Notes to the condensed interim consolidated financial statements (un-audited)
For the period ended December 31, 2024
1.6 Renacon Pharma Limited (RPL) was incorporated on 07 July 2009 as a Private Limited Company under the
Companies Ordinance, 1984. The company was converted into Public Limited Company (unlisted) on 27 January 2017
after complying with the legal formalities. The Company engaged in the business of manufacturing of all types of
formulations of Hemodialysis Concentrate in powder and solution form for all brands of machines. Treet Corporaiton
Limited has acquired 58.16% equity stake in the company on 18 January 2017. The registered office of the company
is situated at 72-B, Industrial Area, Kot Lakhpat, Lahore.
1.7 Treet Battery Limited was incorporated on 22 February 2019 in Pakistan under the Companies Act, 2017 and in
the process of initiating its operations by the period end. The Company will carry out business as manufacturers,
assemblers, processors, producers, suppliers, sellers, importers, exporters, makers, fabricators and dealers in all
batteries including but not limited to lead acid batteries, deep cycle batteries, lithium batteries, nickel cadmimum
batteries, nickel metal hydride batteries, absorbed glass mat (AGM) batteries, Gel batteries used in or required for
industrial, transport, commercial and domestic and any other purpose. The registered office of the Company is
situated at 72-B, Industrial Area, Kot Lakhpat, Lahore.
1.8 The Group has incorporated a wholly owned foreign subsidiary in Dubai, named Treet Trading L.L.C on 26 June 2024.
The principal place of business of the company is API World Tower, Ground Floor, Office 206, UNBOX Business Center,
Sheikh Zayed Road, Dubai. The Company made an investment in 375,000 fully paid ordinary shares of AED 1 each
during the reporting period. The subsidiary will engage in the business of general trading.
2. BASIS OF PREPARATION
These condensed interim financial statements are un-audited and has been prepared in accordance with the
requirements of the approved Accounting Standards as applicable in Pakistan relating to Interim Financial Reporting.
These condensed interim financial statements do not include all the information required for full annual financial
statements, and should be read in conjunction with the financial statements of the Company for the year ended 30
June 2024.
3. ACCOUNTING POLICIES
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 preparation of the financial statements for the year ended 30
June 2024.
4. ESTIMATES
The preparation of condensed Interim financial statements requires management to make judgments, estimates
and assumptions 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 Company'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.
5. LOANS, ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES
- This includes loan amounting to Rs. 670 million given to director Mr. Syed Shahid Ali. The loan is unsecured,
markup bearing and receivable within one year.
- This also includes markup amounting to Rs. 171.9 million receivable on loan to director which carries profit at 3
Months KIBOR + 1.75%. The markup on this facility during the period ranged from 15.78% to 23.28% per annum.
36 Treet Corporation Limited
Notes to the condensed interim consolidated financial statements (un-audited)
For the period ended December 31, 2024
6. CONTINGENCIES AND COMMITMENTS
6.1 Contingencies
There is no material change in the position of contingent liabilities since the last audited published financial
statements except the following;
Treet Corporation Limited has challenged the constitutionality of Section 4C of the Income Tax Ordinance,
2001, through Writ Petition No. 2859 before the Islamabad High Court. The petition contests the inclusion
of capital gains and export income, classified under the Final Tax Regime (FTR), in the computation of
super tax liability, arguing that such inclusion is inconsistent with existing provisions of the Ordinance,
particularly Sections 4(4) and (5), 8, 37A(4), and 169, and therefore beyond legislative competence.
On October 10, 2024, the Islamabad High Court disposed of the petition favorably, granting a stay in line with
previous judgments issued by Bench VI of the Court. Subsequently, the Federal Board of Revenue filed Intra Court
Appeals (ICAs) against the decision, which are currently pending adjudication before a special division bench.
-In light of the favorable decision by the Single Judge and the expectation of a positive outcome from the Intra Court
Appeals, the Company has not recognized the super tax liability amounting to approximately Rs. 51.79 million for
Tax Year 2024 and Rs. 71.35 million for Tax Year 2025 in its financial statements.
Un-audited Audited
31 December 30 June
2024 2024
Note (Rupees in thousand)
6.2 COMMITMENTS IN RESPECT OF
-Bank Gaurantee 87,865 102,875
-Irrevocable letters of credit 1,190,423 1,179,010
Un-audited Un-audited
Six months ended Three months ended
July to July to October to October to
December December December December
2024 2023 2024 2023
(Rupees in thousand)
7. REVENUE - NET
Blades 6,456,111 5,606,023 3,184,713 2,604,574
Soaps 547,737 730,514 271,808 308,764
Packaging products 1,356,744 1,414,035 661,283 633,878
Batteries 4,199,915 3,629,670 1,845,735 1,463,887
Motor bike project 356 12,657 - 8,004
Trading operation 62,463 3,910 17,170 2,236
Pharmaceutical products 800,702 643,210 486,952 340,142
13,424,028 12,040,019 6,467,661 5,361,485
8. COST OF REVENUE
Blades (4,384,941) (4,045,957) (2,103,057) (1,870,897)
Soaps (427,441) (583,638) (220,652) (243,504)
Packaging products (1,277,385) (1,430,552) (576,103) (649,671)
Batteries (3,385,355) (2,878,539) (1,481,564) (1,228,092)
Motor bike project (4,260) (16,056) (334) (10,705)
Trading operation (25,078) (2,369) (5,544) (1,618)
Pharmaceutical products (517,486) (393,138) (304,734) (209,271)
(10,021,946) (9,350,249) (4,691,989) (4,213,758)
Half Yearly Report 2024 37
Notes to the condensed interim consolidated financial statements (un-audited)
For the period ended December 31, 2024
9 TRANSACTIONS WITH RELATED PARTIES
The related parties comprise subsidiaries, associated companies, other related group companies, directors of the
Company, key management personnel and post employment benefit plans. The Company in the normal course of
business carries out transactions with various related parties. Transactions with related parties are as follows:
Six months ended
31 December 31 December
Transactions with Relationship Nature of 2024 2023
related parties transactions (Rupees in thousand)
I. Related Parties
Packages Limited Other related party Purchase of goods - 33,795
Packages Converter Limited Other related party Purchase of goods - 57,148
IGI Insurance Limited Other related party Purchase of services 30.137 72,225
Advance for service - 18,020
IGI Life Insurance Limited Other related party Purchase of services 17,848 -
Gulab Devi Chest Hospital Other related party Purchase of services 38 -
Sale of goods 27 8
Cutting Edge (Private) Limited Other related party Purchase of services 1,073 -
Loads Limited Other related party Sale of goods - 327
Specialized Auto Parts (PVT)
Limited Other related party Sale of Goods - 105
Robart (Private) Limited Other related party Purchase of services 83 -
Elite Brands Limited Other related party Sale of Goods - 271,566
Freight charges - 1,317
Purchase of services - 15,341
Get Gaari Technologies (Pvt) Limited Other related party Purchase of services 62 -
Pakistan Standard and Ouality Other related party Funds paid to asso-
Control Authority ciated undertaking 48 -
Liaquat National Hospital Other related party Sale of Goods - 48
Purchase of services 33 479
Expenses incurred by
company 126 -
III. Post employment benefit plans
Provident fund Contribution 65,044 76,153
Service fund Contribution 36,739 24,968
IV. Key Management Personnel
Salaries and other 148.910 100,615
employee benefits - -
Loan to director - (894,000)
All transactions with related parties have been carried out on mutually agreed terms and conditions.
38 Treet Corporation Limited
