COMPANY INFORMATION
BOARD OF DIRECTORS : Aamer Hameed (Chairman/Non Executive Director)
Mohammad Hameed (Chief Executive/Executive Director) Murtaza Hameed (Executive Director)
Usman Hamid Malik (Independent Director) Sara Aqeel (Independent Director)
Tariq Hameed (Non Executive Director)
Sadia Hamid (Non Executive Director) CHIEF FINANCIAL OFFICER : M. Muddasar Shahzad
COMPANY SECRETARY : Usman Khalid
AUDIT COMMITTEE : Usman Hamid Malik (Chairman)
Sara Aqeel (Member)
Tariq Hameed (Member)
HUMAN RESOURCE & : Sara Aqeel (Chairperson) REMUNERATION COMMITTEE Aamer Hameed (Member)
Usman Hamid 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 : https://www.sitl.com.pk
Share Registrar : Corplink (Pvt) Ltd.
Wings Arcade, 1-K Commercial Model Town, Lahore
Tel: (92-42) 35839182, 35916719
DIRECTORS' REPORTThe Directors of your Company present before you the un-audited financial statements for the half yearly ended December 31, 2025. The financial results are as follows:
31.12.25 (Rupees 000) |
(53,895) (381,899) |
(435,794) 9,123 |
(426,670) |
31.12.24
(Rupees 000)
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
(31,469)
(318,534)
(350,003)
6,058
(343,945)
Loss per share - Basic (3.91) (2.28)
During the period under review, the Company incurred a net loss of Rs. 53.895 million as compared to a net loss of Rs. 31.469 million for the corresponding period of last year. Revenue for the period was Rs. 674.767 million as compared to Rs. 709.077 million in the previous period. The losses for the period were primarily attributable to continued pressure on yarn prices in both domestic and export markets. Weak global demand and competitive pricing from regional suppliers resulted in compressed margins.
The Company has accumulated losses and incurred a net loss during the period. Induction of solar energy in the previous period has contributed towards a reduction in energy costs, and the Company intends to continue further investment in alternative energy solutions. After reviewing cash flow projections and implementing cost and liquidity management measures, the Board has prepared the financial statements on a going concern basis and believes that the Company will be able to meet its obligations as they fall due.
Domestic cotton production continued to remain below industry requirements in both quantity and quality. Over the past several years, cotton output has declined due to factors such as climate variability, inconsistent seed quality, ineffective pest control practices, and rising cultivation costs resulting in reduced farmer incentives. Although the Government has initiated measures to improve crop yield and quality, sustained efforts in seed development, farmer education, modernization of ginning technology, and appropriate policy support will be essential for long-term sector stability.
The business environment continues to remain challenging, with demand conditions still fragile and competitive pressures persisting. The recent reduction in electricity tariffs for the industrial sector is expected to provide some relief in energy costs and may help reduce the overall cost of production; however, recovery in margins is expected to be gradual.
The Board remains focused on addressing operational and financial challenges through prudent management and disciplined execution. Management will continue to monitor developments closely and take appropriate measures within its control to improve performance and maintain operational continuity.
For and on behalf of the Board of Directors
Lahore
Dated: 27.02.2026
Mohammad Hameed
Chief Executive
Aamer Hameed
Director
27
2026
Crowe Hussain Chaudhury & Co.
7th Floor, Gul Mohar Trade Centre, 8-F, Main Market, Gulberg II, Lahore-54660 Pakistan.
Main +92-42-35759223-25
https://www.crowe.pk
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF SERVICE INDUSTRIES TEXTILES LIMITEDREPORT ON REVIEW OF INTERIM FINANCIAL STATEMENTS
Introduction
We have reviewed the accompanying condensed interim statement of financial position of SERVICE INDUSTRIES TEXTILE LIMITED ("the Company'') as at December 31, 2025 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 the Note 1.3 of the condensed interim financial statements which indicate that the Company has incurred a net loss amounting to Rs. 53.895 million during the six months period ended December 31, 2025 and its current liabilities exceed its current assets by Rs. 446 million. These conditions 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
Pursuant to the requirement of Section 237(1)(b) of the Companies Act, 2017, only cumulative figures for the half year, presented in the second quarter accounts are subject to a limited scope review by the statutory auditors of the Company. Accordingly, the figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three months period ended December 31, 2025 have not been reviewed by us.
The engagement partner on the review resulting in this independent auditor's report is Zain Ul Arfeen.
LAHORE
Dated: 27.02.2026 CROWE HUSSAIN CHAUDHURY & CO.
UDIN: RR20251083201ePXBS2Z Chartered Accountants
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED) AS AT DECEMBER 31, 2025December 31, June 30,
2025 | 2025 | |||
Note EQUITY AND LIABILITIES Share Capital and Reserves Authorized share capital 20,000,000 (June 30, 2025: 20,000,000) | (Un-audited) Rupees | (Audited) Rupees | ||
ordinary shares of Rs. 10 each | 200,000,000 | 200,000,000 | ||
Issued, subscribed and paid up capital | ||||
13,787,567 (June 30, 2025: 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 | (426,670,320) | (381,898,671) | ||
Surplus on revaluation of property, plant and equipment | 1,231,327,611 | 1,240,450,974 | ||
961,209,777 | 1,015,104,789 | |||
Non Current Liabilities | ||||
Long term financing | 5 | 6,276,883 | 11,149,370 | |
Staff retirement benefits | 33,110,651 | 30,760,054 | ||
Deferred tax liability | 73,388,390 | 69,452,037 | ||
112,775,924 | 111,361,461 | |||
Current Liabilities | ||||
Trade and other payables | 543,499,845 | 493,942,499 | ||
Unclaimed dividend | 232,987 | 232,987 | ||
Unpaid dividends | 683,629 | 683,629 | ||
Short term borrowings | 18,543,000 | 21,543,000 | ||
Current portion of long term financing | 5 | 15,736,825 | 12,258,575 | |
Accrued markup | 11,838,582 | 12,013,439 | ||
Provision for taxation | 8,434,581 | 17,131,434 | ||
598,969,449 | 557,805,563 | |||
Contingencies and Commitments | 6 | - | - | |
Total Equity and Liabilities | 1,672,955,150 | 1,684,271,813 | ||
ASSETS | ||||
Non Current Assets | ||||
Property, plant and equipment | 7 | 1,492,612,841 | 1,491,622,657 | |
Long term deposits | 27,622,243 | 27,337,243 | ||
1,520,235,084 | 1,518,959,900 | |||
Current Assets | ||||
Stores and spares | 3,483,676 | 3,705,447 | ||
Stock in trade | 74,033,730 | 67,879,793 | ||
Trade debts | 9,706,943 | 7,112,902 | ||
Advances, prepayments and other receivables | 46,505,783 | 66,952,927 | ||
Cash and bank balances | 18,989,934 | 19,660,844 | ||
152,720,066 | 165,311,913 | |||
1,672,955,150 | 1,684,271,813 | |||
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS ACCOUNT (UN-AUDITED)
FOR THE HALF YEAR AND QUAR D DECEMBER 31, 2025
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
TER ENDE | ||||
Half Year Ended December 31, 2025 | Half Year Ended December 31, 2024 | Quarter Ended December 31, 2025 | Quarter Ended December 31, 2024 | |
Note Sales - net Cost of sales 8 Gross (Loss) / Profit Operating Expenses Distribution expenses Administrative expenses Operating Loss Finance cost Other operating charges Other income Loss before Levy and Taxation Levy / final taxation Loss before Taxation Taxation Net Loss for the Period Loss per share - Basic & Diluted | . (Un-au | dited) ............. | ||
Rupees | Rupees | Rupees | Rupees | |
674,766,509 | 709,077,113 | 339,613,346 | 337,320,553 | |
(681,982,558) | (703,037,301) | (356,491,673) | (347,235,363) | |
(7,216,049) | 6,039,812 | (16,878,327) | (9,914,810) | |
(4,662,655) | (4,841,379) | (2,681,450) | (3,180,886) | |
(23,776,858) | (18,852,521) | (13,332,051) | (10,543,203) | |
(28,439,513) | (23,693,900) | (16,013,501) | (13,724,089) | |
(35,655,562) | (17,654,088) | (32,891,828) | (23,638,899) | |
(5,615,561) | (7,079,694) | (3,498,684) | (4,240,717) | |
(300,000) | (336,085) | (300,000) | (336,085) | |
48,343 | 55,367 | 48,343 | 55,367 | |
(5,867,218) | (7,360,412) | (3,750,341) | (4,521,435) | |
(41,522,780) | (25,014,500) | (36,642,169) | (28,160,334) | |
(8,435,879) | (8,863,464) | (4,246,464) | (4,216,507) | |
(49,958,659) | (33,877,964) | (40,888,633) | (32,376,841) | |
(3,936,353) | 2,409,144 | (3,177,676) | 2,579,892 | |
(53,895,012) | (31,468,820) | (44,066,309) | (29,796,949) | |
(3.91) | (2.28) | (3.20) | (2.16) | |
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR AND QUARTER ENDED DECEMBER 31, 2025
Particulars | Half Year Ended December 31, 2025 | Half Year Ended December 31, 2024 | Quarter Ended December 31, 2025 | Quarter Ended December 31, 2024 |
Rupees | Rupees | Rupees | Rupees | |
Net Loss for the Period | (53,895,012) | (31,468,820) | (44,066,309) | (23,796,949) |
Other Comprehensive Income | ||||
Items that may be reclassified to profit or loss | - | - | - | - |
Items that will not be reclassified to profit or loss | - | - | - | - |
Total Comprehensive Loss | ||||
for the Period | (53,895,012) | (31,468,820) | (44,066,309) | (23,796,949) |
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE HALF YEAR ENDED DECEMBER 31, 2025
Particulars | Issued, Subscribed and Paid up Capital | Reserves | Surplus on Revaluation of Property, Plant and Equipment | Total | |
Capital Reserve - Share Premium Reserve | Revenue Reserve -Accumulated Loss | ||||
Rupees
Rupees
Rupees
Rupees
Rupees
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 | - | - | (31,468,820) | - | (31,468,820) |
Transferred from surplus on revaluation of property, plant and equipment on incremental depreciation charged in current period - net of deferred tax | - | - | 6,057,489 | 6,057,489 | - |
Balance as at December 31, 2024 | 137,875,670 | 18,676,816 | (343,945,167) | 1,067,275,985 | 879,883,304 |
Balance as at June 30, 2025 | 137,875,670 | 18,676,816 | (381,898,671 | 1,240,450,974 | 1,015,104,789 |
Net loss for the period | - | - | (53,895,012) | - | (53,895,012) |
Other comprehensive income for the period | - | - | - | - | - |
Total comprehensive income for the period | - | - | (53,895,012) | - | (53,895,012) |
Transferred from surplus on revaluation of property, | |||||
plant and equipment on incremental depreciation | |||||
charged in current period - net of deferred tax | - | - | 9,123,363 | 9,123,363 | - |
Balance as at December 31, 2025 | 137,875,670 | 18,676,816 | (426,670,320) | 1,231,327,611 | 961,209,777 |
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
Half Yearly Accounts | Dec. 31, 2025 |
Service Industries Textiles Limited
CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)Half Year Ended December 31, 2025 | Half Year Ended December 31, 2024 | |
Rupees | Rupees | |
(41,522,780) | (25,014,500) | |
22,822,162 | 17,234,562 | |
4,604,012 | 4,025,993 | |
3,108,483 | 3,027,827 | |
1,127,513 | 809,661 | |
1,379,565 | 3,242,206 | |
33,041,735 | 28,340,249 | |
(8,481,045) | 3,325,749 | |
221,771 | 144,593 | |
(6,153,937) | 4,968,815 | |
(2,594,041) | (3,261,614) | |
11,587,916 | 5,269,812 | |
46,448,863 | 32,877,152 | |
49,510,572 | 39,998,758 | |
41,029,527 | 43,324,507 | |
(8,273,504) | (8,993,700) | |
(1,554,422) | (1,450,812) | |
(2,253,415) | (3,407,704 | |
28,948,186 | 29,472,291 | |
(23,812,346) | (17,634,460 | |
(285,000) | (4,865,443) | |
(24,097,346) | (22,499,903) | |
(2,521,750) | (5,310,000) | |
(3,000,000) | (1,352,000) | |
(5,521,750) | (6,662,000) | |
(670,910) | 310,388 | |
19,660,844 | 24,347,846 | |
18,989,934 | 24,658,234 |
FOR THE HALF YEAR ENDED DECEMBER 31, 2025
CASH FLOW FROM OPERATING ACTIVITIES
Loss before levy and taxation Adjustments for:
Depreciation
Provision for gratuity
Interest on Workers' (profit) participation fund
Unwinding of long term financing
Finance cost
Operating (loss) / profit before working capital changes
Decrease / (increase) in current assets:
Stores and spares
Stock in trade
Trade debts
Advances, prepayments and other receivables
Increase in current liabilities:
Trade and other payables
Cash Generated from Operations
Income tax paid Finance cost paid
Gratuity paid )
)
Net Cash Generated from Operating Activities CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment Long term deposits paid
Net Cash Used in Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Long term financing repaid Short term borrowings
Net Cash Used in from Financing Activities
Net (Decrease) / Increase in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the period
Cash and Cash Equivalents at the End of the Period
The annexed notes from 1 to 14 form an integral part of these condensed interim financial statements (un-audited).
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE HALF YEAR ENDED DECEMBER 31, 2025Note 1
The Company and its Operations
Service Industries Textiles Limited (the Company) was incorporated in Pakistan in 1962 as a Private Limited Company under the Companies Act 1913, (now the Companies Act, 2017) and was subsequently converted into a Public Limited Company in 1970. The Company is listed on Pakistan Stock Exchange. The principal activity of the Company is manufacturing and sale of yarn made from raw cotton and synthetic fiber.
The Company is domiciled in Pakistan and its registered office is situated at 38-Empress Road, Lahore, whereas the production plant of the Company is located at Rehman Shaheed Road, Gujrat.
Going Concern
The Company has incurred net loss of Rs. 53.895 million during the six months period ended December 31, 2025. As of that date its accumulated loss amounts to Rs. 426.670 million (June 30, 2025: Rs. 381.898 million), that has depleted its reserves, and its current liabilities exceed its current assets by Rs. 446.25 million (June 30, 2025: Rs. 392.49 million). These factors raise doubts about the Company being a going concern and therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business.
Adjustments relating to the recoverability of recorded assets and liabilities have not been incorporated into these financial statements, as the sponsors have committed to providing continuous financial support as and when required. The recent reduction in industrial electricity tariffs is expected to provide relief in energy costs, and the Company has already installed a solar energy system. These measures are anticipated to reduce energy and overall production costs, thereby supporting a gradual improvement in profit margins. Furthermore, additional efficiencies may be realized through enhanced operational performance and improved capacity utilization. Considering these factors, the going concern assumption remains appropriate; accordingly, these financial statements have been prepared on a going concern basis.
Note 2
Basis of Preparation
These condensed interim financial statements of the Company have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board ( IASB) as notified under the Companies Act, 2017;
Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.
These condensed interim financial statements comprise the condensed interim statement of the financial position of the Company unaudited as at December 31, 2025 and the related condensed interim statement of the profit or loss unaudited, condensed interim statement of the comprehensive income unaudited, condensed interim statement of the changes in equity unaudited and condensed interim statement of the cash flows unaudited together with the notes forming part thereof.
These condensed interim financial statements are unaudited and have been subjected to limited scope review by the external auditors as required by Section 237 of the Companies Act, 2017. The figures for the quarters ended on December 31, 2024 and 2025 presented in these condensed financial statements have not been reviewed by the external auditors.
Note 2, Basis of preparation - Continued
The comparative statement of financial position presented in these condensed interim financial statements has been extracted from the audited annual financial statements of the Company for the year ended June 30, 2025, whereas the comparative 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 have been extracted from the un-audited condensed interim financial statements for the six months period ended December 31, 2024.
These condensed interim financial statements are presented in Pak rupees (Rs.), which is the Company's functional and presentation currency. Figures have been rounded off to nearest thousand rupees, unless stated otherwise. These condensed financial statements do not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements of the Company for the year ended June 30, 2025.
Functional and presentation currency
These condensed interim financial statements are presented in Pak Rupees, which is the Company's functional and presentation currency. All the figures have been rounded off to the nearest rupees, unless otherwise stated.
Note 3
Material Accounting Policy Information
Material accounting policy information and methods of presentation of these condensed interim financial statements (unaudited) are the same as those followed in the preparation of annual financial statements for the preceding financial year ended June 30, 2025.
Note 4
Judgments and Estimates
The preparation of these condensed interim financial statements (unaudited) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Note 5
Long Term Financing
December 31, June 30,
2025 2025
Note Related parties - Unsecured Loan from Directors / Related parties - Undiscounted amount 5.1 Unwinding of discount Repayment | (Un-audited) | (Audited) |
Rupees | Rupees | |
23,407,945 | 30,963,153 | |
1,127,513 | 1,780,182 | |
(2,521,750) | (9,335,390) | |
22,013,708 | 23,407,945 | |
Less: Current and overdue portion | (15,736,825) | (12,258,575) |
6,276,883 | 11,149,370 |
This represents financing obtained from directors / related parties from time to time, to meet the liquidity requirements of the Company. This loan is repayable in equal monthly installments of Rs. 1 million each. This loan is unsecured and carries markup @ 10% per annum (June 30, 2025: 10% per annum). Pursuant to the change in Company's policy, effective from 1st July 2022, this subsidized loan has been recognised at fair value being the present value of the future outflows as per the agreed loan repayment schedule. The difference between the fair value of loan and actual receipt (carrying amount) has been recognized as other income. During the period, the unwinding of discount of Rs. 1,127,513 (June 30, 2025: Rs. 1,780,182) has been recognized as part of finance cost in the condensed interim statement of the profit or loss (unaudited).
Note 6
Contingencies and Commitments
Contingencies
There has been no change in status of contingencies as reported in the annual audited financial statements for the year ended June 30, 2025.
Note 6, Contingencies and Commitments - Continued
Commitments
There are no material commitments outstanding as at the reporting date (June 30, 2025: Nil).
Note 7
Property, Plant and Equipment
December 31, June 30,
2025 2025
Note (Un-audited) (Audited) Rupees Rupees
Opening written down value | 1,491,622,657 | 1,284,419,194 | ||
Additions during the period / year | 7.1 | 23,812,346 | 34,819,345 | |
Disposal during the period / year | - | - | ||
1,515,435,003 | 1,319,238,539 | |||
Depreciation charge for the period / year | (22,822,162) | (35,237,249) | ||
1,492,612,841 | 1,491,622,657 | |||
7.1 Breakup of Additions Plant and machinery | 3,250,000 | - | ||
Solar panel | 2,032,170 | 34,634,345 | ||
Electric fittings, equipment and appliances | - | 185,000 | ||
Vehicles | 18,530,176 | - | ||
23,812,346 | 34,819,345 | |||
Note 8
Half Year Ended
Half Year Ended
Quarter Ended
Quarter Ended
Cost of Sales
December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024
(Un-audited) | (Un-audited) | (Un-audited) | (Un-audited) | |
Rupees | Rupees | Rupees | Rupees | |
Raw material consumed | 410,091,452 | 408,295,253 | 216,957,102 | 206,407,515 |
Stores and spares consumed | 2,303,561 | 1,883,944 | 1,299,842 | 919,005 |
Packing material consumed | 6,861,305 | 5,913,627 | 5,050,515 | 2,929,313 |
Fuel and power | 169,067,444 | 204,025,855 | 88,576,369 | 95,887,605 |
Salaries, wages and other benefits | 68,576,617 | 62,786,813 | 32,062,003 | 32,275,216 |
Insurance | 1,434,802 | 698,449 | 1,074,802 | 238,449 |
Repairs and maintenance | 783,018 | 1,563,387 | 241,945 | 748,007 |
Depreciation | 21,681,054 | 16,889,871 | 10,804,305 | 8,392,257 |
Cost of goods manufactured Work in process: | 680,799,253 | 702,057,199 | 356,066,883 | 347,797,437 |
- Opening | 18,896,387 | 19,769,551 | 17,436,759 | 17,175,510 |
- Closing | (18,064,315) | (18,888,575) | (18,064,315) | (18,888,575) |
Finished goods: | 832,072 681,631,325 | 880,976 702,938,175 | (627,556) 355,439,327 | (1,713,065) 346,084,372 |
- Opening | 5,382,885 | 5,396,536 | 6,083,998 | 6,448,401 |
- Closing | (5,031,652) | (5,297,410) | (5,031,652) | (5,297,410) |
351,233 | 99,126 | 1,052,346 | 1,150,991 | |
681,982,558 | 703,037,301 | 356,491,673 | 347,235,363 |
Note 9
Financial Risk Management
The Company's financial risk management objectives and policies are consistent with those disclosed in preceding audited annual f inancial statements f or the year ended June 30 , 2025 .
Note 10
Balances and Transactions with Related Parties
Related parties comprise directors, associates of the Company, their close relatives and key management personnel. The Company in the normal course of business carries out transactions with various related parties. Significant transactions with related parties and balances due to / from them are as under:
December 31, 2025 | December 31, 2024 |
(Un-audited) | (Un-audited) |
Rupees | Rupees |
1,541,574 | 5,310,000 |
1,366,717 | 1,791,394 |
4,604,012 | 4,025,993 |
December 31, | June 30 |
2025 | 2025 |
(Un-audited) | (audited) |
Rupees | Rupees |
22,013,708 | 26,462,814 |
11,838,582 | 10,573,694 |
18,543,000 | 25,368,000 |
Transaction during the period
Relationship Transactions during the period
Directors
Post employment benefit plans
Repayment of loan Markup accrued
Salaries and other employee benefits
Balances outstanding as at,
Directors
Long term financing Accrued markup on
long term financing
Short term borrowing
Note 11
Shariah Screening Disclosures
December 31,
2025
June 30,
2025
---- Rupees in thousand ----
Balance as at the reporting date | ||
Loans / advances obtained as per Islamic mode | - | - |
Interest or mark up accrued on any conventional loan or advances | - | - |
Shariah compliant bank deposits / bank balances | 18,675,126 | 19,209,017 |
Long term and short term shariah compliant investments | - | - |
December 31, | December 31, | |
Transactions during the period
2025 2024
---- Rupees in thousand ----
Revenue earned from a shariah compliant business segment 674,766,509 709,077,113 Late payments and any liquidated charges - -
Gain / loss or dividend earned from shariah compliant investments - -Profit earned from shariah compliant bank deposits / bank balances 48,343 55,367 Exchange loss from actual currency - -Exchange gains earned using conventional derivative financial instruments - -Profit paid on Islamic mode of financing - -
Interest earned on any conventional loan or advance - -
Shariah compliant miscellaneous income - -
Names of the Company's shariah compliant financial institutions
MCB Bank Limited Bank Alfalah Limited Faysal Bank Limited Askari Bank Ltd
Habib Metropolitan bank Meezan Bank
National Bank Limited
Relationship
Bank balance Bank balance Bank balance Bank balance Bank balance Bank balance Bank balance
Note 12
Operating Segment Information
Operating segments are reported in a manner consistent with the internal reporting used by the Chief Operating Decision Maker. The Chief Executive Officer (CEO) of the Company performs function of the Chief Operating Decision Maker, who is responsible for allocating resources and assessing performance of the operating segments.
The CEO is responsible for the Company's entire product portfolio and considers business as a single operating segment. The Company's assets allocation decisions are based on a single integrated investment strategy and the Company's performance is evaluated on an overall basis.
The internal reporting provided to the CEO for the Company's assets, liabilities and performance is prepared on a basis consistent with the measurement and recognition principles of approved accounting standards as applicable in Pakistan. The Company is domiciled in Pakistan. All of the Company's income is from the entities incorporated in Pakistan.
Note 13
Authorization of Financial Statements
These condensed interim financial statements (un-audited) are approved and authorized by the Board of Directors of the Company for issuance on February 27, 2026.
Note 14
General
Corresponding figures are re-arranged / reclassified, wherever necessary, to facilitate comparison. Following reclassification has been made in these condensed interim financial statements.
Mohammad Hameed
Chief Executive
Aamer Hameed
Director
M. Muddasar Shahzad
Chief Financial Officer
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Service Industries Textiles Limited38-Empress Road, Lahore. 54000 Tel: (042) 36304561-3