Awan Trading Company (Pvt.) Limited was incorporated in Pakistan under the Companies Ordinance, 1984 (now Companies Act, 2017). The Company is engaged in the import and trading of coal and other products.

Following its incorporation on October 11, 1992, Awan Trading Company remained dormant for several years before commencing operations. In 2003, the Company brought the first coal vessel to Karachi Port, marking a significant milestone in Pakistan’s coal-import industry. The Company was also the first industry player to enter into a ten-year agreement with Pakistan Railways for the transportation of coal from Karachi to the northern areas of Pakistan. Over the years, Awan Trading has expanded its sourcing capabilities to include coal from Indonesia, South Africa, the USA, Colombia, Canada, and Afghanistan, while establishing storage and logistics facilities across Pakistan.

Awan Trading is actively engaged in business with a diverse portfolio of clients across the IPP, cement, steel, and textile sectors. To efficiently meet customer requirements, the company maintains strategically located stockpiles at four key sites: Port Qasim and near PIBTL in Sindh, and Taxila and Chicho Ki Maliyan in Punjab. Awan Trading brings extensive experience in the import and trade of coal from key international markets, including Indonesia, South Africa, and the United States. The company has established long-term agreements with leading global suppliers such as Glencore International AG, Mercuria Energy Trading PTE Limited, Swiss Singapore Overseas Enterprises PTE Limited, Itochu Corporation (Japan), London Commodity Brokers, and IMR Metallurgical Resources AG (IMR).

The current shareholding of Awan Trading is divided between two families: the Tekwani family and the Awan family. Over time, the ownership structure has seen minor adjustments. Mr. Mohammad Aslam (Late) holds a 3.99% stake, which remains under his name but is available for transfer. Similarly, an additional 3% stake held by Mr. Lal Chand is also open for transfer. Mr. Aslam’s grandsons, Mr. Syed Mustafa Ahmed and Mr. Syed Murtaza Ahmed, currently hold 14.34% and 8.43%, respectively. Furthermore, Mr. Govind Ram has transferred a portion of his shares, 11.54%, to his son, Mr. Nikhil Narind Kumar. Based on the current structure, the Tekwani family collectively holds 73.24% of the company, while the Awan family holds the remaining 26.76%.

Considering the strategic importance of the Company in Pakistan’s coal industry, stability is considered adequate. The Company has an established track record and longstanding presence in the coal import and trading business. Furthermore, its family-owned ownership structure provides continuity in ownership and management, supporting long-term stability and business direction.

Company's sponsors have an extensive industry experience with major concentration in energy, coal, logistics and tyre industry. Majority shareholder Mr. Bhool Chand & Mr. Govind Ram, both have almost 20 years of experience in coal trading sector.

The sponsors exhibit strong financial capacity, primarily supported by their profitable offshore venture, International Energy Resources FZCO, a Dubai-based associated entity engaged in coal indenting and procurement. The entity generated revenue of USD 253mln in FY26 and plays a vital role in supporting the Group’s core operations. Backed by significant industry experience, the sponsors possess the business acumen and strategic insight required to effectively identify and manage risks arising from unforeseen circumstances.

The overall control of the company vests in four-member board of directors (BoD) including the Chief Executive – Mr. Govind Ram. All board members are also shareholders. Mr. Kamlesh Kumar and Mr. Govind Ram hold executive position on board. The board members’ have adequate business acumen on the back of local industry exposure. The board meetings minutes are maintained reflecting adequate participation by the members.

All board members are qualified and competent enough for effective leadership. They have long standing experience and knowledge of coal industry.

The Board’s extensive experience provides valuable insight into the coal, energy, and logistics sectors, supporting management in formulating effective operational and financial strategies.

Hashmi & Co., Chartered Accountants, serves as the Company’s external auditor and is included in the list of firms having a satisfactory QCR rating under the QCR Framework 2024. The auditors issued an unqualified opinion on the Company’s financial statements for the year ended June 30, 2025.

The company follows a lean organizational structure, with each department led by a competent professional who reports directly to the CEO. The structure is organized into five core functional areas: (1) Finance, (2) Marketing, (3) Operations, (4) Procurement, and (5) Shipping & Chartering.

Mr. Govind Ram, the CEO, is associated with the company since its inception. Each function is headed by senior individual having designation of director. The senior management has long association with the company. The overall control of management vests with the CEO, who is supported by a team of experienced professionals at key management positions.

To oversee the Company’s management and support effective governance, three committees have been constituted, comprising members of the management team: (i) Audit Committee, (ii) Purchase Committee, and (iii) Sales Committee.

The Company utilizes a customized ERP-based Management Information System (MIS) to manage its import operations and support internal control functions. The system generates weekly and monthly reports covering aging analysis, inventory, budgetary controls, and key performance indicators, which are reviewed by senior management to ensure effective oversight and operational monitoring.

Awan Trading has an adequate technology infrastructure supported by defined policies and procedures. The Company has developed an in-house software system covering key operational modules, including marketing, procurement, and finance.

Pakistan possesses approximately 186 billion MT of coal reserves, with nearly 99% located in the Thar coalfields of Sindh. Despite this abundant resource base, domestic coal utilization remains constrained by the low calorific value and high moisture content of Thar lignite, underdeveloped mining infrastructure, and logistical limitations, prompting energy-intensive industries to continue relying on imported coal. During FY26, imported coal remained the preferred fuel for the cement, power, and industrial sectors owing to its superior quality, operational efficiency, and established global supply chains. Pakistan's coal imports were primarily sourced from South Africa, Afghanistan, and Indonesia, while international coal prices remained relatively soft during most of the year before rebounding in 4QFY26 due to geopolitical tensions in the Middle East and disruptions to global shipping routes. Although the Government continues to promote indigenous coal utilization through Thar coal development, imported coal is expected to remain a key component of Pakistan's industrial fuel mix over the medium term.

During FY26, international coal prices remained relatively soft for most of the year before rising to around USD 113/ton in 4QFY26 (SPLY: USD 90/ton) amid geopolitical tensions and disruptions to global shipping routes. Awan Trading maintained its strong position in Pakistan’s imported coal market, supported by established supplier relationships, diversified sourcing capabilities, and well-developed logistics infrastructure. The Company imported approximately 2.46mln MT during FY26, accounting for around 32.4% of the 7.6mln MT of coal handled by PIBTL during the year, underscoring its significant market presence.

During FY25, net revenue rose to PKR 73,653 million (FY24: PKR 66,885 million; FY23: PKR 59,958 million), reflecting a 10.1% YoY increase, primarily driven by higher coal import and sales volumes amid a gradual recovery in construction activity. The revival of the construction sector was supported by declining interest rates and increased Public Sector Development Programme (PSDP) spending, which strengthened demand from the cement industry, a key consumer of imported coal. During 9MFY26, the Company generated net revenue of PKR 43,998 million, reflecting moderated import volumes and relatively lower international coal prices during most of the period. However, coal prices rebounded sharply in 4QFY26, with imported coal prices increasing by approximately 26% YoY, primarily due to supply chain disruptions arising from geopolitical tensions in the Middle East, including the Iran–US conflict and disruptions in the Strait of Hormuz and the Red Sea. Going forward, demand from coal-consuming industries is expected to remain supported by improving domestic economic activity, although elevated international coal prices and freight costs may weigh on import demand in the near term.

During FY25, the Company's gross profit margin declined to 3.9% from 9.9% in FY24, primarily due to a significant decline in international coal prices, which compressed trading spreads. Consequently, the net profit margin turned negative at (1.3%), compared to a positive 2.3% in FY24, reflecting the adverse impact on overall profitability. During 9MFY26, profitability improved, with the gross profit margin recovering to 6.7% and the net profit margin increasing to 1.7%, supported by improved trading spreads, relatively stable coal prices during most of the period, and enhanced operational performance.

Awan Trading Company (Pvt.) Limited maintains a sustainable and resilient operating model, supported by its leading position in Pakistan's imported coal market. During 1HFY26, the Company imported approximately 919,000 MT of coal, representing nearly 72% of Pakistan's estimated non-Afghan coal imports, while total imports for FY26 stood at approximately 1.8 million MT. Its diversified customer base across the cement, textile, steel, and other industrial sectors provides stability against cyclical demand fluctuations. Although Pakistan possesses substantial indigenous coal reserves, structural challenges, including the lower calorific value of Thar lignite, mining infrastructure constraints, and logistical limitations, continue to support the demand for imported coal. While international coal prices increased during 4QFY26 due to geopolitical disruptions, the gradual recovery in domestic construction activity and industrial production is expected to sustain coal demand over the medium term. Supported by long-standing relationships with international suppliers such as Glencore and Itochu, strategically located storage facilities across Sindh and Punjab, and a robust ERP-based management information system, Awan Trading remains well-positioned to maintain its market leadership, efficiently manage supply chain disruptions, and sustain its operational and financial resilience over the medium to long term.

Awan Trading manages its working capital requirements through a combination of internal cash flows and short-term borrowings. During FY25, the Company's short-term borrowings increased to PKR 6,673 million (FY24: PKR 5,330 million) to support its trading operations, while borrowings moderated to PKR 6,109 million as of 9MFY26. Despite the higher financing requirements, net working capital days improved significantly to 27 days in FY25 (FY24: 49 days) and further declined to 16 days in 9MFY26, reflecting enhanced working capital efficiency, improved inventory management, and a faster cash conversion cycle.

The Company's Free Cash Flows from Operations (FCFO) declined significantly during FY25, primarily due to lower international coal prices, which compressed trading margins. Consequently, FCFO turned negative at PKR 454 million (FY24: PKR 2,445 million), while increased reliance on short-term borrowings resulted in a weakening of debt servicing metrics. Accordingly, the Interest Coverage Ratio (EBITDA/Finance Cost) declined to 0.8x in FY25 from 4.1x in FY24. However, 9MFY26 reflects a notable recovery, with FCFO improving to PKR 780 million and the Interest Coverage Ratio strengthening to 3.1x, supported by improved operating profitability and healthier cash generation. Furthermore, the rebound in international coal prices during 4QFY26, driven by geopolitical disruptions in the Middle East, is expected to support trading spreads and have a positive impact on the Company's profitability and debt servicing capacity going forward.

Over the past few years, the Company's equity base has generally been supported by retained earnings; however, the net loss of PKR 950 million incurred during FY25 reduced shareholders' equity to PKR 7,085 million (FY24: PKR 8,143 million; FY23: PKR 7,254 million). At the same time, total debt increased to PKR 6,673 million in FY25 (FY24: PKR 5,330 million; FY23: PKR 3,986 million), resulting in a rise in the debt-to-capital ratio to 48.5% (FY24: 39.6%; FY23: 35.5%). During 9MFY26, the Company's capital structure strengthened, with shareholders' equity improving to PKR 7,820 million, while total debt moderated to PKR 6,109 million, leading to a decline in the debt-to-capital ratio to 43.9%. The improvement reflects the restoration of profitability, enhanced internal cash generation, and a reduction in reliance on borrowings.