FinancialStatements

2016

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TREET GROUPOF COMPANIES Treet Corporation Limited

02 Auditors Report to the Members

03 Consolidated Balance Sheet04 Consolidated Profit and

Loss Account05 Consolidated Statement of

Comprehensive Income06 Consolidated Cash Flow

Statement07 Consolidated Statement of

Changes in Equity08 Notes to the Consolidated

Financial Statement

70 Auditors Report to the Members

71 Balance Sheet72 Profit and Loss Account73 Statement of

Comprehensive Income74 Cash Flow Statement75 Statement of Changes in

Equity76 Notes to the Financial

Statement

128 Balance Sheet129 Income and Expenditure

Account130 Statement Of

Comprehensive Income131 Cash Flow Statement132 Statement of Changes In

Accumulated Fund133 Notes to the Financial

Statements

Consolidated Financial Statements

Financial Statements

Society for Cultural Education

CONTENTS

135 Pattern of Shareholding138 Information for

Shareholders141 Dividend Mandate Form143 Dividend Mandate Form

(Urdu)145 Form of Proxy147 Form of Proxy (Urdu)149 Informational message on

Jamapunji

Treet Corporation Limited Annual Report 20162

Auditors Report to the Members

We have audited the annexed consolidated financial statements comprising consolidated balance sheet of Treet Corporation Limited (the Holding Company) and its subsidiary companies as at 30 June 2016 and the related consolidated profit and loss account, consolidated statement of comprehensive income, consolidated cash flow statement and consolidated statement of changes in equity together with the notes forming part thereof, for the year then ended. We have also expressed separate opinions on the financial statements of Treet Corporation Limited and its subsidiary company, First Treet Manufacturing Modaraba. The financial statements of other subsidiary companies, Treet Holdings Limited, Treet HR Management (Private) Limited, Global Arts Limited and Treet Power Limited, were audited by another firm of auditors, whose reports have been furnished to us and our opinion, in so far as it relates to the amounts included for such companies, is based solely on the reports of such other auditors. These financial statements are the responsibility of the Holding Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

Our audit was conducted in accordance with the International Standards on Auditing and accordingly included such tests of accounting records and such other auditing procedures as we considered necessary in the circumstances. The Groups share of income from investment in associate accounted for under equity method of Rs. 52.95 million included in the consolidated profit and loss account and note 8.2 to the consolidated financial statements is based on un-audited financial statements of the associate.

In our opinion, except for the matter in the preceding paragraph, the consolidated financial statements present fairly the consolidated financial position of Treet Corporation Limited and its subsidiary companies as at 30 June 2016 and the consolidated results of their operations for the year then ended.

KPMG Taseer Hadi & Co.Lahore Chartered AccountantsDate: October 07, 2016 (Bilal Ali)

3

Consolidated Financial Statements

Consolidated Balance SheetAs at 30 June 2016

Note 2016 2015(Rupees in thousand)

Assets `Non-current assetsProperty, plant and equipment 6 7,821,227 4,174,580 Investment property 7 19,384 28,100 Long term investments 8 297,410 260,765 Long term loans and advances 9 12,674 16,932 Long term deposits 10 34,268 29,413 Deferred taxation 11 24,269 18,649

8,209,232 4,528,439

Current assets Stores and spares 12 273,836 221,793 Stock in trade 13 1,098,072 1,286,841 Trade debts 14 616,893 482,818 Short term investments 15 498,009 844,102 Loans, advances, deposits, prepayments and other receivables 16 1,197,815 836,690

Cash and bank balances 17 650,509 2,790,287 4,335,134 6,462,531

LiabilitiesCurrent liabilities Current portion of long term liabilities 18 247,364 236,019 Short term borrowings 19 1,557,993 1,806,375 Trade and other payables 20 714,009 564,865 Accrued mark-up 21 297,720 302,408 Provision for taxation 49,652 61,006

2,866,738 2,970,673 Net current assets 1,468,396 3,491,858 Non-current liabilitiesLong term deposits 22 1,037 750 Long term liability against purchase of land 23 112,670 169,093 Redeemable capital 24 537,000 716,417 Retention money 25 11,346 - Deferred liabilities - Employee retirement benefits 26 216,881 153,635

878,934 1,039,895 Contingencies and commitments 28

8,798,694 6,980,402

Represented by:Authorized capital

150,000,000 (2015: 150,000,000) ordinary shares of Rs. 10 each 1,500,000 1,500,000 10,000,000 (2015: 10,000,000) preference shares of Rs. 10 each 100,000 100,000

1,600,000 1,600,000

Issued, subscribed and paid up capital 29 1,378,044 539,507 Reserves 30 4,811,771 1,314,473 Advance against issue of shares 31 - 2,421,612 Unappropriated profit 1,285,310 1,371,939

7,475,125 5,647,531

Non-controlling interest 32 3,341 2,388 7,478,466 5,649,919

Surplus on revaluation of land and buildings - net of tax 33 1,320,228 1,330,483 8,798,694 6,980,402

The annexed notes 1 to 54 form an integral part of these consolidated financial statements.

Syed Shahid AliChief Executive Officer

Muhammad Shafique AnjumDirector

LAHOREOctober 07, 2016

Treet Corporation Limited Annual Report 20164

Consolidated Profit and Loss AccountFor the year ended 30 June 2016

Note 2016 2015(Rupees in thousand)

Continuing operationsSales - net 34 7,615,231 6,900,175 Cost of sales 35 5,810,849 5,462,785 Gross profit 1,804,382 1,437,390

Administrative expenses 36 343,121 226,048 Distribution cost 37 999,980 951,174

1,343,101 1,177,222 Operating profit 461,281 260,168

Finance cost 38 349,904 397,035 Other operating expenses 39 70,823 33,032

420,727 430,067

Other income 40 178,865 359,704 Share of profit of associate 8.2.1 52,952 60,825

272,371 250,630 Workers' profit participation fund 16.3 4,092 4,393 Workers' welfare fund 20.3 483 (3,667)

4,575 726 Profit before taxation 267,796 249,904

Taxation - Group 41 37,175 (49,860) - Associate 8.2.1 16,307 21,779

53,482 (28,081)Profit after taxation from continuing operations 214,314 277,985

Discontinued operationsNet loss for the year 42 - (35,772)Taxation - -

- (35,772)Profit for the year 214,314 242,213 Attributable to:Equity holders of the Parent Company 213,984 242,015 Non-controlling interest 330 198

214,314 242,213 Restated

Earnings per share - continuing operationsEarnings per share - basic and diluted (Rupees) 43 1.59 3.05

The annexed notes 1 to 54 form an integral part of these consolidated financial statements.

Syed Shahid AliChief Executive Officer

Muhammad Shafique AnjumDirector

LAHOREOctober 07, 2016

5

Consolidated Financial Statements

Consolidated Statement of Comprehensive IncomeFor the year ended 30 June 2016

2016 2015(Rupees in thousand)

Profit after taxation 214,314 242,213

Other comprehensive income

Items that are or may be subsequently reclassified to profit or loss:

Realized gain on disposal of investment classified as held forsale reclassified to profit and loss account - (48)

Unrealized gain on available for sale investments including Group's share in associate - 522

Items that will never be reclassifiedto profit or loss account:

Re-measurement of defined benefit obligation - net of tax (58,699) (7,498)

Total comprehensive income for the year 155,615 235,189

Attributable to:

Equity holders of the Parent Company 155,285 234,991 Non-controlling interest 330 198

155,615 235,189

The annexed notes 1 to 54 form an integral part of these consolidated financial statements.

Syed Shahid AliChief Executive Officer

Muhammad Shafique AnjumDirector

LAHOREOctober 07, 2016

Treet Corporation Limited Annual Report 20166

Consolidated Cash Flow StatementFor the year ended 30 June 2016

2016 2015Note (Rupees in thousand)

Cash generated from operations 49 885,405 132,865

Finance cost paid (354,592) (394,140)Taxes paid (90,343) (47,582)WPPF and WWF - net 4,698 (13,186)Payment to gratuity fund and superannuation fund (47,943) (23,285)Long term loans and deposits - net (597) 4,477

(488,777) (473,716)Net cash generated from / (used in) operating activities 396,628 (340,851)

Cash flows from investing activities

Fixed capital expenditure (3,940,961) (1,238,656)Proceeds from sale of property, plant and equipment 30,982 144,944 Proceeds from sale of non current assets held for sale - 104,000 Proceeds from sale of investment property 18,500 - Proceeds from sale of long term investments - 93,528 Profit received on bank deposits 110,983 31,317 Dividend received 2,586 10,731 Net cash used in investing activities (3,777,910) (854,136)

Cash flows from financing activities

Long term deposits 287 283 Proceeds from issue of right shares 1,623,786 2,421,612 Redemption of participation term certificates (6,272) (6,273)Short