Service Industries LtdPSX: SRVI

Transmission of Half Yearly Report for the Period Ended June 30, 2025

Aug 28, 2025 at 6:39 AM UTC · Issued by Service Industries Ltd

GROWING AS ONE

Reports & Un-Audited Accounts For the Half Year Ended

June 30, 2025

Contents

02-03 Company Information 04-05 Director's Review Report

06 Independent Auditor's Review Report

Unconsolidated Condensed Interim Financial Statements

08-09 Unconsolidated Condensed Interim Statement of Financial Position

Unconsolidated Condensed Interim Statement of Profit or Loss
Unconsolidated Condensed Interim Statement of Comprehensive Income
Unconsolidated Condensed Interim Statement of Changes in Equity
Unconsolidated Condensed Interim Statement of Cash Flows

14-30 Selected Notes to the Unconsolidated Condensed Interim Financial Statements

Consolidated Condensed Interim Financial Statements

32-33 Consolidated Condensed Interim Statement of Financial Position

Consolidated Condensed Interim Statement of Profit or Loss
Consolidated Condensed Interim Statement of Comprehensive Income
Consolidated Condensed Interim Statement of Changes in Equity
Consolidated Condensed Interim Statement of Cash Flows

38-55 Selected Notes to the Consolidated Condensed Interim Financial Statements 56-57 Director's Report to the Shareholders (Urdu)

Company Information

Board of Directors Ms. Uzma Adil Khan

(Chairperson / Independent Director)

Mr. Arif Saeed

(Chief Executive Officer) Executive Director

Mr. Omar Saeed Executive Director Mr. Hassan Javed

Non-Executive Director Mr. Adil Matcheswala Non-Executive Director Mr. Ahsan Bashir Non-Executive Director Mr. Saif Javed Non-Executive Director

Mr. Muhammad Naeem Khan

Independent Director

Mr. Shahid Hussain Jatoi

Independent Director

Chief Financial Officer

Mr. Badar Ul Hassan

Company Secretary

Mr. Waheed Ashraf

Audit Committee

Mr. Muhammad Naeem Khan

(Chairman) Independent Director Mr. Adil Matcheswala (Member)

Non-Executive Director Mr. Saif Javed (Member)

Non-Executive Director

Human Resource and Remuneration Committee Ms. Uzma Adil Khan (Chairperson)

Independent Director Mr. Arif Saeed (Member)

Executive Director Mr. Ahsan Bashir (Member)

Non-Executive Director

Bankers

Allied Bank Limited Askari Bank limited Bank Al Habib Limited Bank Alfalah Limited Faysal Bank limited 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 of Pakistan 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 Pakistan 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 Presence

https://www.servisgroup.com

Directors' Review Report

The Directors of Service Industries Limited ("SIL" or the "Company") are pleased to present their review report together with the consolidated and unconsolidated condensed interim financial statements, for the half year ended June 30, 2025.

Financial Performance

The following table summarizes the key financial highlights for the half year ended June 30, 2025, compared to the corresponding period last year:

Particulars	Consolidated			Unconsolidated
	June 30, 2025	June 30, 2024	Increase / (Decrease) %	June 30, 2025	June 30, 2024	Increase / (Decrease) %
	(Rupees in thousand)		Increase / (Decrease) %	(Rupees in thousand)		Increase / (Decrease) %
Net Sales	70,292,205	61,037,978	15%	3,997,290	2,738,556	46%
Gross Profit	15,844,720	15,610,008	2%	485,773	541,355	(10%)
Dividend Income	-	-	-	965,660	817,750	18%
Operating Profit	8,432,397	9,759,921	(14%)	1,181,640	1,137,601	4%
Profit Before Tax and Levy	5,586,678	6,229,921	(10%)	461,629	120,340	283%
Net Profit After Tax	7,843,635	4,276,277	83%	334,502	47,035	611%
Earnings Per Share - Rs.	96.97	55.87	74%	7.12	1.00	611%

Financial Performance Highlights - Consolidated

For the half year ended June 30, 2025, the Company delivered robust consolidated performance. Revenue grew by 15% to Rs. 70.29 billion, compared to Rs. 61.04 billion in the same period last year. Gross profit increased by 2% year-on-year, while net profit after tax surged by 83% to Rs. 7.84 billion, up from Rs. 4.28 billion in the corresponding period.

Financial Performance Highlights - Unconsolidated

For the half year ended June 30, 2025, the Company, on an unconsolidated basis, reported an operating profit of Rs. 1.18 billion, reflecting steady growth from Rs. 1.13 billion in the corresponding period last year. Net profit before tax and levy rose sharply to Rs. 461 million, up from Rs. 120 million in the prior year. This substantial improvement was primarily driven by lower finance costs, and higher dividend income from associated companies.

The Company primarily functions as an investment holding entity, maintaining a strategically diversified portfolio across multiple sectors through its subsidiaries. Group operations spans manufacturing of tyres, tubes, and footwear, as well as trading activities supported by a nationwide retail network for footwear and activewear under the flagship brand "SERVIS". The Company's financial performance is closely aligned with the operational and financial results of its group companies. A detailed breakdown of the Company's investments in its subsidiaries is presented in Note 7 to the unconsolidated condensed interim financial statements annexed hereto.

In compliance with the requirements of International Financial Reporting Standards and applicable provisions of the Companies Act, 2017, the Company has annexed consolidated condensed interim financial statements alongside its unconsolidated condensed interim financial statements.

Dividend Income from Associated Companies

During the half-year ended 30 June 2025, SIL received substantial dividend income totaling Rs. 965 million from its subsidiaries i.e. Rs. 300 million from Service Tyres (Private) Limited, Rs. 11 million from Service Industries Capital (Private) Limited, and Rs. 654 million from Service Global Footwear Limited. The Company anticipates receiving additional dividend distributions before year-end, demonstrating the ongoing value creation from its strategic investment portfolio. This performance underscores our subsidiaries' strong operational results and the effectiveness of our capital allocation strategy.

Future Outlook

Pakistan's macro environment stabilized through the half-year ended 30 June 2025, with headline CPI easing to 3.2% YoY in June, while the SBP policy rate stood at 11% after cumulative cuts totaling 11% since mid-2024. The rupee was largely range-bound around PKR 280-285 per USD during Q2. Federal budget advanced fiscal consolidation, whereas broadening the tax base remains a critical unfinished agenda.

For our sectors, the backdrop is mixed but generally constructive. Large-scale manufacturing showed signs of sequential improvement into late H1, aided by an automotive rebound-a key demand driver for domestic tyre volumes-while export momentum in footwear remained positive through most of FY25 to-date. Stable FX and lower inflation support input-cost visibility; however, any upward pressures on input costs could compress margins. Pakistan remains in constructive dialogue with IMF, however external debt servicing still remains a challenge.

With inflation easing, a stable policy rate-potentially with room for further reduction-a steady currency, and recent progress in tariff negotiations with the United States, management anticipates a sustained recovery in domestic demand during H2 2025. Service Industries Limited expects to deliver resilient operating performance in the second half, supported by its diversified portfolio, strong cash-generation capabilities, and disciplined management of working capital.

Acknowledgement

The Directors would like to express their deep gratitude to the shareholders who have consistently demonstrated their trust in the Company and also acknowledge the continuous efforts made by the employees towards achievement of corporate objectives. We also thank our customers, suppliers and bankers for their continued support. We look forward to delivering promising results throughout the year.

For and on behalf of the board

Arif Saeed Omar Saeed

(Chief Executive) (Director)

August 26, 2025 Lahore.

Independent Auditor's Review Report

To the members of Service Industries Limited

Report on review of Unconsolidated Condensed Interim Financial Statements Introduction

We have reviewed the accompanying unconsolidated condensed interim statement of financial position of SERVICE INDUSTRIES LIMITED as at 30 June 2025 and the related unconsolidated condensed interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity, and unconsolidated condensed interim statement of cash flows, and notes to the unconsolidated condensed interim financial statements for the half year then ended (here-in-after referred to as the "unconsolidated condensed interim financial statements"). Management is responsible for the preparation and presentation of these unconsolidated condensed 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 unconsolidated condensed interim 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 unconsolidated condensed interim financial statements consists of making inquiries, primarily of persons responsible for 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 unconsolidated condensed 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.

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 second quarter accounts are subject to a limited scope review by the statutory auditors of the company. Accordingly, the figures of the unconsolidated condensed interim statement of profit or loss and unconsolidated condensed interim statement of comprehensive income for the three months period ended 30 June 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditor's review report is Syed Mustafa Ali.

RIAZ AHMAD & COMPANY

Chartered Accountants

Lahore

Date: August 26, 2025

UDIN: RR202510168ZLqilphEu

Unconsolidated Condensed Interim Financial Statements

Unconsolidated Condensed Interim Statement of Financial Position

As at June 30, 2025

(Un-audited) (Audited)

June December

30, 2025 31, 2024

Note (Rupees in thousand)

EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES Authorized share capital 100,000,000 (31 December 2024: 100,000,000) ordinary shares Rupee 10 each		1,000,000	1,000,000
Issued, subscribed and paid-up share capital 46,987,454 (31 December 2024: 46,987,454) ordinary shares of Rupees 10 each		469,874	469,874
Reserves		7,641,493	8,020,307
Total equity		8,111,367	8,490,181
LIABILITIES NON-CURRENT LIABILITIES
Long term financing		6,589,938	4,414,865
Lease liabilities		47,759	59,144
Employees' retirement benefit		94,530	97,916
CURRENT LIABILITIES		6,732,227	4,571,925
Trade and other payables		1,646,800	1,761,242
Accrued mark-up		228,592	199,759
Short term borrowings		2,063,791	6,047,096
Current portion of non-current liabilities		1,656,082	1,280,813
Taxation and levy - net		-	38,916
Unclaimed dividend		54,319	47,509
		5,649,584	9,375,335
Total liabilities Contingencies and commitments	5	12,381,811	13,947,260
TOTAL EQUITY AND LIABILITIES		20,493,178	22,437,441

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

Arif Saeed

(Chief Executive)

(Un-audited) (Audited)

June December

30, 2025 31, 2024

Note (Rupees in thousand)

ASSETS
NON-CURRENT ASSETS
Fixed assets	6	1,347,721	1,253,493
Investment property		182	182
Right-of-use assets		57,193	67,389
Intangible assets		2,824	3,762
Deferred income tax asset - net		143,330	72,966
Long term investments	7	14,169,694	14,180,668
Long term loans to employees		17,638	12,061
Long term security deposits		11,341	11,124
		15,749,923	15,601,645

CURRENT ASSETS
Stores, spares and loose tools	54,604	28,913
Stock in trade	2,155,254	1,679,031
Trade debts	885,700	1,820,704
Loans and advances	77,699	1,819,753
Taxation and levy - net	18,578	-
Trade deposits and prepayments	157,555	129,252
Other receivables	525,015	566,016
Short term investments	569,902	375,177
Cash and bank balances	298,948	416,950
	4,743,255	6,835,796
TOTAL ASSETS	20,493,178	22,437,441

Omar Saeed

(Director)

Badar Ul Hassan

(Chief Financial Officer)

Unconsolidated Condensed Interim Statement of Profit or Loss (Un-audited)

For the half year ended June 30, 2025

(Un-audited) (Un-audited)

Half Year Ended Quarter Ended

June June June June

30, 2025 30, 2024 30, 2025 30, 2024

Note (Rupees in thousand)

Revenue	8	3,997,290	2,738,556	1,542,786	1,448,336
Cost of sales	9	(3,511,517)	(2,197,201)	(1,247,205)	(1,134,117)
Gross profit		485,773	541,355	295,581	314,219
Distribution cost		(165,980)	(186,765)	(74,990)	(99,011)
Administrative expenses		(317,512)	(215,396)	(225,821)	(108,674)
Other expenses		(19,489)	(2,669)	(10,933)	5,223
		(502,981)	(404,830)	(311,744)	(202,462)
		(17,208)	136,525	(16,163)	111,757
Other income		1,198,848	1,001,076	765,937	418,935
Profit from operations		1,181,640	1,137,601	749,774	530,692
Finance cost		(720,011)	(1,017,261)	(343,719)	(618,484)
Profit / (loss) before levy and taxation		461,629	120,340	406,055	(87,792)
Levy		(29,876)	-	(29,876)	-
Profit / (loss) before taxation		431,753	120,340	376,179	(87,792)
Taxation		(97,251)	(73,305)	(106,552)	(257,190)
Profit / (loss) after taxation		334,502	47,035	269,627	(344,982)

Earnings / (loss) per share - basic and diluted (Rupees) 7.12 1.00 5.74 (7.34) The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Arif Saeed

(Chief Executive)

Omar Saeed

(Director)

Badar Ul Hassan

(Chief Financial Officer)

Unconsolidated Condensed Interim Statement of Comprehensive Income (Un-audited)

For the half year ended June 30, 2025

(Un-audited) (Un-audited)

Half Year Ended Quarter Ended June June June June

30, 2025 30, 2024 30, 2025 30, 2024

(8,505)	(13,191)	(4,894)	(5,549)
-	-	-	-

(Rupees in thousand)

Profit / (loss) after taxation Other comprehensive loss Items that will not be reclassified to profit or loss:	334,502	47,035	269,627	(344,982)
Deficit arising on remeasurement of investment at fair value through other comprehensive income - net of tax
Items that may be reclassified subsequently to profit or loss Other comprehensive loss for the period - net of tax	(8,505)	(13,191)	(4,894)	(5,549)
Total comprehensive income / (loss) for the period	325,997	33,844	264,733	(350,531)

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

Arif Saeed

(Chief Executive)

Omar Saeed

(Director)

Badar Ul Hassan

(Chief Financial Officer)

Unconsolidated Condensed Interim Statement of Changes in Equity (Un-audited)

Total

Revenue reserves

Total equity

Reserves

Share capital

For the half year ended June 30, 2025

Capital reserves

Sub total

Un-appropriated profit

General reserve

Sub Total

Reserve pursuant to the Scheme

Share of share premium reserve held by equity accounted investee

Share premium

Fair value reserve FVTOCI investment

Capital gains

12 Service Industries Limited

Balance as at 31 December 2023 - audited	469,874	102,730		34,247		21,217		23,935		927,163		1,109,292		1,558,208		5,180,805		6,739,013		7,848,305		8,318,179
Transactions with owners:
Final dividend for the year ended 31 December 2023 @ Rupees 10 per share	-	-		-		-		-		-		-		-		(469,875)		(469,875)		(469,875)		(469,875)
Credited to reserve on transfer of negative net assets to Service
Retail (Private) Limited - subsidiary company pursuant to the Scheme	-		-		-		-		-		-		-		-		322,992		322,992		322,992		322,992
Profit for the half year ended 30 June 2024	-		-		-		-		-		-		-		-		47,035		47,035		47,035		47,035
Other comprehensive loss for the half year ended 30 June 2024	-		-		(13,191)		-		-		-		(13,191)		-		-		-		(13,191)		(13,191)
Total comprehensive income for the half year ended 30 June 2024	-		-		(13,191)		-		-		-		(13,191)		-		47,035		47,035		33,844		33,844
Balance as at 30 June 2024 - un-audited	469,874		102,730		21,056		21,217		23,935		927,163		1,096,101		1,558,208		5,080,957		6,639,165		7,735,266		8,205,140
Transfer of share of share premium reserve held by equity accounted investee due to transfer of investment pursuant to the Scheme	-		-		-		-		(23,935)		-		(23,935)		-		23,935		23,935		-		-
Profit for the half year ended 31 December 2024	-		-		-		-		-		-		-		-		277,386		277,386		277,386		277,386
Other comprehensive income for the half year ended 31 December 2024	-		-		8,146		-		-		-		8,146		-		(491)		(491)		7,655		7,655
Total comprehensive income for the half year ended 31 December 2024	-		-		8,146		-		-		-		8,146		-		276,895		276,895		285,041		285,041
Balance as at 31 December 2024 - audited	469,874		102,730		29,202		21,217		-		927,163		1,080,312		1,558,208		5,381,787		6,939,995		8,020,307		8,490,181
Transactions with owners:
Final dividend for the year ended 31 December 2024 @ Rupees 15 per share	-		-		- - -									- -				(704,812)		(704,812)		(704,812)		(704,812)
Profit for the half year ended 30 June 2025	-		-		- - -									- -				334,502		334,502		334,502		334,502
Other comprehensive loss for the half year ended 30 June 2025	-		-		(8,505) - -									(8,505) -				-		-		(8,505)		(8,505)
Total comprehensive income for the half year ended 30 June 2025	-		-		(8,505) - -									(8,505) -				334,502		334,502		325,997		325,997
Balance as at 30 June 2025 - un-audited	469,874	102,730		20,697		21,217 -						927,163 1,071,807		1,558,208		5,011,478		6,569,686		7,641,493		8,111,367

Rupees in thousand

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

Arif Saeed

(Chief Executive)

Omar Saeed

(Director)

Badar Ul Hassan

(Chief Financial Officer)

Unconsolidated Condensed Interim Statement of Cash Flows (Un-audited)

For the half year ended June 30, 2025

Cash flow from operating activities

(Un-audited) (Un-audited)

June June

30, 2025 30, 2024

Note (Rupees in thousand)

Cash generated from operations	10	2,367,881	316,503
Finance cost paid		(684,322)	(1,027,969)
Income tax and levy paid		(252,516)	(213,027)
Staff retirement benefits paid		(13,167)	(24,173)
Long term loans to employees - net		(5,041)	(9,800)
Long term security deposits - net		(2,269)	15,203
Net cash generated from / (used in) operating activities		1,410,566	(943,263)
Cash flows from investing activities
Capital expenditure on fixed assets		(177,969)	(112,816)
Proceeds from disposal of fixed assets		11,711	12,907
Long term investments made		-	(344,570)
Proceeds from disposal of short term investment		1,047,919	697,658
Short term investment made		(1,240,919)	-
Return on short term investments received		14,236	13,858
Dividend received		965,660	817,750
Net cash from investing activities		620,638	1,084,787
Cash flows from financing activities
Long term financing obtained		3,000,000	112,498
Long term financing repaid		(453,127)	(1,157,736)
Short term borrowings - net		(3,983,305)	3,611,144
Lease liabilities - net		(14,772)	(13,597)
Dividend paid		(698,002)	(465,228)
Net cash (used in) / from financing activities		(2,149,206)	2,087,081
Net (decrease) / increase in cash and cash equivalents		(118,002)	2,228,605
Cash and cash equivalents at the beginning of the period		416,950	1,813,676
Cash transferred to subsidiary companies pursuant to the Scheme		-	(1,700,710)
Cash and cash equivalents at the end of the period		298,948	2,341,571

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

Arif Saeed

(Chief Executive)

Omar Saeed

(Director)

Badar Ul Hassan

(Chief Financial Officer)

The Company and its Operations
Service Industries Limited (the Company) was incorporated as a private limited Company on 20 March 1957 in Pakistan under the Companies Act, 1913 (now Companies Act, 2017), was converted into a public limited Company on 23 September 1959 and got listed on 27 June 1970. The shares of the Company are quoted on Pakistan Stock Exchange Limited. The registered office of the Company is located at 2-Main Gulberg, Lahore. The principal activities of the Company are purchase, manufacture and sale of footwear and technical rubber products and sale and purchase of tyres and related material. These unconsolidated condensed interim financial statements pertain to Service Industries Limited as an individual entity.
Basis of preparation
1. These unconsolidated condensed interim financial statements 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; and
  - 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.
2. These unconsolidated condensed interim financial statements do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the annual audited financial statements of the Company for the year ended 31 December 2024. These unconsolidated condensed interim financial statements are un-audited, however, have been subjected to limited scope review by the auditors and are being submitted to the shareholders as required by the Listed Companies (Code of Corporate Governance) Regulations, 2019 and Section 237 of the Companies Act, 2017.
Material accounting policy information
The material accounting policy information and methods of computations adopted for the preparation of these unconsolidated condensed interim financial statements are same as applied in the preparation of the preceding audited annual published financial statements of the Company for the year ended 31 December 2024.
1. Critical accounting estimates and judgments

The preparation of these unconsolidated condensed interim financial statements in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

During preparation of these unconsolidated condensed interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual financial statements of the Company for the year ended 31 December 2024.

(Un-audited) (Audited)

June December

30, 2025 31, 2024

(Rupees in thousand)

4.	Long term financing Opening balance	5,673,861	11,014,638
	Transferred to subsidiary companies pursuant to the Scheme: Service Tyres (Private) Limited - subsidiary company	-	(3,695,704)
	Service Retail (Private) Limited - subsidiary company	-	(800,000)
	Add: Obtained during the period / year	3,000,000	112,498
	Add: Transferred from Service Retail (Private) Limited - subsidiary company	-	800,000
	Less: Repaid during the period / year	(453,127)	(1,757,571)
		8,220,734	5,673,861
	Less: Current portion shown under current liabilities	(1,630,796)	(1,258,996)
		6,589,938	4,414,865

Contingencies and commitments
1. Contingencies
  There is no significant change in the status of contingencies as disclosed in the preceding audited annual published financial statements of the Company for the year ended 31 December 2024 except as follows:
  1. The Deputy Commissioner Inland Revenue (DCIR) initiated sales tax audit for the year 2013-2014 on 28 December 2017, in which demand of Rupees 102.465 million (31 December 2024: 102.465 million) was created. The Company filed appeal with Commissioner Inland Revenue (CIR) (Appeals) on 18 January 2018, who confirmed the demand of Rupees 7.328 million (31 December 2024: 7.328 million) and remanded back certain charges to the tune of Rupees 95.137 million (31 December 2024: 95.137 million). The Company filed an appeal with Appellate Tribunal Inland Revenue (ATIR) on 14 March 2018, against the decision of CIR (Appeals) which is pending for hearing. Furthermore, the Company filed an application on 07 September 2018, for stay of recovery and Honourable Lahore High Court, Lahore, has granted stay in said case. Later on, the proceedings against remanded back portion were initiated by DCIR and order in this regard has been issued dated 30 June 2025 in which DCIR created the same demand of Rupees 95.137 million. The Company is in process to file an appeal against order of DCIR.
  2. DCIR concluded sales tax audit for the periods from January 2020 to December 2020 and charged sales tax to the tune of Rupees 16.824 million (31 December 2024: 16.824 million) through the order dated 28 June 2024 on the grounds of inadmissible input tax on purchase, suppression of sales with the
    figures as per the financial statements and other issues. The Company has filed an appeal before the ATIR on 24 July 2024. On 13 March 2025, the ATIR has remanded the case back to the DCIR which is pending adjudication.
  3. Guarantees issued in ordinary course of business through banks are of Rupees 2,008.804 million (31 December 2024: Rupees 1,528.875 million).
  4. Post dated cheques have been issued to custom authorities in respect of duties amounting to Rupees 42.641 million (31 December 2024: Rupees 45.237 million) on imported material availed on the basis of consumption and export plans.
2. Commitments
  1. Contracts for capital expenditure are approximately of Rupees Nil (31 December 2024: Rupees 134.309 million).
  2. Letters of credit other than capital expenditure are of Rupees 12.341 million (31 December 2024: Rupees 3,633.754 million).
  3. The Company has obtained vehicles under ijarah arrangements from Bank AL Habib Limited for a period of four years. Future monthly Ujrah payments under Ijarah are as follows:

(Un-audited) (Audited)

June December

30, 2025 31, 2024

Note (Rupees in thousand)

Not later than one year		69	760
6. Fixed assets
Operating fixed assets	6.1	1,313,872	1,198,417
Capital work-in-progress	6.2	33,849	55,076
		1,347,721	1,253,493
6.1 Operating fixed assets
Opening net book value		1,198,417	11,149,760
Transferred to subsidiary companies pursuant to the Scheme
Service Tyres (Private) Limited - subsidiary company		-	(8,717,781)
Service Retail (Private) Limited - subsidiary company		-	(1,310,305)
Add: Cost of additions during the period / year	6.1.1	199,196	241,385
Less: Book value of disposals / adjustment during the period / year	6.1.2	(7,202)	(23,298)
Less: Depreciation charged during the period / year		(76,539)	(141,344)
Closing net book value		1,313,872	1,198,417

(Un-audited) (Audited)

June December

30, 2025 31, 2024

Note (Rupees in thousand)

6.1.1 Cost of additions during the period / year Buildings on freehold land	2,205	48,234
Plant and machinery	47,718	7,836
Furniture, fixture and fittings	194	3,876
Vehicles	95,266	109,389
Service equipment	53,813	64,611
Leasehold improvements	-	7,439
	199,196	241,385
6.1.2 Book value of disposals / adjustment during the period / year Cost of disposals / adjustment Freehold land - transferred to investment property	-	182
Buildings on freehold land	295	-
Plant and machinery	2,660	18,949
Furniture, fixture and fittings	17	-
Vehicles	6,668	15,834
Service equipment	9,344	9,429
	18,984	44,394
Less: Accumulated depreciation	(11,782)	(21,096)
Book value of disposals / adjustment during the period / year	7,202	23,298
6.2 Capital work-in-progress Buildings on freehold land	13,043	-
Plant and machinery	-	46,866
Advances against purchase of vehicles	20,806	8,210
	33,849	55,076
7. Long term investments Investments in subsidiary companies - at cost 7.1	14,125,899	14,125,899
Investments in joint ventures 7.2	-	-
Other investment - at FVTOCI 7.3	43,795	54,769
	14,169,694	14,180,668

(Un-audited) (Audited) June December 30, 2025 31, 2024

Note (Rupees in thousand)

Investments in subsidiary companies - at cost
Service Industries Capital(Private) Limited - unquoted 740,827 740,827
74,082,700 (31 December 2024: 74,082,700) fully paid ordinary shares of Rupees 10 each
Equity held 100% (31 December 2024: 100%)
Service Global Footwear Limited - quoted 7.1.1 3,026,184 3,026,184
163,550,000 (31 December 2024: 163,550,000 ) fully paid ordinary shares of Rupees 10 each
Equity held 79.37% (31 December 2024: 79.37%)
Service LongMarchTyres(Private) Limited - unquoted 3,179,430 3,179,430
316,539,659 (31 December 2024: 316,539,659) fully paid ordinary shares of Rupees 10 each
Equity held 22.09% (31 December 2024: 22.09%)
ServiceTyres(Private) Limited - unquoted 6,667,243 6,667,243
666,724,300 (31 December 2024: 666,724,300) fully paid ordinary shares of Rupees 10 each
Equity held 100% (31 December 2024: 100%)
Service Retail(Private) Limited - unquoted 505,000 505,000
50,500,000 (31 December 2024: 50,500,000) fully paid ordinary shares of Rupees 10 each
Equity held 100% (31 December 2024: 100%)
SILGULF FZE - unquoted 7,215 7,215
1 (31 December 2024: 1) fully paid share of UAE Dirhams 150,000
Equity held 100% (31 December 2024: 100%)
14,125,899 14,125,899
1. Subsequent to the reporting date, the Board of Directors of the Company in its meeting held on 17 July 2025 decided to sell 8,683,920 shares of Service Global Footwear Limited - subsidiary company through off market trade to comply with the requirements of clause 5.4.1 of the Rule Book of Pakistan Stock Exchange Limited. Resultantly, the aforesaid number of shares have been disposed off on 22 July 2025.

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