Transmission of Quarterly Report for the Period Ended 30-06-2025

COMPANY INFORMATION

Board of Directors

Mr. M. Naseem Saigol Chairman - Non Executive

Mr. Muhammad Murad Saigol Chief Executive Officer - Executive/Certified (DTP) Mr. Muhammad Zeid Yousuf Saigol Director - Executive/Certified (DTP)

Syed Manzar Hassan Director - Executive/Certified (DTP)

Mrs. Sadaf Kashif Director - Independent/Certified (DTP) Mr. Muhammad Kamran Saleem Director - Independent/Certified (DTP) Mr. Anjum Nisar Director - Non Executive

Mr. Javed Siddique Director - NBP Nominee U/S 164 of the Act / Non Executive

Audit Committee

Mr. Muhammad Kamran Saleem Chairman/Member Mr. M. Naseem Saigol Member

Syed Manzar Hassan Member

Mrs. Sadaf Kashif Member

HR & Remuneration Committee

Mr. Muhammad Kamran Saleem Chairman/Member Syed Manzar Hassan Member

Mrs. Sadaf Kashif Member

Company Secretary

Muhammad Omer Farooq

Chief Financial Officer

Syed Manzar Hassan, FCA

Auditors

M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants

A member of Russell Bedford International

Legal Advisor

M/s Hassan & Hassan Advocates

Shariah Advisor

Mufti Altaf Ahmed

Company Registration No.

0000802

National Tax No. (NTN)

2011386-2

Status of Company

Public Interest Company (PIC)

Stock Exchange Symbol

PAEL

Registered Office

10-G, Mushtaq Ahmed Gurmani Road,

Gulberg-II, Lahore

Tel: 042-35920151-59 (Pabx) & 042-35920133 (Direct)

E-Mail: shares@saigols.com

Share Registrar

Corplink (Pvt.) Limited

Wings Arcade, 1-K, Commercial, Model Town, Lahore

Tel: 042-35916714, 35839182,

Fax: 042-35869037

E-Mail: shares@corplink.com.pk

Manufacturing Unit I

14-K.M. Ferozepur Road, Lahore Tel: 042-35920151-9 (9 Lines)

Website: https://www.pel.com.pk

Manufacturing Unit II 34-K.M. Ferozepur Road, Keath Village, Lahore Tel: 042-35935151-2

Karachi

Ground Floor Baig Tower Near Balouch Colony Bridge, Shahrah-e-Faisal,

Karachi

Tel: 021-32200951-4

Islamabad

Room # 301, 3rd Floor,

Green Trust Tower, Blue Area, Islamabad Tel: 051-2824543, 2828941

Fax: 051-2273858

Bankers

Albaraka Bank (Pakistan) Limited Askari Bank Limited

Bank Alfalah Limited

Bank Islami (Pakistan) Limited Bank Makramah Limited Faysal Bank Limited

First Habib Modaraba

Habib Bank Limited - Islamic Banking MCB Bank Limited

National Bank of Pakistan OLP Modaraba

Pak Brunei Investment Company Limited

Pak Libya Holding Company (Private) Limited Pak Oman Investment Company Limited Samba Bank Limited

Saudi Pak Industrial and Agriculture Investment Company Limited Silk Bank Limited

Sindh Bank Limited The Bank of Khyber The Bank of Punjab Summit Bank Limited United Bank Limited

Tel: (+92 42) 35920151-9

Website: : https://www.peLcom.pk

Dear Share Holders

The Directors of Pak Elektron Limited (the "Company") are pleased to submit Company's un- audited condensed interim financial statements duly reviewed by the Company's Auditors, for the half-year ended on June 30, 2025.

FINANCIAL & OPERATIONAL REVIEW

Macro -Economic Environment

Global Economic Overview

The global economy is showing slow but steady growth, with global GDP rising around 2.4% to 2.8% in the first half of the year. Advanced economies such as the United States, Europe, and Japan are growing modestly, with growth between l% and 1.6%, as they deal with high interest rates, slowing demand, and lingering inflation. Meanwhile, some emerging markets are performing much better. India continues to grow quickly, with strong consumer spending and business activity pushing its growth to around 6%. China, however, is seeing slower growth at about 4.6%, mainly because of its troubled property sector and weak consumer confidence.

Inflation is gradually falling in many countries, giving central banks room to start cutting interest rates. The U.S. Federal Reserve and European Central Bank have both begun to lower rates carefully to support growth without letting inflation rise again. However, there are still big concerns. Rising trade tensions-especially new tariffs from the U.S.-are causing uncertainty in global trade. Political risks, like tension in the Middle East and the threat to oil shipments through the Strait of Hormuz, are also making energy prices more unstable.

At the same time, global stock markets-especially outside the U.S.-have been performing well, helped by a weaker dollar and stronger business outlooks abroad. Green energy, technology, and infrastructure sectors are seeing strong investment. However, some industries like real estate are under pressure due to high borrowing costs and changes in work habits. Overall, while the world economy is more stable than in recent years, there are still many challenges ahead, and the second half of 2025 will depend on how global risks are managed.

Registered Office: 10-G, Mushtaq Ahmed Gurmani Road, Gulberg-II, Lahore Tel: (+92-42) 35920131 & (+92-42) 35920133 Email: shares@saigols.com

Tel: : (+92 42) 35920151 9

Website: : https://www.pel.com.pk

Domestic Economic Landscape

Pakistan's economy in FY25 showed signs of recovery and stabilization after several challenging years. The country's real GDP growth was recorded at 2.68%, slightly below the official target of 3.6% but still better than the previous year's 2.5%. This positive shift was driven by improvements in agriculture and certain service sectors, although industrial growth remained under pressure. Inflation remained under control, with the Consumer Price Index (CPI) recorded at 4.6%. The Ministry of Finance projected inflation to stay within the 3-4% range in June 2025, a notable decline from the high levels seen in previous fiscal periods, largely due to falling energy and food prices.

On the fiscal side, performance improved markedly. The fiscal deficit was reduced to 2.6% of GDP during the first three quarters of FY25, compared to 5.9% in the same period of the previous year. Additionally, the government recorded a primary surplus of 3.2% of GDP in the July-April period, reflecting tighter fiscal management and better revenue mobilization. These improvements suggest a more disciplined approach to public finance and greater alignment with international financial institutions' expectations.

The external sector also recorded significant gains. The current account posted a surplus of

$1.81 billion during July-April FY25, a major improvement over the prior year's deficit. This turnaround was largely supported by a strong increase in workers' remittances and improved export performance. Remittances hit a historic monthly high of $4.1 billion in March 2025 and totaled $31.2 billion over ten months, marking a 31% year-on-year increase. Export earnings rose by 8.7% to $10.5 billion in the first four months of FY25, although imports also grew by 13% to $18.8 billion. Despite the rise in imports, the improved current account and increased foreign exchange inflows helped strengthen the country's reserves, which climbed to $16.64 billion in May 2025.

Large Scale Manufacturing (LSM), however, continued to face challenges. It declined by 1.5% during July-April FY2S, a reversal from the 0.3% growth seen during the same period in the previous year. Nonetheless, LSM showed some signs of recovery, posting a 2.3% year-on-year growth in April 2025. In agriculture, the government focused on achieving self-sufficiency by ensuring timely inputs and support for key crops like wheat. These efforts were aimed at boosting output and reducing dependency on imports.

Monetary policy was adjusted in response to easing inflation. The central bank reduced the policy rate to 11% in May 2025, down from a peak of 22%, indicating a shift toward supporting growth as inflationary pressures subsided. Lower energy and food prices also contributed to this policy shift. Meanwhile, the Pakistan Stock Exchange (PSX) reflected investor optimism during this period. The KSE-100 Index posted strong performance throughout much of FY25, buoyed by macroeconomic stability, falling interest rates, and improved corporate earnings in

Registered Office: 10-G, Mushtaq Ahmed Gurmani Road , Gulberg-II, Lahore Tel: (+92-42) 35920131 A (+92-42) 35920133 Email: shares@saigols.com

Tel: : (+92 42) 35920151-9

Website: : https://www.pel.com.pk

key sectors like banking, energy, and cement. Increased foreign investor participation and confidence in ongoing structural reforms also contributed to a bullish trend in the market.

Overall, while Pakistan's economy still faces structural challenges, FY25 reflected a cautiously optimistic picture with progress on the fiscal and external fronts, a return to moderate growth, improved investor confidence, and early signs of recovery in key sectors.

INDUSTRY OVERVIEW

In FY25, Pakistan's Large-Scale Manufacturing (LSM) sector fell by 1.5% from July 2024 to April 2025 because of high costs, low demand, and supply problems. Important industries like textiles and automobiles were hit the hardest. Many factories faced higher energy prices and frequent power cuts, which made it harder to produce goods. High interest rates also made borrowing money expensive for businesses. But in April 2025, the sector showed signs of improvement with 2.3% growth compared to the same month last year. This was helped by lower interest rates, better energy supply, and government support. While the overall situation is still challenging, this growth hints at a slow and steady recovery ahead.

Company Performance Overview

During the period under review, the company's performance has shown significant improvement, driven by continuous research and development, the introduction of market-competitive models, and a strong focus on energy efficiency and advanced features. By launching energy-efficient and aesthetically enhanced products, the company has capitalized on rising lifestyle standards, urbanization, and the increasing purchasing power of consumers.

Export of transformers to USA and company's multi-brand strategy, in the home appliances division also contributed in this growth.

Summary of operating results is presented as below:

Registered Office: 10-G. Mushtaq Ahmed Gurmani Road, Gulberg-II, Lahore Tel: (+92-42) 35920131 & (•92-42) 35920133 Email: shares@saigols.com

Tel: : (*92 42) 35920151-9

Website: ' https://www.pel.com.pk

During the period review, the company recorded a notable revenue growth of 22.27%, reaching Rupees 48,738 million compared to Rupees 39,862 million in the corresponding period of the previous year. Gross profit also increased significantly, rising by 19.26% to Rupees 9,605 million from Rupees 8,054 million in the same period last year. Additionally, financial charges fell by Rupees 707 million due to better cash management and reduced policy rate.

As a result, the company's profit after tax increased to Rupees 2,369 million, up by Rupees 953 million from last year's Rupees 1,416 million. This growth was driven by higher sales, a stronger supply chain and improved market confidence along with early signs of economic recovery boosting household spending.

Appliances Division

During the period under review, the Appliance Division experienced a remarkable 53.90% increase in revenue, reaching Rupees 35,410 million compared to Rupees 23,008 million in the same period of the previous year.

Stable economic conditions, including a steady exchange rate and stable inflation, boosted consumer purchasing power and increased demand for home appliances. PEL capitalized on its thorough product innovation, a wider distribution network and smart pricing strategies further strengthening its market leadership.

PEL has entered into a strategic partnership under a Licensing Agreement with Electrolux AB, a global leader in multi category home appliances. The collaboration aims to leverage strength of the Company to drive sustainable growth.

Power Division

During the period under review, the Power Division recorded a 20.92% decline in revenues, amounting to Rupees 13,328 million compared to Rupees 16,854 million in the corresponding period of the previous year.

This decline is primarily attributed to a timing difference of order in-take in this segment. Nevertheless, the growing demand for electricity has led the government to initiate upgrades in the Transmission and Distribution (T&D) infrastructure, creating new growth opportunities within this sector. Additionally, continued industrial expansion and a rising housing sector are further driving demand for the Power Division's offerings.

Registered Office: 10-G, Mushtaq Ahmed Gurmani Road, Gulberg-I I, Lahore Tel: (+92-42) 3592013 1 & (+92-42) 35920133 Email:

PAK ELEKTRON LIMITED Head Oftice:

Tel: Website:

14-km. F erozepur Road, Lahore-54760 P akislan

G.P.O. Box No. 1614, Lahore - P akistan.

: (+92 42) 35920151-9

https://www.pel.com.ok

PEL has successfully commenced its export operations to the United States of America. The first consignment of transformers has sailed from Pakistan on March 13th, 2025. This marks a significant milestone in our business expansion strategy and reflects our commitment to exploring new international markets. We remain dedicated to enhancing our global footprint and delivering high-quality products to our customers worldwide.

Recently Tariff regime is implemented by USA resulting inflationary trend, which may affect the demand side however we think that the demand of Transformers is inelastic and with an increase in price the demand will not be affected in proportionate manner. Further certain competitive countries duty rates are even higher than Pakistan such as China, Vietnam and many other countries. There is a likely chance of reduction in raw materials cost due to imposition of Tariff and lowering of Oil prices and surplus capacities in international markets.

Future Outlook

Global Economic Outlook

The global economic outlook is cautiously positive, with steady but uneven growth expected in the coming years. Emerging markets are likely to see faster expansion, supported by technology and infrastructure investments, while advanced economies may face slower growth due to aging populations and tighter financial conditions. Key drivers include digital innovation, renewable energy, and global trade, though risks such as inflation, climate change, and political tensions may create challenges. Overall, adaptability and cooperation will be essential for long-term stability.

Country Economic Outlook

Pakistan's economic future looks cautiously hopeful. Growth in FY2025 is expected to be around 2.6-2.7%, with a gradual rise to 3.2-3.5% in the next two years. The government's "Uraan Pakistan" five-year plan aims to boost exports, improve technology, expand green energy, and create more jobs. Recent signs are positive, with inflation falling, remittances increasing, the current account showing a surplus, and foreign investment growing. Support from the World Bank's $20 billion package will also help key sectors like energy and infrastructure.

However, challenges remain. Pakistan still faces high debt, the risk of climate-related disasters, high floods and the need for faster reforms in tax, energy, and state-owned companies. The economy is also vulnerable to changes in global prices and political uncertainty. To achieve

Registered Office: 10 G. Mu shtaq Ahmed Gurmani Road, Gulberg-I|, Lahore Tel: (+92-42) 3592013 1 ‹" (+92-42) 35920 133 Email: shares@saigols.com

PAK ELEKTRONLIMITED

Head Office: 14-Km, Ferozepur Road, Lahore-5^760 Pakistan

G.P.O. Box No 1614, Lahore - Pakistan.

Tel: : (*92 42) 3592015 -9

Website: : https://www.pel.com.pk

long-term and stable growth, the country will need to stay focused on reforms, strengthen governance, and build resilience against future shocks.

Company Future Outlook

The company is working on expanding globally by focusing on exports and improving its products. It successfully entered the U.S. power market and plans to continue growing internationally by using its expertise and high-quality standards for long-term success.

Acknowledgement

We would like to thank our Board of Directors for continuous support and guidance. We are also thankful to our team for their dedicated efforts to make the company operationally sustainable through this challenging era.

We are confident with continued team efforts that we will meet expectation of all stake holders i.e., Shareholders, Creditors and Customers.

On behalf of the Board of Directors

Lahore

August 28, 2025.

M. Murad Saigol

Chief Executive Officer

M. Zeid Yousuf Saigol Director

Registered Office: 10-G, Mrishtag Ahmed Gurm ani Road, Gulberg-II, Lahore Tel: (+92-42) 3592013 1 & (+ 92-42) 35920 133 Enail: sha res@saigols.com

r

Rahman Sarfaraz Rahim Iqbal Rafiq

Chartered Accountants

72-A, Faisal Town, Lahore - 54770, Pakistan.

T: +92 42 35160430 - 33

E: lahore@rsrir.com W: https://www.rsrir.com

INDEPENDENT AUDITORS' REVIEW REPORT

To the members of PAK ELEKTRON LIMITED

Report on the Review of Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of PAK ELEKTRON LIMITED (the 'Company'] as at 30 June 2025 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred to as the 'interim financial statements'). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information performed by the Independent Auditor of the Entity." A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

COnClUSiOFl

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

Other Matters

Pursuant to the requirement of Section 237 (1) (b) of the Companies Act, 2017, only cumulative figures for the six-month period, presented in the second quarter financial statements are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-month period ended 30 June 2025 have not been reviewed by us.

The engage ent partner on the review resultin endent auditor's review report is ALI RAZA JAFFERY.

RAHMA SA ARAZ RAHIM BAL

C/bartered Accountants Lahore | 28 August 2025

UDIN: RR2025107040K6orhpJ9

°G O'

Member of Russell Bedford International - a global network of Independent professional services firms

Page 1 of 1

M. MURAD SAIGOL

Chlef Execurive Officer

M. ZEID YOUSUF SAIGOL

DJrector

SYE ANZAR HASSAN

Chief Flnanc/ai ofncer

M. MURAD SAIGOL

Chief Executive Officer

M. ZEID YOUSUF SAIGOL

Director

SYED QANZAR HASSAN

Chlef Flnanc lal Officer

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

Six-month period ended Three-month period ended

the annexed notes from 1 to 22 form on integral part of lhese interim ñnanicul ytaCements

Chief Executive Officer

M. ZEID YOUSUF SAIGOL

M. MURAD SAIGOL

Director

D MANZAR HASSAN

Chief FinaneTal Offieer

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

Six-monthperiod ended Three-month period ended

The annexed nodes mom 1 to 22 torm an integral part of these interim finanical statements

M. MURAD SAIGOL

Chief Executive Officer

M. ZEID YOOSUF SAIGOL

OR HA88AN

Chief inanciai OPicer

Director

PAK ELEKTRON LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

Issued ordinary share capital

Issued preference share capital

5hare premlum

Revaluation

reserve

Reta in ed earning s _

edu

Total

As at 01 January 2024 - [Audited]

Total comprehensive income for the period

Profit after income taxes

Other comprehensive loss aner income taxes

Other transactions lncremenlal depreciation

As at 30 June 202d - [Un-auditea1

As at 01 July 2024 • [Un-audited]

Total comprehensive income for the period Profit after income taxes

Other corn prehensive loss atier income taxes

Other transactions Incremental depreciation

As at 3s December 2024 • |Audited§

As at 01 January 202S - [Audited]

Total comprehens ive income for the year

Profit after income taxes

Other comprehensive loss after income taxes

Other transactions

Incremental depreciat on

Conversion of preference shares into ordinary shares

Rupees '000

8,560, 424

8660127

8,56 0.121

8,560,12 1

8,560,121

7 J 67G.374

G76,37a

Rgpges '000

449.576

44 9 576

449.576

449 576

4ag,57s

(449,576)

{449,576)

Rupees '000

5,610,856

6.61 0.BS6

5,610.056

5 610.8 56

6,610,a56

(85.y28)

(35,7281

Rup ees '000

5,737,289

26.98T)

26.98 )

(98.819)

5 611.483

5,611.48 3

(3 33)

333)

(90,642)

5.520 SOB

(87,23 2)

(8?,23Z}

Rupees 000

2 'i .067,369

a ,zi15,563

1,415, fi63

98,819

22 681,75 1

22, $81,75 1

951.5 11

951,511

90,64 2

23.623,904

23,6 23,904

2,369,832

2,369,832

87,232

(191,070)

(103,838}

Rup ees 000

41,425,211

4 .415, 563

(26,987)

1.S88, 676

4Z.613,787

42.813,787

951,511

(333)

951,176

• 3.764.96 s

43,764,965

2,369,832

2,369,8 32

As at 40 June 2025 - Un-audited

9 236 495

5433lI6

25 GB9 898

46 134 797

The annexed notes from $ No PP form ari integral pad of these ir+terim diriariicaf s fatem ents

M. MURAD EAiGOL

Chief Hz ecutry• Offie•r

M, ZETD YOU'2UF SAIGOL

D NZAR HASSAN

cnief r inanc iaI Officer

M. MURAD SAIGOL

Ghiel Ezec ulive Officer

M. ZEID YOUSUF SAIGOL

Direclor

"S D MANZAR HASSAN

Chief Financial Officer

AK LE TRON LIMITED

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

1. LEGAL STATUS AND OPERATIONS

   Pak Elektron Limited {'the Company'J was incorporated under the repealed Companies Act, 1913 on 03 March 1956. The Company is a 'Public Company Limited by Shares' and is listed on Pakistan Stock Exchange Limited. The principal activity of the Company is manufacturing and sale of electrical capital goods and domestic appliances.

   The Company is organized into the following operating divisions:

   1. Power Division: Manufacturing and sale of Transformers, Switchgears, Energy Meters and Engineering, Procurement and Construction ['EPC'] contracting.

   2. Appliances Division: Manufacturing, assembling and distribution/sale of Refrigerators, Deep Freezers, Air Conditioners, Microwave Ovens, LED Televisions , Washing Machines, Water Dispensers and other domestic appliances.

   1. Location of business units

Registered office Manufacturing Unit I Manufacturing Unit II Islamabad Office Karachi Office

BASIS OF PREPARATION

17 Aziz Avenue, Canal Bank, Gulb rg - V, Lahore, Pakistan 14 KM, Ferozepur, Road, Lahore, Pakistan

34 KM, Ferozepur, Road, Lahore, Pakistan

Office no. 301, Green Trust Tower, Blue Area, Islamabad, Pakistan

Kohinoor Building. 25 West Wharf Road, Karachi, Pakistan

These interim financial s/atemenls are on-audited and have been presented in condensed form and do not include all information as is required to be provided in a full set of annual financial statements. These interim financial statements should be read in conjunction with the annual audited financial statements of the Company for the year ended 31 December 2024.

These interim financial statements have been subjected to limited scope review by auditors of the company, as required under section 237 of the Companies Act, 2017 . The comparative condensed interim statement of financial position as at 31 December 2024 and the related notes to the interim financial statements are based on audited financial statements. The comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed inlerim statement of changes in equity, condensed interim statement of cash flows and related notes !o the condensed interim financial statements for the six-month period ended 30 June 2024 are based on unaudited, reviewed interim financial statements. The condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-month oeriod ended 30 June 2025 and 30 June 2024 are neither audited nor reviewed.

These inlerim financial statements have been presented in Pak Rupees which iS the Company's functional currency. The amounts reported in these interim financial statements ha've been rounded to the nearest Thousand Rupees unless specified otherwise.

25 Date of authorization for issue

These interim financial statements have been approved by the Board of Directors of the Company and authorized for issue on 28 Augusl 2025.

1. NEW AND REVISED STANDARDS, INTERPRETATIONS AND AMENDMENTS EFFECTIVE DURING THE YEAR.

   The following new and revised International Financial Reporting Standards [IFRS] and International Accounting Standards [IAS], inlerpretations of and amendments to IFRS and IAS are effective in the current period but are either nol relevant to the Company or their application does not have any material impact on the interim financial statements of the Company other than presentation and disclosures, except as stated otherwise.

   1. Lack of Exchangeability {Amendments to IAS 21)

The amendements contain guidnce to specify when a currency is exchangeable and how to determine the exchange rate when it is not.

NEW AND REVISED STANDARDS, INTERPRETATIONS AND AMENDMENTS NOT YET EFFECTIVE.

The following standards, interpretations and amendments are in issue which are not effective as at the reposing date and have not been early adopted by the Company.

Amendments IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments

Effective date (annual periods beginning

on or after) 01 January 2026

Amendments IFRS 9 and IFRS 7 regarding the power purchase agreements 01 January 2026

Annual Improvements to IFRS Accounting Standards - Volume 11 01 January 2026

IFRS 17 Insurance Contracts 01 January 2026

IFRS S1 General Requirements for Oisclosure of Sustainability-related Financial Information 01 July 2025 IFRS S2 Climate-related Disclosures 01 Juiy 2025

Other than afore mentioned standards, interprelalions and amendments, IASB has also issued the following standards which have not been nol'f'ed by the Securities and Exchange Commission of Pakistan for adoplion.

• IFRS 1 First Time Adoption of International Financial Reporting Standards

• IFRS 18 Presentation and Disclosures in Financial StatemenIs

• IFRS 19 Subsidiaries without Public Accountability: Disclosures

The Company intends to adopt these new standards on their effective dates, subject to notification by Securities and Exchange Commission of Pakistan under section 225 of the Companies Act, 2017 regarding their adoption. The management anticipates that the adoption of the above standards, amendments and interpretations in future periods, will not have a material impact on the Company's interim financial statements other than in presentation/disclosures.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

The accounting policies adopted in the preparation of these interim financial statements are the same as lhose applied in the preparation of preceding annual financial statements of the Company for the year ended 31 December 2024.

7.1 The entire issued preference share capital of Rs. 449.58 million along with preference dividend accumulated up to 31 December 2024 amounting to Rs. 640.65 million has been converted into ordinary shares of the Company. during the reporting period, whereby, the Company has issued 67,637,346 ordinary shares of Rs. 10 each to all preference shareholders.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2025

10 SHORT TERM BORROWINGS

These facilities have been obtained from various banking companies and financial institutions for working capital requirements and carry interest/profit at rates ranging from one to nine months KIBOR plus 0.5% to 3°/< per annum, payable quarterly, with the exception of certain term loans. where interest/profit is payable on maturity. These facilities are secured by pledge/hypothecation of raw material and components, work-in-process, finished goods, imported goods. machinery, spare parts, book debts and personal guarantees of the Company's directors.

11.1.2 There is no material changes in the status of litigations and claims the Company was a pany to as at 31 December 2024.

The amount of ujrah payments for ijarah financing and the period in which these payments will become due are as follows: