OLP Modaraba - Interim / Quarterly Report 2026

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

For the period ended December 31, 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 December 31, 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 six months period ended December 31, 2025.

1. Economic Outlook

Over the past year, Pakistan has made progress toward macroeconomic stabilization. Real GDP growth is projected to reach 3.2% in FY26, supported by a moderate recovery in industrial activity and steady expansion in the services sector. Inflation has dropped to 5%, its lowest level in recent years, due to prudent monetary policy and easing global commodity prices. The exchange rate has stabilized, and foreign reserves have improved, supported by remittances 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.

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 and
including other income)
Financial charges
Operating expenses
Profit before provisions
Provision for impairment – net
Profit before modaraba management
company's remuneration
Profit before taxation
Net profit

December 31,
2025
June 30,
2025
(Rupees in 000)
(Rupees in 000)
453,835
453,835
1,288,900
1,326,902
8,535,208
8,873,727
569,097
736,742
6,916,441
6,869,497
5,280,593
5,682,549
Six months ended
December 31,
2025
Six months ended
December 31,
2024
653,377
876,482
(354,816)
(554,975)
(143,415)
(139,350)
155,146
182,157
(22,398)
(30,817)
132,748
151,340
115,132
131,258
75,456
92,961

For the period ended December 31, 2025 / 03

3. Review of Operations

By the Grace of Allah, your Modaraba continued to demonstrate strong operational and financial performance during the period under review. Gross margin (revenue net off financial charges and Ijarah assets depreciation) increased by 6.36% to PKR 279.60 million from PKR 262.87 million in the corresponding period last year reflecting its consistent ability to deliver value through effective resources management. Although gross revenue (net of Ijarah assets depreciation) decreased by 22.43% to PKR 634.40 million from PKR 817.85 million in the corresponding period last year mainly due to substantial downward movement of benchmark rates (KIBOR) yet due to efficient liquidity management practices and in line with this reduction of bench mark rates, financial and other charges also decreased to PKR 354.82 million from PKR 554.97 million showing a reduction of 36.07% compared to the corresponding six-months period of last year. Administrative and operating expenses remained well-contained and increased by just 2.92% from PKR 139.35 million to PKR 143.41 million. Due to our prudent approach, a net provision of PKR 22.40 million was charged during the period under review mainly due to subjective downward classification of one customer. Other income decreased by 67.63% to PKR 18.98 million from PKR 58.63 million in the corresponding period last year. Consequently, profit before taxation and levy decreased by 12.29% million to PKR 115.13 from PKR 131.26 whereas net profit for the period decreased by 18.83% to PKR 75.46 million from PKR 92.96 million compared to the corresponding period last year.

The portfolio of Ijarah finance, Diminishing Musharakah finances and short-term investments stood at PKR 7,430 million compared to PKR 7,707 million as of June 30, 2025, showing a decrease of 3.59% during the six months period. Furthermore, total assets decreased by 3.81% to PKR 8,535 million from PKR 8,874 million as of June 30, 2025. Assets were mainly funded by the Redeemable Capital portfolio of PKR 5,229 million; a 7.18% 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 1,619 million as compared to PKR 1,535 million during the corresponding period last year showing an increase of 5.45%.

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 remains committed to prudent risk management. Borrower credit profiles are rigorously evaluated at the time of facility approval, with continuous oversight through dedicated Portfolio Management and Early Alert committees. This ensures timely identification of opportunities and supports the Modaraba’s long-term financial health.

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 on February 28, 2025. 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: February 17, 2026

Raheel Qamar Ahmad Managing Director/ CEO

Ramon Alfrey Director

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For the period ended December 31, 2025 / 05

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2025

Note AS AT DECEMBER 31, 2025 ASSETS Non-current assets Long-term portion of diminishing musharaka 5.5 jarah assets 6 Property and equipment 7 ntangible assets 8 Deferred tax assets - net 9 Total non-current assets Current assets Current portion of diminishing musharaka 5.5 jarah rentals receivable 11 Advances, deposits, prepayments and other receivables Short-term investment 12 Cash and bank balances 10 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 ssued, subscribed and paid-up certificate capital 45,383,530 (June 30, 2025: 45,383,530) certificates of Rs. 10 each Capital reserves Revenue reserve Non-current liabilities Long-term portion of redeemable capital 14 Long-term portion of term finance arrangements 13 Long-term portion of security deposits Long-term portion of lease liability Total non-current liabilities Current liabilities Current portion of redeemable capital 14.2 Current portion of term finance arrangements 13 Current portion of security deposits Current portion of lease liability Accrued and other liabilities Provision for taxation - net Unclaimed profit distribution Running musharaka Total current liabilities TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES CONTINGENCIES AND COMMITMENTS 15 The annexed notes from 1 to 27 form an integral part of these condensed interim financial statemen	(Rupees) December 31, 2025 (Un-audited) June 30, 2025 (Audited) 4,584,446,592 4,736,612,650 569,097,022 736,741,555 64,522,375 72,962,862 945,331 1,825,173 81,513,033 57,377,814 5,300,524,353 5,605,520,054 2,331,994,167 2,132,883,863 12,042,716 33,710,624 292,342,151 337,296,977 41,703 159,735,406 598,263,121 604,579,710 3,234,683,858 3,268,206,580 8,535,208,211 8,873,726,634 500,000,000 500,000,000 453,835,300 453,835,300 578,888,037 578,888,037 256,176,198 294,179,147 1,288,899,535 1,326,902,484 1,300,555,000 102,100,000 742,414,186 587,942,472 83,486,065 147,484,426 48,141,943 52,411,693 2,174,597,194 889,938,591 3,980,038,019 5,580,448,521 431,224,555 342,429,822 180,900,200 131,090,150 9,014,647 7,852,473 291,016,628 287,907,297 90,760,359 71,327,756 86,227,149 79,892,967 2,529,925 155,936,573 5,071,711,482 6,656,885,559 7,246,308,676 7,546,824,150 8,535,208,211 8,873,726,634 ts.	(Rupees) December 31, 2025 (Un-audited) June 30, 2025 (Audited) 4,584,446,592 4,736,612,650 569,097,022 736,741,555 64,522,375 72,962,862 945,331 1,825,173 81,513,033 57,377,814 5,300,524,353 5,605,520,054 2,331,994,167 2,132,883,863 12,042,716 33,710,624 292,342,151 337,296,977 41,703 159,735,406 598,263,121 604,579,710 3,234,683,858 3,268,206,580 8,535,208,211 8,873,726,634 500,000,000 500,000,000 453,835,300 453,835,300 578,888,037 578,888,037 256,176,198 294,179,147 1,288,899,535 1,326,902,484 1,300,555,000 102,100,000 742,414,186 587,942,472 83,486,065 147,484,426 48,141,943 52,411,693 2,174,597,194 889,938,591 3,980,038,019 5,580,448,521 431,224,555 342,429,822 180,900,200 131,090,150 9,014,647 7,852,473 291,016,628 287,907,297 90,760,359 71,327,756 86,227,149 79,892,967 2,529,925 155,936,573 5,071,711,482 6,656,885,559 7,246,308,676 7,546,824,150 8,535,208,211 8,873,726,634 ts.
		5,605,520,054
		2,132,883,863 33,710,624 337,296,977 159,735,406 604,579,710
		3,268,206,580
		8,873,726,634
		500,000,000
		453,835,300 578,888,037 294,179,147
		1,326,902,484
		102,100,000 587,942,472 147,484,426 52,411,693
		889,938,591
		5,580,448,521 342,429,822 131,090,150 7,852,473 287,907,297 71,327,756 79,892,967 155,936,573
		6,656,885,559
		7,546,824,150
		8,873,726,634

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

	Chief Executive SD	Director SD	Director SD	Chief Financial Officer SD
			For the period ended December 31, 2025 / 07

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

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Six months period ended December 31, 2025	Three months period ended December 31, 2025 Six months period ended December 31, 2024 Three months period ended December 31, 2025	Three months period ended December 31, 2025 Six months period ended December 31, 2024 Three months period ended December 31, 2025	Three months period ended December 31, 2025 Six months period ended December 31, 2024 Three months period ended December 31, 2025
	637,058,859 276,128,614 322,757,314 332,693,947 84,767,304 157,646,861 18,757,215 938 4,441,958 43,219,062 18,874,089 21,092,003 (Rupees)

545,231,905 185,489,262 1,108,422 33,318,311
765,147,900	1,031,729,083	379,770,945 505,938,136
(354,816,429) (130,752,484)	(554,974,641) (213,881,561)	(170,764,653) (59,929,757)	(256,033,132) (105,447,022)
(485,568,913) (768,856,202) (230,694,410) (361,480,154)
279,578,987	262,872,881	149,076,535 144,457,982
(1,489,174) (20,909,000)	2,263,481 (33,080,190)	35,629 (11,719,413)	1,089,925 (23,491,803)
(22,398,174) (30,816,709) (11,683,784) (22,401,878)
257,180,813	232,056,172	137,392,751 122,056,104
18,981,543 (143,414,610)	58,634,425 (139,350,134)	8,585,232 (71,982,232)	47,785,605 (71,321,264)
(124,433,067) (80,715,709) (63,397,000) (23,535,659)
132,747,746 151,340,463 73,995,751 98,520,445 (13,274,774) (15,134,046) (7,399,574) (9,852,044) (1,991,216) (2,270,107) (1,109,936) (1,583,447) (2,349,635) (2,678,726) (1,309,726) (1,741,699)
115,132,121 131,257,584 64,176,515 85,343,255 (277,106) (2,813,582) (235) (1,995,606)
114,855,015 128,444,002 64,176,280 83,347,649 (39,399,139) (35,482,778) (22,028,676) (24,902,444)
75,455,876 -	92,961,224 -	42,147,604 -	58,445,205 -
75,455,876	92,961,224	42,147,604	58,445,205
1.66	2.05	0.93	1.29

The annexed notes from 1 to 27 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 SIX MONTHS PERIOD ENDED DECEMBER 31, 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 8.1 Depreciation on ijarah assets Gain on disposal of ijarah assets ECL charge / (reversal) against ijarah rentals receivable - net 11 ECL charge against diminishing musharaka - net 5.3 Profit on bank balances Levy 20 Financial charges on - Return on redeemable capital expensed - Return on running musharaka 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 Sindh Workers' Welfare Fund - net (Increase) / decrease in assets Advances, deposits, prepayments and other receivables Ijarah rentals receivable Short term investments Diminishing musharaka Purchase of assets under Ijarah arrangements Proceeds from disposal of assets under Ijarah arrangements Increase / (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 7.1 Income 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 25 Cash and cash equivalents at the end of the period The annexed notes from 1 to 27 form an integral part of these condensed interim financial sta Note	December 31, 2025 December 31, 2024	December 31, 2025 December 31, 2024
	114,855,015 128,444,002 2,466,013 4,356,264 7,074,474 1,166,076 879,842 - 130,752,484 213,881,561 (7,281,594) (29,855,340) 1,489,174 (2,263,481) 20,909,000 33,080,190 (33,318,311) (43,219,062) 277,106 2,813,582 255,057,177 401,474,712 4,740,907 111,762,751 3,702,148 - 62,272,706 - 1,991,216 2,270,107 2,349,635 2,678,726 453,361,977 698,146,086 568,216,992 826,590,088 47,286,082 115,034,668 20,178,734 19,890,278 159,693,703 (794,326,979) (67,853,246) 196,811,347 (18,831,420) (365,371,371) 63,005,063 331,006,800 203,478,916 (496,955,257) 71,455,581 (44,395,756) - (4,645,531) (14,188,311) (18,372,919) 57,267,270 (67,414,206) 828,963,178 262,220,625 (304,150,700) (459,958,439) (90,607,191) (126,966,117) (394,757,891) (586,924,556) (44,378,861) (32,180,658) 389,826,426 (356,884,589) (1,100,000) (5,889,122) 30,987,055 49,025,379 29,887,055 43,136,257 (401,955,502) 859,570,000 (6,809,724) - 243,266,447 (10,803,736) (107,124,643) (87,776,716) (272,623,422) 760,989,548 147,090,059 447,241,216 448,643,137 329,627,579 595,733,196 776,868,795 tements. (Rupees)
		4,356,264 1,166,076 - 213,881,561 (29,855,340) (2,263,481) 33,080,190 (43,219,062) 2,813,582 401,474,712 111,762,751 - - 2,270,107 2,678,726
		698,146,086
		826,590,088
		115,034,668 19,890,278 (794,326,979) 196,811,347 (365,371,371) 331,006,800
		(496,955,257)
		(44,395,756) (4,645,531) (18,372,919)
		(67,414,206)
		262,220,625
		(459,958,439) (126,966,117)
		(586,924,556) (32,180,658)
		(356,884,589)
		(5,889,122) 49,025,379
		43,136,257
		859,570,000 - (10,803,736) (87,776,716)
		760,989,548
		447,241,216 329,627,579
		776,868,795

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

Chief Executive SD	Director SD	Director SD	SD
			Chief Financial Officer

For the period ended December 31, 2025 /

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2025

Issued, subscribed and paid-up certificate capital	Capital reserv	Capital reserv	e	Revenue reserve	Sub Total	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 ------------
- -	- -	- -	- -	92,961,224 -	92,961,224 -	92,961,224 -
- -	- -	- -	- -	92,961,224 (90,767,060)	92,961,224 (90,767,060)	92,961,224 (90,767,060)
453,835,300	55,384,700	523,503,337	578,888,037	213,063,526	791,951,563	1,245,786,863

453,835,300	55,384,700	523,503,337	578,888,037	294,179,147	873,067,184	1,326,902,484
- -	- -	- -	- -	75,455,876 -	75,455,876 -	75,455,876 -
- -	- -	- -	- -	75,455,876 (113,458,825)	75,455,876 (113,458,825)	75,455,876 (113,458,825)
453,835,300	55,384,700	523,503,337	578,888,037	256,176,198	835,064,235	1,288,899,535

The annexed notes from 1 to 27 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 SIX MONTHS PERIOD ENDED DECEMBER 31, 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 accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

International Accounting Standard (IAS) 34, 'Interim Financial Reporting', issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;
Requirements of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, Modaraba Companies and Modaraba Rules, 1981 and Modaraba Regulations, 2021;
Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act 2017; and

For the period ended December 31, 2025 / 11

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. However, a limited scope review has been performed by the external auditors in accordance with the requirements of the Code of Corporate Governance.

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.

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3.2 The preparation of these condensed interim financial statements in conformity with the accounting and reporting 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 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 January 01, 2026 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.

For the period ended December 31, 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 Accrued profit on diminishing musharaka 5.4 Less: ECL Allowance in respect of diminishing musharaka 5.5 & 5.9 Note	16,639,422 18,181,799 21,919,131 10,710,900 927,455 1,154,063 December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~	16,639,422 18,181,799 21,919,131 10,710,900 927,455 1,154,063 December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~
	39,486,008 30,046,762
	290,898,188 3,552,363,292 2,923,724,451	308,362,179 3,241,336,652 3,154,647,116
	6,766,985,931	6,704,345,947
	4,373,768 16,818,338 154,552,485	4,373,768 16,880,285 155,253,307
	175,744,591 55,875,572 (121,651,343)	176,507,360 59,338,787 (100,742,343)
	6,876,954,751 6,839,449,751
	6,916,440,759 6,869,496,513

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 11.64% (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 musharaka facility availed by key management personnel as per employment terms, with respect to housing finance, motor vehicles and personal finance amounting to Rs. 1.08 million (June 30, 2025: Rs. 2.22 million), Rs. 10.14 million (June 30, 2025: Rs 3.40 million) and Rs. 0.19 million (June 30, 2025: Rs. 0.30 million) respectively. These are secured against diminishing musharaka assets.

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5.2 Reconciliation of carrying amount of finance provided to employees and officers under diminishing musharaka arrangement Opening balance Disbursements during the period Net movement from prepaid Unwinding of staff finances Transfer of resigned staff Receipts during the year Closing balance	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 30,046,762 55,087,309 18,736,000 4,245,000 (1,778,981) 32,591,616 3,407,755 7,351,607 (6,672,691) (58,171,881) (4,252,837) (11,056,889)
	39,486,008 30,046,762

Disbursements during the period Net movement from prepaid Unwinding of staff finances Transfer of resigned staff Receipts during the year Closing balance	18,736,000 4,245,000 (1,778,981) 32,591,616 3,407,755 7,351,607 (6,672,691) (58,171,881) (4,252,837) (11,056,889) 39,486,008 30,046,762
5.3 Movement in ECL allowance against diminishing musharaka Opening balance Provision / (reversal) for the period / year - net Closing balance	100,742,343 57,586,643 20,909,000 43,155,700
	121,651,343 100,742,343

5.4 During the current period, the modaraba reclassified accrued profit from 'Advances, deposits, prepayments and other receivables' for better presentation in compliance with the requirement of IFRS-09, "Financial Instruments", effective interest rate (EIR) method.

5.5 Break-up of diminishing musharaka between long-term and current portion Current portion of diminishing musharaka Less: provision held Long-term portion of diminishing musharaka Less: provision held	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 2,381,834,363 2,182,871,635 (49,840,196) (49,987,772)
	2,331,994,167 2,132,883,863
	4,656,257,739 4,787,367,221 (71,811,147) (50,754,571)
	4,584,446,592 4,736,612,650

5.6 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.
5.7 Diminishing musharaka includes Rs 175.74 million (June 30, 2025: Rs 176.51 million) which have been placed under non-performing status.
5.8 Diminishing musharaka (other than staff finances) carries profit at the rates ranging from 12.38% to 17.18% (June 30, 2025: 12.81% to 26.19%) per annum.
5.9 The following table sets out information about the Expected Credit Losses (ECL) provision of diminishing musharaka financing:

For the period ended December 31, 2025 / 15

December 31, 2025	December 31, 2025	June 30, 2025
Expected Credit Loss Allowance Drawn Exposure (EAD)		Expected Credit Loss Allowance Drawn Exposure (EAD)
~~(~~Rupees	~~)~~	6,397,234,623 4,476,308 460,427,436 6,117,442 176,507,360 90,148,593 ~~(~~Rupees~~)~~

6,423,963,636 502,752,142 175,744,591	2,409,004 4,430,415 114,811,924
7,102,460,369	121,651,343	7,034,169,419 100,742,343

5.10 An analysis of change in ECL provision in relation to diminishing musharaka financing is, as follows:

December 31, 2025	December 31, 2025	December 31, 2025
Total Stage 3 Stage2 Stage 1
~~(~~Rupees~~)~~
4,476,308 6,117,442 90,148,593 100,742,343 (2,067,304) (1,687,027) 24,663,331 20,909,000
2,409,004	4,430,415	114,811,924 121,651,343

	Decemb	er 31, 2024
Stage 1	Stage2	Total Stage 3
3,283,926 2,622,366	5,929,517 48,373,200 57,586,643 (1,191,202) 31,649,026 33,080,190 ~~(~~Rupees~~)~~
5,906,292	4,738,315	80,022,226 90,666,833

5.11 Particulars of credit loss allowance - diminishing musharaka financing

December 31, 2025	December 31, 2025	December 31, 2025	December 31, 2025
Total Stage 3 Stage2 Stage 1
~~(~~Rupees~~)~~
4,476,308 6,117,442 90,148,593 100,742,343
(3,967,603) 2,654,710 (754,411) -	213,272 (2,654,710) 754,411 -	24,663,331 - - -	20,909,000 - - -

2,409,004	4,430,415	114,811,924 121,651,343

	Decemb	er 31, 2024
Stage 1	Stage2	Total Stage 3
3,283,926	5,929,517 48,373,200 57,586,643 ~~(~~Rupees~~)~~
3,251,785 120,920 (750,339) -	(569,686) (120,920) 750,339 (1,250,935)	30,398,091 - - 1,250,935	33,080,190 - - -

5,906,292	4,738,315	80,022,226 90,666,833

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6 IJARAH ASSETS Cost Accumulated depreciation Impairment against ijarah assets Net book value 6.1 & 6.2 Note	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 1,547,736,773 1,711,367,184 (964,355,796) (960,341,674) (14,283,955) (14,283,955)
	569,097,022 736,741,555

6.1 Assets under ijarah arrangements

During the six months period ended December 31, 2025, additions amounting to Rs. 18.83 million (December 31, 2024: Rs. 365.37 million) and disposals amounting to Rs. 182.46 million (December 31, 2024: Rs. 735.92 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	December 31, 2025 (Un-audited) December 31, 2024 (Audited) ~~(~~Rupees~~)~~ 18,831,420 365,371,371
	172,451,831 696,290,221 10,010,000 39,626,500
	182,461,831 735,916,721

6.2 The Modaraba has entered into various ijarah agreements for periods ranging from 1.5 to 6 years (June 30, 2025: 1.5 to 6 years). Security deposits ranging between 0% to 43% (June 30, 2025: 0% to 43%) are obtained at the time of disbursement. The rate of profit implicit in ijarah finance ranges between 12.90% to 15.69% (June 30, 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.

6.4 Ijarah includes Rs. 76.60 million (June 30, 2025: Rs. 102.28 million) which has been placed under non-performing status.

7 PROPERTY AND EQUIPMENT Own use 7.1 Right-of-use asset 7.1 Note	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 11,684,856 13,050,869 52,837,519 59,911,993
	64,522,375 72,962,862

For the period ended December 31, 2025 / 17

7.1 The following is a statement of property and equipment:

Ow	n use Right-of-use assets	n use Right-of-use assets
Additions	Disposals Additions Disposals
	~~(~~Rupees~~)~~
1,100,000	-	- -
1,100,000	-	- -

Ow	n use	Right-of-use assets
Additions	Disposals	Disposals Additions
- 4,999,442	- 53,017,401 - - - - ~~(~~Rupees~~)~~
4,999,442	-	53,017,401 -

7.2 During the six months period ended December 31, 2024, the Modaraba has accounted for lease arrangements pertaining to its offices under IFRS 16 and recorded right of use asset and lease liabilities in the financial statements. The lease term is for a period of five years with quarterly payments subject to annual increment at an agreed rate.

8 INTANGIBLE ASSETS Software 8.1 8.1 Statement of Intangible assets Opening balance Cost Accumulated amortisation Net book value Additions during the period / year Disposals Cost Accumulated amortisation Amortisation charge for the period / year Closing net book value Amortisation rate (% per annum) Closing balance Cost Accumulated amortisation Net book value Note	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 945,331 1,825,173	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 945,331 1,825,173
	37,471,030 37,243,330 (35,645,857) (33,474,393)
	1,825,173 3,768,937 - 227,700
	- -	- -
	- (879,842) (2,171,464)
	945,331 1,825,173
	33.33% 33.33% 37,471,030 37,471,030 (36,525,699) (35,645,857)
	945,331 1,825,173

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8.2 During the period, the Modaraba acquired software amounting to Rs. Nil (December 31, 2024: Rs. 227,700).

9 DEFERRED TAX ASSETS Deferred tax assets 9.1 Note	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 81,513,033 57,377,814

9.1 Movement in temporary differences during the period:

As at July 01, 2025 Recognised in P&L Recognised in OCI As at December 31, 2025	As at July 01, 2025 Recognised in P&L Recognised in OCI As at December 31, 2025	As at July 01, 2025 Recognised in P&L Recognised in OCI As at December 31, 2025	As at July 01, 2025 Recognised in P&L Recognised in OCI As at December 31, 2025
~~(~~Rupees~~)~~
23,855,707 3,577,083 2,688,441 1,893,788 17,849,707 5,772,915 4,059,722	14,510,815 (94,317) (199,842) 2,440,694 7,727,370 880,613 746,282	- - - - - -	38,366,522 3,482,766 2,488,599 4,334,482 25,577,077 6,653,528 4,806,004
59,697,363 26,011,615 - 85,708,978
(541,976) (1,777,573) -	- (1,072,112) (804,284)	- - -	(541,976) (2,849,685) (804,284)
(2,319,549) (1,876,396) - (4,195,945)
57,377,814	24,135,219	- 81,513,033

10 CASH AND BANK BALANCES Balances with banks - in current accounts - in deposit accounts 10.1 & 10.2 Balance with the State Bank of Pakistan Cash in hand Note	5,022,674 14,144,315 592,659,788 589,909,805 597,682,462 604,054,120 280,659 338,893 300,000 186,697 December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~
	598,263,121 604,579,710

10.1 These carry profit at the rates ranging from 3.5% to 10.55% (June 30, 2025: 5% to 19%) per annum.

For the period ended December 31, 2025 / 19

10.2 The balances held with banks in saving accounts and investment in mutual funds 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 Musharaka issued by the Modaraba.

11 IJARAH RENTALS RECEIVABLE Ijarah rentals receivable - considered good Ijarah rentals receivable - considered bad or doubtful 11.3 Less: allowance for ECL on ijarah rentals receivable 11.1 11.1 Allowance for ECL on ijarah rentals receivable Opening balance Charge for the period Closing balance Note	28,315,702 41,025,963 48,710,964 56,179,437 December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~
	77,026,666 97,205,400 (64,983,950) (63,494,776)
	12,042,716 33,710,624
	63,494,776 54,159,836 1,489,174 9,334,940 December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~
	64,983,950 63,494,776

11.2 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.
11.3 The following table sets out information about the Expected Credit Loss (ECL) allowance on ijarah rentals receivable:

December 31, 2025	December 31, 2025	December 31, 2025	June 30, 2025
Expected Credit Loss Allowance Drawn Exposure (EAD)			Expected Credit Loss Allowance Drawn Exposure (EAD)
~~(~~Rupees		~~)~~	519,124,456 279,548 46,139,020 208,320 102,282,812 77,290,863 ~~(~~Rupees~~)~~

273,182,717 116,681,624 87,461,591		99,921 2,566,826 76,601,158
477,325,932 -	79,267,905 667,546,288 77,778,731 (14,283,955) -(14,283,955)
477,325,932	64,983,950		667,546,288 63,494,776

11.3.1 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 December 31, 2025.

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11.4 An analysis of change in allowance for ECL in relation to ijarah financing is as follows:

December 31, 2025	December 31, 2025	December 31, 2025
Stage 1 Total Stage 3 Stage2
~~(~~Rupees~~)~~
279,548 208,320 (179,627) 2,358,506		77,290,863 77,778,731 (689,705) 1,489,174
99,921	2,566,826	76,601,158 79,267,905

	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

	Decemb	er 31, 2024
Stage 1	Stage2	Total Stage 3
616,798 - 83,494,934 84,111,732 (454,571) 1,150,107 (1,134,776) (439,240) ~~(~~Rupees~~)~~
162,227	1,150,107	82,360,158 83,672,492

11.5 Particulars of credit loss allowance - Ijarah rental receivable

December 31, 2025	December 31, 2025	December 31, 2025	December 31, 2025
Stage 1 Total Stage 3 Stage2
~~(~~Rupees~~)~~
279,548 208,320		77,290,863 77,778,731
(41,254) - (138,373) -	2,220,133 - 138,373 -	(689,705) - - -	1,489,174 - - -

99,921	2,566,826	76,601,158 79,267,905

	Decemb	er 31, 2024
Stage 1	Stage2	Total Stage 3
616,798	- 83,494,934 84,111,732 ~~(~~Rupees~~)~~
(339,257) 96,194 (211,508) -	1,034,793 (96,194) 211,508 -	(1,134,776) - - -	(439,240) - - -

162,227	1,150,107	82,360,158 83,672,492

11.6 Other income includes terminations of ijarah leases which had resulted in gain on termination amounting to Rs. 6.96 million (December 31, 2024: Rs. 29.85 million)

For the period ended December 31, 2025 / 21

Note 12 SHORT-TERM INVESTMENT At fair value through profit or loss Investment in mutual funds 10.2 13 TERM FINANCE ARRANGEMENTS Musharaka / Wakala finance 13.1, 13.2 & 13.3 Profit payable on term finance arrangements 13.4 Less: current portion of term finance arrangements Long-term portion of term finance arrangements	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 41,703 159,735,406
	1,152,938,925 906,778,716 20,699,816 23,593,578 (431,224,555) (342,429,822)
	742,414,186 587,942,472

13.1 Musharaka / Wakala Finance

Name of bank	Facility limit	Facility limit	Profit rate (%)	Profit rate (%)	Tenor	Tenor	Balance Outstanding	Balance Outstanding
	As at December 31, 2025 (Un-audited)	As at June 30, 2025 (Audited)	During the period ended December 31, 2025	During the Year ended June 30 2025 (Audited)	December 31, 2025 (Un-audited)	June 30, 2025 (Audited)	As at December 31, 2025 (Un-audited)	As at June 30, 2025 (Audited)
Al Baraka Bank (Pakistan) Limited Allied Bank Limited Pakistan Mortgage Refinance Company Limited Meezan Bank Limited Habib Metropolitan Bank Limited	(Rupees) 281,250,000 300,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 500,000,000 400,000,000 -		11.56-11.65 - Quarterly 11.60-11.65 21.22-22.45 Quarterly 9.52 12.08-21.76 Quarterly 11.56-12.14 21.77-22.77 Quarterly 11.52 - Quarterly 0		5 years 5 years 3-5 years 3-5 years 5 years 5 years 5 years 5 years 5 years -		(Rupees) 281,250,000 300,000,000 234,938,925 295,528,720 18,000,000 30,000,000 218,750,000 281,249,996 400,000,000 -
							281,250,000 234,938,925 18,000,000 218,750,000 400,000,000
	2,181,250,000 1,800,000,00						1,152,938,925	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.

13.2 These carry profit at the rates ranging from 9.52% to 12.14% (June 30, 2025: 12.08% to 22.77%) per annum.
13.3 The Modaraba has obtained long term finances under Wakala finance arrangements from financial institution with carrying amount of Rs. 1,153 million (June 30, 2025: Rs. 907 million). The Modaraba has complied with covenants during the period ended December 31, 2025 and expects to comply for at least 12 months after the reporting date.
13.4 During the current period, the modaraba reclassified accrued profit from 'Accrued and other liabilities' for better presentation in compliance with the requirement of IFRS-09, "Financial Instruments", effective interest rate (EIR) method.

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Note 14 REDEEMABLE CAPITAL - PARTICIPATORY AND UNSECURED Certificates of musharakah (COM) 14.1 & 14.1.1 Profit payable on COM 14.3 Less: current portion of redeemable capital 14.2	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 5,228,710,000 5,633,455,000 51,883,019 49,093,521
	5,280,593,019 5,682,548,521 (3,980,038,019) (5,580,448,521)
	1,300,555,000 102,100,000

14.1 These carry estimated share of profit ranging between 0% to 10.55% per annum (June 30, 2025: 0% to 11.55% per annum) and are due to mature latest by December 18, 2030 (June 30, 2025: June 30, 2030 ).
14.1.1 This includes COM issued to key management personnel amounting to Rs. 33.55 million (June 30, 2025: Rs. 33.65 million) at the rate ranging from 0% to 10.35% (June 30, 2025: 0% to 21.05%) per annum.

Note 14.2 Current portion of redeemable capital Current portion of certificates of musharakah Profit payable on COM Payable to holders of matured certificates of musharakah 14.2.1	December 31, 2025 (Un-audited) June 30, 2025 (Audited) ~~(~~Rupees~~)~~ 3,663,650,000 5,394,650,000 51,883,019 49,093,521 264,505,000 136,705,000
	3,980,038,019 5,580,448,521

14.2.1 These represent amounts with respect to already matured certificates against which respective customer's request for encashment along with original certificates are pending
14.3 During the current period, the modaraba reclassified accrued profit from 'Accrued and other liabilities' for better presentation in compliance with the requirement of IFRS-09, "Financial Instruments", effective interest rate (EIR) method.

15 CONTINGENCIES AND COMMITMENTS

15.1 Contingencies

There were no contingencies outstanding as at December 31, 2025 and June 30, 2025.

15.2 Commitments

The Modaraba has issued letter of comfort to Askari Bank Limited on behalf of M/s. Hussain Can Company (Pvt.) Limited amounting to Rs. 39.76 million (June 30, 2025: Sindh Bank Limited on behalf of M/s. AIMS Hosiery Limited & M/s. Demont Research Laboratories (Pvt.) Limited as 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 musharaka or ijarah arrangements.

For the period ended December 31, 2025 / 23

16

FINANCIAL AND OTHER CHARGES Return on redeemable capital expensed Return on term finance arrangements expensed Return on running musharaka expensed Commission Unwinding of security deposits Amortisation of lease liability against right-of-use assets Bank charges	Six months period ended December 31, 2025 2024 (Un-audited) ~~(~~Rupees~~)~~ 255,057,177 401,474,712 62,272,706 111,762,751 4,740,907 - 22,022,242 23,045,558 6,522,890 18,438,677 3,702,148 - 498,359 252,943
	354,816,429 554,974,641

17 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 six months period ended December 31, 2025 has been recognised at 10% (June 30, 2025: 10%) of the profit before levy and taxation for the period before charging such remuneration.

18 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.

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 complaint 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.

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19 PROVISION FOR SINDH 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 period, 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 December 31, 2025 in these financial statements on a prudent basis. During the year ended June 30, 2025, 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.

in Supreme Court of Pakistan.
Note 20 LEVY AND TAXATION Levy - final tax 20.1 Taxation - Current - Deferred	Six months period ended December 31, 2025 2024 (Un-audited) ~~(~~Rupees~~)~~ 277,106 2,813,582
	63,534,358 42,491,246 (24,135,219) (7,008,468)
	39,399,139 35,482,778

20.1 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.

21 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 December 31, 2025 and December 31, 2024 which would have any effect on the earnings per certificate if the option to convert is exercised.

For the period ended December 31, 2025 / 25

22 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS / RELATED PARTIES

Parties which are related to the Modaraba as per the requirements of in pursuit of IAS 24 'Related Party Disclosures' and includes 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.

22.1 Transactions with related parties other than those which have been specifically disclosed elsewhere in these financial statements and remuneration and benefits to key management personnel (which are employed by the management company) under the terms of their employment are as follows:

Name	Nature of relationship	Nature of transaction	Six months period ended December 31
OLP Financial Services Pakistan Limited OLP Services Pakistan (Private) Limited The Patients' Behbud Society for AKU Layton Rahmatulla Benevolent Trust Hospital OLP Modaraba - Staff Provident Fund Mr. Shaheen Amin Mr. Nadim D. Khan Key management personnel OLP Modaraba - Staff defined contribution	Holding Company of the 100% Holding in the Management Company Management Company, 10% Holding in the Modaraba Management Company 10% Holding in the Modaraba Associated undertaking Common directorship Trustee of associate undertaking Retirement benefit fund Employees benefit fund Chief Executive Officer of Chief Executive Officer of Holding Company of the Holding Company of the Management Company Management Company Director of the Director of the Management Company Management Company Employees Members of the Management Committee Retirement benefit fund Employees benefit fund Associated undertaking	Dividend Allocated cost to the Modaraba for Islamabad Office Management Company's remuneration Dividend Rent expense Financial charges Depreciation expense Rent paid Donation paid by the Modaraba Contribution made by the Modaraba Contribution made by the Modaraba Refund received by the Modaraba Dividend paid Dividend paid Salaries and benefits Contributions to the staff provident fund Donation paid by the Modaraba	2025 2024 11,345,883 9,076,706 -------(Rupees)-------- (Un-audited)
			400,623 358,691
			13,274,774 15,134,046
			11,345,883 9,076,706
			- -
			2,890,845 -
			5,471,608 -
			6,014,000 5,467,272
			1,000,000 2,000,000
			1,000,000 2,000,000
			3,312,751 3,593,899
			2,759,513 2,981,623
			75,629 1,103,221
			250,000 200,000
			15,123 12,098
			23,624,148 30,775,267
			882,006 1,122,964

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Name	Nature of relationship	Basis of relationship	Nature of transaction	Six months period ended December 31
			Redemption of Certificates of musharaka Financial charges on redeemable capital Number of persons Contributions to the staff defined contribution scheme Refund received from OLP Income earned on diminishing musharaka finances Deposit against Certificates of musharaka	2025 2024 (Un-audited) -------(Rupees)-------- 734,760 935,427
				- 471,461
				870,479 2,085,903
				45,550,000 17,250,000
				45,550,000 17,450,000
				1,599,148 3,670,625
				7 7

22.2 Balances with related parties other than those which have been specifically disclosed elsewhere in these financial statements are as follows:

Name	Nature of relationship	Basis of relationship Nature of transaction	-------(Rupees)-------- December 31, June 30, 2025 2025 (Un-audited) (Audited) 45,383,530 45,383,530
OLP Financial Services Pakistan Limited OLP Services Pakistan (Private)Limited Mr. Shaheen Amin Mr. Nadim D Khan Key management personnel	Holding Company of th Management Company Management Compan Chief Executive Officer o Holding Company of th Management Compan Director of the Management Compan Employees	e 100% Holding in the Management Company, Certificate capital [Certificates held: 4,538,353 (June 30, 2025: 4,538,353)] 10% Holding in the Modaraba 10% Holding in the Modaraba Allocated cost to the Modaraba for Islamabad Office y Management Company's remuneration payable Payable for reimbursement of expenses incurred by Management Company f Chief Executive Officer of e Holding Company of the y Management Company Director of the y Management Company Members of the House finance Management Committee Personal finance Car finance Accrued profit on finances under diminishing musharaka Deposit against Certificates of musharaka Profit payable on Certificates of musharaka Certificate capital [Certificates held: 100,000 (June 30, 2025: 100,000)] Certificate capital [Certificates held: 6,049 (June 30, 2025: 6,049)] Certificate capital [Certificates held: 4,538,353 (June 30, 2025: 4,538,353 )]
			400,623 -
			45,383,530 45,383,530
			13,274,774 29,103,352
			3,201,000 -
			1,000,000 1,000,000
			60,490 60,490
			2,003,535 2,224,824
			190,376 345,633
			7,552,123 3,535,366
			6,330 22,725
			33,650,000 33,650,000
			496,331 3,721,000

For the period ended December 31, 2025 / 25

23 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.

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.

23.1 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 December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)	As at December 31, 2025(Un-audited)
Carrying value					Fair value
Fair value through profit or loss	Financial assets at FVOCI	Fair value through OCI	Amortised cost	Total	Level 1	Level 2	Level 3	Total
-------------------------------------------- (Rupees) -					-------------------------------------------
41,703 - - - 41,703					41,703 - - 41,703
41,703 - - - 41,703 - - - 6,916,440,759 6,916,440,759 - - - 598,263,121 598,263,121 - - - 7,582,384 7,582,384 - - - 12,042,716 12,042,716					- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - 7,534,328,980 7,534,328,980
41,703 - - 7,534,328,980 7,534,370,683
- - - 5,280,593,019 5,280,593,019 - - - 1,173,638,741 1,173,638,741 - - - 264,386,265 264,386,265 - - 216,860,601 216,860,601 - - - 2,529,925 2,529,925 57,156,590 57,156,590 - - 86,227,149 86,227,149
- - - 7,081,392,290 7,081,392,290

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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)	As at June 30, 2025(Audited)
Carryingvalue					Fair value
Fair value through profit or loss	Financial assets at FVOCI	Fair value through OCI	Amortised cost	Total	Level 1	Level 2	Level 3	Total
-------------------------------------------- (Rupees) - 159,735,406 - - - 159,735,406					------------------------------------------- 159,735,406 - - 159,735,406
159,735,406 - - - 159,735,406 - - - 6,869,496,513 6,869,496,513 - - - 604,579,710 604,579,710 - - - 138,672,900 138,672,900 - - - 33,710,624 33,710,624					- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - 7,646,459,747 7,646,459,747
159,735,406 - - 7,646,459,747 7,806,195,153
- - - 5,682,548,521 5,682,548,521 - - - 906,778,716 906,778,716 - - - 278,574,576 278,574,576 - - - 296,715,793 296,715,793 - - - 155,936,573 155,936,573 - - - 79,892,967 79,892,967
- - - 7,400,447,146 7,400,447,146

*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.

Valuation techniques used in determination of fair values:

Item	Valuation approach and input used	Valuation approach and input used
Mutual Funds	The valuation has been de values declared by Mutual (MUFAP).	termined based on Net asset Funds Association of Pakistan
There are no significant changes in business or economic circ the entity's financial assets and financial liabilities whether		umstances that affect the FV of those assets or liabilities are

23.2 There are no significant changes in business or economic circumstances that affect the FV of the entity's financial assets and financial liabilities whether those assets or liabilities are recognized at FV or amortised cost.

24 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.

For the period ended December 31, 2025 / 25

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 December 31, 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.

25 CASH AND CASH EQUIVALENTS

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

Cash and bank balances Less: Running musharaka Cash and cash equivalents	Six months period ended December 31, 2025 2024 (Un-audited) ~~(~~Rupees~~)~~ 598,263,121 776,868,795 (2,529,925) -
	595,733,196 776,868,795

26 GENERAL

Figures in these condensed interim financial statements for the quarters ended December 31, 2025 and December 31, 2024 have not been subjected to limited scope review of the auditors.

27 DATE OF AUTHORISATION

These condensed interim financial statements were authorised for issue on ____ by the Board of Directors of the Management Company.

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

Director Director Chief Executive SD SD SD	SD
	Chief Financial Officer

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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 2026

72267_rns_2026-02-27_fd954c12-f2a6-401a-9fe6-ca41eda28532.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 December 31, 2025

1. Economic Outlook

2. Financial Highlights

3. Review of Operations

4. Credit Rating

5. Acknowledgement

Karachi: February 17, 2026

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

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

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

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

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

4 FINANCIAL RISK MANAGEMENT

13.1 Musharaka / Wakala Finance

15 CONTINGENCIES AND COMMITMENTS

15.1 Contingencies

15.2 Commitments

16

17 MANAGEMENT COMPANY'S REMUNERATION

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

19 PROVISION FOR SINDH WORKERS' WELFARE FUND

21 EARNINGS PER CERTIFICATE - BASIC AND DILUTED

22 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS / RELATED PARTIES

23 FAIR VALUE OF FINANCIAL INSTRUMENTS

23.1 Fair value hierarchy

24 SEGMENT INFORMATION

25 CASH AND CASH EQUIVALENTS

26 GENERAL

27 DATE OF AUTHORISATION

Lahore Office:

Islamabad Office:

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OLP Modaraba Interim / Quarterly Report 2026