OLP Modaraba - Interim / Quarterly Report 2025

Trusted Halal Solutions

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2025

CONTENTS
Modaraba Information	02
Directors’ Review	03
Condensed Interim Statement of Financial Position	07
Condensed Interim Profit and Loss Account and
Other Comprehensive Income (Un-audited)	08
Condensed Interim Statement of Cashflows (Un-audited)	09
Condensed Interim Statement of Changes in Equity	10
Notes to and Forming Part of the Condensed
Interim Financial Statements (Un-audited)	11

Annual Report 2025 / 01

MODARABA INFORMATION

Modaraba Company OLP Services Pakistan (Pvt) Limited

Directors of Modaraba Company

Mr. Naveed Kamran Baloch	Mr. Naveed Kamran Baloch	Chairman /
		Independent Director
Mr. Raheel Qamar Ahmad		Managing Director /
		Chief Executive Officer
Mr. Ramon Alfrey		Director
Mr. Nausherwan Adil Mian Faysal Riaz		Independent Director Director
Mr. Nadim D. Khan		Director
Ms. Naila Hasan	Female Independent Director

Company Secretary

Bankers/ Financial Institutions

Standard Chartered Bank (Pakistan) Limited (Saadiq) Meezan Bank Limited United Bank Limited (UBL Ameen) Bank Alfalah Limited (Islamic banking) Allied Bank Limited (Islamic banking) Bank Al Habib Limited (Islamic banking) Habib Bank Limited (Islamic banking) Al - Barka Bank (Pakistan) Limited Pakistan Mortgage Refinance Company Limited MCB Islamic Bank Limited Habib Metropolitan Bank Limited (Islamic Banking) Askari Bank Limited (Islamic Banking)

Legal Advisors

Haider Ali Khan Advocate High Court, Partner, Fazle Ghani Advocates

Mr. Muhammad Siddique

Audit Committee
Mr. Nausherwan Adil	Chairman
Mr. Ramon Alfrey	Member
Mian Faysal Riaz	Member
Human Resource and Remuneration	(HR&R)
Committee
Ms. Naila Hasan	Chairperson
Mr. Ramon Alfrey	Member
Mr. Raheel Qamar Ahmad	Member
Risk Committee
Mian Faysal Riaz	Chairman
Mr. Nausherwan Adil	Member
Mr. Raheel Qamar Ahmad	Member
Mr. Ramon Alfrey	Member
Shariah Advisor

Mufti Faisal Ahmed

Auditors

Modaraba Company Registered Office

OLP Building, Plot no. 16, Sector no. 24, Korangi Industrial Area Karachi.

Modaraba Head Office:

Office No. 601, 6th Floor, Syedna Tahir Saifuddin Memorial Foundation Building, Beaumont Road, Civil Lines, Karachi. Phone: (021) 38341168 Email:[email protected]

Lahore Branch:

Office No-08, 1St floor, Park Lane Tower (Mall Of Lahore) 172-Tufail Road, Lahore Cantt. Phone: (042) 38017006

Islamabad Branch:

Ground Floor, Phase 1, State Life Building No. 5, Nazimuddin Road, Blue Area, Islamabad.

Registrars & Share Registration Office:

Famco Share Registration Service (Private) Limited 8-F, Next to Hotel Faran, Nursery, Block 6, P.E.C.H.S., Shahra-e-Faisal, Karachi. Tel: (92-21) 34380101-5 Fax: (92-21) 34380106 Email: [email protected]

KPMG Taseer Hadi & Co. Chartered Accountants

02 / www.olpmodaraba.com

DIRECTORS’ REVIEW

For the period ended September 30, 2025

The Board of Directors of OLP Services Pakistan (Private) Limited, the management company of OLP Modaraba is pleased to present the unaudited accounts for the three months period ended September 30, 2025.

1. Economic Outlook

Over the past year, Pakistan has made progress toward macroeconomic stabilization. Real GDP growth is projected to reach 3.6% in FY25, supported by a rebound in industrial activity and expansion in the services sector. Inflation has dropped to 4.5%, its lowest level in eight years, due to prudent monetary policy and easing global commodity prices. The exchange rate has stabilized, and foreign reserves have more than doubled, bolstered by strong remittance inflows and multilateral financing.

While these developments reflect a more stable economic foundation, certain risks remain elevated. Sustained growth will require deep structural reforms, particularly in tax administration, energy pricing, and governance. The fiscal outlook is mixed: although the fiscal deficit is projected to rise to 7.6% of GDP in FY25 due to higher interest payments, it is expected to gradually decline as fiscal tightening measures take effect.

Pakistan’s macroeconomic indicators suggest a cautiously optimistic path forward, provided reform momentum is maintained and external conditions remain supportive. However, the government’s continued focus on digital transformation, export diversification, and investment in infrastructure is expected to further support economic resilience. Initiatives aimed at enhancing agricultural productivity, boosting SME financing, and streamlining regulatory frameworks are likely to improve competitiveness and attract foreign direct investment. These efforts, combined with a stable macroeconomic environment, position Pakistan to capitalize on emerging regional trade opportunities and strengthen its long-term growth trajectory.

2. Financial Highlights

Financial results are summarized as under:

Balance Sheet Certificate capital Total equity Total assets Investment in Ijarah Assets Investments in Diminishing Musharika Redeemable capital Profit and Loss Revenue (net of Ijarah assets depreciation) Financial charges Operating expenses Profit before provisions Provision for impairment – net Profit before modaraba management company's remuneration Profit before taxation Net profit	September 30, 2025 June 30, 2025 (Rupees) 453,835 453,835 1,246,752 1,326,902 8,598,465 8,873,727 683,548 736,742 6,646,948 6,810,158 5,137,410 5,633,455 Three months ended September 30, 2025 Three months ended September 30, 2025 (Rupees) 324,951 428,205 (184,052) (298,942) (71,432) (68,029) 69,466 61,235 (10,714) (8,415) 58,752 52,820 50,956 45,914 33,308 33,187

Annual Report 2025 / 03

3. Review of Operations

By the Grace of Allah, your Modaraba’s performance during the period under review continued to be very strong. Despite difficult economic environment, Modaraba’s net profit for the period remained steady at PKR 33.31 million, showing a marginal increase from PKR 33.19 million recorded in the corresponding period last year. Gross revenue (net of Ijarah assets depreciation and including other income) decreased by 24.11% from PKR 428.21 million to PKR 324.95 million in the corresponding period last year mainly due to substantial downward movement of benchmark rates (KIBOR). In line with this reduction of bench mark rates and efficient liquidity management practices, financial and other charges decreased from PKR 298.94 million to PKR 184.05 million showing a reduction of 38.43% compared to the corresponding three-months period of last year. There is a net provision of PKR 10.71 million which was due to pro-active and subjective down grading of some stressed customers. Administrative and operating expenses increased by 5% from PKR 68.03 million to PKR 71.43 million. Profit before taxation and levy increased by 10.98% from PKR 45.91 million to PKR 50.96 million in the corresponding period last year.

The portfolio of Ijarah finance, Diminishing Musharakah finances and short-term investments stood at PKR 7,331 million compared to PKR 7,707 million as of June 30, 2025, showing a decrease of 4.88% during the three months period. Furthermore, total assets decreased by 3.10% to PKR 8,598 million from PKR 8,874 million as of June 30, 2025, mainly funded by the Redeemable Capital portfolio of PKR 5,137 million; a 8.81% reduction from PKR 5,633 million as at June 30, 2025. During the period under review, the Modaraba booked fresh disbursements to the tune of PKR 675 million as compared to PKR 778 million during the corresponding period last year.

The business has been driven mainly by deepening relationships with selective clientele and initiating relationships with good names. The asset portfolio has a good mix of multinationals, large and medium-sized local corporates, selective SME relationships and an excellent housing and consumer portfolio.

OLP Modaraba manages and monitors risk exposure very prudently. The evaluation of a borrower’s credit profile including repayment ability is made at the time of granting of a facility and regular oversight is carried out thereafter. Further, there are Portfolio Management and Early Alert committees which are responsible for ensuring portfolio monitoring and timely alerts for possible untoward scenarios.

4. Credit Rating

The Pakistan Credit Rating Agency Limited (PACRA) has maintained the ratings of your Modaraba as AA (Double A) and A1+ (A one plus) for long-term and short-term respectively. These ratings indicate low expectation of credit risk and very strong capacity for timely payment of financial commitments.

5. Acknowledgement

The Board appreciates the support of regulatory authorities, certificate-holders, customers and business partners and looks forward to their support in future.

Karachi: October 27, 2025

Raheel Qamar Ahmad Managing Director/ CEO

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Ramon Alfrey
Director
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04 / www.olpmodaraba.com

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Annual Report 2025 / 05

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06 / www.olpmodaraba.com

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at September 30, 2025

Note As at September 30, 2025 ASSETS Non-current assets Long-term portion of diminishing musharika 5.4 jarah assets 6 Property and equipment 7 ntangible assets 8 Deferred tax assets - net Total non-current assets Current assets Current portion of diminishing musharika 5.4 jarah rentals receivable 10 Advances, deposits, prepayments and other receivables Short term investments 11 Cash and bank balances 9 Total current assets TOTAL ASSETS EQUITY AND LIABILITIES CERTIFICATE HOLDERS' EQUITY Certificate capital Authorised certificate capital 50,000,000 (June 30, 2025: 50,000,000) certificates of Rs. 10 each amounting to Rs. 500,000,000 (June 30, 2025: Rs. 500,000,000) ssued, subscribed and paid-up certificate capital 28,500,000 (June 30, 2025: 28,500,000) certificates of Rs. 10 each fully paid in cash 6,883,530 (June 30, 2025: 16,883,530) bonus certificates of Rs. 10 each Capital reserve Revenue reserve Total certificate holders' equity LIABILITIES Non-current liabilities Long-term portion of term finance arrangements 12 Long-term portion of security deposits Long-term portion of redeemable capital Long-term portion of lease liability Total non-current liabilities Current liabilities Current portion of redeemable capital Current portion of term finance arrangements 12 Running musharika Current portion of security deposits Current portion of lease liability Accrued and other liabilities Profit distribution payable 13 Provision for taxation - net Total current liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES CONTINGENCIES AND COMMITMENTS 14	(Rupees) September 30, 2025 (Un-audited) June 30, 2025 (Audited) 4,443,203,524 4,736,612,650 683,547,996 736,741,555 68,220,543 72,962,862 1,354,186 1,825,173 72,768,056 57,377,814 5,269,094,305 5,605,520,054 2,203,744,881 2,073,545,076 24,898,477 33,710,624 339,007,834 396,635,764 40,915 159,735,406 761,678,522 604,579,710 3,329,370,629 3,268,206,580 8,598,464,934 8,873,726,634 500,000,000 500,000,000 285,000,000 285,000,000 168,835,300 168,835,300 453,835,300 453,835,300 578,888,037 578,888,037 214,028,594 294,179,147 1,246,751,931 1,326,902,484 760,396,582 587,942,472 139,427,591 147,484,426 807,005,000 102,100,000 47,432,518 52,411,693 1,754,261,691 889,938,591 4,330,405,000 5,531,355,000 476,861,970 318,836,244 - 150,000,000 142,492,770 131,090,150 11,946,407 7,852,473 361,005,240 366,530,969 193,347,344 79,892,967 81,392,581 71,327,756 5,597,451,312 6,656,885,559 7,351,713,003 7,546,824,150 8,598,464,934 8,873,726,634	(Rupees) September 30, 2025 (Un-audited) June 30, 2025 (Audited) 4,443,203,524 4,736,612,650 683,547,996 736,741,555 68,220,543 72,962,862 1,354,186 1,825,173 72,768,056 57,377,814 5,269,094,305 5,605,520,054 2,203,744,881 2,073,545,076 24,898,477 33,710,624 339,007,834 396,635,764 40,915 159,735,406 761,678,522 604,579,710 3,329,370,629 3,268,206,580 8,598,464,934 8,873,726,634 500,000,000 500,000,000 285,000,000 285,000,000 168,835,300 168,835,300 453,835,300 453,835,300 578,888,037 578,888,037 214,028,594 294,179,147 1,246,751,931 1,326,902,484 760,396,582 587,942,472 139,427,591 147,484,426 807,005,000 102,100,000 47,432,518 52,411,693 1,754,261,691 889,938,591 4,330,405,000 5,531,355,000 476,861,970 318,836,244 - 150,000,000 142,492,770 131,090,150 11,946,407 7,852,473 361,005,240 366,530,969 193,347,344 79,892,967 81,392,581 71,327,756 5,597,451,312 6,656,885,559 7,351,713,003 7,546,824,150 8,598,464,934 8,873,726,634
		5,605,520,054
		2,073,545,076 33,710,624 396,635,764 159,735,406 604,579,710
		3,268,206,580
		8,873,726,634
		500,000,000
		285,000,000 168,835,300
		453,835,300 578,888,037 294,179,147
		1,326,902,484
		587,942,472 147,484,426 102,100,000 52,411,693
		889,938,591
		5,531,355,000 318,836,244 150,000,000 131,090,150 7,852,473 366,530,969 79,892,967 71,327,756
		6,656,885,559
		7,546,824,150
		8,873,726,634

The annexed notes from 1 to 26 form an integral part of these condensed interim financial statements.

For OLP Services Pakistan (Private) Limited (Management Company)

	Chief Executive SD	Director SD	Director SD	Chief Financial Officer SD
				Annual Report 2025 / 07

CONDENSED INTERIM STATEMENT OF PROFIT AND LOSS ACCOUNT AND OTHER COMPREHENSIVE INCOME (UN-AUDITED)

[For The Three Months Period Ended September 30, 2025]

Income on diminishing musharaka arrangements Ijarah rentals earned Dividend income Profit on bank balances Financial and other charges 15 Depreciation on ijarah assets Reversal of impairment on assets under ijarah arrangements ECL (charge) / reversal against ijarah rentals receivable - net ECL charge against diminishing musharaka - net Other income Administrative and operating expenses Management Company's remuneration 16 Provision for services sales tax on the Management Company's remuneration 17 Provision for workers' welfare fund - net 18 Profit for the period before taxation and levy Levy - final tax 19 Profit for the period before taxation Taxation 19 Profit for the period after taxation Other comprehensive income for the period Total comprehensive income for the period Earnings per certificate - basic and diluted 20 Note	Three months period ended September 30, 2025 Three months period ended September 30, 2024	Three months period ended September 30, 2025 Three months period ended September 30, 2024
	269,103,291 314,301,545 100,721,958 175,047,086 1,107,484 14,315,257 14,444,222 22,127,059 385,376,955 525,790,947 (184,051,776) (298,941,509) (70,822,727) (108,434,539) - - (254,874,503) (407,376,048) 130,502,452 118,414,899 (1,524,803) 1,173,556 (9,189,587) (9,588,387) 119,788,062 110,000,068 10,396,311 10,848,820 (71,432,378) (68,028,870) 58,751,995 52,820,018 (5,875,200) (5,282,002) (881,280) (686,660) (1,039,909) (937,027) 50,955,606 45,914,329 (166,123) (2,147,289) 50,789,483 43,767,040 (17,481,211) (10,580,334) 33,308,272 33,186,706 - - 33,308,272 33,186,706 0.73 0.73 (Rupees)
		525,790,947 (298,941,509) (108,434,539) -
		(407,376,048)
		118,414,899 1,173,556 (9,588,387)
		110,000,068 10,848,820 (68,028,870)
		52,820,018 (5,282,002) (686,660) (937,027)
		45,914,329 (2,147,289)
		43,767,040 (10,580,334)
		33,186,706 -
		33,186,706
		0.73

The annexed notes from 1 to 26 form an integral part of these condensed interim financial statements.

For OLP Services Pakistan (Private) Limited (Management Company)

Chief Executive SD	Director SD	Director SD	SD
			Chief Financial Officer

/ www.olpmodaraba.com

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

For The Three Months Period Ended September 30, 2025

CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period before taxation Adjustments for non-cash and other items: Depreciation on tangible assets in own use Depreciation on right-of-use assets Amortisation on intangible assets Depreciation on ijarah assets Gain on disposal of ijarah assets ECL charge/ (reversal) against ijarah rentals receivable - net ECL charge against diminishing musharika - net Profit on bank balances Levy Financial charges on - Return on redeemable capital expensed - Return on running musharika expensed - Amortisation of lease liability against right-of-use assets - Return on term finance arrangements expensed Provision for services sales tax on the Management Company's remuneration Provision for Workers' Welfare Fund - net (Increase) / decrease in assets Advances, deposits, prepayments and other receivables jarah rentals receivable Short term investments Diminishing musharika Purchase of assets under ijarah arrangements Proceeds from disposal of assets under ijarah arrangements ncrease / (decrease) in liabilities Accrued and other liabilities Advance ijarah rentals received Security deposits Profit paid on - Redeemable capital - Term finance arrangements Taxes and levy paid Net cash generated from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchases of tangible assets ncome received on bank deposits Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from redeemable capital less repayments Lease liability paid Term finance less repayments Profit distributed to certificate holders Net cash (used in) / generated from financing activities Net increase in cash and cash equivalents during the period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 24 The annexed notes from 1 to 26 form an integral part of these condensed interim financial sta Note	Three months period ended September 30, 2025 Three months period ended September 30, 2024	Three months period ended September 30, 2025 Three months period ended September 30, 2024
	50,789,483 43,767,040 1,181,183 2,095,169 3,561,135 - 470,987 569,276 70,822,727 108,434,539 - (382,070) 1,524,803 (1,173,556) 9,189,587 9,588,387 (14,444,222) (22,127,059) 166,123 2,147,289 134,065,550 216,698,416 2,210,981 - 1,889,124 - 27,760,665 60,556,864 881,280 686,660 1,039,909 937,027 240,319,832 378,030,942 291,109,315 421,797,982 59,671,033 (46,687,720) 7,287,343 5,168,226 159,694,491 200,198,111 154,019,733 (264,336,495) (18,831,420) (73,566,500) 1,202,250 6,030,153 363,043,430 (173,194,225) (718,837) (37,091,416) - (4,645,531) 3,345,785 6,498,652 2,626,948 (35,238,295) 656,779,693 213,365,462 (136,066,365) (233,562,442) (34,698,918) (62,264,904) (170,765,283) (295,827,346) (22,972,749) (20,787,551) 463,041,661 (103,249,435) - (3,159,851) 12,401,128 20,943,555 12,401,128 17,783,704 (496,045,000) 656,000,000 (2,774,360) - 180,479,833 (1,433,617) (4,450) - (318,343,977) 654,566,383 157,098,812 569,100,652 604,579,710 329,627,579 761,678,522 898,728,231 tements. (Rupees)
		2,095,169 - 569,276 108,434,539 (382,070) (1,173,556) 9,588,387 (22,127,059) 2,147,289 216,698,416 - - 60,556,864 686,660 937,027
		378,030,942
		421,797,982
		(46,687,720) 5,168,226 200,198,111 (264,336,495) (73,566,500) 6,030,153
		(173,194,225)
		(37,091,416) (4,645,531) 6,498,652
		(35,238,295)
		213,365,462
		(233,562,442) (62,264,904)
		(295,827,346) (20,787,551)
		(103,249,435)
		(3,159,851) 20,943,555
		17,783,704
		656,000,000 - (1,433,617) -
		654,566,383
		569,100,652 329,627,579
		898,728,231

For OLP Services Pakistan (Private) Limited (Management Company)

	Chief Executive SD	Director SD	Director SD	Chief Financial Officer SD
				Annual Report 2025 / 09

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For The Three Months Period Ended September 30, 2025

Issued, subscribed and paid-up certificate capital	Capital reserv	Capital reserv	e	Revenue reserve	Total Reserve	Total
	Premium on issue of modaraba certificates	Statutory reserve	Sub-total	Unappropria- ted profit
453,835,300 -----------	55,384,700 -------------	523,503,337 -------------	578,888,037 -- (Rupees) --	210,869,362 ------------	789,757,399 -------------	1,243,592,699 ------------
- -	- -	- -	- -	33,186,706 -	33,186,706 -	33,186,706 -
- -	- -	- -	- -	33,186,706 (90,767,060)	33,186,706 (90,767,060)	33,186,706 (90,767,060)
453,835,300	55,384,700	523,503,337	578,888,037	153,289,008	732,177,045	1,186,012,345

453,835,300	55,384,700	523,503,337	578,888,037	294,179,147	873,067,184	1,326,902,484
- -	- -	- -	- -	33,308,272 -	33,308,272 -	33,308,272 -
- -	- -	- -	- -	33,308,272 (113,458,825)	33,308,272 (113,458,825)	33,308,272 (113,458,825)
453,835,300	55,384,700	523,503,337	578,888,037	214,028,594	792,916,631	1,246,751,931

The annexed notes from 1 to 26 form an integral part of these condensed interim financial statements.

For OLP Services Pakistan (Private) Limited (Management Company)

Chief Executive SD	Director SD	Director SD	SD
			Chief Financial Officer

/ www.olpmodaraba.com

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

For The Three Months Period Ended September 30, 2025

1 STATUS AND NATURE OF BUSINESS

OLP Modaraba ('the Modaraba') was formed under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Rules framed thereunder and is managed by OLP Services Pakistan (Private) Limited ('the Management Company'). The Management Company is a wholly owned subsidiary of OLP Financial Services Pakistan Limited.

The registered office of the Management Company is situated at OLP Building, Plot No. 16, Sector No. 24, Korangi Industrial Area, Karachi.

The Modaraba is operated through a head office in Karachi which is situated at 6th Floor, Syedna Tahir Saifuddin Trust Building, Beaumont Road, Civil Lines and two branches which are located in Lahore and Islamabad. The Lahore branch office is situated at office no. 08, Park Lane Tower, 172-Tufail road, Lahore Cantonment. The Islamabad branch is situated at Ground Floor, Phase 1, State Life Building No. 5, Nazimuddin Road, Blue Area, Islamabad.

The Modaraba is a perpetual Modaraba and is primarily engaged in financing of plant and machinery, motor vehicles (both commercial and private), computer equipment and housing under the modes of ijarah (Islamic leasing) and diminishing musharaka. The Modaraba may also invest in commercial and industrial ventures suitable for the Modaraba. The Modaraba is listed on the Pakistan Stock Exchange Limited.

The Pakistan Credit Rating Agency Limited (PACRA) has assigned long term rating of AA (June 30, 2025: AA) and short term rating of A1+ (June 30, 2025: A1+) to the Modaraba on February 28, 2025.

2 BASIS OF PREPARATION

2.1 Statement of compliance

These condensed interim financial statements have been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. The approved accounting 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;
Requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981 and Modaraba Regulations, 2021;

Annual Report 2025 / 11

Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act 2017; and
Provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP), under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017.

Wherever the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Modaraba Regulations, 2021, IFAS, the Companies Act, 2017 and provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP), under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017 differ from IAS 34, the requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981, Modaraba Regulations, 2021, IFAS, the Companies Act, 2017 and provisions of and directives issued by the Securities and Exchange Commission of Pakistan (SECP), under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Companies Act, 2017 have been followed.

2.2 The disclosures made in these condensed interim financial statements have, however, been limited based on the requirements of IAS 34: 'Interim Financial Reporting'. These condensed interim financial statements do not include all the information and disclosures required for a full set of financial statements and should be read in conjunction with the annual published audited financial statements of the Modaraba for the year ended June 30, 2025.
2.3 These condensed interim financial statements are unaudited.

2.4 Functional and presentation currency

These condensed interim financial statements are presented in Pakistani Rupees which is also the Modaraba's functional currency. All financial information presented has been rounded off to the nearest Rupee, unless otherwise stated.

3 MATERIAL ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS

3.1 The accounting policies and accounting estimates adopted and the methods of computation of balances used in the preparation of these condensed interim financial statements are the same as those that were applied in the preparation of the annual published audited financial statements of the Modaraba for the year ended June 30, 2025.

12 / www.olpmodaraba.com

3.2 The preparation of these condensed interim financial statements in conformity with the approved accounting standards as applicable in Pakistan requires the management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenses. It also requires the management to exercise judgements in application of the Modaraba's accounting policies. The estimates, judgements and associated assumptions are based on the management's experience and various other factors that are believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both the current and future periods. In preparing these condensed interim financial statements, the significant judgements made by the management in applying the Modaraba's accounting policies and the key sources of estimation of uncertainty were the same as those that were applied in the annual published audited financial statements of the modaraba for the year ended June 30, 2025.

3.3 Standards, interpretations and amendments to the published accounting and reporting standards that are effective in the current period

There are certain amendments to the standards and new interpretations that are mandatory for accounting periods beginning on or after July 1, 2025 but are considered not to be relevant or do not have any significant effect on the Modaraba's operations and are, therefore, not detailed in these unconsolidated condensed interim financial statements.

3.4 Standards, interpretations and amendments to the published accounting and reporting standards that are not yet effective

There are certain other new and amended standards, interpretations and amendments that are mandatory for the Modaraba's accounting periods beginning on or after October 01, 2025 but are considered not to be relevant or will not have any significant effect on the Modaraba's operations and are, therefore, not detailed in these condensed interim financial statements.

4 FINANCIAL RISK MANAGEMENT

The financial risk management objectives and policies adopted by the Modaraba are consistent with those disclosed in the annual published audited financial statements of the Modaraba for the year ended June 30, 2025.

Annual Report 2025 / 13

5 DIMINISHING MUSHARAKA Staff - considered good - Housing finance - Motor vehicles - Others 5.1 & 5.2 Others - considered good - Housing finance - Motor vehicles - Plant, machinery and equipment Others - considered bad or doubtful - Housing finance - Motor vehicles - Plant, machinery and equipment Less: Allowance for ECL against diminishing musharika 5.3 Others - net of ECL Allowance Note	16,223,158 18,181,799 21,072,938 10,710,900 1,172,150 1,154,063 September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~
	38,468,246 30,046,762 297,002,336 308,362,179 3,273,688,923 3,241,336,652 2,969,123,604 3,154,647,116 6,539,814,863 6,704,345,947 3,693,976 4,373,768 16,899,972 16,880,285 158,003,278 155,253,307 178,597,226 176,507,360 (109,931,930) (100,742,343)
	6,608,480,159 6,780,110,964
	6,646,948,405 6,810,157,726

5.1 Staff balances above represent finance provided to employees, officers and key management personnel of the Modaraba under diminishing musharaka arrangement for renovation, construction and purchase of house, purchase of vehicles and other consumer durables. These carry profit at the effective rates ranging from 0% to 11.80% (June 30, 2025: 0% to 14.35%) per annum and are repayable on monthly basis over a maximum period of 20 years (June 30, 2025: 20 years).

5.1.1 Staff balances above, includes diminishing musharika facility availed by key management personnel as per employment terms, with respect to housing finance, motor vehicles and personal finance amounting to Rs. 0.97 million (June 30, 2025: Rs. 2.22 million), Rs. 7.92 million (June 30, 2025: Rs 3.40 million) and Rs. 0.24 million (June 30, 2025: Rs. 0.30 million) respectively. These are secured against diminishing musharika assets.

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5.2 Reconciliation of carrying amounts of finance provided to employees and officers under diminishing musharaka arrangement Opening balance Disbursements during the period / year Net movement from prepaid during the period / year Unwinding of staff finances Transfer of resigned staff Receipts during the period / year Closing balance 5.3 Movement in ECL allowance against diminishing musharika Opening balance Charge for the period / year - net Closing balance 5.4 Break-up of diminishing musharaka between long-term and current portion Current portion of diminishing musharika Less: ECL allowance Long-term portion of diminishing musharika Less: ECL allowance	September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 30,046,762 55,087,309 16,935,999 4,245,000 (1,313,552) 32,591,616 1,381,421 7,351,607 (6,651,873) (58,171,881) (1,930,510) (11,056,889)
	38,468,246 30,046,762
	100,742,343 57,586,643 9,189,587 43,155,700
	109,931,930 100,742,343
	2,253,732,653 2,123,532,848 (49,987,772) (49,987,772)
	2,203,744,881 2,073,545,076
	4,503,147,682 4,787,367,221 (59,944,158) (50,754,571)
	4,443,203,524 4,736,612,650

5.5 During the period, the Modaraba has not availed the benefit of forced sales value of assets held as collateral against non-performing diminishing musharaka as allowed under the Modaraba Regulations, 2021 issued by the SECP.

5.6 Diminishing musharika carries profit at the rate ranging between 14.33% to 15.78% (June 30, 2025: 12.81% to 26.19%) per annum.
5.7 The table below presents information on the stages of ECL allowance related to diminishing musharika financing:

Annual Report 2025 / 15

September 30, 2025	September 30, 2025	September 30, 2025	June 30, 2025
Expected Credit Loss Allowance Outstanding principal			Expected Credit Loss Allowance Outstanding principal
6,210,868,688 2,953,970 393,829,268 5,319,105 306,704,801 101,658,855 ~~(~~Rupees~~)~~		~~)~~	6,403,384,253 4,476,308 460,427,436 6,117,442 204,266,615 90,148,593 ~~(~~Rupees~~)~~
6,911,402,758	109,931,930		7,068,078,304 100,742,343

5.8 An analysis of change in allowance for ECL in relation to diminishing musharaka financing is as follows:

September 30, 2025	September 30, 2025	September 30, 2025
Total Stage 3 Stage2 Stage 1
4,476,308 6,117,442 90,148,593 100,742,343 (1,522,338) (798,337) 11,510,262 9,189,587 ~~(~~Rupees~~)~~
2,953,970	5,319,105	101,658,855 109,931,930

	June 30, 2025
Stage 1	Total Stage 3 Stage2
3,283,926 1,192,382	5,929,517 48,373,200 57,586,643 187,925 41,775,393 43,155,700 ~~(~~Rupees~~)~~
4,476,308	6,117,442	90,148,593 100,742,343

6 IJARAH ASSETS Ijarah contracts - accounted for under IFAS 2 6.1 & 6.2 6.1 Assets under ijarah arrangements Note	683,547,996 736,741,555 September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~

During the three months period ended September 30, 2025, additions amounting to Rs 18.83 million (September 30, 2024: Rs. 73.57 million) and disposals amounting to Rs. 8.60 million (September 30, 2024: Rs. 11.30 million) were made to the assets under ijarah arrangements.

Ijarah assets Additions at cost during the period - Plant, machinery and equipments Disposals at cost during the period - Plant, machinery and equipments - Motor vehicles	18,831,420 73,566,500 September 30, 2025 (Un-audited) September 30, 2024 (Un-audited) ~~(~~Rupees~~)~~
	18,831,420 73,566,500
	- 11,299,500 8,604,500 -
	8,604,500 11,299,500

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6.2 The Modaraba has entered into ijarah agreement for period for 3 years (June 30, 2025: 1 to 5 years). Security deposits of about 20% (June 30, 2025: 0% to 43%) is obtained at the time of disbursement. The rate of profit implicit in ijarah finance is 14.83% (2025: 13.31% to 26.07%) per annum.
6.3 During the period, the Modaraba has not availed the benefit of forced sales value of assets held as collateral against non-performing ijarah as allowed under the Modaraba Regulations, 2021 issued by the SECP.

7 PROPERTY AND EQUIPMENT Tangible assets in own use Right-of-use assets 8 INTANGIBLE ASSETS Software 8.1	September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 11,869,685 13,050,869 56,350,858 59,911,993
	68,220,543 72,962,862
	1,354,186 1,825,173

8.1 During the period, the Modaraba acquired software amounting to Nil (September 30, 2024: Rs. 0.76 million).

9 CASH AND BANK BALANCES Balances with banks in: - current accounts - deposit accounts 9.1 & 9.2 Balance with the State Bank of Pakistan Cash in hand	September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 4,569,645 14,144,315 756,483,287 589,909,805 338,893 338,893 286,697 186,697
	761,678,522 604,579,710

9.1 These carry profit at the rates ranging between 5% to 8.65% (June 30, 2025: 5% to 19%) per annum.
9.2 The balances held with banks in deposit accounts have been kept in order to comply with the requirement of the Modaraba Regulations, 2021 issued by the SECP with respect to the maintenance of the prescribed liquidity against the Certificates of Musharika issued by the Modaraba.

10 IJARAH RENTALS RECEIVABLE Ijarah rentals receivable - considered good - secured Ijarah rentals receivable - considered bad or doubtful 10.3 Less: allowance for ECL on ijarah rentals receivable 10.1	September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 35,044,355 41,025,963 54,873,701 56,179,437
	89,918,056 97,205,400 (65,019,579) (63,494,776)
	24,898,477 33,710,624

Annual Report 2025 / 17

Note 10.1 Allowance for ECL on ijarah rentals receivable Opening balance Provision for the period / year - net Closing balance	September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 63,494,776 54,159,836 1,524,803 9,334,940
	65,019,579 63,494,776

10.2 During the period, the Modaraba has not availed the benefit of forced sales value of assets held as collateral against non-performing ijarah as allowed under the Modaraba Regulations, 2021 issued by the SECP.
10.3 The following table sets out information about the Expected Credit Losses (ECL) provision of ijarah rental receivable:

ijarah rental receivable:
Ijarah Stage 1 Stage 2 Stage 3 less: impairment on ijarah assets	September 30, 2025			June 30, 2025
	Expected Credit Loss Allowance Outstanding principal			Expected Credit Loss Allowance Outstanding principal
	~~(~~Rupees		~~)~~	519,124,456 279,548 46,139,020 208,320 102,282,812 77,290,863 ~~(~~Rupees~~)~~

	373,212,912 123,723,975 106,002,027	125,489 1,134,754 78,043,290
	602,938,914 -	79,303,534 667,546,288 77,778,731 (14,283,955) -(14,283,955)
	602,938,914	65,019,579		667,546,288 63,494,776

10.3.1 ECL is recorded on exposure at default which consists of future cashflows that the Modaraba is entitled to receive through out the contract period. While ijarah receivable is only recorded for the amount accrued at period end. Therefore if the ECL amount exceeds the ijarah receivable recorded, it is recognised as impairment of ijarah asset. There has been no change in the impairment on ijarah assets during the period ended September 30, 2025.
10.4 An analysis of change in ECL provision in relation to ijarah rental receivable is, as follows:

September 30, 2025	September 30, 2025	September 30, 2025
Stage 1 Total Stage 3 Stage2
~~(~~Rupees~~)~~
279,548 208,320 (154,058) 926,435		63,006,908 63,494,776 752,427 1,524,803
125,489	1,134,754	63,759,335 65,019,579

	June 30, 2025
Stage 1	Total Stage 3 Stage2
616,793 - 53,543,043 54,159,836 (337,245) 208,320 9,463,865 9,334,940 ~~(~~Rupees~~)~~
279,548	208,320	63,006,908 63,494,776

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Note 11 SHORT-TERM INVESTMENTS At fair value through profit or loss Investment in mutual funds 9.2 12 TERM FINANCE ARRANGEMENTS Musharaka / Wakala finance 12.1, 12.2 & 12.3 Less: current portion of term finance arrangements Long-term portion of term finance arrangements	September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 40,915 159,735,406
	1,237,258,552 906,778,716 (476,861,970) (318,836,244)
	760,396,582 587,942,472

12.1 Musharaka / Wakala Finance

Name of bank	Facility limit	Facility limit	Frequency of profit payment	Tenor	Tenor	Balance outstanding	Balance outstanding
	As at September 30, 2025 (Un-audited)	As at June 30, 2025 (Audited)		September 30, 2025 (Un-audited)	June 30, 2025 (Audited)	As at September 30, 2025 (Un-audited)	As at June 30, 2025 (Audited)
Allied Bank Limited Meezan Bank Limited Al Baraka Bank (Pakistan) Limited Pakistan Mortgage Refinance Company Limited Habib Metro Politan Limited	(Rupees)					(Rupees)
	500,000,000 500,000,000 500,000,000 500,000,000 300,000,000 300,000,000 48,000,000 48,000,000 400,000,000 -		Quarterly Quarterly Quarterly Quarterly Quarterly	3-5 years 3-5 years 5 years 5 years 5 years 5 years 5 years 5 years 5 years -		263,258,552 295,528,720 250,000,000 281,249,996 300,000,000 300,000,000 24,000,000 30,000,000 400,000,000 -
						1,237,258,552 906,778,716

The aforementioned facilities are secured against exclusive hypothecation over term deposit receipts, specific movable Ijarah and diminishing musharaka assets and the rentals / installments receivable in respect of such assets.

12.2 These carry profit at the rates ranging between 9.52% to 12.13% (June 30, 2025:12.08% to 22.77%) per annum.

Note 13 PROFIT DISTRIBUTION PAYABLE Profit distribution payable for the year ended June 30, 2025 13.1 Unclaimed profit distribution	September 30, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 113,458,825 - 79,888,519 79,892,967
	193,347,344 79,892,967

13.1 This includes dividend payable to OLP Financial Services Pakistan Limited and OLP Services Pakistan (Private) Limited amounted to Rs. 11,345,883 (June 30, 2025: Nil) each.

Annual Report 2025 / 19

14 CONTINGENCIES AND COMMITMENTS

14.1 Contingencies

There were no contingencies outstanding as at September 30, 2025 and June 30, 2025.

14.2 Commitments

The Modaraba has issued letter of comfort to Askari Bank Limited on behalf of M/s. Hussain Can Company (Pvt.) Limited as at period end amounting to Rs 39.760 million (June 2025: Sindh Bank Limited on behalf of M/s. AIMS Hosiery Limited & M/s. Demont Research Laboratories (Pvt.) Limited as at year end amounting to Rs. 102.17 million) for guaranteeing the payment against import of plant and machinery which will ultimately be given by the Modaraba to the client against diminishing musharika or ijarah arrangements.

15

FINANCIAL AND OTHER CHARGES Profit on redeemable capital Profit on term finance arrangements Commission Unwinding of security deposits Profit on lease finance Bank charges	Three months period ended September 30, 2025 2024 (Un-audited) ~~(~~Rupees~~)~~ 134,065,550 216,698,416 29,971,646 60,556,864 11,518,329 10,919,441 6,522,890 10,656,135 1,889,124 - 84,237 110,653
	184,051,776 298,941,509

16 MANAGEMENT COMPANY'S REMUNERATION

The Modaraba Management Company is entitled to a remuneration for services rendered to the Modaraba under the provisions of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 up to a maximum of 10% per annum of the net annual profits of the Modaraba. The remuneration for the three months ended September 30, 2025 has been recognised at 10% (June 30, 2025: 10%) of the profit before taxation for the period before charging such remuneration.

17 PROVISION FOR SERVICES SALES TAX ON THE MANAGEMENT COMPANY'S REMUNERATION

During 2013, the Sindh Revenue Board (SRB) levied Sindh sales tax on management remuneration, which is paid by the Modaraba to its Management Company under the provisions of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, treating it as a fee and chargeable under the Sindh Sales Tax Act, 2011. The Modaraba, however, considers that the management remuneration is an allocation of profit under the Shariah principle of “Modaraba” and therefore does not qualify to be treated as a fee and hence, does not attract any services sales tax.

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Pursuant to Order number SRB-COM-I/AC-V/Mgt/SCSOP/5878/2012 of the SRB dated April 22, 2013 issued to the Management Company, the Modaraba has recorded a provision in respect of Sindh Sales Tax on the Management Company's remuneration at applicable rates with effect from November 1, 2011. The Management Company had filed an appeal before the Appellate Tribunal SRB against this order. The Appellate Tribunal SRB through its order dated February 19, 2016 allowed the appeal and set aside the order-in-original and order-in-appeal and remanded back the case to the assessing officer for re-assessment. Thereafter, on April 8, 2016, the assessing officer issued a fresh notice to the Management Company contending that sales tax on the Management Company's remuneration is applicable. Against the notice, the Management Company has filed an appeal before the Honorable Sindh High Court. As an interim relief, the Court vide its Order dated October 13, 2016 has stopped the assessing authorities to pass any final order till the culmination of its proceedings. The interim relief was reconfirmed by the Court in its Order dated November 5, 2018. In an order dated September 12, 2024, the Honorable Sindh High Court (the Court) rejected the plaint and advised to plead its case before the department. However, the Modaraba has continued to recognise the provision for services sales tax on the Management Company's remuneration.

18 PROVISION FOR WORKERS' WELFARE FUND

As a consequence of the 18th amendment to the Constitution of Pakistan, in May 2015 the Sindh Workers’ Welfare Fund Act, 2014 (SWWF Act) had been passed by the Government of Sindh as a result of which every industrial establishment located in the Province of Sindh, the total income of which in any accounting year is not less than Rs 0.50 million, is required to pay Sindh Workers’ Welfare Fund (SWWF) in respect of that year a sum equal to two percent of such income.

The Sindh Revenue Board (SRB) vide letter no. SRB/DC-A(W)/2017/Rep/4760 dated January 16, 2017 had advised the Modaraba to pay off all its liabilities falling due under the SWWF Act. The management considered that the SWWF Act is limited only to the province of Sindh and till the time there is any mechanism available for apportionment of total income relevant to province of Sindh, no SWWF liability to SRB can be paid out. On these grounds, foreseeing the expected WWF demand and penal actions from SRB, the Modaraba had filed a Constitutional Petition (CP) No. CP.D.3879/2017 with the Honorable Sindh High Court. On March 16, 2020, an interim order was issued by the Honorable Sindh High Court whereby the Modaraba was instructed to deposit the SWWF liability either with SRB or Nazir as appointed by the Court. During the year, no amount has been deposited relating to SWWF (June 30, 2025: Nil). The management has provided for SWWF liability for the period from January 1, 2014 to September 30, 2025 in these financial statements on a prudent basis.During the year, the Honourable High Court of Sindh ruled in favour of Modarabas that the Modarabas having trans-provincial operations will pay WWF to FBR and Modarabas' operating within a single province will pay WWF to their respective Provincial Revenue Board. However, SRB has challenged such decision in Supreme Court of Pakistan.

Pakistan.
19 LEVY AND TAXATION Levy - final tax Taxation - Current - Deferred	Three months period ended September 30, 2025 2024 (Un-audited) ~~(~~Rupees~~)~~ 166,123 2,147,289
	33,037,577 11,167,957 (15,390,242) (587,623)
	17,647,335 10,580,334

Annual Report 2025 / 21

19.1 This represents final taxes paid under section 150 of Income Tax Ordinance, 2001, representing levy in terms of requirements of IFRIC 21 and IAS 37.

20 EARNINGS PER CERTIFICATE - BASIC AND DILUTED

Diluted earnings per certificate have not been presented as the Modaraba does not have any convertible instruments in issue as at September 30, 2025 and September 30, 2024 which would have any effect on the earnings per certificate if the option to convert is exercised.

21 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS / RELATED PARTIES

Parties which are related to the Modaraba as per the requirements of IAS 24 'Related Party Disclosures', include associates, directors, staff retirement benefit plans and key management personnel. Remuneration of key management personnel are in accordance with the terms of employment. Dividend payout is recorded at the rate approved by the Modaraba Management Company. The Management Company's remuneration is in accordance with the rate mentioned in the law. Contributions to the staff provident fund and staff gratuity fund are made in accordance with the service rules. Other transactions are at agreed rates. The Modaraba enters into transactions with related parties for lease of assets and other general services. These transactions are based on a transfer pricing policy under which all transactions are carried out on agreed terms.

21.1
Transactions during the period
OLP Financial Services Pakistan Limited
Holding Company of the Management Company
Dividend
Allocated cost to the Modaraba for Islamabad office
OLP Services Pakistan (Private) Limited
- Management Company
Management Company's remuneration
Dividend
Rent reimbursement
Profit expense
Depreciation expense
Staff retirement benefits funds
Contribution made to OLP Modaraba - staff provident fund
Contribution made to OLP Modaraba - staff gratuity fund
Reimbursement to OLP Modaraba - staff gratuity fund
Director of Holding Company of the Management Company
Dividend
Director of the Management Company
Dividend

11,345,883
9,076,706
200,001
200,000
5,875,200
5,282,002
11,345,883
9,076,706
-
2,645,454
1,477,480
-
2,735,804
-
1,549,127
1,812,367
1,290,416
1,511,336
16,506
699,451
250,000
200,000
15,123
12,098
Three months period ended
September 30,
2025
2024
(Un-audited)
~~(~~Rupees~~)~~

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		Three months period ended	Three months period ended
		September 30,
		2025	2024
		(Un-audited)
		~~(~~Rupees~~)~~
	Key management personnel
	Salaries and benefits	12,367,077	18,696,242
	Contribution to staff provident fund	478,032	587,071
	Contribution to staff gratuity fund	398,202	489,030
	Reimbursement to staff gratuity fund	-	471,461
	Income on diminishing musharaka arrangements	53,993	3,915,022
	Profit on redeemable capital for the period	820,907	2,104,870
	Redeemable capital (redeemed) / issued (net off redemption)	(2,550,000)	-
	No. of persons	7	7
21.2	Balances outstanding as at period / year end (other than those disclosed in respective
	notes)
		September 30,	June 30,
		2025	2025
		(Un-audited)	(Audited)
	OLP Financial Services Pakistan Limited	~~(~~Rupees~~)~~
	- Holding Company of the Management Company
	Certificate capital [Certificates held: 4,538,353
	(June 30, 2025: 4,538,353)]	45,383,530	45,383,530
	OLP Services Pakistan (Private) Limited
	- Management Company
	Certificate capital [Certificates held: 4,538,353
	(June 30, 2025: 4,538,353)]	45,383,530	45,383,530
	Remuneration payable to the Management company	19,844,506	29,103,352
	Payable for reimbursement of expenses incurred
	by Management Company	8,377,272	-
	Director of Holding Company of the Management Company
	Certificate capital [Certificates held: 100,000
	(June 30, 2025: 100,000)]	1,000,000	1,000,000
	Dividend payable	250,000	-
	Directors of the Management Company
	Certificate capital [Certificates held: 6,049
	(June 30, 2025: 6,049)]	60,490	60,490
	Dividend payable	15,123	-
	Key management personnel
	Accrued profit on finances under diminishing musharaka	72,533	22,725
	Profit payable on redeemable capital	2,633,694	3,721,000
	Redeemable capital [Certificates held: 44
	(June 30, 2025: 47)]	31,100,000	33,650,000

Annual Report 2025 / 23

22 FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Consequently, differences can arise between carrying values and the fair value estimates.

Underlying the definition of fair value is the presumption that the Modaraba is a going concern without any intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.

22.1 Fair value hierarchy

International Financial Reporting Standard 13, 'Fair Value Measurement' requires the Modaraba to classify assets using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

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); and
Level 3: inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).

The following table shows the carrying amounts and fair values of all financial assets and financial liabilities, including their levels in the fair value hierarchy.

As at September 30, 202	As at September 30, 202	As at September 30, 202	As at September 30, 202	5(Un-audited)	5(Un-audited)	5(Un-audited)	5(Un-audited)
Carrying value				Fair value
Fair value through profit or loss	Fair value through OCI	Amortised cost	Total	Level 1	Level 2	Level 3	Total
-------------------------------------------- (Rupees)				--------------------------------------------
40,915 - - 40,915				40,915 - - 40,915
- - 761,678,522 761,678,522 - - 24,898,477 24,898,477 s - - 90,927,432 90,927,432 - - 6,646,948,405 6,646,948,405				- - - - - - - - - - - - - - - -
40,915 - 7,524,452,836 7,524,493,751				40,915 - - 40,915
- - - - - - 1,237,258,552 1,237,258,552 - - 275,397,471 275,397,471 - - 289,268,874 289,268,874 - - 5,137,410,000 5,137,410,000 - - 193,347,344 193,347,344				- - - - - - - - - - - - - - - - - - - - - - - -
- - 7,132,682,241 7,132,682,241				- - - -

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As at June 30, 2025(Audited)	As at June 30, 2025(Audited)	As at June 30, 2025(Audited)	As at June 30, 2025(Audited)	As at June 30, 2025(Audited)	As at June 30, 2025(Audited)	As at June 30, 2025(Audited)	As at June 30, 2025(Audited)
Carrying value				Fair value
Fair value through profit or loss	Fair value through OCI	Amortised cost	Total	Level 1	Level 2	Level 3	Total
-------------------------------------------- (Rupees) 159,735,406 - - 159,735,406 1 - - 604,579,710 604,579,710 - - 33,710,624 33,710,624 - - 138,672,900 138,672,900 - - 6,810,157,726 6,810,157,726				-------------------------------------------- 59,735,406 - - 159,735,406 - - - - - - - - - - - - - - - -
159,735,406 - 7,587,120,960 7,746,856,366 1				59,735,406 - - 159,735,406
- - 906,778,716 906,778,716 - - 150,000,000 150,000,000 - - 278,574,576 278,574,576 - - 296,715,793 296,715,793 - - 5,633,455,000 5,633,455,000 - - 79,892,967 79,892,967				- - - - - - - - - - - - - - - - - - - - - - - -
- - 7,345,417,052 7,345,417,052				- - - -

In the opinion of management, fair value of the financial assets and liabilities not measured at fair value are not significantly different from their carrying values since these assets and liabilities are short term in nature or are periodically repriced.

23 SEGMENT INFORMATION

As per IFRS 8, "Operating Segments", operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker. The Chief Executive Officer of the Management Company has been identified as the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

The Chief Executive Officer is responsible for the Modaraba's entire product portfolio and considers the business to have a single operating segment. The Modaraba's asset allocation decisions are based on a single integrated investment strategy and the Modaraba's performance is evaluated on an overall basis.

The internal reporting provided to the Chief Executive Officer for the Modaraba’s assets, liabilities and performance is prepared on a consistent basis with the measurement and recognition principles of the approved accounting standards as applicable in Pakistan.

The Modaraba is domiciled in Pakistan and all of its income is generated in Pakistan.

The Modaraba also has a diversified certificate holder population. As at September 30, 2025, there were only two (June 30, 2025: two) certificate holders who individually hold equal to or more than 10% of the Modaraba’s certificate capital. Their holdings were 10% and 10% (June 30, 2025: 10% and 10%) respectively.

24 CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the cash flow statement comprise of the following amounts appearing on the balance sheet:

Annual Report 2025 / 25

Cash and bank balances	761,678,522 898,728,231 Three months period ended September 30, 2025 2024 (Un-audited) ~~(~~Rupees~~)~~

25 CORRESPONDING FIGURES

Corresponding figures have been rearranged or reclassified wherever necessary for the purpose of comparison and better presentation. No significant rearrangements or reclassifications have been made in these condensed interim financial statements during the current period except reported in Note of these condensed interim financial statements.

26 DATE OF AUTHORISATION

These condensed interim financial statements were authorised for issue on October 27, 2025 by the Board of Directors of the Management Company.

For OLP Services Pakistan (Private) Limited (Management Company)

Chief Executive SD	Director SD	Director SD	SD
			Chief Financial Officer

26 / www.olpmodaraba.com

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OLP Modaraba (Formerly ORIX Modaraba)

Office No. 601, 6th Floor, Syedna Tahir Saifuddin Foundation Building, Beaumont Road, Civil Lines, Karachi. Phone: (021) 38341168 Email: [email protected]

Lahore Office:

Office No-08, 1st Floor, Park Lane Tower (Mall of Lahore) 172-Tufail Road, Lahore Cantt. Phone: (042) 38017006

Islamabad Office:

Ground Floor, Phase 1, State Life Building, No. 5, Nazimuddin Road, Blue Area, Islamabad.

AI assistant

OLP Modaraba — Interim / Quarterly Report 2025

72267_rns_2025-10-30_dc474a6d-caf9-4270-b9b8-3df2afc5552d.pdf

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CONTENTS

MODARABA INFORMATION

Directors of Modaraba Company

Company Secretary

Bankers/ Financial Institutions

Legal Advisors

Auditors

Modaraba Company Registered Office

Modaraba Head Office:

Lahore Branch:

Islamabad Branch:

Registrars & Share Registration Office:

DIRECTORS’ REVIEW

For the period ended September 30, 2025

1. Economic Outlook

2. Financial Highlights

3. Review of Operations

4. Credit Rating

5. Acknowledgement

Karachi: October 27, 2025

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

For OLP Services Pakistan (Private) Limited (Management Company)

CONDENSED INTERIM STATEMENT OF PROFIT AND LOSS ACCOUNT AND OTHER COMPREHENSIVE INCOME (UN-AUDITED)

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

1 STATUS AND NATURE OF BUSINESS

2 BASIS OF PREPARATION

2.1 Statement of compliance

2.4 Functional and presentation currency

3 MATERIAL ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS

3.3 Standards, interpretations and amendments to the published accounting and reporting standards that are effective in the current period

3.4 Standards, interpretations and amendments to the published accounting and reporting standards that are not yet effective

4 FINANCIAL RISK MANAGEMENT

12.1 Musharaka / Wakala Finance

14 CONTINGENCIES AND COMMITMENTS

14.1 Contingencies

14.2 Commitments

15

16 MANAGEMENT COMPANY'S REMUNERATION

17 PROVISION FOR SERVICES SALES TAX ON THE MANAGEMENT COMPANY'S REMUNERATION

18 PROVISION FOR WORKERS' WELFARE FUND

20 EARNINGS PER CERTIFICATE - BASIC AND DILUTED

21 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS / RELATED PARTIES

22 FAIR VALUE OF FINANCIAL INSTRUMENTS

22.1 Fair value hierarchy

23 SEGMENT INFORMATION

24 CASH AND CASH EQUIVALENTS

25 CORRESPONDING FIGURES

26 DATE OF AUTHORISATION

Lahore Office:

Islamabad Office:

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OLP Modaraba Interim / Quarterly Report 2025