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

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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

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

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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

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2016

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821,9

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84,9

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364,2

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29,4

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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

s

Co

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15,6

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252,5

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390,5

51,2

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128,7

51,3

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150,9

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239,6

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821,9

40,5

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474,9

82,2

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346,9

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1,4

16,5

46

457,1

71

84,9

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87,7

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260,1

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66

5,6

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62

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3,7

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364,2

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334,8

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29,4

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2015

Systems Limited | Interim Financial Report half year ended 30 June 2016

NO

TES

TO T

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CO

ND

ENSE

D IN

TERI

M F

INA

NC

IAL

INFO

RMA

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NO

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30 J

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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

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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

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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

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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

www.systemsltd.com36

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

www.systemsltd.com38

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

www.systemsltd.com38

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

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

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

www.systemsltd.com42

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.com42

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

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Systems Limited | Interim Financial Report half year ended 30 June 2016

NOTE

S TO

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www.systemsltd.com44

22

OPER

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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

Des

ign

ed &

Pro

du

ced

by