Transmission of Quarterly Report for the Period Ended 31.03.2025

RD QUARTERLY REPORT

Sitara Chemical

Industries Limited

EXCELLENCE, QUALITY, TRUST.

02 Company Information

03 Directors' Report

06 Shariah Review Report

08 Condensed Interim Statement of Financial Position (Un-audited)

09 Condensed Interim Statement of Profit or Loss (Un-audited)

10 Condensed Interim Statement of Comprehensive Income (Un-audited)

11 Condensed Interim Statement of Changes in Equity (Un-audited)

12 Condensed Interim Statement of Cash Flows (Un-audited)

13 Notes to the Condensed Interim Financial Statements (Un-audited)

Board of Directors

Chairman

Chief Executive Officer Directors

Company Secretary Chief Financial Officer Audit Committee

Chairman Members

Human Resource & Remuneration Committee

Mr. Ahmad Hassan

Mr. Muhammad Adrees Mr. Haseeb Ahmad

Mr. Haroon Ahmad Zuberi Mr. Ahmad Nawaz

Mr. Najmul Hoda Khan Mrs. Shala Waheed Sher

Mr. Mazhar Ali Khan Mr. Zakir Hussain (FCA)

Mr. Haroon Ahmad Zuberi Mr. Najmul Hoda Khan Mr. Ahmad Nawaz

Chairman Mr. Ahmad Hassan

Members Mr. Muhammad Adrees

Mrs. Shala Waheed Sher

Head of Internal Audit Mr. Asghar Ali (ACMA)

External Auditors M/s. Yousuf Adil

Chartered Accountants

Legal Advisor Mr. Sahibzada Muhammad Arif

Shariah Advisor M/s. Alhamd Shariah Advisory Services (Pvt.) Limited

Bankers

Meezan Bank Limited Bank Alfalah Limited Habib Bank Limited

Standard Chartered Bank Pakistan Limited Al-Baraka Bank (Pakistan) Limited

Faysal Bank Limited National Bank of Pakistan MCB Bank Limited

MCB Islamic Bank Limited

Dubai Islamic Bank Pakistan Limited Bank Islami Pakistan Limited

The Bank of Khyber

Askari Bank Islamic Banking The Bank of Punjab

United Bank Limited Soneri Bank Limited Bank Al-Habib Limited

Habib Metropolitan Bank Limited Allied Bank Limited

Website of the Company https://www.sitara.com.pk

Registered Office 601-602 Business Centre, Mumtaz Hassan Road, Karachi.-74000

Share Registrar Address THK Associates (Private) Limited

Plot No. 32-C, Jami Commercial Street 2, D.H.A., Phase VII, Karachi-75500

Factories 28 / 32 KM, Faisalabad - Sheikhupura Road, Faisalabad, Pakistan

2

In the name of Allah, the Most Beneficent, the Most Gracious, and the Most Merciful. The Board of Directors of Sitara Chemical Industries Limited is pleased to present the unaudited condensed interim financial statements for the third-quarter ended March 31, 2025.

Financial Performance:

The financial results for the nine-month period ending March 31, 2025, indicates a sustained and solid performance for the company. Net sales revenue increased by 3.95% to PKR 24,248 million, compared to PKR 23,327 million for the corresponding period in fiscal year 2023-24. Overall gross profit margins of the company also witnessed a modest improvement by 4.81% reaching at PKR 3,928 million as against PKR 3,748 million during the same period last year. This improvement in gross margins can be attributed to lower production costs within the chemical division, driven by reduced coal prices and the effective use of the company's coal-based captive power generation facility. Financial costs also witnessed a reduction, driven from the State Bank of Pakistan's policy of consistently reducing policy rates adopted since the start of current financial year. The textile segment also witnessed a 5.13% growth in net sales revenue during the period under review, primarily attributable to an increase in the quantitative sale of finished fabrics.

For the reporting period under review, the company achieved a profit after tax of PKR 712 million, resulting in earnings per share of PKR 33.23. This compares favorably to the profit after tax of PKR 655 million and earnings per share of PKR 30.57 recorded during the same period of the previous fiscal year.

Future Outlook:

The construction of the 50 MW coal-fired power plant is proceeding as planned, with major equipment delivered and currently undergoing installation. The project timeline remains on schedule, Inshallah. The company holds a positive outlook for the future, supported by favorable inflation trends and the State Bank of Pakistan's current policy of maintaining a lower policy rate. Furthermore, we are closely monitoring the ongoing situation of trade tensions between the USA and China. The protracted nature of this situation could present a significant risk to the global economy, potentially triggering a global recession if tariff disputes are not resolved amicably by the major economic powers. We recognize the potential impact of such global economic headwinds on operating environment of Pakistan and are actively assessing strategies to mitigate any adverse effects.

Acknowledgments:

The Board acknowledges and appreciates the contributions of its valued business partners, stakeholders, and dedicated employees.

Chief Executive Officer Director

Date: April 29, 2025 Faisalabad.

3

Sitara Chemical Industries Limited

Sitara Chemical Industries Limited

April 23, 2025

Shañah Review Rs

For the period ended Starch 31, 20M

We have conducted a Shariah review of Silara Chemical Industries Limited (SCIL) for the period ending on March 31, 2025, in accordance with the proviaiorls outlined in the Shariah Governance Regulations of 2023. Our assessmenl red us lo the following conclusions:

the transactions, the dmaimentations and the procedures adopted have been in accordance with principles of Shariah;

the business affairs have been carried out in accordance with rules and principles of

Further, the Shariah non-compliant income earned by the company during the period has been purified from the company s income.

The company has made an equity investment in Sitara Energy Limited, which, although Shariahin its business activities, does nol entirely meet the Shariah sneerting criteria for equity investment as outlined by SECP. To ensure compliance with SGR 2023, we recommend disposing of this investment as soon as possible.

Based on the Keview of SCIL“s operations, transactions, related documentaaory processes, policies, legal agreements, and management's representation, in our opinion, the aBairs of SCIL have been carried out in accordance with the rules and principles of Shariah, and therefore, we are of the view that Sitara Chemical Industries Limited is a Shariah Compliant Company.

In the end, we pray to Allah Almighty to grant us success and help us at every step, keep us away from every lfindrance and difficulty, and give finarxñal success to Sitara Chemical Industries Limited.

Tor G Beha!fof Alharrid Shariah

Mufti Muhammad Ibrahim Essa

Cfiie/Execltkire OJcer

f '’

Muffi Ul›aid Ur Bahman Zubairi

Director

Address: Flat 503, @ Floor Ibrahim Residency, C.P & Berar Society, Karachi.

+92 322 2671867 I - https://www.alhamdshariahadvisory.com ] @ info@alhamdshariahadvisory.com

6

Sitara Chemical Industries Limited

f0r the nine tr0nths peri0J enJeJ

Mar‹h J1,2O2f

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT MARCH 31, 2025

ASSETS Note

NON - CURRENT ASSETS

Property, plant and equipment 5

Intangible assets

Investment property 6

Long-term investments

Long-term loans and advances Long-term deposits

CURRENT ASSETS

Stores, spare parts and loose tools Stock-in-trade

Trade debts

Loans and advances

Trade deposits, prepayments and other receivables Prepaid levis

Advance income tax

Other financial assets 7

Cash and bank balances

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES

Share capital Reserves Unappropriated profit

Surplus on revaluation of property, plant and equipment

NON - CURRENT LIABILITIES

Long-term financing 8

Deferred taxation

Deferred liabilities 9

CURRENT LIABILITIES

Trade and other payables

Profit / financial charges payable Short term borrowings

Provision for taxation Unclaimed dividend

Current portion of long-term financing

CONTINGENCIES AND COMMITMENTS 10

Un-audited Audited

March 31, June 30,

2025 2024

(Rupees in thousand)

28,391,122

6,548

3,420,410

20,039

516,092

125,693

32,479,904

1,951,599

3,298,016

3,184,557

1,231,386

88,031

2,308

2,365,731

677,297

532,002

13,330,927

45,810,831

214,294

1,488,856

13,132,950

3,732,315

18,568,415

8,064,809

3,599,775

195,923

11,860,507

3,411,812

1,227,054

9,429,889

505,696

29,927

777,531

15,381,909

45,810,831

22,972,726

6,787

3,427,128

20,039

225,440

125,134

26,777,254

1,590,505

3,674,747

3,158,903

1,556,335

59,621

14,368

2,454,203

864,458

360,476

13,733,616

40,510,870

214,294

1,491,865

12,464,378

3,893,550

18,064,087

2,937,312

3,692,636

240,146

6,870,094

3,210,245

966,092

9,980,651

614,034

28,136

777,531

15,576,689

40,510,870

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

8

Note

Nine months period ended Three months period ended March 31, March 31, March 31, March 31,

2025 2024 2025 2024

(..….…..……………Rupees in thousand)

Revenue from contract with

customers - net 11

23,327,005

8,382,838

Cost of sales 12

Gross profit

Distribution cost Administrative expenses Other expenses

Finance cost

Other income

Profit before income tax and final tax

Final tax and minimum tax differential

Profit before tax

Provision for taxation 13

Profit after taxation

Earnings per share - basic and diluted - (Rupees)

(19,579,022)

3,747,983

(3,159,171)

242,898

831,710

(56,573)

775,137

(119,957)

655,180

30.57

(7,025,876)

1,356,962

(1,081,016)

63,560

339,506

(25,636)

313,870

(30,563)

283,307

13.22

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

9 Sitara Chemical Industries Limited

Profit after taxation

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Gain on sale of investments measured at FVTOCI Gain/ (loss) on re-measurement of

investments measured at FVTOCI

Related tax impact

Other comprehensive income

Total comprehensive income for the period

Nine months period ended Three months period ended

(....….…..……………Rupees in thousand)

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

10

(……………………………………………………………………….. Rupees in thousand)

Balance as at July 01, 2024 - Audited Total comprehensive income

Profit for the period

Other comprehensive income

Transfer to unappropriated profit on account of disposal of financial assets carried at FVTOCI

Transfer to unappropriated profit on account of incremental depreciation - net of tax

Transactions with owners

Final dividend for the year ended June 30, 2024 @ Rs. 10 per share

Balance as at March 31, 2025 - Un-audited

The annexed notes from 1 to 19 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

11

Sitara Chemical Industries Limited

Nine months period ended

Chief Financial Officer

Chief Executive Officer

Director

12

1. LEGAL STATUS AND OPERATIONS

   1. Sitara Chemical Industries Limited ("the Company") was incorporated in Pakistan on September 08, 1981 as a public limited company under the Companies Act, 1913 (now the Companies Act, 2017). The Company is currently listed on the Pakistan Stock Exchange. The Company is a Shariah Compliant Company certified by Securities & Exchange Commission of Pakistan (SECP) under Shariah Governance Regulation 2018. The principal activities of the Company are operating Chlor alkali plant, soap noodles plant and yarn spinning unit. The registered office of the Company is situated at 601-602, Business Centre, Mumtaz Hasan Road, Karachi, in the province of Sindh and the manufacturing facilities are located at 28/32 K.M, Faisalabad - Sheikhupura Road, Faisalabad, in the province of Punjab.

      The Company is currently organized into two operating divisions and these divisions are the basis on which the Company reports its primary segment information:

      Principal business activities are as follows:

      Chemical Division Manufacturing of caustic soda, soap noodles and allied products

      Textile Division Manufacturing of yarn and trading of fabric

   2. These condensed interim financial statements are presented in Pak Rupee, which is the Company's functional and presentation currency.

2. BASIS OF PREPARATION

   1. These condensed interim financial statements of the Company for the nine months period ended March 31, 2025 have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards 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;

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

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

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

   2. These condensed interim financial statements should be read in conjunction with annual audited financial statements for the year ended June 30, 2024. Comparative statement of financial position is extracted from annual audited financial statements for the year ended June 30, 2024, whereas comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows are extracted from un-audited condensed interim financial statements for the nine months period ended March 31, 2024.

   3. These condensed interim financial statements are un-audited. However, a limited scope review has been performed by statutory auditor of the Company in accordance with Section 237 of Companies Act, 2017 and they have issued their review report thereon.

3. SUMMARY OF MATERIAL ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, JUDGMENTS AND RISK MANAGEMENT

   The material accounting policies and methods of computation adopted in preparation of these condensed interim financial statements are the same as those applied in preparation of the annual audited financial statements of the Company for the year ended June 30, 2024.

   There are certain amendments to the accounting and reporting standards that will be mandatory for the Company's annual accounting periods beginning on or after July 01, 2024, however, these amendments will not have any significant impact on the financial reporting of the Company and, therefore, have not been disclosed in these unconsolidated condensed interim financial statements.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

   The preparation of these condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

   In preparation of these condensed interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to financial statements for the year ended June 30, 2024.

5. PROPERTY, PLANT AND EQUIPMENT

   Un-audited Audited

   March 31, June 30,

   Note 2025 2024

   (Rupees in thousand)

   19,251,400	19,760,226
   9,089,118	3,125,953
   50,604	86,547
   28,391,122	22,972,726

   Operating assets 5.1

   Capital work-in-progress 5.2

   Capital stores

   Sitara Chemical Industries Limited

13

1. Operating assets

   Opening written down value Additions during the period / year:

   Buildings on freehold land - Mill Plant and machinery

   Grid station and electric installations Factory equipment

   Electric equipment Office equipment Furniture and fittings Vehicles

   Written down value of assets disposed off during the period / year Revaluation adjustments

   Depreciation charged during the period / year Written down value at the end of the period / year

   (Rupees in thousand)

   19,760,226	16,998,641
   11,823	127,354
   613,256	2,459,330
   -	13,021
   18,804	9,807
   22,346	118,695
   5,977	5,955
   5,851	2,094
   11,217	33,747
   689,274	2,770,003
   (64,545)	(69,841)
   -	1,401,244
   (1,133,555)	(1,339,821)
   19,251,400	19,760,226

   631,990 2,493,963	423,205 5,660,811	(5,045) (115,806)	1,050,150 8,038,968
   3,125,953	6,084,016	(120,851)	9,089,118

2. Capital work-in-progress Description

   At July 01,

   2024

   Additions

   Transfers At March 31, 2025

   Civil works Mechanical works

   ----------------(Rupees in thousand)----------------

   Description

   At July 01,

   2023

   Additions

   Transfers At June 30, 2024

   ----------------(Rupees in thousand)----------------

   Civil works	338,749	375,848	(82,607)	631,990
   Mechanical works	976,578	3,494,293	(1,976,908)	2,493,963
   	1,315,327	3,870,141	(2,059,515)	3,125,953

3. The Company had revalued its freehold land, building and plant & machinery at June 30, 2024. The revaluation had been carried out by Hamid Mukhatar & Company (Private) Limited, an independent valuer not connected to the Company and is on the panel of Pakistan Banks Association as asset valuer. It is also on the panel of State Bank of Pakistan and possesses appropriate qualification and recent experience in the fair value measurements in the relevant locations. The fair value was determined using the comparable price method after performing detailed enquiries and verification from various estate agents, brokers and builders keeping in view the location of the property / project, condition, size, utilization, and other relevant factors.

   Out of the total revaluation surplus of Rs. 3,894 million, Rs. 3,732 million net of tax (June 30, 2024: 3,894 million) remains undepreciated as at March 31, 2025.

4. Details of the Company's revalued assets and information about fair value hierarchy, as at March 31, 2025 are as follows:

   Un-audited Audited

   March 31, 2025 June 30, 2024

   Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

   ----------------(Rupees in thousand)----------------

   Land - freehold	-	1,524,838	-	-	1,300,875	-
   Buildings on freehold land	-	2,117,743	-	-	1,789,965	-
   Plant and machinery	-	14,033,701	-	-	12,218,350	-
   	-	17,676,282	-	-	15,309,190	-

1. INVESTMENT PROPERTY Note

Un-audited Audited

March 31, June 30,

2025 2024

(Rupees in thousand)

14

7.2 FAIR VALUE OF FINANCIAL INSTRUMENTS

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

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 (i.e. unobservable inputs). The following table presents the fair value hierarchy for financial assets which are carried at fair value:

Un-audited Audited

March 31, 2025 June 30, 2024

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

----------------(Rupees in thousand)----------------

349,214

515,244

864,458

-

20,039

20,039

-

-

-

-

20,039

677,297

-

-

-

20,039

283,088

394,209

Equity instruments at fair value:

Investments - FVTOCI Investments - FVTPL Total assets at fair value

There were no transfers between levels during the period / year. The carrying value of all other financial assets and liabilities reflected in these condensed interim financial statements approximates to their fair values.

8 LONG-TERM FINANCING

Diminishing Musharka (from financial institutions - secured)

Opening balance

Obtained during the period / year Re-paid during the period / year

Deferred grant recognized on subsidized rate loan Less: Current portion of long term loans

Un-audited Audited

March 31, June 30,

2025 2024

(Rupees in thousand)

15

1. Contingencies

   There are no significant change in status of contingencies as disclosed in the annual audited financials statements for the year ended June 30, 2024.

   3,559,522

   259,891

   2,898,124

   294,815

2. Commitments

Outstanding letters of credit for raw material, spare parts, plant and machinery Guarantees issued by banks on behalf of the Company

Un-audited Un-audited

1. REVENUE FROM CONTRACTS WITH CUSTOMERS - NET

   Local:

   Chemicals Yarn Fabric Waste

   Others - trading

   Export:

   Chemicals Gross Sales Less:

   Commission and discount Sales tax

2. COST OF SALES

Nine months period ended Three months period ended March 31 March 31 March 31 March 31

2025 2024 2025 2024

(...….…..……………Rupees in thousand)

16

14 TRANSACTIONS WITH RELATED PARTIES

The related parties comprise of associated undertakings, other related group companies, directors of the Company, key management personnel and post employment benefit plans. The Company in the normal course of business carries out transactions with its related parties. Details of transactions with related parties for the period are as follows:

Un-audited

Nine months period ended March 31 March 31

2025 2024

(Rupees in thousand)

Un-audited Audited

March 31, June 30,

2025 2024

(Rupees in thousand)

Associated company Long term receivable - undiscounted - 352,225 Following are the related parties with whom the Company had entered into transactions or have arrangement / agreement in place:

Sitara Chemical Industries Limited -Employees Provident Fund Trust

Common directorship / trustees

Associated entity

The Company does not hold any shares in the above mentioned companies.

17

1. SEGMENT REPORTING

   The Company has two reportable segments, which offer different products and are managed separately. The following summary describes the operations in each of the reportable segment of the Company:

   • Chemical division : Manufacturing of caustic soda, soap noodles and allied products

   • Textile division: Manufacturing of yarn and trading of fabric

   1. Information about operating segments is as follows:

      ……………………………………………….. Operating segments …………………………………….…………..

      Chemical Division Textile Division Total Total

      20,224,435

      1,019,383

      1,103,149

      4,023,401

      114,172

      211,136

      24,247,836

      1,133,555

      1,314,285

      ………………………………………… Un-audited ……………………………………………..

      ………………………………………… Nine months period ended ……………………………………………..
      March 31,		March 31,	March 31,	March 31,	March 31,	March 31,
      2025		2024	2025	2024	2025	2024
      (------------------------------------------- Rupees in thousand )
      Revenue from external customers - net		19,499,982		3,827,023		23,327,005
      Depreciation on property, plant and equipment		911,934		76,125		988,059
      Segment profit		772,900		218,533		991,433
      	Un-audited	Audited	Un-audited	Audited	Total Un-audited	Total Audited
      	March 31,	June 30	March 31,	June 30	March 31,	June 30
      	2025	2024	2025	2024	2025	2024
      (------------------------------------------- Rupees in thousand )

      Capital expenditure Segment assets Segment liabilities

      4,441,650

      6,532,371

      38,658,339

      22,652,163

      33,674,638

      17,857,657

      138,979

      120,068

      4,639,112

      454,853

      4,045,368

      254,321

      4,580,629

      6,652,439

      43,297,451

      23,107,016

      37,720,006

      18,111,978

      Sitara Chemical Industries Limited

18

Nine months period ended

1. Working capital changes

(Increase) / decrease in current assets Stores, spare parts and loose tools Stock-in-trade

Trade debts

Loans and advances

Trade deposits and short-term prepayments

Increase / (decrease) in current liabilities Trade and other payables

(108,655)

(989,929)

(559,424)

(265,240)

(20,006)

(1,943,254)

(65,196)

(2,008,450)

19