empowering people..mr. hassan javed executive director mr. riaz ahmed non–executive director mr....

SERVIS HOUSE2-Main Gulberg, Lahore-54662, Pakistan.Tel: +92-42-35751990-96Fax: +92-42-35711827, 35710593

servisgroup.com

Report & Un-Audited Accounts for the 1st Quarter Ended March 31, 2019

Service Industries Limited

empowering

people..

Consolidated Financial Statements26 Group Directors’ Report to the Shareholders 27 Group Directors’ Report to the Shareholders (Urdu)28-29 Condensed Consolidated Interim Statement of Financial Position30 CondensedConsolidatedInterimStatementofProfitorLoss31 Condensed Consolidated Interim Statement of Comprehensive Income32 Condensed Consolidated Interim Statement of Cash Flows33 Condensed Consolidated Interim Statement of Changes in Equity34-48 Notes to the Condensed Consolidated Interim Financial Statements

Contents

Financial Statements02 Company Information04 Director’s Report to the Shareholders 05 Director’s Report to the Shareholders (Urdu)06-07 Condensed Interim Statement of Financial Position08 CondensedInterimStatementofProfitorLoss09 Condensed Interim Statement of Comprehensive Income10 Condensed Interim Statement of Cash Flows11 Condensed Interim Statement of Changes in Equity12-24 Notes to the Condensed Interim Financial Statements

11st Quarter 2019

Company InformationBoard of DirectorsChaudhry Ahmed Javed(Chairman)Non–Executive DirectorMr. Arif Saeed(ChiefExecutiveOfficer)Executive DirectorMr. Omar SaeedExecutive DirectorMr. Hassan JavedExecutive DirectorMr. Riaz AhmedNon–Executive DirectorMr. Osman Saifullah KhanIndependent DirectorMr. Rehman NaseemIndependent DirectorMr. Muhammad Amin Independent DirectorMr. Shahid Hussain JatoiIndependent Director

ChiefFinancialOfficerMr. Badar Ul HassanCompany SecretaryMr. Waheed Ashraf

Audit CommitteeMr. Muhammad Amin ChairmanMr. Riaz AhmedMemberMr. Rehman NaseemMember

Human Resource and Remuneration CommitteeMr. Osman Saifullah KhanChairmanMr. Arif SaeedMemberMr. Riaz AhmedMember

BankersAlliedBankLimitedAskariBankLimitedBankAlHabibLimitedBankAlfalahLimitedSoneriBankLimitedFaysalBankLimitedHabibBankLimitedMCBBankLimitedMCBIslamicBankLimitedMeezanBankLimitedSambaBankLimitedStandard Chartered Bank (Pakistan) LimitedUnitedBankLimitedNationalBankLimitedJSBankLimited

LegalAdvisorM/s. Bokhari Aziz & Karim2–A,block–G,Gulberg–II,Lahore.

RegisteredOfficeServis House,2–MainGulberg,Lahore–54662.Tel:+92–42–35751990–96Fax:+92–42–35710593, 35712109

Shares RegistrarM/s.Corplink(Pvt.)LimitedWings Arcade, 1–KCommercial,ModelTown,LahoreTel: +92–42–35916714, 35916719, 35839182 Fax: +92–42–35869037

PakistanStockExchangeLimitedStock Exchange Symbol SRVI

FactoriesG.T. Road, Gujrat.Muridke–Sheikhupura Road, Muridke.

Web Presencewww.servisgroup.com

2 Service Industries Limited

2 ServiceIndustriesLimited

31st Quarter 2019

TheDirectorstakepleasureinpresentingtheirReportalongwiththecondensedinterimfinancialinformation of the company for the First quarter ended March 31, 2019.

Company’s Performance:Key Financial Indicators of your company are summarized below:

Quarter Ended March 31 2019 2018 Growth PKR in Millions Net Sales 6,037 5,526 9%ProfitBeforeTax 316 286 10%ProfitAfterTax 279 259 8%Earnings Per Share (PKR) 23.16 21.51 8%

TheCompanyachievedsalesofPKR6.04billionduringthefirstquarteroftheyearcomparedto PKR 5.53 billion during corresponding period last year, with steady growth of 9%. Footwear exports sales were the most promising area in terms of revenue growth. The Footwear export business has also shown better profitability attributed through growthin quantity and PKR devaluation. The domestic footwear business continues to face tough challenge as the retail market in the country remains stressed. The Tyre business showed a decline both in sales and profitability due to stressed marketimpacted mainly by the devaluation of the PKR resulting in higher inflation, higher marketcompetition and uncertain economic environment. The earnings per share stood at PKR 23.16 during the quarter under review registering a rise of 8% over same period last year (PKR 21.51) mainly due to reasons stated above. Future OutlookFootwear export sales are expected to continue growing and contribute aggressively to the company’s profitability. Driving growth in the retail segmentwill remain a challenge for theCompany as we expect the local economy to go through a tough period this year. In the Tyre business segment, improvements in productivity have been aggressively targeted in theremainingpartofourfinancialyearandweexpectimprovedfinancialresultsinthisperiod..

AcknowledgmentThe Directors wish to place on record the efforts of our staff and especially our workers in attaining these results. We remain indebted to all our stakeholders for their continued support.

For and on behalf of the Board

CHAUDHRY AHMED JAVED ARIF SAEED Chairman Chief Executive

Dated: April 26, 2019LAHORE.

Directors’ Report to the Shareholders


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51st Quarter 2019

Condensed Interim Statement of Financial Position (Unaudited)As at March 31, 2019

Chaudhry Ahmed Javed(Chairman)

(Unaudited) (Audited) March December 31, 2019 31, 2018 Note (Rupees in thousand)

EQUITY AND LIABILITIES Share capital and reserves Authorized share capital 1,000,000 1,000,000 100,000,000 (2018:100,000,000) ordinary shares of Rs 10/- each

Paid up share capital 120,288 120,288 Reserves 5,675,482 5,395,877 5,795,770 5,516,165 Non-current liabilities Longtermfinancing 2,553,695 2,617,155 Longtermdeposits 3,243 3,243 Deferred liabilities 560,286 521,628 3,117,225 3,142,026 Current liabilities Trade and other payables 3,059,439 2,739,985 Uncashed dividend warrants 31,399 32,002 Interest and mark-up accrued 166,393 146,917 Short term borrowings 6,744,109 5,633,361 Currentportionoflongtermfinancing 674,725 699,725 Provision for taxation 214,959 210,942 10,891,024 9,462,932 Contingencies and commitments 5 19,804,020 18,121,123 Theannexednotesfrom1to15formanintegralpartofthiscondensedinterimfinancialstatements.

For the year ended December 31, 2018


Badar Ul Hassan(Chief Financial Officer)

Arif Saeed(Chief Executive)


ASSETS Non-current assets Property, plant and equipment 6 6,974,085 6,946,303 Intangible assets 2,282 2,562 Longterminvestments 7 560,424 549,917 Longtermloans 20,072 20,450 Longtermdeposits 108,294 95,010 7,665,157 7,614,242

Current assets Stores, spares and loose tools 142,832 159,415 Stock in trade 4,787,211 4,044,171 Trade debts 3,909,867 3,300,338 Loans,advancesandreceivables 573,772 463,549 Trade deposits and prepayments 136,868 93,469 Other receivables 66,776 74,259 Tax refunds due from government 2,443,432 2,317,919 Cash and cash equivalents 78,106 53,761 12,138,864 10,506,881 19,804,020 18,121,123

71st Quarter 2019

Condensed Interim Statement of Profit or Loss (Unaudited)For the period ended March 31, 2019 March March 31, 2019 31, 2018 Amount Amount Note (Rupees in thousand)

Sales - net 8 6,036,780 5,525,719Cost of sales 9 4,846,151 4,524,211Gross profit 1,190,629 1,001,508Operating expenses Distribution cost 446,947 352,903 Administrative expenses 290,107 282,702 Other operating expenses 33,994 49,485 771,048 685,090

Operatingprofitbeforeotherincome 419,581 316,418 Other operating income 100,370 80,841

Operatingprofit 519,951 397,259 Finance cost 203,634 111,694

Profit before taxation 316,317 285,565 Taxation 37,722 26,874

Profit after taxation 278,595 258,691

Earnings per share - basic and diluted (Rupees) 23.16 21.51

Theannexednotesfrom1to15formanintegralpartofthiscondensedinterimfinancialstatements.





Condensed Interim Statement of Comprehensive Income (Unaudited)For the period ended March 31, 2019 March March 31, 2019 31, 2018 (Rupees in thousand)

Profitaftertaxationfortheperiod 278,595 258,691 Other comprehensive income Items that may reclassify to profit or loss account Gain on Investments - Net of tax 1,010 6,760 Items that may not reclassify to profit or loss account – – 1,010 6,760 Total comprehensive income for the period 279,605 265,451 Theannexednotesfrom1to15formanintegralpartofthiscondensedinterimfinancialstatements.




91st Quarter 2019

March March 31, 2019 31, 2018 (Rupees in thousand)Cash flow from operating activities Profitbeforetaxation 316,317 285,565 Adjustments for non-cash charges and other items: Depreciation and amortization 153,904 138,673 Employeebenefitplans 12,065 11,885 Ijarah rentals 16,205 21,484 Finance cost 203,634 111,694 Provisionforworkers’profitparticipationfund 17,260 15,088 Provision for workers’ welfare fund 2,325 1,012 Provision for slow moving stocks 14,141 (12,573) Provision for doubtful debts 4,844 – ShareofprofitfromSpeed(Private)Limited (9,497) (17,164) Operating profit before working capital changes 731,198 555,664 Changes in working capital (Increase)/ decrease in current assets Stores, spares and loose tools 16,426 6,275 Stock in trade (761,487) (297,886) Trade debts (614,373) 111,860 Advances, deposits, prepayments and other receivables (146,138) (46,366) Tax refunds, due from / to government (69,295) (143,911) (1,574,868) (370,028) Increase in current liabilities Trade and other payables 284,905 (247,763) Cash generated from / (used in)operations (558,765) (62,127) Finance cost paid (184,158) (140,167) Ijarah rentals paid (16,205) (21,484) Income tax paid (62,875) (97,104) Staffretirementbenefitspaid (3,282) (1,981) W.W.F and W.P.P.F (Paid) / Received 23,266 – Net cash generated from / (used in) operating activities (802,019) (322,863)Cash flow from investing activities Capital expenditure (181,405) (224,901) Longtermloans-net 378 (106) LongTermInvestment (1,010) (6,760) Longtermdeposits-net (13,284) 3,175 Net cash used in investing activities (195,321) (228,592)Cash flow from financing activities Short term borrowings - net 1,110,748 652,540 Longtermfinancing (88,460) (122,218) Dividend paid (603) – Longtermdeposits – (311) Net cash (used in ) financing activities 1,021,685 530,011 Net (decrease) / increase in cash and cash equivalents 24,345 (21,444)Cash and cash equivalents at the beginning of the period 53,761 79,184 Cash and cash equivalents at the end of the period 78,106 57,740

Theannexednotesfrom1to15formanintegralpartofthiscondensedinterimfinancialstatements.

Condensed Interim Statement of Cash Flows (Unaudited)For the period ended March 31, 2019





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111st Quarter 2019

Notes to the Condensed Interim Financial Information (Unaudited)For the period ended March 31, 20191 The company and its operations ServiceIndustriesLimited(theCompany)wasincorporatedasaprivatelimitedcompany

on March 20, 1957 in Pakistan under the Companies Act, 1913 (now Companies Act, 2017), was converted into a public limited company on September 23, 1959 and got listed on June 27, 1970. The shares of the Company are quoted on the Pakistan Stock Exchange.TheregisteredofficeoftheCompanyislocatedat2-MainGulberg,Lahore.The principal activities of the Company are purchase, manufacture and sale of footwear, tyres and tubes and technical rubber products. This condensed financial informationpertaintoServiceIndustriesLimitedasanindividualentity.

Geographical location and address of business units/plants Purpose Location Address RegisteredOffice Lahore ServisHouse,2-MainGulberg,Lahore-54662 Factory Site Muridke Muridke-Sheikhupura Road Factory Site Gujrat G.T. Road, Gujrat.

2 Basis of preparation and statement of compliance 2.1 ThesecondensedfinancialstatementsfortheperiodendedMarch31,2019areprepared

in accordance with International Accounting Standard 34, “”Interim Financial Reporting””. Thesecondensedfinancial statementsareunauditedandarebeingsubmitted to theshareholders as required under section 237 of the Companies Act, 2017. These do not include all of the information required for the full set of annual financial statementsandthecondensedinterimfinancialstatementsshouldbereadinconjunctionwiththeannualfinancialstatementsofthecompanyfortheyearended31December2018.

As per the requirements of circular No. 23/2017 dated October 4, 2017 issued by Securities&ExchangeCommissionofPakistan(SECP),companieswhosefinancialyearclosesafterDecember31,2017shallpreparefinancialstatementsinaccordancewiththeprovisions of the Companies Act, 2017.

2.2 TheseCondensedinterimfinancialstatementshavebeenpreparedinaccordancewiththeaccountingandreportingstandardsasapplicable inPakistan for interimfinancialreporting. The accounting and reporting standards as applicable in Pakistan for interim financialreportingcompriseof:– International Accounting Standard (IAS) 34, Interim Financial Reporting, issued

by the International Accounting Standards Board (IASB) as notified under theCompanies Act, 2017; and

– Provisions of and directives issued under 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.

2.3 Thecondensed interimfinancial statementsarepresented inPakRupeewhich is the

company’s functional and presentation currency.


3 Accounting policies AccountingpoliciesadoptedforthepreparationofthesecondensedIntermfinancial

statements are the same as those applied in the preparation of preceding annual financialstatementsoftheCompany.

The preparation of condensed interim financial statements requires management tomake judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, incomes and expenses. Actual resultsmaydiffer from theseestimates. Inpreparing this condensed interimfinancialstatements,thesignificantjudgmentsmadebythemanagementinapplyingaccountingpolicies and key sources of estimation were the same as those that were applied to the financialstatementsasatandfortheyearendedDecember31,2018.

4 Provisionsforincometax,Workers’ProfitParticipationFundandWorkers’WelfareFundhavebeenmadeonthebasisofthreemonths’profit.Thesearesubjecttochangeonfinalresults.

5 Contingencies and commitments Contingencies 5.1 The Additional Collector (Adjudication) of Pakistan Customs Computerized System,

Karachi initiated case against the Company for failure to pay leviable sales tax and income tax of Rupees 18.6 million and 4.1 million respectively at import of tyre cord fabrics during the period w.e.f. August 2007 to July 2008 by wrongly claiming sales tax zero rating in terms of S.R.O 509 (1)/2007 dated 09-06-2007. The case has been remandedbackbytheAppellateTribunalInlandRevenue,LahoretotheCIR(Appeals),which is pending for hearing. According to the Company’s legal counsel, the Company has a good arguable case and there is likelihood that the same will be decided in its favor,hence,noprovisionhasbeenmadeinthesefinancialstatements.

5.2 The Deputy Director of Pakistan Employees Social Security Institute (PESSI), Gujrat

initiatedtwocasesagainsttheCompany.Inthefirstcase,theallegedamountrecoverableby the PESSI is Rupees 4.80 million covering the period from January 1987 to September 1992 on account of short payment of contributions. The matter was decided against the companybytheInstitutionandCompanyfiledanappealbeforetheSocialSecurityCourt,Lahore,whichispendingforhearing.Insecondcase,PESSIinitiatedacaseofRupees77.6millionagainsttheCompany,againstwhichacomplaintwasfiledtotheInstitution.Social Security Institution disposed of our complaint while referreing the matter to the localofficeGujratforreconsiderationafterre-checkingofrecord.ThelocalofficeGujrat,raisedademandofsameamount,againstwhichtheCompanyfiledacomplaint;whichis pending adjudication before the Institution. During the pendency of matter before the Institution, a recoverynoticewas issuedby the localoffice.TheCompanyfiledawritpetitionbeforetheHonorableHighCourt,LahorewhereintherecoverynoticewassuspendedbytheHonorableHighCourt,Lahore.AsperlegalcounseloftheCompany,the Company has strong legal grounds for its success.

131st Quarter 2019

5.3 TheDCIR,LTU initiatedacaseagainst theCompanyofpost sales tax refundaudit inwhichdemandofRupees27.92millionwasraised.TheCompanyfiledanappealbeforeCIR (Appeals) in which the demand was cancelled except two points having impact of Rupees2.65million.TheCompanyhadfurtherfiledanappealbeforeATIRagainstsaidpoints.ThemanagementoftheCompanyisconfidentthatdecisionwillbeinfavouroftheCompanyhence,noprovisionhasbeenmadeinthesefinancialstatements

5.4 TheDCIR,LTUinitiatedsalestaxauditfortheyear2013-2014inwhichdemandofRupees182.70millionwascreated.TheCompanyhasfiledanappealwithCIR(Appeals)whoconfirmedthedemandofRupees10millionandremandedbackcertainchargestothetuneof172.7million.TheCompanyfiledanappealwithATIRagainstthedecisionofCIR(Appeals)whichispendingforhearing.ThemanagementoftheCompanyisconfidentthat decision will be in favor of the Company, hence, no provision has been made in thesefinancialstatements.

5.5 TheDCIR,LTUinitiatedincometaxauditfortheyear2014inwhichademandofRupees

123 million was created. The Company preferred an appeal before CIR(Appeals) which ispendingforhearing.ThemanagementisconfidentthatdecisionwillbeinfavoroftheCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

5.6 HonorableLahoreHighCourthasallowedapetitionfiledbytheCompanyagainstshow-

cause notice issued by DCIR amounting Rupees 13 million. The show-cause notice was issued on account of post sales tax refunds audit of various tax periods. FBR challenged the decision of Honorable Lahore High Court in August Supreme Court of Pakistanwhichispendingforhearing.ThemanagementisconfidentthatdecisionwillbeinfavoroftheCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

5.7 TheDCIR,LTUinitiatedacaseofwithholdingtaxauditfortaxyear2011inwhichademand

of Rupees 40.03 million under Section 161 and 205 of The Income Tax Ordinance, 2001 was created. The Company preferred an appeal before CIR (Appeal) which is pending forhearing.ThemanagementofCompanyisconfidentthatdecisionshallbeinfavorofCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

5.8 TheDCIR, LTU conducted income tax audit for the year 2011 inwhich ademandof

rupees 19.6 million was created. The Company preferred an appeal before the CIR (Appeals) which is pending for hearing. Themanagement is confident that decisionwillbeinfavorofthecompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

5.9 TheCompanyhaschallenged,beforeHonorableLahoreHighCourt,Lahore,thevires

offirstprovisotosub-clause(x)ofclause(4)ofSRO491(1)/2016dated30June2016issued under sections 3 and 4 read with sections 8 and 71 of the Sales Tax Act, 1990 whereby through amendment in the earlier SRO 1125(I)/2011 dated 31 December 2011 adjustment of input sales tax on packing material of all sorts has been disallowed. The Honorable Lahore High Court has issued stay order in favor of the Company.Consequently, the Company has claimed input sales tax paid on packing material in

Notes to the Condensed Interim Financial Information (Unaudited)For the period ended March 31, 2019


its respective monthly sales tax returns. The management, based on advice of the legal counsel, isconfidentof favorableoutcomeof itsappeal.AnamountofRupees41.18millionbeingtheprovisionismadeinthesefinancialstatements.

5.10 TheCompanyhaschallenged,beforeHonourableLahoreHighCourt,Lahore,thevires

of clauses (h) and (I) to sub-section (1) of section 8 of the Sales Tax Act, 1990 whereby claim of input sales tax in respect of building materials, electrical and gas appliances, pipes, fittings, wires, cables and ordinary electrical fittings and sanitary fittings havebeendisallowed.TheHonorableLahoreHighCourthasissuedstayorderinfavoroftheCompany and has allowed the Company to claim input sales tax paid on such goods in its monthly sales tax returns. Consequently, the Company has claimed input sales tax on such goods in its respective monthly sales tax returns. An amount of Rupees 3.82 million beingtheprovisionismadeinthesefinancialstatements.

5.11 TheDCIR, LTU initiated income tax cases of tax years 2006 and 2008.Ademandof

12.7 million and 68.4 million respectively were created by amending returns. Appeals were preferred with CIR(Appeals) which were dismissed against the Company without discussing themeritsof thecases.TheCompanyhasfiledappealwithATIRwhich ispendingforhearing.ThemanagementisconfidentthatdecisionwillbeinfavoroftheCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

5.12 TheCIR,LTUpassedanorderregardingCrestdiscrepanciesofsalestaxforanamount

ofRupees11.1million.TheCompanyfiledanappealwithATIRwhich ispending forhearing.Themanagement isconfident thatdecisionwillbe in favorof theCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements Commitments

5.13 Guarantees issued in ordinary course of business through banks are of Rs. 364 million (Dec-2018: Rs. 523 million).

5.14 Irrevocable letters of credit outstanding at the year end are of Rs. 883 million (Dec-2018: Rs. 486.71 million).

5.15 Theamountof future ijarahrentals for ijarahfinancingand theperiod inwhich these

payments will become due are as follows: March December 31, 2019 31, 2018 (Rupees in thousand) Not later than one year 63,196 61,109 Laterthanoneyearandnotlaterthanfiveyears 85,207 87,154 Laterthanfiveyears – – 148,403 148,263

151st Quarter 2019

March December 31, 2019 31, 2018 (Rupees in thousand)6 Property, plant and equipment Operatingfixedassets 6,373,219 5,726,524 Capital work in progress 600,866 1,219,779 6,974,085 6,946,303 6.1 Operating fixed assets Opening written down value 5,726,524 4,739,012 Add: Additions during the period 6.2 806,099 1,599,158 6,532,623 6,338,170 Less:Disposalsduringtheperiod (at book value) 6.2 5,781 11,635 6,526,842 6,326,535 Less:Depreciationchargedduringtheperiod 153,623 600,011 6,373,219 5,726,524 6.2 Following is the detail of additions and disposals during the period. Additions Disposals - NBV Unaudited Audited Unaudited Audited March December March December 31, 2019 31, 2018 31, 2019 31, 2018 (Rupees in thousand) Land Building on freehold land 20,086 354,290 – – Plant and machinery 697,599 1,007,169 281 1,182 Furniture,fixtureandfittings 1,011 6,991 1 194 Vehicles 435 5,483 99 284 Service equipments 86,915 103,950 24 637 Leaseholdimprovements 53 121,275 5,376 9,338 806,099 1,599,158 5,781 11,635 (Unaudited) (Audited) March December 31, 2019 31, 2018 Note (Rupees in thousand)7 Long term investments These represents long term investments in: Related parties 7.1 537,364 527,867 Others 7.2 23,060 22,050 560,424 549,917



(Unaudited) (Audited) March December 31, 2019 31, 2018 Note (Rupees in thousand)7.1 Investment in Related Parties: 7.1.1 Investment in Subsidiary

– ServiceIndustriesCapital(Private)Limited 218,681 218,681 7.1.2 Investment in Associate

– Speed(Private)Limited 7.1.2.1 318,203 308,706 7.1.3 Investment in Joint Venture

– S2PowerLimited(24,000fullypaidsharesofRs.10/-each) 240 240 – S2HydroLimited(24,000fullypaidsharesofRs.10/-each) 240 240 480 480

537,364 527,867 7.1.2.1Speed(Private)Limited-associatedcompany Cost of investment 160,709 fully paid ordinary shares of Rs. 100/- each (2018: 160,709) 190,949 190,949 Share of post acquisition reserve As at the beginning of the period 117,757 81,953 Shareofpostacquisitionprofitfortheperiod 9,497 63,928 Less:Dividendsreceivedduringtheperiod – (28,124) 127,254 117,757 318,203 308,706 7.2 Investment in quoted securities - Available for sale investments TRG Pakistan Limited 1,000,000 fully paid ordinary shares (2018- 1,000,000) 22,050 29,600 Fair value adjustment 1,010 (7,550) 23,060 22,050

171st Quarter 2019

(Unaudited) (Unaudited) March March 31, 2019 31, 2018 Note (Rupees in thousand)8 Sales - net Sale of footwear (Net) Export sales 2,005,490 1,441,598 Localsales 1,201,251 1,115,315 3,206,741 2,556,913 Sale of tyres and tubes (Net) Export sales 223,583 232,994 Localsales 2,604,385 2,734,773 2,827,968 2,967,767 Sale of technical rubber products (Net) Localsales 2,071 1,039 2,071 1,039 6,036,780 5,525,719

9 Cost of sales Raw material consumed 9.1 3,190,547 2,761,546 Salaries,wagesandbenefits 749,192 689,004 Stores and spares consumed 54,866 42,424 Packing material consumed 181,817 151,370 Fuel and power 209,420 175,689 Insurance 5,162 4,346 Travelling expenses 5,890 5,184 Repair and maintenance 36,926 37,622 Entertainment 1,258 756 Depreciation 137,910 126,258 Provision for slow moving items, obsolete items 14,141 (12,573) Other manufacturing charges 60,359 34,526 4,647,488 4,016,152 Work in process: Opening Stock 398,415 294,958 Closing Stock (524,147) (358,412) (125,732) (63,454) Cost of goods manufactured 4,521,756 3,952,698 Finished goods: Opening Stock 1,959,114 2,209,271 Finished goods purchased 779,206 614,208 Closing stock (2,413,925) (2,251,966) 324,395 571,513 4,846,151 4,524,211



(Unaudited) (Unaudited) March March 31, 2019 31, 2018 (Rupees in thousand)9.1 Raw material consumed Opening Stock 1,500,550 1,315,442 Purchases - net 3,245,390 2,723,687 Closing stock (1,555,393) (1,277,583) 3,190,547 2,761,546

191st Quarter 2019

Note

s to t

he C

onde

nsed

Inte

rim Fi

nanc

ial In

form

ation

(Una

udite

d)Fo

r the

per

iod

ende

d M

arch

31,

201

9

10.

Segm

ent r

epor

ting

(Ru

pees

in th

ousan

d)

Fo

otwea

r Tyr

e Te

chnic

al Ru

bber

Produ

cts

Total

To

tal

3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

en

ded

ende

d en

ded

ende

d en

ded

ende

d en

ded

ende

d

M

ar. 31

, 201

9 M

ar. 31

, 201

8 Ma

r. 31,

2019

Ma

r. 31,

2018

Mar.

31, 2

019

Mar. 3

1, 20

18

Mar. 3

1, 20

19

Mar. 3

1, 20

18

Ex

terna

l sales

3,

206,7

41

2,55

6,913

2,

827,9

68

2,96

7,767

2,

071

1,03

9 6,

036,7

80

5,52

5,719

Inter-

segm

ent sa

les

–

–

–

–

–

–

–

–

To

tal re

venu

e 3,

206,7

41

2,55

6,913

2,

827,9

68

2,96

7,767

2,

071

1,03

9 6,

036,7

80

5,52

5,719

Pro

fit/(lo

ss)be

foretaxan

dun

allocate

dexpenses

350,3

80

260,0

72

362,9

01

322,5

43

(2,53

0) (3

,098)

710,7

51

579,5

17

Un

alloc

ated c

orpora

te ex

pens

es

Fin

ance

cost

– –

–

–

–

–

(1

92,71

3) (1

03,56

0)

Ot

her o

perat

ing ex

pens

es

–

–

–

–

– –

(2

11,39

5) (2

09,98

6)

Ot

her o

perat

ing in

come

–

–

–

–

–

–

9,67

4 19

,594

Tax

ation

–

–

–

–

–

–

(37,7

22)

(26,8

74)

Pro

fitaftertax

ation

350,3

80

260,0

72

362,9

01

322,5

43

(2,53

0) (3

,098)

278,5

95

258,6

91

10.1Reconciliationo

fsegme

ntpro

fit

Totalprofitfo

rreportable

segm

ents

710,7

51

579,5

17

Un

alloc

ated e

xpen

ses

(394

,434)

(293

,952)

Profi

tbefo

retax

31

6,317

28

5,565

10.

Segm

ent r

epor

ting

(Ru

pees

in th

ousan

d)

Fo

otwea

r Tyr

e Divis

ion

Tech

nical

Rubb

er Pro

ducts

To

tal

Total

3 mon

ths

3 mon

ths

3 mon

ths

3 mon

ths

3 mon

ths

3 mon

ths

3 mon

ths

3 mon

ths

ende

d en

ded

ende

d en

ded

ende

d en

ded

ende

d en

ded

Mar.

31, 2

019

Mar.

31, 2

018

Mar. 3

1, 20

19

Mar. 3

1, 20

18 M

ar. 31

, 201

9 Ma

r. 31,

2018

Ma

r. 31,

2019

Ma

r. 31,

2018

Ex

terna

l sales

2,

556,9

13

2,58

8,883

2,

967,7

67

2,51

4,391

1,0

39

22

5,52

5,719

5,

103,2

96

Int

er-se

gmen

t sales

–

–

–

–

–

–

–

–

To

tal re

venu

e 2,

556,9

13

2,588

,883

2,967

,767

2,514

,391

1,03

9 22

5,

525,7

19

5,10

3,296

Pro

fit/(Lo

ss)be

foretaxan

dunallocated

expenses

260,0

72

263,1

69

322,5

43

289,1

09

(3,09

8)(2,97

3)57

9,517

549,3

05

Un

alloc

ated c

orpora

te ex

pens

es

Fin

ance

cost

–

–

–

–

–

–

(103

,560)

(42,9

74)

Ot

her o

perat

ing ex

pens

es

–

–

–

–

–

–

(209

,986)

(207

,682)

Ot

her o

perat

ing in

come

–

–

–

–

–

–

19

,594

64,33

0

Tax

ation

–

–

–

–

–

–

(26,8

74)

(82,1

66)

Pro

fitaftertax

ation

260,0

72

263,1

69

322,5

43

289,1

09

(3,098)

(2,97

3)258,6

91

280,8

13

10.1R

econciliationofsegm

entprofi

t

Totalprofitfo

rreportable

segm

ents

579,5

17

549,3

05

Un

alloc

ated e

xpen

ses

(293

,952)

(186

,326)

Pro

fitbeforetax

285,5

65

362,9

79


Note

s to t

he C

onde

nsed

Inte

rim Fi

nanc

ial In

form

ation

(Una

udite

d)Fo

r the

per

iod

ende

d M

arch

31,

201

9

(Ru

pees

in th

ousan

d)

Fo

otwea

r Tyr

e Te

chnic

al Ru

bber

Produ

cts

Total

To

tal

Ma

rch

Dece

mber

March

De

cemb

er Ma

rch

Dece

mber

March

De

cemb

er

31

, 201

9 31

, 201

8 31

, 201

9 31

, 201

8 31

, 201

9 31

, 201

8 31

, 201

9 31

, 201

8

10

.2 R

econ

ciliat

ion of

segm

ent

Asse

ts & lia

bilitie

s

Total

asse

ts for

report

able

segm

ents

7,71

8,907

6,

942,8

69

9,44

1,210

8,

662,5

33

53,19

3 54

,481

17,21

3,310

15

,605,4

02

Un

alloc

ated a

ssets

2,59

0,710

2,

461,2

40

Total

asse

ts as p

er ba

lance

shee

t –

– –

– –

– 19

,804,0

20

18,06

6,642

Segm

ent li

abilit

ies

–

–

–

–

–

–

–

–

Unall

ocate

d liab

ilities

14

,008,2

49

12,60

4,958

Total

liabil

ities a

s per

balan

ce sh

eet

– –

– –

– –

14,00

8,249

12

,604,9

58

211st Quarter 2019

Note

s to t

he C

onde

nsed

Inte

rim Fi

nanc

ial In

form

ation

(Una

udite

d)Fo

r the

per

iod

ende

d M

arch

31,

201

9

11

Fair v

alue m

easu

rem

ent o

f fina

ncial

instr

umen

ts.

Carry

ing Am

ount

Fair V

alue

Ot

her

Available

Loansand

financial

Note

forsale

receivables

liabilitie

sTotal

Level1

Level2

Level3

On

-balan

ce sh

eet fi

nanc

ial in

strum

ents

31 M

ar 20

19- (

Un-au

dited

)

Finan

cial a

ssets m

easu

red at

fair v

alue

23

,060

–

–

–

23,06

0 –

–

23

,060

–

–

– 23

,060

–

–

Finan

cial a

ssets n

ot me

asured

at fa

ir valu

e 11

.1

LongtermInvestm

ent

–

537,3

64

–

537,3

64

–

––

Longtermloans

–

20,07

2–

20,07

2–

–

–

LongTermde

posit

–

108,2

94

–

108,2

94

–

–

–

Trade

debts

–

3,94

5,524

–

3,

945,5

24

–

–

–

Loansandad

vances

–

26,28

6–

26,28

6–

–

–

Trade

Depo

sits

–

80

,377

–

80,37

7 –

–

–

Ot

her R

eceiv

ables

–

66,77

6 –

66

,776

–

–

–

Cash

and B

ank B

alanc

es

–

78

,106

–

78,10

6 –

–

–

–

4,

862,7

99

–

4,86

2,799

–

–

–

Fin

ancia

l liabil

ities m

easu

red at

fair v

alue

–

–

–

–

–

–

–

Fin

ancia

l liabil

ities n

ot me

asured

at fa

ir valu

e 11

.1

LongtermFinancing

–

–

3,228,4

20

3,228,4

20

–

–

–

Longtermde

posits

–

–

3,243

3,243

–

–

–

Intere

st and

Mau

k-up a

ccured

–

–

166,3

93

166,3

93

–

–

–

Short

term

borro

wings

–

–

6,74

4,109

6,

744,1

09

–

–

–

Unca

shed

divid

end w

arran

ts

–

–

31,39

9 31

,399

–

–

–

Trade

and o

ther p

ayab

les

–

–

2,

969,1

85

2,96

9,185

–

–

–

–

13,14

2,750

13

,142,7

50

–

–

–

(Rupe

es in

thou

sand)


Note

s to t

he C

onde

nsed

Inte

rim Fi

nanc

ial In

form

ation

(Una

udite

d)Fo

r the

per

iod

ende

d M

arch

31,

201

9

Ca

rrying

Amou

nt Fa

ir Valu

e

Othe

r

Available

Loansand

financial

Note

forsale

receivables

liabilitie

sTotal

Level1

Level2

Level3

31

Dec 2

018

Fin

ancia

l asse

ts mea

sured

at fa

ir valu

e

22,05

0 –

–

–

22

,050

–

–

22,05

0 –

–

–

22,05

0 –

–

Fin

ancia

l asse

ts not

measu

red at

fair v

alue

11.1

LongtermInvestm

ent

–

527,8

67

–

527,8

67

–

–

–

Longtermloans

–

20,45

0–

20,45

0–

––

LongTermde

posit

–

95,01

0–

95,01

0–

–

–

Trade

debts

–

3,37

1,267

–

3,

371,2

67

–

–

–

Loansandad

vances

–

33,78

7–

33,78

7–

–

–

Trade

Depo

sits

–

47

,854

–

47,85

4 –

–

–

Ot

her R

eceiv

ables

–

74,25

9 –

74

,259

–

–

–

Cash

and B

ankB

alanc

es

–

53

,761

–

53,76

1 –

– –

4,224

,255

–

4,22

4,255

–

–

–

Fin

ancia

l liabil

ities m

easu

red at

fair v

alue

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Finan

cial lia

bilitie

s not

measu

red at

fair v

alue

11.1

LongtermFinancing

-

-

3,316,8

80

3,316,8

80

–

–

–

Longtermde

posits

-

-

3,243

3,243

–

–

–

Intere

st and

Mark

-up ac

cured

-

-

146,9

17

146,9

17

–

–

–

Short

term

borro

wings

-

-

5,63

3,361

5,

633,3

61

–

–

–

Unca

shed

divid

end w

arran

ts

-

-

32,00

2 32

,002

–

–

–

Trade

and o

ther p

ayab

les

-

-

2,

585,2

19

2,58

5,219

–

–

–

-

-

11

,717,6

22

11,71

7,622

–

–

–

11.1

Them

anagem

entconsiders

thecarryinga

mountofallfinancialassetsa

ndliabilitie

snotme

asured

accordingtothefairvalue

hiera

rchyatth

eendofthereporting

periodtop

roximate

the

ir fair

value

as at

the r

eport

ing da

te.

(Rupe

es in

thou

sand)

231st Quarter 2019

12 Related party transactions Transaction with related parties and associated undertakings, other than those disclosed

elsewhereinthefinancialstatementsareasfollows: (Unaudited) (Audited) March December 31, 2019 31, 2018 (Rupees in thousand) Associated companies Dividend received – 28,124 Reimbursement of expense – 3,802 Sales of goods 22,565 83,743 RetirementBenefit 46,629 164,000 Key management personnel Dividend paid – 100,145

13 The Financial Risk Management TheCompany’sactivitiesexposeit toavarietyoffinancialrisks:marketrisk(including

currencyrisk,fairvalueinterestraterisk,cashflowinterestrateriskandpricerisk),creditriskandliquidityrisk.Thecondensedinterimfinancial informationdoesnot includeallfinancialriskmanagementinformationanddisclosuresrequiredintheannualfinancialstatements, and should be read in conjunction with the company’s annual financialstatements as at December 31, 2018.

There have been no changes in the risk management policies since the year end.14 Authorization date These financial statements were authorized for issue by the Board of Directors on

April 26, 2019.

15 General Figures have been rounded off to the nearest thousand of rupees and corresponding

figureshavebeenre-arranged,wherenecessary,forthecomparisonpurposes.However,no material re-arrangements have been made.






Consolidated Financial Statements

251st Quarter 2019

Group Directors’ Report to the Shareholders

The Directors take pleasure in presenting their Report along with the Group Condensed Interim FinancialinformationoftheServiceIndustriesLimitedfortheQuarterendedMarch31,2019.TheGroupcomprisesofServiceIndustriesLimited,ServiceIndustriesCapital(Private)Limited,awhollyownedsubsidiaryofServiceIndustriesLimitedandServiceShoesLanka(Private)Limited,asubsidiarycompanyofServiceIndustriesCapital(Private)Limited.

Service Industries Limited TheDirectorReportprovidingacommentaryontheperformanceofServiceIndustriesLimitedfortheQuarterendedMarch31,2019hasbeenpresentedseparately.ServiceIndustriesLimitedhas annexed its Condensed Consolidated Interim Financial Information along with its Separate Condensed Interim Financial information, in accordance with the requirements of International Financial Reporting Standards and Companies Act 2017.

Service Industries Capital (Private) LimitedServiceIndustriesCapital(Private)LimitediswhollyownedsubsidiaryoftheServiceIndustriesLimited. Service Industries Capital (Private) Limited got registered under the CompaniesOrdinance, 1984 (now the Companies Act 2017) in Pakistan as a company limited by shares onNovember10,2015.TheregisteredofficeofService IndustriesCapital (Private)Limited issituatedatServiceHouse,2-MainGulberg,Lahore.ThemainobjectofServiceIndustriesCapital(Private)Limitedistomakeinvestmentinnewventures,sharesandsecurities,listedorotherwise,in Pakistan or elsewhere in the world, subject to requirements of applicable law.

Service Shoes Lanka (Private) LimitedService Shoes Lanka (Private) Limited is a subsidiary company of Service Industries Capital(Private)Limited,whichiswhollyownedsubsidiaryofServiceIndustriesCapital(Private)Limited.ServiceShoesLanka(Private)LimitedisaPrivateLimitedLiabilityCompanyincorporatedonJuly16,2015anddomiciledinSriLankaundertheprovisionsoftheCompaniesActNo.07of2007.TheregisteredofficeoftheCompanyislocatedatNo143/17,SriWickermaMawatha,Colombo15 and the principal place of business is located at Katunayake.

For and on Behalf of the Board

CHAUDHRY AHMED JAVED ARIF SAEED Chairman Chief Executive

April 26, 2019Lahore.


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271st Quarter 2019

Condensed Consolidated Interim Statement of Financial Position (Unaudited)As at March 31, 2019



EQUITY AND LIABILITIES

Share capital and reserves Authorized share capital 1,000,000 1,000,000 100,000,000 (2018:100,000,000)ordinary shares of Rs 10/- each

Paid up share capital 120,288 120,288 Reserves & Retained Earnings 5,672,179 5,379,198 Attributable to owners of the holding compnay 5,792,467 5,499,486 Non-controlling Interest (11,465) (16,322) 5,781,001 5,483,164 Non-current liabilities Longtermfinancing 2,557,465 2,617,155 Longtermdeposits 3,243 3,243 Deferred liabilities 560,286 521,628 3,120,995 3,142,026 Current liabilities Trade and other payables 3,208,685 2,881,556 Uncashed dividend warrants 31,399 32,002 Interest and mark-up accrued 166,393 146,917 Short term borrowings 6,822,258 5,722,630 Currentportionoflongtermfinancing 674,725 699,725 Provision for taxation 218,272 214,255 11,121,732 9,697,085 Contingencies and commitments 6 20,023,728 18,322,275

Theannexednotesfrom1to16formanintegralpartofthiscondensedconsolidatedinterimfinancialstatements.





ASSETS Non-current assets Property, plant and equipment 7 7,086,317 7,054,975 Intangible assets and goodwill 45,165 43,179 Longterminvestments 8 523,520 506,914 Longtermloans 20,072 20,450 Longtermdeposits 108,294 95,010 7,783,368 7,720,528

Current assets Stores, spares and loose tools 142,832 159,415 Stock in trade 4,833,610 4,122,896 Trade debts 3,948,701 3,273,650 Loans,advancesandreceivables 573,772 479,530 Trade deposits and prepayments 136,868 94,917 Other receivables 66,776 77,019 Tax refunds due from government 2,446,640 2,321,479 Cash and cash equivalents 91,161 72,841 12,240,359 10,601,747

20,023,728 18,322,275

291st Quarter 2019

Condensed Consolidated Interim Statement of Profit or Loss (Unaudited)For the period ended March 31, 2019 March March 31, 2019 31, 2018 Amount Amount Note (Rupees in thousand)

Sales - net 9 6,144,396 5,586,661 Cost of sales 10 4,926,903 4,583,700 Gross profit 1,217,492 1,002,961 Operating expenses Distribution cost 448,277 354,179 Administrative expenses 300,648 291,243 Other operating expenses 33,994 49,478 782,919 694,900

Operatingprofitbeforeotherincome 434,573 308,061 Other operating income 106,514 92,031

Operatingprofit 541,087 400,092 Finance cost 205,968 113,059

Profit before taxation 335,119 287,033 Taxation 37,722 45,982

Profit after taxation 297,397 241,051

Attributable to: Owners of the holding company 292,313 244,812 Non-Controlling Interest 5,084 (3,761) 297,397 241,051

Earnings per share - basic and diluted (Rupees)attributable to owners of the holding company 24.30 20.04






Condensed Consolidated Interim Statement of Comprehensive Income (Unaudited)For the period ended March 31, 2019 March March 31, 2019 31, 2018 (Rupees in thousand)

Profitaftertaxationfortheperiod 297,397 241,051 Other comprehensive income Items that may reclassify to profit or loss account (Loss)/gainonInvestments-Netoftax 1,010 6,760 Exchange difference on translation of foreign subsidary (2,492) 299 Exchange difference on translation of goodwill 1,923 892 Items that may not reclassify to profit or loss account 440 7,951 Total comprehensive income for the period 297,837 249,002

Attributable to: Owners of the holding company 292,981 252,406 Non-controlling interest 4,857 (3,404)

Total comprehensive income for the period 297,837 249,002

The annexed notes from 1 to 16 form an integral part of this condensed consolidated interim financialstatements.




311st Quarter 2019

March March 31, 2019 31, 2018 (Rupees in thousand)Cash flow from operating activities Profitbeforetaxation 335,119 287,033 Adjustments for non-cash charges and other items: Depreciation and amortization 156,884 141,437 Employeebenefitplans 12,065 11,885 Ijarah rentals 16,205 21,484 Finance cost 205,968 113,059 Provisionforworkers’profitparticipationfund 17,260 15,088 Provision for workers’ welfare fund 2,325 1,012 Provision for slow moving stocks 14,141 (12,573) Provision for doubtful debts 4,844 ShareofprofitfromSpeed(Private)Limited (15,598) (28,191) Exchange(gain)/Loss (1,923) Operating profit before working capital changes 747,290 550,234 Changes in working capital (Increase) / decrease in current assets Stores, spares and loose tools 16,426 6,275 Stock in trade (729,161) (284,235) Trade debts (670,195) 28,390 Advances, deposits, prepayments and other receivables (146,138) (53,208) Tax refunds, due from / to government (68,943) (143,919) (1,598,012) (446,697) (decrease) / Increase in current liabilities Trade and other payables 303,069 (138,061) Cash generated from (used in) operations (1,294,943) (34,524) Finance cost paid (186,492) (141,532) Ijarah rentals paid (16,205) (21,484) Income tax paid (62,875) (97,104) Staffretirementbenefitspaid (3,282) (1,981) W.P.P.F andW.W.F (Paid) / Received 23,266 Net cash generated from / (used in) operating activities (793,240) (296,625)Cash flow from investing activities Capital expenditure (184,520) (229,349) Longtermloans-net 378 (106) LongTermInvestment (1,010) (6,760) Longtermdeposits-net (13,284) 3,175 Net cash used in investing activities (198,435) (233,040)Cash flow from financing activities Short term borrowings - net 1,099,628 653,153 Longtermfinancing (88,460) (122,218) Dividend paid (603) (310) Exchange differences on translation of investments in foreign subsidary (570) 1,190 Net cash generated from financing activities 1,009,995 531,815 Net (decrease) / increase in cash and cash equivalents 18,320 2,150 Cash and cash equivalents at the beginning of the period 72,841 84,448 Cash and cash equivalents at the end of the period 91,161 86,598


Condensed Consolidated Interim Statement of Cash Flows (Unaudited)For the period ended March 31, 2019





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Condensed Consolidated Interim Statement of Cash Flows (Unaudited)For the period ended March 31, 2019

331st Quarter 2019

Notes to the Condensed Consolidated Interim Financial Information (Unaudited)For the period ended March 31, 20191 Legal Status and Operations ServiceIndustriesLimited(theHoldingCompany)wasincorporatedasaprivatelimited

Company on March 20, 1957 in Pakistan under the Companies Act, 1913 (now the Companies Act, 2017), was converted into a public limited Company on September 23, 1959 and got listed on June 27, 1970. The shares of the Holding Company are quoted on the Pakistan Stock Exchange. The principal activities of the Holding Company are purchase, manufacture and sale of footwear, tyres and tubes and technical rubber products.

Geographical location and address of business units/plants Purpose Location Address RegisteredOffice Lahore ServisHouse,2-MainGulberg,Lahore-54662 Factory Site Muridke Muridke-Sheikhupura Road Factory Site Gujrat G.T. Road, Gujrat. The group consists of:

– ServiceIndustriesLimited-theholdingcompany;– ServiceIndustriesCapital(Private)Limited-Holdingof100%;– ServiceShoesLanka(Private)Limited-Holdingof60%byServiceIndustriesCapital

(Private)Limited;

Service Industries Capital (Private) Limited Service Industries Capital (Private) Limited got registered under the Companies

Ordinance, 1984 (now the Companies Act 2017) in Pakistan as a company limited by shares on 10 November 2015. The registered office of Service Industries Capital(Private)LimitedissituatedatServiceHouse,2-MainGulberg,Lahore.Themainobjectof Service IndustriesCapital (Private) Limited is tomake investment in new ventures,shares and securities, listed or otherwise, in Pakistan or elsewhere in the world, subject to requirements of applicable law.

Service Shoes Lanka (Private) Limited ServiceShoesLanka(Private)LimitedisaPrivateLimitedLiabilityCompanyincorporated

onJuly16th,2015anddomiciledinSriLankaundertheprovisionsoftheCompaniesAct No. 07 of 2007. The registered office of the Company is located at No 143/17,Sri Wickerma Mawatha, Colombo 15 and the principal place of business is located at Katunayake

2 Basis of consolidation Subsidiaries SubsidiariesareallentitiesoverwhichtheGrouphasthepowertogovernthefinancial

and operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Further, the Group also considers whether:


– It has power to direct the relevant activities of the subsidiaries; – Is exposed to variable returns from the subsidiaries; and – Decision making power allows the Group to affect its variable returns from the

subsidiaries.

All business combinations are accounted for using the acquisition method. The cost of an acquisition is measured at the fair value of the assets given and liabilities incurred or assumed at the date of exchange plus costs directly attributable to the acquisition. Identifiableassetsacquiredandliabilitiesassumedinabusinesscombination(includingcontingent liabilities) are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of the cost of acquisitionoverthefairvaluesoftheholdingcompany’sshareofidentifiablenetassetsacquired is recorded as goodwill.

TheconsolidatedfinancialstatementsoftheGroupincludethefinancialstatementsoftheholdingcompanyand itssubsidiaries.Thefinancialstatementsof thesubsidiariesare prepared for the same reporting period as the holding company, using consistent accounting policies.

The assets and liabilities of the subsidiaries have been consolidated on a line-by-line basis and the carrying value of investment held by the holding company is eliminated against the subsidiaries’ share capital and pre-acquisition reserves in the consolidated financialstatements.Materialintragroupbalancesandtransactionsareeliminated.

A change in the ownership interest of the subsidiaries, without a change of control, is accounted for as an equity transaction.

The subsidiary companies are consolidated from the date on which more than 50% votingrightsaretransferredtotheholdingcompanyorpowertogovernthefinancialand operating policies of the subsidiaries are established and are excluded from consolidation from the date of disposal or cessation of control. Non-controlling interest (NCI) is the equity in a subsidiary not attributable, directly or indirectly, to the holding company.

Associates AssociatesareallentitiesoverwhichtheGrouphassignificantinfluencebutnotcontrol.

Investment in associate is accounted for using equity method, whereby the investment is initially recorded at cost and adjusted thereafter for the post acquisition change in theGroup’sshareofnetassetsoftheassociate.TheconsolidatedprofitorlossaccountreflectstheGroupshareoftheresultsoftheoperationsoftheassociate

Iftheownershipinterestinanassociateisreducedbutsignificantinfluenceisretained,only a proportionate share of the amounts previously recognised in other comprehensive incomeisreclassifiedtoprofitorlossaccountwhereapplicable.Thegain/lossarisingondilutionofinterestinanequityaccountedinvesteeisrecognizedintheprofitorlossaccount.

The Group determines at each reporting date whether there is any objective evidence that the investment in associate is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of the associateanditscarryingvalueandrecognisesthesameintheprofitorlossaccount.

351st Quarter 2019

3 Basis of preparation 3.1 These condensed consolidated financial statements for the period endedMarch 31,

2019 are prepared in accordance with International Accounting Standard 34, “”Interim FinancialReporting””.Thesecondensedconsolidatedfinancialstatementsareunauditedand are being submitted to the shareholders as required under section 237 of the Companies Act, 2017. These do not include all of the information required for the full set ofannualfinancialstatementsand thecondensed interimfinancialstatementsshouldbereadinconjunctionwiththeannualfinancialstatementsofthecompanyfortheyearended 31 December 2018.

As per the requirements of circular No. 23/2017 dated October 4, 2017 issued by Securities&ExchangeCommissionofPakistan(SECP),companieswhosefinancialyearclosesafterDecember31,2017shallpreparefinancialstatementsinaccordancewiththeprovisions of the Companies Act, 2017.

3.2 These Condensed consolidated interim financial statements have been prepared inaccordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable inPakistanforinterimfinancialreportingcompriseof:– International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by

the International Accounting Standards Board (IASB)asnotifiedundertheCompaniesAct,2017;and– Provisions of and directives issued under 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.

3.3 Thecondensedconsolidated interimfinancialstatementsarepresented inPakRupeewhich is the company’s functional and presentation currency.

4 Accounting policies Accounting policies adopted for the preparation of these condensed consolidated

IntermfinancialstatementsarethesameasthoseappliedinthepreparationofprecedingannualfinancialstatementsoftheCompany.

The preparation of condensed consolidated interim financial statements requiresmanagement to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, incomes and expenses. Actual results may differ from these estimates. In preparing this condensed consolidated interim financial statements, the significant judgments made by themanagement in applying accounting policies and key sources of estimation were the sameasthosethatwereappliedtothefinancialstatementsasatandfortheyearendedDecember 31, 2018.

Notes to the Condensed Consolidated Interim Financial Information (Unaudited)For the period ended March 31, 2018


5 Provisionsforincometax,Workers’ProfitParticipationFundandWorkers’WelfareFundhavebeenmadeonthebasisofthreemonths’profit.Thesearesubjecttochangeonfinalresults.

6 Contingencies and commitments Contingencies 6.1 The Additional Collector (Adjudication) of Pakistan Customs Computerized System,

Karachi initiated case against the Company for failure to pay leviable sales tax and income tax of Rupees 18.6 million and 4.1 million respectively at import of tyre cord fabrics during the period w.e.f. August 2007 to July 2008 by wrongly claiming sales tax zero rating in terms of S.R.O 509 (1)/2007 dated 09-06-2007. The case has been remandedbackbytheAppellateTribunalInlandRevenue,LahoretotheCIR(Appeals),which is pending for hearing. According to the Company’s legal counsel, the Company has a good arguable case and there is likelihood that the same will be decided in its favor,hence,noprovisionhasbeenmadeinthesefinancialstatements.

6.2 The Deputy Director of Pakistan Employees Social Security Institute (PESSI), Gujrat

initiatedtwocasesagainsttheCompany.Inthefirstcase,theallegedamountrecoverableby the PESSI is Rupees 4.80 million covering the period from January 1987 to September 1992 on account of short payment of contributions. The matter was decided against the companybytheInstitutionandCompanyfiledanappealbeforetheSocialSecurityCourt,Lahore,whichispendingforhearing.Insecondcase,PESSI initiatedacaseofRupees77.6millionagainsttheCompany,againstwhichacomplaintwasfiledtotheInstitution.Social Security Institution disposed of our complaint while referreing the matter to the localofficeGujratforreconsiderationafterre-checkingofrecord.ThelocalofficeGujrat,raisedademandofsameamount,againstwhichtheCompanyfiledacomplaint;whichis pending adjudication before the Institution. During the pendency of matter before the Institution, a recoverynoticewas issuedby the local office.TheCompany filed awritpetitionbeforetheHonorableHighCourt,LahorewhereintherecoverynoticewassuspendedbytheHonorableHighCourt,Lahore.AsperlegalcounseloftheCompany,the Company has strong legal grounds for its success.

6.3 TheDCIR, LTU initiatedacaseagainst theCompanyofpost sales tax refundaudit in

whichdemandofRupees27.92millionwasraised.TheCompanyfiledanappealbeforeCIR (Appeals) in which the demand was cancelled except two points having impact of Rupees2.65million.TheCompanyhadfurtherfiledanappealbeforeATIRagainstsaidpoints.ThemanagementoftheCompanyisconfidentthatdecisionwillbeinfavouroftheCompanyhence,noprovisionhasbeenmadeinthesefinancialstatements

6.4 TheDCIR,LTUinitiatedsalestaxauditfortheyear2013-2014inwhichdemandofRupees

182.70millionwascreated.TheCompanyhasfiledanappealwithCIR(Appeals)whoconfirmedthedemandofRupees10millionandremandedbackcertainchargestothetuneof172.7million.TheCompanyfiledanappealwithATIRagainstthedecisionofCIR(Appeals)whichispendingforhearing.ThemanagementoftheCompanyisconfidentthat decision will be in favor of the Company, hence, no provision has been made in thesefinancialstatements.

371st Quarter 2019

6.5 TheDCIR,LTUinitiatedincometaxauditfortheyear2014inwhichademandofRupees123 million was created. The Company preferred an appeal before CIR(Appeals) which ispendingforhearing.ThemanagementisconfidentthatdecisionwillbeinfavoroftheCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

6.6 HonorableLahoreHighCourthasallowedapetitionfiledbytheCompanyagainstshow-

cause notice issued by DCIR amounting Rupees 13 million. The show-cause notice was issued on account of post sales tax refunds audit of various tax periods. FBR challenged thedecisionofHonorableLahoreHighCourtinAugustSupremeCourtofPakistanwhichispendingforhearing.ThemanagementisconfidentthatdecisionwillbeinfavoroftheCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

6.7 TheDCIR,LTUinitiatedacaseofwithholdingtaxauditfortaxyear2011inwhichademand

of Rupees 40.03 million under Section 161 and 205 of The Income Tax Ordinance, 2001 was created. The Company preferred an appeal before CIR (Appeal) which is pending forhearing.ThemanagementofCompanyisconfidentthatdecisionshallbeinfavorofCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

6.8 TheDCIR,LTUconductedincometaxauditfortheyear2011inwhichademandofrupees

19.6 million was created. The Company preferred an appeal before the CIR (Appeals) whichispendingforhearing.Themanagementisconfidentthatdecisionwillbeinfavorofthecompany,hence,noprovisionhasbeenmadeinthesefinancialstatements

6.9 TheCompanyhaschallenged,beforeHonorableLahoreHighCourt,Lahore,thevires

offirstprovisotosub-clause(x)ofclause(4)ofSRO491(1)/2016dated30June2016issued under sections 3 and 4 read with sections 8 and 71 of the Sales Tax Act, 1990 whereby through amendment in the earlier SRO 1125(I)/2011 dated 31 December 2011 adjustment of input sales tax on packing material of all sorts has been disallowed. The Honorable Lahore High Court has issued stay order in favor of the Company.Consequently, the Company has claimed input sales tax paid on packing material in its respective monthly sales tax returns. The management, based on advice of the legal counsel, isconfidentof favorableoutcomeof itsappeal.AnamountofRupees41.18millionbeingtheprovisionismadeinthesefinancialstatements.

6.10 TheCompanyhaschallenged,beforeHonourableLahoreHighCourt,Lahore,thevires

of clauses (h) and (I) to sub-section (1) of section 8 of the Sales Tax Act, 1990 whereby claim of input sales tax in respect of building materials, electrical and gas appliances, pipes, fittings, wires, cables and ordinary electrical fittings and sanitary fittings havebeendisallowed.TheHonorableLahoreHighCourthasissuedstayorderinfavoroftheCompany and has allowed the Company to claim input sales tax paid on such goods in its monthly sales tax returns. Consequently, the Company has claimed input sales tax on such goods in its respective monthly sales tax returns. An amount of Rupees 3.82 million beingtheprovisionismadeinthesefinancialstatements.



6.11 TheDCIR, LTU initiated income tax cases of tax years 2006 and 2008.A demand of12.7 million and 68.4 million respectively were created by amending returns. Appeals were preferred with CIR(Appeals) which were dismissed against the Company without discussing themeritsof the cases.TheCompanyhas filedappealwithATIRwhich ispendingforhearing.ThemanagementisconfidentthatdecisionwillbeinfavoroftheCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements.

6.12 TheCIR,LTUpassedanorderregardingCrestdiscrepanciesofsalestaxforanamount

ofRupees11.1million.TheCompanyfiledanappealwithATIRwhich ispending forhearing.Themanagement isconfident thatdecisionwillbe in favorof theCompany,hence,noprovisionhasbeenmadeinthesefinancialstatements

Commitments 6.13 Guarantees issued in ordinary course of business through banks are of Rs. 364 million

(Dec 2018: Rs. 523 million).

6.14 Irrevocable letters of credit outstanding at the year end are of Rs. 882 million (Dec-2018: Rs. 486.71 million).

6.15 Theamountof future ijarah rentals for ijarahfinancingand theperiod inwhich thesepayments will become due are as follows:

(Unaudited) (Audited) March December 31, 2019 31, 2018 Note (Rupees in thousand) Not later than one year 63,196 61,109 Laterthanoneyearandnotlaterthanfiveyears 85,207 87,154 Laterthanfiveyears – – 148,403 148,263 7 Property, plant and equipment Operatingfixedassets 7.1 6,485,453 5,835,196 Capital work in progress 600,865 1,219,779 7,086,317 7,054,975

7.1 Operatingfixedassets Opening written down value 5,835,196 4,842,097 Add: Additions during the period 7.2 806,583 1,633,174 6,641,779 6,475,271 Less:Disposalsduringtheperiod (at book value) 7.2 5,781 11,635 6,635,997 6,463,636 Less:Depreciationchargedduringtheperiod 156,566 611,234 Exchange/Other adjustment during the period (6,021) 17,206 6,485,453 5,835,196

391st Quarter 2019

7.2 Following is the detail of additions and disposals during the period/ year. Additions Disposals - NBV Unaudited Audited Unaudited Audited March December March December 31, 2019 31, 2018 31, 2019 31, 2018 (Rupees in thousand) Land – – – – Building on freehold land 20,086 362,957 – – Plant and machinery 697,645 1,019,700 281 1,182 Furniture,fixtureandfittings 1,052 7,784 1 194 Vehicles 435 8,171 99 284 Service equipments 87,311 113,287 24 637 Leaseholdimprovements 53 121,275 5,376 9,338 806,583 1,633,174 5,781 11,635 (Unaudited) (Audited) March December 31, 2019 31, 2018 Note (Rupees in thousand)8 Long term investments These represents long term investments in: Related parties 8.1 500,460 484,864 Others 8.2 23,060 22,050 523,520 506,914 8.1 Investment in Related Parties:

8.1.2 Investment in Associate - Speed(Private)Limited 8.1.2.1 499,980 484,384

8.1.3 Investment in Joint Venture

- S2PowerLimited(24,000fullypaidshares of Rs.10/- each) 240 240 - S2HydroLimited(24,000fullypaidshares of Rs.10/- each) 240 240

480 480 500,460 484,864



(Unaudited) (Audited) March December 31, 2019 31, 2018 (Rupees in thousand)8.1.2.1Speed(Private)Limited-associatedcompany Cost of investment 160,709 fully paid ordinary shares of Rs. 100/- each (2018: 160,709) 190,949 190,949 ServiceIndustriesCapital(Private)Limited Costofinvestment-SICPL 30,200 fully paid shares of Rs. 2,044.40 each (2018: 30,200 ) 58,721 58,721 73,000 fully paid ordinary shares of Rs. 1,272 each (2018: 73,000) 92,856 92,856 Share of post acquisition reserve As at the beginning of the period 141,858 83,042 Shareofpostacquisitionprofitfortheperiod 15,596 105,000 Less:Dividendsreceivedduringtheperiod – (46,184) 157,454 141,858 499,980 484,384 8.1.2.2 Cost of investment of Rupees 61.74 million adjustud with the distribution received from

pre-acquisitionprofitsofSpeed(Private) limitedofRupees3.02millionbringscostofinvestment to Rupees 58.72 million.

8.2 Investment in quoted securities - Available for sale investments TRGPakistanLimited 1,000,000 fully paid ordinary shares (2018- 1,000,000) 22,050 29,600 Fair value adjustment 1,010 (7,550) 23,060 22,050

411st Quarter 2019

(Unaudited) (Unaudited) March March 31, 2019 31, 2018 Note (Rupees in thousand)9 Sales - net

Sale of footwear (Net) Export sales 2,112,209 1,499,933 Localsales 1,202,148 1,117,921 3,314,357 2,617,854 Sale of tyres and tubes (Net) Export sales 223,582 232,995 Localsales 2,604,385 2,734,773 2,827,968 2,967,768 Sale of technical rubber products (Net) Localsales 2,071 1,039 2,071 1,039

6,144,396 5,586,661 10 Cost of sales

Raw material consumed 10.1 3,243,626 2,789,556 Salaries,wagesandbenefits 768,356 701,793 Stores and spares consumed 54,866 42,468 Packing material consumed 187,435 153,100 Fuel and power 214,928 176,379 Insurance 5,162 4,346 Travelling expenses 5,890 5,184 Repair and maintenance 37,109 38,127 Entertainment 1,258 755 Depreciation 139,475 127,709 Provision for slow moving items, obsolete items 14,141 (12,573)

Other manufacturing charges 61,050 38,726 4,733,295 4,065,570 Work in process: Opening Stock 423,069 311,171 Closing Stock (531,238) (367,610)

(108,169) (56,439)Cost of goods manufactured 4,625,126 4,009,131 Finished goods: Opening Stock 1,968,388 2,225,491 Finished goods purchased 756,641 614,575 Closing stock (2,423,252) (2,265,497) 301,777 574,569

4,926,903 4,583,700



(Unaudited) (Unaudited) March March 31, 2019 31, 2018 (Rupees in thousand)10.1 Raw material consumed Opening Stock 1,545,085 1,337,845 Purchases 3,224,717 2,748,009 Closing stock (1,526,175) (1,296,298) 3,243,626 2,789,556

431st Quarter 2019

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3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

3 m

onths

en

ded

ende

d en

ded

ende

d en

ded

ende

d en

ded

ende

d

M

ar. 31

, 201

9 M

ar. 31

, 201

8 Ma

r. 31,

2019

Ma

r. 31,

2018

Mar.

31, 2

019

Mar. 3

1, 20

18

Mar. 3

1, 20

19

Mar. 3

1, 20

18

Ex

terna

l sales

3,

314,3

57

2,61

7,854

2,

827,9

68

2,96

7,767

2,

071

1,03

9 6,

144,3

96

5,58

6,661

Inter-

segm

ent sa

les

–

–

–

–

–

–

–

–

To

tal re

venu

e 3,

314,3

57

2,61

7,854

2,

827,9

68

2,96

7,767

2,

071

1,03

9 6,

144,3

96

5,58

6,661

Pro

fit/(lo

ss)be

foretaxan

dun

allocate

dexpenses

362,8

62

261,5

41

362,9

01

322,5

43

(2,53

0) (3

,098)

723,2

33

580,9

86

Un

alloc

ated c

orpora

te ex

pens

es

Fin

ance

cost

– –

–

–

–

–

(1

92,71

3) (1

03,56

0)

Ot

her o

perat

ing ex

pens

es

– –

–

–

–

–

(2

11,39

6) (2

09,98

7)

Ot

her o

perat

ing in

come

–

–

–

–

–

–

15,99

5 19

,594

Tax

ation

–

–

–

–

–

–

(37,7

22)

(45,9

82)

Pro

fit aft

er tax

ation

36

2,862

26

1,541

36

2,901

32

2,543

(2

,530)

(3,09

8)

297,3

97

241,0

51

11

.1 Reconciliationo

fsegme

ntpro

fit

Totalprofitfo

rreportable

segm

ents

723,2

33

580,9

86

Un

alloc

ated e

xpen

ses

(388

,114)

(293

,953)

Pro

fit be

fore t

ax

335,1

19

287,0

33

(Ru

pees

in th

ousan

d)

Fo

otwea

r Tyr

e Te

chnic

al Ru

bber

Produ

cts

Total

To

tal

Ma

rch

Dece

mber

March

De

cemb

er Ma

rch

Dece

mber

March

De

cemb

er

31

, 201

9 31

, 201

8 31

, 201

9 31

, 201

8 31

, 201

9 31

, 201

8 31

, 201

9 31

, 201

8

11

.2 Re

conc

iliatio

n of s

egme

nt

Asse

ts & lia

bilitie

s

Total

asse

ts for

report

able

segm

ents

7,718

,907

7,18

7,855

9,

441,2

10

8,66

2,533

53

,193

54,48

1 17

,213,3

10

15,90

4,869

Unall

ocate

d asse

ts –

– –

–

–

–

2,81

0,418

2,

417,4

06

Total

asse

ts as p

er ba

lance

shee

t –

– –

– –

– 20

,023,7

28

18,32

2,275

Segm

ent li

abilit

ies

–

–

–

–

–

–

–

–

Unall

ocate

d liab

ilities

–

–

–

–

–

–

14

,231,2

61

12,83

9,111

Total

liabil

ities a

s per

balan

ce sh

eet

14,23

1,261

12

,839,1

11

451st Quarter 2019

Note

s to t

he C

onde

nsed

Inte

rim Fi

nanc

ial In

form

ation

(Una

udite

d)Fo

r the

per

iod

ende

d M

arch

31,

201

9

12

Fair v

alue m

easu

rem

ent o

f fina

ncial

instr

umen

ts.

Carry

ing Am

ount

Fair V

alue

Ot

her

Available

Loansand

financial

Note

forsale

receivables

liabilitie

sTotal

Level1

Level2

Level3

On

-balan

ce sh

eet fi

nanc

ial in

strum

ents

30 M

ar 20

19- (

Un-au

dited

)

Finan

cial a

ssets m

easu

red at

fair v

alue

23

,060

–

–

–

23,06

0 –

–

23

,060

–

–

– 23

,060

–

–

Finan

cial a

ssets n

ot me

asured

at fa

ir valu

e 12

.1

Longterminvestm

ents

–

499,9

80

–

499,9

80

–

–

–

Longtermloans

–

20,07

2–

20,07

2–

–

–

LongTermde

posit

–

108,2

94

–

108,2

94

–

–

–

Trade

debts

–

3,98

4,358

–

3,

984,3

58

–

–

–

Loansandad

vances

–

26,28

6–

26,28

6–

-

–

Trade

Depo

sits

–

80

,377

–

80,37

7 -

–

–

Ot

her R

eceiv

ables

–

66,77

6 –

66

,776

–

–

–

Cash

and B

ank B

alanc

es

–

91

,161

–

91,16

1 –

–

–

–

4,87

7,304

–

4,

877,3

04

–

–

–

Finan

cial lia

bilitie

s mea

sured

at fa

ir valu

e

–

–

–

–

–

– –

Finan

cial lia

bilitie

s not

measu

red at

fair v

alue

12.1

LongtermFinancing

–

–

3,232,1

90

3,232,1

90

–

–

–

Longtermde

posits

–

–

3,243

3,243

–

–

–

Intere

st and

Mau

k-up a

ccured

–

–

166,3

93

166,3

93

–

–

–

Short

term

borro

wings

–

–

6,82

2,258

6,

822,2

58

–

–

–

Unca

shed

divid

end w

arran

ts

–

–

31,39

9 31

,399

–

–

–

Trade

and o

ther p

ayab

les

–

–

3,

118,4

31

3,11

8,431

–

–

–

–

–

13

,373,9

14

13,37

3,914

–

–

–

(Rupe

es in

thou

sand)


Carry

ing Am

ount

Fair V

alue

Ot

her

Available

Loansand

financial

Note

forsale

receivables

liabilitie

sTotal

Level1

Level2

Level3

31

Dec 2

018

Fin

ancia

l asse

ts mea

sured

at fa

ir valu

e

22,05

0 –

–

–

22

,050

–

–

22,05

0 –

–

–

22

,050

–

–

Finan

cial a

ssets n

ot me

asured

at fa

ir valu

e 12

.1

Longterminvestm

ents

–

484,8

64

-

484,8

64

–

–

–

Longtermloans

–

20,45

0–

20,45

0–

–

–

LongTermde

posit

–

95,01

0–

95,01

0–

–

–

Trade

debts

–

3,34

4,579

–

3,

344,5

79

–

–

–

Loansandad

vances

–

33,80

2–

33,80

2–

–

–

Trade

Depo

sits

–

47

,854

–

47,85

4 –

–

–

Ot

her R

eceiv

ables

–

77,01

9 –

77

,019

–

–

–

Cash

and B

ankB

alanc

es

–

72

,652

–

72,65

2 –

–

–

–

4,

176,2

30

–

4,17

6,230

–

–

–

Finan

cial lia

bilitie

s mea

sured

at fa

ir valu

e

–

–

–

-

–

–

–

Finan

cial lia

bilitie

s not

measu

red at

fair v

alue

12.1

LongtermFinancing

–

–

3,316,8

80

3,316,8

80

–

–

–

Longtermde

posits

–

–

3,243

3,243

–

–

–

Intere

st and

Mark

-up ac

cured

–

–

146,9

17

146,9

17

–

–

–

Short

term

borro

wings

–

–

5,72

2,630

5,

722,6

30

–

–

–

Unca

shed

divid

end w

arran

ts

–

–

32,00

2 32

,002

–

–

–

Trade

and o

ther p

ayab

les

–

–

2,

726,7

90

2,72

6,790

–

–

–

–

–

11

,948,4

62

11,94

8,462

–

–

–

12.1

Them

anagem

entconsiders

thecarryinga

mountofallfinancialassetsa

ndliabilitie

snotme

asured

accordingtothefairvalue

hiera

rchyatth

eendofthereporting

periodtop

roximate

the

ir fair

value

as at

the r

eport

ing da

te.

(Rupe

es in

thou

sand)

Note

s to t

he C

onde

nsed

Inte

rim Fi

nanc

ial In

form

ation

(Una

udite

d)Fo

r the

per

iod

ende

d M

arch

31,

201

9

471st Quarter 2019

13 Related party transactions Transaction with related parties and associated undertakings, other than those disclosed

elsewhere inthefinancialstatementsareasfollows: (Unaudited) (Audited) March December 31, 2019 31, 2018 (Rupees in thousand) Associated companies Dividend received – 28,124 Reimbursement of expense – 3,802 RetirementBenefit 46,629 164,000 Key management personnel Dividend paid – 100,145 All transaction with the related parties have been carried out at arms length at normal

commercial rate. 14 The Financial Risk Management TheCompany’sactivitiesexposeit toavarietyoffinancialrisks:marketrisk(including

currencyrisk,fairvalueinterestraterisk,cashflowinterestrateriskandpricerisk),creditriskandliquidityrisk.Thecondensedinterimfinancial informationdoesnot includeallfinancialriskmanagementinformationanddisclosuresrequiredintheannualfinancialstatements, and should be read in conjunction with the company’s annual financialstatements as at December 31, 2018.

There have been no changes in the risk management policies since the year end.

15 Authorization date These financial statements were authorized for issue by the Board of Directors on

April 26, 2019.

16 General Figures have been rounded off to the nearest thousand of rupees and corresponding

figureshavebeenre-arranged,wherenecessary,forthecomparisonpurposes.However,no material re-arrangements have been made.






491st Quarter 2019

SERVIS HOUSE2-Main Gulberg, Lahore-54662, Pakistan.Tel: +92-42-35751990-96Fax: +92-42-35711827, 35710593

servisgroup.com

Report & Un-Audited Accounts for the 1st Quarter Ended March 31, 2019

Service Industries Limited

empowering

people..

empowering people..mr. hassan javed executive director mr. riaz ahmed non–executive director mr....

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