Transmission of Quarterly Report for the Period Ended 30-09-2025

BOARD OF DIRECTORS

COMPANY SECRETARY

AUDIT COMMITTEE OF THE BOARD

HUMAN RESOURCE AND REMUNERATION COMMITTE OF THE BOARD

Mr. Muneer Nawaz Mr. Taqi Mohammad Mr. M. Naeem

Mr. Abid Nawaz

Mr. Aamir Amin (NIT) Mr. Farooq Hassan

Mr. Syed Nadeem Ali Kazmi Mr. Toqueer Nawaz

Mrs. Sadia Muhammad

Mr. Muhammad Usman Khalid

Mr. Jamil Ahmad Butt, FCMA Mr. Aamir Amin

Mr. Muneer Nawaz Mr. Toqueer Nawaz

Mr. Muhammad Usman Khalid Mrs. Sadia Muhammad

Mr. Jamil Ahmad Butt, FCMA

Mr. Farooq Hassan Mr. Muneer Nawaz Mr. M. Naeem

Mr. Mohammad Taqi Mr. Abid Nawaz

Mr. Jamil Ahmad Butt, FCMA

Chairman

Chief Executive

Chairman Member Member Member Member Secretary

Chairman Member Member Member Member Secretary

AUDITORS Yousuf Adil.

Chartered Accountants.

Cavish Court, A-35, Block 7 & 8 KCHS, Shahrah-e-Faisal, Karachi 75350.

BANKS Bank Alfalah Limited

United Bank Limited Meezan Bank Ltd. The Bank of Punjab MCB Bank Limited Faysal Bank Limited

LEGAL ADVISOR

Syed Ali Ahmad Tariq

Advocate Supreme Court of Pakistan. Office No. 58-Chamber of Commerce & Industry Building (Aiwan-e-Tijarat) Nicol Road, Karachi-74000.

HEAD OFFICE Shahnawaz Building, 19-Dockyard Road, West Wharf, Karachi-74000

Ph: 32313934-8, 32312834, 32310973

Fax: 32205723, 32310623

Website: https://www.shahtaj.com

REGISTERED OFFICE 27-C Abdalian Cooperative Hosing Society, Lahore,

Ph: (042) 35313891-92, 35301596-99

Fax: (042) 35301594

MARKETING OFFICE 27-C Abdalian Cooperative Hosing Society, Lahore,

Ph: (042) 35313891-92, 35301596-99

Fax: (042) 35301594

FACTORY 46 K.M. Lahore/Multan Road Chunian Industrial Estate

Bhai Pheru, Distt. Kasur, Punjab.

Ph: (049) 4540430-32, 4540133, 4540234

Fax: (049) 4540031

SHARE REGISTRAR Jwaffs Registrar Services (Pvt.) Ltd.

Office # 20, 5th Floor, Arkay Square Extension, New Chali, Shahrah-e-Liaquat, Karachi

Ph: (+92-21) 32440974-75

Email: jwaffsregistrar@gmail.com

Directors are pleased to present un-audited Condensed Interim Financial Statements of the Company for the First Quarter ended on September 30, 2025.

By the grace of Allah, in spite of difficult market conditions, operating results of the Company have been positive and Company has earned an after tax profit of Rs. 57.313 million with an EPS of Rs 5.93 in comparison to Rs 1.08 reported during the same period last year. Net Sales revenue for the quarter decreased by almost 15.7% i.e from Rs 1.968 billion to Rs. 1.659 billion, mainly because of increase in sales orders booked against processing charges only. This has helped in the reduction of finance cost and minimum tax on turnover, resulting in higher profitability. The GP rate increased to 11.74% of current period from 8.89% of sales of comparative period due to marketing efforts, efficient inventory procurement, cost control, operational efficiencies, and the generation of renewable energy.

Distribution cost decreased mainly due to decrease in export sales whereas administrative expense increased due to inflation. Finance cost during the period decreased significantly on account of prudent financial management and reduction in policy rate.

During the past year, the Government has imposed levy on gas supply for captive power users. These levies have substantially raised the cost of generating electricity from gas. As a result, the majority of our energy requirements are being met through the WAPDA system. In view of this challenge, the Company employed alternative energy solutions to reduce dependency on natural gas and manage electricity costs more effectively. A key step in this direction is the implementation of solar power plants, which supports clean energy goals while lowering the Company's carbon footprint. The Company installed around 1 MW solar plant last year whereas further addition of 3.3 MW will be operational in second quarter of current financial year ensuring a stable and affordable power supply.

The textile industry continues to face significant challenges. Recent heavy rains and floods are expected to adversely affect crops, which may exert inflationary pressure. High rate of taxes, energy prices and its availability may impact the future profit margins. It is hoped that the Government will bring in business friendly policies such as uninterrupted energy supplies in cost effective manner, reduction in the corporate tax rate, controlling the inflation rate and reducing the financial costs to create favourable environment for industrial growth and investment.

Company will continue to do its best to overcome these difficulties.

Board and its Committees

The total number of directors is ten as per the following:

1. Male: 9

2. Female: 1

The Board has formed committees comprising of members as below:

1. Audit Committee

   • Mr. Aamir Amin (Chairman)

   • Mr. Muneer Nawaz

   • Mr. Toqueer Nawaz

   • Mr. Muhammad Usman Khalid

   • Mrs. Sadia Muhammad

2. HR and Remuneration Committee

   • Mr. Farooq Hassan (Chairman)

   • Mr. Muneer Nawaz

   • Mr. Muhammad Naeem

   • Mr. Taqi Mohammad

   • Mr. Abid Nawaz

Appreciation

Directors acknowledge with thanks the hard work put in by all employees of the Company.

for and on behalf of the Board of Directors

Karachi

October 23, 2025 Chief Executive

Director

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Un-audited September 30,

2025

Audited June 30,

2025

Note ---------------- (Rupees in 000) -----------

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital

10,000,000 ordinary shares of Rs. 10 each

Issued, subscribed and paid-up capital Revenue reserves

Surplus on revaluation of plant and machinery

Total equity LIABILITIES

Non-current liabilities

Long-term finance Deferred liabilities

Current liabilities

Trade and other payables Unclaimed dividend Interest accrued

Short-term borrowings 5

Current portion of long-term finance

Contingencies and Commitments 6

Total equity and liabilities ASSETS

Non-current assets

Property, plant and equipment 7

Long-term loans Long-term deposits

Current assets

Stores, spares and loose tools Stock-in-trade

Trade debts

Loans and advance

Trade deposits and prepayments Taxation - net

Other receivables Short term investment Sales tax refundable

Cash and bank balances

Total assets

100,000

96,600

1,610,670

662,664

2,369,934

569,228

123,153

692,381

808,198

41,026

13,666

426,356

143,710

1,432,956

4,495,271

2,193,843

489

35,757

2,230,089

96,571

1,037,549

872,819

15,162

2,586

71,433

6,062

51,013

81,931

30,056

2,265,182

4,495,271

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

(Taqi Mohammad)

Chief Executive

(Amir Ahmed)

Chief Financial Officer

(M. Naeem)

Director

September 30, September 30,

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

(Taqi Mohammad)

Chief Executive

(Amir Ahmed)

Chief Financial Officer

(M. Naeem)

Director

September 30,

2025

September 30,

2024

---------- (Rupees in 000) --------

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

(Taqi Mohammad)

Chief Executive

(Amir Ahmed)

Chief Financial Officer

(M. Naeem)

Director

Issued, Subscribed

Revenue reserve Capital Surplus on

reserve

General Unappropriated revaluation

Total

and Paid up

Capital

profit (Rupees in 000)

of plant and

machinery

The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements.

(Taqi Mohammad)

Chief Executive

(Amir Ahmed)

Chief Financial Officer

(M. Naeem)

Director

(Taqi Mohammad)

Chief Executive

(Amir Ahmed)

Chief Financial Officer

(M. Naeem)

Director

1. STATUS AND NATURE OF BUSINESS

   Shahtaj Textile Limited (the Company) is limited by shares, incorporated in Pakistan on January 24, 1990 under the Companies Ordinance, 1984 (now Companies Act, 2017) as a public limited Company. The shares of the Company are quoted on Pakistan Stock Exchange Limited. The principal business of the Company is manufacture and sale of textile goods.

   Head Office

   Shahnawaz Building, 19 - Dockyard Road, West Wharf, Karachi, Sindh, Pakistan.

   Manufacturing Facility

   46 KM, Lahore/Multan Road, Chunian Industrial Estate, Bhai Pheru, Distt. Kasur, Punjab, Pakistan.

   Registered Office

   27-C, Abdalian Cooperative Housing Society Limited, Opposite Expo Center, Lahore, Pakistan.

2. STATEMENT OF COMPLIANCE

   1. These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprises of:

      • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and

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

        Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

        The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of IAS-34. These condensed interim financial statements do not include all the information and disclosures which are required in a full set of financial statements and should be read in conjunction with the annual audited financial statements of the Company for the year ended June 30, 2025. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the financial position and performance since the last financial statements of the Company.

   2. The financial statements have been prepared under the historical cost basis modified by:

      • revaluation of certain plant and machinery; and

      • obligation under retirement benefit obligation at net present value.

   3. These condensed interim financial statements are presented in Pak Rupees which is also the Company's functional currency and figures presented in these condensed interim financial statements have been rounded off to the nearest Thousand.

   4. These condensed interim financial statements are unaudited. These condensed interim financial statements are submitted to the shareholders as required by Section 237 of the Companies Act, 2017.

3. SIGNIFICANT ACCOUNTING POLICIES AND INFORNATION

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

   2. There are certain standards, interpretations on accounting and reporting standards as applicable in Pakistan and amendments to certain existing standards, which have been published and are mandatory for the accounting period beginning on or after July 01, 2025. These standards, interpretations and amendments are either not relevant to the Company's operations or are not expected to have a significant impact on the accounting policies of the Company and therefore not disclosed in these condensed interim financial statements.

   3. The preparation of these condensed interim financial statements require management to make estimates, assumptions and use judgments that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors including reasonable expectations of future events. Revision to accounting estimates are recognized prospectively commencing from the period of revision.

      In preparing these condensed interim financial statements, the significant judgments made by the management in applying the Company's accounting policies, the key source of estimation and uncertainty were the same as those that applied to the financial statements of the Company for the year ended June 30, 2025.

4. FINANCIAL RISK MANAGEMENT

The Company's financial risk objectives and policies are consistent with those disclosed in the annual audited financial statements as at and for the year ended June 30, 2025.

(Un-audited) September 30,

2025

(Audited) June 30,

2025

1. CONTINGENCIES AND COMMITMENTS

   Contingencies

   Contingencies and commitments are not materially changed as disclosed in the note 11 to the annual financial statements for the year ended June 30, 2025.

   (Un-audited) September 30,

   2025

   (Audited) June 30,

   2025

   Note ----------------- (Rupees in 000) ------------

2. PROPERTY, PLANT AND EQUIPMENT

   Operating fixed assets Capital work in progress

   7.1

   7.2

   2,176,038

   2,128,083

   131,296

   2,259,379

   17,805

   2,193,843

   (Un-audited) Quarter ended September 30, 2025

   (Audited) Year ended June 30, 2025

   Additions during the period / year

   Additions / transfers

   Disposals at book value

   Additions / transfers

   Disposals at book value

   Plant and machinery		2,519			-			147,240		667
   Equipment and installations		12			-			4,346		-
   Computer equipment		689			-			591		-
   Vehicles		4,893			1,181			10,514		1,027
   		8,113			1,181			162,691		1,694

   (Rupees in 000)

   7.2 Details of additions and transfers from capital work-in-progress during the period / year are as under:

   (Un-audited) Quarter ended September 30, 2025

   (Audited) Year ended June 30, 2025

   Additions Transfers Additions Transfers

   Additions during the period / year
   			(Rupees in 000)
   Plant and machinery	113,490		-	22,553		145,344
   Equipment and installations	-		-	4,300		4,300
   	113,490		-	26,853		149,644

   (Un-audited) Quarter ended

   September 30,

   2025

   September 30,

   2024

3. SALES - NET

Export Indirect Export Local

Waste sales Commission

-Export

-Local Sales tax

(Rupees in 000)

327,263

827,614

1,126,826

2,281,703

6,052

2,287,755

(12,290)

(8,527)

(299,058)

1,967,880

(Un-audited) Quarter ended

(Un-audited) Quarter ended

September 30,

2025

September 30,

2024

1. LEVIES & TAXATION

   1. Levies

      Revenue Tax

      Note

   2. ---------------(Rupees in 000)---------------

      20,978

      20,978

      22,349

      22,349

      10.2 This represents minimum tax provision under section 113 of the Income Tax Ordinance, 2001. The provision for minimum tax has been recognised as levies in these financial statements as per the requirement of IFRIC 21 / IAS 37 and guide on IAS 12 issued by ICAP.

2. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES

   1. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arms length transaction.

      The carrying values of all financial assets and liabilities reflected in the condensed interim financial statements approximate their fair values.

   2. Fair value estimation

      The Company discloses the financial instruments measured in the condensed interim statement of financial position at fair value in accordance with the following fair value hierarchy:

      • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

      • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

      • Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

        There were no transfers between Level 1 and 2 during the period.

   3. There are no assets or liabilities to classify under above levels except the Company's plant and machinery which are stated at revalued amounts, being the fair value at the date of revaluation, less any subsequent depreciation and subsequent accumulated impairment losses, if any. The fair value measurements of the Company's plant and machinery carried out as at June 2025, were performed by M/s Asif Associates (Private) Limited (valuer), an independent valuer not

      related to the Company, using depreciated replacement cost method. The valuer is listed on panel of Pakistan Banks Association and they have appropriate qualification and experience in the fair value measurement of properties, plant and machinery Value determined by independent valuer is classified as Level 3 in the fair value hierarchy.

3. TRANSACTIONS WITH RELATED PARTIES

   The related parties comprise of associated companies, directors and key management personnel of the Company. Transactions with related parties are carried out as per agreed terms. The transaction with related parties during the period generally consist of sales and purchases. Nature and description of related party transactions during the period along with monetary values are as follows:

   Quarter ended (Un-audited)

   September 30, September 30,

   		2025	2024
   Nature of relationship	Nature of transactions	- (Rupees in	000)-------------
   Key management personnel	Remuneration	15,560	14,771

   Associated undertakings

   • Shahnawaz (Private) Limited

   • Shezan International Limited

     Other related party- Close Family Member

   • Lionsmill Trading LLC

   Administrative services received Software development charges

   Purchase of goods

   Commission on sales

   1,308

   600

   -

   1,425

   1,326

   600

   42

   2,083

   (Un-audited) September 30,

   2025

   (Audited) June 30,

   2025

   Balances due to related parties

   • Shahnawaz (Private) Limited

   • Lionsmill Trading LLC

   (Rupees in 000)

   1,908 -

   1,432 7

4. CORRESPONDING FIGURES

   Corresponding figures have been reclassified / rearranged, wherever necessary.

5. DATE OF AUTHORIZATION FOR ISSUE

The condensed interim financial statements were authorized for issue on October 23, 2025 by the Board of Directors of the Company.

(Taqi Mohammad)

Chief Executive

(Amir Ahmed)

Chief Financial Officer

(M. Naeem)

Director

PRINTED MATTER BOOK POST

IF UNDELIVERED PLEASE RETURN TO.-

Shahtaj Textile Limited

P.0. BOXNO. 4766,

SHAHNA WAZ BUILDING, 19 DOCKYARD ROAD, WEST WHARF, KARACHI-74000.