit from 'Accrued and other liabilities' for better presentation in compliance with the requirement of IFRS-09, "Financial Instruments", effective interest rate (EIR) method.

2. CONTINGENCIES AND COMMITMENTS

   1. Contingencies

      There were no contingencies outstanding as at December 31, 2025 and June 30, 2025.

   2. Commitments

      The Modaraba has issued letter of comfort to Askari Bank Limited on behalf of M/s. Hussain Can Company (Pvt.) Limited amounting to Rs. 39.76 million (June 30, 2025: Sindh Bank Limited on behalf of M/s. AIMS Hosiery Limited & M/s. Demont Research Laboratories (Pvt.) Limited as amounting to Rs. 102.17 million) for guaranteeing the payment against import of plant and machinery which will ultimately be given by the Modaraba to the client against diminishing musharaka or ijarah arrangements.

3. FINANCIAL AND OTHER CHARGES

   Return on redeemable capital expensed

   Return on term finance arrangements expensed Return on running musharaka expensed Commission

   Unwinding of security deposits

   Amortisation of lease liability against right-of-use assets Bank charges

   Six months period ended December 31,

   2025 2024

   255,057,177	401,474,712
   62,272,706	111,762,751
   4,740,907	-
   22,022,242	23,045,558
   6,522,890	18,438,677
   3,702,148	-
   498,359	252,943
   354,816,429	554,974,641

   (Un-audited) (Rupees)

4. MANAGEMENT COMPANY'S REMUNERATION

   The Modaraba Management Company is entitled to a remuneration for services rendered to the Modaraba under the provisions of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 up to a maximum of 10% per annum of the net annual profits of the Modaraba. The remuneration for the six months period ended December 31, 2025 has been recognised at 10% (June 30, 2025: 10%) of the profit before levy and taxation for the period before charging such remuneration.

5. PROVISION FOR SERVICES SALES TAX ON THE MANAGEMENT COMPANY'S REMUNERATION

During 2013, the Sindh Revenue Board (SRB) levied Sindh sales tax on management remuneration, which is paid by the Modaraba to its Management Company under the provisions of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, treating it as a fee and chargeable under the Sindh Sales Tax Act, 2011. The Modaraba, however, considers that the management remuneration is an allocation of profit under the Shariah principle of "Modaraba" and therefore does not qualify to be treated as a fee and hence, does not attract any services sales tax.

Pursuant to Order number SRB-COM-I/AC-V/Mgt/SCSOP/5878/2012 of the SRB dated April 22, 2013 issued to the Management Company, the Modaraba has recorded a provision in respect of Sindh Sales Tax on the Management Company's remuneration at applicable rates with effect from November 1, 2011. The Management Company had filed an appeal before the Appellate Tribunal SRB against this order. The Appellate Tribunal SRB through its order dated February 19, 2016 allowed the appeal and set aside the order-in-original and order-in-appeal and remanded back the case to the assessing officer for re-assessment. Thereafter, on April 8, 2016, the assessing officer issued a fresh notice to the Management Company contending that sales tax on the Management Company's remuneration is applicable. Against the notice, the Management Company has filed an appeal before the Honorable Sindh High Court. As an interim relief, the Court vide its Order dated October 13, 2016 has stopped the assessing authorities to pass any final order till the culmination of its proceedings. The interim relief was reconfirmed by the Court in its Order dated November 5, 2018. In an order dated September 12, 2024, the Honorable Sindh High Court (the Court) rejected the complaint and advised to plead its case before the department. However, the Modaraba has continued to recognise the provision for services sales tax on the Management Company's remuneration.