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Innovation to your BusinessBringing Technology
Interim Financial Reportfor the half year ended
30 June 2016
Corporate Information
Director’s Review
Condensed Interim Financial Statements
Condensed Interim Balance Sheet
Condensed Interim Profit and Loss Account
Condensed Interim Statement of Comprehensive Income
Condensed Interim Cash Flow Statement
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Information
Condensed Interim Consolidated Financial Statements
Condensed Interim Consolidated Balance Sheet
Condensed Interim Consolidated Profit and Loss Account
Condensed Interim Consolidated Statement of Comprehensive Income
Condensed Interim Consolidated Cash Flow Statement
Condensed Interim Consolidated Statement of Changes in Equity
Notes to the Condensed Interim Consolidated Financial Information
Contents02
03
08
10
11
12
13
14
28
30
31
32
33
34
Corporate Information
Director’s Review
Condensed Interim Financial Statements
Condensed Interim Balance Sheet
Condensed Interim Profit and Loss Account
Condensed Interim Statement of Comprehensive Income
Condensed Interim Cash Flow Statement
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Information
Condensed Interim Consolidated Financial Statements
Condensed Interim Consolidated Balance Sheet
Condensed Interim Consolidated Profit and Loss Account
Condensed Interim Consolidated Statement of Comprehensive Income
Condensed Interim Consolidated Cash Flow Statement
Condensed Interim Consolidated Statement of Changes in Equity
Notes to the Condensed Interim Consolidated Financial Information
Contents02
03
08
10
11
12
13
14
28
30
31
32
33
34
Systems Limited | Interim Financial Report half year ended 30 June 2016 03
DIRECTOR’S REVIEW
www.systemsltd.com02
CORPORATE INFORMATION
BOARD OF DIRECTORS
Mr. Aezaz Hussain Non-executiveChairman
Mr. Asif Peer ExecutiveCEO and Managing Director
Mr. Arshad Masood Non-executiveDirector
Mr. Omar Saeed IndependentDirector
Mr. Ayaz Dawood IndependentDirector
Mr. Asif Jooma IndependentDirector
Mr. Tahir Masaud IndependentDirector
AUDIT COMMITTEE
Mr. Ayaz DawoodChairman
Mr. Omer SaeedMember
Mr. Tahir MasaudMember
HUMAN RESOURCE & REMUNERATION COMMITTEE
Mr. Omar SaeedChairman
Mr. Asif JoomaMember
Mr. Tahir MasaudMember
CHIEF FINANCIAL OFFICER & COMPANY SECRETARY
Mr. Affan Sajjad
AUDITORS
Ernst & Young Ford Rhodes Sidat HyderChartered Accountants Lahore.
LEGAL ADVISOR
Hassan & Hassan Advocates
BANKERS
Habib Metropolitan Bank LimitedUnited Bank LimitedStandard Chartered Bank (Pakistan)Limited Albaraka Bank LimitedBank Alfalah LimitedBank Islami LimitedMeezan Bank LimitedDubai Islamic BankFaysal Bank LimitedDeutsche Bank AGSilk Bank Limited
SHARES REGISTRAR
THK Associates (Private) Limited. 2nd Floor, State Life Building-3,Dr. Ziauddin Ahmed Road,Karachi.T: +92 21 111-000-322F: +92 21 35655595
REGISTERED OFFICE
Chamber of Commerce Building,11 Sharae Aiwane Tijarat,Lahore, Pakistan.T: +92 42 36304825-35F: +92 42 36368857
KARACHI OFFICE
E-5, Central Commercial Area,Shaheed-e-Millat Road,Karachi, PakistanT: +92 21 34549385-87F: +92 21 34549389
DUBAI OFFICE
TechVista Systems FZ-LLCOffice 105, Building 11Dubai Internet City,PO Box 500497,Dubai, UAET: + 9714 3693525F: +9714 456 3761
WEB PRESENCE
www.systemsltd.com
On behalf of the Board of Directors we are pleased to present the Financial Statements together with the Consolidated Financial Statements for the half year ended June 30, 2016.
MARKET OUTLOOK
Our business has been growing in line with our expectations, we have added many new logos this year from our US business and this has been the growth engine for us. We have been aggressively working on designing and implementing vertical based business solutions in the Apparel, Retail, ecommerce and Business Intelligence space, this investment will provide us differential advantage over our competitors in this segment. Our Investment in the leadership and re-alignment in our business model will strengthen our long term recurring revenues and sustainability. Our BPO business has shown strength over last 6 months as well and we expect this to be steady this year.
We have been adding new customers every quarter to our portfolio from MEA region, this is building our recurring revenue stream and will be the fuel for our future growth. With the consistent expansion and client acquisition our solution portfolio is growing and this is helping us in getting recurring business of Managed Services. We are foreseeing steady growth from our regional business.
On the Domestic Front, during first six months we have seen slower project closure rate from Public Sector with respect to the submitted proposals. We are expecting that these proposals will yield better closure rate during Q3 and Q4.
Our flagship product OneLoad has crossed monthly transactions of 120,000+, up from 30,000 at the start of the year. The company also completed its direct integration with all five telecom service providers and has ramped up to an annual transaction run rate of 1.5 million/year by Q3. The monthly throughput more than doubled to cross PKR 33 million. OneLoad also completed its integration with the banking switch, 1-Link, giving the company cash collection services at all branches of National Bank, Standard Chartered, Silk Bank and several others. OneLoad is aggressively ramping up its direct sales team and working on marketing campaigns with Telecom companies to increase its throughput and volume.
FINANCIAL RESULTS
During the half year ended 2016, company's revenues grew by 22% as compared to the half year 2015. Gross profit and operating profit were recorded at PKR 390.55 million and PKR 239.65 million with a growth of 2% and 29% respectively. This was achieved through improving operational efficiency. Resultantly, company achieved profit after taxation of PKR 252.54 million, 14% above the corresponding period. Earnings per share increased by 11% from PKR 2.04 to PKR 2.27.
Revenue
Gross Profit
Profit Before Taxation
Profit After Taxation
Earnings Per share (Rs)
Half year ended30 June 2016
Hal year ended30 June 2015
Change%
Unconsolidated
1,338,353,187
390,551,260
254,515,945
252,543,532
2.27
1,094,822,222
381,801,621
229,496,505
221,150,739
2.04
22.24%
2.29%
10.90%
14.20%
11.27%
Consolidated revenue and gross profit increased significantly by about 36% and 19% respectively. Profit after tax increased by 12% from the corresponding period. Earnings per share increased by 9% from PKR 1.92 to PKR 2.09.
Revenue
Gross Profit
Profit Before Taxation
Profit After Taxation
Earnings Per share (Rs)
Half year ended30 June 2016
Half year ended30 June 2015
Change%
Consolidated
1,562,677,245
427,528,679
231,489,812
229,517,399
2.09
1,151,540,456
360,766,671
213,921,797
205,576,031
1.92
35.70%
18.51%
8.21%
11.65%
8.85%
Systems Limited | Interim Financial Report half year ended 30 June 2016 03
DIRECTOR’S REVIEW
www.systemsltd.com02
CORPORATE INFORMATION
BOARD OF DIRECTORS
Mr. Aezaz Hussain Non-executiveChairman
Mr. Asif Peer ExecutiveCEO and Managing Director
Mr. Arshad Masood Non-executiveDirector
Mr. Omar Saeed IndependentDirector
Mr. Ayaz Dawood IndependentDirector
Mr. Asif Jooma IndependentDirector
Mr. Tahir Masaud IndependentDirector
AUDIT COMMITTEE
Mr. Ayaz DawoodChairman
Mr. Omer SaeedMember
Mr. Tahir MasaudMember
HUMAN RESOURCE & REMUNERATION COMMITTEE
Mr. Omar SaeedChairman
Mr. Asif JoomaMember
Mr. Tahir MasaudMember
CHIEF FINANCIAL OFFICER & COMPANY SECRETARY
Mr. Affan Sajjad
AUDITORS
Ernst & Young Ford Rhodes Sidat HyderChartered Accountants Lahore.
LEGAL ADVISOR
Hassan & Hassan Advocates
BANKERS
Habib Metropolitan Bank LimitedUnited Bank LimitedStandard Chartered Bank (Pakistan)Limited Albaraka Bank LimitedBank Alfalah LimitedBank Islami LimitedMeezan Bank LimitedDubai Islamic BankFaysal Bank LimitedDeutsche Bank AGSilk Bank Limited
SHARES REGISTRAR
THK Associates (Private) Limited. 2nd Floor, State Life Building-3,Dr. Ziauddin Ahmed Road,Karachi.T: +92 21 111-000-322F: +92 21 35655595
REGISTERED OFFICE
Chamber of Commerce Building,11 Sharae Aiwane Tijarat,Lahore, Pakistan.T: +92 42 36304825-35F: +92 42 36368857
KARACHI OFFICE
E-5, Central Commercial Area,Shaheed-e-Millat Road,Karachi, PakistanT: +92 21 34549385-87F: +92 21 34549389
DUBAI OFFICE
TechVista Systems FZ-LLCOffice 105, Building 11Dubai Internet City,PO Box 500497,Dubai, UAET: + 9714 3693525F: +9714 456 3761
WEB PRESENCE
www.systemsltd.com
On behalf of the Board of Directors we are pleased to present the Financial Statements together with the Consolidated Financial Statements for the half year ended June 30, 2016.
MARKET OUTLOOK
Our business has been growing in line with our expectations, we have added many new logos this year from our US business and this has been the growth engine for us. We have been aggressively working on designing and implementing vertical based business solutions in the Apparel, Retail, ecommerce and Business Intelligence space, this investment will provide us differential advantage over our competitors in this segment. Our Investment in the leadership and re-alignment in our business model will strengthen our long term recurring revenues and sustainability. Our BPO business has shown strength over last 6 months as well and we expect this to be steady this year.
We have been adding new customers every quarter to our portfolio from MEA region, this is building our recurring revenue stream and will be the fuel for our future growth. With the consistent expansion and client acquisition our solution portfolio is growing and this is helping us in getting recurring business of Managed Services. We are foreseeing steady growth from our regional business.
On the Domestic Front, during first six months we have seen slower project closure rate from Public Sector with respect to the submitted proposals. We are expecting that these proposals will yield better closure rate during Q3 and Q4.
Our flagship product OneLoad has crossed monthly transactions of 120,000+, up from 30,000 at the start of the year. The company also completed its direct integration with all five telecom service providers and has ramped up to an annual transaction run rate of 1.5 million/year by Q3. The monthly throughput more than doubled to cross PKR 33 million. OneLoad also completed its integration with the banking switch, 1-Link, giving the company cash collection services at all branches of National Bank, Standard Chartered, Silk Bank and several others. OneLoad is aggressively ramping up its direct sales team and working on marketing campaigns with Telecom companies to increase its throughput and volume.
FINANCIAL RESULTS
During the half year ended 2016, company's revenues grew by 22% as compared to the half year 2015. Gross profit and operating profit were recorded at PKR 390.55 million and PKR 239.65 million with a growth of 2% and 29% respectively. This was achieved through improving operational efficiency. Resultantly, company achieved profit after taxation of PKR 252.54 million, 14% above the corresponding period. Earnings per share increased by 11% from PKR 2.04 to PKR 2.27.
Revenue
Gross Profit
Profit Before Taxation
Profit After Taxation
Earnings Per share (Rs)
Half year ended30 June 2016
Hal year ended30 June 2015
Change%
Unconsolidated
1,338,353,187
390,551,260
254,515,945
252,543,532
2.27
1,094,822,222
381,801,621
229,496,505
221,150,739
2.04
22.24%
2.29%
10.90%
14.20%
11.27%
Consolidated revenue and gross profit increased significantly by about 36% and 19% respectively. Profit after tax increased by 12% from the corresponding period. Earnings per share increased by 9% from PKR 1.92 to PKR 2.09.
Revenue
Gross Profit
Profit Before Taxation
Profit After Taxation
Earnings Per share (Rs)
Half year ended30 June 2016
Half year ended30 June 2015
Change%
Consolidated
1,562,677,245
427,528,679
231,489,812
229,517,399
2.09
1,151,540,456
360,766,671
213,921,797
205,576,031
1.92
35.70%
18.51%
8.21%
11.65%
8.85%
Condensed InterimFinancial Information
23 August 2016Lahore
Asif PeerChief Executive
On behalf of the Board
www.systemsltd.com04
FUTURE OUTLOOK
2016 Plans
The 2016 financial year is targeted towards achieving historical growth trend. This growth is attributed to the following factors:
Ÿ We are aggressively working on Service Delivery Model and developing end to end solutions to create recurring business model for our services.
Ÿ We are expecting OneLoad will create the disruption in Pakistan Payment Industry and will provide us desired growth in terms of revenue and valuation.
Ÿ Our relationship with most of our existing customers is of recurring nature and through our laser focused efforts and engagement management approach we are confident that majority of our customers will carry along with us and contribute to our growth.
Ÿ We are well poised to take advantage this year from our investment in innovation and solution development for Apparel/Retail, Business Process Automation and Business Intelligence.
Ÿ We have invested and aligned our resources to practice based structure and this is strengthening our market positioning to be a more specialized player versus generic player in the market.
Ÿ In Pakistan, Public Sector has been investing heavily in Information Technology Enabled Services and we are well poised to get good chunk of business due to our positioning and successful track record in Pakistan.
Ÿ Our relationship with Principals (IBM, Microsoft) have been solidified over past few years and we are getting good business references, leads and support globally.
Ÿ We are focused on sustainable growth through new business at desired margins.
Ÿ We are committed to continuously invest in innovation for our better future.
Ÿ With Pakistan Law and Order getting better we envision significant opportunities in our business, as our foreign customers/prospects will feel comfortable in visiting us and this will spur the growth in Pakistan IT Sector.
Ÿ We are expecting about 80% of our business from Export Services and hence dollar based, our expenses are in PKR and any dollar devaluation will help us in improving our overall profitability.
Ÿ Our Export Tax Exemption has been extended to 2019 and this has provided further confidence to the sector.
Ÿ Our new Office Building in Lahore will be partially operational in Q1-2017 and this will bring efficiency and savings by combining our four rental office locations to our own premise.
ACKNOWLEDGEMENT
The Board takes this opportunity to thank the Company's valued customers, bankers and other stakeholders for their corporation and support. The Board greatly appreciates hard work and dedication of all employees of the Company.
Condensed InterimFinancial Information
23 August 2016Lahore
Asif PeerChief Executive
On behalf of the Board
www.systemsltd.com04
FUTURE OUTLOOK
2016 Plans
The 2016 financial year is targeted towards achieving historical growth trend. This growth is attributed to the following factors:
Ÿ We are aggressively working on Service Delivery Model and developing end to end solutions to create recurring business model for our services.
Ÿ We are expecting OneLoad will create the disruption in Pakistan Payment Industry and will provide us desired growth in terms of revenue and valuation.
Ÿ Our relationship with most of our existing customers is of recurring nature and through our laser focused efforts and engagement management approach we are confident that majority of our customers will carry along with us and contribute to our growth.
Ÿ We are well poised to take advantage this year from our investment in innovation and solution development for Apparel/Retail, Business Process Automation and Business Intelligence.
Ÿ We have invested and aligned our resources to practice based structure and this is strengthening our market positioning to be a more specialized player versus generic player in the market.
Ÿ In Pakistan, Public Sector has been investing heavily in Information Technology Enabled Services and we are well poised to get good chunk of business due to our positioning and successful track record in Pakistan.
Ÿ Our relationship with Principals (IBM, Microsoft) have been solidified over past few years and we are getting good business references, leads and support globally.
Ÿ We are focused on sustainable growth through new business at desired margins.
Ÿ We are committed to continuously invest in innovation for our better future.
Ÿ With Pakistan Law and Order getting better we envision significant opportunities in our business, as our foreign customers/prospects will feel comfortable in visiting us and this will spur the growth in Pakistan IT Sector.
Ÿ We are expecting about 80% of our business from Export Services and hence dollar based, our expenses are in PKR and any dollar devaluation will help us in improving our overall profitability.
Ÿ Our Export Tax Exemption has been extended to 2019 and this has provided further confidence to the sector.
Ÿ Our new Office Building in Lahore will be partially operational in Q1-2017 and this will bring efficiency and savings by combining our four rental office locations to our own premise.
ACKNOWLEDGEMENT
The Board takes this opportunity to thank the Company's valued customers, bankers and other stakeholders for their corporation and support. The Board greatly appreciates hard work and dedication of all employees of the Company.
This page has been left blank intentionally
Systems Limited | Interim Financial Report half year ended 30 June 2016 07
AUDITORS' REPORT TO THE MEMBERS ONREVIEW OF INTERIM FINANCIAL INFORMATION
Introduction
We have reviewed the accompanying condensed interim balance sheet of Systems Limited as at 30 June 2016 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof, for the six-month period then ended (here-in-after referred to as the “interim financial information”). Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.
Chartered Accountants
Engagement Partner: Naseem Akbar
Lahore: 29 August 2016
This page has been left blank intentionally
Systems Limited | Interim Financial Report half year ended 30 June 2016 07
AUDITORS' REPORT TO THE MEMBERS ONREVIEW OF INTERIM FINANCIAL INFORMATION
Introduction
We have reviewed the accompanying condensed interim balance sheet of Systems Limited as at 30 June 2016 and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof, for the six-month period then ended (here-in-after referred to as the “interim financial information”). Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.
Chartered Accountants
Engagement Partner: Naseem Akbar
Lahore: 29 August 2016
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
CONDENSED INTERIM BALANCE SHEET
LAHOREAEZAZ HUSSAIN
Chairman
as at 30 June 2016
ASSETS
Non-current assets
Property and equipment
Intangibles
Long term deposits
Long term investments
Deferred taxation
Total non-current assets
Current assets
Unbilled revenue
Trade debts
Advances - considered good
Trade deposits and short term prepayments
Interest accrued
Receivable from related parties
Tax refunds due from the Government
Short term investments
Cash and bank balances
Total current assets
TOTAL ASSETS
5 434,018,869 359,204,912
6 45,662,020 42,247,518
7 9,895,100 9,895,100
51,077,980 51,077,980
5,570,581 809,510
546,224,550 463,235,020
224,109,040 244,214,338
8 1,211,860,956 1,096,796,692
9 88,107,505 68,055,610
10 108,548,270 48,101,585
1,468,963 12,585,928
11 244,059,518 164,572,856
77,835,118 55,143,956
12 125,000,000 557,799,398
13 327,730,162 144,644,586
2,408,719,532 2,391,914,949
2,954,944,082 2,855,149,969
www.systemsltd.com08
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
ASIF PEERChief Executive
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
Systems Limited | Interim Financial Report half year ended 30 June 2016 09
EQUITY AND LIABILITIES
Share capital and reserves
Authorized share capital
150,000,000 (2015: 150,000,000)ordinary shares of Rs. 10 each
Issued, subscribed and paid up share capital
Reserves
Unappropriated profit
Total shareholders' equity
Non-current liabilities
Long term advances
Current liabilities
Trade and other payables
Short term borrowings
Unearned revenue
Current portion of long term advances
Total current liabilities
Contingencies and commitments
1,500,000,000
1,500,000,000
14 1,110,784,920 1,106,808,760
436,429,515 420,558,053
1,081,956,042 968,260,624
2,629,170,477 2,495,627,437
15 16,663,923 7,652,045
16 130,108,773 237,042,067
17 110,000,000
69,000,909 109,811,070
- 5,017,350
309,109,682 351,870,487
18 - -
TOTAL EQUITY & LIABILITIES 2,954,944,082 2,855,149,969
-
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
CONDENSED INTERIM BALANCE SHEET
LAHOREAEZAZ HUSSAIN
Chairman
as at 30 June 2016
ASSETS
Non-current assets
Property and equipment
Intangibles
Long term deposits
Long term investments
Deferred taxation
Total non-current assets
Current assets
Unbilled revenue
Trade debts
Advances - considered good
Trade deposits and short term prepayments
Interest accrued
Receivable from related parties
Tax refunds due from the Government
Short term investments
Cash and bank balances
Total current assets
TOTAL ASSETS
5 434,018,869 359,204,912
6 45,662,020 42,247,518
7 9,895,100 9,895,100
51,077,980 51,077,980
5,570,581 809,510
546,224,550 463,235,020
224,109,040 244,214,338
8 1,211,860,956 1,096,796,692
9 88,107,505 68,055,610
10 108,548,270 48,101,585
1,468,963 12,585,928
11 244,059,518 164,572,856
77,835,118 55,143,956
12 125,000,000 557,799,398
13 327,730,162 144,644,586
2,408,719,532 2,391,914,949
2,954,944,082 2,855,149,969
www.systemsltd.com08
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
ASIF PEERChief Executive
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
Systems Limited | Interim Financial Report half year ended 30 June 2016 09
EQUITY AND LIABILITIES
Share capital and reserves
Authorized share capital
150,000,000 (2015: 150,000,000)ordinary shares of Rs. 10 each
Issued, subscribed and paid up share capital
Reserves
Unappropriated profit
Total shareholders' equity
Non-current liabilities
Long term advances
Current liabilities
Trade and other payables
Short term borrowings
Unearned revenue
Current portion of long term advances
Total current liabilities
Contingencies and commitments
1,500,000,000
1,500,000,000
14 1,110,784,920 1,106,808,760
436,429,515 420,558,053
1,081,956,042 968,260,624
2,629,170,477 2,495,627,437
15 16,663,923 7,652,045
16 130,108,773 237,042,067
17 110,000,000
69,000,909 109,811,070
- 5,017,350
309,109,682 351,870,487
18 - -
TOTAL EQUITY & LIABILITIES 2,954,944,082 2,855,149,969
-
CONDENSED INTERIM PROFIT AND LOSS ACCOUNTfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
Revenue
Cost of sales
Gross profit
Distribution cost
Administrative expenses
Research & development expenses
Operating profit
Other income 19
Finance cost
Profit before taxation
Taxation
Profit after taxation
Earnings per share:
Basic earnings per share 21
Diluted earnings per share
1,094,822,222
713,020,601
381,801,621
42,106,084
136,597,877
16,864,096
195,568,057
186,233,564
44,406,670
230,640,234 1,143,729
229,496,505 8,345,766
221,150,739
2.04
2.02
692,959,932
490,958,636
202,001,296
3,285,669
69,974,091
(2,687,921)
70,571,839
131,429,457
4,531,816
135,961,273 411,557
135,549,716
(27,587)
135,577,303
1.22
1.22
558,852,472
357,533,398
201,319,074
22,302,589
78,920,317
7,073,672
108,296,578
93,022,496
23,892,523
116,915,019 473,767
116,441,252
5,067,425
111,373,827
1.03
1.02
www.systemsltd.com10
1,338,353,187
947,801,927
390,551,260
20,368,955
128,751,392
1,781,590
150,901,937
239,649,323
15,640,677
255,290,000 774,055
254,515,945
1,972,413
252,543,532
2.27
2.26
NoteAmounts in Rupees 2016 2015
Un-audited Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-auditedUn-audited Un-audited
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
Half year ended 30 June
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
11
NoteAmounts in Rupees 2016 2015
Un-audited Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-auditedUn-audited Un-audited
Half year ended 30 June
252,543,532 221,150,739 135,577,303 111,373,827Profit for the period
Other comprehensive income
Total comprehensive income for the period
- - - -
252,543,532 221,150,739 135,577,303 111,373,827
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
Systems Limited | Interim Financial Report half year ended 30 June 2016
CONDENSED INTERIM PROFIT AND LOSS ACCOUNTfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
Revenue
Cost of sales
Gross profit
Distribution cost
Administrative expenses
Research & development expenses
Operating profit
Other income 19
Finance cost
Profit before taxation
Taxation
Profit after taxation
Earnings per share:
Basic earnings per share 21
Diluted earnings per share
1,094,822,222
713,020,601
381,801,621
42,106,084
136,597,877
16,864,096
195,568,057
186,233,564
44,406,670
230,640,234 1,143,729
229,496,505 8,345,766
221,150,739
2.04
2.02
692,959,932
490,958,636
202,001,296
3,285,669
69,974,091
(2,687,921)
70,571,839
131,429,457
4,531,816
135,961,273 411,557
135,549,716
(27,587)
135,577,303
1.22
1.22
558,852,472
357,533,398
201,319,074
22,302,589
78,920,317
7,073,672
108,296,578
93,022,496
23,892,523
116,915,019 473,767
116,441,252
5,067,425
111,373,827
1.03
1.02
www.systemsltd.com10
1,338,353,187
947,801,927
390,551,260
20,368,955
128,751,392
1,781,590
150,901,937
239,649,323
15,640,677
255,290,000 774,055
254,515,945
1,972,413
252,543,532
2.27
2.26
NoteAmounts in Rupees 2016 2015
Un-audited Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-auditedUn-audited Un-audited
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
Half year ended 30 June
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
11
NoteAmounts in Rupees 2016 2015
Un-audited Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-auditedUn-audited Un-audited
Half year ended 30 June
252,543,532 221,150,739 135,577,303 111,373,827Profit for the period
Other comprehensive income
Total comprehensive income for the period
- - - -
252,543,532 221,150,739 135,577,303 111,373,827
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
Systems Limited | Interim Financial Report half year ended 30 June 2016
CONDENSED INTERIM CASH FLOW STATEMENTfor the half year ended 30 June 2016
Note
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
30 June
2016
30 June
2015Amounts in Rupees
www.systemsltd.com12
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations
Finance cost paid
Taxes paid
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment
Development expenditure
Sale proceeds from disposal of property and equipment
Decrease in long term deposits
Purchase / (disposal) of short term investments
Profit received on bank deposits
Net cash inflow / (outflow) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of share options
Inital Public Offer (IPO) related expenses
Increase in short term borrowings
Dividend paid
Increase / (decrease) in long term advances
Net cash outflow from financing activities
Increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
23 (91,404,464)
(774,055)
(29,424,646)
(30,198,701)
(121,603,165)
314,244,804
15,297,522
-
110,000,000
(138,848,114)
3,994,528
(9,556,064)
183,085,576
144,644,586
327,730,162
(111,213,777)
(12,733,160)
2,955,805
432,799,398
2,436,539
-
(67,752,497)
(1,143,729)
(20,976,655)
(22,120,384)
(89,872,881)
(54,129,446)
(10,611,068)
5,062,824
2,451,257
(633,370,095)
9,298,774
(681,297,754)
7,234,477
(20,515,030)
-
(100,618,979)
(1,399,862)
(115,299,394)
(886,470,029)
983,230,255
96,760,226
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
Un-audited Un-audited
CO
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Systems Limited | Interim Financial Report half year ended 30 June 2016
CONDENSED INTERIM CASH FLOW STATEMENTfor the half year ended 30 June 2016
Note
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
30 June
2016
30 June
2015Amounts in Rupees
www.systemsltd.com12
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations
Finance cost paid
Taxes paid
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment
Development expenditure
Sale proceeds from disposal of property and equipment
Decrease in long term deposits
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Net cash inflow / (outflow) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of share options
Inital Public Offer (IPO) related expenses
Increase in short term borrowings
Dividend paid
Increase / (decrease) in long term advances
Net cash outflow from financing activities
Increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
23 (91,404,464)
(774,055)
(29,424,646)
(30,198,701)
(121,603,165)
314,244,804
15,297,522
-
110,000,000
(138,848,114)
3,994,528
(9,556,064)
183,085,576
144,644,586
327,730,162
(111,213,777)
(12,733,160)
2,955,805
432,799,398
2,436,539
-
(67,752,497)
(1,143,729)
(20,976,655)
(22,120,384)
(89,872,881)
(54,129,446)
(10,611,068)
5,062,824
2,451,257
(633,370,095)
9,298,774
(681,297,754)
7,234,477
(20,515,030)
-
(100,618,979)
(1,399,862)
(115,299,394)
(886,470,029)
983,230,255
96,760,226
The annexed notes 1 to 26 form an integral part of this condensed interim financial information.
Un-audited Un-audited
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Systems Limited | Interim Financial Report half year ended 30 June 2016
1 STATUS AND ACTIVITIES
The Company is a public limited Company incorporated in Pakistan under the Companies Ordinance 1984, and is listed on the Pakistan Stock Exchange (formerly Karachi, Islamabad and Lahore Stock Exchanges). The Company is principally engaged in the business of software development, trading of software and business process outsourcing services. The head office of the Company is situated at Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.
2 BASIS OF PREPARATION
This condensed interim financial information is not audited and has been prepared in condensed form and does not include all the information as is required to be provided in full set of annual financial statements. This condensed interim financial information should be read in conjunction with the audited financial statements of the Company for the year ended 31 December 2015.
2.1 Separate financial information
This condensed interim financial information comprises the financial information of Systems Limited only. Condensed interim consolidated financial information comprising financial information of Systems Limited and its subsidiaries has been prepared and presented separately.
2.2 Statement of compliance
This condensed interim financial information of the Company for the half year ended 30 June 2016 has been prepared in accordance with the requirements of International Accounting Standard (IAS) 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.
2.3 Basis of measurement
The condensed interim financial statements have been prepared under the historical cost convention.
3 ACCOUNTING POLICIES
The accounting policies adopted for the preparation of these condensed interim financial statements are consistent with those applied in the preparation of the preceding annual published financial statements of the company for the year ended 31 December 2015 except as follows:
New / Revised Standards, Interpretations and Amendments
The Company has adopted the following amendment to IFRSs which became effective
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
www.systemsltd.com14
15
for the current period:
IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investment in Associates – Investment Entities: Applying the Consolidation Exception (Amendment)
IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation (Amendment)
IAS 1 – Presentation of Financial Statements - Disclosure Initiative (Amendment)
IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification of Acceptable Method of Depreciation and Amortization (Amendment)
IAS 16 Property, Plant and Equipment IAS 41 Agriculture - Agriculture: Bearer Plants (Amendment)
IAS 27 – Separate Financial Statements – Equity Method in Separate Financial Statements (Amendment)
Improvements to accounting standards issued by IASB
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal
IFRS 7 Financial Instruments: Disclosures - Servicing contracts
IFRS 7 Financial Instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial statements
IAS 19 Employee Benefits - Discount rate: regional market issue
IAS 34 Interim Financial Reporting - Disclosure of information 'elsewhere in the interim financial report’
The adoption of the above amendment to accounting standards did not have any effect on the condensed interim financial information.
` In addition to the above standards and interpretations, improvements to various accounting standards have also been issued by the IASB and are generally effective for current period. The Company expects that such improvements to the standards do not have any impact on the Company's financial statements for the period.
4 USE OF ESTIMATES AND JUDGMENTS
The preparation of condensed interim financial information in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgment, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses.
In preparation of these condensed interim financial statements, the judgments, estimates and assumptions made by the management were the same as those that were applied in the preparation of the preceding annual published financial statements of the company for the year ended 31 December 2015.
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
Systems Limited | Interim Financial Report half year ended 30 June 2016
1 STATUS AND ACTIVITIES
The Company is a public limited Company incorporated in Pakistan under the Companies Ordinance 1984, and is listed on the Pakistan Stock Exchange (formerly Karachi, Islamabad and Lahore Stock Exchanges). The Company is principally engaged in the business of software development, trading of software and business process outsourcing services. The head office of the Company is situated at Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.
2 BASIS OF PREPARATION
This condensed interim financial information is not audited and has been prepared in condensed form and does not include all the information as is required to be provided in full set of annual financial statements. This condensed interim financial information should be read in conjunction with the audited financial statements of the Company for the year ended 31 December 2015.
2.1 Separate financial information
This condensed interim financial information comprises the financial information of Systems Limited only. Condensed interim consolidated financial information comprising financial information of Systems Limited and its subsidiaries has been prepared and presented separately.
2.2 Statement of compliance
This condensed interim financial information of the Company for the half year ended 30 June 2016 has been prepared in accordance with the requirements of International Accounting Standard (IAS) 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.
2.3 Basis of measurement
The condensed interim financial statements have been prepared under the historical cost convention.
3 ACCOUNTING POLICIES
The accounting policies adopted for the preparation of these condensed interim financial statements are consistent with those applied in the preparation of the preceding annual published financial statements of the company for the year ended 31 December 2015 except as follows:
New / Revised Standards, Interpretations and Amendments
The Company has adopted the following amendment to IFRSs which became effective
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
www.systemsltd.com14
15
for the current period:
IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investment in Associates – Investment Entities: Applying the Consolidation Exception (Amendment)
IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation (Amendment)
IAS 1 – Presentation of Financial Statements - Disclosure Initiative (Amendment)
IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification of Acceptable Method of Depreciation and Amortization (Amendment)
IAS 16 Property, Plant and Equipment IAS 41 Agriculture - Agriculture: Bearer Plants (Amendment)
IAS 27 – Separate Financial Statements – Equity Method in Separate Financial Statements (Amendment)
Improvements to accounting standards issued by IASB
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal
IFRS 7 Financial Instruments: Disclosures - Servicing contracts
IFRS 7 Financial Instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial statements
IAS 19 Employee Benefits - Discount rate: regional market issue
IAS 34 Interim Financial Reporting - Disclosure of information 'elsewhere in the interim financial report’
The adoption of the above amendment to accounting standards did not have any effect on the condensed interim financial information.
` In addition to the above standards and interpretations, improvements to various accounting standards have also been issued by the IASB and are generally effective for current period. The Company expects that such improvements to the standards do not have any impact on the Company's financial statements for the period.
4 USE OF ESTIMATES AND JUDGMENTS
The preparation of condensed interim financial information in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgment, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses.
In preparation of these condensed interim financial statements, the judgments, estimates and assumptions made by the management were the same as those that were applied in the preparation of the preceding annual published financial statements of the company for the year ended 31 December 2015.
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
Systems Limited | Interim Financial Report half year ended 30 June 2016
5.1 Detail of additions
Land - Freehold
Computers
Computer equipment and installations
Other equipment and installations
Generator
Furniture and fittings
Office equipment
Vehicles
Project assets
Mobile sets
Capital work in progress
-
8,269,766
2,860,040
1,002,888
-
424,300
3,910,020
16,031,335
903,000
321,282
77,491,146
111,213,777
12,040,000
49,712,459
6,843,614
2,811,327
2,433,460
3,442,671
943,210
19,691,728
3,019,400
1,861,126
127,137,886
229,936,881
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
www.systemsltd.com16
5 PROPERTY AND EQUIPMENT
Opening balance - net book value
Additions
Less:
Disposals - net book value
Depreciation
Closing balance - net book value
359,204,912 202,065,814
5.1 111.213.777 229,936,881
470,418,689 432,002,695
5.2 1,208,270 2,075,752
35,191,550 70,722,031
434,018,869 359,204,912
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
17
31 December 2015
Computers
Vehicles
Project assets
939,985
6,728,562
20,007
7,688,554
939,985
4,652,819
20,007
5,592,804
-
2,075,743
-
2,075,743
Amount in Rupees CostAccumulated
depreciationWritten
down value
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
6
34,101,951
23,281,560
57,383,511
15,135,993
INTANGIBLES
Opening balance - net book value
Additions
Less:
Amortization
Closing balance - net book value 42,247,518
5.2 Detail of disposals
30 June 2016
Computers
Computer equipment and installations
Other equipment and installations
Generators
Furniture and fittings
Office equipment
Vehicles
Project assets
2,617,424
2,775,761
1,319,893
359,500
1,177,894
510,000
6,346,703
40,543
15,147,718
2,617,424
2,761,594
1,213,226
226,267
1,177,894
510,000
5,392,500
40,543
13,939,448
-
14,167
106,667
133,233
-
-
954,203
-
1,208,270
Amount in Rupees CostAccumulated
depreciationWritten
down value
42,247,518
12,733,160
54,980,678
9,318,658
45,662,020
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
5.1 Detail of additions
Land - Freehold
Computers
Computer equipment and installations
Other equipment and installations
Generator
Furniture and fittings
Office equipment
Vehicles
Project assets
Mobile sets
Capital work in progress
-
8,269,766
2,860,040
1,002,888
-
424,300
3,910,020
16,031,335
903,000
321,282
77,491,146
111,213,777
12,040,000
49,712,459
6,843,614
2,811,327
2,433,460
3,442,671
943,210
19,691,728
3,019,400
1,861,126
127,137,886
229,936,881
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
www.systemsltd.com16
5 PROPERTY AND EQUIPMENT
Opening balance - net book value
Additions
Less:
Disposals - net book value
Depreciation
Closing balance - net book value
359,204,912 202,065,814
5.1 111.213.777 229,936,881
470,418,689 432,002,695
5.2 1,208,270 2,075,752
35,191,550 70,722,031
434,018,869 359,204,912
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
17
31 December 2015
Computers
Vehicles
Project assets
939,985
6,728,562
20,007
7,688,554
939,985
4,652,819
20,007
5,592,804
-
2,075,743
-
2,075,743
Amount in Rupees CostAccumulated
depreciationWritten
down value
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
6
34,101,951
23,281,560
57,383,511
15,135,993
INTANGIBLES
Opening balance - net book value
Additions
Less:
Amortization
Closing balance - net book value 42,247,518
5.2 Detail of disposals
30 June 2016
Computers
Computer equipment and installations
Other equipment and installations
Generators
Furniture and fittings
Office equipment
Vehicles
Project assets
2,617,424
2,775,761
1,319,893
359,500
1,177,894
510,000
6,346,703
40,543
15,147,718
2,617,424
2,761,594
1,213,226
226,267
1,177,894
510,000
5,392,500
40,543
13,939,448
-
14,167
106,667
133,233
-
-
954,203
-
1,208,270
Amount in Rupees CostAccumulated
depreciationWritten
down value
42,247,518
12,733,160
54,980,678
9,318,658
45,662,020
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
8.1
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
9 ADVANCES - considered good
Advances to staff:
against salary 3,237,024
against expenses 34,126,706
37,363,730
Suppliers 50,743,775
88,107,505
4,958,554
26,179,629
31,138,183
36,917,427
68,055,610
10 TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Security deposits 54,599,623 41,176,013
Prepayments 53,948,647 6,925,572
108,548,270 48,101,585
www.systemsltd.com18
7 LONG TERM DEPOSITS
This represents long term security deposits against rent agreement and carry no interestrate.
Considered good - unsecured
8 TRADE DEBTS
8.1Export 814,509,381
294,258,730Local 249,778,757
1,108,768,111
Less: Provision for doubtful debts (11,971,419)
1,096,796,692
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
This includes receivable from related parties i.e. Visionet Systems Incorporation and Tech
Vista Systems FZ-LLC amounting to Rs. 576.98 million (2015: Rs 552.76 million) and Rs.354.37
million (2015: Rs 222.79 million) respectively.
Note
10.1
972,584,098
1,222,362,855
(10,501,899)
1,211,860,956
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
19
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
13 CASH AND BANK BALANCES
Cash in hand
Cash at bank:
Local currency:
211,019 89,503
325,722,057 143,805,519 Foreign currency 1,797,086 749,564
13.2 327,519,143
327,730,162
144,555,083
144,644,586
Deposit accounts 13.1 278,103,505
Current accounts 47,618,552 32,823,929
110,981,590
12 SHORT TERM INVESTMENTS
Term deposit receipts 12.1
Investments at fair value
125,000,000
-
125,000,000
525,000,000
32,799,398
557,799,398
12.1 These carry interest at the rate of 5.85% (2015: 6% to 8.75%).
10.1 This represents security bid bonds deposited with customers and carry no interest rate.
11 RECEIVABLE FROM RELATED PARTIES
Visionet Systems Incorporation - USA 16,967,445 11,536,311
E-Processing Systems (Private) Limited 54,181,479
21,605,358
244,059,518 164,572,856
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
Tech Vista Systems FZ LLC - UAE 172,910,594 131,431,187
Note
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
8.1
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
9 ADVANCES - considered good
Advances to staff:
against salary 3,237,024
against expenses 34,126,706
37,363,730
Suppliers 50,743,775
88,107,505
4,958,554
26,179,629
31,138,183
36,917,427
68,055,610
10 TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Security deposits 54,599,623 41,176,013
Prepayments 53,948,647 6,925,572
108,548,270 48,101,585
www.systemsltd.com18
7 LONG TERM DEPOSITS
This represents long term security deposits against rent agreement and carry no interestrate.
Considered good - unsecured
8 TRADE DEBTS
8.1Export 814,509,381
294,258,730Local 249,778,757
1,108,768,111
Less: Provision for doubtful debts (11,971,419)
1,096,796,692
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
This includes receivable from related parties i.e. Visionet Systems Incorporation and Tech
Vista Systems FZ-LLC amounting to Rs. 576.98 million (2015: Rs 552.76 million) and Rs.354.37
million (2015: Rs 222.79 million) respectively.
Note
10.1
972,584,098
1,222,362,855
(10,501,899)
1,211,860,956
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
19
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
13 CASH AND BANK BALANCES
Cash in hand
Cash at bank:
Local currency:
211,019 89,503
325,722,057 143,805,519 Foreign currency 1,797,086 749,564
13.2 327,519,143
327,730,162
144,555,083
144,644,586
Deposit accounts 13.1 278,103,505
Current accounts 47,618,552 32,823,929
110,981,590
12 SHORT TERM INVESTMENTS
Term deposit receipts 12.1
Investments at fair value
125,000,000
-
125,000,000
525,000,000
32,799,398
557,799,398
12.1 These carry interest at the rate of 5.85% (2015: 6% to 8.75%).
10.1 This represents security bid bonds deposited with customers and carry no interest rate.
11 RECEIVABLE FROM RELATED PARTIES
Visionet Systems Incorporation - USA 16,967,445 11,536,311
E-Processing Systems (Private) Limited 54,181,479
21,605,358
244,059,518 164,572,856
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
Tech Vista Systems FZ LLC - UAE 172,910,594 131,431,187
Note
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
14.2.1 Reconciliation of issued, subscribed and paid-up share capital:14.2
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
RupeesNo. of shares
Balance as at 1 January 2016 110,680,876 87,165,302 1,106,808,760 871,653,020
Initial Public Offering (IPO) - 13,000,000 - 130,000,000
Stock options exercised 397,616 453,676 3,976,160 4,536,760
Bonus shares issued - 10,061,898 - 100,618,980
Balance as at 30 June 2016 111,078,492 110,680,876 1,110,784,920 1,106,808,760
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
14.1 Authorized share capital
Ordinary shares of Rs. 10/- each 1,500,000,000 1,500,000,000
14.2 Issued, subscribed and paid-up share capital
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
Ordinary shares of Rs. 10/- each
fully paid in cash
Ordinary shares of Rs. 10/- each
issued as fully paid bonus shares
222,269,270
888,515,650
1,110,784,920
218,293,110
888,515,650
1,106,808,760
22,226,927
88,851,565
111,078,492
21,829,311
88,851,565
110,680,876
RupeesNo. of shares
13.1 These carry interest rate ranging from 4% to 4.5% (2015: 6.5% to 8.5%) per annum.
13.2 Out of these, Rs 116,715,594 (2015: Rs. 99,266,540) are placed with Islamic banks.
www.systemsltd.com20
14 SHARE CAPITAL
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
17 SHORT TERM BORROWINGS
This represents ERF obtained from Silk Bank Limited. The facility has a limit of Rs. 245 million and carries interest rate at SBP rate for ERF + 1% per annum. The financing is secured by way of:
- ranking charge amounting to Rs. 245 million over present and future current assets of the Company.
- lien over Export Entitlement statement duly verified by State Bank of Pakistan - 100% cash collateralized in shape of lien over deposit in customer's profit bearing account /
TDRs
18 CONTINGENCIES AND COMMITMENTS
Contingencies and commitments are same as that on 31 December 2015 except for those stated below:
18.1 Guarantees issued by the financial institutions on behalf of the Company amount to Rs.140.618 (2015: Rs. 129.07) million.
18.2 Commitments include capital commitments for construction of building of the Company amounting to Rs. 344.00 (2015: 344.00) million out of which Rs. 235 million has been paid in advance.
16 TRADE AND OTHER PAYABLES
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
36,902,97220,580,988Creditors
19,484,7249,030,826Advance from customers
124,930,33649,143,633Accrued expenses
17,930,514 8,813,229Income tax deducted at source
11,607,00812,621,898Provident fund payable
7,203,74617,930,514Provision for WWF
16,982,7678,295,991 Sales tax payable
3,691,694 - Unclaimed dividend
237,042,067130,108,773
15 LONG TERM ADVANCES
This represents advances received from staff for sale of vehicles and carry no interest.
21Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
14.2.1 Reconciliation of issued, subscribed and paid-up share capital:14.2
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
RupeesNo. of shares
Balance as at 1 January 2016 110,680,876 87,165,302 1,106,808,760 871,653,020
Initial Public Offering (IPO) - 13,000,000 - 130,000,000
Stock options exercised 397,616 453,676 3,976,160 4,536,760
Bonus shares issued - 10,061,898 - 100,618,980
Balance as at 30 June 2016 111,078,492 110,680,876 1,110,784,920 1,106,808,760
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
14.1 Authorized share capital
Ordinary shares of Rs. 10/- each 1,500,000,000 1,500,000,000
14.2 Issued, subscribed and paid-up share capital
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
Ordinary shares of Rs. 10/- each
fully paid in cash
Ordinary shares of Rs. 10/- each
issued as fully paid bonus shares
222,269,270
888,515,650
1,110,784,920
218,293,110
888,515,650
1,106,808,760
22,226,927
88,851,565
111,078,492
21,829,311
88,851,565
110,680,876
RupeesNo. of shares
13.1 These carry interest rate ranging from 4% to 4.5% (2015: 6.5% to 8.5%) per annum.
13.2 Out of these, Rs 116,715,594 (2015: Rs. 99,266,540) are placed with Islamic banks.
www.systemsltd.com20
14 SHARE CAPITAL
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
17 SHORT TERM BORROWINGS
This represents ERF obtained from Silk Bank Limited. The facility has a limit of Rs. 245 million and carries interest rate at SBP rate for ERF + 1% per annum. The financing is secured by way of:
- ranking charge amounting to Rs. 245 million over present and future current assets of the Company.
- lien over Export Entitlement statement duly verified by State Bank of Pakistan - 100% cash collateralized in shape of lien over deposit in customer's profit bearing account /
TDRs
18 CONTINGENCIES AND COMMITMENTS
Contingencies and commitments are same as that on 31 December 2015 except for those stated below:
18.1 Guarantees issued by the financial institutions on behalf of the Company amount to Rs.140.618 (2015: Rs. 129.07) million.
18.2 Commitments include capital commitments for construction of building of the Company amounting to Rs. 344.00 (2015: 344.00) million out of which Rs. 235 million has been paid in advance.
16 TRADE AND OTHER PAYABLES
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
36,902,97220,580,988Creditors
19,484,7249,030,826Advance from customers
124,930,33649,143,633Accrued expenses
17,930,514 8,813,229Income tax deducted at source
11,607,00812,621,898Provident fund payable
7,203,74617,930,514Provision for WWF
16,982,7678,295,991 Sales tax payable
3,691,694 - Unclaimed dividend
237,042,067130,108,773
15 LONG TERM ADVANCES
This represents advances received from staff for sale of vehicles and carry no interest.
21Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
20 OPERATING SEGMENT INFORMATION
Geographical segments
For management purposes, the Group is organized into business units based on their geographical areas and has three reportable operating segments as follows:
North America
Middle East
Pakistan
No other operating segments have been aggregated to form the above reportable operating segments.
Management monitors the operating results of its operating segments separately for the purpose of performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements.
Transfer prices between operating segments are on arm’s length basis in a manner similar to transactions with third parties.
www.systemsltd.com22
624,352 250,301
19 OTHER INCOME
Profit on deposit accounts on:
19.1
- non derivative
Interest on loan to subsidiary
Discount allowed
1,635,570
800,969
2,436,539
7,905,210
2,035,732
13,001,833
1,747,534
891,310
15,640,677
8,177,847
1,120,928
9,298,775
23,246,342
5,843,920
2,011,027 40,400,064
2,987,081
1,019,525
44,406,670
593,769
293,036
886,805
886,804
3,596,639
5,620,549
44,572
(1,133,305)
4,531,816
5,007,025
816,295
5,823,320
9,416,642
5,041,981
3,100,000
23,381,943
53,000
457,580
23,892,523
Gain on disposal of property and equipment
Islamic bank accounts
Gain on short term investments
Exchange gain on translation of export debts
Income from non-financial assets:
Income from financial assets:
Commercial bank accounts
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015Note
Un-audited Un-audited
Half year ended 30 June
Un-audited
19.1 This represents gain on disposal of short term investment in mutual funds and term deposit receipts.
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
23
Sale
s
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Ju
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2016
2015
Am
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152,1
43,4
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137,9
96,6
18
14,1
46,8
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15,5
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9
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Un
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dH
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nd
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Ju
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2016
2015
821,9
40,5
45
474,9
82,2
40
346,9
58,3
05
1,4
16,5
46
457,1
71
84,9
01,1
96
87,7
74,9
13
260,1
83,3
92
66
5,6
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7
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2
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364,2
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Systems Limited | Interim Financial Report half year ended 30 June 2016
NO
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20 OPERATING SEGMENT INFORMATION
Geographical segments
For management purposes, the Group is organized into business units based on their geographical areas and has three reportable operating segments as follows:
North America
Middle East
Pakistan
No other operating segments have been aggregated to form the above reportable operating segments.
Management monitors the operating results of its operating segments separately for the purpose of performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial statements.
Transfer prices between operating segments are on arm’s length basis in a manner similar to transactions with third parties.
www.systemsltd.com22
624,352 250,301
19 OTHER INCOME
Profit on deposit accounts on:
19.1
- non derivative
Interest on loan to subsidiary
Discount allowed
1,635,570
800,969
2,436,539
7,905,210
2,035,732
13,001,833
1,747,534
891,310
15,640,677
8,177,847
1,120,928
9,298,775
23,246,342
5,843,920
2,011,027 40,400,064
2,987,081
1,019,525
44,406,670
593,769
293,036
886,805
886,804
3,596,639
5,620,549
44,572
(1,133,305)
4,531,816
5,007,025
816,295
5,823,320
9,416,642
5,041,981
3,100,000
23,381,943
53,000
457,580
23,892,523
Gain on disposal of property and equipment
Islamic bank accounts
Gain on short term investments
Exchange gain on translation of export debts
Income from non-financial assets:
Income from financial assets:
Commercial bank accounts
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015Note
Un-audited Un-audited
Half year ended 30 June
Un-audited
19.1 This represents gain on disposal of short term investment in mutual funds and term deposit receipts.
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
23
Sale
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2015
821,9
40,5
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16,5
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84,9
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364,2
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2015
Systems Limited | Interim Financial Report half year ended 30 June 2016
NO
TES
TO T
HE
CO
ND
ENSE
D IN
TERI
M F
INA
NC
IAL
INFO
RMA
TION
NO
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INFO
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for
the
ha
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nd
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30 J
un
e 2
016
21 EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
Profit after taxation for the period
Profit after taxation for the period
252,543,532 221,150,739 135,577,303 111,373,827
252,543,532 221,150,739 135,577,303 111,373,827
Average number of ordinary shares
in issue during the period 111,023,630 108,378,760 111,078,492 108,378,760
Basic - in Rupees 2.27 2.04 1.22 1.03
Average number of ordinary shares
in issue during the period 111,835,130 109,621,145 111,492,376 109,621,145
Diluted - in Rupees 2.26 2.02 1.22 1.02
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015Note
Un-audited Un-audited
Half year ended 30 June
Un-audited
www.systemsltd.com24
12,759,964
14,770,991
Relationship
Subsidiary Payment for expenses
Nature of transactions
Interest income
Related party
E-Processing
Systems (Pvt.) Ltd.
Amounts in Rupees 20152016
Un-audited Un-audited
Half year ended 30 June
22 TRANSACTIONS WITH RELATED PARTIES
Related parties comprises of associated companies, staff retirement fund, directors and key management personnel. Transactions with related parties other than remuneration and benefits to key management personnel under the terms of their employment, are as follows:
53,557,127
624,352
54,181,479
648,531,017
-
648,531,017
Common directorship Sales
Reimbursement of expenses
Visionet Systems
Incorporation - USA
576,984,948
16,967,445
593,952,393
24,832,569 Employee benefit plan ContributionsProvident fund 74,094,584
2,011,027
89,939,043
89,939,043
Subsidiary Sales
Payment for expenses
Tech Vista
Systems FZ - LLC
340,417,420
172,910,594
513,328,014
-
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
25
Advances
Interest accrued
(Decrease)/increase in current liabilities:
Trade and other payables (125,232,359)(106,933,294)
(319,883,201) (380,160,237)
Cash generated from operations (60,406,811) (46,884,201)
(194,650,842)(273,226,943)
(4,115,810)19,022,175
Amounts in Rupees
Half year ended 30 June
23 CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments of items not involving movement of cash:
Effect on cash flow due to working capital changes
(Increase)/decrease in current assets:
Unbilled revenue - net
20152016
Un-audited Un-audited
22,634,199
(6,447,492)
Profit before taxation 229,496,505254,515,945
Depreciation on property and equipment 32,358,31935,191,550
Amortization of intangibles 7,261,927
9,318,658
Provision for bad debts - net -
(1,469,520)
Adjustment to employees' compensation reserve - 4,550,100
Finance cost 1,143,729 774,055
Profit on bank deposits (9,298,774)(2,436,539)
Exchange gain - net (5,843,920) (2,035,732)
Gain on short term investment -(7,905,210)
Gain on disposal of property and equipment (2,987,081)
(1,747,534)
24,239,828
Profit before working capital changes 252,130,704288,755,773
Trade debts (78,056,635)(111,559,013)
(20,704,863)
Receivable from related parties (51,845,402) (79,486,662)
(6,587,712) (60,446,685)
Trade deposits and short term prepayments
(47,597,791)(20,051,895)
24 DATE OF AUTHORIZATION FOR ISSUE
This condensed interim financial information was authorized for issuance on 23 August 2016 by the Board of Directors of the Company.
25 CORRESPONDING FIGURES
Corresponding figures have been re-arranged where necessary for the purpose of comparison, however no significant re-arrangements have been made.
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
21 EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
Profit after taxation for the period
Profit after taxation for the period
252,543,532 221,150,739 135,577,303 111,373,827
252,543,532 221,150,739 135,577,303 111,373,827
Average number of ordinary shares
in issue during the period 111,023,630 108,378,760 111,078,492 108,378,760
Basic - in Rupees 2.27 2.04 1.22 1.03
Average number of ordinary shares
in issue during the period 111,835,130 109,621,145 111,492,376 109,621,145
Diluted - in Rupees 2.26 2.02 1.22 1.02
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015Note
Un-audited Un-audited
Half year ended 30 June
Un-audited
www.systemsltd.com24
12,759,964
14,770,991
Relationship
Subsidiary Payment for expenses
Nature of transactions
Interest income
Related party
E-Processing
Systems (Pvt.) Ltd.
Amounts in Rupees 20152016
Un-audited Un-audited
Half year ended 30 June
22 TRANSACTIONS WITH RELATED PARTIES
Related parties comprises of associated companies, staff retirement fund, directors and key management personnel. Transactions with related parties other than remuneration and benefits to key management personnel under the terms of their employment, are as follows:
53,557,127
624,352
54,181,479
648,531,017
-
648,531,017
Common directorship Sales
Reimbursement of expenses
Visionet Systems
Incorporation - USA
576,984,948
16,967,445
593,952,393
24,832,569 Employee benefit plan ContributionsProvident fund 74,094,584
2,011,027
89,939,043
89,939,043
Subsidiary Sales
Payment for expenses
Tech Vista
Systems FZ - LLC
340,417,420
172,910,594
513,328,014
-
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
25
Advances
Interest accrued
(Decrease)/increase in current liabilities:
Trade and other payables (125,232,359)(106,933,294)
(319,883,201) (380,160,237)
Cash generated from operations (60,406,811) (46,884,201)
(194,650,842)(273,226,943)
(4,115,810)19,022,175
Amounts in Rupees
Half year ended 30 June
23 CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments of items not involving movement of cash:
Effect on cash flow due to working capital changes
(Increase)/decrease in current assets:
Unbilled revenue - net
20152016
Un-audited Un-audited
22,634,199
(6,447,492)
Profit before taxation 229,496,505254,515,945
Depreciation on property and equipment 32,358,31935,191,550
Amortization of intangibles 7,261,927
9,318,658
Provision for bad debts - net -
(1,469,520)
Adjustment to employees' compensation reserve - 4,550,100
Finance cost 1,143,729 774,055
Profit on bank deposits (9,298,774)(2,436,539)
Exchange gain - net (5,843,920) (2,035,732)
Gain on short term investment -(7,905,210)
Gain on disposal of property and equipment (2,987,081)
(1,747,534)
24,239,828
Profit before working capital changes 252,130,704288,755,773
Trade debts (78,056,635)(111,559,013)
(20,704,863)
Receivable from related parties (51,845,402) (79,486,662)
(6,587,712) (60,446,685)
Trade deposits and short term prepayments
(47,597,791)(20,051,895)
24 DATE OF AUTHORIZATION FOR ISSUE
This condensed interim financial information was authorized for issuance on 23 August 2016 by the Board of Directors of the Company.
25 CORRESPONDING FIGURES
Corresponding figures have been re-arranged where necessary for the purpose of comparison, however no significant re-arrangements have been made.
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
www.systemsltd.com26
26 GENERAL
26.1 The figures of condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarters ended 30 June 2016 and 30 June 2015 were not subject to limited scope review by the auditors as scope of review covered only the cumulative figures.
26.2 Figures have been rounded off to the nearest rupee unless otherwise stated.
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
Condensed InterimConsolidated Financial Information
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
www.systemsltd.com26
26 GENERAL
26.1 The figures of condensed interim profit and loss account and condensed interim statement of comprehensive income for the quarters ended 30 June 2016 and 30 June 2015 were not subject to limited scope review by the auditors as scope of review covered only the cumulative figures.
26.2 Figures have been rounded off to the nearest rupee unless otherwise stated.
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONNOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATIONfor the half year ended 30 June 2016
Condensed InterimConsolidated Financial Information
CONDENSED INTERIM CONSOLIDATED BALANCE SHEET
LAHOREAEZAZ HUSSAIN
Chairman
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
www.systemsltd.com28
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.
ASSETS
Non-current assets
Property and equipment
Intangibles
Long term deposits
Deferred taxation
Total non-current assets
Current assets
Unbilled revenue
Trade debts
Advances
Trade deposits and short term prepayments
Interest accrued
Receivable from related parties
Tax refunds due from Government
Short term investments
Cash and bank balances
Total current assets
5
6
7
8
9
10
11
12
13
438,822,411 362,703,298
100,940,306 83,233,400
17,618,451 11,901,100
5,570,581 809,510
562,951,749 458,647,308
420,036,915 369,960,316
998,061,292 961,694,628
116,560,068 72,877,563
139,682,278 114,239,639
1,468,963 5,058,561
16,967,445 11,536,311
77,835,818 55,143,956
125,000,000 557,799,398
409,144,329 193,593,856
2,304,757,108 2,341,904,228
TOTAL ASSETS 2,867,708,857 2,800,551,536
as at 30 June 2016
ASIF PEERChief Executive
29
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
Share capital and reserves
Authorized share capital
150,000,000 (2015: 150,000,000)ordinary shares of Rs. 10 each
1,500,000,000
Issued, subscribed and paid up share capital
Reserves
Unappropriated profit
Total shareholders' equity
Non-controlling interest
Non-current liabilities
Long term advances
Provision for gratuity
Total non-current liabilities
Current liabilities
Trade and other payables
Short term borrowings
Unearned revenue
Total current liabilities
Contingencies and commitments
14 1,110,784,920 1,106,808,760
436,576,841 420,591,135
988,622,596 895,921,042
2,535,984,357 2,423,320,937
(11,779,005) (9,746,736)
2,524,205,352 2,413,574,201
15 16,663,923 12,669,395
1,288,102 1,616,973
17,952,025 14,286,368
16 146,550,571 262,879,897
17 110,000,000 -
69,000,909 109,811,070
325,551,480 372,690,967
18
TOTAL EQUITY AND LIABILITIES 2,867,708,857 2,800,551,536
--
1,500,000,000
EQUITY AND LIABILITIES
Systems Limited | Interim Financial Report half year ended 30 June 2016
CONDENSED INTERIM CONSOLIDATED BALANCE SHEET
LAHOREAEZAZ HUSSAIN
Chairman
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
www.systemsltd.com28
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.
ASSETS
Non-current assets
Property and equipment
Intangibles
Long term deposits
Deferred taxation
Total non-current assets
Current assets
Unbilled revenue
Trade debts
Advances
Trade deposits and short term prepayments
Interest accrued
Receivable from related parties
Tax refunds due from Government
Short term investments
Cash and bank balances
Total current assets
5
6
7
8
9
10
11
12
13
438,822,411 362,703,298
100,940,306 83,233,400
17,618,451 11,901,100
5,570,581 809,510
562,951,749 458,647,308
420,036,915 369,960,316
998,061,292 961,694,628
116,560,068 72,877,563
139,682,278 114,239,639
1,468,963 5,058,561
16,967,445 11,536,311
77,835,818 55,143,956
125,000,000 557,799,398
409,144,329 193,593,856
2,304,757,108 2,341,904,228
TOTAL ASSETS 2,867,708,857 2,800,551,536
as at 30 June 2016
ASIF PEERChief Executive
29
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
Share capital and reserves
Authorized share capital
150,000,000 (2015: 150,000,000)ordinary shares of Rs. 10 each
1,500,000,000
Issued, subscribed and paid up share capital
Reserves
Unappropriated profit
Total shareholders' equity
Non-controlling interest
Non-current liabilities
Long term advances
Provision for gratuity
Total non-current liabilities
Current liabilities
Trade and other payables
Short term borrowings
Unearned revenue
Total current liabilities
Contingencies and commitments
14 1,110,784,920 1,106,808,760
436,576,841 420,591,135
988,622,596 895,921,042
2,535,984,357 2,423,320,937
(11,779,005) (9,746,736)
2,524,205,352 2,413,574,201
15 16,663,923 12,669,395
1,288,102 1,616,973
17,952,025 14,286,368
16 146,550,571 262,879,897
17 110,000,000 -
69,000,909 109,811,070
325,551,480 372,690,967
18
TOTAL EQUITY AND LIABILITIES 2,867,708,857 2,800,551,536
--
1,500,000,000
EQUITY AND LIABILITIES
Systems Limited | Interim Financial Report half year ended 30 June 2016
CONDENSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
www.systemsltd.com30
Revenue 1,562,677,245 1,151,540,456 808,594,080 604,933,337
Cost of sales 1,135,148,566 790,773,785 582,605,405 421,127,866
Gross profit 427,528,679
360,766,671
225,988,675
183,805,471
Distribution cost 60,412,536
55,733,885
19,887,032
35,289,267
Administrative expenses 146,637,883
142,313,668
81,647,474
83,063,977
Research & development expenses 1,781,591
16,864,096
(2,687,920)
7,073,672
208,832,010
214,911,649
98,846,586
125,426,916
Operating profit 218,696,669
145,855,022
127,142,089
58,378,555
Other income 19 14,570,115
71,669,819
3,888,531
51,153,577
233,266,784 217,524,841 131,030,620 109,532,132
Finance cost 1,776,972 3,603,044 894,188 1,642,726
Profit before taxation 231,489,812 213,921,797 130,136,432 107,889,406
Taxation 1,972,413
8,345,766
(27,587)
5,067,425
Profit after taxation 229,517,399
205,576,031
130,164,019
102,821,981
Attributable to:
Equity holders of the parent 231,549,668 208,154,057
131,090,257 104,226,233
Non-controlling interest (2,032,269)
(2,578,026)
(926,238)
(1,404,252)
229,517,399 205,576,031 130,164,019 102,821,981
Earnings per share:
Basic earnings per share 20 2.09 1.92 1.18 0.96
Diluted earnings per share 2.07 1.90 1.18 0.95
NoteAmounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-audited
Half year ended 30 June
Un-audited
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
31
for the half year ended 30 June 2016
Un-auditedUn-audited
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015
Un-audited
Half year ended 30 June
Profit for the period 229,517,399 205,576,031 130,164,019 102,821,981
Other comprehensive income
Exchange differences on translation of foreign operations 114,244
78,996
89,290
-
Total comprehensive income for the period 229,631,643 205,655,027 130,253,309 102,821,981
Attributable to:
Equity holders of the parent 231,663,912
208,233,053
131,179,547
104,226,233
Non-controlling interest (2,032,269)
(2,578,026)
(926,238)
(1,404,252)
229,631,643 205,655,027 130,253,309 102,821,981
Systems Limited | Interim Financial Report half year ended 30 June 2016
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.
CONDENSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
www.systemsltd.com30
Revenue 1,562,677,245 1,151,540,456 808,594,080 604,933,337
Cost of sales 1,135,148,566 790,773,785 582,605,405 421,127,866
Gross profit 427,528,679
360,766,671
225,988,675
183,805,471
Distribution cost 60,412,536
55,733,885
19,887,032
35,289,267
Administrative expenses 146,637,883
142,313,668
81,647,474
83,063,977
Research & development expenses 1,781,591
16,864,096
(2,687,920)
7,073,672
208,832,010
214,911,649
98,846,586
125,426,916
Operating profit 218,696,669
145,855,022
127,142,089
58,378,555
Other income 19 14,570,115
71,669,819
3,888,531
51,153,577
233,266,784 217,524,841 131,030,620 109,532,132
Finance cost 1,776,972 3,603,044 894,188 1,642,726
Profit before taxation 231,489,812 213,921,797 130,136,432 107,889,406
Taxation 1,972,413
8,345,766
(27,587)
5,067,425
Profit after taxation 229,517,399
205,576,031
130,164,019
102,821,981
Attributable to:
Equity holders of the parent 231,549,668 208,154,057
131,090,257 104,226,233
Non-controlling interest (2,032,269)
(2,578,026)
(926,238)
(1,404,252)
229,517,399 205,576,031 130,164,019 102,821,981
Earnings per share:
Basic earnings per share 20 2.09 1.92 1.18 0.96
Diluted earnings per share 2.07 1.90 1.18 0.95
NoteAmounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-audited
Half year ended 30 June
Un-audited
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
31
for the half year ended 30 June 2016
Un-auditedUn-audited
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015
Un-audited
Half year ended 30 June
Profit for the period 229,517,399 205,576,031 130,164,019 102,821,981
Other comprehensive income
Exchange differences on translation of foreign operations 114,244
78,996
89,290
-
Total comprehensive income for the period 229,631,643 205,655,027 130,253,309 102,821,981
Attributable to:
Equity holders of the parent 231,663,912
208,233,053
131,179,547
104,226,233
Non-controlling interest (2,032,269)
(2,578,026)
(926,238)
(1,404,252)
229,631,643 205,655,027 130,253,309 102,821,981
Systems Limited | Interim Financial Report half year ended 30 June 2016
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.
CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
Note
30 June
2016
30 June
2015Amounts in Rupees
Un-audited Un-audited
www.systemsltd.com32
for the half year ended 30 June 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 23 (46,884,201) (60,406,811)
Finance cost paid (1,776,972) (3,603,044)
Gratuity paid (328,871)
(54,877)
Taxes paid (29,425,346) (20,977,355)
(31,531,189) (24,635,276)
Net cash used in operating activities (78,415,390) (85,042,087)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (113,543,471) (55,923,979)
Development expenditure (27,025,564) (15,666,460)
Sale proceeds from disposal of property and equipment 2,955,805 5,062,824
Increase in long term deposits (5,717,351) (4,757,147)
(Purchase) / disposal of short term investments 432,799,398 (633,370,095) Profit received on short term investments 11,494,808 15,965,794 Profit received on bank deposits 2,444,058 9,300,870 Net cash inflow / (outflow) from investing activities 303,407,683 (679,388,193)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of share options 15,297,522 7,234,487
Increase in short term borrowings 110,000,000 Initial Public Offer (IPO) related expenses -
(20,515,030) Dividend paid (138,848,114) (100,618,979) Increase / (decrease) in long term advances 3,994,528
(1,399,862)
Net cash outflow from financing activities (9,556,064) (115,299,384)
Increase / (decrease) in cash and cash equivalents 215,436,229 (879,729,664)
Effect of exchange translation reserve 114,244
78,996
Cash and cash equivalents at the beginning of the period 193,593,856 987,092,798
Cash and cash equivalents at the end of the period 409,144,329 107,442,160
Note
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.C
ON
DEN
SED
INTE
RIM
CO
NSO
LID
ATE
D S
TATE
MEN
T O
F C
HA
NG
ES IN
EQ
UIT
Yfo
r th
e h
alf y
ea
r e
nd
ed
30 J
un
e 2
016
AEZA
Z H
USSA
INC
ha
irm
an
ASIF
PEER
Ch
ief
Exe
cu
tiv
eLA
HO
RE
33
Tota
l U
n-a
pp
rop
ria
ted
pro
fit
To
tal Eq
uity
att
rib
uta
ble
to
sha
reh
old
ers
of
pa
ren
t c
om
pa
ny
Issu
ed
, su
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d p
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are
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of
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en
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No
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Inte
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Re
ve
nu
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rve
Ca
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l re
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es
Am
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in R
up
ee
s
Ba
lan
ce
as
at
31 D
ec
em
be
r 2014 (
Au
dite
d)
871,6
53,0
20
520,0
00,0
00
39,1
19,7
84
4,3
67
2,1
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24,4
58
(5
,099,8
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ch
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e4,5
36,7
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-
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-
7,2
34,4
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7,2
34,4
77
-
Issu
e o
f sh
are
ca
pita
l130,0
00,0
00
(5
20,0
00,0
00)
390,0
00,0
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-
-
-
-
Issu
an
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of
bo
nu
s sh
are
s100,6
18,9
80
-
-
-
-
-
-
Ca
sh d
ivid
en
d-
-
-
-
(1
00,6
18,9
79)
-
(1
00,6
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79)
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dju
ste
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ga
inst
sh
are
pre
miu
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un
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(2
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15,0
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-
(2
0,5
15,0
30)
-
(2
0,5
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Tota
l co
mp
reh
en
sive
inc
om
e f
or
the
pe
rio
d (
Un
-au
dite
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-
-
-
-
208,2
33,0
53
(2
,578,0
26)
205,6
55,0
27
Ba
lan
ce
as
at
30 J
un
e 2
015 (
Un
-au
dite
d)
1,1
06,8
08,7
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-
411,3
02,4
71
4,3
67
2,2
12,4
57,9
89
(7
,677,9
12)
2,2
04,7
80,0
77
Ba
lan
ce
as
at
31 D
ec
em
be
r 2015 (
Au
dite
d)
1,1
06,8
08,7
60
-
411,3
02,5
86
9,2
55,4
67
2,4
23,3
20,9
37
(9
,746,7
36)
2,4
13,5
74,2
01
Sha
res
issu
ed
un
de
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plo
ye
es'
Sh
are
Op
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ch
em
e3,9
76,1
60
-
11,3
21,3
62
-
15,2
97,5
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-
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97,5
22
Ad
just
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mp
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50,1
00
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4,5
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Ca
sh d
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d-
-
-
-
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38,8
48,1
14)
-
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38,8
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14)
Tota
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the
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-
-
-
-
231,6
63,9
12
(2
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229,6
31,6
43
-B
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0 J
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6 (
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42
2,6
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81
3,8
05
,56
72
,53
5,9
84
,35
7(1
1,7
79
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5)
2,5
24
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5,3
52
83,9
43
- - - - -
78,9
96
162,9
39
33,0
82
- - -
114,2
44
14
7,3
26
687,2
63,3
44
-
-
(100,6
18,9
80)
(100,6
18,9
79)
-
208,1
54,0
57
694,1
79,4
52
895,9
21,0
42
-
-
(138,8
48,1
14)
231,5
49,6
68
98
8,6
22
,59
6
Systems Limited | Interim Financial Report half year ended 30 June 2016
The
anne
xed
no
tes
1 to
26 fo
rm a
n in
teg
ral p
art
of th
is c
ond
ense
d in
terim
co
nso
lida
ted
fina
nc
ial info
rma
tion.
CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
Note
30 June
2016
30 June
2015Amounts in Rupees
Un-audited Un-audited
www.systemsltd.com32
for the half year ended 30 June 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 23 (46,884,201) (60,406,811)
Finance cost paid (1,776,972) (3,603,044)
Gratuity paid (328,871)
(54,877)
Taxes paid (29,425,346) (20,977,355)
(31,531,189) (24,635,276)
Net cash used in operating activities (78,415,390) (85,042,087)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (113,543,471) (55,923,979)
Development expenditure (27,025,564) (15,666,460)
Sale proceeds from disposal of property and equipment 2,955,805 5,062,824
Increase in long term deposits (5,717,351) (4,757,147)
(Purchase) / disposal of short term investments 432,799,398 (633,370,095) Profit received on short term investments 11,494,808 15,965,794 Profit received on bank deposits 2,444,058 9,300,870 Net cash inflow / (outflow) from investing activities 303,407,683 (679,388,193)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of share options 15,297,522 7,234,487
Increase in short term borrowings 110,000,000 Initial Public Offer (IPO) related expenses -
(20,515,030) Dividend paid (138,848,114) (100,618,979) Increase / (decrease) in long term advances 3,994,528
(1,399,862)
Net cash outflow from financing activities (9,556,064) (115,299,384)
Increase / (decrease) in cash and cash equivalents 215,436,229 (879,729,664)
Effect of exchange translation reserve 114,244
78,996
Cash and cash equivalents at the beginning of the period 193,593,856 987,092,798
Cash and cash equivalents at the end of the period 409,144,329 107,442,160
Note
The annexed notes 1 to 26 form an integral part of this condensed interim consolidated financial information.
CO
ND
ENSE
D IN
TERI
M C
ON
SOLI
DA
TED
STA
TEM
ENT
OF
CH
AN
GES
IN E
QU
ITY
for
the
ha
lf y
ea
r e
nd
ed
30 J
un
e 2
016
AEZA
Z H
USSA
INC
ha
irm
an
ASIF
PEER
Ch
ief
Exe
cu
tiv
eLA
HO
RE
33
Tota
l U
n-a
pp
rop
ria
ted
pro
fit
To
tal Eq
uity
att
rib
uta
ble
to
sha
reh
old
ers
of
pa
ren
t c
om
pa
ny
Issu
ed
, su
bsc
rib
ed
an
d p
aid
-up
sh
are
ca
pita
l
Ad
va
nc
e
ag
ain
st iss
ue
of
sha
res
Sh
are
ca
pita
l
pre
miu
m
Em
plo
ye
e
co
mp
en
satio
n
rese
rve
Fo
reig
n
cu
rre
nc
y
tra
nsl
atio
n
rese
rve
No
n-c
on
tro
llin
g
Inte
rest
Re
ve
nu
e r
ese
rve
Ca
pita
l re
serv
es
Am
ou
nt
in R
up
ee
s
Ba
lan
ce
as
at
31 D
ec
em
be
r 2014 (
Au
dite
d)
871,6
53,0
20
520,0
00,0
00
39,1
19,7
84
4,3
67
2,1
18,1
24,4
58
(5
,099,8
86)
2,1
13,0
24,5
72
Sha
res
issu
ed
un
de
r Em
plo
ye
es'
Sh
are
Op
tio
n S
ch
em
e4,5
36,7
60
-
2,6
97,7
17
-
7,2
34,4
77
7,2
34,4
77
-
Issu
e o
f sh
are
ca
pita
l130,0
00,0
00
(5
20,0
00,0
00)
390,0
00,0
00
-
-
-
-
Issu
an
ce
of
bo
nu
s sh
are
s100,6
18,9
80
-
-
-
-
-
-
Ca
sh d
ivid
en
d-
-
-
-
(1
00,6
18,9
79)
-
(1
00,6
18,9
79)
IPO
co
st a
dju
ste
d a
ga
inst
sh
are
pre
miu
m a
mo
un
t-
-
(2
0,5
15,0
30)
-
(2
0,5
15,0
30)
-
(2
0,5
15,0
30)
Tota
l co
mp
reh
en
sive
inc
om
e f
or
the
pe
rio
d (
Un
-au
dite
d)
-
-
-
-
208,2
33,0
53
(2
,578,0
26)
205,6
55,0
27
Ba
lan
ce
as
at
30 J
un
e 2
015 (
Un
-au
dite
d)
1,1
06,8
08,7
60
-
411,3
02,4
71
4,3
67
2,2
12,4
57,9
89
(7
,677,9
12)
2,2
04,7
80,0
77
Ba
lan
ce
as
at
31 D
ec
em
be
r 2015 (
Au
dite
d)
1,1
06,8
08,7
60
-
411,3
02,5
86
9,2
55,4
67
2,4
23,3
20,9
37
(9
,746,7
36)
2,4
13,5
74,2
01
Sha
res
issu
ed
un
de
r Em
plo
ye
es'
Sh
are
Op
tio
n S
ch
em
e3,9
76,1
60
-
11,3
21,3
62
-
15,2
97,5
22
-
15,2
97,5
22
Ad
just
me
nt
to e
mp
loye
e c
om
pe
nsa
tio
n r
ese
rve
-
-
-
4,5
50,1
00
4,5
50,1
00
-
4,5
50,1
00
Ca
sh d
ivid
en
d-
-
-
-
(1
38,8
48,1
14)
-
(1
38,8
48,1
14)
Tota
l co
mp
reh
en
sive
inc
om
e f
or
the
pe
rio
d (
Un
-au
dite
d)
-
-
-
-
231,6
63,9
12
(2
,032,2
69)
229,6
31,6
43
-B
ala
nc
e a
s a
t 3
0 J
un
e 2
01
6 (
Un
-au
dite
d)
1,1
10
,78
4,9
20
42
2,6
23
,94
81
3,8
05
,56
72
,53
5,9
84
,35
7(1
1,7
79
,00
5)
2,5
24
,20
5,3
52
83,9
43
- - - - -
78,9
96
162,9
39
33,0
82
- - -
114,2
44
14
7,3
26
687,2
63,3
44
-
-
(100,6
18,9
80)
(100,6
18,9
79)
-
208,1
54,0
57
694,1
79,4
52
895,9
21,0
42
-
-
(138,8
48,1
14)
231,5
49,6
68
98
8,6
22
,59
6
Systems Limited | Interim Financial Report half year ended 30 June 2016
The
anne
xed
no
tes
1 to
26 fo
rm a
n in
teg
ral p
art
of th
is c
ond
ense
d in
terim
co
nso
lida
ted
fina
nc
ial info
rma
tion.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
1 THE GROUP AND ITS OPERATIONS
Holding company
Systems Limited (the Company) is a public limited company incorporated in Pakistan under the Companies Ordinance 1984, and is listed on the Pakistan Stock Exchange (formerly Karachi, Islamabad and Lahore Stock Exchanges). The Company is principally engaged in the business of software development, trading of software and business process outsourcing services. The head office of the Company is situated at Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.
Subsidiary companies
TechVista Systems FZ - LLC, a limited liability company incorporated in Dubai Technology and Media Free Zone Authority, is a 100% owned subsidiary of Systems Limited. The Company is principally engaged in software development and providing business process outsourcing solutions.
E-Processing Systems (Private) Limited, a private limited company registered under Companies Ordinance, 1984 incorporated on 06 February 2013, is a 70% owned subsidiary of Systems Limited. The Company is principally engaged in the business of purchase and sale of airtime and software development including the development of systems and infrastructure.
2 BASIS OF PREPARATION
This condensed interim consolidated financial information is not audited and has been prepared in condensed form and does not include all the information as is required to be provided in full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the Group for the year ended 31 December 2015.
2.1 Consolidated financial statements
This condensed interim consolidated financial information comprises the financial information of Systems Limited and its subsidiaries, here-in-after referred to as "the Group".
2.2 Statement of compliance
This condensed interim consolidated financial information of the Group for the half year ended 30 June 2016 has been prepared in accordance with the requirements of International Accounting Standard (IAS) 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.
www.systemsltd.com34
2.3 Basis of measurement
This condensed interim consolidated financial information has been prepared under the historical cost convention.
3 ACCOUNTING POLICIES
The accounting policies adopted for the preparation of this condensed interim consolidated financial information are consistent with those applied in the preparation of the preceding annual published financial statements of the Group for the year ended 31 December 2015 except as follows:
New / Revised Standards, Interpretations and Amendments
The Company has adopted the following amendment to IFRSs which became effective for the current period:
IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investment in Associates – Investment Entities: Applying the Consolidation Exception (Amendment)
IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation (Amendment)
IAS 1 – Presentation of Financial Statements - Disclosure Initiative (Amendment)
IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification of Acceptable Method of Depreciation and Amortization (Amendment)
IAS 16 Property, Plant and Equipment IAS 41 Agriculture - Agriculture: Bearer Plants (Amendment)
IAS 27 – Separate Financial Statements – Equity Method in Separate Financial Statements (Amendment)
Improvements to accounting standards issued by IASB
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal
IFRS 7 Financial Instruments: Disclosures - Servicing contracts
IFRS 7 Financial Instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial statements
IAS 19 Employee Benefits - Discount rate: regional market issue
IAS 34 Interim Financial Reporting - Disclosure of information 'elsewhere in the interim financial report’
The adoption of the above amendment to accounting standards did not have any effect on the condensed interim consolidated financial information.
35
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
1 THE GROUP AND ITS OPERATIONS
Holding company
Systems Limited (the Company) is a public limited company incorporated in Pakistan under the Companies Ordinance 1984, and is listed on the Pakistan Stock Exchange (formerly Karachi, Islamabad and Lahore Stock Exchanges). The Company is principally engaged in the business of software development, trading of software and business process outsourcing services. The head office of the Company is situated at Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.
Subsidiary companies
TechVista Systems FZ - LLC, a limited liability company incorporated in Dubai Technology and Media Free Zone Authority, is a 100% owned subsidiary of Systems Limited. The Company is principally engaged in software development and providing business process outsourcing solutions.
E-Processing Systems (Private) Limited, a private limited company registered under Companies Ordinance, 1984 incorporated on 06 February 2013, is a 70% owned subsidiary of Systems Limited. The Company is principally engaged in the business of purchase and sale of airtime and software development including the development of systems and infrastructure.
2 BASIS OF PREPARATION
This condensed interim consolidated financial information is not audited and has been prepared in condensed form and does not include all the information as is required to be provided in full set of annual financial statements. This condensed interim consolidated financial information should be read in conjunction with the audited financial statements of the Group for the year ended 31 December 2015.
2.1 Consolidated financial statements
This condensed interim consolidated financial information comprises the financial information of Systems Limited and its subsidiaries, here-in-after referred to as "the Group".
2.2 Statement of compliance
This condensed interim consolidated financial information of the Group for the half year ended 30 June 2016 has been prepared in accordance with the requirements of International Accounting Standard (IAS) 34 - Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.
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2.3 Basis of measurement
This condensed interim consolidated financial information has been prepared under the historical cost convention.
3 ACCOUNTING POLICIES
The accounting policies adopted for the preparation of this condensed interim consolidated financial information are consistent with those applied in the preparation of the preceding annual published financial statements of the Group for the year ended 31 December 2015 except as follows:
New / Revised Standards, Interpretations and Amendments
The Company has adopted the following amendment to IFRSs which became effective for the current period:
IFRS 10 Consolidated Financial Statements, IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investment in Associates – Investment Entities: Applying the Consolidation Exception (Amendment)
IFRS 11 Joint Arrangements - Accounting for Acquisition of Interest in Joint Operation (Amendment)
IAS 1 – Presentation of Financial Statements - Disclosure Initiative (Amendment)
IAS 16 Property, Plant and Equipment and IAS 38 intangible assets - Clarification of Acceptable Method of Depreciation and Amortization (Amendment)
IAS 16 Property, Plant and Equipment IAS 41 Agriculture - Agriculture: Bearer Plants (Amendment)
IAS 27 – Separate Financial Statements – Equity Method in Separate Financial Statements (Amendment)
Improvements to accounting standards issued by IASB
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations - Changes in methods of disposal
IFRS 7 Financial Instruments: Disclosures - Servicing contracts
IFRS 7 Financial Instruments: Disclosures - Applicability of the offsetting disclosures to condensed interim financial statements
IAS 19 Employee Benefits - Discount rate: regional market issue
IAS 34 Interim Financial Reporting - Disclosure of information 'elsewhere in the interim financial report’
The adoption of the above amendment to accounting standards did not have any effect on the condensed interim consolidated financial information.
35
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
Systems Limited | Interim Financial Report half year ended 30 June 2016
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In addition to the above standards and interpretations, improvements to various accounting standards have also been issued by the IASB and are generally effective for current period. The Company expects that such improvements to the standards do not have any impact on the Company's financial statements for the period.
4 USE OF ESTIMATES AND JUDGMENTS
The preparation of condensed interim consolidated financial information in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses.
In preparation of these condensed interim consolidated financial information, the judgments, estimates and assumptions made by the management were the same as those that were applied in the preparation of the preceding annual published financial statements of the Group for the year ended 31 December 2015.
5 PROPERTY AND EQUIPMENT
Opening balance - net book value
Additions
Less:
Disposals - net book value
Depreciation
Closing balance - net book value
362,703,298 203,407,660
5.1 113,543,471 233,187,031
476,246,769 436,594,691
5.2 1,208,271 2,134,552
36,216,087 71,756,841
438,822,411 362,703,298
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
37
5.2 Detail of disposals
30 June 2016
Computers
Computer equipment and installations
Other equipment and installations
Generators
Furniture and fittings
Office equipment
Vehicles
Project assets
2,617,424
2,775,761
1,319,893
359,500
1,177,894
510,000
6,346,703
40,543
15,147,718
2,617,423
2,761,594
1,213,226
226,267
1,177,894
510,000
5,392,500
40,543
13,939,447
1
14,167
106,667
133,233
-
-
954,203
-
1,208,271
Amount in Rupees
5.1 Detail of additions
Land - Freehold
Computers
Computer equipment and installations
Other equipment and installations
Generator
Furniture and fittings
Office equipment
Vehicles
Project assets
Mobile sets
Capital work in progress
-
8,553,991
2,860,040
1,002,888
-
424,300
4,136,937
17,849,887
903,000
321,282
77,491,146
113,543,471
12,040,000
52,809,354
6,843,614
2,811,327
2,433,460
3,568,111
943,210
19,691,728
3,019,400
1,861,126
127,165,701
233,187,031
5 PROPERTY AND EQUIPMENT
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
CostAccumulated
depreciationWritten
down value
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
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In addition to the above standards and interpretations, improvements to various accounting standards have also been issued by the IASB and are generally effective for current period. The Company expects that such improvements to the standards do not have any impact on the Company's financial statements for the period.
4 USE OF ESTIMATES AND JUDGMENTS
The preparation of condensed interim consolidated financial information in conformity with approved accounting standards, as applicable in Pakistan, requires the management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses.
In preparation of these condensed interim consolidated financial information, the judgments, estimates and assumptions made by the management were the same as those that were applied in the preparation of the preceding annual published financial statements of the Group for the year ended 31 December 2015.
5 PROPERTY AND EQUIPMENT
Opening balance - net book value
Additions
Less:
Disposals - net book value
Depreciation
Closing balance - net book value
362,703,298 203,407,660
5.1 113,543,471 233,187,031
476,246,769 436,594,691
5.2 1,208,271 2,134,552
36,216,087 71,756,841
438,822,411 362,703,298
Un-audited Audited
30 June 31 December
2016 2015NoteAmounts in Rupees
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
37
5.2 Detail of disposals
30 June 2016
Computers
Computer equipment and installations
Other equipment and installations
Generators
Furniture and fittings
Office equipment
Vehicles
Project assets
2,617,424
2,775,761
1,319,893
359,500
1,177,894
510,000
6,346,703
40,543
15,147,718
2,617,423
2,761,594
1,213,226
226,267
1,177,894
510,000
5,392,500
40,543
13,939,447
1
14,167
106,667
133,233
-
-
954,203
-
1,208,271
Amount in Rupees
5.1 Detail of additions
Land - Freehold
Computers
Computer equipment and installations
Other equipment and installations
Generator
Furniture and fittings
Office equipment
Vehicles
Project assets
Mobile sets
Capital work in progress
-
8,553,991
2,860,040
1,002,888
-
424,300
4,136,937
17,849,887
903,000
321,282
77,491,146
113,543,471
12,040,000
52,809,354
6,843,614
2,811,327
2,433,460
3,568,111
943,210
19,691,728
3,019,400
1,861,126
127,165,701
233,187,031
5 PROPERTY AND EQUIPMENT
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
CostAccumulated
depreciationWritten
down value
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
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7 LONG TERM DEPOSITS
This represents long term security deposits against rent agreements and carry no interestrate.
31 December 2015
Computers
Vehicles
Project assets
1,015,585
6,728,562
20,007
7,764,154
956,776
4,652,819
20,007
5,629,602
58,809
2,075,743
-
2,134,552
Amount in Rupees
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
6
54,210,428
44,158,965
98,369,393
15,135,993
INTANGIBLES
Opening balance - net book value
Additions
Less:
Amortization
Closing balance - net book value
83,233,400
27,025,564
110,258,964
9,318,658
100,940,306 83,233,400
Considered good - unsecured
8.1
8 TRADE DEBTS
Export
Local
Less: Provision for doubtful debts
618,209,042
390,354,149
1,008,563,191
(10,501,899)
998,061,292
677,611,263
296,054,784
973,666,047
(11,971,419)
961,694,628
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
CostAccumulated
depreciationWritten
down value
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
39
8.1 This includes receivable against sales of services from Visionet Systems Incorporation - USA
amounting to Rs. 576.98 million (2015: Rs 552.76 million).
Note
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
9 ADVANCES - considered good
Advances to staff:
against salary 10,863,135
against expenses 36,297,822
47,160,957
Suppliers 69,399,111
116,560,068
9,780,507
26,179,629
35,960,136
36,917,427
72,877,563
10 TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Security deposits 59,694,828 43,012,627
Prepayments 79,987,450 71,227,012
139,682,278 114,239,639
11 RECEIVABLE FROM RELATED PARTIES
Visionet Systems Incorporation - USA 16,967,445 11,536,311
12 SHORT TERM INVESTMENTS
Term deposit receipts 12.1
Investments at fair value
125,000,000
-
125,000,000
525,000,000
32,799,398
557,799,398
12.1 These carry interest at the rate of 5.85% (2015: 6% to 8.75%).
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
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7 LONG TERM DEPOSITS
This represents long term security deposits against rent agreements and carry no interestrate.
31 December 2015
Computers
Vehicles
Project assets
1,015,585
6,728,562
20,007
7,764,154
956,776
4,652,819
20,007
5,629,602
58,809
2,075,743
-
2,134,552
Amount in Rupees
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
6
54,210,428
44,158,965
98,369,393
15,135,993
INTANGIBLES
Opening balance - net book value
Additions
Less:
Amortization
Closing balance - net book value
83,233,400
27,025,564
110,258,964
9,318,658
100,940,306 83,233,400
Considered good - unsecured
8.1
8 TRADE DEBTS
Export
Local
Less: Provision for doubtful debts
618,209,042
390,354,149
1,008,563,191
(10,501,899)
998,061,292
677,611,263
296,054,784
973,666,047
(11,971,419)
961,694,628
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
CostAccumulated
depreciationWritten
down value
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
39
8.1 This includes receivable against sales of services from Visionet Systems Incorporation - USA
amounting to Rs. 576.98 million (2015: Rs 552.76 million).
Note
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees
9 ADVANCES - considered good
Advances to staff:
against salary 10,863,135
against expenses 36,297,822
47,160,957
Suppliers 69,399,111
116,560,068
9,780,507
26,179,629
35,960,136
36,917,427
72,877,563
10 TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Security deposits 59,694,828 43,012,627
Prepayments 79,987,450 71,227,012
139,682,278 114,239,639
11 RECEIVABLE FROM RELATED PARTIES
Visionet Systems Incorporation - USA 16,967,445 11,536,311
12 SHORT TERM INVESTMENTS
Term deposit receipts 12.1
Investments at fair value
125,000,000
-
125,000,000
525,000,000
32,799,398
557,799,398
12.1 These carry interest at the rate of 5.85% (2015: 6% to 8.75%).
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
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13.1 These carry interest rate ranging from 4% to 4.5% (2015: 6.5% to 8.5%) per annum.
13.2 Out of these, Rs 116,715,594 (2015: Rs. 99,266,540) are placed with Islamic banks.
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
13 CASH AND BANK BALANCES
Cash in hand
Cash at bank:
Local currency:
214,318 92,408
407,132,925 192,751,884 Foreign currency 1,797,086 749,564
13.2 408,930,011
409,144,329
193,501,448
193,593,856
Deposit accounts 13.1 331,211,411
Current accounts 75,921,514 42,604,487
150,147,397
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
14.1 Authorized share capital
Ordinary shares of Rs. 10/- each 1,500,000,000 1,500,000,000
14.2 Issued, subscribed and paid-up share capital
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
Ordinary shares of Rs. 10/- each
fully paid in cash
Ordinary shares of Rs. 10/- each
issued as fully paid bonus shares
222,269,270
888,515,650
1,110,784,920
218,293,110
888,515,650
1,106,808,760
22,226,927
88,851,565
111,078,492
21,829,311
88,851,565
110,680,876
RupeesNo. of shares
14 SHARE CAPITAL
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
41
16 TRADE AND OTHER PAYABLES
15 LONG TERM ADVANCES
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
14.2.1 Reconciliation of issued, subscribed and paid-up share capital:14.2
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
RupeesNo. of shares
Balance as at 1 January 2016 110,680,876 87,165,302 1,106,808,760 871,653,020
Initial Public Offering (IPO) - 13,000,000 - 130,000,000
Stock options exercised 397,616 453,676 3,976,160 4,536,760
Bonus shares issued - 10,061,898 - 100,618,980
Balance as at 30 June 2016 111,078,492 110,680,876 1,110,784,920 1,106,808,760
This represents advances received from staff for sale of vehicles and carry no interest.
40,230,37427,421,934Creditors
19,484,7249,030,826Advance from customers
149,315,58558,610,392Accrued expenses
7,328,925 8,947,322Income tax deducted at source
11,607,00812,621,898Provident fund payable
17,930,51417,930,514Provision for WWF
16,982,7678,295,991 Sales tax payable
3,691,694 - Unclaimed dividend
262,879,897146,550,571
17 SHORT TERM BORROWINGS
This represents ERF obtained from Silk Bank Limited. The facility has a limit of Rs. 245 million and carries interest rate at SBP rate for ERF + 1% per annum. The financing is secured by way of:
- ranking charge amounting to Rs. 245 million over present and future current assets of the Company.
- lien over Export Entitlement statement duly verified by State Bank of Pakistan - 100% cash collateralized in shape of lien over deposit in customer's profit bearing account /
TDRs
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
www.systemsltd.com40
13.1 These carry interest rate ranging from 4% to 4.5% (2015: 6.5% to 8.5%) per annum.
13.2 Out of these, Rs 116,715,594 (2015: Rs. 99,266,540) are placed with Islamic banks.
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
13 CASH AND BANK BALANCES
Cash in hand
Cash at bank:
Local currency:
214,318 92,408
407,132,925 192,751,884 Foreign currency 1,797,086 749,564
13.2 408,930,011
409,144,329
193,501,448
193,593,856
Deposit accounts 13.1 331,211,411
Current accounts 75,921,514 42,604,487
150,147,397
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
14.1 Authorized share capital
Ordinary shares of Rs. 10/- each 1,500,000,000 1,500,000,000
14.2 Issued, subscribed and paid-up share capital
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
Ordinary shares of Rs. 10/- each
fully paid in cash
Ordinary shares of Rs. 10/- each
issued as fully paid bonus shares
222,269,270
888,515,650
1,110,784,920
218,293,110
888,515,650
1,106,808,760
22,226,927
88,851,565
111,078,492
21,829,311
88,851,565
110,680,876
RupeesNo. of shares
14 SHARE CAPITAL
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
41
16 TRADE AND OTHER PAYABLES
15 LONG TERM ADVANCES
Un-audited Audited
30 June 31 December
2016 2015Amounts in Rupees Note
14.2.1 Reconciliation of issued, subscribed and paid-up share capital:14.2
Un-audited
30 June
2016
Audited
31 December
2015
Un-audited
30 June
2016
Audited
31 December
2015
RupeesNo. of shares
Balance as at 1 January 2016 110,680,876 87,165,302 1,106,808,760 871,653,020
Initial Public Offering (IPO) - 13,000,000 - 130,000,000
Stock options exercised 397,616 453,676 3,976,160 4,536,760
Bonus shares issued - 10,061,898 - 100,618,980
Balance as at 30 June 2016 111,078,492 110,680,876 1,110,784,920 1,106,808,760
This represents advances received from staff for sale of vehicles and carry no interest.
40,230,37427,421,934Creditors
19,484,7249,030,826Advance from customers
149,315,58558,610,392Accrued expenses
7,328,925 8,947,322Income tax deducted at source
11,607,00812,621,898Provident fund payable
17,930,51417,930,514Provision for WWF
16,982,7678,295,991 Sales tax payable
3,691,694 - Unclaimed dividend
262,879,897146,550,571
17 SHORT TERM BORROWINGS
This represents ERF obtained from Silk Bank Limited. The facility has a limit of Rs. 245 million and carries interest rate at SBP rate for ERF + 1% per annum. The financing is secured by way of:
- ranking charge amounting to Rs. 245 million over present and future current assets of the Company.
- lien over Export Entitlement statement duly verified by State Bank of Pakistan - 100% cash collateralized in shape of lien over deposit in customer's profit bearing account /
TDRs
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
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19 OTHER INCOME
Profit on deposit accounts on:
19.1
- non derivative
Group services
Discount allowed
1,635,570
808,488
2,444,058
7,905,210
1,582,003
-
11,931,271
1,747,534
891,310
14,570,115
8,177,847
1,123,023
9,300,870
23,246,342
6,031,272
29,084,729 67,663,213
2,987,081
1,019,525
71,669,819
593,769
293,035
886,804
886,804
3,203,656
-
4,977,264
44,572
(1,133,305)
3,888,531
5,007,025
816,295
5,823,320
9,416,642
5,137,284
30,265,751
50,642,997
53,000
457,580
51,153,577
Gain on disposal of property and equipment
Islamic bank accounts
Gain on short term investments
Exchange gain on translation of export debts
Income from non-financial assets:
Income from financial assets:
Commercial bank accounts
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015Note
Un-audited Un-audited
Half year ended 30 June
Un-audited
19.1 This represents gain on disposal of short term investment in mutual funds and term deposit receipts.
18 CONTINGENCIES AND COMMITMENTS
Contingencies and commitments are same as that on 31 December 2015 except for those stated below:
18.1 Guarantees issued by the financial institutions on behalf of the Group amount to Rs.140.618 (2015: Rs. 129.07) million.
18.2 Commitments include capital commitments for construction of building of the Group amounting to Rs. 344.00 (2015: 344.00) million out of which Rs. 235 million has been paid in advance.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
43
648,531,017
-
648,531,017
Relationship
Common directorship Sales
Nature of transactions
Reimbursement of expenses
Related party
Visionet Systems
Incorporation - USA
Amounts in Rupees 20152016
Un-audited Un-audited
Half year ended 30 June
21 TRANSACTIONS WITH RELATED PARTIES
Related parties comprises of associated companies, staff retirement fund, directors and key management personnel. Transactions with related parties other than remuneration and benefits to key management personnel under the terms of their employment, are as follows:
576,984,948
16,967,445
593,952,393
24,832,569 Employee benefit plan ContributionsProvident fund 74,094,584
20 EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
Profit for the period attributable to equity
holders of the Parent 231,549,668 208,154,057 131,090,257 104,226,233
Average number of ordinary shares
in issue during the period 111,023,630 108,378,760 111,078,492 108,378,760
Basic - in Rupees 2.09 1.92 1.18 0.96
Profit for the period attributable to equity
holders of the Parent 231,549,668 208,154,057 131,090,257 104,226,233
Average number of ordinary shares
in issue during the period 111,835,130 109,621,145 111,492,376 109,621,145
Diluted - in Rupees 2.07 1.90 1.18 0.95
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-audited
Half year ended 30 June
Un-audited
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
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19 OTHER INCOME
Profit on deposit accounts on:
19.1
- non derivative
Group services
Discount allowed
1,635,570
808,488
2,444,058
7,905,210
1,582,003
-
11,931,271
1,747,534
891,310
14,570,115
8,177,847
1,123,023
9,300,870
23,246,342
6,031,272
29,084,729 67,663,213
2,987,081
1,019,525
71,669,819
593,769
293,035
886,804
886,804
3,203,656
-
4,977,264
44,572
(1,133,305)
3,888,531
5,007,025
816,295
5,823,320
9,416,642
5,137,284
30,265,751
50,642,997
53,000
457,580
51,153,577
Gain on disposal of property and equipment
Islamic bank accounts
Gain on short term investments
Exchange gain on translation of export debts
Income from non-financial assets:
Income from financial assets:
Commercial bank accounts
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015Note
Un-audited Un-audited
Half year ended 30 June
Un-audited
19.1 This represents gain on disposal of short term investment in mutual funds and term deposit receipts.
18 CONTINGENCIES AND COMMITMENTS
Contingencies and commitments are same as that on 31 December 2015 except for those stated below:
18.1 Guarantees issued by the financial institutions on behalf of the Group amount to Rs.140.618 (2015: Rs. 129.07) million.
18.2 Commitments include capital commitments for construction of building of the Group amounting to Rs. 344.00 (2015: 344.00) million out of which Rs. 235 million has been paid in advance.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
43
648,531,017
-
648,531,017
Relationship
Common directorship Sales
Nature of transactions
Reimbursement of expenses
Related party
Visionet Systems
Incorporation - USA
Amounts in Rupees 20152016
Un-audited Un-audited
Half year ended 30 June
21 TRANSACTIONS WITH RELATED PARTIES
Related parties comprises of associated companies, staff retirement fund, directors and key management personnel. Transactions with related parties other than remuneration and benefits to key management personnel under the terms of their employment, are as follows:
576,984,948
16,967,445
593,952,393
24,832,569 Employee benefit plan ContributionsProvident fund 74,094,584
20 EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
Profit for the period attributable to equity
holders of the Parent 231,549,668 208,154,057 131,090,257 104,226,233
Average number of ordinary shares
in issue during the period 111,023,630 108,378,760 111,078,492 108,378,760
Basic - in Rupees 2.09 1.92 1.18 0.96
Profit for the period attributable to equity
holders of the Parent 231,549,668 208,154,057 131,090,257 104,226,233
Average number of ordinary shares
in issue during the period 111,835,130 109,621,145 111,492,376 109,621,145
Diluted - in Rupees 2.07 1.90 1.18 0.95
Amounts in Rupees 2016 2015
Un-audited
Quarter ended 30 June
2016 2015
Un-audited Un-audited
Half year ended 30 June
Un-audited
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
www.systemsltd.com44
22
OPER
ATI
NG
SEG
MEN
T IN
FOR
MA
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N
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gra
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en
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n c
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an
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Ad
min
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ativ
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re t
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n a
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un
allo
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co
me
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Un
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Oth
er
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e
Fin
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st
Pro
fit
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fore
ta
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Taxa
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Pro
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er
tax
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n
53
8,7
38
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8
48
4,1
97
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4
54
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0,9
84
39
,26
5,6
04
62
4,8
31
32
,84
1,8
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72
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2,2
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1,3
09
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33
7,5
61
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8
32
9,4
36
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3
8,1
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5
29
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0,1
71
6,0
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4
27
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4,6
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2,2
37
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Mid
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Ea
st
Un
-au
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20
16
20
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21
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0,5
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4,9
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0
34
6,9
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5
1,4
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45
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1,3
89
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5,1
02
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9,4
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3
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5,6
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7
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0,4
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1
29
5,2
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-
3,7
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2
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3,3
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5,5
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No
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Ju
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20
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20
15
14
,57
0,1
15
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9,8
19
1,7
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23
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22
13
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1,7
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5,7
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9,5
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6,0
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2,8
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-
-
-
-
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(90
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(90
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3,7
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- - - - -
Inte
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Un
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4,7
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8,7
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8,3
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6
18
0,9
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9,2
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69
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1,5
62
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7,2
45
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35
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8,5
66
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7,5
28
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9
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2,5
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1,7
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1
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6,6
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20
8,8
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56
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0,7
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36
0,7
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1
55
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3,8
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96
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13
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4,9
11
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5,8
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2
Tota
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20
15
Am
ou
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in R
up
ee
s
NOTE
S TO
THE C
OND
ENSE
D IN
TERIM
CO
NSO
LIDAT
ED FI
NANC
IAL I
NFO
RMAT
ION
for
the
ha
lf y
ea
r e
nd
ed
30 J
un
e 2
016
45
22.3
All
ass
ets
an
d li
ab
ilitie
s o
f th
e N
ort
h A
me
ric
a s
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me
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ha
ve
be
en
allo
ca
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to
Pa
kis
tan
se
gm
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22.2
Allo
ca
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n o
f a
sse
ts a
nd
lia
bili
tie
s
22.1
Inte
r se
gm
en
t sa
les
an
d p
urc
ha
ses
ha
ve
be
en
elim
ina
ted
.
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTE
S TO
THE C
OND
ENSE
D IN
TERIM
CO
NSO
LIDAT
ED FI
NANC
IAL I
NFO
RMAT
ION
for
the
ha
lf y
ea
r e
nd
ed
30 J
un
e 2
016
Tota
l o
pe
ratin
g lia
bili
tie
s
Lon
g t
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ad
va
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es
Lon
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fin
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bo
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win
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Tra
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d o
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s
Pro
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fo
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ratu
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Ma
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p o
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Un
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eve
nu
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Tota
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Tax
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s d
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Re
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an
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pa
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Inta
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Pro
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eq
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me
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Am
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in R
up
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s
Se
gm
en
t o
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ts
Se
gm
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343,5
03,5
05
16,6
63,9
23
-
110,0
00,0
00
146,5
50,5
71
1,2
88,1
02
-
69,0
00,9
09
2,8
67,7
08,8
57
409,1
44,3
29
125,0
00,0
00
77,8
35,8
18
16,9
67,4
45
1,4
68,9
63
139,6
82,2
78
116,5
60,0
68
998,0
61,2
92
420,0
36,9
15
5,5
70,5
81
-
17,6
18,4
51
100,9
40,3
06
438,8
22,4
11
2,8
00,5
51,5
36
386,9
77,3
35
12,6
69,3
95
- -
262,8
79,8
97
1,6
16,9
73
-
109,8
11,0
70
193,5
93,8
56
557,7
99,3
98
55,1
43,9
56
11,5
36,3
11
5,0
58,5
61
114,2
39,6
39
72,8
77,5
63
961,6
94,6
28
369,9
60,3
16
809,5
10
-
11,9
01,1
00
83,2
33,4
00
362,7
03,2
98
(673,1
46,8
00)
-
(46,6
54,1
09)
-
(618,9
65,3
15)
-
(7,5
27,3
76)
-
(724,2
24,7
80)
-
-
-
(257,1
81,8
18)
-
-
-
(415,9
64,9
82)
-
-
(51,0
77,9
80)
-
-
-
(382,4
81,1
59)
-
(21,6
05,3
57)
-
(353,3
48,4
35)
-
(7,5
27,3
67)
-
(433,5
59,1
39)
-
-
-
(153,0
36,5
45)
(7,5
27,3
67)
-
-
(221,9
17,2
47)
-
-
(51,0
77,9
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-
-
-
382,8
36,4
16
16,6
63,9
23
46,6
54,1
09
110,0
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132,9
90,0
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7,5
27,3
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20,2
19,4
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333,5
26,4
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00,0
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77,8
35,8
18
244,0
59,5
19
1,4
68,9
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48,2
70
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07,5
25
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11,8
60,9
56
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09,0
40
5,5
70,5
81
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77,9
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00
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40,3
06
435,2
12,8
45
390,9
37,1
55
12,6
69,3
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21,6
05,3
57
-
239,3
23,9
66
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7,5
27,3
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109,8
11,0
70
2,9
02,3
75,4
72
145,5
28,0
20
557,7
99,3
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55,1
43,9
56
164,5
72,8
56
12,5
85,9
28
48,2
07,1
15
68,0
55,6
10
1,0
98,5
92,7
46
244,2
14,3
38
809,5
10
51,0
77,9
80
11,9
01,1
00
83,2
33,4
00
360,6
53,5
15
633,8
13,8
89
- - -
632,5
25,7
87
1,2
88,1
02
- -
571,7
14,2
37
75,6
17,8
32
-
-
30,0
89,7
44
-
31,1
34,0
08
28,4
52,5
43
202,1
65,3
18
195,9
27,8
75
-
-
4,7
17,3
51
-
3,6
09,5
66
378,5
21,3
39
- - -
376,9
04,3
66
1,6
16,9
73
- -
331,7
35,2
03
48,0
65,8
36
-
-
-
-
66,0
32,5
24
4,8
21,9
53
85,0
19,1
29
125,7
45,9
78
-
-
-
-
2,0
49,7
83
-- - - - - - ---
-
-
-
-
-
-
-
-
-
-
-
-
-
-- - - - - - ---
-
-
-
-
-
-
-
-
-
-
-
-
-
Tota
l
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
31 D
ec
em
be
r 2015
Inte
r Se
gm
en
t Elim
ina
tio
ns
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
Pa
kis
tan
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
Mid
dle
Ea
st
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
No
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Am
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a
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
31 D
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be
r 2015
31 D
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be
r 2015
31 D
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be
r 2015
31 D
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em
be
r 2015
www.systemsltd.com44
22
OPER
ATI
NG
SEG
MEN
T IN
FOR
MA
TIO
N
G
eo
gra
ph
ica
l se
gm
en
ts
Fo
r m
an
ag
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s, t
he
Gro
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org
an
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to b
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ss u
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ba
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on
th
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ph
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s a
nd
ha
s th
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re
po
rta
ble
op
era
tin
g
seg
me
nts
as
follo
ws:
N
ort
h A
me
ric
a
M
idd
le E
ast
P
akis
tan
M
an
ag
em
en
t m
on
ito
rs th
e o
pe
ratin
g re
sults
of
its
op
era
tin
g se
gm
en
ts se
pa
rate
ly fo
r th
e p
urp
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o
f p
erf
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an
ce
a
sse
ssm
en
t. Se
gm
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t p
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orm
an
ce
is e
va
lua
ted
ba
sed
on
op
era
tin
g p
rofit
or lo
ss a
nd
is m
ea
sure
d c
on
sist
en
tly w
ith
op
era
tin
g p
rofit
or lo
ss in
th
e c
on
solid
ate
d fin
an
cia
l st
ate
me
nts
.
Tr
an
sfe
r pric
es
be
twe
en
op
era
tin
g se
gm
en
ts a
re o
n a
rm’s
len
gth
ba
sis
in a
ma
nn
er s
imila
r to
tra
nsa
ctio
ns w
ith
th
ird
pa
rtie
s.
Sale
s
Co
st o
f sa
les
Gro
ss p
rofit
Dis
trib
utio
n c
ost
Re
sea
rch
an
d d
ev
elo
pm
en
t e
xpe
nse
s
Ad
min
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ativ
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xpe
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Pro
fit
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re t
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n a
nd
un
allo
ca
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in
co
me
an
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xp
en
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Un
allo
ca
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in
co
me
an
d e
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Oth
er
inc
om
e
Fin
an
ce
co
st
Pro
fit
be
fore
ta
xa
tio
n
Taxa
tio
n
Pro
fit
aft
er
tax
atio
n
53
8,7
38
,95
8
48
4,1
97
,97
4
54
,54
0,9
84
39
,26
5,6
04
62
4,8
31
32
,84
1,8
58
72
,73
2,2
93
(18
,19
1,3
09
)
33
7,5
61
,14
8
32
9,4
36
,30
3
8,1
24
,84
5
29
,41
0,1
71
6,0
32
,27
4
27
,69
4,6
37
63
,13
7,0
82
(55
,01
2,2
37
)
Mid
dle
Ea
st
Un
-au
dite
dH
alf y
ea
r e
nd
ed
Ju
ne
20
16
20
15
8
21
,94
0,5
45
47
4,9
82
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0
34
6,9
58
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5
1,4
16
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2
45
7,1
71
85
,59
1,3
89
87
,46
5,1
02
25
9,4
93
,20
3
66
5,6
75
,26
7
37
0,4
62
,73
1
29
5,2
12
,53
6
-
3,7
32
,28
2
82
,04
3,3
12
85
,77
5,5
94
20
9,4
36
,94
2
No
rth
Am
eri
ca
Un
-au
dite
dH
alf y
ea
r e
nd
ed
Ju
ne
20
16
20
15
14
,57
0,1
15
71
,66
9,8
19
1,7
76
,97
23
,60
3,0
44
12
,79
3,1
43
68
,06
6,7
75
23
1,4
89
,81
22
13
,92
1,7
97
1,9
72
,41
38
,34
5,7
66
22
9,5
17
,39
92
05
,57
6,0
31
(1
62
,80
1,6
93
)
(16
2,8
01
,69
3)
-
-
-
-
-
(90
,07
3,7
15
)
(90
,07
3,7
15
)
- - - - -
Inte
r Se
gm
en
t Elim
ina
tio
ns
Un
-au
dite
dH
alf y
ea
r e
nd
ed
Ju
ne
20
16
20
15
36
4,7
99
,43
5
33
8,7
70
,04
5
26
,02
9,3
90
19
,73
0,3
90
69
9,5
89
28
,20
4,6
36
48
,63
4,6
15
(22
,60
5,2
25
)
23
8,3
77
,75
6
18
0,9
48
,46
6
57
,42
9,2
90
26
,32
3,7
14
7,0
99
,54
0
32
,57
5,7
19
65
,99
8,9
73
(8,5
69
,68
3)
Pa
kis
tan
Un
-au
dite
dH
alf y
ea
r e
nd
ed
Ju
ne
20
16
20
15
1,5
62
,67
7,2
45
1,1
35
,14
8,5
66
42
7,5
28
,67
9
60
,41
2,5
36
1,7
81
,59
1
14
6,6
37
,88
3
20
8,8
32
,01
0
21
8,6
96
,66
9
1,1
51
,54
0,4
56
79
0,7
73
,78
5
36
0,7
66
,67
1
55
,73
3,8
85
16
,86
4,0
96
14
2,3
13
,66
8
21
4,9
11
,64
9
14
5,8
55
,02
2
Tota
l
Un
-au
dite
dH
alf y
ea
r e
nd
ed
Ju
ne
20
16
20
15
Am
ou
nts
in R
up
ee
s
NOTE
S TO
THE C
OND
ENSE
D IN
TERIM
CO
NSO
LIDAT
ED FI
NANC
IAL I
NFO
RMAT
ION
for
the
ha
lf y
ea
r e
nd
ed
30 J
un
e 2
016
45
22.3
All
ass
ets
an
d li
ab
ilitie
s o
f th
e N
ort
h A
me
ric
a s
eg
me
nt
ha
ve
be
en
allo
ca
ted
to
Pa
kis
tan
se
gm
en
t.
22.2
Allo
ca
tio
n o
f a
sse
ts a
nd
lia
bili
tie
s
22.1
Inte
r se
gm
en
t sa
les
an
d p
urc
ha
ses
ha
ve
be
en
elim
ina
ted
.
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTE
S TO
THE C
OND
ENSE
D IN
TERIM
CO
NSO
LIDAT
ED FI
NANC
IAL I
NFO
RMAT
ION
for
the
ha
lf y
ea
r e
nd
ed
30 J
un
e 2
016
Tota
l o
pe
ratin
g lia
bili
tie
s
Lon
g t
erm
ad
va
nc
es
Lon
g t
erm
fin
an
cin
g
Sho
rt t
erm
bo
rro
win
g
Tra
de
an
d o
the
r p
aya
ble
s
Pro
vis
ion
fo
r g
ratu
ity
Ma
rku
p o
n lo
ng
te
rm f
ina
nc
ing
Un
ea
rne
d r
eve
nu
e
Tota
l o
pe
ratin
g a
sse
ts
Ca
sh a
nd
ba
nk b
ala
nc
es
Sho
rt t
erm
inve
stm
en
ts
Tax
refu
nd
s d
ue
fro
m G
ove
rnm
en
t
Re
ce
iva
ble
fro
m r
ela
ted
pa
rtie
s
Inte
rest
ac
cru
ed
Tra
de
de
po
sits
-
an
d s
ho
rt t
erm
pre
pa
ym
en
ts
Ad
va
nc
es
Tra
de
de
bts
Un
bill
ed
re
ve
nu
e
De
ferr
ed
ta
xatio
n
Lon
g t
erm
inve
stm
en
ts
Lon
g t
erm
de
po
sits
Inta
ng
ible
s
Pro
pe
rty a
nd
eq
uip
me
nt
Am
ou
nts
in R
up
ee
s
Se
gm
en
t o
pe
ratin
g a
sse
ts
Se
gm
en
t o
pe
ratin
g lia
bili
tie
s
343,5
03,5
05
16,6
63,9
23
-
110,0
00,0
00
146,5
50,5
71
1,2
88,1
02
-
69,0
00,9
09
2,8
67,7
08,8
57
409,1
44,3
29
125,0
00,0
00
77,8
35,8
18
16,9
67,4
45
1,4
68,9
63
139,6
82,2
78
116,5
60,0
68
998,0
61,2
92
420,0
36,9
15
5,5
70,5
81
-
17,6
18,4
51
100,9
40,3
06
438,8
22,4
11
2,8
00,5
51,5
36
386,9
77,3
35
12,6
69,3
95
- -
262,8
79,8
97
1,6
16,9
73
-
109,8
11,0
70
193,5
93,8
56
557,7
99,3
98
55,1
43,9
56
11,5
36,3
11
5,0
58,5
61
114,2
39,6
39
72,8
77,5
63
961,6
94,6
28
369,9
60,3
16
809,5
10
-
11,9
01,1
00
83,2
33,4
00
362,7
03,2
98
(673,1
46,8
00)
-
(46,6
54,1
09)
-
(618,9
65,3
15)
-
(7,5
27,3
76)
-
(724,2
24,7
80)
-
-
-
(257,1
81,8
18)
-
-
-
(415,9
64,9
82)
-
-
(51,0
77,9
80)
-
-
-
(382,4
81,1
59)
-
(21,6
05,3
57)
-
(353,3
48,4
35)
-
(7,5
27,3
67)
-
(433,5
59,1
39)
-
-
-
(153,0
36,5
45)
(7,5
27,3
67)
-
-
(221,9
17,2
47)
-
-
(51,0
77,9
80)
-
-
-
382,8
36,4
16
16,6
63,9
23
46,6
54,1
09
110,0
00,0
00
132,9
90,0
99
-
7,5
27,3
76
69,0
00,9
09
3,0
20,2
19,4
00
333,5
26,4
97
125,0
00,0
00
77,8
35,8
18
244,0
59,5
19
1,4
68,9
63
108,5
48,2
70
88,1
07,5
25
1,2
11,8
60,9
56
224,1
09,0
40
5,5
70,5
81
51,0
77,9
80
12,9
01,1
00
100,9
40,3
06
435,2
12,8
45
390,9
37,1
55
12,6
69,3
95
21,6
05,3
57
-
239,3
23,9
66
-
7,5
27,3
67
109,8
11,0
70
2,9
02,3
75,4
72
145,5
28,0
20
557,7
99,3
98
55,1
43,9
56
164,5
72,8
56
12,5
85,9
28
48,2
07,1
15
68,0
55,6
10
1,0
98,5
92,7
46
244,2
14,3
38
809,5
10
51,0
77,9
80
11,9
01,1
00
83,2
33,4
00
360,6
53,5
15
633,8
13,8
89
- - -
632,5
25,7
87
1,2
88,1
02
- -
571,7
14,2
37
75,6
17,8
32
-
-
30,0
89,7
44
-
31,1
34,0
08
28,4
52,5
43
202,1
65,3
18
195,9
27,8
75
-
-
4,7
17,3
51
-
3,6
09,5
66
378,5
21,3
39
- - -
376,9
04,3
66
1,6
16,9
73
- -
331,7
35,2
03
48,0
65,8
36
-
-
-
-
66,0
32,5
24
4,8
21,9
53
85,0
19,1
29
125,7
45,9
78
-
-
-
-
2,0
49,7
83
-- - - - - - ---
-
-
-
-
-
-
-
-
-
-
-
-
-
-- - - - - - ---
-
-
-
-
-
-
-
-
-
-
-
-
-
Tota
l
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
31 D
ec
em
be
r 2015
Inte
r Se
gm
en
t Elim
ina
tio
ns
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
Pa
kis
tan
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
Mid
dle
Ea
st
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
No
rth
Am
eric
a
Au
dite
d
30 J
un
e 2
016
Un
-au
dite
d
31 D
ec
em
be
r 2015
31 D
ec
em
be
r 2015
31 D
ec
em
be
r 2015
31 D
ec
em
be
r 2015
www.systemsltd.com46
Amounts in Rupees
Half year ended 30 June
23 CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments of items not involving movement of cash:
Effect on cash flow due to working capital changes
Increase in current assets:
Unbilled revenue - net
Decrease in current liabilities:
Unearned revenue
20152016
Un-audited Un-audited
2,041,947
(65,855,894)
(144,175,568)
(6,447,492)
Profit before taxation 213,921,797231,489,812
Depreciation on property and equipment 32,742,54136,216,087
Amortization of intangibles 7,261,927
9,318,658
Provision for bad debts made during the period -
(1,469,520)
Adjustment to employees' compensation reserve - 4,550,100
Finance cost 3,603,044 1,776,972
Profit on bank deposits (9,300,870)(2,444,058)
Exchange (gain) / loss - net (6,031,272) (1,582,003)
Gain on short term investment (23,246,342)(7,905,210)
Gain on disposal of property and equipment (2,987,081)
(1,747,534)
36,713,492
Profit before working capital changes 215,963,744268,203,304
Trade debts (12,535,312)(33,315,141)
(50,076,599)
Receivable from related parties (13,045,794) (5,431,134)
Advances (50,018,905) (43,682,505)
Trade deposits and short term prepayments (2,719,663)(25,442,639)
(157,948,018)
(40,810,161)
Trade and other payables (125,747,495)(116,329,326)
(132,194,987) (157,139,487)
Cash generated from operations (60,406,811) (46,884,201)
24 DATE OF AUTHORIZATION FOR ISSUE
This condensed interim consolidated financial information was authorized for issuance on 23 August 2016 by Board of Directors of the Company.
25 CORRESPONDING FIGURES
Corresponding figures have been re-arranged where necessary for the purpose of comparison, however no significant re-arrangements have been made.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
47
26 GENERAL
Figures have been rounded off to the nearest rupee unless otherwise stated.
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
www.systemsltd.com46
Amounts in Rupees
Half year ended 30 June
23 CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments of items not involving movement of cash:
Effect on cash flow due to working capital changes
Increase in current assets:
Unbilled revenue - net
Decrease in current liabilities:
Unearned revenue
20152016
Un-audited Un-audited
2,041,947
(65,855,894)
(144,175,568)
(6,447,492)
Profit before taxation 213,921,797231,489,812
Depreciation on property and equipment 32,742,54136,216,087
Amortization of intangibles 7,261,927
9,318,658
Provision for bad debts made during the period -
(1,469,520)
Adjustment to employees' compensation reserve - 4,550,100
Finance cost 3,603,044 1,776,972
Profit on bank deposits (9,300,870)(2,444,058)
Exchange (gain) / loss - net (6,031,272) (1,582,003)
Gain on short term investment (23,246,342)(7,905,210)
Gain on disposal of property and equipment (2,987,081)
(1,747,534)
36,713,492
Profit before working capital changes 215,963,744268,203,304
Trade debts (12,535,312)(33,315,141)
(50,076,599)
Receivable from related parties (13,045,794) (5,431,134)
Advances (50,018,905) (43,682,505)
Trade deposits and short term prepayments (2,719,663)(25,442,639)
(157,948,018)
(40,810,161)
Trade and other payables (125,747,495)(116,329,326)
(132,194,987) (157,139,487)
Cash generated from operations (60,406,811) (46,884,201)
24 DATE OF AUTHORIZATION FOR ISSUE
This condensed interim consolidated financial information was authorized for issuance on 23 August 2016 by Board of Directors of the Company.
25 CORRESPONDING FIGURES
Corresponding figures have been re-arranged where necessary for the purpose of comparison, however no significant re-arrangements have been made.
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
AEZAZ HUSSAINChairman
ASIF PEERChief ExecutiveLAHORE
47
26 GENERAL
Figures have been rounded off to the nearest rupee unless otherwise stated.
Systems Limited | Interim Financial Report half year ended 30 June 2016
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATIONfor the half year ended 30 June 2016
Lahore - Head Office Karachi Dubai
Chamber of Commerce Building,11 Sharae Aiwane Tijarat,Lahore, PakistanT: +92 42 36304825-35F: +92 42 36368857
E-5, Central Commercial Area,Shaheed-e-Millat Road,Karachi, PakistanT: +92 21 34549385-87F: +92 21 34549389
TechVista Systems FZ-LLCOffice 105, Building 11 Dubai Internet City,PO Box 500497, Dubai, UAET: + 9714 369 3525F: +9714 456 3761
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