Transmission of Quarterly Report for the Period Ended 30.9.2025

Contents

Sitara Energy Limited

Consolidated Accounts

(Sitara Energy Ltd and Its Subsidiary Company)

Company Information

BOARD OF DIRECTORS

Ms. Noureen Javed (Chairperson) Mr. Javed Iqbal (Chief Executive Onjcer) Mr. Shahid Hameed Sheikh

Mr. Tahir Ibraheem Ms. Haniah Javed

Mr. Mubashir Ahmed Zareen Mr. Sheikh Javaid Islam

CHIEF FINANCIAL OFFICER

Mr. Ijaz A. Babar - FCA

COMPANY SECRETARY

Mr. Mazhar Ali Khan

Legal Advisor

Sahibzada Muhammad Arif

Share Registrar

THK Associates (Private) Limited

Plot No. 32-C, Jami Commercial Street 2,

D.H.A. Phase VII, Karachi UAN : +92 (21) 111-000-322

E-mail: aa@thk.com.pk

Registered Onjce

601-602 Business Centre, Mumtaz Hassan Road, Karachi 74000

Plant

33 K.M., Sheikhupura Road, Faisalabad

Audit Committee

Mr. Shahid Hameed Sheikh (Chairman)

Mr. Sheikh Javaid Islam Mr. Tahir Ibrahim

Human Resource & Remuneration Committee

Mr. Mubashir Ahmed Zareen (Chairman)

Mr. Javed Iqbal Ms. Haniah Javed

Auditors

RSM Avais Hyder Liaquat Nauman (Chartered Accountants)

BANKERS

Standrad Chartered Bank (Pak) Limited Albaraka Bank (Pakistan) Limited National Bank of Pakistan

First Women Bank Limited Bank Alfalah Limited Faysal Bank Limited

The Bank of Punjab MCB Bank Limited United Bank Limited Meezan Bank Limited Allied Bank Limited Silk Bank Limited Askari Bank Limited

Bank Makramah Limited Habib Bank Limited

WEB SITE

https://http://www.sitara.pk

Unaudited First Quarter Report September 2025 01

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FiŶĂŶĐiĂů ZĞƐƵůƚƐ͗

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tĞ ĞdžƚĞŶd ŽƵƌ ŚĞaƌƟĞƐƚ ŐƌaƟƚƵdĞ ƚŽ aůů ŽƵƌ ůĞŶdĞƌƐ aŶd ƐƵƉƉůiĞƌƐ ĨŽƌ ƚŚĞiƌ cŽŶƟŶƵŽƵƐ ƐƵƉƉŽƌƚ iŶ difficƵůƚ ƟŵĞ aŶd dĞdicaƚĞd ǁŽƌŬ ďLJ ƚŚĞ ŵaŶaŐĞŵĞŶƚ aŶd aůů ƚŚĞ ĞŵƉůŽLJĞĞƐ iŶ ƚŚĞ ůaƌŐĞƌ iŶƚĞƌĞƐƚ ŽĨ ƚŚĞ CŽŵƉaŶLJ͘

BLJ ŽƌdĞƌ ŽĨ ƚŚĞ ďŽaƌd

November 07, 2025 Faisalabad

Sheikh Javaid Islam Director

Javed Iqbal Chief Executive Officer

˝ΎΗΟϳΗϧ

Unaudited First Quarter Report September 2025 03

2025 07

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT SEPTEMBER 30, 2025

SHARE CAPITAL AND RESERVES NON-CURRENT ASSETS

Authorised capital Property, plant and equipment 6

30,000,000 ordinary shares Investment property 7

of Rs. 10/- each 300,000 300,000 Investment in subsidiary Long term loan

Issued, subscribed Long term deposits

and paid up capital

Capital reserve - share premium Revenue reserves 3

1,855,012 1,866,917

1,340,755 1,338,895

NON-CURRENT LIABILITIES

Long term financing 4

Deferred interest / markup Deferred Revenue

506,014 497,161

CURRENT LIABILITIES CURRENT ASSETS

Trade and other payables Unclaimed dividend Interest / mark up payable Short term bank borrowings Current portion of:

Long term financing Advance Rent

Provision for taxation - income tax

Stores, spares and loose tools

Stock of oil and lubricants 8

Trade debts

Loans and advances Deposits and prepayments Other receivables

Tax refunds due from Government Short term investment

Cash and bank balances 9

907,313 1,064,830 899,070 1,033,969

CONTINGENCIES AND

COMMITMENTS 5

2,754,082 2,900,886 2,754,082 2,900,886

The annexed notes form an integral part of this condensed interim financial information.

Chief Executive Officer

Director

Chief Financial Officer

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS ACCOUNT (UNAUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

Note

Quarter ended Quarter ended

September 30, September 30,

2025 2024

------------------- Rupees in '000'--------------------

The annexed notes form an integral part of this condensed interim financial information.

Chief Executive Officer

Director

Chief Financial Officer

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

Quarter ended Quarter ended September 30, September 30,

2025 2024

--------------Rupees in '000'--------------

The annexed notes form an integral part of this condensed interim financial information.

Chief Executive Officer

Director

Chief Financial Officer

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

Issued,

Capital

Revenue reserve

subscribed

reserve

Total

and paid up capital

Share premium

General reserve

Unappropriated (loss)

Sub total

--------------------------------------Rupees in '000'-------------------------------------------

The annexed notes form an integral part of this condensed interim financial information.

Chief Executive Officer

Director

Chief Financial Officer

SITARA ENERGY LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

1. CASH FLOWS FROM OPERATING ACTIVITIES

   Quarter ended Quarter ended September 30, September 30,

   2025 2024

   -------------Rupees in '000'-------------

   (Loss) for the period before taxation	2,736		(48,259)
   Adjustments for :
   Depreciation of property, plant and equipment	4,439		3,554
   Depreciation of investment property	6,156		6,156
   Provision for staff retirement benefits	168		273
   Dividend income	(3,700)		(8,180)
   Finance cost	10,739		33,444
   Operating cash flows before working capital changes 20,538 (13,012)

   Changes in working capital

   (Increase) / Decrease in current assets

   Stores, spares and loose tools 60 20,703

   Stock of oil and lubricants	-		3,102
   Trade debts	5,949		198
   Loans and advances	735		(885)
   Deposits and prepayments	-		(940)
   Other receivables	105,113		17,486
   Sales Tax refunds due from government	1,976		(53)
   Increase in current liabilities
   Trade and other payables	33,470		(70,987)
   	147,303		(31,376)
   Cash (used in) / generated from operating activities	167,841		(44,388)
   Income tax paid	(286)		(186)
   Staff retirement benefits paid	(167)		(256)
   Finance cost paid	-		(6)
   Net cash (used in) / generated from operating activities	167,388		(44,836)
   b) CASH FLOWS FROM INVESTING ACTIVITIES
   Additions in property, plant and equipment	-		(40,724)
   Proceeds from disposal of investment property	5,000		-
   Decrease in long term deposits	10		-
   Additions in short term investment	-		(10,614)
   Dividend Income	-		8,180
   Net cash (used in) investing activities	5,010		(43,158)
   c) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of: Long term financing	-		(35,379)
   (Decrease) in short term bank borrowings - net	(193,750)		-
   Net cash (used in) financing activities	(193,750)		(35,379)
   Net (decrease) in cash and cash equivalents (a+b+c)	(21,352)		(123,373)
   Cash and cash equivalents at the beginning of the period	25,961		289,561
   Cash and cash equivalents at the end of the period	4,609		166,188

   The annexed notes form an integral part of this condensed interim financial information.

   
   
   

   Chief Executive Officer

   Director

   Chief Financial Officer

   1. STATUS AND ACTIVITIES

      1. Sitara Energy Limited (the Company) is incorporated in Pakistan as a public limited Company under the Companies Ordinance, 1984 (Repealed with the enactment of the Companies Act 2017 on May 30, 2017) and is listed on Pakistan stock exchange. The main object of the Company is generation and distribution of electricity. The registered onjce of the Company is situated at 601-602 Business Centre, Mumtaz Hasan Road, Karachi in the province of Sindh. The project is located at Tehsil Jaranwala, District Faisalabad in the province of Punjab.

      2. The company has installed solar power plant of 1 Megawatt during the year which started commercial production of solar energy from October 1, 2024.

      3. The company earned profit of Rs. 1.860 million (2024: Rs. 50.934 million - loss) during the period. However, production and sale of electricity have significantly reduced as the production from generators remained temporarily suspended due to higher fuel prices. As at the reporting date, the current liabilities of the Company exceeded its current assets by Rs. 8.243 million (2024: Rs. 482.644 million).

         These events and conditions indicate a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern and therefore, the Company may not be able to realize its assets and discharge its liabilities in the normal course of business.

         The Company has formulated a multi faceted plan and is taking measures to address these adverse factors. These are briefly discussed below;

         • the Company is installing solar power plant to produce electricity at competitive tariff to increase its turnover and improve its operating results;

         • the Company is hopeful that the available production capacity will be used in near future on the implementation of Competitive Trading Bilateral Contract Market by the Government as approved by NEPRA and fuel prices may also reduce in future as a result of decreasing demand of fossil fuels, resulting in improved generation and sales of electricity at reasonable profit margin;

         • the Company has also entered into agreements with all of its lenders, resulting in conversion of short term finances into long term finances, with pricing at cost of funds of the lenders. As a result, the finance cost is reducing from quarter to quarter and year to year moving the company towards sustainable operations in due course of time;

         The management is committed to implement its plan that will bring the company back on track and hence, the management is confident that the company will continue as a going concern.

      4. The financial statements are presented in Pak Rupee, which is the company's functional and presentation currency.

   2. BASIS OF PREPARATION

      1. 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 comprise of :

            • International Accounting Standard (IAS) 34, 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.

         2. These condensed interim financial statements do not include all the information required for complete set of financial statements, and should be read in conjunction with the Company's published audited financial statements for the year ended June 30, 2025.

      2. Application of new and revised International Financial Reporting Standards (IFRSs)

         1. Standards, amendments to standards and interpretations becoming effective in current year

            There are other new standards, amendments and IFRIC interpretations that are mandatory for accounting periods of the Company beginning on or after July 01, 2025 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the published audited financial statements for the year ended June 30, 2025.

      3. Basis of measurement

         These financial statements have been prepared under the ''historical cost convention'' except:

         - Short term investments valued at fair value through profit or loss.

      4. Accounting policies and methods of computation

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

      5. Estimates, judgments and risk management policies

         2.5.1

         2.5.2

         The preparation of these financial statements are in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect the application of accounting policies and 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 the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

         Significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on amounts recognized in these condensed interim financial statements are the same as those disclosed in the published audited financial statements for the year ended June 30, 2025.

         Risk management policies and procedures are consistent with those disclosed in the published audited financial statements for the year ended June 30, 2025.

   3. REVENUE RESERVES

      Note

      (Un-audited) (Audited)

      September 30, June 30,

      2025 2025

      ------------- Rupees in '000' ------------

      General reserve Unappropriated profit	3.1	970,000		970,000
      Opening balance		34,785		(132,352)
      Total comprehensive (loss) / proft for the period / year		1,860		167,137

   4. Long term financing

      Secured

      From banking company

      Under mark up arrangement

      36,645 34,785

      1,006,645 1,004,785

      Demand finance
      Term finance	4.1	14,580		43,748
      Demand finance	4.2	148,377		222,577
      Diminishing Musharakah	4.3	114,446		152,594
      		277,403		418,919
      Less: Paid during period/year		-		(141,517)
      		277,403		277,402
      Less: Current portion
      Instalment due		-		-
      Payable within one year		(126,932)		(126,932)

      (126,932) (126,932)

      150,471 150,470

      1. It represents the re-structuring of short term - term finance in 2023. It is secured against first exclusive charge over fixed assets of the Company. It is further secured against first joint charge over current assets of the company ranking pari passu with the charges created in respect of other long term financing and short term borrowings and also by personal guarantee of chief executive of the Company.

         It is subject to mark up at the fixed rate of 4.76% per annum (2024: 4.76% per annum). Interest/markup past due till the date of re-structuring, along with future accrued markup is repayable in four equal quarterly installments commencing from March 31, 2026 and ending on December 31, 2026.

      2. It represents the re-structuring of short term - running finance in 2024. It is secured against specific charge over investment property owned by the Company and its wholly owned subsidiary. It is further secured against first joint charge over current assets of the Company ranking pari passu with the charges created in respect of other long term financing and short term borrowings, first ranking charge over fixed assets, and by personal guarantees of two directors of the Company.

         It is subject to markup at cost of funds. Interest/markup past due till the date of re-structuring, along with future accrued markup is repayable in four equal quarterly installments commencing from June 30, 2027 and ending on March 31, 2028.

      3. It represents the re-structuring of short term - morabaha finance-I and running finance in 2024. It is secured against first joint charge over current assets of the Company ranking pari passu with the charges created in respect of other long term financing and short term borrowings. It is further secured against first joint charge over fixed assets of the Company ranking pari passu with the charges created in respect of short term borrowings and by personal guarantees of two directors of the Company.

         It is subject to markup at cost of funds. Interest/markup past due till the date of re-structuring, along with future accrued markup is repayable in two equal quarterly installments commencing from September 15, 2028 and ending on December 15, 2028.

         Effective rate of mark up charged during the year ranges from 4.76 % to 17.26% per annum (2024: 4.76% to 10.72% per annum ).

   5. CONTINGENCIES AND COMMITMENTS CONTINGENCIES AND COMMITMENTS

      There are no significant changes in contingent liabilities since the date of published audited financial

      statements for the year ended June 30, 2025.

   6. Property, plant and equipment

      Note

      (Un-audited) (Audited)

      September 30, June 30,

      2025 2025

      ------------- Rupees in '000' ------------

      Operating assets 6.1 668,601 673,040 Advance for purchase of land 16,500 16,500 685,101 689,540

      1. Operating fixed assets

         Book value at beginning of period / year 673,040 627,458 Add: Transfer / addition during the period / year 6.1.1 - 81,385 Less: Transfer / disposal during the period / year - (13,014)

         Depreciation charge during the period / year (4,438) (22,789) 668,601 673,040

         1. Additions to operating fixed assets, during the period / year were as follow

            Electric appliances - 81,385

            - 81,385

   7. Investment property

      Cost

      Accumulated depreciation

      Freehold land

      Disposals in Freehold land

      1. Reconciliation of written down value for the period / year

         246,257	246,257
         (30,782)	(24,626)

         215,475 221,631

         899,235	1,102,024
         (1,300)	(202,789)

         897,935 899,235

         1,113,410 1,120,866

         Book value at beginning of period / year 1,120,866 1,348,281

         Disposals in Freehold land (1,300) (202,789)

         Depreciation charged during the period / year (6,156) (24,626) 1,113,410 1,120,866

   8. Stock of oil and lubricants

      Furnace oil 9,019 9,019

      Diesel oil 5,146 5,146

      Lube oil 3,782 3,782

      Waste 63 63

      18,010 18,010

   9. Cash and bank balances

      Quarter ended Quarter ended September 30, September 30,

      2025 2024

      ------------- Rupees in '000' ---------

      Cash in hand	4,372	135,447
      Cash at banks In current accounts	237	30,741
      	4,609	166,188

      Note

      Quarter ended Quarter ended September 30, September 30,

      2025 2024

      ----------- Rupees in '000' -----------

      10.	Sales - net
      	Electricity	9,434	68,428
      	Less: Sales tax	(1,439)	(10,438)
      		7,995	57,990
      	Less: Electricity duty	(28)	(574)

      7,967 57,416

      1. Cost of generation

         Cost of oil and lubricants	-	49,342
         Salaries and wages and benefits	5,943	9,095
         Staff retirement benefits	109	171
         Stores, spares and loose tools	68	834
         Travelling and conveyance	6	39
         Vehicles running and maintenance	159	347
         Insurance	-	821
         Repairs and maintenance	380	1,208
         Entertainment	204	389
         Depreciation	3,273	1,463
         Other	79 371
         	10,221 64,080

      2. AGGREGATE TRANSACTIONS WITH RELATED PARTIES

         The Company in the normal course of business carries out transactions with various related parties which comprise of subsidiary, associated undertakings, key management personnel and post employment benefit plan. Significant transactions with related parties are as follows:-

         Quarter ended Quarter ended

         Name of the related party

         Relationship and Percentage

         Transactions during the year

         September 30, September 30,

         2025 2024

         ----------- Rupees in '000' ----------

         Sitara Fabrics Limited

         Sitara Energy Limited Staff Provident Fund Trust

         Associated company by virtue of common directorship

         Other related party

         Sale of Electricity

         Contribution for the period

         - 3,997

         168 273

      3. DATE OF AUTHORISATION FOR ISSUE

         This condensed interim financial report was authorised for issue on November 7, 2025 by the Board of Directors of the Company.

      4. GENERAL

         1. No provision for taxation has been made in this condensed Interim financial report as the profits and gains derived by the Company from electric power generation project are exempt from levy of Income tax.

         2. There is no unusual item included in this condensed interim financial report which is affecting equity, liabilities, assets, (loss), comprehensive (loss) or cash flows of the Company.

         3. Figures have been rounded off to the nearest thousand of Rupees except (loss) per share which is in Rupees.

      
      
      

      Chief Executive Officer

      Director

      Chief Financial Officer

      Consolidated

      Financial Statements

74 Sitara Energy Limited

SITARA ENERGY LIMITED AND ITS SUBSIDIARY COMPANY

CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

AS AT SEPTEMBER 30, 2025

2025 2025 2025 2025

Note ------Rupees in '000'------- Note --------Rupees in '000'-------

300,000 300,000 Long term loan

Long term deposits

Issued, subscribed 1,785,441 1,797,347

and paid up capital

Capital reserve - share premium Revenue reserves 4

NON-CURRENT LIABILITIES

Long term financing Deferred interest/markup Deferred revenue

1,296,655 1,293,020

506,014 497,161

CURRENT LIABILITIES CURRENT ASSETS

Trade and other payables Unclaimed dividend Interest / mark up payable Short term bank borrowings Current portion of:

Long term financing Advance Rent

Provision for taxation - income tax

Stores, spares and loose tools Stocks

Trade debts

Loans and advances Deposits and prepayments Other receivables

Tax refunds due from Government Short term investment

Cash and bank balances 8

1,034,975 1,192,124 1,052,203 1,184,958

CONTINGENCIES AND

COMMITMENTS 5

2,837,644 2,982,305 2,837,644 2,982,305

The annexed notes form an integral part of this condensed interim consolidated financial information.

Chief Executive Officer

Director

Chief Financial Officer

SITARA ENERGY LIMITED AND ITS SUBSIDIARY COMPANY

CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS ACCOUNT (UNAUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

Note

Quarter ended Quarter ended

September 30, September 30,

2025 2024

------------------- Rupees in '000'-------------------

The annexed notes form an integral part of this condensed interim consolidated financial information.

Chief Executive Officer

Director

Chief Financial Officer

SITARA ENERGY LIMITED AND ITS SUBSIDIARY COMPANY

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

Quarter ended Quarter ended September 30, September 30,

2025 2024

-------------- Rupees in '000'---------------

Profit / (loss) for the period 3,635 (51,134)

Other comprehensive income for the period - -Total comprehensive (loss) for the period 3,635 (51,134)

The annexed notes form an integral part of this condensed interim consolidated financial information.

Chief Executive Officer

Director

Chief Financial Officer

SITARA ENERGY LIMITED AND ITS SUBSIDIARY COMPANY

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

Issued, subscribed and paid up capital

Capital

reserve

Revenue reserve

Share General

premium reserve

Unappropriated (loss)

Total

Sub total

-----------------------------------------------------Rupeesin '000'----------------------------------------------------

The annexed notes form an integral part of this condensed interim consolidated financial information.

Chief Executive Officer

Director

Chief Financial Officer

SITARA ENERGY LIMITED AND ITS SUBSIDIARY COMPANY

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOW STATEMENT (UNAUDITED) FOR THE FIRST QUARTER ENDED SEPTEMBER 30, 2025

Quarter ended Quarter ended September 30, September 30,

2025 2024

-------------Rupees in '000'-------------

a) CASH FLOWS FROM OPERATING ACTIVITIES

Changes in working capital

(Increase) / Decrease in current assets

Stores, spares and loose tools 60 20,703

The annexed notes form an integral part of this condensed interim consolidated financial information.

Chief Executive Officer

Director

Chief Financial Officer

1. GROUP STATUS AND ACTIVITIES

   1. The Group consists of Sitara Energy Limited (the Parent) and Sitara International (Private) Limited (the wholly owned Subsidiary).

   2. The Parent is incorporated in Pakistan as a public limited company under the repealed Companies Ordinance, 1984 (Repealed with the enactment of the Companies Act 2017 on May 30, 2017) and is listed on Pakistan Stock Exchange Limited. The main object of the Parent is generation and distribution of electricity. The registered onjce of the Parent is situated at 601-602 Business centre, Mumtaz Hasan Road, Karachi in the province of Sindh. The generation plant is located at 33-K.M. Sheikhupura Road, Tehsil Jaranwala, District Faisalabad in the province of Punjab.

      The Subsidiary is incorporated in Pakistan as a private limited company under the repealed Companies Ordinance, 1984 (Repealed with the enactment of the Companies Act 2017 on May 30, 2017). The principal activity of the Subsidiary is trading in real estate business. The registered onjce of the Subsidiary is situated at 601-602 Business centre, Mumtaz Hasan Road, Karachi in the province of Sindh.

   3. The Parent Company has installed solar power plant of 1 Megawatt during the year which started commercial production of solar energy from October 1, 2024.

   4. The Group incurred profit of Rs.3.635 million (2024: 51.134 million loss) during the year. However, production and sale of electricity have significantly reduced as the production from generators remained temporarily suspended due to higher fuel prices. As at the reporting date, the current assets of the Group exceeded its current liabilities by Rs. 17.228 million.

      These events and conditions indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern and therefore, the Group may not be able to realize its assets and discharge its liabilities in the normal course of business.

      The Parent Company has formulated a multi faceted plan and is taking measures to address these adverse factors. These are briefly discussed below;

      • the Company is installing solar power plant to produce electricity at competitive tariff to increase its turnover and improve its operating results;

      • the Company is hopeful that the available production capacity will be used in near future on the implementation of Competitive Trading Bilateral Contract Market by the Government as approved by NEPRA and fuel prices may also reduce in future as a result of decreasing demand of fossil fuels, resulting in improved generation and sales of electricity at reasonable profit margin;

      • the Company has also entered into agreements with all of its lenders, resulting in conversion of short term finances into long term finances, with pricing at cost of funds of the lenders. As a result, the finance cost is reducing from quarter to quarter and year to year moving the company towards sustainable operations in due course of time;

      The management is committed to implement its plan that will bring the company back on track and hence, the

   5. The financial statements are presented in Pak Rupee, which is the company's functional and presentation currency.

2. BASIS OF CONSOLIDATION

   The financial statements of the Parent and Subsidiary are combined on a line by line basis. The financial statements of the Subsidiary are consolidated from the date on which more than 50% voting rights are transferred to or power to control the Subsidiary is established and are excluded from consolidation from the date of disposal or reduction of control.

   All intra-company balances, transactions and resulting unrealised profits, if any, are eliminated.

3. BASIS OF PREPARATION

   1. Statement of compliance

      These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:

      • International Financial Reporting Standards (IFRS's) 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 provisions of and directives issued under the Companies Act, 2017 differ from the IFRS's, the provisions of and directives issued under the Companies Act, 2017 have been followed.

   2. Application of new and revised International Financial Reporting Standards (IFRSs)

      1. Standards, amendments to standards and interpretations becoming effective in current period

         There are other new standards, amendments and IFRIC interpretations that are mandatory for accounting periods of the Company beginning on or after July 01, 2025 but are considered not to be relevant or not to have any significant effect on the Company's operations. The new standards, amendments and IFRIC interpretations that are relevant to the operations of the Company are disclosed in the published audited financial statements for the year ended June 30, 2025.

      2. Standards, amendments to standards and interpretations becoming effective in future periods

         There are certain amendments to standards that became effective during the year and are mandatory for accounting periods of the Group beginning on or after July 01, 2024 but are considered not to be relevant to the Group's operations and are, therefore, not disclosed in these financial statements.

   3. Basis of measurement

      These financial statements have been prepared under the "historical cost convention" except:

      - Short term investments valued at fair value through profit or loss.

   4. Accounting policies and methods of computation

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

   5. Estimates, judgments and risk management policies

      1. The preparation of consolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect the application of accounting policies and 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 the judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

         Significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on amounts recognized in this condensed interim consolidated financial statements are the same as those disclosed in the published audited consolidated financial statements for the year ended June 30, 2025.

      2. Risk management policies and procedures are consistent with those disclosed in the published audited consolidated financial statements for the year ended June 30, 2025.

4. REVENUE RESERVES

   Note

   (Un-audited) (Audited)

   September 30, June 30,

   2025 2025

   ------------- Rupees in '000' ------------

   General reserve	4.1	970,000		970,000
   Unappropriated profit
   Opening balance		(11,090)		(126,403)
   Total comprehensive (loss) / profit for the period / year		3,635		115,313
   		(7,455)		(11,090)
   		962,545		958,910

5. Long term financing

   Secured

   From banking company

   Under mark up arrangement

   Demand finance
   Term finance	5.1	14,580		43,748
   Demand finance	5.2	148,377		222,577
   Diminishing Musharakah	5.3	114,446		152,594
   		277,403		418,919
   Less: Paid during period/year		-		(141,517)
   		277,403		277,402
   Less: Current portion
   Instalment due		-		-
   Payable within one year		(126,932)		(126,932)

   (126,932) (126,932)

   150,471 150,470

   1. It represents the re-structuring of short term - term finance in 2023. It is secured against first exclusive charge over fixed assets of the Company. It is further secured against first joint charge over current assets of the company ranking pari passu with the charges created in respect of other long term financing and short term borrowings and also by personal guarantee of chief executive of the Company.

      It is subject to mark up at the fixed rate of 4.76% per annum (2024: 4.76% per annum). Interest/markup past due till the date of re-structuring, along with future accrued markup is repayable in four equal quarterly installments commencing from March 31, 2026 and ending on December 31, 2026.

   2. It represents the re-structuring of short term - running finance in 2024. It is secured against specific charge over investment property owned by the Company and its wholly owned subsidiary. It is further secured against first joint charge over current assets of the Company ranking pari passu with the charges created in respect of other long term financing and short term borrowings, first ranking charge over fixed assets, and by personal guarantees of two directors of the Company.

      
      
      

      It is subject to markup at cost of funds. Interest/markup past due till the date of re-structuring, along with future accrued markup is repayable in four equal quarterly installments commencing from June 30, 2027 and ending on March 31, 2028.

   3. It represents the re-structuring of short term - morabaha finance-I and running finance in 2024. It is secured against first joint charge over current assets of the Company ranking pari passu with the charges created in respect of other long term financing and short term borrowings. It is further secured against first joint charge over fixed assets of the Company ranking pari passu with the charges created in respect of short term borrowings and by personal guarantees of two directors of the Company.

      It is subject to markup at cost of funds. Interest/markup past due till the date of re-structuring, along with future accrued markup is repayable in two equal quarterly installments commencing from September 15, 2028 and ending on December 15, 2028.

      Effective rate of mark up charged during the year ranges from 4.76 % to 17.26% per annum (2024: 4.76% to 10.72% per annum ).

6. Contingencies and Commitments

   There are no significant changes in contingent liabilities since the date of published audited financial statements for the year ended June 30, 2025.

7. Property, plant and equipment

   Note

   (Un-audited) (Audited)

   September 30, June 30,

   2025 2025

   ------------- Rupees in '000' ------------

   Operating assets	7.1	668,614	673,040
   Advance for purchase of land		16,500	16,500
   		685,114	689,540
   7.1 Operating fixed assets Book value at beginning of period / year		673,053	627,473
   Add: Addition during the period / year	7.1.1	-	81,385
   Less: Transfer / disposal during the period / year		-	(13,014)
   Depreciation charge during the period / year		(4,438)	(22,791)
   		668,614	673,053

   1. Additions to operating fixed assets, during the period / year were as follow

   Electric Installations - 81,385

   - 81,385

8. Investment property

   Cost

   Addition in Investment property Accumulated depreciation

   Freehold land

   Addition in Freehold land Disposals in Freehold land

   1. Reconciliation of written down value for the period / year

      246,257	246,257
      (30,782)	(24,626)

      215,475 221,631

      879,651	1,082,440
      -
      (1,300)	(202,789)

      878,351 879,651

      1,093,826 1,101,282

      Book value at beginning of period / year 1,101,282 1,328,697

      Disposals in Freehold land (1,300) (202,789)

      Depreciation charged during the period / year (6,156) (24,626) 1,093,826 1,101,282

9. Stock of oil and lubricants

   Furnace oil 9,019 9,019

   Diesel oil 5,146 5,146

   Lube oil 3,782 3,782

   Waste 63 63

   Land 122,263 128,363

   140,273 146,373

   
   
   

10. Cash and bank balances

    Quarter ended Quarter ended September 30, September 30,

    2025 2024

    ------------ Rupees in '000' -----------

    Cash in hand	13,551	135,465
    Cash at banks In current accounts	16,735	31,841
    	30,286	167,306

11. Sales - net

Note

Quarter ended Quarter ended September 30, September 30,

2025 2024

------------ Rupees in '000' -----------

10,221 64,080

1. AGGREGATE TRANSACTIONS WITH RELATED PARTIES

   The Group in the normal course of business carries out transactions with various related parties which comprise of subsidiary, associated undertakings, key management personnel and post employment benefit plan. Significant transactions with related parties are as follows:-

   Name of the related party

   Sitara Fabrics Limited

   Relationship and Percentage

   Associated company by virtue of common directorship

   Transactions during the year

   Sale of Electricity

   Quarter ended Quarter ended September 30, September 30,

   2025 2024

   ----------- Rupees in '000' ----------

   - 3,997

   Sitara Energy Limited Staff Provident Fund Trust

   Other related party Contribution for the period

   168 273

2. DATE OF AUTHORISATION FOR ISSUE

   This condensed interim consolidated financial information was authorised for issue on November 7, 2025 by the Board of Directors of the Group.

3. GENERAL

   1. No provision for taxation has been made in this condensed interim consolidated financial information as the profits and gains derived by the Parent from electric power generation project are exempt from levy of Income tax under clause (132) of Part-I and clause 11A (v) of Part-IV of the Second Schedule to the Income Tax Ordinance, 2001. Provision for taxation of subsidiary is nill due to current loss during the period.

   2. There is no unusual item included in this condensed interim consolidated financial information which is affecting equity, liabilities, assets, (loss), comprehensive (loss) or cash flows of the Group.

      
      
      

   3. Figures have been rounded off to the nearest thousand of Rupees except (loss) per share which is in Rupees.

Chief Executive Officer

Director

Chief Financial Officer

If undellvered plaase ratum to•

'Shara Energy Limked

601-60d Business Cents,

Mumtaz Hassan Road, Karachi-74000

Tet: 02-32420B20-3Z413944

Fax. 021-32415452