Quarterly Report March 31, 2024

Financial Report for the Quarter ended March 31, 2024

 TABLE OF CONTENTS

Contents

Company Information

Directors’ Review Report

Condensed Interim Statement of Financial Position

Condensed Interim Statement of profit or Loss and Other Comprehensive Income

Condensed Interim statement of Cash Flows

Condensed Interim statement of Changes in Equity

Notes to the Condensed Interim Financial Statements

Financial Report for the Quarter ended March 31, 2024

 CORPORATE INFORMATION

BOARD OF DIRECTORS
Mrs. Shazia Agha Chairperson, Non-Executive Director
Mr. Hussain Iqbal Agha Chief Executive Officer
Mr. Raza Agha Executive Director
Mr. Asif Ahmad Non-Executive Director
Mr. Muhammad Shahid Non-Executive Director
Mr. Muhammad Asif Independent Director
Mr. Saeed Mirza Independent Director

AUDIT COMMITTEE
Mr. Saeed Mirza Chairman
Mr. Asif Ahmad Member
Mr. Muhammad Asif Member

HUMAN RESOURCE & RUMENERATION COMMITTEE

Mrs. Shazia Agha Chairperson
Mr. Muhammad Shahid Member
Mr. Raza Agha Member

CHIEF FINANCIAL OFFICER

Mr. Kamran Ahmed

COMPANY SECRETARY
Mr. Muhammad Muneeb Khan

HEAD OF INTERNAL AUDIT

Mr. Umar Irshad

EXTERNAL AUDITORS
Reanda Haroon Zakaria & Company Chartered Accountants
Progressive Plaza, Baumont Road, Karachi, Pakistan

Financial Report for the Quarter ended March 31, 2024

SHARE REGISTRAR
CDC Share Registrar Services Limited
CDC House, Main Shahrah-e-Faisal, Karachi, Pakistan

LEGAL ADVISOR
Asad Mehmood
Uni Shopping Center, Abdullah Haroon Road, Karachi, Pakistan

BANKERS
 Bank Al Habib Limited   Faysal Bank Limited
 Askari Bank Limited  Habib Metro Bank Limited
 Habib Bank Limited  MCB Islamic Bank Limited
 Bank Al Falah Limited  MCB Bank Limited
 Meezan Bank Limited  Dubai Islamic Bank Limited
 Bank Islami Pakistan Limited  The Bank of Khyber
 United Bank Limited   National Bank of Pakistan
 JS Bank Limited  Allied Islamic Bank Limited
 Samba Bank Limited  Bank of Punjab
 Soneri Bank Limited

REGSITERED OFFICE
Plot No. N.W.I.Z/1/P-133, (SP-6), D-2, Port Qasim Authority, Karachi, Pakistan
PTCL# 021-34156219-21

CORPORATE OFFICE
Office 801 & 804, 8th Floor, Emerald Tower, G-19
II Talwar, Block 5, Clifton, Karachi, Pakistan
UAN # 021-111-111-2442
[email protected]

SYMBOL AT PAKISTAN STOCK EXCHANGE

AGHA

WEBSITE INFORMATION
www.aghasteel.com

Financial Report for the Quarter ended March 31, 2024

 DIRECTORS’ REVIEW REPORT

The Directors of your Company are pleased to present the Financial Statements for the Third
Quarter ended March 31, 2024.

MACRO-ECONOMIC CHALLENGES
The Economy faced significant challenges in the third quarter of FY 2024, with high inflation and
widening fiscal deficit. However, positive developments including IMF funding, improved exports,
and rising foreign exchange reserves offered the potential for a rebound in 2024. The government's
continued commitment to energy, fiscal, and external sector reforms is anticipated, yet potential
fiscal slippages and delayed reforms pose substantial risks. While economic stabilization is expected
in the later stages 2024, the pace of recovery hinges on the successful implementation of planned
reforms and sustained external funding assurances.

MANAGEMENT'S RESPONSE
The management is actively engaged in a thorough review of our operations, aiming to identify areas
for improvement and implement strategic adjustments to address the issues contributing to the
current loss. Our focus is on stabilizing operations, optimizing costs, and exploring avenues for
recovery.

FINANCIAL PERFORMANCE
Your Company showed a decline in revenue during the current period, the Company recorded net
sales revenue of Rs. 2,647 million during the 03rd Quarter as compared to Rs. 5,689 million in the
corresponding period. The gross loss stood at Rs. (585) million as compared to gross profit of Rs.
1,373 million in the corresponding period. . The Net loss after tax stood at Rs. (1,815) million as
compared to net profit after tax of Rs. 303 million in the corresponding period.

Key financial highlights of the company is as follows:

Nine Months Nine Months Three Months Three Months

ended ended ended March ended March 31,
March 31, 2024 March 31, 2023 31, 2024 2023
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

(Rs. in million)

Financial Report for the Quarter ended March 31, 2024

Sales - net 11,991 15,452 2,647 5,689

Gross Profit/(Loss) 1,224 3,620 (585) 1,373

Operating Profit/(Loss) (2,648) 772 (2,098) 379

Profit /(Loss) before

(2,100) 356
tax (2,620) 969

Profit/(Loss) after tax (2,034) 705 (1,815) 303

Earnings per share

Basic (in Rupees) (3.36) 1.17 (3.00) 0.50
Diluted (in Rupees) (3.36) 1.17 (3.00) 0.50

EARNINGS PER SHARE

Basic and Diluted Earnings per share for the period ended March 31st, 2024 was Rs. (3.00) as
compared with Rs. 0.50 per share in the corresponding period.

FUTURE PROSPECTS
Our strategic initiatives include a comprehensive review of our product offerings, exploring
partnerships and collaborations, and adopting innovative technologies to enhance our operational
efficiency. We are also evaluating market trends and customer preferences to align our offerings with
the evolving demands of the industry.

ACKNOWLEDGEMENT
The Board would like to place on record the all stakeholders, Securities and Exchange Commission of
Pakistan, Pakistan Stock Exchange, State Bank of Pakistan, banks/financial Institutions, especially its
customers as well as the vendors and suppliers, for their continued commitment and support to the
Company. The Board would also like to thank all staff members of the Company in performing their
tasks with diligence and commitment.

Financial Report for the Quarter ended March 31, 2024

 FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

________________ __________________
Hussain Iqbal Agha Raza Iqbal Agha
Chief Executive Officer Director

Karachi: April 29, 2024

Financial Report for the Quarter ended March 31, 2024

 AGHA STEEL INDUSTRIES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2024

March 31 June 30
2024 2023
(Un-audited) (Audited)
ASSETS - - - - Rupees in '000'- - - -

Non-Current Assets
Property, plant and equipment 6 22,590,018 21,277,380
Intangible asset 39,250 42,390
Long term deposits and receivable 7 414,967 449,463
23,044,235 21,769,233
Current Assets
Stores, spare parts and loose tools 2,904,197 2,360,897
Stock-in-trade 8 4,821,751 10,439,863
Trade and other receivables 9 5,880,536 4,948,795
Loans and advances 10 2,354,153 1,815,346
Deposits 12,500 17,632
Tax refunds due from Government 588,966 540,924
Cash and bank balances 388,412 87,295
16,950,515 20,210,752
Total Assets 39,994,750 41,979,985

EQUITY AND LIABILITIES

Share Capital and Reserves
Authorized Capital 11 9,250,000 6,250,000

Share Capital
Issued, subscribed and paid up capital 6,048,791 6,048,791

Capital reserve 2,126,687 2,126,687

Revenue Reserve
Unappropriated profit 6,360,770 8,394,972
Total Shareholders' Equity 14,536,248 16,570,450
Non-Current Liabilities
Long term borrowings 12 7,735,001 4,223,940
Advance against preference shares 13 750,000 500,000
Lease liabilities 90,237 108,721
Deferred liability 249,971 1,063,819
8,825,209 5,896,480
Current Liabilities
Trade and other payables 14 639,688 829,386
Accrued markup 1,524,497 807,704
Short term borrowings 15 14,243,421 13,728,859
Current portion of non-current liabilities 16 225,687 4,147,106
16,633,293 19,513,055
Contingencies and Commitments 17
Total Capital and Liabilities 39,994,750 41,979,985

The annexed notes from 1 to 22 form an integral part of this condensed interim financial statements.

___________________ ______________________ ___________________

Chief Executive Chief Financial Officer Director
 AGHA STEEL INDUSTRIES LIMITED
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2024

Nine Months Quarter Ended

March 31, March 31,
2024 2023 2024 2023
Note - - - - - - - - - - - (Rupees in '000') - - - - - - - - - - -

Turnover - gross 14,149,923 18,107,187 3,147,760 6,684,370

Sales tax (2,158,463) (2,655,167) (500,964) (995,442)
Turnover - net 11,991,460 15,452,020 2,646,796 5,688,928

Cost of sales (10,767,366) (11,831,721) (3,231,543) (4,316,385)

Gross profit /(Loss) 1,224,094 3,620,299 (584,747) 1,372,543

Administrative expenses (241,198) (247,800) (70,272) (104,422)

Selling and distribution costs (251,411) (338,476) (60,522) (136,875)

Finance costs (3,379,887) (2,262,505) (1,382,708) (752,318)

(3,872,496) (2,848,781) (1,513,502) (993,615)
Operating (Loss) / profit (2,648,402) 771,518 (2,098,249) 378,928

Other expenses (229,365) (163,701) (78,492) (102,012)

Other income 257,346 361,420 76,270 78,602

(Loss) / Profit before taxation (2,620,421) 969,237 (2,100,471) 355,518

Taxation - net 586,219 (264,247) 285,309 (52,674)

(Loss) / Profit after taxation (2,034,202) 704,990 (1,815,162) 302,844

Other comprehensive (Loss)/ income for the period - - - -

Total comprehensive (Loss) / income (2,034,202) 704,990 (1,815,162) 302,844

for the period

Earnings per share

Basic and diluted - Rupees 18 (3.36) 1.17 (3.00) 0.50

The annexed notes from 1 to 22 form an integral part of this condensed interim financial statements.

___________________ ___________________ ___________________

Chief Executive Chief Financial Officer Director
 AGHA STEEL INDUSTRIES LIMITED
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2024
March 31,
2024 2023
Un-Audited
A. CASH FLOWS FROM OPERATING ACTIVITIES Note - - - - Rupees in '000'- - - -
Profit before taxation (2,620,421) 969,237
Adjustments for:
Depreciation 6.1 318,178 332,252
Amortization 3,140 3,140
Impairment loss on trade receivables - net 9 229,115 39,649
Finance cost 3,369,785 2,254,786
Amortization of government grant - (1,367)
Finance lease markup 10,102 7,719
Workers welfare fund - 52,164
Workers profit participation fund 250 21,887
Exchange loss - net - 50,000
Cash generated from operations before working capital changes 1,310,149 3,729,467
Changes in working capital
(Increase) / decrease in current assets
Stores, spare parts and loose tools (543,300) (725,463)
Stock-in-trade 8 5,618,112 3,494,848
Trade and other receivables 9 (1,160,856) (428,123)
Loans and advances 10 (538,807) 141,294
Deposits 5,132 9,472
3,380,281 2,492,028
(Decrease) / increase in current liabilities
Trade and other payables (137,004) (330,898)
Net cash generated from operations 4,553,426 5,890,597
Taxes paid - net (275,672) (186,375)
Workers profit participation fund paid (52,944) -
Financial charges paid (2,663,094) (2,431,985)
Net cash generated from operating activities 1,561,716 3,272,237

B. CASH FLOWS FROM INVESTING ACTIVITIES

Long term deposits and receivable recovered - net 7 34,496 32,144
Additions in capital work in progress - net 6.2 (1,865,781) (1,186,742)
Damage (disposals) in property, plant and equipment 6.1 673,801
Additions in property, plant and equipment 6.1 (438,836) (258,688)
Net cash used in investing activities (1,596,320) (1,413,287)

C. CASH FLOWS FROM FINANCING ACTIVITIES

Repayments of long-term borrowings - net 12 (410,358) 80,539
Advance received against shares 13 250,000 -
Lease rentals paid (18,484) (20,845)
Receipts / (Repayments) of short-term borrowings - net 15 514,562 (1,902,154)
Net cash generated from / (used in) financing activities 335,721 (1,842,460)
Net decrease in cash and cash equivalents (A+B+C) 301,117 16,490
Cash and cash equivalents at the beginning of the period 87,295 215,063
Cash and cash equivalents at the end of the period 388,412 231,553

The annexed notes from 1 to 22 form an integral part of this condensed interim financial statements.

___________________ ___________________ ___________________

Chief Executive Chief Financial Officer Director
 AGHA STEEL INDUSTRIES LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2024

Issued, Reserves
Total
subscribed Capital Revenue
Total reserves shareholders'
Particulars and paid up *Share ** Unappropriated
equity
capital Premium profit
- - - - - - - - - - - - - - - - - - - - - - - Rupees in '000' - - - - - - - - - - - - - - - - - - - - - - -

Balance as at July 01, 2022 6,048,791 2,126,687 7,490,076 9,616,763 15,665,554

Total comprehensive income for the period

Profit after taxation - - 704,990 704,990 704,990

Other comprehensive income - - - - -

- - 704,990 704,990 704,990
Balance as at December 31, 2022 6,048,791 2,126,687 8,195,066 10,321,753 16,370,544

Balance as at July 01, 2023 6,048,791 2,126,687 8,394,972 10,521,659 16,570,450

Total comprehensive income for the period

Profit after taxation - - (2,034,202) (2,034,202) (2,034,202)

Other comprehensive income - - - - -

- - (2,034,202) (2,034,202) (2,034,202)

Balance as at December 31, 2023 6,048,791 2,126,687 6,360,770 8,487,457 14,536,248

* Share premium is held for utilization for purposes as stated in Section 81 of the Companies Act, 2017.

** Unappropriated profit can be utilized for meeting contingencies and distribution of profits by way of dividends.

The annexed notes from 1 to 22 form an integral part of this condensed interim financial statements.

___________________ ___________________ ___________________

Chief Executive Chief Financial Officer Director
AGHA STEEL INDUSTRIES LIMITED
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2024

1 LEGAL STATUS AND NATURE OF BUSINESS

1.1 Agha Steel Industries Limited (the Company) was incorporated in Pakistan on November 19, 2013, as a
private limited company under the repealed Companies Ordinance, 1984, now the Companies Act, 2017
(the Act). On April 07, 2015, the Company was converted into public limited company. The Company is
principally engaged in manufacturing and sale of steel bars, wire rods and billets, and its registered office
and production plant are situated at plot no. N.W.I.Z. / 1 / P-133, (SP-6), D-2, Port Qasim Authority,
Karachi.

1.2 The company has been listed on Pakistan Stock Exchange (PSX) on November 02, 2020 by offering
120,000,000 ordinary shares of Rs. 10 each to the general public at the strike price of Rs. 32 per share
including premium of Rs. 22 per share which resulted in IPO proceeds of Rs. 3,840 million.

2 STATEMENT OF COMPLIANCE

2.1 These condensed interim financial statements have been prepared in accordance with the accounting and
reporting standard 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 Standard Board (IASB) as notified under the Companies Act, 2017; and

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

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

3 BASIS OF PREPARATION

3.1 The figures of the condensed interim statement of profit or loss and condensed interim statement of
comprehensive income for the quarters ended December 31, 2023 and December 31, 2022 and notes
forming part thereof have not been reviewed by the statutory auditors of the company, as they have
reviewed the cumulative figures for the half year ended December 31, 2023 and December 31, 2022.

3.2 These condensed interim financial statements do not include all of the information and disclosures
required for annual financial statements and should be read in conjunction with the published annual
financial statements for the year ended June 30, 2023. These condensed interim financial statements are un-
audited, however, have been subjected to limited scope review by the statutory auditors and are being
submitted to the shareholders as required by the listing regulation of Pakistan Stock Exchange limited and
section 237 of companies Act, 2017.

3.3 These condensed interim financial statements are presented in Pakistan Rupees which is the Company's
functional and presentation currency.
4 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and the methods of computation adopted in the preparation of these condensed interim
financial statements are the consistent with those applied in the preparation of the annual financial statements for
the year ended June 30, 2023.

5 SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of condensed interim financial statements in conformity with the accounting and reporting
standards which requires the use of certain critical accounting estimates.it also require management to make
judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets,
liabilities, income and expenses. The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the circumstances, the results of which form
the basis of making the judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. Actual results may differ from these estimates.

In preparation of these condensed interim financial statements, the significant judgments made by management
in applying the company's accounting policies and the key source of estimation uncertainty were the same as
those that were applied to the audited annual financial statements for the year ended June 30 2023. The
company's financial risk management objectives and policies are consistent with those disclosed in the annual
audited financial statements of the company as at and for the year ended June 30, 2023.

5.1 Standards, amendments and improvements to IFRS's effective during the period:

The company has adopted the following accounting standards and amendments to IFRSs and the
improvements to accounting standards which became for the effective for the current period:

Effective for period beginning

on or after

Amendments to IAS 1 'Presentation of Financial Statements': January 1, 2023

Amendments regarding the classification of liabilities and disclosure of
accounting policies

Amendments to IAS 8 'Accounting Policies, Changes in Accounting January 1, 2023

Estimates and Errors': Amendments regarding the definition of
accounting estimates

Amendments to IAS 12 'Income Taxes': Amendments regarding January 1, 2023

deferred tax on leases and decommissioning obligations.

Amendments to IAS 12 'Income Taxes': Amendments to provide a January 1, 2023

temporary exception to the requirements regarding deferred tax assets
and liabilities related to pillar two income taxes
5.2 Amendments to standards and IFRS interpretations that are not yet effective

The following amendments to accounting standards and interpretations are only effective for accounting
periods, beginning on or after the date mentioned against each of them. These standards, interpretations
and amendments are either not relevant to the Company's operations or are not expected to have
significant impact on the Company's financial statements other than certain additional disclosures:

Effective from accounting

period beginning on or after

Amendments to IFRS 10 'Consolidated Financial Statements' and IAS Effective from accounting period
28 'Investments in Associates and Joint Ventures': Sale or contribution beginning on or after a date to be
of assets between an investor and its associate or joint venture. determined. Earlier application is
permitted.

Amendments to IAS 1 'Presentation of Financial Statements': January 1, 2024

Amendments regarding the classification of liabilities and debt with
covenants

Amendments to IAS 7 'Statement of Cash flows'-Supplier Finance January 1, 2024

agreements

Amendments to IFRS 16 'Leases'-Amendments to clarify how a seller- January 1, 2024

lessee subsequently measures sale and leaseback transactions

Amendments to IFRS 7 'Financial Instruments' Disclosures-Supplier January 1, 2024

finance arrangements'

Amendments to IAS 21 ' Effect of changes in foreign exchange rates' January 1, 2025

Certain annual improvements have also been made to a number of standards, which have not been
enumerated here for brevity.

Other than the aforesaid standards, interpretations and amendments, the International Accounting
Standards Board (IASB) has also issued the following standards which have not been adopted locally by
the Securities and Exchange Commission of Pakistan:

IFRS 1 - First Time Adoption of International Financial Reporting Standards

IFRS 17 - Insurance Contracts

 March 31, June 30,
2024 2023
(Un-audited) (Audited)
Note - - - - Rupees in '000'- - - -
6 PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 6.1 9,601,524 10,154,667

Capital work in progress (CWIP) 6.2 12,988,494 11,122,713
22,590,018 21,277,380

6.1 Operating fixed assets

Opening book value 10,154,667 10,300,831

Additions during the period / year 6.1.1 438,836 140,595
Transfer from CWIP - 170,079
Damage on account of fire /
disposals during the period / year 6.1.2 (673,801) (5,260)
Depreciation charge for the period / year (318,178) (451,578)
9,601,524 10,154,667

6.1.1 Additions during the period / year

Plant and machinery 431,759 34,546

Computers 1,289 2,228
Furniture & fixtures 1,342 5,809
Major Stores & Spares - 50,916
Owned - Vehicles 345 538
Leased - Vehicles 4,101 46,558
438,836 140,595

6.1.2 Damage on account of fire /

disposals during the period / year

Plant and machinery 628,342 -

Buildings 45,459 -
Owned - Vehicles - 5,260
6.1.2.1 673,801 5,260

6.1.2.1 On December 29, 2023, a fire accident at the Electric control room (ECR) of rolling Mill plant occurred,
which damaged the ECR and components of Furnace and Rolling mill machinery halting Company's
production. During this period, the Company successfully restored the Furnace Production however,
restoration of Rolling machinery is still underway at the issuance of these interim condensed financial
statements. A detailed technical evaluation of damaged components of Rolling machinery is under process
by the M/s. Joseph Lobo (Pvt.) Limited as appointed by the insurance company.

The Company has filed insurance claim for damages caused by the accident, the amount of which is not
determined at this stage. However, the Company has derecognised some damaged components of ECR ,
Furnace and Rolling mill machinery plant having total net book value of Rs. 673.801 million. This has
been recognised as receivable from the insurance company. The amount of insurance claim shall be
determined by the insurance company in due course. Any over / (under) recovery will be charged to the
PLS of the company.
 March 31, June 30,
2024 2023
(Un-audited) (Audited)
- - - - Rupees in '000'- - - -
6.2 Movement in capital work-in-progress during
the period / year:
- Machinery in transit
Opening balance 11,122,713 8,848,257
Additions during the period / year 1,514,767 1,763,761
Borrowing costs 351,014 680,774
Transfer - (170,079)
12,988,494 11,122,713

7 LONG TERM DEPOSITS AND RECEIVABLE

Included herein receivable from Agha Steel Industries - an associated undertaking amounting to Rs. 348.09
(June 30, 2023: 383.47) million. The terms and conditions are same as disclosed in note 7.1 to the annual audited
financial statements of the Company for the year ended June 30, 2023.

March 31, June 30,

2024 2023
(Un-audited) (Audited)
8 STOCK-IN-TRADE Note - - - - Rupees in '000'- - - -

Raw material 2,324,899 4,803,583

Raw material in transit 871,684 889,304
Work in process 233,906 2,703,979
Finished goods 1,391,262 2,042,997
4,821,751 10,439,863

9 TRADE AND OTHER RECEIVABLES

- Considered good
Trade debts 5,497,906 5,005,501
Allowance for expected credit losses 9.1 (678,202) (449,087)
4,819,704 4,556,414
- from associated undertakings
- markup 9.2 73,755 79,105
- current maturity of long term receivable 7 35,675 35,675
- sales tax 9.3 277,601 277,601
387,031 392,381
- Other Receivables
- Insurance Receivables 6.1.2.1 673,801 -
5,880,536 4,948,795

9.1 Allowance for expected credit losses

Opening 449,087 366,004

Impairment losses recognized during the period/ year - net 229,115 83,083
Closing 678,202 449,087
 9.2 Represents Markup on loan receivable from Agha Steel Industries (related party) at the interest rate
disclosed in note 7.1 to annual audited financial statements of the Company for the year ended June 30,
2023.

9.3 Represents receivable from M/s. Agha Steel Industries (related party) on account of sales tax refundable
which will be transferred to the Company once refund is allowed to related party. Maximum aggregate
amount outstanding at any month end was Rs. 277.601 (June 30, 2023: Rs. 277.601) million. The amount
is outstanding for more than one year and is past due but not impaired as the management, based on the
advice of its tax counsel and legal adviser and the facts of the appeal filed by M/s. Agha Steel Industries
(related party) with the Honourable High Court of Sindh, is confident for the recovery of full amount.

March 31, June 30,

2024 2023
(Un-audited) (Audited)
10 LOANS AND ADVANCES Note - - - - Rupees in '000'- - - -
- Considered good
Loans
- to employees 10.1 22,396 5,599

Advances
- against supplies 1,745,326 1,299,057
- against sales tax 586,431 510,690
2,331,757 1,809,747
2,354,153 1,815,346

10.1 Represents interest free loans given to executives and other employees of the Company for their personal
use in accordance with their terms of employment. These loans are to be repaid over a period of one year
in equal monthly installments and are secured against the post employment benefits.

11 AUTHORIZED CAPITAL
March 31, June 30,
11.1 March 31, June 30 2024 2023
2023 2023 (Un-audited) (Audited)
- - - Number of shares - - - Note - - - - Rupees in '000'- - - -

925,000,000 625,000,000 Ordinary shares of Rs. 10 each 9,250,000 6,250,000

100,000,000 - Preference shares of Rs. 10 each 1,000,000 -

1,025,000,000 625,000,000 11.3 10,250,000 6,250,000

11.2 Movement in Authorized capital - Ordinary shares

Opening 6,250,000 6,250,000

Increased during the period / year 11.3 3,000,000 -
Closing 9,250,000 6,250,000

11.3 In the current period, subsequent to members' approval in the general meeting dated June 23, 2023 and
completion of related statutory formalities, the Company has increased its number authorized capital of
ordinary and preferences shares by 3,000,000 and 1,000,000 of Rs. 10 each respectively.
 March 31, June 30,
2024 2023
(Un-audited) (Audited)
12 LONG TERM BORROWINGS Note - - - - Rupees in '000'- - - -
Secured
- From banking companies
- Conventional 12.1 4,450,083 4,794,983

- Shariah compliant
Meezan Bank Limited - IFRE 115,388 124,744
Sukuk- I 12.2 - 3,416,882
Sukuk- II 12.3 3,360,781 -
3,476,169 3,541,626
7,926,251 8,336,609
Less: Current portion shown under current liabilities (191,250) (4,112,669)
7,735,001 4,223,940

12.1 There are no major changes in the terms and conditions of long-term loans as disclosed in note 16 of the
annual audited financial statements for the year ended June 30, 2023.

12.2 The entire amount of loan has been repaid during the period, by exercising the early call options.

12.3 During the period, the Company has issued privately placed rated secured sukuk certificates aggregating
to Rs. 3,400 million having face value of Rs. 1,000,000/- each for a period of 4 years (inclusive of 18
months grace period) for the purpose of settlement of existing liability against Sukuk certificates. These
carry profit at average 3 months KIBOR plus 80 basis points per annum and is secured against first pari
passu hypothecation charge over all present and future fixed assets and immovable property amounting to
Rs. 4,533.33 million. The outstanding amount at year end is repayable in 10 equal quarterly installments.

March 31, June 30,

2024 2023
(Un-audited) (Audited)
Note - - - - Rupees in '000'- - - -
13 ADVANCE AGAINST PREFERENCE SHARES

Opening 500,000 -
Received during the year 250,000 500,000
Closing 13.1 750,000 500,000

13.1 There are no major changes in advance against preference shares as disclosed in note 17 of the annual
audited financial statements for the year ended June 30, 2023. Form 3 has been applied for approval by
SECP which is in process.

14 TRADE AND OTHER PAYABLES

14.1 It Includes Rs. 312.72 million (June 30, 2023: Rs. 494.78 million) on account of Bills Payable.
 March 31, June 30,
2024 2023
(Un-audited) (Audited)
Note - - - - Rupees in '000'- - - -
15 SHORT TERM BORROWINGS

Running Finance - secured

Conventional banks 5,047,641 4,169,708
Islamic banks 249,960 250,000
5,297,601 4,419,708
Finance against Trust Receipt (FATR)
Conventional banks 7,626,630 7,570,514
Islamic banks 1,319,190 1,727,419
8,945,820 9,297,933
LDBP - Bank Al Habib Limited 15.1 - 11,218
15.2 14,243,421 13,728,859

15.1 The entire amount of loan has been repaid during the period.

15.2 There are no major changes in terms and conditions of short term borrowings as disclosed in note 21 to
the annual audited financial statements of the Company for the year ended June 30, 2023.

March 31, June 30,

2024 2023
(Un-audited) (Audited)
Note - - - - Rupees in '000'- - - -

16 CURRENT PORTION OF NON-CURRENT LIABILITIES

- long term borrowings 12 191,250 4,112,669

- lease liabilities 34,437 34,437
225,687 4,147,106

17 CONTINGENCIES AND COMMITMENTS

Contingencies

17.1 There are no major changes in the status and nature of contingencies as disclosed in the annual audited
financial statements of the Company for the year ended June 30, 2023.

March 31, June 30,

2024 2023
(Un-audited) (Audited)
- - - - Rupees in '000'- - - -
Commitments

Outstanding against letter of credits 137,943 1,879,357

Outstanding against letter of guarantees 267,377 267,377
Capital commitments 78,826 195,688
484,146 2,342,422
 Nine Months ended Quarter ended
March 31, March 31,
2024 2023 2024 2023
(Unaudited) (Unaudited)
- - - - - - - - - - - (Rupees in '000') - - - - - - - - - - -

18 EARNINGS PER SHARE

Basic
(Loss) / Profit after tax (Rupees in
'000) (2,034,202) 704,990 (1,815,162) 302,844

Weighted average number of

ordinary shares 604,879,058 604,879,058 604,879,058 604,879,058

(Loss) / Earnings per share - (In

Rupees) (3.36) 1.17 (3.00) 0.50

Diluted
Diluted earnings per share has not been computed because there are no dilutive potential ordinary shares.

19 UTILIZATION OF PROCEEDS FROM INITIAL PUBLIC OFFERING

In the financial year ended June 30, 2021, the Company issued its shares to general public through IPO to
finance the project of expansion of its capacity by installing Mi. Da. Mill Rolling Plant from IPO proceeds as
disclosed in note 1.2 to the these condensed interim financial statements.

March 31, June 30,

2024 2023
- - - - Rupees in '000'- - - -

Proceeds from IPO 3,840,000 3,840,000

IPO related expenses (225,275) (225,275)
Civil works (1,073,825) (1,073,825)
Electrical (452,023) (452,023)
Mechanical (665,277) (665,277)
Duties and other taxes (535,410) (535,410)
LC Discounting charges (193,861) (193,861)
Air Separation Unit (694,329) (694,329)
Unutilized balance - -

19.1 IPO proceeds has been fully utilized.

 Nine months ended Quarter ended
March 31, March 31,
20 TRANSACTIONS WITH RELATED 2024 2023 2024 2023
PARTIES (Unaudited) (Unaudited)

Associated Undertaking
Denim International (Private) Limited
Sales 42,889 - - -
Receipt against sales 42,889 - 42,889 -
Agha Steel Industries
Markup income received 79,105 48,782 - -
Markup income accrued 49,170 54,134 24,475 18,045
Long term receivables recovered 4,000 43,361 - -
Receipts against other receivables
against sales tax - 172,236 - -

Agha Welfare Trust

Donations paid 32,991 23,838 9,153 23,838

Staff retirement benefit fund

Agha steel staff provident fund
Contribution paid 21,951 14,634 7,317 7,965

Key management personnel

Directors
Remuneration and other benefits 20,700 13,800 6,900 6,900
Board and other meeting fee 1,350 1,150 200 575

Number of directors 6 6 6 6

21 GENERAL

21.1 Figures have been rounded-off to the nearest thousand rupee, unless otherwise stated.

22 DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements were authorized for issue on 29th April, 2024 by the Board of
Directors of the Company.

___________________ _______________________ _____________________

Chief Executive Chief Financial Officer Director