Transmission of Quarterly Report for the Period Ended September 30, 2024

Siddiqsons Tin Plate Limited

A Siddiqsons Group Company

QUARTERLY REPORT

SEPTEMBER 30

2024

Company Information Directors' Review

Condensed Interim Statement of Financial Position (Un-audited)

Condensed Interim Statement of Profit or Loss and other Comprehensive Income (Un-audited)

Condensed Interim Statement of Cash Flows (Un-audited) Condensed Interim Statement of Changes In Equity (Un-audited) Notes to the Condensed Interim Financial Statements (Un-audited)

02

03

05

06

07

09

I0

Contents

01

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

Mr. Tariq Rafi Chairman Mr. Naeem-ul-Hasnain Mirza CEO

Mr. Munir Qureshi Executive Director

Mr. Ibrahim Shamsi Non Executive Director

Ms. Alia Sajjad Non Executive Director Mr. Muhammad Yousuf Adil Independent Director Mr. Abdul Wahab Independent Director

Mr. Muhammad Yousuf Adil (Chairman)

(Independent Director) Mr. Ibrahim Shamsi (Member) (Non-Executive)

Ms. Alia Sajjad (Member) (Non-Executive)

Mr. Abdul Wahab (Member) (Independent Director) Ms. Ayesha Khan (Secretary)

Mr. Naeem-ul-Hasnain Mirza (Member) (CEO) Ms. Ayesha Khan (Secretary)

Mr. Tariq Rafi Chairman

Mr. Munir Qureshi Member Mr. Naeem-ul-Hasnain Mirza Member

Mr. Naeem-ul-Hasnain Mirza CEO

Mr. Mahir Abbas Dir. Commercial

Ms. Rashid Khaleeque CFO

Mr. Shahzad Shabbir GM Commercial

Ms. Rashid Khaleeque

Ms. Ayesha Khan

Mr. Faran ur Rehman Hashmi

Muniff Ziauddin Chartered Accountants

Mr. Kashif Nazeer

A/2, G-23, Park Lane, Block-5, Clifton, Karachi House of Magna Cum Lande

Tola Associates

Tax & Corporate Advisors

408, Continental Trade Centre, Block 8, Clifton, Karachi 75600, Pakistan

Phone # 02I-35303294-6

National Bank of Pakistan Habib Bank Limited MCB Bank Limited Soneri Bank Limited

Habib Metropolitan Bank Limited Faysal Bank Limited

Meezan Bank Limited JS Bank Ltd

Al Baraka Bank (Pakistan) Ltd MCB Islamic Bank Limited Allied Bank Limited

The Industrial & Commercial Bank of China (ICBC)

United Bank Limited Bank Alfalah Limited Askari Bank Limited Samba Bank Limited

Dubai Islamic Bank Pakistan Limited

THK Associates (Pvt.) Limited,

Plot No. 32-C, Jami Commercial Street-2, D.H.A., Phase-VII,

Karachi.

UAN #III 000322

Ocean Tower, 27th Floor, G-3, Block 9, Scheme # 5, Main Clifton Road, Karachi. Tel : +922I-35I6657I-4

Plant: Plot # 5, Special Industrial Zone, Winder, Distt. Lasbela, LIEDA, Baluchistan.

https://www.siddiqsonstinplate.com

Head Office: House I2, Main Ataturk Avenue, F-6/3, Islamabad.

02

A Siddiqsons Group Company

The Directors of your company are pleased to present the unaudited condensed interim financial statements of the company for the three months' ended September 30, 2024.

During the period, sales revenue remained steady at PKR 223 million, marking a 8I % decrease compared to the same period last year. Concurrently, the cost of sales saw a 78% reduction. This decline can be primarily attributed to a negative volume variance stemming from the unavailability of raw materials, necessitating production lay-offs. Other contributing factors to the decreased sales include unfavorable market conditions, such as the presence of low valued tinplate due to misuse of sales tax exemptions in the FATA/PATA region,

The persistently high financial costs, which have decreased by 4I% compared to the previous year, continue to significantly impact profitability despite the decrease. During this period, the Siddiqsons Group injected funds to pay off the bank's long-term liabilities.

The loss after taxation amounted to Rs.I3I million, compared with a loss of Rs. 99 million in the corresponding period

The losses per share stood at Re. (0.58), whereas loss per share were also Rs. (0.43) in the corresponding period

The market during the quarter remained steady and inflow of imported tinplate at dumped prices effected the sales activity of your company. Pakistan current economic indicators are still unfavorable with no change in policy rates and absence of any formal economic revival plan. The utilization of Galvalume-a zinc/aluminum coated steel sheet-in food packaging, despite its associated health risks. Efforts have been made to address this concern with relevant government agencies.

Looking forward, the management of your company has secured the availability of raw material for the entire quarter, and we expect that it will improve the operational position of the company.

We are actively exploring potential end users in US & European markets as it is inevitable for the long-term viability of the company.

03

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

The Directors of the Company would like to record their gratitude to our shareholders, partners, customers, Government authorities and financial institutions for their cooperation and continued support.

The Directors are also pleased to record their appreciation for the valuable & untiring efforts and services rendered by the staff of the Company.

On behalf of the Board

Chief Executive

Chairman

Karachi: 22 August, 2025

04

A Siddiqsons Group Company

AS AT SEPTEMBER 30, 2024

Note

Property, plant and equipment Long term deposits

Long term advance

June 30,

2024

(Audited)

6

3,368,557,3I9

I0,066,22I

Stores, spares and loose tools Stock-in-trade

Trade debts Advance income tax Loans and advances

Trade deposits and prepayments Other financial assets

Other receivables Sales tax adjustable

Cash and bank balances

Share capital Share premium

(Accumulated loss) / unappropriated profit

Long-term finances Lease Liabilities

Trade and other payables Contract liabilities

Due to director Due to associate

Interest / mark-up accrued on borrowings Short-term borrowings

Current portion of long term finances Current portion of lease liabilities Unclaimed dividend

7 2l8,536,832 28I,427,670

8 l05,679,046 38,I63,245

9 227,287,026 22I,I5I,I76

I0 4l,0l8,453 5,95I,499

II 40,696,022 40,696,022

I2 264,564,407 264,564,407

I3

2,292,787,700

30I,5I7,286

I4

I5

I6 I7

I,I62,577,54I

I42,200,968 8,727,268 I50,928,236

I,0I9,I49,745 30,02I,205

352,000,000

53,236,586

I06,805,43I I,490,0I9,036 68,720,629

3,267,90I I,794,924

3,I25,0I5,4574,438,52I,234

I8

The annexed notes I to 25 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

05

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

FOR THE THREE MONTHS' PERIOD ENDED SEPTEMBER 30, 2024

Note

September 30,

2023

----------------Rupees----------------

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

06

A Siddiqsons Group Company

FOR THE THREE MONTHS' PERIOD ENDED SEPTEMBER 30, 2024

Three months ended

----------------Rupees----------------

Loss before levies and taxation

(97,0I5,8I9)

Other Income -TDR Operating cash flows before

movement in working capital

9,042,337

I43,830,665

55,857,I83

Stores, spares and loose tools Stock-in-trade

Trade debts

Loans and advances

Trade deposits and prepayments Other recievable

Sales tax adjustable

Trade and other payables Due to Director

Due to associates Contract liabilities

Cash generated from operations

(655,73I,855)

Income tax and levies paid Interest / markup paid

Tax refund received during the year

(I4,344,3I0)

(9I,874,058)

-

Net cash generated from operating activities

(76I,950,224)

07

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

Three months ended

September 30,

2023

----------------Rupees----------------

The annexed notes I to 25 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

08

A Siddiqsons Group Company

FOR THE THREE MONTHS' PERIOD ENDED SEPTEMBER 30, 2024

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

09

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024

Siddiqsons Tin Plate Limited (the Company) was incorporated in Pakistan on January 29, I996 as public Company limited by shares under the repealed Companies Ordinance, I984 now Companies Act, 20I7 (the Act). The registered office of the Company is located at Ocean Tower, 27th Floor, Plot # G-3, Block # 9, Near II Talwar, Clifton, Karachi, Province of Sindh, Pakistan. The shares of the Company are quoted on Pakistan Stock Exchange. The principal activity of the Company is manufacturing and sale of tin plates, cans and other steel products.

1. GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

   Following are the geographical locations and addresses of all business units of the Company:

   Registered Office:

   Ocean Tower, 27th Floor, Plot # G-3, Block # 9, Near II Talwar, Clifton, Karachi, Province of Sindh, Pakistan.

   Manufacturing Facility:

   1. Tin Plate plant is located at Plot No. 5, Special Industrial Zone, Winder, Distt, Lasbella, L.I.E.D.A, Province of Balochistan, Pakistan.

   2. Canning plant is located at Plot # 22I-222, Near Jamia Millia College, Jamia Millia Road, Malir City, Karachi, Province of Sindh, Pakistan.

      Project Site:

      TMBP project site is located at Plot No. 272 & 273 Hub City, Mouza Beroot Peerkas Road, District Lasbella, Hub Balochistan, Pakistan.

2. STATEMENT OF COMPLIANCE 3.l 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 comprise of:

   • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 20I7; and

   • Provisions of and directives issued under the Companies Act, 20I7.

   10

   A Siddiqsons Group Company

   1ST QUARTERLY REPORT SEPTEMBER 2024

Where provisions of and directives issued under the Companies Act, 20I7 differ from the IFRS Standards, the provisions of and directives issued under the Companies Act, 20I7 have been followed.

1. SIGNIFICANT ACCOUNTING POLICIES

   The accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements and the significant judgements made by the management in applying the accounting policies and the key sources of estimation uncertainty are the same as those applied in the preparation of the financial statements as at and for the year ended June 30, 2024.

2. FINANCIAL RISK MANAGEMENT

   The Company's financial risk management objectives and policies are consistent with those disclosed in the annual audited financial statements as at and for the year ended June 30, 2024.

3. PROPERTY, PLANT AND EQUIPMENT

June 30,

2024

(Audited)

11

A Siddiqsons Group Company

30-Jun-24

740,799,070

25,353,436 (I,665,0II)

35,629,807

728,857,689

June 30,

2024

(Audited)

Civil work

Machinery, electrical installations, furniture and equipment

6.2.I

2,022,I2I,856

6.2.2

6I7,577,774

2,639,699,630

12

A Siddiqsons Group Company

June 30,

2024

(Audited)

Chromite

Raw material Finished goods

Provision for obsolete stock

I6,389,080 I2,682,4I0 (29,07I,490)

28I,427,670

13

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

June 30,

2024

(Audited)

Advance tax Provision for taxation

June 30,

2024

(Audited)

272,0I4,50I (50,863,325)

22I,I5I,I76

Loan to employees

I80,090

Against letter of credits' fee and expenses Less: Provision for advance against letter of

credits' fee and expenses

227,742

5,95I,499

14

A Siddiqsons Group Company

June 30,

2024

(Audited)

Deposit for bank guarantee margin Prepayments

II.I

38,739,7I4

-

Tenders

I,956,308

40,696,022

Term deposits receipts -at amortised cost

I2.I

264,564,407

An associated undertaking Siddiqsons Limited holds I5.49% i.e. 25,5I0,I0I (Jun 30, 2024: 25,5I0,I0I) ordinary shares at the period end. The company has one class of ordinary shares which carries no right to fixed income. The shares are entitled to recieve dividend as declared from time to time and are entitled to one vote per share at meetings of the company. All shares rank equally with regards to company's residual assets.

June 30,

2024

(Audited)

15

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

June 30,

2024

(Audited)

As At July 0I Payments

Current portion of lease liabilities

II,995,I69

-

Creditors I5.I

Infrastructure cess I5.2

Provision against contingency Accrued liabilities

Staff provident fund

Workers' Profit Participation Fund Workers' Welfare Fund

Retention money payable Withholding tax

265,I8I,II2

2I5,25I,03I

4I2,567,680 I6,259,7I2 I,420,924 66,557,753 I5,253,83I I4,937,568 II,720,I34

16

A Siddiqsons Group Company

June 30,

2024

(Audited)

Long-term finances Short-term borrowings

From banking companies Book overdraft

Finance against imports

Running finances under markup arrangements

I3,0I9,208

93,786,223

I06,805,43I

5,239,996

890,8I2,632

593,966,408

I,490,0I9,036

During the course of quasi-judicial proceedings before the learned Adjudication Authority, all the charges levelled in the Show Cause Notice were duly rebutted through submission of detailed written reply and verbal representation before the learned Adjudicating Authority, based on misreading and non-reading of evidence adduced by the Petitioner i.e. Gaddani Collectorate, the Adjudication Authority, passed the Order-in-Original No. 334 / 20I9 dated November 7, 20I9, for recovery of purported evaded amount of duty and taxes amounting to Rs. 64,I92,547 on

17

A Siddiqsons Group Company

1ST QUARTERLY REPORT SEPTEMBER 2024

purported removal of I055 MT of CRC / Tin Mill Black Plate from Manufacturing Bond. While being aggrieved of the aforesaid Order-in-Original No. 334 / 20I9, the Company preferred an appeal bearing No. G-I298 / 20I9 on November II, 20I9, under section I94A of the Customs Act, I969, before the learned Customs Appellate Tribunal, Karachi. However, no decision was taken by the Tribunal, since it was non-functional. Pending the appeal, before the learned Customs Appellate Tribunal, Karachi, the Petitioner also moved the Hon'ble High Court of Sindh, at Karachi vide Constitutional Petition No. D-7820 / 20I9, assailing the demand notice for recovery of purported evaded amount of duty and taxes amounting to Rs 64,I92,547 issued in pursuance of Order-in-Original No. 334 / 20I9. The Hon'ble High Court of Sindh, vide interim Order dated December 5, 20I9, directed the Respondent not to enforce recovery of impugned Demand Notice which is subject matter of appeal pending before the Customs Appellate Tribunal, Karachi, till next date of hearing. However, after hearing the parties at length, the Hon'ble High Court of Sindh, at Karachi vide order dated December I9, 20I9 disposed of the above petition, with the directions to the Respondents not to enforce recovery of impugned Demand Notice, being the subject matter of appeal, and further directed the Petitioner to file urgent application before the concerned bench of Customs Appellate Tribunal, Karachi. The Tribunal has stayed the recovery and the case is pending adjudication with the Tribunal. Subsequent to the year end, the Tribunal has given the decision uphelding the adjudication order. The Comapny has filed rectification and amendments against the judgement dated March I8, 2024 on May 29, 2024 before the tribunal. and has requested for urgent hearing. The rectification request has not come up for hearing till today and we are hopeful that the rectification expected shall clear the arbitrary audit issue, raised without any basis.

In midst of the above legal battle, the Collector, Gaddani, had cancelled the manufacturing bond license of the Company. However, the Chief Collector has subsequently restored the manufacturing Bond status.

Keeping in view the fact that the restoration has been granted, the Management is expecting a favourable decision, therefore no provision is made in these financial statements.

The Company has already invested more than Rs. 2,000 million on Land, Building, Infrastructure, Plant and machinery and civil construction of site including foundations duly completed as per specific drawings given by the Supplier, for laying Machinery. The Company has also paid 33% advance for design, engineering and shipment of

18

A Siddiqsons Group Company

the plant, amounting to RMB 40 million. As stipulated under the contract, majority of the component of plant, machinery and equipment had to be shipped in February 2020 and the remaining consignments by April 30, 2020. However, the Supplier failed to ship within the stipulated timeline. Meanwhile, the Bank Guarantees issued by the Supplier were expiring in April 2020. The Supplier besides delaying shipment did not extend Bank Guarantees beyond its expiry date in April 2020. These bank guarantees covered the consignments to be shipped, by April 30, 2020, since the consignments were not shipped, it left no option for the Company but to call for the encashment of Bank Guarantees to secure itself.

On August 27, 2020 the Supplier filed a case in Singapore International Arbitration Centre (SIAC) and appointed the arbitrator, contesting the case of encashment of above described Bank Guarantees. The Supplier claimed the right to retain the payments already made as an advance by the Company amounting to RMB I9.52 million. The Supplier also claimed for the damages and losses of RMB 35.86 million.

The Company also appointed the arbitrator and a lawyer to defend its position. The Company counter claimed USD I2.65 million with a detailed response on September I7, 2020 against the failure to make the delivery of goods within agreed timeline by the Supplier.

On October 06, 2022, Singapore International Arbitration Council (SIAC) has awarded that the Company wrongfully repudiated the Contracts by, inter alia, encashing the Bank Guarantees and attempted to cancel the letter of credit (LC). The SIAC had further declared that the Company is liable to pay Rs. I,640.39 million as detailed below and the supplier has right to forfeit advance amounting to Rs.408.40 million made by the Company

I. CNY (Chinese Yuan) 35,799,296 (amounting to Rs. I,37I million) in damages as compensation for losses suffered by the Supplier (A);

1. legal costs and disbursements being SGD (Singaporean Dollar) 40,0I7.74 (amounting to Rs. 8.2I million) and CNY 3,III,489 (amounting to Rs. I2I.35 million) (B) to Supplier; and

2. interest of 0.9446% per annum compounded monthly; on 'I' (from August 28, 2020) and on '2' (from the date of the award); until the same are fully and finally paid which is around CNY I.3 million (amounting to Rs. 53.62 Million)

3. 50% of the costs of arbitration, amounting to SGD 296,852.28 (Rs. 60.89 million).

Furthermore, SIAC declared that the Supplier has right to retain the payments in the amount of CNY I9,5I5,577 made by the Company under the CRM Contract as disclosed in note 6 of the financial statements.

19

A Siddiqsons Group Company