Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
COMPANY INFORMATION
BOARD OF DIRECTORS | : | Aamer Hameed | (Chairman/Non Executive Director) |
Mohammad Hameed | (Chief Executive/Executive Director) | ||
Murtaza Hameed | (Executive Director) | ||
Omar Mohyud Din Malik | (Independent Director) | ||
Zainab Khan | (Independent Director) | ||
Tariq Hameed | (Non Executive Director) | ||
Sadia Hamid | (Non Executive Director) | ||
CHIEF FINANCIAL OFFICER : | M. Muddasar Shahzad | ||
COMPANY SECRETARY | : | Usman Khalid | |
AUDIT COMMITTEE | : | Omar Mohyud Din Malik | (Chairman) |
Zainab Khan | (Member) | ||
Tariq Hameed | (Member) | ||
HUMAN RESOURCE & | : | Zainab Khan | (Chairperson) |
REMUNERATION COMMITTEE | Aamer Hameed | (Member) | |
Omar Mohyud Din Malik | (Member) | ||
BANKERS | : | Meezan Bank Limited | |
MCB Bank Limited | |||
Bank Alfalah Limited | |||
AUDITORS | : | Crowe Hussain Chaudhury & Co., | |
Chartered Accountants | |||
INTERNAL AUDITOR | : | Awan & Co. | |
Chartered Accountants | |||
REGISTERED OFFICE | : | 38-Empress Road, Lahore | |
Telephones: (92-42) 36304561-3, 36367861-3 | |||
Telefax: (92-42) 3636 7861 | |||
E-mail: info@prime-service.com | |||
MILLS | : | Rehman Shaheed Road, Gujrat | |
Telephone: (92-53) 3514065, 3535085 | |||
Telefax: (92-53) 3513700 | |||
Web Reference | : | www.sitl.com.pk | |
Share Registrar | : | Corplink (Pvt) Ltd. | |
Wings Arcade, 1-K Commercial | |||
Model Town, Lahore | |||
Tel: (92-42) 35839182, 35916719 |
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Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
DIRECTORS' REPORT
The Directors of your Company present before you the un-audited financial statements for the half yearly ended December 31, 2024. The financial results are as follows:
Net Loss for the period
Accumulated loss brought forward
Transfer from surplus on revaluation Of fixed assets in respect of incremental Depreciation- net of deferred tax
Accumulated Loss
Loss per share - Basic
31.12.24 (Rupees 000)
(31,469)
(318,534)
(350,003)
6,058
(343,945)
(2.28)
31.12.23 (Rupees 000)
(53,294)
(233,222)
(286,516)
6,731
(279,785)
(3.87)
During the current period Company has incurred a net loss of Rs. 31.469 million as compared to net loss of Rs. 53.294 million for the same period in the previous year. Revenue for the period was Rs. 707.077 as compared to Rs. 642.369 in the previous period.
Revival of textile industry was mainly based on providing the energy at RCET (regionally competitive energy tariff) which helped the Punjab based textile sector to compete regionally. However, because of its withdrawal and depreciation of Pakistani rupee to record low against the dollar has made the energy cost unbearable. Industrial power tariffs in Pakistan are currently well above a regionally competitive level of 9 cents/KWH. If the Government fails to address this issue timely and is unable to provide the energy at RCET then this will hit the textile industry adversely and number of mills will be forced to either close or curtail their operations /productions. To mitigate the adverse effect of high cost of energy to some extent company has invested in the solar energy during the period under review. The company plans to invest further in the subsequent period.
Another challenge that spinning sector is facing is quality and production of cotton. The cotton production is on a decline for last many years due to multiple factors such as climate change, uncertified seeds, unchecked business of spurious pesticides, and high cost of production with diminishing return for farmers. Though the Government has realized the challenges for improving the yield and quality of cotton crops and has taken small steps for its improvement still there is a long way to go. Government should fully support the farmers and help them in up-gradation of ginning technology, educate the farmer to use the quality seed and make investment in research and development of quality seed, capacity building of farmers and introduce incentives for better quality cotton that would help in motivating the farmers.
We are fully aware of the challenges and are prepared to do everything possible to mitigate the adverse impact of such an event as far as it is under the control of management. We are very hopeful that current crisis will be over in the coming years by the combine efforts of Government and industry and we remain hopeful of the improving macro and micro economic situation of the Country.
For and on behalf of the Board of Directors
Lahore | Mohammad Hameed | Aamer Hameed |
Dated: 28.02.2025 | Chief Executive | Director |
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Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
Page 4
Crowe Hussain Chaudhury & Co.
7th Floor, Gul Mohar Trade Centre, 8-F, Main Market, Gulberg II, Lahore-54660 Pakistan.
Main +92-42-35759223-25 www.crowe.pk
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS
OF
SERVICE INDUSTRIES TEXTILES LIMITED
Introduction
We have reviewed the accompanying condensed interim statement of financial position of SERVICE INDUSTRIES TEXTILES LIMITED ("the Company'') as at December 31, 2024 and the related condensed interim statement of profit or loss , the condensed interim statement of comprehensive income, the condensed interim statement of changes in equity, and the condensed interim statement of cash flows, and notes to the condensed interim financial statements for the six-month period then ended (here-in- after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Material Uncertainty Related to Going Concern
We draw attention to Note 1.3 to the condensed interim financial statements which indicate that the Company has incurred a net loss amounting to Rs. 31.47 million during the six months period ended December 31, 2024 and its current liabilities exceed its current assets by Rs. 351.11 million. These conditions along with negative cash flows from operating activities indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Other Matter
The figures of the condensed interim statement of profit or loss and the condensed interim statement of comprehensive income for the quarters ended December 31, 2024 and 2023 have not been reviewed, as we are required to review only the cumulative figures for the half year ended December 31, 2024.
The engagement partner on the review resulting in this independent auditor's review report is Amin Ali.
LAHORE | |
Dated: 28.02.2025 | CROWE HUSSAIN CHAUDHURY & CO. |
UDIN: RR202410051b6hqlm5wP | Chartered Accountants |
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Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT DECEMBER 31, 2024
December 31, | June 30, | |||
2024 | 2024 | |||
Note | (Un-audited) | (Audited) | ||
EQUITY AND LIABILITIES | Rupees | Rupees | ||
Share Capital and Reserves | ||||
Authorized share capital | ||||
20,000,000 (June 30, 2024: 20,000,000) | ||||
ordinary shares of Rs. 10 each | 200,000,000 | 200,000,000 | ||
Issued, subscribed and paid up capital | ||||
13,787,567 (June 30, 2024: 13,787,567) | ||||
ordinary shares of Rs. 10 each fully paid in cash | 137,875,670 | 137,875,670 | ||
Share premium reserve | 18,676,816 | 18,676,816 | ||
Accumulated loss | (343,945,167) | (318,533,836) | ||
Surplus on revaluation of property, plant and equipment | 1,067,275,985 | 1,073,333,474 | ||
879,883,304 | 911,352,124 | |||
Non Current Liabilities | ||||
Long term financing | 5 | |||
13,772,814 | 19,213,153 | |||
Staff retirement benefits | 24,972,290 | 24,354,001 | ||
Deferred tax liability | 43,505,885 | 45,915,029 | ||
82,250,989 | 89,482,183 | |||
Current Liabilities | ||||
Trade and other payables | ||||
440,041,978 | 404,136,999 | |||
Unclaimed dividend | 232,987 | 232,987 | ||
Unpaid dividends | 683,629 | 683,629 | ||
Short term borrowings | 6 | 25,368,000 | 26,720,000 | |
Current portion of long term financing | 5 | 12,690,000 | 11,750,000 | |
Accrued markup | 10,573,694 | 8,782,300 | ||
Provision for taxation | 8,863,464 | 16,766,470 | ||
498,453,752 | 469,072,385 | |||
Contingencies and Commitments | 7 | - | - | |
Total Equity and Liabilities | ||||
1,460,588,045 | 1,469,906,692 | |||
ASSETS | ||||
Non Current Assets | ||||
Property, plant and equipment | 8 | |||
1,284,819,092 | 1,284,419,194 | |||
Long term deposits | 28,429,526 | 23,564,083 | ||
1,313,248,618 | 1,307,983,277 | |||
Current Assets | ||||
Stores and spares | ||||
3,424,525 | 3,569,118 | |||
Stock in trade | 60,598,523 | 65,567,338 | ||
Trade debts | 6,500,867 | 3,239,253 | ||
Advances, prepayments and other receivables | 52,157,278 | 65,199,860 | ||
Cash and bank balances | 24,658,234 | 24,347,846 | ||
147,339,427 | 161,923,415 | |||
1,460,588,045 | 1,469,906,692 |
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
Mohammad Hameed | Aamer Hameed | M. Muddasar Shahzad |
Chief Executive | Director | Chief Financial Officer |
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Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS ACCOUNT (UN-AUDITED) FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2024
Half Year Ended | Half Year Ended | Quarter Ended | Quarter Ended | ||
December 31, | December 31, | December 31, | December 31, | ||
2024 | 2023 | 2024 | 2023 | ||
............. (Un-audited) | |||||
Note | Rupees | Rupees | Rupees | Rupees | |
Sales - net | 709,077,113 | 642,369,345 | 337,320,553 | 325,239,345 | |
Cost of sales | 9 | (703,037,301) | (666,570,336) | (347,235,363) | (350,565,336) |
Gross Profit / (Loss) | 6,039,812 | (24,200,991) | (9,914,810) | (25,325,991) | |
Operating Expenses | |||||
Distribution expenses | (4,841,379) | (4,250,070) | (3,180,886) | (2,109,070) | |
Administrative expenses | (18,852,521) | (16,006,577) | (10,543,203) | (8,483,577) | |
(23,693,900) | (20,256,647) | (13,724,089) | (10,592,647) | ||
Operating Loss | (17,654,088) | (44,457,638) | (23,638,899) | (35,918,638) | |
Finance cost | (7,079,694) | (6,608,343) | (4,240,717) | (3,228,343) | |
Other operating charges | (336,085) | (500,000) | (336,085) | (500,000) | |
Other income | 55,367 | 1,940,707 | 55,367 | 1,940,707 | |
(7,360,412) | (5,167,636) | (4,521,435) | (1,787,636) | ||
Loss before Levy and Taxation | (25,014,500) | (49,625,274) | (28,160,334) | (37,706,274) | |
Levy / final taxation | (8,863,464) | (8,029,617) | (4,216,507) | (4,065,617) | |
Loss before Taxation | (33,877,964) | (57,654,891) | (32,376,841) | (41,771,891) | |
Taxation | 2,409,144 | 4,360,983 | 2,579,892 | 1,924,983 | |
Net Loss for the Period | (31,468,820) | (53,293,908) | (29,796,949) | (39,846,908) | |
Loss per share | |||||
- Basic & Diluted | (2.28) | (3.87) | (2.16) | (2.89) | |
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
Mohammad Hameed | Aamer Hameed | M. Muddasar Shahzad |
Chief Executive | Director | Chief Financial Officer |
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Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2024
Particulars
Net Loss for the Period
Other Comprehensive Income
Items that may be reclassified subsequently to profit or loss
Items that will not be reclassified subsequently to profit or loss
Total Comprehensive Loss for the Period
Half Year Ended | Half Year Ended | Quarter Ended | Quarter Ended |
December 31, | December 31, | December 31, | December 31, |
2024 | 2023 | 2024 | 2024 |
Rupees | Rupees | Rupees | Rupees |
(31,468,820) | (53,293,908) | (23,796,949) | (39,846,908) |
- | - | - | - |
- | - | - | - |
(31,468,820) (53,293,908) (23,796,949) (39,846,908)
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
Mohammad Hameed | Aamer Hameed | M. Muddasar Shahzad |
Chief Executive | Director | Chief Financial Officer |
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Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2024
Particulars
Issued,
Subscribed and
Paid up Capital
Reserves
Capital Reserve - Share | Revenue Reserve - |
Premium Reserve | Accumulated Loss |
Surplus on Revaluation of Property, Plant and Equipment
Total
Rupees | Rupees | Rupees | Rupees | Rupees | |
Balance as at June 30, 2023 | 137,875,670 | 18,676,816 | (233,221,606) | 1,086,794,560 | 1,010,125,440 |
Net loss for the period
Other comprehensive income for the period
- | - | (53,293,908) | - | (53,293,908) |
- | - | - | - | - |
Total comprehensive income for the period | - | - | (53,293,908) | - | (53,293,908) | |
Transferred from surplus on revaluation of property, | ||||||
plant and equipment on incremental depreciation | ||||||
charged in current period - net of deferred tax | - | - | 6,730,543 | (6,730,543) | - | |
Balance as at December 31, 2023 | 137,875,670 | 18,676,816 | (279,784,971) | 1,080,064,017 | 956,831,532 | |
Balance as at June 30, 2024 | 137,875,670 | 18,676,816 | (318,533,836) | 1,073,333,474 | 911,352,124 | |
Net loss for the period | - | - | (31,468,820) | - | (31,468,820) | |
Other comprehensive income for the period | - | - | - | - | - |
Total comprehensive income for the period
Transferred from surplus on revaluation of property, plant and equipment on incremental depreciation charged in current period - net of deferred tax
Balance as at December 31, 2024
- | - | (31,468,820) | - | (31,468,820) |
- | - | 6,057,489 | (6,057,489) | - |
137,875,670 | 18,676,816 | (343,945,167) | 1,067,275,985 | 879,883,304 |
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
Mohammad Hameed | Aamer Hameed | M. Muddasar Shahzad |
Chief Executive | Director | Chief Financial Officer |
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Service Industries Textiles Limited
Half Yearly Accounts Dec. 31, 2024
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)
FOR THE HALF YEAR ENDED DECEMBER 31, 2024
Half Year Ended | Half Year Ended | ||||
December 31, | December 31, | ||||
2024 | 2023 | ||||
Rupees | Rupees | ||||
CASH FLOW FROM OPERATING ACTIVITIES | |||||
Loss before levy and taxation | (25,014,500) | (49,625,274) | |||
Adjustments for: | |||||
- | Depreciation | 17,234,562 | 18,770,213 | ||
- | Provision for gratuity | 4,025,993 | 4,840,805 | ||
- Interest on Workers' (profit) participation fund | 3,027,827 | 4,014,880 | |||
- Unwinding of long term financing | 809,661 | (1,662,086) | |||
- | Finance cost | 3,242,206 | 2,380,198 | ||
28,340,249 | 28,344,010 | ||||
Operating profit / (loss) before working capital changes | 3,325,749 | (21,281,264) | |||
Decrease / (increase) in current assets: | |||||
- | Stores and spares | 144,593 | 647,997 | ||
- | Stock in trade | 4,968,815 | 31,940,172 | ||
- | Trade debts | (3,261,614) | (3,482,815) | ||
- Advances, prepayments and other receivables | 5,269,812 | (4,267,207) | |||
Increase in current liabilities: | |||||
- Trade and other payables | 32,877,152 | 22,729,422 | |||
39,998,758 | 47,567,569 | ||||
Cash Generated from Operations | 43,324,507 | 26,286,305 | |||
Income tax paid | (8,993,700) | (6,982,126) | |||
Finance cost paid | (1,450,812) | (42,986) | |||
Gratuity paid | (3,407,704) | (3,017,491) | |||
Net Cash Generated from Operating Activities | 29,472,291 | 16,243,702 | |||
CASH FLOW FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | |||||
(17,634,460) | (3,000,000) | ||||
Long term deposits paid | (4,865,443) | (697,060) | |||
Net Cash Used in Investing Activities | (22,499,903) | (3,697,060) | |||
CASH FLOW FROM FINANCING ACTIVITIES | |||||
Long term financing repaid | |||||
(5,310,000) | (7,812,000) | ||||
Short term borrowings | (1,352,000) | - | |||
Net Cash Used in from Financing Activities | (6,662,000) | (7,812,000) | |||
Net Increase in Cash and Cash Equivalents | 310,388 | 4,734,642 | |||
Cash and cash equivalents at the beginning of the period | 24,347,846 | 19,183,505 | |||
Cash and Cash Equivalents at the End of the Period | 24,658,234 | 23,918,147 | |||
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
Mohammad Hameed | Aamer Hameed | M. Muddasar Shahzad |
Chief Executive | Director | Chief Financial Officer |
Page 10
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