Transmission of financial statements for the half year ended 31-12-2025

Long term loan

30,869,770

20,607,966

Stores, spares & loose tools

2,382,628

2,044,888

Deferred Grant

-

12,979,896

Stock in trade

137,805,202

132,325,177

Deferred tax liabilities

3,930,089

3,291,539

Trade debts

235,863,589

205,597,643

36,031,492

43,363,051

Advances, deposits, prepayments &

3,963,601

3,556,398

CURRENT LIABILITIES

other receivables

Current maturity of long-term obligation 5,950,255

Short term finance 29,529,762

5,287,225

33,184,524

Taxation - net

Cash & bank balances

15,678,005

18,321,442

16,791,633

22,025,392

31 Dec.

2025

Rupees

31 Dec.

2024

Rupees

31 Dec.

2025

Rupees

31 Dec.

2024

Rupees

Sales

273,396,961

255,990,139

129,517,175

137,849,898

Cost of Sales

(183,456,674)

(183,121,093)

(96,005,835)

(101,383,293)

Gross Profit

89,940,287

72,869,046

33,511,340

36,466,605

OPERATING EXPENSES

Administrative and General

(31,089,014)

(32,290,365)

(13,688,038)

(18,162,026)

Selling and distribution

(9,993,421)

(9,647,512)

(4,833,685)

(4,583,578)

(41,082,435)

(41,937,877)

(18,521,723)

(22,745,604)

Operating Profit/(Loss) for The period

48,857,851

30,931,168

14,989,615

13,721,000

Other Operating Income Other Operating Expenses

619,482

-

1,524,472

-

619,482

-

589,705

-

Finance Cost

(3,441,562)

(4,610,531)

(1,679,227)

(2,496,165)

Profit/ (Loss) before taxation

46,035,771

27,845,109

13,929,870

11,814,540

Taxation

(10,370,533)

(8,087,571)

(1,301,115)

(4,829,274)

Profit/ (Loss) for the period

35,665,237

19,757,538

12,628,754

6,985,266

Earnings per share

5.94

3.29

2.10

1.16

31 Dec.

31 Dec.

31 Dec.

31 Dec.

2025

2024

2025

2024

Rupees

Rupees

Rupees

Rupees

Profit/ (Loss) after

35,665,237

19,757,538

12,628,754

6,985,266

Taxation

Other Comprehensive

--

--

--

--

Profit

Total Comprehensive

35,665,237

19,757,538

12,628,754

6,985,266

Profit/ (Loss) for the

Period

cash flow from operating activities

Profit before taxation

46,035,771

27,845,109

Adjustment of non-Cash items.

Depreciation.

4,546,896

4,928,812

Financial Charges

3,441,562

4,610,531

Profit on sale of fixed assets

--

--

7,988,458

9,539,343

Profit before working capital changes

54,024,229

37,384,452

Effect of working capital changes

(Increase)/Decrease in store, spare and loose tools

(337,740)

8,379

(Increase)/Decrease in stock in trade

(5,480,025)

(6,306,129)

(Increase)/Decrease in trade debts (Increase)/Decrease in sales tax refundable

(30,265,946)

--

(3,872,114)

--

(Increase)/Decrease in advances, deposit and

(407,203)

(2,642,390)

Prepayments

Increase/(Decrease) in creditors accrued and other

4,242,324

(7,197)

Liabilities

Increase /(Decrease) in Unclaimed Dividend

--

--

(32,248,590)

(12,819,451)

Financial charges paid

(3,441,562)

(4,610,531)

Tax paid

(8,618,355)

(6,754,137)

(12,059,918)

(11,364,668)

Net cash generated from/ (used in) operating A activities

9,715,721

13,200,332

Cash flow from investing activities:

Property, plant and equipment purchased

-

(157,900)

Long term deposits

4,280,580

(219,050)

Sale proceeds of assets disposed off

--

--

Net Cash (used in) investing activities B

4,280,580

(376,950)

Cash flow from financing activities

(Repayment) of lease obligation (Repayment) of long-term loan

(5,374,547)

(1,932,532)

(1,991,798)

(966,266)

Loan repaid to directors

(3,654,762)

--

Dividend Paid

(6,738,410)

(3,730,301)

Net cash generated from/ (used in) financing C activities

(17,700,251)

(6,688,365)

Net increase/ (Decrease) in cash and cash

Equivalents A+B+C

(3,703,950)

6,135,017

Cash and cash Equivalents at beginning of the Period

22,025,392

13,093,163

Cash and cash Equivalents at end of the period

18,321,442

19,228,180

Final dividend

For the year ended

30 June 2024

--

--

(5,224,000)

(5,224,000)

Balance as at

31 Dec. 2024

60,000,000

30,000,000

228,695,703

318,695,703

Profit for

the period ended 30 JUNE 2025

--

--

26,053,066

26,053,066

Balance as at

30 June 2025

60,000,000

30,000,000

254,748,769

344,748,769

Profit for

the period ended

31 Dec. 2025

--

--

35,665,237

35,665,237

Final dividend

For the year ended

30 June 2025

--

--

(9,000,000)

(9,000,000)

Balance as at

31 Dec. 2025

60,000,000

30,000,000

281,414,006

371,414,006

SARDAR CHEMICAL INDUSTRIES LIMITED

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

1

The Company and its operation

Sardar Chemical Industries Limited (the Company) was incorporated in Pakistan on October 3, 1989 as a Private Limited Company under the Companies Ordinance, repealed Company Ordinance, 1984. It was converted into the Public Limited Company on December 30, 1993. The registered office of the Company is located at Plot No. 29-B, Road No. 01 Gadoon Amazai, Industrial Estate, Topi, Ganduf Road, Swabi (KPK). The principal business of the Company is to manufacture and sale of dyestuffs, chemicals for the leather, textile and paper industries. The Company is listed on Pakistan Stock Exchange. Manufacturing facilities of Chemical are located at Plot No. 29-B, Road No. 01 Gadoon Amazai, Industrial Estate, Topi, Ganduf

Road, Swabi (KPK).

2

Basis of preparation

2.1

Statement of compliance

These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards

applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable in Pakistan for interim financial reporting comprise of:

International Accounting Standard 34, 'Interim Financial Reporting' (IAS 34), issued by the International Accounting Standards

Board (IASB) as notified under the Companies Act, 2017 (the Act); and

- Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of, directives and notifications issued under the Companies Act, 2017 differ with the requirements of IAS

34, the provisions of, directives and notifications issued under the Companies Act, 2017 have been followed.

2.2

These condensed interim financial statements are being presented and submitted to the shareholders as required by the Listing Regulations of the Pakistan Stock Exchange and section 237 of the Companies Act, 2017. These condensed interim financial statements do not include all the information required for the complete set of financial statements and should be read in conjunction with the annual audited financial statements for the year ended June 30, 2025. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's

financial position and performance since the last annual audited financial statements.

2.3

The figures included in the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the quarters ended December 31, 2025 and 2024 and the notes forming part thereof have not been reviewed by the auditors of the Company, as they are required to review only the cumulative figures for the six-months period ended December

31, 2025 and 2024.

3

Statement of consistency in accounting policies

The accounting policies and methods of computation adopted for the preparation of these condensed interim financial

statements are the same as those applied in preparation of financial statements of the company for the year ended June 30,

3.1

Changes in accounting standards, interpretations and pronouncements

(a)

Standards and amendments to approved accounting standards that are effective

There are certain amendments and interpretations to the accounting and reporting standards which are mandatory for the Company's annual accounting period which began on July 1, 2025. However, these do not have any significant impact on the

Company's financial reporting.

(b)

Standards and amendments to approved accounting standards that are not yet effective

There are certain amendments and interpretations to the accounting and reporting standards that will be mandatory for the Company's annual accounting periods beginning on or after July 1, 2026. However, these will not have any impact on the Company's financial reporting and, therefore, have not been disclosed in these unconsolidated condensed interim financial

statements except for;

IFRS 18 'Presentation and Disclosure in Financial Statements' (IFRS 18) (effective January 1, 2027):

A new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss is being introduced. The key new concepts introduced in IFRS 18 relate to:

- the structure of the statement of profit or loss;

- required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an

entity's financial statements (that is,management-defined performance measures); and

- enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

The management is in process of assessing the impact of above changes.

Other than above, there are standards and certain amendments to accounting standards that are not yet effective and have not been early adopted by the Company for the financial year beginning on July 01, 2025. Such standards and amendments are not expected to have any significant impact in the Company's financial reporting and, therefore, have not been presented in these

financial statements.

4

Accounting Estimates, Judgements And Financial Risk Management

4.1

The preparation of unconsolidated condensed interim financial statements in conformity with accounting and reporting standards, as applicable in Pakistan, requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about the carrying values of assets and liabilities

that are not readily apparent from other sources. Actual results may differ from these estimates.

4.2

The significant judgements made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual unconsolidated financial statements as at and for the

year ended June 30, 2025.

4.3

The Company's financial risk management objectives and policies are consistent with those disclosed in the annual

unconsolidated financial statements as at and for the year ended June 30, 2025.

SARDAR CHEMICAL INDUSTRIES LIMITED

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

FOR THE HALF YEAR ENDED DECEMBER 31, 2025

5

Lease liabilities

Future Minimum Lease Payments

Addition during the year

Less: Financial charges pertaining to future period

Present value of minimum lease payments

Less: Current maturity of long term obligation

3,374,049

6,412,339

-

2,707,000

(57,225)

(427,968)

3,316,824

8,691,371

(2,085,191)

(2,207,721)

1,231,633

6,483,650

5.1

Minimum Lease Payments (MLP) and their Present Value (PV) are as follow:

December 31, 2025

Not later than one year

Later than one year and not later than

five years

Future minimum lease payments

2,379,561

1,583,228

Less: Un-amortized finance charge

(294,370)

(351,595)

Present value of minimum lease payments

2,085,191

1,231,633

Future minimum lease payments

Less: Un-amortized finance charge

Present value of minimum lease payments

June 30, 2024

Not later than one year

Later than one year and not later than

five years

2,615,772

6,503,567

(408,051)

(19,917)

2,207,721

6,483,650

6

Trade and other payables

Sales tax Payable

Accrued expenses

Accrued markup on directors loan

Workers Welfare Fund

Trade creditors

Workers Profit Participation Fund

Provident Fund payable

Contract liabilities

Withholding tax

4,986,731

3,676,812

12,439,615

11,675,343

344,906

474,867

7,590,544

7,748,766

10,050,561

8,933,601

2,870,795

2,870,795

670,811

924,867

373,839

35,402

1,767,990

513,015

41,095,792

36,853,468

7

Loan from directors

Sardar Mahmood Sadiq & Family

Sardar Ayaz Sadiq

Mrs. Reema Ayaz

9

Property, plant and equipment

Owned assets

Opening book value

Additions/ Transfers during the period / year

Depreciation for the period / year

Adjustment

Closing book value

68,927,593

76,080,953

17,358,600

2,027,900

(4,175,439)

(9,181,260)

(11,078,027)

-

71,032,729

68,927,593

Right of use assets

Opening book value

Additions/ (Transfers) during the period / year

Disposals during the period / year

Depreciation for the period / year

Adjustment

Closing book value

9,995,167

10,110,494

(17,358,600)

2,707,000

-

(1,870,000)

(371,459)

(952,327)

11,078,027

-

3,343,135

9,995,167

10

Advances, deposits, prepayments and other receivables

Advances against expenses

Contract assets

Advances to employees

3,933,601

2,851,998

-

554,400

30,000

150,000

3,963,601

3,556,398

11

Stock-in-trade

Raw material

Work in process

Finished goods

52,795,165

51,874,330

19,851,981

17,321,721

65,158,056

63,129,126

137,805,202

132,325,177

12

Transactions with related parties

The related parties comprise of Holding Company, Associated Companies, other related Companies, key management personnel and employees retirement benefit funds. The Company in the normal course of business carries out transactions with various related parties. Amounts due from and to related parties are shown under receivables and payables and remuneration to key management personnel. Other significant transactions with related parties are disclosed in note 12.1.

12.1

Transactions during the year

Nature / name of related party

Relationship of related party

Nature of transactions

31-Dec-25

30-Jun-25

Rupees

Director / Shareholders / associates

Sardar Mahmood Sadiq (Late)

Director's Family

Loan

-

Sardar Ayaz Sadiq

Sponsor

Loan

-

Mrs.Reema Ayaz

Chief Executive

Loan

-

Sardar Mahmood Sadiq (Late)

Director's Family

Markup on loan

(237,467)

Sardar Ayaz Sadiq

Sponsor

Markup on loan

(969,302)

Mrs.Reema Ayaz

Chief Executive

Markup on loan

(195,485)

Sardar Ayaz Sadiq

Sponsor

Head office rent

(1,418,312)

Sardar Industries (Private) Limited

Associated undertaking

Lahore gadown rent

(622,265)

12.2

All transactions with related parties have been carried out on mutually agreed terms and conditions.

-

-

-

(1,786,018)

(285,806)

(601,684)

(2,225,736)

(1,015,944)

13

Segment reporting

Segment information is presented in respect of how the Company's chief decision maker allocates resources and monitors

performance based on business segments.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a

reasonable basis.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used

for more than one year.

The Company's chief decision maker reviews the Company's performance on single segment accordingly the financial information

has been prepared on basis of single reportable segment.

13.1

All assets of the Company as at 31 December 2025 are located in Pakistan.

14

Shariah Compliance Status Disclosure

Audited

30-Jun-25

Rupees

Statement of financial Position

Mark-up on conventional Loan

Mark-up accrued on Islamic loan

Shariah-compliant investments

344,906

-

-

474,867

-

-

Audited

31-Dec-24

Rupees

Revenue earned from Shariahcompliant business segment

Profits earned on any conventional loan or advance

273,396,961

619,482

255,990,139

1,524,472

14.1

Relationship with shariah compliant banks

15

Date of authorization for issue

These financial statements were authorized for issue on February 27, 2026 by the Board of Directors of the Company.

16

General

These financial statements are presented in Pak Rupees, which is the Company's functional and presentation currency. Figures

have been rounded off to the nearest of thousands of rupee unless otherwise stated in these financial statements.