Zil LimitedPSX: ZIL

Transmission of Quarterly Financial Statements for the Period Ended 30/06/2025

Aug 29, 2025 at 9:37 AM UTC · Issued by ZIL Limited

Content

Company Information

Board of Directors

Dr. Salomon Jacobus Van Rooijen Chairman, Non-Executive Director

Mr. Muhammad Irfan-ul-Haq

Executive Director & Chief Executive Officer

Mrs. Feriel Ali Mehdi Non-Executive Director

Mr. Mubashir Hasan Ansari Non-Executive Director

Mr. M. Salman Husain Chawala Non-Executive Director

Mr. Ahsan Rashid

Independent, Non-Executive Director

Mrs. Faeyza Khan Faheem Independent, Non-Executive Director

Board Audit Committee

Mrs. Faeyza Khan Faheem Chairperson

Mr. Mubashir Hasan Ansari Member

Mr. M. Salman Husain Chawala Member

Human Resource and Remuneratoin Committee

Mr. Ahsan Rashid Chairman

Mr. Muhammad Irfan-ul-Haq Member

Mr. M. Salman Husain Chawala Member

Board Nomination Committee

Mrs. Feriel Ali Mehdi Chairman

Dr. Salomon Jacobus Van Rooijen Member

Mr. Muhammad Irfan-ul-Haq Member

Statutory Auditors

BDO Ebrahim & Co. Chartered Accountants

Chief Financial Officer

Mr. Ata-ur-Rehman Shaikh

Company Secretary

Mr. Muhammad Shahid

Secretary HR&R Committee

Mr. Aneel Arshad Ali

Head of Internal Audit

Mr. Syed Abid Raza Rizvi

Legal Advisors

A. Qadir & Company

Registered Office

Ground Floor, Bahria Complex III,

M. T. Khan Road, Karachi - Pakistan. Tel: +9221 35630251-60

Fax: +9221 35630266

Website: https://www.zil.com.pk Email: Info@zil.com.pk

Factory

Link Hali Road, Hyderabad - 71000

Bankers

Dubai Islamic Bank Habib Bank Limited MCB Bank Limited Meezan Bank Limited

National Bank of Pakistan Limited Soneri Bank Limited

United Bank Limited Standard Chartered Bank Bank of Khyber

Shares Registrar

THK Associates (Pvt) Limited

Plot No. 32, Jami Commercial Street 2, D.H.A., Phase VII, Karachi.

Ph: (021) 111-000-322

Half Yearly Report June 30, 2025

Directors' Review

The Board of Directors of ZIL Limited is pleased to present the Company's financial results for the half-year ended June 30, 2025.

Operating Performance

The Company achieved 6% revenue growth compared to the corresponding period last year, with net sales of PKR 3.2 billion. Sales rebounded strongly in the second quarter, reflecting a solid recovery and a return to the Company's growth trajectory.

To counter the impact of category challenges stemming from price changes and broader macroeconomic pressures, including inflation and subdued consumer sentiment, the Company implemented effective shopper and consumer initiatives. These actions supported a positive turnaround and drove strong topline and bottom-line growth.

Our pricing strategy, grounded in market benchmarking, along with targeted cost optimization measures, contributed significantly to sustaining profitability. The Company reported a gross profit of PKR 1,025 million, representing an improvement of 499 basis points over the previous year. We remain focused on monitoring market dynamics closely and adjusting our business strategies to preserve competitiveness and long-term value creation.

In line with our growth objectives, marketing investments were substantially increased to support and enhance sales performance. This trend is expected to continue in the coming periods. Operating expenses rose mainly due to investment in human resources, especially in sales and distribution. Consequently, the Company achieved an after-tax profit of PKR 32 million.

Financial Performance at a Glance

	Jan to Jun
	2025	2024
	Rs. in Millions
Net Sales	3,183	3,012
Gross Profit	1,025	820
Gross Profit %	32.2%	27.2%
Profit/(Loss) after taxation	32	(3)
Earnings per share (Rs.)	5.19	(0.57)

Future Outlook

While certain macroeconomic indicators, such as relative stability and the continuation of low interest rates by the State Bank of Pakistan, provide cautious optimism, significant risks remain. Volatility in the exchange rate, absence of a sustainable long-term economic roadmap, fluctuations in global commodity prices, and geopolitical conflicts could adversely affect business conditions.

Half Yearly Report June 30, 2025

The Company's management remains proactive in assessing these challenges and responding with agility to safeguard operations and performance. Key focus areas include:

Value chain optimization
Brand building and portfolio expansion
New product development
Consumer pricing competitiveness
Enhancing customer and consumer satisfaction

These initiatives are expected to strengthen market penetration and ensure sustainable growth.

Acknowledgement

The Board would like to express its sincere appreciation to the Company's leadership team and employees for their commitment and dedication, which have been instrumental in driving organizational performance. We also extend our gratitude to our valued business partners, including vendors, financial institutions, distributors, consumers, and other stakeholders, for their continued trust and support.

For and on behalf of the Board of Directors

Karachi: August 28, 2025

Muhammad Irfan-ul-Haq

CEO / Director

Half Yearly Report June 30, 2025

Independent Auditor's Report on Review of Condensed Interim Financial Statements to the Members of ZIL Limited

Introduction

We have reviewed the accompanying condensed interim statement of financial position of ZIL LIMITED ("the Company") as at June 30, 2025 and the related condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity, 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 as the "interim financial statements"). Management is responsible for the preparation and fair presentation of these 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 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 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 condensed interim financial statements are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other matters

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 June 30, 2025 have not been reviewed by us.

The engagement partner on the review resulting in this independent auditors' report is Tariq Feroz Khan.

KARACHI

BDO EBRAHIM & Co

DATED: August 29, 2025 CHARTERED ACCOUNTANTS UDIN: RR202510166DvZmq0WIO

Half Yearly Report June 30, 2025

Condensed Interim Statement of Financial Position (Un-audited)

As at June 30, 2025 June 30, December 31

2025 2024

(Un-audited) (Audited)

ASSETS Note (Rs. in '000)

NON CURRENT ASSETS

Property, plant and equipment 7 636,023 1,466,102

Intangible asset 8 10,414 5,795

Investment property 9 882,303 -

Long term deposits 33,952 23,743

Long term loans to employees 773 873

1,563,465 1,496,513

CURRENT ASSETS

Stores and spares

Stock-in-trade 10

Trade debts 11

Advances, deposits, prepayments and other receivables 12

Advance taxation

Short term investments 13

Cash and bank balances 14

901,524

229,887

39,800

146,292

60,000

158,730

283

629,650

279,170

12,173

117,140

40,000

151,877

1,536,283

Assets classified as held for sale 15 488,845

TOTAL ASSETS 3,588,593

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital

40,000,000 (December 31, 2024: 40,000,000)

ordinary shares of Rs. 10/- each 400,000

Issued, subscribed and paid-up capital 61,226

Capital reserves

1,230,293

488,845

3,215,651

400,000

61,226

Surplus on revaluation of property, plant and equipment Revenue reserves

General reserves Unappropriated profit

1,023,038

6,000

301,959

1,033,587

6,000

274,940

1,330,997

NON-CURRENT LIABILITIES

1,314,527

Long term loan 16

Deferred taxation Deferred staff liabilities Lease liabilities

861

197,578

217,393

152,002

2,223

212,170

192,489

117,329

567,834

CURRENT LIABILITIES

524,211

Trade and other payables 17

Current maturity of long term liabilities Contract liabilities

Short term borrowings 18

Taxation

Unclaimed dividends

1,353,863

37,232

145,779

31,846

58,237

1,579

1,034,935

26,003

102,685

31,846

118,733

1,485

1,628,536

CONTINGENCIES AND COMMITMENTS 19

TOTAL EQUITY AND LIABILITIES 3,588,593

1,315,687

3,215,651

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Half Yearly Report June 30, 2025

Director

Sales - net	20	3,183,342	3,012,097	1,973,843	1,602,715
Cost of sales	21	(2,158,121)	(2,192,286)	(1,336,558)	(1,162,632)
Gross profit		1,025,221	819,811	637,285	440,083
Selling and distribution
expenses		(664,180)	(543,882)	(427,525)	(332,604)
Administrative expenses		(237,982)	(196,813)	(133,494)	(94,237)
		(902,161)	(740,695)	(561,018)	(426,841)
Other income		18,186	9,726	15,959	2,371
Operating profit		141,246	88,843	92,225	15,613
Other charges		(26,610)	(1,996)	(21,127)	1,991
Financial charges		(47,824)	(59,916)	(23,858)	(29,376)
Profit/(loss) before levy and		(74,434)	(61,912)	(44,985)	(27,384)
minimum tax differential		66,812	26,931	47,240	(11,771)
Levy and minimum
tax differential	22	-	(21,943)	1,310	(19,733)
Profit/(loss) before tax Taxation		66,812	4,988	48,550	(31,504)
Current - for the period		(49,627)	(15,710)	(34,742)	(302)
- prior the period		-	(463)	-	(435)
Deferred		14,592	7,701	16,846	3,532
Profit/(loss) after tax		(35,035)	(8,472)	(17,896)	2,796
for the period		31,777	(3,484)	30,654	(28,708)

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

For the Half Year ended June 30, 2025

Half year ended

Quarter ended

June 30, June 30, June 30, June 30,

2025 2024 2025 2024

Note --------------------------- (Rupees in '000) --------------------------

Earnings/(loss) per share -basic and diluted (Rupees)

5.19

(0.57)

5.01

(4.69)

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

Half Yearly Report June 30, 2025

Profit/(loss) for the period	31,777	(3,484)	30,654	(28,708)
Other comprehensive income/ (loss) for the period	-	-	-	-
Total comprehensive
income/(loss) for the period	31,777	(3,484)	30,654	(28,708)

Condensed Interim Statement of Comprehensive Income (Un-audited) For the Half Year ended June 30, 2025

Half year ended

Quarter ended

June 30, June 30, June 30, June 30,

2025 2024 2025 2024

--------------------------- (Rupees in '000) --------------------------

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

Half Yearly Report June 30, 2025

Depreciation and amortization Provision of slow moving obsolete stock	21	77,370 137	57,267 -
Provision for doubtful debts	11.1	29,251	-
Gratuity expense		27,500	36,589
Profit on bank deposit		(427)	(2,348)
Dividend income		(185)	(5,034)
Gain on early termination of lease		(1,166)	-
Finance costs		47,824	59,916
Loss on disposal of operating fixed assets		411	453

Stores and Spares Stock-in-trade	10	233 (272,011)	(3) 112,752
Trade debts	11	20,032	(56,697)
Loans to employees		299	783
Long term deposits		(10,209)	(1,650)
Advances, deposits, prepayments and other receivables	12	(27,826)	16,249
		(289,482)	71,434
Increase/(decrease) in current liabilities:
Contract liabilities		43,094	19,607
Trade and other payables	17	318,702	(43,242)
Cash generated from operations		319,840	221,572
Taxes paid		(139,275)	(36,563)
Staff gratuity paid		(2,597)	(22,231)
Dividend received		185	5,034
Financial charges paid		(35,342)	(54,393)
		(177,029)	(108,153)
Net cash flows from operating activities		142,811	113,419
CASH FLOWS FROM INVESTING ACTIVITIES
Addition in capital expenditure	7.3.1	(89,181)	(105,186)
Short term investments		(20,000)	70,000
Proceeds from disposal of operating fixed assets		12,486	4,990
Profit received on bank deposits		427	2,348
Net cash flows used in investing activities		(96,268)	(27,848)
CASH FLOWS FROM FINANCING ACTIVITIES Lease rentals paid		(24,266)	(18,226)
Long term loan repaid	16	(212)	(103,686)
Short term loan received		-	31,847
Dividend paid		(15,212)	(12,171)
Net cash used in financing activities		(39,690)	(102,236)
Net increase/(decrease) in cash and cash equivalents		6,853	(16,665)
Cash and cash equivalents at the beginning of the period		151,877	127,293
Cash and cash equivalents at the end of the period		158,730	110,628

Condensed Interim Statement of Cash Flow (Un-audited)

For the Half Year ended June 30, 2025

June 30,

2025 2024

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustments for:

Note (Rs. in '000)

66,812 26,930

Operating cashflows before changes in working capital Working capital changes

Decrease/(increase) in current assets:

180,714 146,843

247,526 173,773

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Half Yearly Report June 30, 2025

Director

Condensed Interim Statement of Changes in Equity (Un-audited) For the Half Year ended June 30, 2025

Capital Reserves

Revenue Reserves

Issued, subscribed and paid up capital

of property, plant and equipment

Surplus on General (Accumulated revaluation Reserve loss) /

Unappropriated profit

Total

(Rs. in '000)

Balance as at January 01, 2024 - (audited)

61,226

958,870

6,000

198,758

1,224,854

Total comprehensive income for the period

Loss for the period

Other comprehensive income (OCI) Transferred from surplus on revaluation of property, plant and equipment - net of tax (incremental depreciation)

(3,485)

(8,051)

8,051

4,566

-(3,485)

Dividend paid for the year ended December 31, 2023

(12,245)

Balance as at June 30, 2024 (unaudited)

61,226

950,819

6,000

191,079 1,209,124

Balance as at January 01, 2025 (audited)

61,226

1,033,587

6,000

274,940 1,375,753

Total comprehensive income for the period

Profit for the period

Other comprehensive income (OCI) Transferred from surplus on revaluation of property, plant and equipment - net of tax (incremental depreciation)

31,777

(10,549)

10,549

42,326

-31,777

Dividend paid for the year ended December 31, 2024

(15,307)

Balance as at June 30, 2025 (unaudited)

61,226

1,023,038

6,000

301,959 1,392,223

The annexed notes from 1 to 27 form an integral part of these condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

Half Yearly Report June 30, 2025

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025

STATUS AND NATURE OF BUSINESS
ZIL Limited ("the Company") was incorporated as a private limited company in February 1960 under the Companies Act, 1913 (repealed Companies Ordinance, 1984 and now the Companies Act, 2017) and was subsequently converted into a public limited company in November 1986. Its shares are listed on the Pakistan Stock Exchange. The principal activity of the Company is to manufacture and sale of home and personal care products.
During the period, TWF Holding L.L.C-FZ ("the Holding Company") had acquired a total of 5,194,514 ordinary shares of Rs. 10 each of the Company, representing 84.84% of the total issued share capital, through a share purchase agreement in March 2025 entered into with M/s New Future Consumer International General Trading L.L.C at Rs. 297.50. The registered office of the Holding Company is situated at Meydan Grandstand, 6th Floor, Meydan Road, Nad Al Sheba, Dubai, United Arab Emirates.
GEOGRAPHICAL LOCATION AND ADDRESSES OF BUSINESS UNITS

Location Address

Head Office Bahria Complex III , Plot No. MISC-2, M.T. Khan Road, Karachi.

Land

Link Hali Road, Hyderabad (Refer note 15 to these condensed interim financial statements).

Land

Plot No G-1 Located In Chemical Area Of Eastern Industrial Zone,

Port Qasim Authority, Karachi. (Refer note 9 to these condensed interim financial statements).

Warehouse Plot No. C-6, SITE Area, Near Mirpurkhas Road, S.I.T.E., Hyderabad. Warehouse 1st Part of Plot No. 21-B, Industrial Estate, Multan.

Warehouse Khewat No. 55, situated at 16-KM, Multan Road, Lahore.

Regional sales Naeema Azam Tower 1st floor Office No 08. Commercial Area office -Central 2 Phase I Industrial Estate. Multan

Multan

Regional sales Plaza 52, Marina commercial, Cornice road, Phase 4, Bahria Town, office-North Islamabad.

Quality assurance 1st Floor, Pardesi House, Plot No. 2/1, RY-16, Old Queens lab & Regional Road, Karachi

Sales office south

Corporate office 59/A, 31, C-II, Gulberg III, Lahore. & Regional Sales

office Central 1

Half Yearly Report June 30, 2025

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025

BASIS OF PREPARATION
1. Statement of compliance
  These 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 Standard Board (IASB) as notified under the Companies Act, 2017;
  - Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act, 2017; and
  - Provisions of and directives issued under the Companies Act, 2017;
    Where provisions of and directives issued under the Companies Act, 2017 differ from the (IAS) 34, 'Interim Financial Reporting' and IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.
    These condensed interim financial statements do not include all the information and disclosures required for full annual financial statements and should be read in conjunction with the annual audited financial statements of the Company as at and for the year ended December 31, 2024, which have been prepared in accordance with accounting and reporting standards as applicable in Pakistan. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial statements.
    The comparative statement of financial position presented in these condensed interim financial statements has been extracted from the annual audited financial statements of the Company for the year ended December 31, 2024, whereas the comparative condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of cash flows and condensed interim statement of changes in equity are extracted from the un-audited condensed interim financial statements for the half year ended June 30, 2024.
    The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the quarters ended June 30, 2025 and June 30, 2024 and notes forming part thereof have not been reviewed by the auditors of the Company, as they have reviewed the cumulative figures for the half-years ended June 30, 2025 and June 30, 2024.
2. Basis of measurement
  These condensed interim financial statements have been prepared under the historical cost convention, except otherwise stated.
  12
  Half Yearly Report June 30, 2025
  
  Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025
3. Functional and presentation currency
  This condensed interim financial information are presented in Pakistani rupee ('Rupees' or 'Rs.') which is the functional and presentation currency of the Company.
ACCOUNTING STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROVED ACCOUNTING STANDARDS
1. Standards, amendments and interpretations to accounting standards that are effective in the current period
  There were certain amendments to accounting and reporting standards which became mandatory for the Company during the period. However, the amendments did not have any significant impact on the financial reporting of the Company and, therefore, not detailed in these condensed interim financial statements.
2. Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company
  There are various standards, amendments and interpretations to the accounting and reporting standards as applicable in Pakistan which are not yet effective in the current accounting period. These are not likely to have any significant impact on the Company's financial reporting and, therefore, have not been detailed in these condensed interim unconsolidated financial statements.
MATERIAL ACCOUNTING POLICY INFORMATION
The accounting policies adopted and methods of computation followed in the preparation of these condensed interim financial statements are same as those for the preceding annual financial statements for the year ended December 31, 2024. However, during the period the Company has adopted the following:
1. Investment property
  Investment property, which is property held to earn rentals and/or for capital appreciation, including property under construction for such purposes, is measured initially at its cost, including transaction costs. Subsequent to initial recognition, investment property measured at cost less its accumulated depreciation and impairment loss (if any).
2. Rental income
  Rental income from investment property is recognised as revenue on charge over the term of the tenancy.
ESTIMATES AND JUDGMENTS

The preparation of condensed interim financial statements requires management to make certain judgements, 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. The significant judgments made by management in applying the Company's accounting policies and key sources of estimation of uncertainty are the same as those that were applied to the financial statements for the year ended December 31, 2024.

Half Yearly Report June 30, 2025

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025 June 30, December 31, Note 2025 2024 (Un-audited) (Audited) 7 PROPERTY, PLANT AND EQUIPMENT (Rs. in '000) Owned assets 7.1 379,271 1,286,088 Right-of-use assets 7.2 167,455 128,917 Capital work in progress 7.3 89,297 51,097
636,023 7.1 Owned assets Net carrying value basis Opening net book value 1,286,088 Transfer from capital work in progress during the period / year (at cost) 7.1.1 44,982 Revaluation - 1,331,070 Disposals during the period / year 7.1.2 (12,668) Depreciation charged during the period / year (42,844) Transferred to investment property (896,287) Reversal of revaluation - (951,799) Closing net book value 379,271	1,466,102

	1,046,498 196,432 83,092
	1,326,022
	(15,697) (98,438) -74,201
	(39,934)
	1,286,088
7.1.1 Details of transfer from CWIP (at cost) during the period / year are as follows: Plant and machinery 3,086 8,067 Furniture and fixtures 5,843 17,751 Dies and change part - 1,100 Vehicles 34,053 151,990 Computers 2,000 17,524
44,982 7.1.2 Details of deletion (NBV) during the period / year are as follows: Plant and machinery 269 Computers 273 Vehicles 12,126 12,668	196,432
	195 438 15,064
	15,697

Half Yearly Report June 30, 2025

Net carrying value basis Opening net book value		128,917	73,700
Additions (at cost) during the period / year		61,280	81,086
Disposal during the period / year		(3,586)	-
Depreciation charged during the period / year		(19,156)	(25,869)
Closing net book value		167,455	128,917
7.3 Capital work in progress
Building on leasehold land		40,076	40,076
Vehicles		33,834	9,422
Plant, machinery and equipment		6,812	239
Furniture & Fixtures		8,057	852
Computers		518	508
	7.3.1	89,297	51,097
7.3.1 Movement in capital work in progress
Balance at the beginning of the period / year		51,097	49,873
Addition during the period / year		83,182	197,656
Transferred to operating fixed asset		(44,982)	(196,432)
Balance at the end of the period / year		89,297	51,097
8 INTANGIBLE ASSET
Operating intangible asset - net carrying value		4,414	5,795
Capital work in progress		6,000	-
		10,414	5,795
9 INVESTMENT PROPERTY
Cost		896,287	-
Accumulated amortization		(13,984)	-
Carrying amount as at 30 June		882,303	-
Remaining lease term (in years)		31	-

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025

June 30, December 31,

Note 2025 2024

(Un-audited) (Audited)

7.2

Right-of-use assets

(Rs. in '000)

Half Yearly Report June 30, 2025

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025

9.1 The Company entered into a rental arrangement on April 24, 2025 effective from February 01, 2025 with its associated company against its leasehold property measuring 11 acres situated in Chemical Area of Eastern Zone of Port Qasim Authority. As a result, the property has been reclassified from owner occupied leasehold property to Investment Property. In line with requirement of IAS-40 this property has been transferred at its fair value at the date of this arrangement. Subsequent to the transfer, management has opted to apply the cost model for its subsequent measurement and so the property is to be amortised at its remaining lease term. The fair market value of this investment property of amounting to Rs. 896.287 million as of the date of its last valuation.

June 30, December 31,

2025 2024

(Un-audited) (Audited)

(Rs. in '000)

10 STOCK IN TRADE

Raw material

In hand 329,530 197,004

In transit 2,605 27,507

332,135

Packing material 105,249

Finished goods 469,376

906,760

Provision for slow moving inventory (5,236)

901,524

TRADE DEBTS
Unsecured - considered good 229,887
Considered doubtful 38,648
268,535
Less: allowance for expected credit loss (38,648)
229,887
1. Allowance for expected credit loss

Opening balance 9,397

Allowance charge during the period / year 29,251

Closing balance 38,648

224,511

54,532

355,706

634,749

(5,099)

629,650

279,170

9,397

288,567

(9,397)

279,170

9,397

Half Yearly Report June 30, 2025

	Considered good - unsecured Advance to employees	1,562	1,761
	Advance to suppliers and contractors	19,765	7,367
	Prepayments	17,168	2,141
	Others receivables	1,305	904
	Considered doubtful	39,800	12,173
	Advances to suppliers and contractors	803	803
	Less: allowance for expected credit loss	(803)	(803)
		- 39,800	- 12,173
13	SHORT TERM INVESTMENTS
	At fair value through profit or loss: Meezan Cash Fund	13.1 60,000	40,000
		60,000	40,000

14	CASH AND BANK BALANCES
	Cash in hand Cash with banks		525	429
	- current / accounts		151,495	141,693
	- saving accounts	14.1	6,710	9,755
			158,205	151,448
			158,730	151,877

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025

June 30, December 31,

Note 2025 2024

(Un-audited) (Audited)

(Rs. in '000)

12 ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES

13.1 This represent investment in Meezan Cash Fund having total number of units at 1,167,312 units (December 31, 2024: 697,883 units of Meezan Sovergin Fund) having net assets value (NAV) of Rs. 51.4.

14.1 This carries profit rate at ranges from 9.5% to 10.5% (December 31, 2024: ranges

from 11.5% to 20.5%) per annum.

Half Yearly Report June 30, 2025

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025 June 30, December 31, Note 2025 2024 (Un-audited) (Audited) (Rs. in '000) 15 ASSETS CLASSIFIED AS HELD FOR SALE Freehold land 400,040 400,040 Building on freehold land 23,378 23,378 Plant, machinery and equipment 65,427 65,427
488,845	488,845
15.1 On January 12, 2022, the Board of Directors in their meeting discussed and reviewed the operational difficulties of existing manufacturing facility (comprising of freehold land, building on freehold land, plant and machinery and equipment, capital spares, furniture and fixtures, store and spares tools and other related assets) located at link hali road, Hyderabad due to housing society built in its surrounding area and approved the closure of factory, offering of Voluntarily Separation Scheme to factory staff and shifting of all manufacturing operations to toll manufacturing through third party arrangements. The above decisions had been approved by the shareholders in an extraordinary general meeting held on November 30, 2022 under section 183 (3) of Companies Act, 2017. On December 08, 2023, in the Extra Ordinary General Meeting by the shareholders of the Company has re-approved the disposal of same. Accordingly, the stated assets have been classified as assets held for sale. The sale of manufacturing facility was expected to be completed within a year from the date of classification. However, due to depressed economic conditions, the availability of prospective buyers offering respectable prices remain restricted and factory assets cannot be sold during the period despite the excessive efforts of the management of the Company. Factory disposal still in progress. Furthermore, in an EOGM held on December 12, 2024, the shareholders reaffirmed their approval for the disposal of the remaining assets. The Company entered into a contract with a buyer for the disposal of some plant, machinery, building and related assets; delivery of some of those assets have already been completed and related proceeds have appropriately been accounted for. The Company is hopeful that the process will be completed by year end. June 30, December 31, 2025 2024 (Un-audited) (Audited) 16 LONG TERM LOAN (Rs. in '000) Diminishing musharaka 3,336 3,549 Less: current maturity shown under current liability (2,475) (1,326)
861	2,223

Half Yearly Report June 30, 2025

17 TRADE AND OTHER PAYABLES
Trade creditors	904,096	637,216
Accrued expenses	312,716	283,312
Sales tax payable	57,390	67,772
Deduction on account of vehicles for the employees	16,138	7,921
Accrued mark-up	162	171
Workers' Welfare Fund	9,630	6,460
Workers' Profit Participation Fund	3,780	5,237
Advances against asset classified as held for sale	38,913	20,000
Other liabilities	11,040	6,846
	1,353,863	1,034,935
18 SHORT TERM BORROWINGS
From New Future Consumer International LLC 18.1	31,846	31,846
	31,846	31,846

Notes to the Condensed Interim Financial Statements (Un-audited) For the Half Year ended June 30, 2025

16.1 The Company had acquired vehicles under diminishing musharaka agreement from First Habib Modaraba. The loan was for a period of four years expiring on May 2027, with an option to purchase the asset at nominal amount. This carries profit at the rate 3 months' KIBOR + 2% per annum (December 31,2024: 3 months' KIBOR + 2% per annum).

Note June 30, December 31,

2025 2024

(Un-audited) (Audited)

(Rs. in '000)

18.1 This represents interest free short term loan. The loan is repayable in December 2025.

Half Yearly Report June 30, 2025

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