GROWING
ANNUAL REPORT
2024
Cover Story
When a business grows as one, every member plays a crucial role in its success. Open communication, mutual respect, and a commitment to shared goals create a foundation for continuous progress. By supporting each other's strengths and addressing
GROWING
Annual Report 2024
AS ONE
ANNUAL REPORT
2024
challenges collectively, businesses build resilience and adaptability. This unity not only drives efficiency but also fosters a sense of belonging, turning a workplace into a thriving community where everyone contributes to growth and success.
Our History 02
Our Vision and Mission 04
Company Information 06
Geographical Presence 08
Corporate Social Responsibility 10
Notice of Annual General Meeting 16
Board of Directors 20
Group Executive Committee 21
Statement of Compliance 46
Tableofcontents
Value Added & its Distribution 22
Wealth Generated and Distributed 23
Balance Sheet Composition 24
Analytical Review 26
Six Years at a Glance 28
Horizontal Analysis 30
Vertical Analysis 31
Chairperson's Review 33
Director's Report to the Shareholders 34
Gender Pay Gap Statement 45
Review Report on the Statement of Compliance 49
Auditor's Report to the Members 52
Statement of Financial Position 56
Statement of Profit or Loss 58
Statement of Comprehensive Income 59
Statement of Changes in Equity 60
Statement of Cash Flow 61
Notes to the Financial Statements 62
Auditor's Report to the Members (Consolidated Financial Statements) 150
Consolidated Statement of Financial Position 156
Consolidated Statement of Profit or Loss 158
Consolidated Statement of Comprehensive Income 159
Consolidated Statement of Changes in Equity 160
Consolidated Statement of Cash Flows 161
Notes to the Consolidated Financial Statements 162
Pattern of Shareholding 271
Proxy Form 275
Director's Report to the Shareholders (Urdu) 287
Our History
Ch. Muhammad Hussain Ch. Nazar Muhammad
The story of 'Servis' begins in late 1930s when a group of three young graduates from college, started exploring the possibility of doing business together instead of aspiring for secured jobs. These determined young men, Chaudhry Nazar Muhammad, Chaudhry Mohammad Husain, both hailing from villages in Gujrat and Chaudhry Muhammad Saeed from the neighboring district of Gujranwala, had scarce capital as they came from families with modest means. They pooled their personal savings, and started small businesses of making Mosquito nets, minor steel products, leather chappals and eventually travel bags, hand bags and holdalls, made of canvas and leather largely for supply to the army.
Their promising business, operating out of an apartment with four small rooms in Gawalmandi, Lahore, received a serious setback at the end of World War II when the army stopped purchases and again in 1947 when subcontinent was partitioned into Pakistan and India. Most of their market was lost as it was based in Indian Cities of Delhi, Bombay, Calcutta, Madras and Cawnpur. The money thus lost was never recovered.
They were using a neutral name of Service Limited for their products, not revealing any particular religious identity under intense competition from people of other faiths.
After independence, they started their business afresh and this time with production of slippers, commonly called chappals in Pakistan. The limitation of financial resources did not deter them. They had experience of handling leather and canvas as well as handmade chappals. They established Service industries in 1953, converted to a Public Limited Company in 1959 and ultimately listed on the stock exchange in 1970.
In 1954, they installed a shoe manufacturing plant at industrial area in Gulberg, Lahore, and started production in the same year. The industry started manufacturing various types of shoes. A few years earlier retail outlet had been started at the Mall Road under banner of Hilal Store, later converted into a Servis store.
At Gujrat, they acquired large piece of land and established one of the biggest industrial complexes in Punjab, manufacturing leather and canvas footwear, canvas fabric, textile spinning and eventually also bicycle tires and tubes.
Humility, fairness and diligence were the core values held by our founders and these led to the phenomenal success of the group over the years. They were hugely focused on the impact of their enterprise on society as a whole. They remained extremely particular about payment of taxes to the national exchequer, and in looking after the interests of shareholder and workforce alike. The importance to society of creating employment opportunities, improve employees' qualifications, develop backward areas and establish an export market stemmed from their vision and directed their growth.
In the public sphere, they were the pioneers and founders of the Lahore Chamber of Commerce and Industry, the Federation of Chambers of Commerce and Industry and the Lahore Stock Exchange.
Ch. Muhammad Saeed
Ch. Nazar Muhammad and Ch. Muhammad Saeed were both Presidents of the Lahore Chamber, and Ch. Nazar Muhammad also served as the President of the Federation of Chambers of Commerce and Industry as well as Chairman of the newly established Lahore Stock Exchange. He founded the Businessmen Hospital Trust and through it became the founding Chairman of the Shalamar Hospital.
Ch. Mohammad Hussain was a great promoter of cricket and became President for the Board of Control for Cricket in Pakistan.
Today, the Servis group has transferred into 5 main companies namely Service Industries Limited, Service Long March Tyres (Pvt) Limited, Service Global Footwear Limited, Service Tyres (Pvt) Limited and Service Retail (Pvt) Limited selling quality Footwear in local and export, all steel truck and bus radial tyres, Agri Tyres and tubes, 2 wheeler and 3 wheeler tyres and tubes, a retail network of footwear operating with the brand of Servis. Servis group is the leading exporter of footwear, tyres and tubes from Pakistan. Our manufacturing facilities are spread over four locations, with three in Punjab and one in Sindh.
A humble venture of three friends has grown into a group that employs almost fifteen thousand people and makes a difference in the lives of millions of people every day.
Our Vision and Mission
Vision
To become a Global, World class and Diversified Company which leverages its brands and its people.
Mission
To be a result oriented and profitable Company by consistently improving market share quality, diversity, availability, presentation, reliability, and customer acceptance.
To emerge as a growth oriented ensuring optimum return and value addition to its shareholders.
To ensure cost consciousness in decision making and operations without compromising the commitment to quality.
To create an efficient resource management and conductive business environment. Evolving an effective leadership by creating a highly professional and motivated management team fully equipped to meet any challenge.
There are no great limits to growth because there are no limits of human intelligence, imagination, and wonder.
To keep abreast with modern technology and designs to optimize production and enhance brand image to attain international recognition for the Company's product.
-Ronald Reagan
To set up highly ethical business standards and be a good cooperate citizen, contributing towards the development of the national economy and assisting charitable causes.
To adopt appropriate safety rules and environment friendly policies.
Company Information
Board of Directors | Chief Financial Officer | Human Resource and |
Mr. Badar Ul Hassan | Remuneration Committee | |
Ms. Uzma Adil Khan | ||
(Chairperson / Independent Director) | Company Secretary | Ms. Uzma Adil Khan |
Mr. Arif Saeed | Mr. Waheed Ashraf | (Chairperson) |
(Chief Executive Officer) | Independent Director | |
Executive Director | Audit Committee | Mr. Arif Saeed |
Mr. Omar Saeed | (Member) | |
Executive Director | Mr. Muhammad Naeem Khan | Executive Director |
Mr. Hassan Javed | (Chairman) | Mr. Ahsan Bashir |
Non-Executive Director | Independent Director | (Member) |
Mr. Adil Matcheswala | Mr. Adil Matcheswala | Non-Executive Director |
Non-Executive Director | (Member) | |
Mr. Ahsan Bashir | Non-Executive Director | Bankers |
Non-Executive Director | Mr. Saif Javed | Allied Bank Limited |
Mr. Saif Javed | (Member) | Askari Bank limited |
Non-Executive Director | Non-Executive Director | Bank Al Habib Limited |
Mr. Muhammad Naeem Khan | Bank Alfalah Limited | |
Independent Director | Faysal Bank limited | |
Mr. Shahid Hussain Jatoi | ||
Independent Director |
Habib Bank Limited
Habib Metropolitan Bank Limited
Industrial and Commercial Bank of China Limited MCB Bank Limited
MCB Islamic Bank Limited Meezan Bank Limited National Bank Limited Samba Bank Limited Silk Bank Limited
Standard Chartered Bank (Pakistan) Limited Soneri Bank Limited
The Bank of Punjab The Bank of Khyber
Bank Islami Pakistan Limited Dubai Islamic Bank Limited United Bank Limited
SME Bank Limited
Pak Kuwait Investment Company Limited JS Bank Limited
Auditors
M/s. Riaz Ahmad & Company, Chartered Accountants
10-B, Saint Mary Park, Main Boulevard, Gulberg III, Lahore.
Legal Advisor
M/s. Bokhari Aziz & Karim
2-A, Block-G, Gulberg-II, Lahore.
Registered Office
Servis House,
2-Main Gulberg, Lahore-54662.
Tel:+92-42-35751990-96
Shares Registrar
M/s. Corplink (Pvt.) Limited Wings Arcade, 1-K
Commercial, Model Town, Lahore Tel: +92-42-35916714, 35916719, 35839182.
Stock Symbol
SRVI
Manufacturing Facility G.T. Road, Gujrat.
Web Presencewww.servisgroup.com
Geographical Presence
Our products are available in more than fifty countries.
Canada USA
Mexico Guatemala
JamaicaPanama El Salvador Honduras
Holland Ireland UK Belgium
Ger
Switzerland Spain
France
Tunisia Portugal
Nig
Colombia Ecuador Peru Brazil Chile Uruguay
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