Condensed interim statement of changes in equity (un-audited)

For the Half Year Ended December 31, 2024

Capital reserves Revenue reserve

Deposit for Surplus on
Certificate
purchase of Statutory revaluation of Demerger Accumulated
Capital Total
Certificate Reserve property, plant Reserve profit
and equipment
(Rupees in thousand)
Balance as at 1 July 2023 (audited) 8,835,903 1 511,941 553,025 (6,879,903) (27,118) 2,993,849

Total comprehensive income for the period

Profit for the period - - - - - 156,479 156,479
Other comprehensive income for the period - - - - - - -
- - - - - 156,479 156,479
Surplus transferred to accumulated profit on account of:
Incremental depreciation charged during the period - - - (7,766) - 7,766 -
Balance as at 31 December 2023 8,835,903 1 511,941 545,259 (6,879,903) 137,127 3,150,328

Total comprehensive income for the period

Profit for the period - - - - - 109,910 109,910
Other comprehensive income for the period - - - 81,497 - - 81,497
- - - 81,497 - 109,910 191,407
Surplus transferred to accumulated profit on account of:
Incremental depreciation charged during the period - - - (7,640) - 7,640 -
Transfer of 20% profit for the year to statutory reserve - - 53,278 - - (53,278) -
Balance as at 30 June 2024 (audited) 8,835,903 1 565,219 619,116 (6,879,903) 201,399 3,341,735

Total comprehensive income for the period

Profit for the period - - - - - 74,542 74,542
Other comprehensive income for the period - - - - - - -
- - - - - 74,542 74,542
Surplus transferred to accumulated profit on account of:
Incremental depreciation charged during the period - - - (8,820) - 8,820 -
Balance as at 31 December 2024 8,835,903 1 565,219 610,296 (6,879,903) 284,761 3,416,277

The attached notes 1 to 18 form an integral part of these condensed interim financial statements.

LAHORE Syed Shehryar Ali Mansoor Murad Syed Shahid Ali Ms. Sidra Fatima Sheikh
February 26, 2025 Chief Executive Officer Chief Financial Officer Director Director

Half Yearly Report 2024 9

Condensed interim statement of cash flows (un-audited)
For the Half Year Ended December 31, 2024

31 December 31 December
2024 2023
Note (Rupees in thousand)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before levies and income tax 131,390 181,422
Adjustments for non-cash and other items:
Depreciation on operating fixed assets 22,882 19,805
Impairment allowance for expected credit loss 4,325 (1,488)
Exchange loss/ (gain) 133 (1,100)
Profit on bank deposits (601) (6,116)
Intercompany markup income (48,084) (41,253)
Finance cost 419 1,831
(20,926) (28,321)
Operating cash flows before working capital changes 110,464 153,101

(Increase) / decrease in operating assets :

Stores and spares (1,900) 4,767
Stock-in-trade (56,362) (108,063)
Trade debtors (19,225) 60,018
Advances, deposits, prepayments and other receivables (237,293) 84,454
Taxes recoverable/ adjustable 63,784 (100,983)
(250,996) (59,807)

Increase in current liabilities:

Retention money payable 1,130 1,142
Trade and other payables 47,444 62,684
48,574 63,826
Cash (used in)/ generated from operations (91,958) 157,120

Finance cost paid (419) (1,831)

Levies and income tax paid (59,857) (126,508)
Long term deposits - net - 12,070

Net cash (used in)/ generated from operating activities (152,234) 40,851

CASH FLOWS FROM INVESTING ACTIVITIES

Investments made in property, plant and equipment (12,745) (27,245)
Profit received on bank deposits 601 6,116
Net cash used in investing activities (12,144) (21,129)

CASH FLOWS FROM FINANCING ACTIVITIES

Net cash generated from financing activities - -
NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS (164,378) 19,722
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 195,837 65,313
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 10 31,459 85,035

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

LAHORE Syed Shehryar Ali Mansoor Murad Syed Shahid Ali Ms. Sidra Fatima Sheikh
February 26, 2025 Chief Executive Officer Chief Financial Officer Director Director

10 FIRST TREET MANUFACTURING MODARABA

Notes to the condensed interim financial statement (un-audited)
For the Half Year Ended December 31, 2024

1. LEGAL STATUS AND NATURE OF BUSINESS

First Treet Manufacturing Modaraba (the Modaraba) is a multipurpose, perpetual and multi dimensional modaraba formed
on 27 July 2005 under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and rules framed
thereunder and is managed by Treet Holdings Limited (a wholly owned subsidiary of Treet Corporation Limited (TCL), the
parent company of the Modaraba), incorporated in Pakistan under the (repealed) Companies Ordinance, 1984 (now the Com-
panies Act, 2017) and registered with the Registrar of Modaraba Companies. The registered office of the Modaraba and its
management company is situated at 72 - B, Kot Lakhpat, Industrial Area, Lahore. The Modaraba is listed on Pakistan Stock
Exchange Limited and is engaged in the manufacturing and sale of corrugated boxes and soaps.

2. BASIS OF PREPARATION

2.1 These condensed interim financial statements are unaudited and have been prepared in accordance with the approved
accounting standards as applicable in Pakistan for interim financial reporting (IAS-34) and the requirements of the
Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, the Modaraba Companies and Modaraba
Rules, 1981 and Prudential Regulations for Modarabas issued by the Securities and Exchange Commission of Pakistan
(the Modaraba Regulations). In case above requirements of applicable accounting standards differ, the provisions of or
directives issued under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 and the Modaraba
Companies and Modaraba Rules, 1981 and directives issued by Securities and Exchange Commission of Pakistan shall
prevail. The disclosures in these condensed interim financial statements do not include all the information reported in
audited annual financial statements and should therefore be read in conjunction with the financial statements for the year
ended 30 June 2024.

2.2 The preparation of condensed Interim financial statements requires management to make judgments, estimates and as-
sumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and
expense. Actual results may differ from these estimates. The significant judgments made by management in applying the
Modaraba’s accounting policies and the key sources of estimates uncertainty were the same as those that applied to the
financial statements for the year ended 30 June 2024.

The Institute of Chartered Accountants of Pakistan (ICAP) have withdrawn the Technical Release 27 “IAS 12, Income Taxes
(Revised 2012)” and issued guidance- “IAS 12 Application Guidance on Accounting for Minimum Taxes and Final Taxes”. The
said guidance suggests taxes paid under final or minimum tax regime to be shown seperately as a levy instead of showing
it in current tax. Accordingly comparative figures have been rearranged/ reclassified as under:

Half year ended Quarter ended

Reclassified from Reclassified to
31 December 2023 31 December 2023
(Rupees in thousand)
Taxation - Income tax Levies 27,686 13,504

2.3 These condensed interim financial statements are presented in Pak Rupees which is also the Modaraba’s functional
currency. All financial information presented in Pak Rupees has been rounded to the nearest thousand of Rupees. Figures
for previous year/ period are rearranged wherever necessary to facilitate comparison. Appropriate disclosure is given in
relevant note in case of material rearrangement.

3. MATERIAL ACCOUNTING POLICY INFORMATION

3.1 The accounting policies and the methods of computation adopted in the preparation of these condensed interim financial
statements are the same as those applied in the preparation of the annual audited financial statements for the year ended
30 June 2024.

Half Yearly Report 2024 11