Nishat Chunian Limitednishat Chunian Limited 1 2 Nishat Chunian Limited CONTENTS

Interim Financial Information For the Quarter Ended September 30, 2020 (Unaudited)

Nishat Chunian LimitedNishat Chunian Limited 1 2 Nishat Chunian Limited CONTENTS

02 Company Information 03 Director’s Report 06 Condensed Interim Statement of Financial Position 08 Condensed Interim Statement of Profit or Loss 09 Condensed Interim Statement of Comprehensive Income 10 Condensed Interim Statement of Cash Flows 11 Condensed Interim Statement of Changes in Equity 12 Selected Notes to the Condensed Interim Financial Statements 25 Consolidated Condensed Interim Statement of Financial Position 27 Consolidated Condensed Interim Statement of Profit or Loss 28 Consolidated Condensed Interim Statement Of Comprehensive Income 29 Consolidated Condensed Interim Statement of Cash Flows 30 Consolidated Condensed Interim Statement Of Changes In Equity 31 Notes to the Consolidated Condensed Interim Financial Statements

Nishat Chunian Limited 1 Company Information

Board of Directors: Bankers to the Company: Mrs. Farhat Saleeem (Chairperson) Allied Bank Limited Mr. Shahzad Saleem (Chief Executive) Askari Bank Limited Mr. Zain Shahzad Al Barka Bank (Pakistan) Limited Mr. Aftab Ahmad Khan Bank Alfalah Limited Mr. Faisal Farid Bank Al Habib Limited Mr. Farrukh Ifzal Bank Islami Pakistan Limited Mr. Shoaib Ahmad Khan (Independent) Dubai Islamic Bank Pakistan Limited Mr. Muhammad Zahid Khan (Independent) Faysal Bank Limited Habib Bank Limited Audit Committee: Habib Metropolitan Bank Limited Mr. Muhammad Zahid Khan (Chairman) Industrial and Commercial Bank of China (ICBC) Mr. Farrukh Ifzal (Member) JS Bank Limited Mr. Aftab Ahmad Khan (Member) MCB Bank Limited Meezan Bank Limited HR & Remuneration Committee: National Bank of Pakistan Mr. Faisal Farid (Chairman) Pak Kuwait Investment Company (Private) Mr. Farrukh Ifzal (Member) Limited Mr. Muhammad Zahid Khan (Member) Standard Chartered Bank Pakistan Limited SAMBA Bank Limited CFO: Soneri Bank Limited Mr. Babar Ali Khan The Bank of Punjab United Bank Limited Company Secretary: MCB Islamic Bank Ltd. Ms. Samina Aslam Auditors: Head of Internal Audit: Mr. Ahmad Bilal Riaz Ahmad & Company Chartered Accountants Mills: Spinning 1, 4, 5, 7 & 8 Registered & Head Office: 49th Kilometre, Multan Road, Bhai Pheru, Tehsil Chunian, 31-Q, Gulberg-II, District Kasur. Lahore, Pakistan. Phone : 042-35761730-39 Dyeing & Printing Fax : 042-35878696-97 4th Kilometre, Manga Road, Web : www.nishat.net Raiwind. Share Registrar: Spinning 2, 3, 6 & Weaving Hameed Majeed Associates (Pvt) Limited 49th Kilometre, Multan Road, 1st Floor, H.M. House Kamogal, Tehsil Pattoki, 7-Bank Square, Lahore District Kasur. Ph: 042-37235081-2 Fax: 042-37358817

2 Nishat Chunian Limited Director’s Report

Dear Shareholders The Board of Directors is pleased to announce the unaudited results of Nishat (Chunian) Limited (“the Company”) for the quarter ended 30 September 2020.

Operating Financial Results Sales clocked in at Rs. 11.93 billion as compared to Rs. 9.55 billion during the corresponding quarter of previous fiscal year, registering an increase of 25.04%. Profit after tax of the Company for the quarter is 4.02% which stood at 1.81% in the corresponding period for prior year, translating into EPS of Rs. 2.00 as compared to RS. 0.72 in the same period last year.

Quarter ended September 30 Financial Highlights Increase % 2020 2019

Sales (Rs.) 11,939,510,198 9,548,553,675 25.04%

Gross Profit (Rs.) 1,275,611,445 1,195,654,458 6.69%

Profit After Taxation (Rs.) 480,311,689 173,267,272 177.21%

Gross Profit % 10.68% 12.52%

Profit After Tax % 4.02% 1.81%

Earnings Per Share (Rs.) 2.00 0.72

Market Review and Future Prospects As we continue our business in such testing times where COVID-19 persists and economic environment is not very welcoming with heightening inflation and ongoing US-China trade war, it is very encouraging to witness yet an improvement in revenue as well as profitability. However, there are major challenges encompassing us down the road. The second wave for coronavirus has been officially declared by the government and this could mean another lockdown in the next quarter. Increase in power tariff from 7.5 US cent to 9 US cent with effect from 1st September 2020 poses an eminent threat towards cost efficiency. For current year, there has been a sizable decline in production of cotton, plunging down the projected output to 21 years’ lowest for Pakistan. The quality of cotton is also compromised due to excessive rain, substandard seeds and pesticides. However, as cotton is becoming expensive globally, we see an opportunity to settle this by subsequently transferring its impact onwards to customers. As glut of demand for value added textile business has come forth with retail sector opening up worldwide post COVID-19 lockdown, companies are already operating at full capacity to grasp this opportunity as exports for this quarter are already quite impressive. While Chinese export market is splitting up as buyers are exploring other untapped parts of continent as an alternate, this is opening new avenues for local players. This is definitely another manifestation for improved profitability prospects for the business. The management has recently added 3 Digital Printing Machines along with 300 latest state of the art Stitching machines to its value-added business. Further, the management replaced and enhance a sizeable number of looms to bring in more diversity in the weaving production line. In addition to this the management recurrently visits different textile units across the world in order to bring in latest management, technological and cost cutting ideas. “The Linen Company (TLC)”, has opened two new shops in Karachi and Lahore each, taking the total retail outlets tally to six, besides a separate online base named as “E-Shop” for customers throughout the country.

Subsidiary Companies and Consolidated Financial Statements The Company’s portfolio of subsidiary companies includes Nishat Chunian Power Limited, Nishat Chunian USA Inc. Therefore, the Company has annexed consolidated condensed interim financial information in addition to its separate condensed interim financial information, in accordance with the requirements of International Financial Reporting Standards and applicable provisions of the Company Act, 2017.

Acknowledgement The Directors wish to express their appreciation to the dedicated employees who continue to play a pivotal role in the operations of company.

For and on behalf of the Board,

______Chief Executive Director Nishat Chunian Limited 3 Date: 29th October 2020 Director’s Report

4 Nishat Chunian Limited Director’s Report

Nishat Chunian Limited 5 UNCONSOLIDATED CONDENSED INTERIM statement of financial position

AS AT september 30, 2020 Un-audited Audited September 30, June 30, Note 2020 2020 Rupees Rupees EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital 5 4,200,000,000 4,200,000,000

Issued, subscribed and paid up share capital6 2,401,190,290 2, 401,190,290 Reserves 11,716,519,674 11,236,207,985 Total equity 14,117,709,964 13,637,398,275

LIABILITIES

NON-CURRENT LIABILITIES

Long term ﬁnancing 7 5,906,676,121 6, 005,068,426 Lease Liabilies 8 68,638,683 71 ,968,923

CURRENT LIABILITIES

Trade and other payables 3,848,703,057 4, 455,680,126 Unclaimed Dividend 50,714,364 50 ,714,364 Accrued mark-up 292,147,480 463, 028,006 Short term borrowings9 18,158,318,496 22,554,435,284 Current poron of non-current liabilies 956,662,727 512, 310,173 23,306,546,124 28,036,167,953 TOTAL LIABILITIES 29,281,860,928 34,113,205,302

CONTINGENCIES AND COMMITMENTS 10

TOTAL EQUITY AND LIABILITIES 43,399,570,892 47,750,603,577

The annexed notes form an integral part of these ﬁnancial statements.

______CHIEF EXECUTIVE DIRECTOR

6 Nishat Chunian Limited UNCONSOLIDATED CONDENSED INTERIM statement of financial position

AS AT september 30, 2020 Un-audited Audited September 30, June 30, Note 2020 2020 Rupees Rupees ASSETS

NON-CURRENT ASSETS

Fixed assets 11 16,249,237,027 16, 569,284,419 Right-of-use assets 12 103,927,322 93,072,385 Intangible assets 13 15,293 110,318 Long term investments 1,886,681,200 1,886,681,200 Long term loans to employees 18, 503,775 11,905,910 Long term security deposits 30, 970,195 31,689,760 18,289,334,812 18, 592,743,992

CURRENT ASSETS

Stores, spare parts and loose tools 1,054,607,726 934, 214,456 Stock-in-trade 14,120,160,288 19, 988,076,994 Trade debts 6,032,163,757 4,686,630,353 Loans and advances 1,583,987,728 1,106,668,001 Short term prepayments 72, 944,088 45,835,883 Other receivables 2,024,489,329 2,305,811,963 Accrued Interest 88,548 5,321,600 Short term investments 38, 878,637 37,833,033 Cash and bank balances 182,915,979 47,467,302 25,110,236,080 29, 157,859,585

TOTAL ASSETS 43,399,570,892 47, 750,603,577

______CHIEF FINANCIAL OFFICER

Nishat Chunian Limited 7 UNCONSOLIDATED CONDENSED INTERIM statement of profit or loss (UN-AUDITED)

For the quarter ended September 30, 2020

Quarter Ended September 30, September 30, Note 2020 2019 Rupees Rupees

SALES1 1,939,510,198 9,548,553,675 COST OF SALES 14 (10,663,898,753) (8,352,899,217) GROSS PROFIT 1, 275,611,445 1, 195,654,458 DISTRIBUTION COST (282,699,621) (227,407,462) ADMINISTRATIVE EXPENSES (68,157,633) (77,597,760) OTHER OPERATING EXPENSES (41,955,202) (67,331,839) (392,812,456) (372,337,061) 882,798,989 823,317,397

OTHER OPERATING INCOME 206,354,426 88,540,628

PROFIT FROM OPERATIONS 1, 089,153,415 911,858,025 FINANCE COST (459,007,942) (618,889,628) PROFIT BEFORE TAXATION 630,145,473 292,968,397

TAXATION (149,833,784) (119,701,125)

PROFIT AFTER TAXATION 480,311,689 173,267,272

EARNINGS PER SHARE - BASIC & DILUTED2 .00 0.72

The annexed notes form an integral part of these ﬁnancial statements.

______CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER

8 Nishat Chunian Limited UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

For the quarter ended September 30, 2020

Quarter Ended September 30, September 30, 2020 2019 Rupees Rupees

PROFIT AFTER TAXATION 480,311,689 173, 267,272

OTHER COMPREHENSIVE INCOME - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 480,311,689 173, 267,272

The annexed notes form an integral part of these ﬁnancial statements.

______CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER

Nishat Chunian Limited 9 UNCONSOLIDATED CONDENSED INTERIM STATEMENT of CASH FLOWS (UN-AUDITED)

For the quarter ended September 30, 2020

Quarter Ended September 30, September 30, Note 2020 2019 Rupees Rupees CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operaons 15 4,3925,573,296 ,911,720,331 Net increase in long term security deposits 719, 565 - Net (increase)/decrease in long term loans to employees( 16,597,865) ,821,375 Finance cost paid( 626,337,472) (4 48,337,379) Income tax paid( 115,961,846) ( 71,123,398) Net cash generated from operang acvies 4,3177,395,678 ,394,080,929

CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment 11, 163,074 (1 46,895,349) Proceeds from disposal of operang ﬁxed assets 19, 663,604 167, 755 Loans and advances to subsidiary companies ( 350,000,000) (2,778,072,000) Repayment of loans from subsidiary companies 350, 000,000 862, 576,554 Interest income received from subsidiary companies 5, -321,604 Short term investments made( 1, 045,604) 27, 169 Proﬁt on bank deposits received1 (,184,126 26 ,870) Net cash generated from / (ulized in) invesng acvies 36, 286,804 (2,062,222,741)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long term financing 3 83,471,776 - Repayment of long term financing (5 4,156,705) (4 00,934,100) Repayment of lease liabilies (1 1,432,088) - Short term borrowings - net (4,396,116,788) (6 42,541,363) Dividend paid - (2 ,299) Net cash ulized in financing acvies (4,078,233,805) (1,043,477,762) NET INCREASE IN CASH AND CASH EQUIVALENTS 135, 448,677 288, 380,426

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 47, 467,302 17 ,728,377

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 182, 915,979 306, 108,803

The annexed notes form an integral part of these ﬁnancial statements.

______CHIEF EXECUTIVE DECIRTOR CH IE F FINANCIAL OFFICER

10 Nishat Chunian Limited UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

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For the quarter ended September 30, 2020

1. THE COMPANY AND ITS OPERATIONS Nishat (Chunian)Limited (“theCompany”) is apubliclimited companyincorporatedinPakistanunder the CompaniesOrdinance, 1984 andislistedonthe Pakistan StockExchangeLimited.Its registeredoﬃceissituated at 31-Q, Gulberg II,Lahore. TheCompany is engaged in businessofspinning,weaving,dyeing,prinng,stching, processing,doubling,sizing, buying,selling andotherwise dealing in yarn,fabricand made-ups made from raw coon, synthec ﬁber and cloth and to generate, accumulate, distribute, supply and sell electricity.

2. BASIS OF PREPARATION Thesecondensed unconsolidated interimfinancialstatementshavebeen prepared in accordance with the accounng andreporng standardsasapplicable in Pakistan forinterim financial reporng.The accounng and reporng standards as applicable in Pakistan for interim financial reporng comprise of Internaonal Accounng Standard (lAS) 34, InterimFinancial Reporng,issuedbythe Internaonal Accounng StandardsBoard (IASB) as nofied underthe CompaniesAct, 2017; andProvisionsofand direcvesissued underthe CompaniesAct, 2017. Wherethe provisions of anddirecves issued underthe CompaniesAct, 2017 differwiththe requirementsof lAS 34, theprovisionsofand direcvesissuedunder theCompanies Act, 2017 have been followed.This unconsolidated condensedinterim financial informaon should be read in conjunconwiththe preceding audited annual published financial statements of the Company for the year ended 30 June 2020.

3. ACCOUNTING POLICIES Theaccounng policiesand methodsofcomputaons adoptedfor thepreparaonofthis unconsolidated condensedinterim ﬁnancial informaon arethe same as appliedinthe preparaon of thepreceding audited annual published ﬁnancial statements of the Company for the year ended 30 June 2020.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Thepreparaonofthis unconsolidatedcondensed interimﬁnancialinformaoninconformitywiththe approved accounng standardsrequiresthe useofcertain cricalaccounng esmates.Italsorequiresthe managementtoexerciseits judgment in theprocess of applying theCompany's accounng policies.Esmates andjudgmentsare connually evaluatedand arebased on historical experience andother factors, including expectaons of future events that are believed to be reasonable under the circumstances.

During preparaon of this unconsolidatedcondensed interimfinancialinformaon, thesignificantjudgments made by themanagementinapplying theCompany’s accounng policies andthe keysources of esmaon and uncertaintywerethe same as thosethatappliedinthe precedingauditedannualpublished financial statements of the Company for the year ended 30 June 2020.

5. AUTHORIZED SHARE CAPITAL

Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, 2020 2020 2020 2020 (Number of shares) Rupees Rupees

400,000,000 400, O000,000 rdinary shares of Rupees 10 each 4, 4000,000,000 ,000,000,000

20,000,000 20, 000,000 15 %non-vong cumulaveconverble preference shares of Rupees 10 each 200,2000,000 00,000,000 420, 000,000 420, 4000,000 4,200,000,000 ,200,000,000

12 Nishat Chunian Limited SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL statementS (UN-AUDITED)

For the quarter ended September 30, 2020

5.1 Theauthorisedshare capitalofNCElectricCompany LimitedofRupees1,200,000,000 (120,000,000 ordinary shares) stands merged / ammalgamated into the authorised share capital of the Company on 30 June 2020.

6. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

Un-audited Audited Un-audited Audited September 30, June 30, September 30, June 30, 2020 2020 2020 2020 (Number of shares) Rupees Rupees

134, 655,321 134, 655,321 Ordinary shares of Rupees 10 each fully paid in cash 1,346,553,210 1,346,553,210

104, 239,443 104, 239,443 Ordinary shares of Rupees 10 each issued as fully paid bonus shares 1,042,394,430 1,042,394,430

1,1224,265 ,224,265 Ordinary shares of Rupees 10 each issued as fullypaidfor consideraon otherthan cash to members of Umer Fabrics Limited as perthe Scheme of arrangementas approved by theHonourableLahoreHigh Court, Lahore 12,242,650 12,242,650

240, 119,029 240, 119,029 2,401,190,290 2,401,190,290

6.1Movement during the period / year:

240,119,029 240, A221,556 t 01 July 2,401,190,290 2,402,215,560

- (102,527) Buy-back of ordinary shares of Rupees - (1,025,270) 10 each 240, 119,029 240, A119,029 t 31 March2 2,401,190,290 ,401,190,290

6.1.1 During theninemonthsended31March 2020, theCompany purchasedand cancelled102,527ordinaryshares. The buy-back andcancellaonwereapproved by shareholders at theirextra ordinary generalmeengheldon 31 August 2019. The ordinary shares were acquired at a price of Rupees 34 per ordinary share.

Un-audited Audited September 30, June 30, 2020 2020 Rupees Rupees 7. LONG TERM FINANCING

From Banking Companies / ﬁnancial instuons -Secured Long Term Loans 6,518,517,066 5,728,090,883 Long Term Musharaka 300,000,000 761,111,112 6,818,517,066 6,489,201,995 Less: Current poron shown under current liabilies 911,840,945 484,133,569 Non-current poron 5,906,676,121 6,005,068,426

Nishat Chunian Limited 13 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)

For the quarter ended September 30, 2020

Un-audited Audited September 30, June 30, 2020 2020 Rupees Rupees 8. LEASE LIABILITIES

Total lease liabilies 113, 460,465 100,145,527 Less: Current poron shown under current liabilies 44 ,821,782 28 ,176,604 68 ,638,683 71 ,968,923

Un-audited Audited September 30, June 30, 2020 2020 Rupees Rupees 9. SHORT TERM BORROWINGS Short term running finances4 ,855,743,839 7,362,297,776 Export finances - Preshipment/SBP refinance 9, 545,284,865 10, 162,627,812 Other short term finances3 ,757,289,792 5,029,509,696 18, 158,318,496 22, 554,435,284

10. CONTINGENCIES AND COMMITMENTS Conngencies There is no signiﬁcant change in the status of conngencies as disclosed in the preceding audited annual ﬁnancial statements of the Company for the year ended 30 June 2020 except for the following:

i) Guarantees of Rupees 782.085 million (30 June 2020: Rupees 782.085 million) are given by the banks of the Company to Sui Northern Gas Pipelines Limited against gas connecons, Shell Pakistan Limited against purchase of furnace oil, Lahore Electric Supply Company Limited against electricity connecon, Director Excise and Taxaon, Karachi against infrastructure cess, Chairman Punjab Revenue Authority, Lahore against infrastructure cess, Director Pakistan Central Coon Commiee against coon cess, and Nazir, Honourable High Court, Sindh against the noﬁcaon in accordance with secon 8 of OGRA Ordinance 2002, regarding system gas tariﬀ on industrial and capve units. ii) Post dated cheques have been issued to custom authories in respect of dues amounng to Rupees 3316.444 million (30 June 2020: Rupees 4,756.109 million) on imported material availed on the basis of consumpon and export plans. In the event the documents of exports are not provided on due dates, cheque issued as security shall be encashable.

Commitments i) Leers of credit other than for capital expenditure are Rupees 305.275 million (30 June 2020: Rupees 407.110 million).

ii) Outstanding foreign currency forward contracts of Rupees 7,702.692 million (30 June 2020: Rupees 7,248.326 million).

Un-audited Audited September 30, June 30, 2020 2020 11. FIXED ASSETS Rupees Rupees

Property, plant and equipment Operang ﬁxed assets (Note 11.1) 16,110,940,258 16,282,580,673 Capital work in progress (Note 11.2) 138, 296,769 286, 703,746 16,249,237,027 16,569,284,419

14 Nishat Chunian Limited Buildings 12. RIGHT-OF-USE ASSETS Rupees

Net carrying amount as at 01 July 2020 93 ,072,385 Net carrying amount as at 30 September 2020 103, 927,322 Depreciaon expense for the period ended 30 September 2020 10 ,341,092 SELECTEDAddion durNOTESing th eTO pe riTodHE e ndeUNCONSOLIDd 30 SeptembAerTED 2020 CONDENSED INTERIM FINANCIAL STATEM ENTS 21 ,196,029 (UN-AUDITED) 12.1Lease of buildings For tThhe qCompauartenyr obta endedined Sbuepildteinmbgs eonr 30,leas 2020e for its retail outlets. Lease terms are negoated on an individual basis and contain a wide range of diﬀerent terms and condions. Lease periods range from two to ﬁve years.

Un-audited Audited September 30, June 30, 2020 2020 13. INTANGIBLE ASSETRupees Rupees 11.1Operang Assets

OpComputening erbook so vwaaluere 16 ,2 82, 580, 5,1672933 10 ,8 20, 177,110, 913180 A ddi ons during the period / year (11.1.1) 137, 1 243, 905 - ,7 05, 070, 585 - 13.1Intangible asset - Computer so ware 16 ,419,824,578 12 ,525,248,495 BookOpen vinalgue book of de valleoue ns during the period / year (11.1.2) 28, 748,110, 953181 51, 669,427, 454518 AAssedd:ts C osttrans offe areddido uponns dur aminalggama the peonriod dur / inyeag thr-e year (11.1.3) - - 4 ,7 20, 588, 324 LeLess:ss: DAepmorercizaaoonn cchhaargergedd durduriningg ththee pepeririodod // yyeaearr 280, 135 95, 502,3685 911, 828, 59,136628 Closing book value 15, 1293 10,318 Closing book value 16 ,110,940,258 16 ,282,580,673

11.1.1 Cost of addions during the period / year Un-audited Land 2, 2053Qu,5ar61ter En de d 15,991,523 Building on freehold land Se pt em be r 30 ,S - 4 ep te 3,mbe683,r 48330, Power generaon equipments 202014 ,179,856 2019 - Plant and machinery …………… 88 1,159,20 R8upees ……………,344,791,993 14. COElSTec OtrFic GO instaODllaS SOoLDns 4, 2433,668 5,012,910 Factory equipment3 1,707,250 ,703,707 RawFu marnitteurrieal a ndconsume fixtureds 6, 6 833, 5, 7071913,,889466 ,5 99 ,6,07989,,808355 PackOffiinceg ma equiteripmalsen cot nsumed 3 10, 4, 1450557,,562162 229, 1,743,912,782668 StorMoesto, spr vearhie paclesrts and loose tools 1 1563, 5,1958,88,002407 158, 4,340,894,508683 Commercial Processing Stching etc. 1 1 37,21 7,8243,39,904825 ,7 05 4,,0339,70,529785 Salaries, wages and other benefits 7 12,961,162 672, 121,110 11.1.2 Book Value of deleons during the period / year Fuel and power Plant and machinery 8 1 7071, ,7143,46,2287 ,0 1 6068,,4894,45,170120 Insurance Electric installaons 23 1 ,6 27, 649 - 7 4, 8 94,77,071500 PoFastagctore any edqui telepmphoneent 218, 2 427 - 9 , 266 38,,404661 TravFuellirnitngur aend and co fixnvtueyreansce 131,990, 5579720 6, 086 34,,990440 VeOffihiclcees erunniquipmngen andt1 maintenance 7, 1 348, 98, 500793 13 1,,0205,176498 EnteMorttoairnm veenhiclt es 16 4, ,62551,25,082809 9, ,917738,9,40824 DeToprectalia Coston of Deleons 2 8776, ,7510,01,388817 214,2 07,353,768,648313 ReLepass:ir a Andccu mamulinteatnaednc Depe reciaon 1 ( (58,11,952,462,436)046 111,156, 213,341,326150) 28 ,748,951 51 ,427,518 Other factory overheads 25 4,601,213 7,322,326 9, 364,684,654 9, 197,358,287 11.1.3 Assets transferred upon amalgamaon during the period / year Land 1 12,298,075 Building on freehold land 1, 363,228,486 Plant and machinery 3, 836,756,300 Electric installaons 5, 294,978 Factory equipment - Furniture and fixtures 360, 840 Office equipment 1, 852,321 Motor vehicles 30 ,236,510 Total cost of assets transferred - 5 ,350,027,510 Less: Accumulated Depreciaon - ( 629,439,186) - 4 ,720,588,324

11.2Capital work-in-progress Civil works on freehold land 97 ,756,812 1, 387,630 Mobilizaon advances1 Nishat ,9261Chunian,569 Limited ,779,81569 Advances for capital expenditures3 2,136,387 2 81,131,433 1 38,2296,769 92,298,932 11.1Operang Assets

Opening book value 16 ,282,580,673 10 ,820,177,910 Addions during the period / year (11.1.1) 137, 1243,905 ,705,070,585

16 ,419,824,578 12 ,525,248,495 Book value of deleons during the period / year (11.1.2) 28, 748,951 51, 427,518 Assets transfered upon amalgamaon during the year (11.1.3) - 4 ,720,588,324 Less: Depreciaon charged during the period / year 280,135,368 911, 828,628

Closing book value 16 ,110,940,258 16 ,282,580,673

11.1.1 Cost of addions during the period / year Land 2, 2053,561 15,991,523 Building on freehold land - 4 3,683,483 Power generaon equipments 14 ,179,856 - Plant and machinery 88 1,159,208 ,344,791,993 Electric installaons 4, 2433,668 5,012,910 Factory equipment3 ,1707,250 ,703,707 Furniture and ﬁxtures 5, 7071,846 ,079,835 Oﬃce equipment 4, 1450,516 1,912,266 Motor vehicles 15 5,188,000 4,894,868 1 37,1243,905 ,705,070,585

11.1.2 Book Value of deleons during the period / year Plant and machinery 70 ,746,228 1 68,894,010 Electric installaons - 7 77,500 Factory equipment - 9 ,266,461 Furniture and ﬁxtures 131, 579 6, 086,940 Oﬃce equipment1 98, 500 13 ,005,498 Motor vehicles 16 ,625,080 9, 738,424 Total Cost of Deleons 87 ,701,387 2 07,768,833 Buildings Less: Accumulated Depreciaon ( 58,(952,436) 156,341,315) 12. RIGHT-OF-USE ASSETS 28 ,748,951 Ru 51 pe,427,es 518

11.Ne1.t carry3 Asseingts am traountnsfe rreas dat upon 01 Ju lyama 2020lgamaon during the period / year 93 ,072,385 NeLat carrynd ing amount as at 30 September 2020 103,1 12,927,298,320725 DeBuprecildiainog onn ex frpeeehnsoled fo larnd the period ended 30 September 2020 1, 363, 10 ,3228,41,092486 Addion during the period ended 30 September 2020 21 ,196,029 SELECTEDPlant an NOTESd machi neTOry THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEM ENTS 3, 836,756,300 Electric installaons (UN- A UDITED) 5, 294,978 12.1LeaFasect oorf ybu eildquiinpmgsent - The Company obtained buildings on lease for its retail outlets. Lease terms are negoated on an individual basis and For theFu qrnuitarurete andr endedfixtures September 30, 2020 360, 840 contOffiaicen a e wiquidepm ranenget of different terms and condions. Lease periods range from two to five years. 1, 852,321 Motor vehicles 30 ,236,510 Total cost of assets transferred Un -a udi te d - 5 ,3Au50di,0te27d,510 Less: Accumulated Depreciaon Se pt em be r 30 , - ( J629,une439 30,,186) 2020 - 4 ,7202020,588,324 13. INTANGIBLE ASSETRupees Rupees 11.2Capital work-in-progress Computer so ware 5,1293 110, 318 Civil works on freehold land 97 ,756,812 1, 387,630 - - Mobilizaon advances1 9,261,569 ,779,869 13.1Intangible asset - Computer so ware Advances for capital expenditures3 2,136,387 2 81,131,433 1 238,296,769 92,298,932 Opening book value 110, 318 669, 454 Add: Cost of addions during the period / year- - Less: Amorzaon charged during the period / year 95, 5025 Bu ildings 59,136 12. RIClGHosinT-gOF book-USE val AueSSETS 15, 1293 Ru pe 10,es 318

Net carrying amount as at 01 July 2020 93 ,072,385 Net carrying amount as at 30 September 2020 Un-audite d 103, 927,322 Depreciaon expense for the period ended 30 September 2020 Quarter En de d 10 ,341,092 Addion during the period ended 30 September 2020 September 30,S ep te 21 mbe,196,r 02930, 2020 2019 12.1Lease of buildings …………… Rupees …………… 14. ThCOeST Compa OF GOnyOD obtaS SOLDined buildings on lease for its retail outlets. Lease terms are negoated on an individual basis and contain a wide range of different terms and condions. Lease periods range from two to five years. Raw material consumed 6, 6833,913,896 ,599,689,085 Packing materials consumed Un -a3 10,udi557,ted62 2 Au 229, di743,ted788 Stores, spare parts and loose tools Se pt 1 em 63,be958,r 3024,7 J 158, une340, 30, 503 Commercial Processing Stching etc. 2020 21 7,839,482 20204,339,297 13. INSaTAlariNGes,IB waLEge ASSEs andTR other benefits 7 up 12,ee961,s 162 672,Ru pe121,es 110 Fuel and power 8 171,143,227 ,060,445,172 InsuComputrancere so ware 23 1 ,6 27, 5,1649293 4, 8110, 94,071318 Po stage and telephone 218, 2 427 - 38, 046 - 13.1ITravntanelligiblnge aandsse cot -nv Comeyanputece r so ware 990, 5720 34,904 Vehicles running and maintenance 7, 1348,793 1,205,176 Opening book value 110, 318 669, 454 Entertainment 4, 2551,289 ,917,908 Add: Cost of addions during the period / year- - Depreciaon Less: Amorzaon charged during the period / year 2 76, 510, 95, 5 028851 214, 353, 59,136641 ClReospainirg a booknd ma vinaluetenance 1 11, 462, 15, 1 290436 111, 213, 10,318260 Other factory overheads 25 4,601,213 7,322,326 9, 364,684,654 9, 197,358,287 Un-audited Quarter Ended September 30,September 30, 2020 2019 …………… Rupees …………… 14. COST OF GOODS SOLD

Raw material consumed 6, 6833,913,896 ,599,689,085 Packing materials consumed 3 10,557,622 229, 743,788 Stores, spare parts and loose tools 1 63,958,247 158, 340,503 Commercial Processing Stching etc. 21 7,839,482 4,339,297 Salaries, wages and other beneﬁts 7 12,961,162 672, 121,110 Fuel and power 8 171,143,227 ,060,445,172 Insurance 23 1,627,649 4,894,071 Postage and telephone 16 Nishat Chunian Limited 218, 2427 38,046 Travelling and conveyance 990, 5720 34,904 Vehicles running and maintenance 7, 1348,793 1,205,176 Entertainment 4, 2551,289 ,917,908 Depreciaon 2 76,510,881 214, 353,641 Repair and maintenance 1 11,462,046 111, 213,260 Other factory overheads 25 4,601,213 7,322,326 9, 364,684,654 9, 197,358,287 Buildings 12. RIGHT-OF-USE ASSETS Rupees

Net carrying amount as at 01 July 2020 93 ,072,385 Net carrying amount as at 30 September 2020 103, 927,322 Depreciaon expense for the period ended 30 September 2020 10 ,341,092 Addion during the period ended 30 September 2020 21 ,196,029

12.1Lease of buildings The Company obtained buildings on lease for its retail outlets. Lease terms are negoated on an individual basis and contain a wide range of diﬀerent terms and condions. Lease periods range from two to ﬁve years.

Un-audited Audited September 30, June 30, 2020 2020 13. INTANGIBLE ASSETRupees Rupees

Computer so ware 5,1293 110, 318 - - 13.1Intangible asset - Computer so ware

SELECTEDOpening bookNOTES value TO THE UNCONSOLIDATED CONDENSED INTERIM FIN A NCI A L110, ST318ATEM ENTS 669, 454 Add: Cost of addions dur ing the period / year- - (UN- A UDITED) Less: Amorzaon charged during the period / year 95, 5025 59,136 For tClhose inqgu bookarte vral ueended September 30, 2020 15, 1293 10,318

Un-audited Quarter Ended September 30,September 30, 2020 2019 …………… Rupees …………… 14. COST OF GOODS SOLD

Raw material consumed 6,6833,913,896 ,599,689,085 Packing materials consumed 3 10,557,622 229, 743,788 Stores, spare parts and loose tools 1 63,958,247 158, 340,503 Commercial Processing Stching etc. 21 7,839,482 4,339,297 Salaries, wages and other beneﬁts 7 12,961,162 672, 121,110 Fuel and power 8 171,143,227 ,060,445,172 Insurance 23 1,627,649 4,894,071 Postage and telephone 218,2 427 38,046 Travelling and conveyance 990,5 720 34,904 Vehicles running and maintenance 7, 1348,793 1,205,176 Entertainment 4, 2551,289 ,917,908 Depreciaon 2 76,510,881 214, 353,641 Repair and maintenance 1 11,462,046 111, 213,260 Other factory overheads 25 4,601,213 7,322,326 9, 364,684,654 9, 197,358,287

Work-in-process

Opening stock 1,1131,081,567 ,039,191,965 Closing stock (1,036,234,752) (1,330,971,429) 94, (846,815 291,779,464) Cost of goods manufactured 9, 459,531,469 8, 905,578,823

Cost of goods sold 10 ,663,898,753 8, 352,899,217

Un-audited Quarter Ended September 30,September 30, 2020 2019 Rupees Rupees 15. CASH GENERATED FROM OPERATIONS

Profit before taxaon 6 30,145,473 292, 968,397 Adjustment for non cash charges and other items: Nishat Chunian Limited 17 Depreciaon on operang fixed assets 2 80,135,368 216, 078,675 Amorzaon on intangible assets 95, 1026 39,784 Depreciaon on right-of-use asset1 0,341,092 - (Gain)/Loss on sale of operang fixed assets 9, -085,346 Interest income on loan to subsidiary company( 88, (552) 70,965,751) Interest on bank deposits( 1, 184,126) ( 625,200) Finance cost 4 59,007,942 618, 889,628 Working capital changes (Note 15.1) 3, 538,035,727 2, 855,234,798

Cash generated from operaons 4, 925,573,296 3, 911,720,331

15.1Working capital changes (Increase) / decrease in current assets - Stores, spare parts and loose tools (1 (20,393,270) 167,381,680) - Stock in trade5 ,867,916,706 887, 013,476 - Trade debts (1 ,345,533,404) 1, 310,019,833 - Loans and advances (4 (77,319,727) 444,919,469) - Short term deposits and prepayments( 27,(108,205) 33,521,807) - Other receivables 2 47,450,696 173, 158,105 Increase in current liabilies - Trade and other payables( 1606,977,069) ,130,866,340

3, 538,035,727 2, 855,234,798 Work-in-process

Opening stock 1, 1131,081,567 ,039,191,965 Closing stock (1,036,234,752) (1,330,971,429) 94, (846,815 291,779,464) Cost of goods manufactured 9, 459,531,469 8, 905,578,823

Finished goods and waste-opening stocks Finished goods 4, 2098,769,328 ,538,481,385 Waste 175, 341,896 60, 348,016 4, 274,111,224 2, 598,829,401 13 ,733,642,693 11,504,408,224 Finished goods and waste-closing stocks Finished goods (2,988,218,760) (3,049,583,422) SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTs Waste (8( 1, 525, 180) (UN-A UDITED) 101,925,585) (3 ,069,743,940) (3 ,151,509,007) For the quarter ended September 30, 2020 Cost of goods sold 10 ,663,898,753 8, 352,899,217

Un-audited Quarter Ended September 30,September 30, 2020 2019 Rupees Rupees 15. CASH GENERATED FROM OPERATIONS

Profit before taxaon 6 30,145,473 292, 968,397 Adjustment for non cash charges and other items: Depreciaon on operang fixed assets 2 80,135,368 216, 078,675 Amorzaon on intangible assets 95, 1 026 39,784 Depreciaon on right-of-use asset1 0,341,092 - (Gain)/Loss on sale of operang fixed assets 9, -085,346 Interest income on loan to subsidiary company( ( 88,552) 70,965,751) Interest on bank deposits( 1, 184,126) ( 625,200) Finance cost 4 59,007,942 618, 889,628 Working capital changes (Note 15.1) 3, 538,035,727 2, 855,234,798

Cash generated from operaons 4, 925,573,296 3, 911,720,331

15.1Working capital changes (Increase) / decrease in current assets - Stores, spare parts and loose tools (1(20,393,270) 167,381,680) - Stock in trade5 ,867,916,706 887, 013,476 - Trade debts (1 ,345,533,404) 1, 310,019,833 - Loans and advances (4 (77,319,727) 444,919,469) - Short term deposits and prepayments( (27,108,205) 33,521,807) - Other receivables 2 47,450,696 173, 158,105 Increase in current liabilies - Trade and other payables( 1606,977,069) ,130,866,340

3, 538,035,727 2, 855,234,798

18 Nishat Chunian Limited SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTs (UN-AUDITED)

For the quarter ended September 30, 2020 675 236 628 458 675 272 760) 541 649 833 652 222) 217) 462) 839) 125) 628) 53, 49, 40, 54, 53, 67, 19 97, 72, 21, 24, 34, 05, 99, 07, 31, 01, 89, 7 0 4 7 8 ,5 ,3 ep- 9, 88 ,5 79 ,9 87 ,7 41 ,1 77 52 ,8 67 548 ,5 890 ,6 195 ,6 548 ,5 173 ,2 y 305, 227, 119, 618, ,3 ,9 ,3 9, 1, 9, 30-S an (8 mp

Co )( )( )( )( - l 33 )( 53) 02 )( 198 191 445 198 426 689 - - 622 254 664 027 885 621 784 942 ta 54, 11, 20 To 510, 510, 354, 311,

157 ,6 664, 857, 548, 055, 241, 898 ,7 699, 955 ,2 833, 007, ep- 5, 8, 1, 39, 24 ,7 75 ,6 3 1 46, 89, 68, 49, 59, 939, 206, 480, (4 ,9 ,2 350, 663, 282, ,3 ,4 (1 (4 1, 30-S 5 3 0, 11 (1

70) 70) 577 200 963 033 671 101 302 284 302 916 006 995 408 170 … t 1 1 en -19 603, 681, 811, 833, 272, 000, 467, 435, 205, 539, 028, 201, 537, 169, 169, 169, ep un-20 7, gm y 37, 750, 886, 305, 465, 384, 554, 113, 222, 463, 489, 007, 701, se , , , , , 701, 701, an , , 30-J 30-S r- 47, 22, 34, 43, (4 (4 te ( ( 6 5 5 9 1 ( 4 1 mp

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99, 38, 58, 81, Se Se 46, 46, 886, 024, 834, 640, 372, 818, 182, 292, 432, 746, 0- 0- ,7 ,7 1, 2, 3, 6, 8, 4, 3 3 Elimin 43 ,3 18 ,1 29 ,2 (4 (4 ------37 15 15 98 53 ……………………………………………… - - - - ,8 ,4 ,4 967) 967) 382) 19 16, 16, 21, 110 904 841, 904 n-20 0 ep- (1 (1 Ju on on 742, 933, 196, 933, 934, ti ti 30- 6, 30-S ra ra

ne ne Ge Ge )( r r 244 064 248 025 954 127 223 ------025 173) 173) 121 we we 20 20 69, 13, 64, 90, 49, 61, 90, 390, 049, 661, 352, p- p- Po Po ,6 ,3 ,6 5, 10 ,1 66, 28 ,7 53 ,6 Se Se (3 (3 75 ,0 84 140, 144, ………………………………… ,8 0- 0- . (7 …

05 03 53 08 12 55 29 27 59 89 73 4- 15 0- 30 68 ,0 ,4 ,2 ,8 821 555) 108) 790) 447) 93 03 il e il e xt xt 54, 47, 45, 175, 502, 445, 691, 750 516 154 301 544, 943, 143, 702, ,0 ,1 ,4 ep -1 un-2 9, Te Te 5,

12, 40, 27, 69, 154, 596, 016, 303, 1 2 3 419, (2 591 142 116 647, , , ( 30-J me me 9, 2, 4, 2, 1, 30-S (3 Ho Ho 7 d d an an 87 )( 634 171 075 269 71 43 645 54 21 740 263 904 72 4 523) 812) 536) ng ng ,9 …………………………………… 20 20 4, 65, 75, 45, 5 275, 270, 255, 909, 824, 838, 693, 504, p- p- ,7 0 576, 751 102, ..… essi essi ,8 7, 4, 04 ,7 Se Se oc oc 78 68, 55, 23, 471, 910 149, 403, 401, 580, 238, ( , , , 650, ,5 (1 (1 3, 3, 5 ………………………………………………. 30- 30-

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30, 32, Se Se (1 (7 33, 68, 25, 250, 871, 580, 900, 549, 320, es ( ( ,8 2, 1, 1, 30- 30- g (1 upe - ng .. R avi avin We 525 713 845 107 845 262 We - - 748) 194) 835) 641) 322) 872) 19 918, 016, 697, 121, 697, 423, p- 007, 008, 894, 886, 492, 515, un-20 0, 1, 1, 8, 1, 23, 62, 08, 13, 08, 04, Se 1 0 5 9 5 4 (4 (6 (2 (2 (1 0- 935, )U , 30-J )U 1, 1, 1, ………………………………………………………… ,2 (1 ,2 1 - (1 ..… t-1 t-1 (1 i ni 381 004 443 905 981 877 443 538 - 104) 972) 765) 207) 03 Un 20 307, 562, 616, 701, 552, 204, 616, 936, p- 348, 502, 566, 936, , , ep -2 93, 88, Se (9 (2 07, 12, 070, 489, 708, 101, 489, 218, ( 0- (6 1, 30-S

………………………………………………… 366 315 669 469 095 874 491 800 405 - - 383) 396) 627) 769) 03 ..… 19 180, 080, 540, 145, 763, 736, 497, 604, 591, 239, 734, 216, 517, ep- un-2 3, 0, 3, 32, 50, 82, 93, 08, 29, 42, 10, 36, 6 4 6 2 3 8 3 6 5 )U (3 (2 (1 0-S 487, , 30-J 9, 2, 2, 1, ,6 (2 …………………………………………… ,3 - -3 - (2 Zone 57) 939 810 308 303 137 880 308 829 - 577) 2 231) 346) on e-3 03 20 66, 22, 831, 967, 540, 429, 540, 888, p- 056, 006, 803, 253, ep -2 61 ,3 99 ,4 Se 38, 85, 21, 16, 374, 660, 098, 984, 098, 885, ( ( ( 0- ,8 7, 2, 2, 2, 30-S (2

802 260 743 870 888 681 262 697 430 812 -

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(1 -1 Zone 67) 559 272 656 742 978 742 076 086 one - 098) 6 477) 621) Z 20 20 011, 153, 480, 582, 682, 582, 115, 102, p- p- 432, 467, 365, 066, ilies , 88, 63, Se Se ab (7 64, 03, 57, 253, 171, 393, 456, 456, 153, ( li , 3 5, 2, 2, 30- 30- d 2,

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Co )( )( )( )( (UN-AUDITED) - l 53) 33 )( 02 )( 198 445 198 689 426 191 - 621 622 027 664 254 885 784 942 ta 11, 54, 20 To 510, 510, 311, 354,

898 ,7 157 ,6 699, 664, 055, 548, 857, 241, 833, 955 ,2 007, ep- 5, 8, 1, 39, 75 ,6 24 ,7 46, 89, 49, 68, 59, 939, 480, 206, (4 ,9 ,2 663, 282, 350, ,3 ,4 (1 (4 For the q1, uarter ended September 30, 2020 30-S 0, 11 (1 - 1 3 5 3 70) 70) 577 200 963 033 671 101 170 284 916 302 302 995 006 408 … t 1 1 en -19 603, 681, 811, 833, 272, 000, 169, 435, 539, 205, 467, 201, 028, 537, 169, 169, ep un-20 7, gm y 37, 750, 886, 305, 465, 384, 701, 554, 222, 113, 489, 463, 007, se , , , , , 701, 701, an , , 30-J r- 30-S 47, 22, 34, 43, (4 (4 te 1 ( 6 ( ( 1 5 4 5 9 mp

in Co of 01 92 84 84 66 94 - l 892 943 20 32 33 69 548 496 928 06 637 480 97 804 ------on 698) 698) 20 20 ati 878, 570, 587, 681, 489, 863, 160, 014, 318, 860, 517, 147, 915, 017, p- p- Tota 160, 160,

99, 58, 81, 38, Se Se 46, 46, 834, 886, 024, 640, 746, 372, 818, 292, 182, 432, 0- 0- ,7 ,7 1, 2, 3, 4, 6, 8, 3 3 Elimin 43 ,3 18 ,1 29 ,2 (4 (4 ------15 37 15 98 53 ……………………………………………… - - - - ,4 ,8 ,4 967) 382) 967) 19 16, 21, 16, 904 110 904 841, n-20 0 ep- (1 (1 Ju on on 933, 742, 933, 196, 934, ti ti 30- 6, 30-S ra ra

ne ne Ge Ge )( r r 248 127 244 223 025 064 954 ------121 025 173) 173) we we 20 20 13, 69, 64, 61, 90, 90, 49, 352, 049, 390, 661, p- p- Po Po ,6 ,6 5, 28 ,7 10 ,1 53 ,6 66, Se Se (3 (3 84 ,3 75 ,0 144, 140, ………………………………… ,8 0- 0- . (7 …

08 03 05 53 59 89 29 27 12 55 30 68 73 4- 15 0- ,8 ,4 ,0 ,2 790) 821 108) 555) 447) 93 03 il e il e xt xt 54, 45, 47, 445, 301 502, 175, 943, 691, 516 544, 750 154 143, 702, ,0 ,4 ,1 ep -1 un-2 9, Te Te 5,

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For the quarter ended September 30, 2020

17.RECOGNIZED FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS

(i)Fair value hierarchy

Judgements andesmates aremadeindeterminingthe fair values of thefinancialinstruments that arerecognisedand measuredatfairvalue in this unconsolidated condensedinterim financial informaon.Toprovide an indicaonabout thereliability of theinputsusedindeterminingfair value, theCompany hasclassified itsfinancialinstruments into thefollowing threelevels. An explanaon of each level follows underneath the table.

Recurring fair value measurements Level 1 Level 2Level 3 Total At 30 September 2020 ------Rupees ------Financial liabilies

Derivave ﬁnancial liabilies - 5 -1,255,731 51,255,731 Total ﬁnancial liabilies - 5 -1,255,731 51,255,731

Recurring fair value measurements Level 1 Level 2Level 3 Total At 30 June 2020 ------Rupees ------Financial liabilies

Derivave ﬁnancial liabilies - 3 -02,749,353 302,749,353 Total ﬁnancial liabilies - 3 -02,749,353 302,749,353

Theabove tabledoesnot includefairvalue informaon forfinancialassets andfinancialliabilies notmeasuredatfairvalue if thecarryingamountsare areasonableapproximaon of fair value. Due to shortterm nature,carryingamountsofcertain financial assets andfinancialliabiliesare considered to be thesameastheir fair value. Forthe majorityofthe non-currentreceivables,the fair values are also not significantly different to their carrying amounts.

Therewerenotransfers betweenlevels1and2forrecurring fair valuemeasurements duringthe year. Further, there was no transfer in and out of level 3 measurements.

TheCompany’s policyistorecognise transfersintoand transfersout of fair valuehierarchy levels as at the end of the reporng period.

Level1:The fair valueofﬁnancialinstruments traded in acvemarkets (suchaspublicly traded derivaves,and tradingand available-for-sale securies) is basedon quotedmarketpricesatthe endofthe reporng period.The quoted marketprice used forﬁnancialassets held by theCompany is the current bid price. These instruments are included in level 1.

Nishat Chunian Limited 21 SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTs (UN-AUDITED)

For the quarter ended September 30, 2020

Level2:The fair value of financial instrumentsthatare nottradedinanacvemarket(forexample, over-the-counter derivaves)isdeterminedusing valuaontechniqueswhich maximise theuse of observable market data andrelyaslile as possibleonenty-specific esmates.Ifall significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level3:Ifone or more of thesigniﬁcantinputs is notbased on observable market data,the instrument is included in level 3. This is the case for unlisted equity securies.

(ii) Valuaon techniques used to determine fair values

Speciﬁcvaluaontechniques used to value ﬁnancial instrumentsinclude theuse of quoted market prices or dealer quotes for similar instruments.

18. TRANSACTIONS WITH RELATED PARTIES

The related pares comprise subsidiary companies, associated undertakings, other related companies, key management personnel and post employment benefit plan. The Company in the normal course of business carried out transacons with various related pares. Details of transacons with related pares, other than those which have been specifically disclosed elsewhere in these financial statements are as follows:

Un-audited Un-audited Quarter Ended Quarter Ended September 30, September 30, 2020 2019 Rupees Rupees Subsidiary companies Sale of Goods 354, 790,858 334, 797,373 Purchase of Goods - 51 ,696,554 Common facilies cost charged 4, 4 950,000 ,8 00,000 Disbursement of loans 350, 000,000 2, 778,072,000 Repayment of loans 350, 000,000 862, 576,554 Mark-up on short term loans 88 7 ,552 0, 965,751

Associated company Donaon paid 2, 6 203,517 10, 000

Other related pares Purchase of goods 9, 8 340,285 2, 463,144 Sale of goods 774, 770,317 617, 392,560 Contribuon to employees' provident fund 422 ,119,604 9, 197,378

22 Nishat Chunian Limited SELECTED NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTs (UN-AUDITED)

For the quarter ended September 30, 2020

Period end balances Un-audited Audited Quarter Ended Year Ended September 30, June 30, 2020 2020 Rupees Rupees Due from subsidiary company 765, 983,792 879, 865,266 Mark-up receivable on loans made to subsidiary company 88 5 ,548 ,3 21,600 Bank balances with related party 1, 016, 601 13 ,784,123 Due from related pares other than subsidiary company 169, 959,505 215, 718,793 Due to related pares other than subsidiary company - 4 32, 498 Advance to related pares other than subsidiary company 1, 4 431,735 ,0 57,000

19. FINANCIAL RISK MANAGEMENT The Company's ﬁnancial risk management objecves and polices are consistent with those disclosed in the preceding audited annual published ﬁnancial statements of the Company for the year ended 30 June 2020.

20. CORRESPONDING FIGURES In order to comply with the requirements of Internaonal Accounng Standard (IAS) 34 'Interim Financial Reporng', the unconsolidated condensed interim balance sheet and unconsolidated condensed interim statement of changes in equity have been compared with the balances of annual audited financial statements of preceding financial year, whereas the unconsolidated condensed interim profit and loss account, unconsolidated condensed interim statement of comprehensive income and unconsolidated condensed interim cashflow statement have been compared with the balances of comparable period of immediately preceding financial year. Corresponding figures have been rearranged / regrouped wherever necessary for the purpose of comparison. However, no significant rearrangements / regroupings have been made.

21. DATE OF AUTHORIZATION FOR ISSUE

This unconsolidated condensed interim ﬁnancial informaon was approved by the Board of Directors and authorized for issue on October 29, 2020.

______CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER

Nishat Chunian Limited 23 NISHAT (CHUNIAN) LIMITED AND ITS SUBSIDIARY COMPANIES

CONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION

FOR THE QUARTER ENDED september 30, 2020 (UN-AUDITED)

24 Nishat Chunian Limited Consolidated Condensed Interim STATEMENT OF FINANCIAL POSITION as at september 30, 2020

Un-audited Audited September 30, June 30, Note 2020 2020 Rupees Rupees EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital 4,200,000,000 4,200,000,000

Issued, subscribed and paid-up share capital2 2,401,190,290 ,401,190,290 Reserves 201,267,854,750 9,297,416,671 Equity aributable to equity holders of the Holding Company 222,669,045,040 1,698,606,961 Non-controlling interest 9,753,712,460 9, 284,188,987 Total equity 323,422,757,500 0,982,795,948

LIABILITIES

NON-CURRENT LIABILITIES

Long term ﬁnancing 5,940,246,121 6, 733,616,426 Lease liabilies6 8,638,683 71,968,923 Deferred Income 4, 1718,000 ,719,000 6,013,602,804 6, 807,304,349 CURRENT LIABILITIES

Trade and other payables 4,862,715,689 5, 098,724,753 Unclaimed dividend 69 ,654,364 69,654,364 Accrued mark-up 5 83,627,859 835, 368,006 Short term borrowings2 38,473,796,299 2,275,703,713 Current poron of non-current liabilies 2,247,239,727 1, 072,013,173 363,237,033,938 9,351,464,009 TOTAL LIABILITIES 424,250,636,742 6,158,768,358

CONTINGENCIES AND COMMITMENTS

TOTAL EQUITY AND LIABILITIES 74,7673,394,242 7,141,564,306

The annexed notes form an integral part of these consolidated condensed interim ﬁnancial statements.

______CHIEF EXECUTIVE DIRECTOR Nishat Chunian Limited 25 Consolidated Condensed Interim STATEMENT OF FINANCIAL POSITION as at september 30, 2020

Un-audited Audited September 30, June 30, Note 2020 2020 Rupees Rupees ASSETS

NON-CURRENT ASSETS

Fixed assets 26,854,061,817 27,231,469,046 Intangible assets 3,152,293 4,327,318 Right-of-use assets 103,927,322 93,072,385 Long term loans to employees 20,734,775 14,352,910 Long term security deposits 31,070,195 31,789,760 27,012,946,402 27,375,011,419

CURRENT ASSETS

Stores, spare parts and loose tools1 ,534,644,726 1,604,913,456 Stock-in-trade 15,015,229,267 20,729,196,003 Trade debts2 6,228,258,158 23,134,992,082 Loans and advances 1,836,072,728 1,219,024,001 Short term deposits and prepayments 84,720,749 57,125,380 Other receivables2 ,733,456,961 2,928,701,963 Short term investments 38,878,637 37,833,033 Cash and bank balances 189,186,614 54,766,969

47,660,447,840 49,766,552,887

TOTAL ASSETS 74,673,394,242 77,141,564,306

______CHIEF FINANCIAL OFFICER

26 Nishat Chunian Limited Consolidated Condensed Interim STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

For the quarter ended September 30, 2020

Quarter Ended September 30,September 30, 2020 2019 Rupees Rupees SALES1 6,478,115,997 15,261,176,598 COST OF SALES( 13,929,180,847) (12,452,500,640) GROSS PROFIT 2,548,935,150 2,808,675,958

DISTRIBUTION COST (323,174,761) (275,879,861) ADMINISTRATIVE EXPENSES (106,285,951) (129,176,314) OTHER OPERATING EXPENSES (41,955,202) (6 8,520,644) (471,415,914) (473,576,819) 2,077,519,236 2,335,099,139

OTHER OPERATING INCOME 220,016,874 30,336,456 PROFIT FROM OPERATIONS 2,297,536,110 2,365,435,595

FINANCE COST (707,479,210) (1,237,897,746) PROFIT BEFORE TAXATION 1,590,056,900 1,127,537,849 TAXATION (149,833,784) (119,701,125)

PROFIT AFTER TAXATION 1,440,223,116 1,007,836,724

PROFIT ATTRIBUTABLE TO:

EQUITY HOLDERS OF THE HOLDING COMPANY 970,699,643 485,310,318 NON-CONTROLLING INTEREST 469,523,473 522,526,406 1,440,223,116 1,007,836,724

EARNINGS PER SHARE - BASIC & DILUTED4 .04 2.02

The annexed notes form an integral part of these consolidated condensed interim ﬁnancial statements.

______CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER

Nishat Chunian Limited 27 Consolidated Condensed Interim Statement Of Comprehensive Income (UN-AUDITED)

For the quarter ended September 30, 2020

Quarter Ended September 30,September 30, 2020 2019 Rupees Rupees

PROFIT AFTER TAXATION 1, 440,223,116 1,007,836,724

OTHER COMPREHENSIVE INCOME (261,564) (1,057,547)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1, 439,961,552 1,006,779,177

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

EQUITY HOLDERS OF THE HOLDING COMPANY 970,438,079 484,252,771 NON-CONTROLLING INTEREST 469,523,473 522,526,406 1, 439,961,552 1,006,779,177

The annexed notes form an integral part of these consolidated condensed interim ﬁnancial statements.

______CHIEF EXECUTIVE DIRECTOR CHIEF FINANCIAL OFFICER

28 Nishat Chunian Limited Consolidated Condensed Interim STATEMENT OF Cash FlowS (UN-AUDITED)

For the quarter ended September 30, 2020

Quarter Ended September 30,September 30, Note 2020 2019 Rupees Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operaons 64 2,792,014,928 ,502,904,592 Net decrease in long term security deposits 719 -,565 Net (increase) / decrease in long term loans to employees( 26,381,865) ,001,375 Finance cost paid( (959,219,357) 961,459,499) Income tax paid( (115,961,846) 71,123,398) Net cash generated from operang acvies 3,1711,171,425 ,472,323,070 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment( (169,700,089) 551,728,170) Proceeds from sale of property, plant and equipment2 3,484,604 2, 861,755 Short term investments made( (1,045,604) 624,901) Proﬁt on bank deposits received2 1,254,126 ,041,779 Net cash used in invesng acvies ((145,006,963) 548,449,537)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long term financing 4 36,012,954 - Repayment of long term financing( 54,(156,705) 1,120,119,054) Short term borrowings - net( 13,801,907,414) ,199,847,381 Repayment of lease liabilies (-11,432,088) Dividend paid -( 2, 299) Net cash (used in) / generated from financing acvies (37,431,483,253) 9,726,028 Net increase in cash and cash equivalents 134,681,209 1, 003,599,561 Impact of exchange translaon (2 61,564) (1 ,057,547) Cash and cash equivalents at the beginning of the year 54 ,766,969 181,603,540 Cash and cash equivalents at the end of the year 189,186,614 1, 184,145,554

The annexed notes form an integral part of these consolidated condensed interim ﬁnancial statements.

______CHIEF EXECUTIVE DECIRTOR CH IEF FINANCIAL OFFICER

Nishat Chunian Limited 29 Consolidated Condensed Interim Statement Of Changes In Equity (UN-AUDITED)

For the quarter ended September 30, 2020 18) 177 552 71 7 545 573) 89 4 9 50 0 94 8 TY 79, 61, 97, 734, 065, 513, 485, 757, 795, ,2 3, 06 ,7 39 ,9 60, 67, 22, 82, L EQ UI 119, 600 ,0 ,4 TA 3, 27 ,4 28 ,4 32 ,4 30 ,9 TO

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30 Nishat Chunian Limited Selected Notes to the Consolidated Condensed Interim Financial STATEMENTs (UN-AUDITED)

For the quarter ended September 30, 2020

1. GROUP INFORMATION

The Group consists of:

Holding Company-Nishat (Chunian) Limited

Subsidiary Companies -Nishat Chunian Power Limited -Nishat Chunian USA Inc.

Nishat (Chunian) Limited

Nishat (Chunian)Limited (“theHolding Company”)isapublic limitedCompany incorporated in Pakistan under therepealedCompanies Ordinance, 1984 (Now CompaniesAct, 2017) andislistedonthe PakistanStock Exchange Limited. It's registered oﬃce is situated at 31-Q, GulbergII, Lahore.The Companyisengaged in businessofspinning, weaving, dyeing,prinng,stching, processing,doubling, sizing, buying,sellingand otherwisedealing in yarn,fabrics andmade-ups made from rawcoon,synthecﬁbre, clothand to generate, accumulate, distribute, supply and sell electricity.

Nishat Chunian Power Limited

Nishat Chunian Power Limited(“the Subsidiary Company”)isapublic limitedCompany incorporated in Pakistan underthe repealed CompaniesOrdinance, 1984 (Now CompaniesAct,2017) andlistedonthe PakistanStock Exchange (Guarantee)Limited.The principal acvityofthe Subsidiary Companyistobuild,own,operate andmaintainafuel fired powerstaonhavinggross capacity of 200MWand net capacity of 195.722 MW at Jamber Kalan, Tehsil Paoki, District Kasur, Punjab, Pakistan. Its registered office is situated at 31-Q, Gulberg II,Lahore. TheSubsidiaryCompany hascommenced commercial operaonsfrom21July2010and thetwentyfive yearstermofthe Power Purchase Agreement (PPA) with Naonal Transmission and Despatch Company Limited starts from this date.

Nishat Chunian USA Incorporaon

Nishat Chunian USAInc.isaforeignsubsidiaryincorporatedunder theBusinessCorporaonLawsofthe StateofNew York.The registered oﬃce of Nishat Chunian USAInc.issituatedat 230 Fi h Avenue,Suite 1406,New York,NY10001, USA. Theprincipal businessofthe Nishat Chunian USA Inc. is to import home texle products and distribute to local retailers.

2. BASIS OF PREPARATION

This consolidated condensedinterim financial informaon is un-auditedand is beingsubmiedtoshareholdersasrequiredbydirecves issued underthe CompaniesAct, 2017. Theseconsolidatedcondensed interimfinancialstatementsofthe Groupfor the quarter ended30 September 2019 have been prepared in accordance with therequirementsofthe Internaonal AccounngStandard(IAS) 34 "Interim FinancialReporng" andprovisionsofand direcvesissued under theCompanies Act, 2017.Incasewhere requirementsdiffer,the provisions of or direcvesissuedunder theCompanies Act, 2017 have been followed.Thisconsolidatedcondensed interimfinancial informaon should be read in conjuncon with the audited annual published financial statements of the Group for the year ended 30 June 2020.

3. ACCOUNTING POLICIES

Theaccounng policiesand methodsofcomputaons adoptedfor thepreparaonofthisconsolidatedcondensed interimﬁnancial informaon arethe same as appliedinthe preparaon of thepreceding auditedannual publishedﬁnancialstatementsofthe Groupfor the year ended 30 June 2020.

4.CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Thepreparaonofthisconsolidatedcondensed interimfinancialinformaoninconformitywiththe approved accounngstandards requires theuse of certaincrical accounng esmates.Italsorequiresthe management to exercise itsjudgment in theprocess of applying theGroup's accounngpolicies. Esmates andjudgments areconnuallyevaluated andare basedonhistoricalexperienceand other factors, including expectaons of future events that are believed to be reasonable under the circumstances. During preparaon of this consolidated condensedinterim financial informaon,the significantjudgmentsmadebythe management in applying theGroup’s accounng policies andthe keysources of esmaon and uncertainty were thesameasthose that appliedinthe preceding audited annual published financial statements of the Group for the year ended 30 June 2020.

Nishat Chunian Limited 31 Selected Notes to the Consolidated Condensed Interim Financial STATEMENTs (UN-AUDITED)

For the quarter ended September 30, 2020 5. CONTINGENCIES AND COMMITMENTS

Holding Company

Conngencies

Thereisnosigniﬁcantchangeinthe status of conngencies as disclosedinthe precedingaudited annual ﬁnancial statements of the Company for the year ended 30 June 2020 except for the following:

ii) Post datedcheques have been issued to custom authories in respectofdues amounng to Rupees 3316.444million (30June2020: Rupees 4,756.109 million)onimportedmaterialavailedonthe basisofconsumponand export plans. In theevent thedocuments of exports are not provided on due dates, cheque issued as security shall be encashable.

Commitments

i) Leers of credit other than for capital expenditure are Rupees 305.275 million (30 June 2020: Rupees 407.110 million).

ii) Outstanding foreign currency forward contracts of Rupees 7,702.692 million (30 June 2020: Rupees 7,248.326 million).

Subsidiary Company

Conngencies

There are no signiﬁcant changes in conngencies from the preceding annual published ﬁnancial statements of the company for the year ended June 30, 2020, except for the following:

Conngent assets:

In conngent assets, the amount of interest at KIBOR plus 4.5% per annum compounded semi-annually from the date of Final Award unl actual payment of these amounts by NTDC is PKR 702.79 million ll September 30, 2020.

Un-auditedAudited Quarter endedYear ended September 30, June 30, 2020 2020 Commitments Rupees Rupees Leer of credit other than for capital expenditure: 12,227,122 -

Un-audited Un-audited Quarter endedQuarter ended September 30, September 30, 2020 2019 Rupees Rupees 6. CASH (USED IN) / GENERATED FROM OPERATIONS

Profit before taxaon 1,590,056,900 1,127,537,849 Adjustment for non cash charges and other items: Provision for employee rerement2 ,023,000 2, 076,000 Depreciaon on operang fixed assets 518,358,368 517,495,721 Amorzaon on intangible assets 1,173,026 1, 217,784 Depreciaon on right-of-use asset1 0,341,092 - Loss / (Gain) on sale of operang fixed assets 5,264,346 (2,283,000) Interest on bank deposits (2,254,126) (1,041,779) Amorzaon on deferred grant( 608,000) - Finance costs 707,479,210 1,237,897,746 Cash flows from operang acvies before working capital changes 2,831,833,816 2,882,900,321 32 Nishat Chunian Limited Selected Notes to the Consolidated Condensed Interim Financial STATEMENTs (UN-AUDITED)

For the quarter ended September 30, 2020

(Increase) / decrease in current assets - Stores, spare parts and loose tools7 10,268,730 54,303,426 - Stock in trade 5,1713,966,736 ,622,950,746 - Trade debts (3(,093,266,076) 2,833,229,262) - Loans and advances (6 (17,048,727) 559 ,736,263) - Short term deposits and prepayments (2 (7,595,369) 31, 684,809) - Other receivables 1 261,373,064 56,678,225 Increase in current liabilies - Trade and other payables (2 147,517,246) ,010,722,208 1,(960,181,112 379 ,995,729) Net cash generated from operaons 4,2792,014,928 ,502,904,592

7. TRANSACTIONS WITH RELATED PARTIES

Therelated pares comprise of associated undertakings,other relatedcompanies,key management personneland post employment benefit plan.The Groupinthe normal course of businesscarried outtransacons with variousrelated pares.Details of transaconswith related pares, other than those which have been specifically disclosed elsewhere in these consolidated financial statements are as follows: Un-audited Un-audited Quarter endedQuarter ended September 30, September 30, 2020 2019 Rupees Rupees

Associated company Donaon paid 2,1 203,517 ,055,000

Other related pares Purchase of goods 9,8 340,285 2,463,144 Sale of goods 7 674,770,317 17,392,560 Contribuon to employees' provident fund 44 3,142,489 1,273,132 Remuneraon paid to key management personnel 59 6,131,916 2,291,074

Un-audited Audited Quarter endedYear ended September 30, June 30, 2020 2020 Rupees Rupees Period end balances Bank balances with related party 1,1 016,601 3,784,123 Due from related pares1 269,959,505 15,718,793 Due to related pares - 4 32, 498 Advance to related pares1 4 ,431,735 ,057,000

8. CORRESPONDING FIGURES

Corresponding ﬁgures have been rearranged /regrouped wherever necessaryfor thepurpose of comparison.However,nosigniﬁcant rearrangements / regroupings have been made.

9. DATE OF AUTHORIZATION FOR ISSUE

These consolidated condensed interim ﬁnancial statements were approved and authorized for issue on October 29, 2020 by the Board of Directors.

______CHIEF EXECUTIVE DIRECTOR HIC EF FINANCIAL OFFICER

Nishat Chunian Limited 33 INVESTORS’ EDUCATION In pursuance of SRO 924(1)/2015 dated September 9th, 2015 issued by the Securities and Exchange Commission of Pakistan (SECP), the following informational message has been reproduced to educate investors:

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