Interim Financial Report | for the half year ended 30 June 2017

Upgrading your Business

TECHNOLOGY & INNOVATION

future through

Corporate Information

Director’s Review

Director’s Review

Auditor’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

Selected 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

Selected Notes to the Condensed Interim Consolidated Financial Information

Contents02

03

05

09

10

12

13

14

15

16

32

34

35

36

37

38

Corporate Information

Director’s Review

Director’s Review

Auditor’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

Selected 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

Selected Notes to the Condensed Interim Consolidated Financial Information

Contents02

03

05

09

10

12

13

14

15

16

32

34

35

36

37

38

SHARES REGISTRAR

THK Associates (Private) Limited.1st Floor, 40-C, Block-6P.E.C.H.S, Karachi.

T: +92 21 111-000-322F: +92 21 34168271

Systems Campus

Software Technology Park

E-1, Sehjpal Near DHA Phase-VIII,

(Ex-Air Avenue), Lahore Cantt.

UAN: +92 42 111-797-836

T: +92 42 37319401

LAHORE OFFICE - HEAD OFFICE

KARACHI OFFICE

E-5, Central Commercial Area,Shaheed-e-Millat Road,Karachi, PakistanT: +92 21 34549385-87F: +92 21 34549389

WEB PRESENCE

www.systemsltd.com

DIRECTOR’S REVIEWCORPORATE INFORMATION

Revenue

Gross Profit

Operating Profit

Profit After Taxation

Basic Earnings Per share (Rs)

Diluted Earnings Per Share (Rs)

Six months ended

30 June 2017

Six months ended

30 June 2016

Change

%

Unconsolidated

Consolidated:

During the half year ended 2017, the Company's consolidated revenues grew by 8%. Gross profit and operating profits showed growth of 16% and 34% respectively due to operational efficiency and profitable operations of TVS. Resultantly, Profit after tax, basic and diluted earnings also increase by nearly 21-22%.

AUDIT COMMITTEE

Mr. Ayaz DawoodChairman

Mr. Omer SaeedMember

Mr. Tahir MasaudMember

HUMAN RESOURCE & COMPENSATION COMMITTEE

Mr. Omar SaeedChairman

Mr. Asif JoomaMember

Mr. Tahir MasaudMember

COMPANY SECRETARY & CHIEF FINANCIAL OFFICER

Mr. Muhammad Khurram Iqbal

LEGAL ADVISOR

Hassan & Hassan Advocates

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

BOARD OF DIRECTORS

AUDITORS

Chartered Accountants

Lahore

EY Ford Rhodes

Interim Financial Reprot 32 Systems Limited

1,364,858,943

435,168,166

252,095,670

241,078,507

2.16

2.16

1,338,353,187

390,551,260

239,649,323

252,543,532

2.27

2.26

2%

11%

5%

(5)%

(5)%

(5)%

DUBAI OFFICE

TechVista Systems FZ-LLC

O�ce 1905, Regal Tower

Business Bay,

Dubai, UAE

Tel: + 9714 369 3525

Fax: + 9714 456 3761

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 30 June 2017.

MARKET OUTLOOK

We have seen sustained growth of our software development services and business process outsourcing services. With our customer focused delivery we are able to retain and grow most of our customers in first half of 2017.

Keeping in line with our history we continue to invest in innovation and stay at the cutting edge of Information Technology. We developed business solutions in the Apparel/Retail vertical for Omni Channel Retail, Business Partner Integrations, and apparel/retail specific templates for Business Intelligence solutions. Our focused and result oriented effort in this space has paid off and we are able to sign up many new logos in this space.

We have also diversified in the digital marketing and call center business and we are able to sign up customer to perform their digital marketing and sales through our call center agents. This business vertical has stabilized and has growth potential in the near future.

Our operations based in Dubai through our subsidiary TechVista Systems (TVS) have grown as our client base in this region. For last 3 years we have invested in client acquisition and building our brand name in these markets, with our meticulous focus and customer oriented strategy we have been able to sign up about a number of recurring customers both in Public and Private Sector. We are expecting a sustainable future growth and quality revenue through these markets. We have already started to get our Return on Investment in this region during 2017.

Our subsidiary EP Systems' product OneLoad has been successfully integrated with all the telecom service providers as well as most of the banks. As a result the total monthly transactions of OneLoad have dramatically increased to nearly two (2) million. This increase in transaction volume was only achieved through word of mouth and minimum sales effort. EP Systems is targeting to do aggressive marketing campaign during 2017.

FINANCIAL RESULTS

Unconsolidated:

During the half year ended 2017, the Company's revenues showed steady growth of 2%. Gross profit and operating profits showed growth of 11% and 5% respectively due to operational efficiency. Profit after tax, basic and diluted earnings per share showed decline of nearly 5% due to other operating expenses.

Revenue

Gross Profit

Operating Profit

Profit After Taxation

Basic Earnings Per share (Rs)

Diluted Earnings Per Share (Rs)

Six months ended

30 June 2017

Six months ended

30 June 2016

Change

%

Consolidated

1,682,399,849

497,127,883

293,215,171

277,604,364

2.53

2.53

1,562,677,245

427,528,679

218,696,669

229,517,399

2.09

2.07

8%

16%

34%

21%

21%

22%

BANKERS

Habib Metropolitan Bank Limited

United Bank Limited

Standard Chartered Bank (Pakistan) Limited

Albaraka Bank Limited

Bank Alfalah Limited

Bank Islami Limited

Meezan Bank Limited

Dubai Islamic Bank

Faysal Bank Limited

Deutsche Bank AGHabib Bank LimitedMCB Bank Limited

Chamber of Commerce Building,

11 Shara-e-Aiwane Tijarat,

Lahore, Pakistan.

T: +92 42 36304825-35

F: +92 42 36368857

REGISTERED OFFICE

SHARES REGISTRAR

THK Associates (Private) Limited.1st Floor, 40-C, Block-6P.E.C.H.S, Karachi.

T: +92 21 111-000-322F: +92 21 34168271

Systems Campus

Software Technology Park

E-1, Sehjpal Near DHA Phase-VIII,

(Ex-Air Avenue), Lahore Cantt.

UAN: +92 42 111-797-836

T: +92 42 37319401

LAHORE OFFICE - HEAD OFFICE

KARACHI OFFICE

E-5, Central Commercial Area,Shaheed-e-Millat Road,Karachi, PakistanT: +92 21 34549385-87F: +92 21 34549389

WEB PRESENCE

www.systemsltd.com

DIRECTOR’S REVIEWCORPORATE INFORMATION

Revenue

Gross Profit

Operating Profit

Profit After Taxation

Basic Earnings Per share (Rs)

Diluted Earnings Per Share (Rs)

Six months ended

30 June 2017

Six months ended

30 June 2016

Change

%

Unconsolidated

Consolidated:

During the half year ended 2017, the Company's consolidated revenues grew by 8%. Gross profit and operating profits showed growth of 16% and 34% respectively due to operational efficiency and profitable operations of TVS. Resultantly, Profit after tax, basic and diluted earnings also increase by nearly 21-22%.

AUDIT COMMITTEE

Mr. Ayaz DawoodChairman

Mr. Omer SaeedMember

Mr. Tahir MasaudMember

HUMAN RESOURCE & COMPENSATION COMMITTEE

Mr. Omar SaeedChairman

Mr. Asif JoomaMember

Mr. Tahir MasaudMember

COMPANY SECRETARY & CHIEF FINANCIAL OFFICER

Mr. Muhammad Khurram Iqbal

LEGAL ADVISOR

Hassan & Hassan Advocates

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

BOARD OF DIRECTORS

AUDITORS

Chartered Accountants

Lahore

EY Ford Rhodes

Interim Financial Reprot 32 Systems Limited

1,364,858,943

435,168,166

252,095,670

241,078,507

2.16

2.16

1,338,353,187

390,551,260

239,649,323

252,543,532

2.27

2.26

2%

11%

5%

(5)%

(5)%

(5)%

DUBAI OFFICE

TechVista Systems FZ-LLC

O�ce 1905, Regal Tower

Business Bay,

Dubai, UAE

Tel: + 9714 369 3525

Fax: + 9714 456 3761

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 30 June 2017.

MARKET OUTLOOK

We have seen sustained growth of our software development services and business process outsourcing services. With our customer focused delivery we are able to retain and grow most of our customers in first half of 2017.

Keeping in line with our history we continue to invest in innovation and stay at the cutting edge of Information Technology. We developed business solutions in the Apparel/Retail vertical for Omni Channel Retail, Business Partner Integrations, and apparel/retail specific templates for Business Intelligence solutions. Our focused and result oriented effort in this space has paid off and we are able to sign up many new logos in this space.

We have also diversified in the digital marketing and call center business and we are able to sign up customer to perform their digital marketing and sales through our call center agents. This business vertical has stabilized and has growth potential in the near future.

Our operations based in Dubai through our subsidiary TechVista Systems (TVS) have grown as our client base in this region. For last 3 years we have invested in client acquisition and building our brand name in these markets, with our meticulous focus and customer oriented strategy we have been able to sign up about a number of recurring customers both in Public and Private Sector. We are expecting a sustainable future growth and quality revenue through these markets. We have already started to get our Return on Investment in this region during 2017.

Our subsidiary EP Systems' product OneLoad has been successfully integrated with all the telecom service providers as well as most of the banks. As a result the total monthly transactions of OneLoad have dramatically increased to nearly two (2) million. This increase in transaction volume was only achieved through word of mouth and minimum sales effort. EP Systems is targeting to do aggressive marketing campaign during 2017.

FINANCIAL RESULTS

Unconsolidated:

During the half year ended 2017, the Company's revenues showed steady growth of 2%. Gross profit and operating profits showed growth of 11% and 5% respectively due to operational efficiency. Profit after tax, basic and diluted earnings per share showed decline of nearly 5% due to other operating expenses.

Revenue

Gross Profit

Operating Profit

Profit After Taxation

Basic Earnings Per share (Rs)

Diluted Earnings Per Share (Rs)

Six months ended

30 June 2017

Six months ended

30 June 2016

Change

%

Consolidated

1,682,399,849

497,127,883

293,215,171

277,604,364

2.53

2.53

1,562,677,245

427,528,679

218,696,669

229,517,399

2.09

2.07

8%

16%

34%

21%

21%

22%

BANKERS

Habib Metropolitan Bank Limited

United Bank Limited

Standard Chartered Bank (Pakistan) Limited

Albaraka Bank Limited

Bank Alfalah Limited

Bank Islami Limited

Meezan Bank Limited

Dubai Islamic Bank

Faysal Bank Limited

Deutsche Bank AGHabib Bank LimitedMCB Bank Limited

Chamber of Commerce Building,

11 Shara-e-Aiwane Tijarat,

Lahore, Pakistan.

T: +92 42 36304825-35

F: +92 42 36368857

REGISTERED OFFICE

Interim Financial Reprot 54 Systems Limited

25 August 2017

Lahore

Asif Peer

Chief Executive

On behalf of the Board

FUTURE OUTLOOK

Our 2017 budget is focused on achieving steady growth. This growth is going to be attributed to following factors:

• Strong and consistent pipeline and recurring business from North America.

• Our Investment in the new tools, technologies and completion of our business solutions for the North American Apparel and Retail Vertical will provide us steady growth and recurring revenue.

• We are expecting further growth from our MEA business since we have established credible references in the region which will help us in getting recurring business and winning new logos.

• In domestic market we are strongly aligned with two major Principals - Microsoft and IBM and expect business from their partnerships.

• We are targeting to complete the Pakistan Civil Aviation Authority project by end of 2017 and kick-off 3 year support immediately after completion. This project will not only add growth to our top and bottom line but also enable us to do more projects with other airports locally and internationally.

• We have moved to our new building in Lahore which would be fully operational by end of 3rd quarter. We have already registered our new building in Lahore as Software Technology Park with Pakistan Software Export Board (PSEB). This will not only result in enhancing image of brand but also help us in reducing our overheads and bring efficiency by putting all teams under one roof and most importantly we will have immediate space available to double our capacity without further investing in infrastructure.

• 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.

• We are expecting growth in our export revenue. Any Dollar depreciation will provide additional profitability.

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.

DIRECTOR’S REVIEW

30 June 201730 June 2016

30 June 201730 June 2016

(Basic)

(Diluted)

1,364,858,943

435,168,166

252,095,670

241,078,507

2.16

2.16

1,338,353,187

390,551,260

239,649,323

252,543,532

2.27

2.26

2%

11%

5%

(5)%

(5)%

(5)%

1,682,399,849

497,127,883

293,215,171

277,604,364

2.53

2.53

1,562,677,245

427,528,679

218,696,669

229,517,399

2.09

2.07

8%

16%

34%

21%

21%

22%

(Basic)

(Diluted)

Interim Financial Reprot 54 Systems Limited

25 August 2017

Lahore

Asif Peer

Chief Executive

On behalf of the Board

FUTURE OUTLOOK

Our 2017 budget is focused on achieving steady growth. This growth is going to be attributed to following factors:

• Strong and consistent pipeline and recurring business from North America.

• Our Investment in the new tools, technologies and completion of our business solutions for the North American Apparel and Retail Vertical will provide us steady growth and recurring revenue.

• We are expecting further growth from our MEA business since we have established credible references in the region which will help us in getting recurring business and winning new logos.

• In domestic market we are strongly aligned with two major Principals - Microsoft and IBM and expect business from their partnerships.

• We are targeting to complete the Pakistan Civil Aviation Authority project by end of 2017 and kick-off 3 year support immediately after completion. This project will not only add growth to our top and bottom line but also enable us to do more projects with other airports locally and internationally.

• We have moved to our new building in Lahore which would be fully operational by end of 3rd quarter. We have already registered our new building in Lahore as Software Technology Park with Pakistan Software Export Board (PSEB). This will not only result in enhancing image of brand but also help us in reducing our overheads and bring efficiency by putting all teams under one roof and most importantly we will have immediate space available to double our capacity without further investing in infrastructure.

• 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.

• We are expecting growth in our export revenue. Any Dollar depreciation will provide additional profitability.

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.

DIRECTOR’S REVIEW

30 June 201730 June 2016

30 June 201730 June 2016

(Basic)

(Diluted)

1,364,858,943

435,168,166

252,095,670

241,078,507

2.16

2.16

1,338,353,187

390,551,260

239,649,323

252,543,532

2.27

2.26

2%

11%

5%

(5)%

(5)%

(5)%

1,682,399,849

497,127,883

293,215,171

277,604,364

2.53

2.53

1,562,677,245

427,528,679

218,696,669

229,517,399

2.09

2.07

8%

16%

34%

21%

21%

22%

(Basic)

(Diluted)

Condensed Interim

Financial Information

6 Systems Limited

25-08-2017

Condensed Interim

Financial Information

6 Systems Limited

25-08-2017

AUDITORS' REPORT TO THE MEMBERS ON

REVIEW OF INTERIM FINANCIAL INFORMATION

Interim Financial Reprot 9

Introduction

We have reviewed the accompanying condensed interim balance sheet of Systems Limited as at 30 June 2017 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 condensed interim financial information as at and for the six-month period ended 30 June 2017 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

This page has been left blank intentionally

Chartered Accountants

Engagement Partner: Naseem AkbarLahore: 28 August 2017

AUDITORS' REPORT TO THE MEMBERS ON

REVIEW OF INTERIM FINANCIAL INFORMATION

Interim Financial Reprot 9

Introduction

We have reviewed the accompanying condensed interim balance sheet of Systems Limited as at 30 June 2017 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 condensed interim financial information as at and for the six-month period ended 30 June 2017 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

This page has been left blank intentionally

Chartered Accountants

Engagement Partner: Naseem AkbarLahore: 28 August 2017

Interim Financial Reprot 11

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital

200,000,000 (2016: 150,000,000) ordinary shares of Rs. 10 each

Issued, subscribed and paid up share capital 15

Capital reserves

Unappropriated profit

Total shareholders' equity

Non-current liabilities

Long term advances 16

Current liabilities

Trade and other payables 17

Short term borrowings 18

Unearned revenue

Current portion of long term advances

Total current liabilities

TOTAL EQUITY AND LIABILITIES

2,000,000,000

1,118,276,520 480,932,799

1,377,571,530

2,976,780,849

11,987,624

11,987,624

190,849,432

150,000,000

11,556,688

2,550,000

354,956,120

3,343,724,593

1,500,000,000

1,110,784,920 461,091,227

1,344,492,456

2,916,368,603

10,910,791

10,910,791

226,689,126

-

14,387,586

6,109,697

247,186,409

3,174,465,803

Contingencies and commitments 20

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

ASIF PEER

Chief Executive

CONDENSED INTERIM BALANCE SHEET

AEZAZ HUSSAIN

Chairman

as at 30 June 2017

10 Systems Limited

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

ASSETS

Non-current assets

Property and equipment 6

Intangibles 7

Long term investments 8

Long term deposits

Deferred taxation

Total non-current assets

Current assets

Unbilled revenue

Trade debts 9

Advances - considered good 10

Trade deposits and short term prepayments 11

Interest accrued

Other receivables 12

Short term investments 13

Tax refunds due from the Government

Cash and bank balances 14

Total current assets

TOTAL ASSETS

785,472,580 557,598,452

55,795,799

51,467,435

51,077,980

51,077,980

6,130,852

6,130,852

25,276,863

25,276,863

923,754,074

691,551,582

435,522,419

320,894,130

1,162,559,435

1,290,766,880

55,020,662

31,158,750

59,543,557

59,561,630

13,439,799

11,863,416

270,654,118

226,917,525

160,000,000

253,000,000

121,794,682

105,551,702

141,435,847

183,200,188

2,419,970,519 2,482,914,221

3,343,724,593 3,174,465,803

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

Interim Financial Reprot 11

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital

200,000,000 (2016: 150,000,000) ordinary shares of Rs. 10 each

Issued, subscribed and paid up share capital 15

Capital reserves

Unappropriated profit

Total shareholders' equity

Non-current liabilities

Long term advances 16

Current liabilities

Trade and other payables 17

Short term borrowings 18

Unearned revenue

Current portion of long term advances

Total current liabilities

TOTAL EQUITY AND LIABILITIES

2,000,000,000

1,118,276,520 480,932,799

1,377,571,530

2,976,780,849

11,987,624

11,987,624

190,849,432

150,000,000

11,556,688

2,550,000

354,956,120

3,343,724,593

1,500,000,000

1,110,784,920 461,091,227

1,344,492,456

2,916,368,603

10,910,791

10,910,791

226,689,126

-

14,387,586

6,109,697

247,186,409

3,174,465,803

Contingencies and commitments 20

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

ASIF PEER

Chief Executive

CONDENSED INTERIM BALANCE SHEET

AEZAZ HUSSAIN

Chairman

as at 30 June 2017

10 Systems Limited

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

ASSETS

Non-current assets

Property and equipment 6

Intangibles 7

Long term investments 8

Long term deposits

Deferred taxation

Total non-current assets

Current assets

Unbilled revenue

Trade debts 9

Advances - considered good 10

Trade deposits and short term prepayments 11

Interest accrued

Other receivables 12

Short term investments 13

Tax refunds due from the Government

Cash and bank balances 14

Total current assets

TOTAL ASSETS

785,472,580 557,598,452

55,795,799

51,467,435

51,077,980

51,077,980

6,130,852

6,130,852

25,276,863

25,276,863

923,754,074

691,551,582

435,522,419

320,894,130

1,162,559,435

1,290,766,880

55,020,662

31,158,750

59,543,557

59,561,630

13,439,799

11,863,416

270,654,118

226,917,525

160,000,000

253,000,000

121,794,682

105,551,702

141,435,847

183,200,188

2,419,970,519 2,482,914,221

3,343,724,593 3,174,465,803

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

Interim Financial Reprot 13

for the six months ended 30 June 2017

30 June 30 June

2017 2016

Rupees Rupees

Profit for the period 241,078,507

252,543,532

Other comprehensive income -

-

Total comprehensive income for the period 241,078,507 252,543,532

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

Six Months Ended

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

Note

Revenue - net

Cost of sales

Gross profit

Distribution expenses

Administrative expenses

Research and development expenses

Operating profit

Other income

Other operating expenses

Finance costs

Profit before taxation

Taxation

Profit for the period

Earnings per share:

Basic earnings per share 22

Diluted earnings per share

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

CONDENSED INTERIM PROFIT AND LOSS ACCOUNTfor the six and three months ended 30 June 2017

12 Systems Limited

30 June 30 June 30 June 30 June2017 2016 2017 2016

Rupees Rupees Rupees Rupees

1,364,858,943 1,338,353,187

698,102,599

692,959,932

929,690,777

947,801,927

466,006,704

490,958,636

435,168,166 390,551,260 232,095,895 202,001,296

46,794,289

20,368,955

40,909,008

3,285,669

136,278,207 128,751,392 71,207,806 69,974,091

- 1,781,590 - (2,687,921)

183,072,496 150,901,937 112,116,814 70,571,839

252,095,670 239,649,323 119,979,081 131,429,457 32,885,669 15,640,677 28,133,240 4,531,816

284,981,339

255,290,000

148,112,321

135,961,273

37,074,557

-

37,074,557

-

1,579,506

774,055

1,142,937

411,557

246,327,276

254,515,945

109,894,827

135,549,716

5,248,769

1,972,413

3,048,769

(27,587)

241,078,507 252,543,532 106,846,058 135,577,303

2.27 0.96 1.22

2.26 0.95 1.22

Six Months Ended Three Months Ended

2.16

2.16

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

21

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

Interim Financial Reprot 13

for the six months ended 30 June 2017

30 June 30 June

2017 2016

Rupees Rupees

Profit for the period 241,078,507

252,543,532

Other comprehensive income -

-

Total comprehensive income for the period 241,078,507 252,543,532

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

Six Months Ended

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

Note

Revenue - net

Cost of sales

Gross profit

Distribution expenses

Administrative expenses

Research and development expenses

Operating profit

Other income

Other operating expenses

Finance costs

Profit before taxation

Taxation

Profit for the period

Earnings per share:

Basic earnings per share 22

Diluted earnings per share

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

CONDENSED INTERIM PROFIT AND LOSS ACCOUNTfor the six and three months ended 30 June 2017

12 Systems Limited

30 June 30 June 30 June 30 June2017 2016 2017 2016

Rupees Rupees Rupees Rupees

1,364,858,943 1,338,353,187

698,102,599

692,959,932

929,690,777

947,801,927

466,006,704

490,958,636

435,168,166 390,551,260 232,095,895 202,001,296

46,794,289

20,368,955

40,909,008

3,285,669

136,278,207 128,751,392 71,207,806 69,974,091

- 1,781,590 - (2,687,921)

183,072,496 150,901,937 112,116,814 70,571,839

252,095,670 239,649,323 119,979,081 131,429,457 32,885,669 15,640,677 28,133,240 4,531,816

284,981,339

255,290,000

148,112,321

135,961,273

37,074,557

-

37,074,557

-

1,579,506

774,055

1,142,937

411,557

246,327,276

254,515,945

109,894,827

135,549,716

5,248,769

1,972,413

3,048,769

(27,587)

241,078,507 252,543,532 106,846,058 135,577,303

2.27 0.96 1.22

2.26 0.95 1.22

Six Months Ended Three Months Ended

2.16

2.16

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

21

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

CO

ND

EN

SE

D I

NTE

RIM

STA

TE

ME

NT O

F C

HA

NG

ES

IN

EQ

UIT

Y

Interim Financial Reprot 15

for

the s

ix m

onth

s ended 3

0 J

une 2

017

Bala

nce

as

at

31 D

ece

mber

2015

- (

Audit

ed)

Share

iss

ued a

gain

st E

mplo

yees'

Share

Opti

on S

chem

e

Share

base

d p

aym

ents

Final

div

idend @

Rs.

1.25

per

share

for

the y

ear

ended 3

1st

Dece

mber

2015

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30 J

une 2

016

- (

Unaudit

ed)

Bala

nce

as

at

31 D

ece

mber

2016

- (

Audit

ed)

Transf

er

from

com

pensa

tion r

ese

rve t

o s

hare

pre

miu

m r

ese

rve

Share

iss

ued a

gain

st E

mplo

yees'

Share

Opti

on S

chem

e

Share

base

d p

aym

ents

Final

div

idend @

Rs.

1.86 p

er

share

for

the y

ear

ended 3

1st

Dece

mber

2016

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30 J

une 2

017

- (U

naudit

ed)

The a

nnexe

d n

ote

s fr

om

1 t

o 2

8 f

orm

an i

nte

gra

l part

of

this

condense

d i

nte

rim

financi

al

info

rmati

on.

Re

ve

nu

e r

ese

rve

Cap

ital

rese

rve

s

411,

302,

586

11

,321

,362

-

-

-

422,

623

,948

42

2,623

,948

43,0

68,4

02

7,597

,289

- - -

473

,28

9,6

39

Sh

are

cap

ital

pre

miu

m

9,25

5,4

67

4,550,1

00

-

-

13,8

05,5

67

38,4

67,

279

(43,

068,4

02)

-

12,2

44,2

83

- -

7,643,1

60

Em

plo

ye

e

com

pe

nsa

tio

n

rese

rve

1,10

6,8

08,7

60

3,

976,1

60

-

-

-

1,11

0,7

84,

920

1,

110,7

84,

920

7,49

1,600

- - -

1,11

8,2

76,5

20

Issu

ed

,

sub

scri

be

d

an

d p

aid

up

share

cap

ital

2,49

5,6

27,4

37

15,2

97,5

22

4,550,1

00

(138

,848

,114

)

252,

543

,532

2,629

,170

,477

2,9

16,3

68

,60

3 -

15,0

88

,88

9

12,2

44,2

83

(20

7,999,4

33)

241,

078

,50

7

2,9

76,7

80

,849

Ru

pe

es

Tota

l

968,2

60,6

24

- -

(138

,848

,114

)

252,

543

,532

1,081,

956,0

42

1,34

4,49

2,45

6

- -

(207,

999,

433)

241,

078

,507

1,377

,571

,530

Un

ap

pro

pri

ate

d

pro

fit

Ru

pe

es

Ru

pe

es

Ru

pe

es

Ru

pe

es

AE

ZA

Z H

US

SA

IN

Chair

man

AS

IF P

EE

R

Chie

f Exe

cuti

ve

CONDENSED INTERIM CASH FLOW STATEMENT

14 Systems Limited

for the six months ended 30 June 2017

CASH FLOWS FROM OPERATING ACTIVITIES

Net cash generated from / (used in) operations

Finance costs paid

Taxes paid

Net cash flows from / (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment

Development expenditure

Proceeds from the disposal of property and equipment

Purchase / (disposal) of short term investments - net

Profit received on bank deposits

Net cash flows (used in) / from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of share options

Increase in short term borrowings

Dividend paid

Increase / (decrease) in long term advances

Net cash flows used in financing activities

Net (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at closing of the period

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

Note 2017 2016

Rupees Rupees

24 205,795,576

(91,404,464)

(1,579,506) (774,055)

(21,491,749)

(29,424,646)

(23,071,255) (30,198,701)

182,724,321 (121,603,165)

(243,956,841) (111,213,777)

(16,887,688) (12,733,160)

(12,556,203) 2,955,805

93,000,000 432,799,398 1,305,478 2,436,539

(179,095,254)

314,244,805

15,088,889

15,297,522

150,000,000

110,000,000

(207,999,433)

(138,848,114)

(2,482,864)

3,994,528

(45,393,408)

(9,556,064)

(41,764,341)

183,085,576

183,200,188 144,644,586

141,435,847 327,730,162

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MU

HA

MM

AD

KH

UR

RA

M I

QA

BL

Chie

f Fi

nanci

al O

ffic

er

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

CO

ND

EN

SE

D I

NTE

RIM

STA

TE

ME

NT O

F C

HA

NG

ES

IN

EQ

UIT

Y

Interim Financial Reprot 15

for

the s

ix m

onth

s ended 3

0 J

une 2

017

Bala

nce

as

at

31 D

ece

mber

2015

- (

Audit

ed)

Share

iss

ued a

gain

st E

mplo

yees'

Share

Opti

on S

chem

e

Share

base

d p

aym

ents

Final

div

idend @

Rs.

1.25

per

share

for

the y

ear

ended 3

1st

Dece

mber

2015

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30 J

une 2

016

- (

Unaudit

ed)

Bala

nce

as

at

31 D

ece

mber

2016

- (

Audit

ed)

Transf

er

from

com

pensa

tion r

ese

rve t

o s

hare

pre

miu

m r

ese

rve

Share

iss

ued a

gain

st E

mplo

yees'

Share

Opti

on S

chem

e

Share

base

d p

aym

ents

Final

div

idend @

Rs.

1.86 p

er

share

for

the y

ear

ended 3

1st

Dece

mber

2016

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30 J

une 2

017

- (U

naudit

ed)

The a

nnexe

d n

ote

s fr

om

1 t

o 2

8 f

orm

an i

nte

gra

l part

of

this

condense

d i

nte

rim

financi

al

info

rmati

on.

Re

ve

nu

e r

ese

rve

Cap

ital

rese

rve

s

411,

302,

586

11

,321

,362

-

-

-

422,

623

,948

42

2,623

,948

43,0

68,4

02

7,597

,289

- - -

473

,28

9,6

39

Sh

are

cap

ital

pre

miu

m

9,25

5,4

67

4,550,1

00

-

-

13,8

05,5

67

38,4

67,

279

(43,

068,4

02)

-

12,2

44,2

83

- -

7,643,1

60

Em

plo

ye

e

com

pe

nsa

tio

n

rese

rve

1,10

6,8

08,7

60

3,

976,1

60

-

-

-

1,11

0,7

84,

920

1,

110,7

84,

920

7,49

1,600

- - -

1,11

8,2

76,5

20

Issu

ed

,

sub

scri

be

d

an

d p

aid

up

share

cap

ital

2,49

5,6

27,4

37

15,2

97,5

22

4,550,1

00

(138

,848

,114

)

252,

543

,532

2,629

,170

,477

2,9

16,3

68

,60

3 -

15,0

88

,88

9

12,2

44,2

83

(20

7,999,4

33)

241,

078

,50

7

2,9

76,7

80

,849

Ru

pe

es

Tota

l

968,2

60,6

24

- -

(138

,848

,114

)

252,

543

,532

1,081,

956,0

42

1,34

4,49

2,45

6

- -

(207,

999,

433)

241,

078

,507

1,377

,571

,530

Un

ap

pro

pri

ate

d

pro

fit

Ru

pe

es

Ru

pe

es

Ru

pe

es

Ru

pe

es

AE

ZA

Z H

US

SA

IN

Chair

man

AS

IF P

EE

R

Chie

f Exe

cuti

ve

CONDENSED INTERIM CASH FLOW STATEMENT

14 Systems Limited

for the six months ended 30 June 2017

CASH FLOWS FROM OPERATING ACTIVITIES

Net cash generated from / (used in) operations

Finance costs paid

Taxes paid

Net cash flows from / (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment

Development expenditure

Proceeds from the disposal of property and equipment

Purchase / (disposal) of short term investments - net

Profit received on bank deposits

Net cash flows (used in) / from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of share options

Increase in short term borrowings

Dividend paid

Increase / (decrease) in long term advances

Net cash flows used in financing activities

Net (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at closing of the period

The annexed notes from 1 to 28 form an integral part of this condensed interim financial information.

Note 2017 2016

Rupees Rupees

24 205,795,576

(91,404,464)

(1,579,506) (774,055)

(21,491,749)

(29,424,646)

(23,071,255) (30,198,701)

182,724,321 (121,603,165)

(243,956,841) (111,213,777)

(16,887,688) (12,733,160)

(12,556,203) 2,955,805

93,000,000 432,799,398 1,305,478 2,436,539

(179,095,254)

314,244,805

15,088,889

15,297,522

150,000,000

110,000,000

(207,999,433)

(138,848,114)

(2,482,864)

3,994,528

(45,393,408)

(9,556,064)

(41,764,341)

183,085,576

183,200,188 144,644,586

141,435,847 327,730,162

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MU

HA

MM

AD

KH

UR

RA

M I

QA

BL

Chie

f Fi

nanci

al O

ffic

er

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

Interim Financial Reprot 17

The adoption of the above amendment to accounting standards did not have any material effect on the

condensed interim financial information.

5 ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of condensed interim financial information requires management to make judgments,

estimates and assumptions that affect the application of accounting policies and reported amount of

assets and liabilities, incomes and expenses. Actual results may differ from these estimates. The

significant judgments made by management in applying the Company's accounting policies and the key

sources of estimation are the same as those that applied to the financial statements for the year ended 31

December 2016.

Note

6. PRPOERTY AND EQUIPMENT

Opening balance - net book value

Additions during the period / year - cost 6.1

Less:

Disposals during the period / year 6.2

Depreciation during the period / year

Book value at the end of the period / year

6.1 Additions during the period/year-cost

Computers

Computer equipment and installations

Other equipment and installations

Furniture and fittings

O�ce equipment

Vehicles

Project assets

Mobile sets

Capital work in progress

Un-audited Audited

30 June 31 December

2017 2016

557,598,452 359,204,912

269,069,247 281,640,741

826,667,699 640,845,653

7,318,420 10,606,471

33,876,699 72,640,730

785,472,580 557,598,452

5,725,481

21,208,723

4,854,345

4,407,210

772,645

1,170,889

562,500

1,280,747

1,869,718

5,172,978

13,482,500

31,139,108

-

1,353,000

-

991,774

241,802,058

214,916,312

269,069,247 281,640,741

Rupees Rupees

1. THE COMPANY AND ITS OPERATIONS

1.1 The Company is a public limited Company incorporated in Pakistan under the repealed 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 registered office of the Company is situated at

Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.

1.2 This financial information is the separate financial information of the company in which investment in

subsidiary is stated at cost less impairment losses, if any. The condensed interim consolidated financial

statements are prepared separately.

2. STATEMENT OF COMPLIANCE

2.1 During the year, the Companies Act 2017 (the Act) has been promulgated with effect from 30 May 2017.

However, Securities and Exchange Commission of Pakistan vide its circular no.17 of 2017 dated July 20, 2017

communicated that the companies whose financial year closes on or before June 30, 2017 shall prepare

their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984.

2.2 Accordingly, these unconsolidated condensed interim financial information of the Company for the six

months period ended 30 June 2017 has been prepared in accordance with the requirements of the

International Accounting Standard 34 - Interim Financial Reporting as are notified under the repealed

Companies Ordinance, 1984, provisions of and directives issued under the repealed Companies

Ordinance,1984. In case requirements differ, the provisions or directives of the repealed Companies

Ordinance, 1984 shall prevail.

2.3 This is condensed interim financial information is un-audited and is being submitted to shareholders, as

required by section 245 of the Companies ordinance, 1984.

3 BASIS OF PREPARATION

3.1 These unconsolidated condensed interim financial information of the Company for the six months period

ended 30 June 2017 has been prepared in accordance with the requirements of the International

Accounting Standard 34 - Interim Financial Reporting as are notified under the repealed Companies

Ordinance, 1984, provisions of and directives issued under the repealed Companies Ordinance,1984.

3.2 This condensed interim financial information does not include all the information and disclosures required

in annual financial statements, and should be read in conjunction with the Company's annual financial

statements as at 31 December 2016.

3.3 This condensed interim financial statements have been prepared under the historical cost convention.

4 ACCOUNTING POLICIES

The accounting policies adopted for the preparation of this condensed interim financial information are

the same as those applied in the preparation of the preceding annual published financial statements of

the Company for the year ended 31 December 2016 except as follows:

The Company has adopted the following standards and amendment to IFRSs which became effective for

the current period:

IFRS 7-Financial Instruments: Disclosures - Disclosure Initiative - (Amendment)

IAS 12 -Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses (Amendments)

SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

16 Systems Limited

for the six months ended 30 June 2017

Interim Financial Reprot 17

The adoption of the above amendment to accounting standards did not have any material effect on the

condensed interim financial information.

5 ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of condensed interim financial information requires management to make judgments,

estimates and assumptions that affect the application of accounting policies and reported amount of

assets and liabilities, incomes and expenses. Actual results may differ from these estimates. The

significant judgments made by management in applying the Company's accounting policies and the key

sources of estimation are the same as those that applied to the financial statements for the year ended 31

December 2016.

Note

6. PRPOERTY AND EQUIPMENT

Opening balance - net book value

Additions during the period / year - cost 6.1

Less:

Disposals during the period / year 6.2

Depreciation during the period / year

Book value at the end of the period / year

6.1 Additions during the period/year-cost

Computers

Computer equipment and installations

Other equipment and installations

Furniture and fittings

O�ce equipment

Vehicles

Project assets

Mobile sets

Capital work in progress

Un-audited Audited

30 June 31 December

2017 2016

557,598,452 359,204,912

269,069,247 281,640,741

826,667,699 640,845,653

7,318,420 10,606,471

33,876,699 72,640,730

785,472,580 557,598,452

5,725,481

21,208,723

4,854,345

4,407,210

772,645

1,170,889

562,500

1,280,747

1,869,718

5,172,978

13,482,500

31,139,108

-

1,353,000

-

991,774

241,802,058

214,916,312

269,069,247 281,640,741

Rupees Rupees

1. THE COMPANY AND ITS OPERATIONS

1.1 The Company is a public limited Company incorporated in Pakistan under the repealed 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 registered office of the Company is situated at

Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.

1.2 This financial information is the separate financial information of the company in which investment in

subsidiary is stated at cost less impairment losses, if any. The condensed interim consolidated financial

statements are prepared separately.

2. STATEMENT OF COMPLIANCE

2.1 During the year, the Companies Act 2017 (the Act) has been promulgated with effect from 30 May 2017.

However, Securities and Exchange Commission of Pakistan vide its circular no.17 of 2017 dated July 20, 2017

communicated that the companies whose financial year closes on or before June 30, 2017 shall prepare

their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984.

2.2 Accordingly, these unconsolidated condensed interim financial information of the Company for the six

months period ended 30 June 2017 has been prepared in accordance with the requirements of the

International Accounting Standard 34 - Interim Financial Reporting as are notified under the repealed

Companies Ordinance, 1984, provisions of and directives issued under the repealed Companies

Ordinance,1984. In case requirements differ, the provisions or directives of the repealed Companies

Ordinance, 1984 shall prevail.

2.3 This is condensed interim financial information is un-audited and is being submitted to shareholders, as

required by section 245 of the Companies ordinance, 1984.

3 BASIS OF PREPARATION

3.1 These unconsolidated condensed interim financial information of the Company for the six months period

ended 30 June 2017 has been prepared in accordance with the requirements of the International

Accounting Standard 34 - Interim Financial Reporting as are notified under the repealed Companies

Ordinance, 1984, provisions of and directives issued under the repealed Companies Ordinance,1984.

3.2 This condensed interim financial information does not include all the information and disclosures required

in annual financial statements, and should be read in conjunction with the Company's annual financial

statements as at 31 December 2016.

3.3 This condensed interim financial statements have been prepared under the historical cost convention.

4 ACCOUNTING POLICIES

The accounting policies adopted for the preparation of this condensed interim financial information are

the same as those applied in the preparation of the preceding annual published financial statements of

the Company for the year ended 31 December 2016 except as follows:

The Company has adopted the following standards and amendment to IFRSs which became effective for

the current period:

IFRS 7-Financial Instruments: Disclosures - Disclosure Initiative - (Amendment)

IAS 12 -Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses (Amendments)

SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

16 Systems Limited

for the six months ended 30 June 2017

9.

9.1 930,335,427 1,054,908,632

236,099,491 251,404,144

1,166,434,918 1,306,312,776

10,442,367 11,179,257

(10,442,367) (11,179,257)

- -

TRADE DEBTS

Considered good - unsecured

Export

Local

Considered doubtful - unsecured

Local

Less: Provision for doubtful debts

Less: Written o� (3,875,483)

(15,545,896)

1,162,559,435 1,290,766,880

Interim Financial Reprot 19

8.

8.1

8.2

49,700,030

1,377,950

51,077,980

49,700,030

1,377,950

51,077,980

LONG TERM INVESTMENTS

Investment in Subsidiaries - at cost - unquoted

140,004 (2016: 140,004) fully paid

ordinary shares of Rs. 10/- each

50 (2016: 50) fully paid ordinary shares of AED 1000/- each

Tech Vista Systems FZ-LLC

E - Processing Systems (Private) Limited

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

8.1 This represents 63% share in Company's subsidiary E-Processing Systems (Private) Limited, a company

engaged in the business of purchase and sale of airtime and related services in Pakistan.

8.2 This represents 100% share in Company's subsidiary, TechVista Systems FZ- LLC, a company set up in Dubai

Technology and Media Free Zone Authority engaged in providing a host of services including enterprise

application integration and software development and has been registered as a limited liability company

on 03 April 2013.

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

9.1 This includes receivables from related parties i.e. Visionet Systems Incorporation and Tech Vista Systems

FZ-LLC amounting to Rs. 576.36 million (2016: Rs 646.4 million) and Rs.326.636 million (2016: Rs 366.9 million)

respectively.

18 Systems Limited

6.2 Disposals during the period / year

30 June 2017

Computers

Vehicles

31 December 2016

Computers

Computer equipment and installations

Other equipment and installations

Generator

Furniture and fittings

Vehicles

O�ce equipment

Project assets

Mobile sets

1,392,881 8,338,740 9,731,621

23,161,593

4,252,261

1,213,226

226,267

2,171,557

10,910,334

510,000

40,543

106,157

42,591,938

Accumulated

Depreciation

293,330 7,025,090 7,318,420

672,577

14,167

106,667

133,233

-

9,646,494

-

-

33,333

10,606,471

Written Down

Value

1,686,211 15,363,830 17,050,041

23,834,170

4,266,428

1,319,893

359,500

2,171,557

20,556,828

510,000

40,543

139,490

53,198,409

Cost

Rupees Rupees Rupees

7. INTANGIBLES

Opening balance - net book value

Additions during the period / year - cost

Less:

Amortization during the period / year

Book value at the end of the period / year

51,467,435

16,887,688

68,355,123

12,559,324

55,795,799

42,247,518

29,003,609

71,251,127

19,783,692

51,467,435

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

9.

9.1 930,335,427 1,054,908,632

236,099,491 251,404,144

1,166,434,918 1,306,312,776

10,442,367 11,179,257

(10,442,367) (11,179,257)

- -

TRADE DEBTS

Considered good - unsecured

Export

Local

Considered doubtful - unsecured

Local

Less: Provision for doubtful debts

Less: Written o� (3,875,483)

(15,545,896)

1,162,559,435 1,290,766,880

Interim Financial Reprot 19

8.

8.1

8.2

49,700,030

1,377,950

51,077,980

49,700,030

1,377,950

51,077,980

LONG TERM INVESTMENTS

Investment in Subsidiaries - at cost - unquoted

140,004 (2016: 140,004) fully paid

ordinary shares of Rs. 10/- each

50 (2016: 50) fully paid ordinary shares of AED 1000/- each

Tech Vista Systems FZ-LLC

E - Processing Systems (Private) Limited

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

8.1 This represents 63% share in Company's subsidiary E-Processing Systems (Private) Limited, a company

engaged in the business of purchase and sale of airtime and related services in Pakistan.

8.2 This represents 100% share in Company's subsidiary, TechVista Systems FZ- LLC, a company set up in Dubai

Technology and Media Free Zone Authority engaged in providing a host of services including enterprise

application integration and software development and has been registered as a limited liability company

on 03 April 2013.

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

9.1 This includes receivables from related parties i.e. Visionet Systems Incorporation and Tech Vista Systems

FZ-LLC amounting to Rs. 576.36 million (2016: Rs 646.4 million) and Rs.326.636 million (2016: Rs 366.9 million)

respectively.

18 Systems Limited

6.2 Disposals during the period / year

30 June 2017

Computers

Vehicles

31 December 2016

Computers

Computer equipment and installations

Other equipment and installations

Generator

Furniture and fittings

Vehicles

O�ce equipment

Project assets

Mobile sets

1,392,881 8,338,740 9,731,621

23,161,593

4,252,261

1,213,226

226,267

2,171,557

10,910,334

510,000

40,543

106,157

42,591,938

Accumulated

Depreciation

293,330 7,025,090 7,318,420

672,577

14,167

106,667

133,233

-

9,646,494

-

-

33,333

10,606,471

Written Down

Value

1,686,211 15,363,830 17,050,041

23,834,170

4,266,428

1,319,893

359,500

2,171,557

20,556,828

510,000

40,543

139,490

53,198,409

Cost

Rupees Rupees Rupees

7. INTANGIBLES

Opening balance - net book value

Additions during the period / year - cost

Less:

Amortization during the period / year

Book value at the end of the period / year

51,467,435

16,887,688

68,355,123

12,559,324

55,795,799

42,247,518

29,003,609

71,251,127

19,783,692

51,467,435

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

14.

14.1

288,893

35,803,394

101,878,515

137,681,909

3,465,045

141,146,954

141,435,847

47,660

38,931,750

142,712,134

181,643,884

1,508,644

183,152,528

183,200,188

14.1

CASH AND BANK BALANCES

Cash in hand

Cash at bank:

Local currency:

Current accounts

Deposit accounts

Foreign currency - current accounts

These carry interest rate of 3.19% to 4% (2016: 3.29% to 4.04%) per annum.

Interim Financial Reprot 21

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

15.

15.1

111,078,492

110,680,876

1,110,784,920

1,106,808,760

749,160 397,616

7,491,600

3,976,160

111,827,652 111,078,492 1,118,276,520 1,110,784,920

ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

Reconciliation of issued, subscribed and paid-up share capital:

Balance as at 1st January

Stock options exercised

Ordinary shares of Rs. 10/- each

fully paid up as bonus shares

Ordinary shares of Rs. 10/- each fully

paid in cash 22,226,927

89,600,725

111,827,652

30 June

2017

No of Shares

222,269,270

896,007,250

1,118,276,520

30 June

2017

Rupees

22,226,927

88,851,565

111,078,492

31 December

2016

No of Shares

222,269,270

888,515,650

1,110,784,920

31 December

2016

Rupees

30 June

2017

No of Shares

30 June

2017

Rupees

31 December

2016

No of Shares

31 December

2016

Rupees

Un-audited Audited

10.

11.

11.1

ADVANCES - considered good

Advances- considered good

against salary

against expenses

To suppliers-against goods

TRADE DEPOSITS AND SHORT TERM PREPAYMENTS

Security deposits

Prepayments

2,869,408

14,163,134

17,032,542

37,988,120

55,020,662

31,667,050

27,876,507

59,543,557

2,160,096

20,605,249

22,765,345

8,393,405

31,158,750

32,693,991

26,867,639

59,561,630

11.1 This represents interest free security bid bonds deposited with customers.

12.

6,894,277

2,593,326

107,139,351

76,552,155

156,620,490

147,772,044

270,654,118 226,917,525

13.

OTHER RECEIVABLES

These represent receivables from the following related parties:

Considered good - unsecured

Visionet Systems Incorporation - USA

E-processing Systems (Private) Limited

Tech Vista Systems FZ LLC - UAE

SHORT TERM INVESTMENTS

Term deposit receipts 13.1 160,000,000 253,000,000

20 Systems Limited

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

13.1 These carry interest at the rate of 5.75% (2016: 5.85% per annum).

14.

14.1

288,893

35,803,394

101,878,515

137,681,909

3,465,045

141,146,954

141,435,847

47,660

38,931,750

142,712,134

181,643,884

1,508,644

183,152,528

183,200,188

14.1

CASH AND BANK BALANCES

Cash in hand

Cash at bank:

Local currency:

Current accounts

Deposit accounts

Foreign currency - current accounts

These carry interest rate of 3.19% to 4% (2016: 3.29% to 4.04%) per annum.

Interim Financial Reprot 21

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

15.

15.1

111,078,492

110,680,876

1,110,784,920

1,106,808,760

749,160 397,616

7,491,600

3,976,160

111,827,652 111,078,492 1,118,276,520 1,110,784,920

ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL

Reconciliation of issued, subscribed and paid-up share capital:

Balance as at 1st January

Stock options exercised

Ordinary shares of Rs. 10/- each

fully paid up as bonus shares

Ordinary shares of Rs. 10/- each fully

paid in cash 22,226,927

89,600,725

111,827,652

30 June

2017

No of Shares

222,269,270

896,007,250

1,118,276,520

30 June

2017

Rupees

22,226,927

88,851,565

111,078,492

31 December

2016

No of Shares

222,269,270

888,515,650

1,110,784,920

31 December

2016

Rupees

30 June

2017

No of Shares

30 June

2017

Rupees

31 December

2016

No of Shares

31 December

2016

Rupees

Un-audited Audited

10.

11.

11.1

ADVANCES - considered good

Advances- considered good

against salary

against expenses

To suppliers-against goods

TRADE DEPOSITS AND SHORT TERM PREPAYMENTS

Security deposits

Prepayments

2,869,408

14,163,134

17,032,542

37,988,120

55,020,662

31,667,050

27,876,507

59,543,557

2,160,096

20,605,249

22,765,345

8,393,405

31,158,750

32,693,991

26,867,639

59,561,630

11.1 This represents interest free security bid bonds deposited with customers.

12.

6,894,277

2,593,326

107,139,351

76,552,155

156,620,490

147,772,044

270,654,118 226,917,525

13.

OTHER RECEIVABLES

These represent receivables from the following related parties:

Considered good - unsecured

Visionet Systems Incorporation - USA

E-processing Systems (Private) Limited

Tech Vista Systems FZ LLC - UAE

SHORT TERM INVESTMENTS

Term deposit receipts 13.1 160,000,000 253,000,000

20 Systems Limited

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

13.1 These carry interest at the rate of 5.75% (2016: 5.85% per annum).

Interim Financial Reprot 23

2017 2016

Revenue - Net 920,499,835 821,940,545 181,920,643

152,143,471

262,438,465

364,269,171

1,364,858,943

1,338,353,187

Cost of sales (566,853,340) (474,982,240) (142,868,194)

(137,996,618)

(219,969,243)

(334,823,069)

(929,690,777)

(947,801,927)

Gross profit 353,646,495 346,958,305 39,052,449

14,146,853

42,469,222

29,446,102 435,168,166 390,551,260

Distribution expenses (1,451,188) (1,416,546) (31,979,675) (1,590,484) (13,363,426) (17,361,925) (46,794,289) (20,368,955)

Research and development expenses - (457,171) - (624,831) - (699,589) - (1,781,590)

Administrative expenses (97,454,405) (84,901,196) (19,078,259) (15,554,977) (19,745,543) (28,295,219) (136,278,207) (128,751,392)

(98,905,593) (86,774,913) (51,057,934) (17,770,292) (33,108,969) (46,356,733) (183,072,496) (150,901,937)

Profit / (loss) before taxation and

Unallocated income and expenses 254,740,902 260,183,392 (12,005,485) (3,623,439) 9,360,253 (16,910,631) 252,095,670 239,649,323

Rupees

North America Middle East Pakistan Total

Un-audited

Six Months Ended

30 June

Rupees

2017 2016

Rupees

Un-audited

Six Months Ended

30 June

Rupees

2017 2016

Rupees

Un-audited

Six Months Ended

30 June

Rupees

2017 2016

Rupees

Un-audited

Six Months Ended

30 June

Rupees

Unallocated income and expenses:

Other operating expenses (37,074,557)

Other income 32,885,669

Finance cost (1,579,506)

(5,768,394)

Profit before taxation 246,327,276

Taxation 5,248,769

Profit for the year 241,078,507

-

15,640,677 (774,055)

14,866,622

254,515,945

1,972,413

252,543,532

2017 2016

Rupees Rupees

20. CONTINGENCIES AND COMMITMENTS

Contingencies

There is no significant change in the contigencies since the date of preceding published annual financial

statements.

Commitments:

20.1 Guarantees issued by the financial institutions on behalf of the Company amount to Rs. 211.369 (2016: Rs.

199.9) million.

20.2 Commitments include capital commitments for construction of building of the Company amounting to Rs.

52.34 (2016: 427.6) million.

22 Systems Limited

16. LONG TERM ADVANCES

This represents advances received from staff and will be adjusted as per Company's car policy against sale

of vehicles.

18. SHORT TERM BORROWINGS

This represents export running finance ERF II facility obtained from Habib Bank Limited. The facility has a

limit of Rs. 150 million for working capital requirement and carries interest rate at State Bank of Pakistan

(SBP) rate for ERF + 1% per annum. The facility is mainly secured alongwith letter of guarantee facility of Rs.

150 million by way of first charge over present and future current and fixed assets of the Company and

collateral of land and building to the effect of Rs. 400 million each.

19. OPERATING SEGMENT INFORMATION

Geographical segments

For management purposes, the Systems Limited 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.

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

17. TRADE AND OTHER PAYABLES

Creditors

Advance from customers

Retention Money

Accrued liabilities

Withholding income tax payable

Provident fund payable

Provision for Worker's Welfare Fund

Sales tax payable

Unclaimed dividend

115,265,645

4,035,271

335,116

67,544,408

1,215,257

-

-

-

2,453,735

190,849,432

14,752,641

3,759,560

11,604,035

152,684,704

6,913,335

10,345,091

17,930,514

5,007,552

3,691,694

226,689,126

Un-audited

30 June 30 June

Note 2017 2016

Rupees Rupees

21. OTHER OPERATING EXPENSES

Provision for doubtful debts

Unbilled and bad debt written-o�

840,484

36,234,073

37,074,557

-

-

-

Un-audited

Interim Financial Reprot 23

2017 2016

Revenue - Net 920,499,835 821,940,545 181,920,643

152,143,471

262,438,465

364,269,171

1,364,858,943

1,338,353,187

Cost of sales (566,853,340) (474,982,240) (142,868,194)

(137,996,618)

(219,969,243)

(334,823,069)

(929,690,777)

(947,801,927)

Gross profit 353,646,495 346,958,305 39,052,449

14,146,853

42,469,222

29,446,102 435,168,166 390,551,260

Distribution expenses (1,451,188) (1,416,546) (31,979,675) (1,590,484) (13,363,426) (17,361,925) (46,794,289) (20,368,955)

Research and development expenses - (457,171) - (624,831) - (699,589) - (1,781,590)

Administrative expenses (97,454,405) (84,901,196) (19,078,259) (15,554,977) (19,745,543) (28,295,219) (136,278,207) (128,751,392)

(98,905,593) (86,774,913) (51,057,934) (17,770,292) (33,108,969) (46,356,733) (183,072,496) (150,901,937)

Profit / (loss) before taxation and

Unallocated income and expenses 254,740,902 260,183,392 (12,005,485) (3,623,439) 9,360,253 (16,910,631) 252,095,670 239,649,323

Rupees

North America Middle East Pakistan Total

Un-audited

Six Months Ended

30 June

Rupees

2017 2016

Rupees

Un-audited

Six Months Ended

30 June

Rupees

2017 2016

Rupees

Un-audited

Six Months Ended

30 June

Rupees

2017 2016

Rupees

Un-audited

Six Months Ended

30 June

Rupees

Unallocated income and expenses:

Other operating expenses (37,074,557)

Other income 32,885,669

Finance cost (1,579,506)

(5,768,394)

Profit before taxation 246,327,276

Taxation 5,248,769

Profit for the year 241,078,507

-

15,640,677 (774,055)

14,866,622

254,515,945

1,972,413

252,543,532

2017 2016

Rupees Rupees

20. CONTINGENCIES AND COMMITMENTS

Contingencies

There is no significant change in the contigencies since the date of preceding published annual financial

statements.

Commitments:

20.1 Guarantees issued by the financial institutions on behalf of the Company amount to Rs. 211.369 (2016: Rs.

199.9) million.

20.2 Commitments include capital commitments for construction of building of the Company amounting to Rs.

52.34 (2016: 427.6) million.

22 Systems Limited

16. LONG TERM ADVANCES

This represents advances received from staff and will be adjusted as per Company's car policy against sale

of vehicles.

18. SHORT TERM BORROWINGS

This represents export running finance ERF II facility obtained from Habib Bank Limited. The facility has a

limit of Rs. 150 million for working capital requirement and carries interest rate at State Bank of Pakistan

(SBP) rate for ERF + 1% per annum. The facility is mainly secured alongwith letter of guarantee facility of Rs.

150 million by way of first charge over present and future current and fixed assets of the Company and

collateral of land and building to the effect of Rs. 400 million each.

19. OPERATING SEGMENT INFORMATION

Geographical segments

For management purposes, the Systems Limited 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.

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

17. TRADE AND OTHER PAYABLES

Creditors

Advance from customers

Retention Money

Accrued liabilities

Withholding income tax payable

Provident fund payable

Provision for Worker's Welfare Fund

Sales tax payable

Unclaimed dividend

115,265,645

4,035,271

335,116

67,544,408

1,215,257

-

-

-

2,453,735

190,849,432

14,752,641

3,759,560

11,604,035

152,684,704

6,913,335

10,345,091

17,930,514

5,007,552

3,691,694

226,689,126

Un-audited

30 June 30 June

Note 2017 2016

Rupees Rupees

21. OTHER OPERATING EXPENSES

Provision for doubtful debts

Unbilled and bad debt written-o�

840,484

36,234,073

37,074,557

-

-

-

Un-audited

Interim Financial Reprot 25

22. EARNINGS PER SHARE

2017 2016 2017 2016

Basic earnings per share

Profit for the period 241,078,507

252,543,532

106,846,058

106,846,058

135,577,303

Weighted-average number of ordinary shares

outstanding during the period 111,413,751

111,023,630

111,745,327

111,078,492

Basic - in Rupees 2.16 2.27 0.96 1.22

Three Month EndedSix Month Ended

24 Systems Limited

Diluted earnings per share

Profit for the period 241,078,507 252,543,532 135,577,303

Weighted-average number of ordinary

shares (basic) 111,413,751 111,023,630 111,745,327 111,078,492

E�ect of share options 210,965

811,500

237,032

413,884

111,624,716

111,835,130

111,982,359

111,492,376

Diluted - in Rupees 2.16 2.26 0.95 1.22

Subsidiary 30,587,197 53,557,127

Interest income 1,966,102

624,352

32,553,299

54,181,479

Sales 164,591,417

127,389,018

Payment for

expenses8,848,446

41,479,407

173,439,863 168,868,425

Payment for

expenses

SubsidiaryTech Vista Systems FZ - LLC

E Processing Systems (Pvt.) Ltd.

23. 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:

Related party RelationshipNature of

transactions 2017 2016

30 June

Un-audited

Rupees

Six Months Ended

Rupees

Sales 899,311,716

799,124,973

Payment for

expenses4,300,951 5,431,134

903,612,667 804,556,107

Provident fund Employee benefit plan Contributions 43,455,174 37,047,292

Visionet Systems Incorporation Common directorship

Interim Financial Reprot 25

22. EARNINGS PER SHARE

2017 2016 2017 2016

Basic earnings per share

Profit for the period 241,078,507

252,543,532

106,846,058

106,846,058

135,577,303

Weighted-average number of ordinary shares

outstanding during the period 111,413,751

111,023,630

111,745,327

111,078,492

Basic - in Rupees 2.16 2.27 0.96 1.22

Three Month EndedSix Month Ended

24 Systems Limited

Diluted earnings per share

Profit for the period 241,078,507 252,543,532 135,577,303

Weighted-average number of ordinary

shares (basic) 111,413,751 111,023,630 111,745,327 111,078,492

E�ect of share options 210,965

811,500

237,032

413,884

111,624,716

111,835,130

111,982,359

111,492,376

Diluted - in Rupees 2.16 2.26 0.95 1.22

Subsidiary 30,587,197 53,557,127

Interest income 1,966,102

624,352

32,553,299

54,181,479

Sales 164,591,417

127,389,018

Payment for

expenses8,848,446

41,479,407

173,439,863 168,868,425

Payment for

expenses

SubsidiaryTech Vista Systems FZ - LLC

E Processing Systems (Pvt.) Ltd.

23. 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:

Related party RelationshipNature of

transactions 2017 2016

30 June

Un-audited

Rupees

Six Months Ended

Rupees

Sales 899,311,716

799,124,973

Payment for

expenses4,300,951 5,431,134

903,612,667 804,556,107

Provident fund Employee benefit plan Contributions 43,455,174 37,047,292

Visionet Systems Incorporation Common directorship

Interim Financial Reprot 2726 Systems Limited

25. FINANCIAL RISK MANAGEMENT

25.1 Financial risk factors

There is no change in the company's objectives, policies, procedures for measuring and managing the

financial risks including capital management risk, since the preceding annual financial year ended 31

December 2016.

25.2 Fair values of financial assets and liabilities

The carrying values of all financial assets and liabilities reflected in financial statements approximate to

their fair values. Fair value is determined on the basis of objective evidence at each reporting date.

Accordingly, detailed disclosure with reference to fair value has not been given in this condensed interim

financial information.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial

instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are

observable either, directly or indirectly

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not

based on observable market data

- There were no financial assets and liabilities measured at fair value as at 30 June 2017.

- During the six month period ended 30 June 2017, there were no transfers between Level 1 and Level 2 fair

value measurements.

- There were no financial assets and liabilities measured at fair value as at 31 December 2016.

24.

254,515,945

35,191,550

9,318,658

(1,469,520)

4,550,100

774,055

(2,035,732)

(2,436,539)

(7,905,210)

(1,747,534)

34,239,828

288,755,773

(20,704,863)

(111,559,013)

(20,051,895)

(60,446,685)

19,022,175

(79,486,662)

(273,226,943)

(106,933,294)

(380,160,237)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustments for:

Depreciation on property and equipment

Amortization of intangibles

Provision for bad debts

Bad debts - written o�

Share based payment expense

Finance costs

Exchange gain - net

Profit on bank deposits

Gain on short term investments

Gain on disposal of property and equipment

Profit before working capital changes

E�ect on cash flow due to working capital changes

(Increase) / decrease in current assets:

Unbilled revenue - net

Trade debts

Advances

Trade deposits and short term prepayments

Interest accrued

Other receivables

(Decrease) / increase in current liabilities:

Trade and other payables

Net cash generated from / (used in) operations

246,327,276

33,876,699

12,559,324

840,484

36,234,073

12,244,283

1,579,506

(610,210)

(1,305,478)

(5,632,814)

(5,237,783)

84,548,084

330,875,360

(117,459,187)

91,743,098

(23,861,912)

18,073

4,056,431

(43,736,593)

(89,240,090)

(35,839,694)

(125,079,784)

205,795,576 (91,404,464)

2017 2016

30 June

Un-audited

Rupees

Six Months Ended

Rupees

-

Interim Financial Reprot 2726 Systems Limited

25. FINANCIAL RISK MANAGEMENT

25.1 Financial risk factors

There is no change in the company's objectives, policies, procedures for measuring and managing the

financial risks including capital management risk, since the preceding annual financial year ended 31

December 2016.

25.2 Fair values of financial assets and liabilities

The carrying values of all financial assets and liabilities reflected in financial statements approximate to

their fair values. Fair value is determined on the basis of objective evidence at each reporting date.

Accordingly, detailed disclosure with reference to fair value has not been given in this condensed interim

financial information.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial

instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are

observable either, directly or indirectly

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not

based on observable market data

- There were no financial assets and liabilities measured at fair value as at 30 June 2017.

- During the six month period ended 30 June 2017, there were no transfers between Level 1 and Level 2 fair

value measurements.

- There were no financial assets and liabilities measured at fair value as at 31 December 2016.

24.

254,515,945

35,191,550

9,318,658

(1,469,520)

4,550,100

774,055

(2,035,732)

(2,436,539)

(7,905,210)

(1,747,534)

34,239,828

288,755,773

(20,704,863)

(111,559,013)

(20,051,895)

(60,446,685)

19,022,175

(79,486,662)

(273,226,943)

(106,933,294)

(380,160,237)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustments for:

Depreciation on property and equipment

Amortization of intangibles

Provision for bad debts

Bad debts - written o�

Share based payment expense

Finance costs

Exchange gain - net

Profit on bank deposits

Gain on short term investments

Gain on disposal of property and equipment

Profit before working capital changes

E�ect on cash flow due to working capital changes

(Increase) / decrease in current assets:

Unbilled revenue - net

Trade debts

Advances

Trade deposits and short term prepayments

Interest accrued

Other receivables

(Decrease) / increase in current liabilities:

Trade and other payables

Net cash generated from / (used in) operations

246,327,276

33,876,699

12,559,324

840,484

36,234,073

12,244,283

1,579,506

(610,210)

(1,305,478)

(5,632,814)

(5,237,783)

84,548,084

330,875,360

(117,459,187)

91,743,098

(23,861,912)

18,073

4,056,431

(43,736,593)

(89,240,090)

(35,839,694)

(125,079,784)

205,795,576 (91,404,464)

2017 2016

30 June

Un-audited

Rupees

Six Months Ended

Rupees

-

Interim Financial Reprot 2928 Systems Limited

Rupees

Financial liabilities as per balance sheet

Trade and other payables 185,598,904

30 June 2017

Financial Liabilities

at amortized cost

Long term deposits - 6,130,852 6,130,852

Unbilled revenue - 320,894,130 320,894,130

Loans to employees - 2,160,096 2,160,096

Trade debts - 1,290,766,880 1,290,766,880

Trade deposits - 32,693,991 32,693,991

Interest accrued - 11,863,416 11,863,416

Other receivables - 226,917,525 226,917,525

Short term investments - 253,000,000 253,000,000

Cash and bank balances 183,200,188 - 183,200,188

183,200,188 2,144,426,890 2,327,627,078

Financial assets as per balance

sheet

31 December 2016

Cash and cash

equivalents

Loans and

advances Total

- 6,130,852 6,130,852

- 435,522,419 435,522,419

- 2,869,408 2,869,408

-

1,162,559,435

1,162,559,435

-

31,667,050

31,667,050

13,439,799

13,439,799

-

270,654,118

270,654,118

-

160,000,000

160,000,000

25.3 Financial instruments by categories

Financial assets as per balance sheet

Long term deposits

Unbilled revenue

Loans to employees

Trade debts

Trade deposits

Interest accrued

Other receivable

Short term investments

Cash and bank balances 141,435,847

-

141,435,847

141,435,847

2,082,843,081

2,224,278,928

30 June 2017

Rupees Rupees Rupees

Cash and cash

equivalents

Loans and

advances Total

Rupees Rupees Rupees

31 December

2016

Reclassification from component Reclassification to component

Rupees

Trade Debtor Tax refunds due from the Government 6,593,361

Rupees

Financial liabilities as per balance sheet

Trade and other payables 182,733,074

Financial Liabilities

at amortized cost

31 December 2016

26. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issue on 25 August 2017 by the Board of

Directors of the Company.

27. CORRESPONDING FIGURES

Corresponding figures have been re-arranged or re-classified where necessary for the purpose of

comparison, however no significant re-classification or re-arrangements have been made in this

condensed interim financial information.

28. GENERAL

28.1 Figures have been rounded off to the nearest rupees, unless otherwise stated.

28.2 Corresponding figures have been rearranged or reclassified, wherever necessary, for the purpose of

comparison. However, no significant reclassification has been made in these financial statements except

for the following in order to comply with requirements of International Financial Reporting Standards:

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

Interim Financial Reprot 2928 Systems Limited

Rupees

Financial liabilities as per balance sheet

Trade and other payables 185,598,904

30 June 2017

Financial Liabilities

at amortized cost

Long term deposits - 6,130,852 6,130,852

Unbilled revenue - 320,894,130 320,894,130

Loans to employees - 2,160,096 2,160,096

Trade debts - 1,290,766,880 1,290,766,880

Trade deposits - 32,693,991 32,693,991

Interest accrued - 11,863,416 11,863,416

Other receivables - 226,917,525 226,917,525

Short term investments - 253,000,000 253,000,000

Cash and bank balances 183,200,188 - 183,200,188

183,200,188 2,144,426,890 2,327,627,078

Financial assets as per balance

sheet

31 December 2016

Cash and cash

equivalents

Loans and

advances Total

- 6,130,852 6,130,852

- 435,522,419 435,522,419

- 2,869,408 2,869,408

-

1,162,559,435

1,162,559,435

-

31,667,050

31,667,050

13,439,799

13,439,799

-

270,654,118

270,654,118

-

160,000,000

160,000,000

25.3 Financial instruments by categories

Financial assets as per balance sheet

Long term deposits

Unbilled revenue

Loans to employees

Trade debts

Trade deposits

Interest accrued

Other receivable

Short term investments

Cash and bank balances 141,435,847

-

141,435,847

141,435,847

2,082,843,081

2,224,278,928

30 June 2017

Rupees Rupees Rupees

Cash and cash

equivalents

Loans and

advances Total

Rupees Rupees Rupees

31 December

2016

Reclassification from component Reclassification to component

Rupees

Trade Debtor Tax refunds due from the Government 6,593,361

Rupees

Financial liabilities as per balance sheet

Trade and other payables 182,733,074

Financial Liabilities

at amortized cost

31 December 2016

26. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issue on 25 August 2017 by the Board of

Directors of the Company.

27. CORRESPONDING FIGURES

Corresponding figures have been re-arranged or re-classified where necessary for the purpose of

comparison, however no significant re-classification or re-arrangements have been made in this

condensed interim financial information.

28. GENERAL

28.1 Figures have been rounded off to the nearest rupees, unless otherwise stated.

28.2 Corresponding figures have been rearranged or reclassified, wherever necessary, for the purpose of

comparison. However, no significant reclassification has been made in these financial statements except

for the following in order to comply with requirements of International Financial Reporting Standards:

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

Condensed Interim

Consolidated Financial Information

This page has been left blank intentionally

Condensed Interim

Consolidated Financial Information

This page has been left blank intentionally

Interim Financial Reprot 33

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital

200,000,000 (2016: 150,000,000) ordinary shares of Rs. 10 each

Issued, subscribed and paid up share capital 14

Capital and reserve

Unappropriated profit

Total shareholders' equity

Non-controlling interest

Non-current liabilities

Convertible loan

Long term advances 15

Provision for gratuity

Current liabilities

Trade and other payables 16

Short term borrowings 17

Unearned revenue

Current portion of long term advances

Total current liabilities

TOTAL EQUITY & LIABILITIES

Contingencies and commitments 19

2,000,000,000

1,118,276,520

480,783,758 1,322,143,967

2,921,204,245

(23,776,155)

2,897,428,090

10,423,914

11,987,624

5,500,555

27,912,093

216,779,108

150,000,000

11,556,688

2,550,000

380,885,796

3,306,225,979

-

1,500,000,000

1,110,784,920

460,774,513 1,244,108,681

2,815,668,114

(15,568,020)

2,800,100,094

-

10,910,791

4,009,766

14,920,557

271,567,025

-

14,387,586

6,109,697

292,064,308

3,107,084,959

-

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET

32 Systems Limited

as at 30 June 2017

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

ASSETS

Non-current assets

Property and equipment 6

Intangible assets 7

Long term deposits

Deferred taxation

Total non-current assets

Current assets

Unbilled revenue

Trade debts 8

Advances - considered good 9

Trade deposits and short term prepayments 10

Interest accrued

Other receivables 11

Short term investments 12

Tax refunds due from the Government

Cash and bank balances 13

Total current assets

797,888,601

135,355,324

9,136,852

25,276,863

967,657,640

262,384,124

1,172,761,511

55,020,662

101,354,386

1,884,623

148,481,078

160,000,000

121,794,682

314,887,273

2,338,568,339

571,175,127

118,945,145

9,136,852

25,276,863

724,533,987

393,659,781

1,108,405,149

33,871,434

67,903,663

2,274,342

150,344,859

253,000,000

98,958,341

274,133,403

2,382,550,972

TOTAL ASSETS 3,306,225,979

3,107,084,959

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

Interim Financial Reprot 33

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital

200,000,000 (2016: 150,000,000) ordinary shares of Rs. 10 each

Issued, subscribed and paid up share capital 14

Capital and reserve

Unappropriated profit

Total shareholders' equity

Non-controlling interest

Non-current liabilities

Convertible loan

Long term advances 15

Provision for gratuity

Current liabilities

Trade and other payables 16

Short term borrowings 17

Unearned revenue

Current portion of long term advances

Total current liabilities

TOTAL EQUITY & LIABILITIES

Contingencies and commitments 19

2,000,000,000

1,118,276,520

480,783,758 1,322,143,967

2,921,204,245

(23,776,155)

2,897,428,090

10,423,914

11,987,624

5,500,555

27,912,093

216,779,108

150,000,000

11,556,688

2,550,000

380,885,796

3,306,225,979

-

1,500,000,000

1,110,784,920

460,774,513 1,244,108,681

2,815,668,114

(15,568,020)

2,800,100,094

-

10,910,791

4,009,766

14,920,557

271,567,025

-

14,387,586

6,109,697

292,064,308

3,107,084,959

-

CONDENSED INTERIM CONSOLIDATED BALANCE SHEET

32 Systems Limited

as at 30 June 2017

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

ASSETS

Non-current assets

Property and equipment 6

Intangible assets 7

Long term deposits

Deferred taxation

Total non-current assets

Current assets

Unbilled revenue

Trade debts 8

Advances - considered good 9

Trade deposits and short term prepayments 10

Interest accrued

Other receivables 11

Short term investments 12

Tax refunds due from the Government

Cash and bank balances 13

Total current assets

797,888,601

135,355,324

9,136,852

25,276,863

967,657,640

262,384,124

1,172,761,511

55,020,662

101,354,386

1,884,623

148,481,078

160,000,000

121,794,682

314,887,273

2,338,568,339

571,175,127

118,945,145

9,136,852

25,276,863

724,533,987

393,659,781

1,108,405,149

33,871,434

67,903,663

2,274,342

150,344,859

253,000,000

98,958,341

274,133,403

2,382,550,972

TOTAL ASSETS 3,306,225,979

3,107,084,959

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Interim Financial Reprot 35

for the half year ended 30 June 2017

Profit for the period

Other comprehensive income

Exchange di�erence on transaltion of foreign operations

Total comprehensive income for the period

Attributable to:

Equity holders of the parent

Non-controlling interest

30 June 30 June

2017 2016

Rupees Rupees

Half year Ended

277,604,364

167,673

277,772,037

282,429,851

(4,657,814)

277,772,037

229,517,399

114,244

229,631,643

231,663,912

(2,032,269)

229,631,643

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

CONDENSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT

34 Systems Limited

Note

for the half year ended 30 June 2017

30 June 30 June 30 June 30 June2017 2016 2017 2016

Rupees Rupees Rupees Rupees

Half year Ended Quarter Ended

1,682,399,849

1,185,271,966

497,127,883

42,681,500

161,231,212

-

203,912,712

293,215,171

30,021,069 323,236,240

37,074,557

2,835,021

283,326,662

5,722,298

277,604,364

282,262,178

(4,657,814)

277,604,364

2.53

2.53

1,562,677,245

1,135,148,566

427,528,679

60,412,536

146,637,883

1,781,591

208,832,010

218,696,669

14,570,115 233,266,784

-

1,776,972

231,489,812

1,972,413

229,517,399

231,549,668

(2,032,269)

229,517,399

2.09

2.07

808,594,080

582,605,405

225,988,675

19,887,032

81,647,474

(2,687,920)

98,846,586

127,142,089

3,888,531 131,030,620

-

894,188

130,136,432

(27,587)

130,164,019

131,090,257

(926,238)

130,164,019

1.18

1.18

Revenue

Cost of sales

Gross profit

Distribution cost

Administrative expenses

Research & development expenses

Operating profit

Other income

Other operating expenses

Finance cost

Profit before taxation

Taxation

Profit after taxation

Attributable to:

Equity holders of the parent

Non-controlling interest

Earnings per share:

Basic earnings per share 21

Diluted earnings per share

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

864,752,662

605,600,006

259,152,656

22,063,241

85,106,918

-

107,170,159

151,982,497

26,371,466 178,353,963

37,074,557

225,070

141,054,336

3,522,298

137,532,038

140,283,006

(2,750,968)

137,532,038

1.26

1.25

20

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Interim Financial Reprot 35

for the half year ended 30 June 2017

Profit for the period

Other comprehensive income

Exchange di�erence on transaltion of foreign operations

Total comprehensive income for the period

Attributable to:

Equity holders of the parent

Non-controlling interest

30 June 30 June

2017 2016

Rupees Rupees

Half year Ended

277,604,364

167,673

277,772,037

282,429,851

(4,657,814)

277,772,037

229,517,399

114,244

229,631,643

231,663,912

(2,032,269)

229,631,643

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

CONDENSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT

34 Systems Limited

Note

for the half year ended 30 June 2017

30 June 30 June 30 June 30 June2017 2016 2017 2016

Rupees Rupees Rupees Rupees

Half year Ended Quarter Ended

1,682,399,849

1,185,271,966

497,127,883

42,681,500

161,231,212

-

203,912,712

293,215,171

30,021,069 323,236,240

37,074,557

2,835,021

283,326,662

5,722,298

277,604,364

282,262,178

(4,657,814)

277,604,364

2.53

2.53

1,562,677,245

1,135,148,566

427,528,679

60,412,536

146,637,883

1,781,591

208,832,010

218,696,669

14,570,115 233,266,784

-

1,776,972

231,489,812

1,972,413

229,517,399

231,549,668

(2,032,269)

229,517,399

2.09

2.07

808,594,080

582,605,405

225,988,675

19,887,032

81,647,474

(2,687,920)

98,846,586

127,142,089

3,888,531 131,030,620

-

894,188

130,136,432

(27,587)

130,164,019

131,090,257

(926,238)

130,164,019

1.18

1.18

Revenue

Cost of sales

Gross profit

Distribution cost

Administrative expenses

Research & development expenses

Operating profit

Other income

Other operating expenses

Finance cost

Profit before taxation

Taxation

Profit after taxation

Attributable to:

Equity holders of the parent

Non-controlling interest

Earnings per share:

Basic earnings per share 21

Diluted earnings per share

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

864,752,662

605,600,006

259,152,656

22,063,241

85,106,918

-

107,170,159

151,982,497

26,371,466 178,353,963

37,074,557

225,070

141,054,336

3,522,298

137,532,038

140,283,006

(2,750,968)

137,532,038

1.26

1.25

20

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

CO

ND

EN

SE

D I

NTE

RIM

CO

NS

OLI

DA

TED

STA

TEM

EN

T O

F C

HA

NG

ES

IN

EQ

UIT

Y

Interim Financial Reprot 37

for

the h

alf

year

ended 3

0 J

une 2

017

Bala

nce

as

at

31 D

ece

mber

2015

(A

udit

ed)

Share

s is

sued u

nder

em

plo

yees

share

opti

on s

chem

e

Adju

stm

ent

ot

em

plo

yee c

om

pensa

tion r

ese

rve

Cash

div

idend

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30 J

une 2

016

(U

n-a

udit

ed)

Bala

nce

as

at

31 D

ece

mber

2016

(A

udit

ed)

Transf

er

from

com

pensa

tion r

ese

rve t

o s

hare

pre

miu

m r

ese

rve

Share

iss

ued a

gain

st E

mplo

yees'

Share

Opti

on S

chem

e

Share

base

d p

aym

ents

Share

iss

ued t

o N

CI again

st c

ash

Adju

stm

en o

n a

ccount

of

issu

e o

f sh

are

s to

NCI

Final div

idend @

Rs.

1.86 p

er

share

for

the y

ear

ended 3

1st

Dece

mber

2016

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Oth

er

com

pre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30

Ju

ne

20

17 (

Un

-au

dit

ed

)

The a

nnexe

d n

ote

s fr

om

1 t

o 2

7 fo

rm a

n i

nte

gra

l part

of

this

condense

d i

nte

rim

financi

al in

form

ati

on.

Cap

ital

rese

rve

2,4

13,5

74,2

01

15,2

97,

522

4,5

50

,10

0

(138

,848

,114

)

229,6

31,

643

2,5

24,2

05,3

52

2,8

00

,10

0,0

94

-

15,0

88

,88

9

12,2

44,2

83

222,2

20

-

(20

7,999,4

33)

277

,60

4,3

64

167,

673

2,8

97,

428

,090

Ru

pe

es

To

tal

(9,7

46,7

36)

- - -

(2,0

32,2

69)

(11,

779,

005)

(15,5

68,0

20)

- - -

222,

220

(3,7

72,5

41)

-

(4,6

57,

814

)

-

(23,7

76,1

55)

No

n-

con

tro

llin

g

inte

rest

Ru

pe

es

2,42

3,32

0,9

37

15,2

97,5

22

4,550,1

00

(138

,848

,114

)

231,

663,

912

2,535

,984,

357

2,815

,668,1

14

-

15,0

88,8

89

12,2

44,2

83

-

3,77

2,541

(207,

999,

433)

282,

262,

178

167,

673

2,9

21,

20

4,2

45

To

tal

eq

uit

y

att

rib

uta

ble

to

share

ho

lde

rs o

f p

are

nt

com

pan

y

Ru

pe

es

895

,921

,042

- -

(138

,848

,114

)

231,

549

,668

988,6

22,5

96

1,24

4,10

8,6

81

- - - -

3,77

2,541

(207,

999,

433)

282,

262,

178 -

1,322,1

43,9

67

Un

ap

pro

pri

ate

d

pro

fit

Ru

pe

es

33,0

82

11

4,24

4

147,

326

(316

,714

)

-

-

-

- - - -

167,

673

(149,0

41)

Fo

reig

n c

urr

en

cy

tran

salt

ion

rese

rve

Ru

pe

es

9,25

5,4

67

4,550,1

00

-

-

13,8

05,5

67

38,4

67,

279

(43,

068,4

02)

-

12,2

44,2

83

- - - - -

7,643,1

60

Em

plo

ye

e

com

pe

nsa

tio

n

rese

rve

Ru

pe

es

411,

302,

586

11,3

21,3

62

-

-

-

422,

623

,948

422,

623

,948

43,0

68,4

02

7,597

,289

-

-

-

-

-

-

473

,28

9,6

39

Sh

are

cap

ital

pre

miu

m

Ru

pe

es

1,10

6,8

08,7

60

3,97

6,1

60

-

-

-

1,11

0,7

84,

920

1,11

0,7

84,

920

-

7,49

1,600

-

-

-

-

-

1,11

8,2

76,5

20

Issu

ed

,

sub

scri

be

d

an

d p

aid

up

share

cap

ital

Ru

pe

es

Re

ve

nu

e r

ese

rve

AE

ZA

Z H

US

SA

IN

Chair

man

AS

IF P

EE

R

Chie

f Exe

cuti

ve

CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT

3 6 Systems Limited

for the half year ended 30 June 2017

Note

Rupees Rupees

23

262,617,867

(1,579,506)

(335,941)

(21,965,278)

(23,880,725)

238,737,142

(259,075,327)

(16,887,688)

(12,556,203)

93,000,000

1,305,478

(194,213,740)

15,088,889

222,220

180,587,197

10,423,914

(207,999,433)

(2,482,864)

(4,160,077)

40,363,325

390,545

274,133,403

314,887,273

(46,884,201)

(1,776,972)

(328,871)

(29,425,346)

(31,531,189)

(78,415,390)

(113,543,471)

(27,025,564)

2,955,805

(5,717,351)

432,799,398

11,494,808

2,444,058

303,407,683

15,297,522

110,000,000

(138,848,114)

3,994,528

(9,556,064)

215,436,229

114,244

193,593,856

409,144,329

CASH FLOWS FROM OPERATING ACTIVITIES

Net cash flows from/(used in) operations

Finance costs paid

Gratuity paid

Taxes paid

Net cash flows from/(used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment

Development expenditure

Proceeds from the disposal of property and equipment

Increase in long term deposits

Purchase / (disposal) of short term investments - net

Profit received on short term investment

Profit received on bank deposits

Net cash flows used in/from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of share options

Proceeds from issue of shares

Increase in short term borrowings

Proceeds from convertible loan

Dividend paid

Increase / (decrease) in long term advances

Net cash flows used in financing activities

Net (decrease) in cash and cash equivalents

E�ect of exchange translation reserve

Cash and cash equivalents at 1st January

Cash and cash equivalents at 30 June

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

(Un-audited)

30 June

2017

(Un-audited)

30 June

2016

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

MU

HA

MM

AD

KH

UR

RA

M I

QA

BL

Chie

f Fi

nanci

al O

ffic

er

CO

ND

EN

SE

D I

NTE

RIM

CO

NS

OLI

DA

TED

STA

TEM

EN

T O

F C

HA

NG

ES

IN

EQ

UIT

Y

Interim Financial Reprot 37

for

the h

alf

year

ended 3

0 J

une 2

017

Bala

nce

as

at

31 D

ece

mber

2015

(A

udit

ed)

Share

s is

sued u

nder

em

plo

yees

share

opti

on s

chem

e

Adju

stm

ent

ot

em

plo

yee c

om

pensa

tion r

ese

rve

Cash

div

idend

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30 J

une 2

016

(U

n-a

udit

ed)

Bala

nce

as

at

31 D

ece

mber

2016

(A

udit

ed)

Transf

er

from

com

pensa

tion r

ese

rve t

o s

hare

pre

miu

m r

ese

rve

Share

iss

ued a

gain

st E

mplo

yees'

Share

Opti

on S

chem

e

Share

base

d p

aym

ents

Share

iss

ued t

o N

CI again

st c

ash

Adju

stm

en o

n a

ccount

of

issu

e o

f sh

are

s to

NCI

Final div

idend @

Rs.

1.86 p

er

share

for

the y

ear

ended 3

1st

Dece

mber

2016

Tota

l co

mpre

hensi

ve i

nco

me f

or

the p

eri

od

Oth

er

com

pre

hensi

ve i

nco

me f

or

the p

eri

od

Bala

nce

as

at

30

Ju

ne

20

17 (

Un

-au

dit

ed

)

The a

nnexe

d n

ote

s fr

om

1 t

o 2

7 fo

rm a

n i

nte

gra

l part

of

this

condense

d i

nte

rim

financi

al in

form

ati

on.

Cap

ital

rese

rve

2,4

13,5

74,2

01

15,2

97,

522

4,5

50

,10

0

(138

,848

,114

)

229,6

31,

643

2,5

24,2

05,3

52

2,8

00

,10

0,0

94

-

15,0

88

,88

9

12,2

44,2

83

222,2

20

-

(20

7,999,4

33)

277

,60

4,3

64

167,

673

2,8

97,

428

,090

Ru

pe

es

To

tal

(9,7

46,7

36)

- - -

(2,0

32,2

69)

(11,

779,

005)

(15,5

68,0

20)

- - -

222,

220

(3,7

72,5

41)

-

(4,6

57,

814

)

-

(23,7

76,1

55)

No

n-

con

tro

llin

g

inte

rest

Ru

pe

es

2,42

3,32

0,9

37

15,2

97,5

22

4,550,1

00

(138

,848

,114

)

231,

663,

912

2,535

,984,

357

2,815

,668,1

14

-

15,0

88,8

89

12,2

44,2

83

-

3,77

2,541

(207,

999,

433)

282,

262,

178

167,

673

2,9

21,

20

4,2

45

To

tal

eq

uit

y

att

rib

uta

ble

to

share

ho

lde

rs o

f p

are

nt

com

pan

y

Ru

pe

es

895

,921

,042

- -

(138

,848

,114

)

231,

549

,668

988,6

22,5

96

1,24

4,10

8,6

81

- - - -

3,77

2,541

(207,

999,

433)

282,

262,

178 -

1,322,1

43,9

67

Un

ap

pro

pri

ate

d

pro

fit

Ru

pe

es

33,0

82

11

4,24

4

147,

326

(316

,714

)

-

-

-

- - - -

167,

673

(149,0

41)

Fo

reig

n c

urr

en

cy

tran

salt

ion

rese

rve

Ru

pe

es

9,25

5,4

67

4,550,1

00

-

-

13,8

05,5

67

38,4

67,

279

(43,

068,4

02)

-

12,2

44,2

83

- - - - -

7,643,1

60

Em

plo

ye

e

com

pe

nsa

tio

n

rese

rve

Ru

pe

es

411,

302,

586

11,3

21,3

62

-

-

-

422,

623

,948

422,

623

,948

43,0

68,4

02

7,597

,289

-

-

-

-

-

-

473

,28

9,6

39

Sh

are

cap

ital

pre

miu

m

Ru

pe

es

1,10

6,8

08,7

60

3,97

6,1

60

-

-

-

1,11

0,7

84,

920

1,11

0,7

84,

920

-

7,49

1,600

-

-

-

-

-

1,11

8,2

76,5

20

Issu

ed

,

sub

scri

be

d

an

d p

aid

up

share

cap

ital

Ru

pe

es

Re

ve

nu

e r

ese

rve

AE

ZA

Z H

US

SA

IN

Chair

man

AS

IF P

EE

R

Chie

f Exe

cuti

ve

CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT

3 6 Systems Limited

for the half year ended 30 June 2017

Note

Rupees Rupees

23

262,617,867

(1,579,506)

(335,941)

(21,965,278)

(23,880,725)

238,737,142

(259,075,327)

(16,887,688)

(12,556,203)

93,000,000

1,305,478

(194,213,740)

15,088,889

222,220

180,587,197

10,423,914

(207,999,433)

(2,482,864)

(4,160,077)

40,363,325

390,545

274,133,403

314,887,273

(46,884,201)

(1,776,972)

(328,871)

(29,425,346)

(31,531,189)

(78,415,390)

(113,543,471)

(27,025,564)

2,955,805

(5,717,351)

432,799,398

11,494,808

2,444,058

303,407,683

15,297,522

110,000,000

(138,848,114)

3,994,528

(9,556,064)

215,436,229

114,244

193,593,856

409,144,329

CASH FLOWS FROM OPERATING ACTIVITIES

Net cash flows from/(used in) operations

Finance costs paid

Gratuity paid

Taxes paid

Net cash flows from/(used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment

Development expenditure

Proceeds from the disposal of property and equipment

Increase in long term deposits

Purchase / (disposal) of short term investments - net

Profit received on short term investment

Profit received on bank deposits

Net cash flows used in/from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of share options

Proceeds from issue of shares

Increase in short term borrowings

Proceeds from convertible loan

Dividend paid

Increase / (decrease) in long term advances

Net cash flows used in financing activities

Net (decrease) in cash and cash equivalents

E�ect of exchange translation reserve

Cash and cash equivalents at 1st January

Cash and cash equivalents at 30 June

The annexed notes from 1 to 27 form an integral part of this condensed interim financial information.

(Un-audited)

30 June

2017

(Un-audited)

30 June

2016

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

MU

HA

MM

AD

KH

UR

RA

M I

QA

BL

Chie

f Fi

nanci

al O

ffic

er

Interim Financial Reprot 39

6. PRPOERTY AND EQUIPMENT

Opening balance - net book value

Additions during the period/ year - cost 6.1

Less:

Disposals - net book value 6.2

Depreciation during the period / year

Closing balance - net book value

571,414,145

270,216,180

841,630,325

7,318,420

36,423,304

797,888,601

362,703,298

294,443,247

657,146,545

10,606,471

75,364,947

571,175,127

4 ACCOUNTING POLICIES

The accounting policies adopted for the preparation of this condensed interim consoidated financial

information are the same as those applied in the preparation of the preceding annual published financial

statements of the Group for the year ended 31 December 2016 except as follows:

The Group has adopted the following standards and amendment to IFRSs which became effective for the

current period:

I FRS 7 -F inanc ia l Ins t ruments : D i sc losures - D isc losure In i t ia t i ve - (Amendment )

IAS 12 -Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses (Amendments)

The adoption of the above amendment to accounting standards did not have any material effect on the

condensed interim financial information.

5 ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of condensed interim financial information requires management to make judgments,

estimates and assumptions that affect the application of accounting policies and reported amount of

assets and liabilities, incomes and expenses. Actual results may differ from these estimates. The

significant judgments made by management in applying the Group's accounting policies and the key

sources of estimation are the same as those that applied to the financial statements for the year ended 31

December 2016.

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

38 Systems Limited

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 registered office of the Company is situated at

Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.

Subsidiary company

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 engaged in the business of

developing software and providing ancillary services.

E-Processing Systems (Private) Limited, a private limited company registered under Companies Ordinance,

1984 incorporated on 06 February 2013, is a 63% owned subsidiary of Systems Limited. The Company is

principally engaged in the business of purchase and sale of airtime and related services.

2. STATEMENT OF COMPLIANCE

2.1 During the year, the Companies Act 2017 (the Act) has been effective from 30 May 2017. However, Securities

and Exchange Commission of Pakistan vide its circular no.17 of 2017 dated July 20, 2017 communicated that

the companies whose financial year closes on or before June 30, 2017 shall prepare their financial

statements in accordance with the provisions of the repealed Companies Ordinance, 1984.

2.2 Accordingly, these consolidated condensed interim financial information of the Group for the six months

period ended 30 June 2017 has been prepared in accordance with the requirements of the International

Accounting Standard 34 - Interim Financial Reporting as are notified under the repealed Companies

Ordinance, 1984, provisions of and directives issued under the repealed Companies Ordinance,1984. In case

requirements differ, the provisions or directives of the repealed Companies Ordinance, 1984 shall prevail.

2.3 This consolidated condensed interim financial information is un-audited and is being submitted to

shareholders, as required by section 245 of the Companies ordinance, 1984.

3 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 2016.

3.1 Consolidated financial satements

This condensed interim consolidated financial information comprises the financial information of Systems

Limited and its subsidiaries, here-in-after referred to as "the Group".

3.2 Basis of measurement

This condensed interim consolidated financial information has been prepared under the historical cost

convention.

for the six months ended 30 June 2017

Interim Financial Reprot 39

6. PRPOERTY AND EQUIPMENT

Opening balance - net book value

Additions during the period/ year - cost 6.1

Less:

Disposals - net book value 6.2

Depreciation during the period / year

Closing balance - net book value

571,414,145

270,216,180

841,630,325

7,318,420

36,423,304

797,888,601

362,703,298

294,443,247

657,146,545

10,606,471

75,364,947

571,175,127

4 ACCOUNTING POLICIES

The accounting policies adopted for the preparation of this condensed interim consoidated financial

information are the same as those applied in the preparation of the preceding annual published financial

statements of the Group for the year ended 31 December 2016 except as follows:

The Group has adopted the following standards and amendment to IFRSs which became effective for the

current period:

I FRS 7 -F inanc ia l Ins t ruments : D i sc losures - D isc losure In i t ia t i ve - (Amendment )

IAS 12 -Income Taxes – Recognition of Deferred Tax Assets for Unrealized losses (Amendments)

The adoption of the above amendment to accounting standards did not have any material effect on the

condensed interim financial information.

5 ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of condensed interim financial information requires management to make judgments,

estimates and assumptions that affect the application of accounting policies and reported amount of

assets and liabilities, incomes and expenses. Actual results may differ from these estimates. The

significant judgments made by management in applying the Group's accounting policies and the key

sources of estimation are the same as those that applied to the financial statements for the year ended 31

December 2016.

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

SELECTED NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL INFORMATION

38 Systems Limited

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 registered office of the Company is situated at

Chamber of Commerce building, 11- Shahra-e-Aiwan-e-Tijarat, Lahore.

Subsidiary company

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 engaged in the business of

developing software and providing ancillary services.

E-Processing Systems (Private) Limited, a private limited company registered under Companies Ordinance,

1984 incorporated on 06 February 2013, is a 63% owned subsidiary of Systems Limited. The Company is

principally engaged in the business of purchase and sale of airtime and related services.

2. STATEMENT OF COMPLIANCE

2.1 During the year, the Companies Act 2017 (the Act) has been effective from 30 May 2017. However, Securities

and Exchange Commission of Pakistan vide its circular no.17 of 2017 dated July 20, 2017 communicated that

the companies whose financial year closes on or before June 30, 2017 shall prepare their financial

statements in accordance with the provisions of the repealed Companies Ordinance, 1984.

2.2 Accordingly, these consolidated condensed interim financial information of the Group for the six months

period ended 30 June 2017 has been prepared in accordance with the requirements of the International

Accounting Standard 34 - Interim Financial Reporting as are notified under the repealed Companies

Ordinance, 1984, provisions of and directives issued under the repealed Companies Ordinance,1984. In case

requirements differ, the provisions or directives of the repealed Companies Ordinance, 1984 shall prevail.

2.3 This consolidated condensed interim financial information is un-audited and is being submitted to

shareholders, as required by section 245 of the Companies ordinance, 1984.

3 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 2016.

3.1 Consolidated financial satements

This condensed interim consolidated financial information comprises the financial information of Systems

Limited and its subsidiaries, here-in-after referred to as "the Group".

3.2 Basis of measurement

This condensed interim consolidated financial information has been prepared under the historical cost

convention.

for the six months ended 30 June 2017

Interim Financial Reprot 41

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

7. INTANGIBLES ASSETS

Opening Balance - net book valueAdditions during the period / year

Less:Amortization during the period / yearClosing Balance - net book value

118,945,14430,677,800

149,622,944

14,267,620135,355,324

83,233,40056,349,585

139,582,985

20,637,840118,945,145

8.

8.1 603,699,130 855,144,096572,937,864 268,806,949

1,176,636,994 1,123,951,045

10,442,367 20,114,301(10,442,367)

(20,114,301)

-

TRADE DEBTS

Considered good - unsecuredExport Local

Considered doubtful - unsecuredLocalLess: Provision for doubtful debts

Less: Written o� (3,875,483)

(15,545,896)

1,172,761,511 1,108,405,149

8.1 This includes receivable from related parties i.e. Visionet Systems Incorporation amounting to Rs. 576.36

million (2016: Rs 664.4 million).

9.

2,869,408 4,872,78114,163,134 20,605,25017,032,542 25,478,03137,988,120 8,393,40355,020,662 33,871,434

10.

33,144,419 35,670,879

ADVANCES - considered good

Advances- considered goodagainst salaryagainst expenses

To suppliers-against goods

TRADE DEPOSITS AND SHORT TERM PREPAYMENTS

Security deposits

Prepayments 68,209,967 32,232,784

101,354,386 67,903,663

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

6.1 Additions during the period/year-cost

Land- freeholdComputersComputer equipment and installationsOther equipment and installationsGeneratorFurniture and fittingsO�ce equipmentVehiclesProject assetsMobile setsCapital work in progress

-

5,725,481

6,001,278

772,645

- 562,500

1,869,718 13,482,500

- -

241,802,058 270,216,180

-

22,133,397

4,407,210

1,170,889

- 2,611,883 5,569,666 41,289,116 1,353,000

991,774

214,916,312 294,443,247

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

40 Systems Limited

6.2 Disposals of disposals

30 June 2017

Computers

Vehicles

31 December 2016

Computers

Computer equipment and installations

Other equipment and installations

Generator

Furniture and fittings

Vehicles

O�ce equipment

Project assets

Mobile sets

1,392,881 8,338,740 9,731,621

23,161,593

4,252,261

1,213,226

226,267

2,171,557

10,910,334

510,000

40,543

106,157

42,591,938

Accumulated

Depreciation

293,330 7,025,090 7,318,420

672,577

14,167

106,667

133,233

-

9,646,494

-

-

33,333

10,606,471

Written Down

Value

1,686,211 15,363,830 17,050,041

23,834,170

4,266,428

1,319,893

359,500

2,171,557

20,556,828

510,000

40,543

139,490

53,198,409

Cost

Rupees Rupees Rupees

Interim Financial Reprot 41

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

7. INTANGIBLES ASSETS

Opening Balance - net book valueAdditions during the period / year

Less:Amortization during the period / yearClosing Balance - net book value

118,945,14430,677,800

149,622,944

14,267,620135,355,324

83,233,40056,349,585

139,582,985

20,637,840118,945,145

8.

8.1 603,699,130 855,144,096572,937,864 268,806,949

1,176,636,994 1,123,951,045

10,442,367 20,114,301(10,442,367)

(20,114,301)

-

TRADE DEBTS

Considered good - unsecuredExport Local

Considered doubtful - unsecuredLocalLess: Provision for doubtful debts

Less: Written o� (3,875,483)

(15,545,896)

1,172,761,511 1,108,405,149

8.1 This includes receivable from related parties i.e. Visionet Systems Incorporation amounting to Rs. 576.36

million (2016: Rs 664.4 million).

9.

2,869,408 4,872,78114,163,134 20,605,25017,032,542 25,478,03137,988,120 8,393,40355,020,662 33,871,434

10.

33,144,419 35,670,879

ADVANCES - considered good

Advances- considered goodagainst salaryagainst expenses

To suppliers-against goods

TRADE DEPOSITS AND SHORT TERM PREPAYMENTS

Security deposits

Prepayments 68,209,967 32,232,784

101,354,386 67,903,663

Un-audited Audited

30 June 31 December

Note 2017 2016

Rupees Rupees

6.1 Additions during the period/year-cost

Land- freeholdComputersComputer equipment and installationsOther equipment and installationsGeneratorFurniture and fittingsO�ce equipmentVehiclesProject assetsMobile setsCapital work in progress

-

5,725,481

6,001,278

772,645

- 562,500

1,869,718 13,482,500

- -

241,802,058 270,216,180

-

22,133,397

4,407,210

1,170,889

- 2,611,883 5,569,666 41,289,116 1,353,000

991,774

214,916,312 294,443,247

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

40 Systems Limited

6.2 Disposals of disposals

30 June 2017

Computers

Vehicles

31 December 2016

Computers

Computer equipment and installations

Other equipment and installations

Generator

Furniture and fittings

Vehicles

O�ce equipment

Project assets

Mobile sets

1,392,881 8,338,740 9,731,621

23,161,593

4,252,261

1,213,226

226,267

2,171,557

10,910,334

510,000

40,543

106,157

42,591,938

Accumulated

Depreciation

293,330 7,025,090 7,318,420

672,577

14,167

106,667

133,233

-

9,646,494

-

-

33,333

10,606,471

Written Down

Value

1,686,211 15,363,830 17,050,041

23,834,170

4,266,428

1,319,893

359,500

2,171,557

20,556,828

510,000

40,543

139,490

53,198,409

Cost

Rupees Rupees Rupees

Interim Financial Reprot 43

Issued, subscribed and paid-up share capital14.2

14.2.1

111,078,492

110,680,876

1,110,784,920

1,106,808,760

749,160 397,616

7,491,600

3,976,160

111,827,652 111,078,492 1,118,276,520 1,110,784,920

Reconciliation of issued, subscribed and paid-up share capital:

Balance as at 1st January

Stock options exercised

Ordinary shares of Rs. 10/- each

fully paid up as bonus shares

Ordinary shares of Rs. 10/- each fully

paid in cash 22,226,927

89,600,725

111,827,652

30 June

2017

No of Shares

222,269,270

896,007,250

1,118,276,520

30 June

2017

Rupees

22,226,927

88,851,565

111,078,492

31 December

2016

No of Shares

222,269,270

888,515,650

1,110,784,920

31 December

2016

Rupees

30 June

2017

No of Shares

30 June

2017

Rupees

31 December

2016

No of Shares

31 December

2016

Rupees

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

14. SHARE CAPITAL

14.1 Authorized share capital

Ordinary shares of Rs. 10/- each 2,000,000,000

1,500,000,000

15. LONG TERM ADVANCES

This represents advances received from staff and will be adjusted as per Company's car policy against sale

of vehicles.

Un-audited Audited

11. RECEIVABLE FROM RELATED PARTIES

Visionet Systems Incorporation - USA

TechVista Information Technology - Qatar

TechVista Information Technology - Australia

TechVista Systems LLC

12. SHORT TERM INVESTMENTS

Term deposit receipts 12.1

9,686,822

115,191,159

23,077,717

525,380

148,481,078

160,000,000

160,000,000

2,593,326

129,120,377

18,277,609

353,547

150,344,859

253,000,000

253,000,000

12.1 These carry interest at the rate of 5.75% (2016: 5.85% per annum).

13.

301,234 49,000

205,726,922 48,880,189

13.1 105,394,072 223,695,570

311,120,994 272,575,759

CASH AND BANK BALANCES

Cash in hand

Cash at bank:

Local currency:

Current accounts

Deposit accounts

Foreign currency - current accounts 3,465,045 1,508,644

314,586,039 274,084,403

314,887,273 274,133,403

13.1 These carry interest rate of 3.19% to 4% (2016: 3.29% to 4.04%) per annum.

42 Systems Limited

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

Interim Financial Reprot 43

Issued, subscribed and paid-up share capital14.2

14.2.1

111,078,492

110,680,876

1,110,784,920

1,106,808,760

749,160 397,616

7,491,600

3,976,160

111,827,652 111,078,492 1,118,276,520 1,110,784,920

Reconciliation of issued, subscribed and paid-up share capital:

Balance as at 1st January

Stock options exercised

Ordinary shares of Rs. 10/- each

fully paid up as bonus shares

Ordinary shares of Rs. 10/- each fully

paid in cash 22,226,927

89,600,725

111,827,652

30 June

2017

No of Shares

222,269,270

896,007,250

1,118,276,520

30 June

2017

Rupees

22,226,927

88,851,565

111,078,492

31 December

2016

No of Shares

222,269,270

888,515,650

1,110,784,920

31 December

2016

Rupees

30 June

2017

No of Shares

30 June

2017

Rupees

31 December

2016

No of Shares

31 December

2016

Rupees

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

14. SHARE CAPITAL

14.1 Authorized share capital

Ordinary shares of Rs. 10/- each 2,000,000,000

1,500,000,000

15. LONG TERM ADVANCES

This represents advances received from staff and will be adjusted as per Company's car policy against sale

of vehicles.

Un-audited Audited

11. RECEIVABLE FROM RELATED PARTIES

Visionet Systems Incorporation - USA

TechVista Information Technology - Qatar

TechVista Information Technology - Australia

TechVista Systems LLC

12. SHORT TERM INVESTMENTS

Term deposit receipts 12.1

9,686,822

115,191,159

23,077,717

525,380

148,481,078

160,000,000

160,000,000

2,593,326

129,120,377

18,277,609

353,547

150,344,859

253,000,000

253,000,000

12.1 These carry interest at the rate of 5.75% (2016: 5.85% per annum).

13.

301,234 49,000

205,726,922 48,880,189

13.1 105,394,072 223,695,570

311,120,994 272,575,759

CASH AND BANK BALANCES

Cash in hand

Cash at bank:

Local currency:

Current accounts

Deposit accounts

Foreign currency - current accounts 3,465,045 1,508,644

314,586,039 274,084,403

314,887,273 274,133,403

13.1 These carry interest rate of 3.19% to 4% (2016: 3.29% to 4.04%) per annum.

42 Systems Limited

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

Interim Financial Reprot 45

Unallocated income and expenses:

Other operating expenses

Other income

Finance cost

Profit before taxation

Taxation

Profit for the year

2017 2016

Sales 982,837,029 821,940,545 609,438,537 538,738,958 286,114,899

364,799,435

195,990,617 (162,801,693) 1,682,399,849 1,562,677,245

Cost of sales 566,853,340 474,982,240 540,076,105 484,197,974 242,933,937

338,770,045

164,591,417 (162,801,693) 1,185,271,966 1,135,148,566

Gross profit 353,646,495 346,958,305 131,699,627 54,540,984 43,180,962

26,029,390

497,127,883 427,528,679

Distribution cost 1,451,188 1,416,542 53,487,287 39,265,604 19,142,225

19,730,390

31,399,200

-

-

-

--

--

42,681,500

60,412,536

R & D 457,171 624,831 699,589 -

1,781,591

Administrative expenses 97,454,405 85,591,389 38,612,293 32,841,858 25,164,515 28,204,636 161,231,212

146,637,883

98,905,592 87,465,102 92,099,579 72,732,293 44,306,740

48,634,615

203,912,712 208,832,010

Profit / (loss) before taxation andunallocated income and expenses 254,740,902 259,493,203 39,600,047 (18,191,309) (1,125,778)

(22,605,225)

293,215,171

(37,074,557)

30,021,069

(2,835,021)

(9,888,509)

283,326,662

5,722,298277,604,364

218,696,669

Half year ended

North America Middle East Pakistan Total

Rupees

Inter Segment Elimination

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

-

-

-

-

-

2017 2016

Rupees Rupees

-

14,570,115

(1,776,972)

12,793,143

231,489,812

1,972,413

229,517,399

19. CONTINGENCIES AND COMMITMENTS

Contingencies

There is no significant change in the contigencies since the date of preceding pusblished annual financail

statements.

Commitments:

19.1 Guarantees issued by the financial institutions on behalf of the Group amounts to Rs. 319.379 (2016: Rs.

279.47) million.

19.2 Commitments include capital commitments for construction of building of the Company amounting to Rs.

52.34 (2016: 427.6) million.

16.

TRADE AND OTHER PAYABLES

Creditors

Advance from customers

Retention Money

Accrued liabilities

Withholding income tax payable

Provident fund payable

Provision for WWF

Sales tax payable

Unclaimed dividend

87,427,109

4,035,271

335,116

119,950,185

2,577,692

-

-

-

2,453,735

216,779,108

16,868,179

4,270,423

11,604,035

194,071,875

7,117,368

10,345,091

17,930,514

5,007,552

4,351,988

271,567,025

44 Systems Limited

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

17. SHORT TERM BORROWINGS

This represents export running finance ERF II facility obtained from Habib Bank Limited. The facility has a

limit of Rs. 150 million for working capital requirement and carries interest rate at State Bank of Pakistan

(SBP) rate for ERF + 1% per annum. The facility is mainly secured alongwith letter of guarantee facility of Rs.

150 million by way of first charge over present and future current and fixed assets of the Company and

collateral of land and building to the effect of Rs. 400 million each.

18. 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 pricing between operating segments are at arm's length basis in a manner similar to ransactions

with third parties.

Un-audited

30 June 30 June

Note 2017 2016

Rupees Rupees

20. OTHER OPERATING EXPENSES

Provision for doubtful debts

Unbilled and bad debt written-o�

840,484

36,234,073

37,074,557

-

-

-

Un-audited

Interim Financial Reprot 45

Unallocated income and expenses:

Other operating expenses

Other income

Finance cost

Profit before taxation

Taxation

Profit for the year

2017 2016

Sales 982,837,029 821,940,545 609,438,537 538,738,958 286,114,899

364,799,435

195,990,617 (162,801,693) 1,682,399,849 1,562,677,245

Cost of sales 566,853,340 474,982,240 540,076,105 484,197,974 242,933,937

338,770,045

164,591,417 (162,801,693) 1,185,271,966 1,135,148,566

Gross profit 353,646,495 346,958,305 131,699,627 54,540,984 43,180,962

26,029,390

497,127,883 427,528,679

Distribution cost 1,451,188 1,416,542 53,487,287 39,265,604 19,142,225

19,730,390

31,399,200

-

-

-

--

--

42,681,500

60,412,536

R & D 457,171 624,831 699,589 -

1,781,591

Administrative expenses 97,454,405 85,591,389 38,612,293 32,841,858 25,164,515 28,204,636 161,231,212

146,637,883

98,905,592 87,465,102 92,099,579 72,732,293 44,306,740

48,634,615

203,912,712 208,832,010

Profit / (loss) before taxation andunallocated income and expenses 254,740,902 259,493,203 39,600,047 (18,191,309) (1,125,778)

(22,605,225)

293,215,171

(37,074,557)

30,021,069

(2,835,021)

(9,888,509)

283,326,662

5,722,298277,604,364

218,696,669

Half year ended

North America Middle East Pakistan Total

Rupees

Inter Segment Elimination

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

2017 2016

Half year ended

Rupees

Un-audited

Rupees

-

-

-

-

-

2017 2016

Rupees Rupees

-

14,570,115

(1,776,972)

12,793,143

231,489,812

1,972,413

229,517,399

19. CONTINGENCIES AND COMMITMENTS

Contingencies

There is no significant change in the contigencies since the date of preceding pusblished annual financail

statements.

Commitments:

19.1 Guarantees issued by the financial institutions on behalf of the Group amounts to Rs. 319.379 (2016: Rs.

279.47) million.

19.2 Commitments include capital commitments for construction of building of the Company amounting to Rs.

52.34 (2016: 427.6) million.

16.

TRADE AND OTHER PAYABLES

Creditors

Advance from customers

Retention Money

Accrued liabilities

Withholding income tax payable

Provident fund payable

Provision for WWF

Sales tax payable

Unclaimed dividend

87,427,109

4,035,271

335,116

119,950,185

2,577,692

-

-

-

2,453,735

216,779,108

16,868,179

4,270,423

11,604,035

194,071,875

7,117,368

10,345,091

17,930,514

5,007,552

4,351,988

271,567,025

44 Systems Limited

Note

Un-audited Audited

30 June 31 December

2017 2016

Rupees Rupees

17. SHORT TERM BORROWINGS

This represents export running finance ERF II facility obtained from Habib Bank Limited. The facility has a

limit of Rs. 150 million for working capital requirement and carries interest rate at State Bank of Pakistan

(SBP) rate for ERF + 1% per annum. The facility is mainly secured alongwith letter of guarantee facility of Rs.

150 million by way of first charge over present and future current and fixed assets of the Company and

collateral of land and building to the effect of Rs. 400 million each.

18. 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 pricing between operating segments are at arm's length basis in a manner similar to ransactions

with third parties.

Un-audited

30 June 30 June

Note 2017 2016

Rupees Rupees

20. OTHER OPERATING EXPENSES

Provision for doubtful debts

Unbilled and bad debt written-o�

840,484

36,234,073

37,074,557

-

-

-

Un-audited

Interim Financial Reprot 47

23. CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 283,326,662

231,489,812

Adjustments of recincile profit before tax to meet cash flows:

Depreciation on property and equipment 36,423,304 36,216,087

Amortization of intangible assets 14,267,620

9,318,658

Provision for bad debts 840,484

(1,469,520)

Bad debts - written o� 36,234,073

-

Share based payment expense 12,244,283

4,550,100

Gratuity expense 1,808,602 -

Finance cost 1,579,506 1,776,972

Exchange gain - net (610,210) (1,582,003)

Other income 55,624 - Profit on bank deposits (1,305,478) (2,444,058) Gain on short term investments (5,632,814)

(7,905,210)

Gain on disposal of property and equipment (5,237,783)

(1,747,534)

90,667,211 36,713,492

Profit before working capital changes 373,993,873

268,203,304

E�ect on cash flow due to working capital changes

(Increase) / decrease in current assets:

Trade debts (28,688,723)

(33,315,141)

Unbilled revenue - net 48,476,154

(90,886,760)

Other receivables (28,056,496)

(5,431,134)

Trade deposits and short term prepayments (30,744,742) (25,442,639)

Advances (23,861,912)

(43,682,505)

Interest accrued 6,022,533

-

(56,853,186)

(198,758,179)

(Decrease) / increase in current liabilities:

Trade and other payables (54,522,820) (116,329,326)

(111,376,006)

Net cash flows from operations 262,617,867 (46,884,201)

2017 2016

Rupees Rupees

21. EARNINGS PER SHARE

2016

Un-audited

131,090,257

111,078,492

1.18

2017

Un-audited

140,283,006

111,745,327

1.26

2016

Un-audited

231,549,668

111,023,630

2.09

2017

Un-audited

282,262,178

111,413,751

2.53

Basic earnings per share

Profit for the period attributable to equity holder of parent

Basic - in Rupees

Weighted average number of ordinary shares in issue during the period

Half year ended 30 June Quarter ended 30 June

46 Systems Limited

131,090,257

111,078,492

413,884

111,492,376

1.18

140,283,006

111,745,327

237,032

111,982,359

1.25

231,549,668

111,023,630

811,500

111,835,130

2.07

282,262,178

111,413,751

210,965

111,624,716

2.53

Diluted earnings per share

Profit for the period attributable to equity holder of parent

E�ect of share options

Diluted - in Rupees

Weighted-average number of ordinary sahres (basic)

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:

Related party

Un-audited Un-audited

2017 2016

Sales 961,648,911

799,124,973

Reimbursement of

expenses 4,300,951

5,431,134

965,949,862 804,556,107

Provident fund Employee benefit plan Contributions 43,455,174

37,047,292

Nature of

transactions

Half year ended 30 June

Rupees

Visionet Systems Incorporation

Associate

Relationship

Rupees

(315,087,505)

Interim Financial Reprot 47

23. CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 283,326,662

231,489,812

Adjustments of recincile profit before tax to meet cash flows:

Depreciation on property and equipment 36,423,304 36,216,087

Amortization of intangible assets 14,267,620

9,318,658

Provision for bad debts 840,484

(1,469,520)

Bad debts - written o� 36,234,073

-

Share based payment expense 12,244,283

4,550,100

Gratuity expense 1,808,602 -

Finance cost 1,579,506 1,776,972

Exchange gain - net (610,210) (1,582,003)

Other income 55,624 - Profit on bank deposits (1,305,478) (2,444,058) Gain on short term investments (5,632,814)

(7,905,210)

Gain on disposal of property and equipment (5,237,783)

(1,747,534)

90,667,211 36,713,492

Profit before working capital changes 373,993,873

268,203,304

E�ect on cash flow due to working capital changes

(Increase) / decrease in current assets:

Trade debts (28,688,723)

(33,315,141)

Unbilled revenue - net 48,476,154

(90,886,760)

Other receivables (28,056,496)

(5,431,134)

Trade deposits and short term prepayments (30,744,742) (25,442,639)

Advances (23,861,912)

(43,682,505)

Interest accrued 6,022,533

-

(56,853,186)

(198,758,179)

(Decrease) / increase in current liabilities:

Trade and other payables (54,522,820) (116,329,326)

(111,376,006)

Net cash flows from operations 262,617,867 (46,884,201)

2017 2016

Rupees Rupees

21. EARNINGS PER SHARE

2016

Un-audited

131,090,257

111,078,492

1.18

2017

Un-audited

140,283,006

111,745,327

1.26

2016

Un-audited

231,549,668

111,023,630

2.09

2017

Un-audited

282,262,178

111,413,751

2.53

Basic earnings per share

Profit for the period attributable to equity holder of parent

Basic - in Rupees

Weighted average number of ordinary shares in issue during the period

Half year ended 30 June Quarter ended 30 June

46 Systems Limited

131,090,257

111,078,492

413,884

111,492,376

1.18

140,283,006

111,745,327

237,032

111,982,359

1.25

231,549,668

111,023,630

811,500

111,835,130

2.07

282,262,178

111,413,751

210,965

111,624,716

2.53

Diluted earnings per share

Profit for the period attributable to equity holder of parent

E�ect of share options

Diluted - in Rupees

Weighted-average number of ordinary sahres (basic)

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:

Related party

Un-audited Un-audited

2017 2016

Sales 961,648,911

799,124,973

Reimbursement of

expenses 4,300,951

5,431,134

965,949,862 804,556,107

Provident fund Employee benefit plan Contributions 43,455,174

37,047,292

Nature of

transactions

Half year ended 30 June

Rupees

Visionet Systems Incorporation

Associate

Relationship

Rupees

(315,087,505)

Interim Financial Reprot 49

24.3 Financial instruments by categories

Financial assets as per balance sheet

Long term deposits

Unbilled revenue

Loans to employees

Trade debts

Trade deposits

Interest accrued

Other receivable

Short term investments

Cash and bank balances

Financial liabilities as per balance sheet

Trade and other payables

Financial instruments by categories

Financial assets as per balance sheet

Long term deposits

Unbilled revenue

Loans to employees

Trade debts

Trade deposits

Interest accrued

Other receivable

Short term investments

Cash and bank balances

Cash and cash Loans and

equivalents advances

9,136,852 9,136,852

262,384,124

262,384,124

2,869,408

2,869,408

1,172,761,511

1,172,761,511

33,144,419

33,144,419

1,884,623

1,884,623

148,481,078

148,481,078

160,000,000

160,000,000

314,887,273

-

314,887,273

314,887,273

1,790,662,014

2,105,549,288

30 June 2017

Rupees

210,166,145

9,136,852 9,136,852

393,659,781 393,659,781

4,872,781 4,872,781

1,108,405,149 1,108,405,149 35,670,879 35,670,879

2,274,342

2,274,342

150,344,859

150,344,859

253,000,000

253,000,000 274,133,403

274,133,403

274,133,403

1,957,364,643 2,231,498,046

30-Jun-17

Rupees

30-Jun-16

Total

Financial Liabilities

at amortized cost

RupeesRupees

Cash and cash Loans and

equivalents advances

Rupees

Total

RupeesRupees

48 Systems Limited

24. FINANCIAL RISK MANAGEMENT

24.1 Financial risk factors

There is no change in the company's objectives, policies, procedures for measuring and managing the

financial risks including capital management risk, since the preceding annual financial year ended 31

December 2016.

24.2 Fair values of financial assets and liabilities

The carrying values of all financial assets and liabilities reflected in financial statements approximate to

their fair values. Fair value is determined on the basis of objective evidence at each reporting date.

Accordingly, detailed disclosure with reference to fair value has not been given in this condensed interim

financial infromation.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial

instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are

observable either, directly or indirectly

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not

based on observable market data

- There were no financial assets and liabilities measured at fair value as at 30 June 2017.

- During the six month period ended 30 June 2017, there were no transfers between Level 1 and Level 2 fair

value measurements.

- There were no financial assets and liabilities measured at fair value as at 31 December 2016.

Interim Financial Reprot 49

24.3 Financial instruments by categories

Financial assets as per balance sheet

Long term deposits

Unbilled revenue

Loans to employees

Trade debts

Trade deposits

Interest accrued

Other receivable

Short term investments

Cash and bank balances

Financial liabilities as per balance sheet

Trade and other payables

Financial instruments by categories

Financial assets as per balance sheet

Long term deposits

Unbilled revenue

Loans to employees

Trade debts

Trade deposits

Interest accrued

Other receivable

Short term investments

Cash and bank balances

Cash and cash Loans and

equivalents advances

9,136,852 9,136,852

262,384,124

262,384,124

2,869,408

2,869,408

1,172,761,511

1,172,761,511

33,144,419

33,144,419

1,884,623

1,884,623

148,481,078

148,481,078

160,000,000

160,000,000

314,887,273

-

314,887,273

314,887,273

1,790,662,014

2,105,549,288

30 June 2017

Rupees

210,166,145

9,136,852 9,136,852

393,659,781 393,659,781

4,872,781 4,872,781

1,108,405,149 1,108,405,149 35,670,879 35,670,879

2,274,342

2,274,342

150,344,859

150,344,859

253,000,000

253,000,000 274,133,403

274,133,403

274,133,403

1,957,364,643 2,231,498,046

30-Jun-17

Rupees

30-Jun-16

Total

Financial Liabilities

at amortized cost

RupeesRupees

Cash and cash Loans and

equivalents advances

Rupees

Total

RupeesRupees

48 Systems Limited

24. FINANCIAL RISK MANAGEMENT

24.1 Financial risk factors

There is no change in the company's objectives, policies, procedures for measuring and managing the

financial risks including capital management risk, since the preceding annual financial year ended 31

December 2016.

24.2 Fair values of financial assets and liabilities

The carrying values of all financial assets and liabilities reflected in financial statements approximate to

their fair values. Fair value is determined on the basis of objective evidence at each reporting date.

Accordingly, detailed disclosure with reference to fair value has not been given in this condensed interim

financial infromation.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial

instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are

observable either, directly or indirectly

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not

based on observable market data

- There were no financial assets and liabilities measured at fair value as at 30 June 2017.

- During the six month period ended 30 June 2017, there were no transfers between Level 1 and Level 2 fair

value measurements.

- There were no financial assets and liabilities measured at fair value as at 31 December 2016.

50 Systems Limited

30 June 2016

Rupees

Financial liabilities as per balance sheet

Trade and other payables 226,896,077

Financial Liabilities

at amortized cost

25. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issuance on 25 August 2017 by the Board

of Directors of the Company.

26. CORRESPONDING FIGURES

Corresponding figures have been re-arranged where necessary for the purpose of comparison, however no

significant re-arrangements have been made.

27. GENERAL

27.1 The figures of condensed interim profit and loss account and condensed interim statement of

comprehensive income for the three months ended 30 June 2017 and 30 June 2016 were not subject to

limited scope review by the auditors as scope of review covered only the cumulative figures.

27.2 Figures have been rounded off to the nearest rupee unless otherwise stated.

Interim Financial Reprot 51

Notes

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

50 Systems Limited

30 June 2016

Rupees

Financial liabilities as per balance sheet

Trade and other payables 226,896,077

Financial Liabilities

at amortized cost

25. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issuance on 25 August 2017 by the Board

of Directors of the Company.

26. CORRESPONDING FIGURES

Corresponding figures have been re-arranged where necessary for the purpose of comparison, however no

significant re-arrangements have been made.

27. GENERAL

27.1 The figures of condensed interim profit and loss account and condensed interim statement of

comprehensive income for the three months ended 30 June 2017 and 30 June 2016 were not subject to

limited scope review by the auditors as scope of review covered only the cumulative figures.

27.2 Figures have been rounded off to the nearest rupee unless otherwise stated.

Interim Financial Reprot 51

Notes

AEZAZ HUSSAIN

Chairman

ASIF PEER

Chief Executive

MUHAMMAD KHURRAM IQABL

Chief Financial Officer

Notes

KarachiE-5, Central Commercial Area,Shaheed-e-Millat Road,Karachi, PakistanT: +92 21 34549385-87F: +92 21 34549389

DubaiTechVista Systems FZ-LLCO�ce 1905, Regal TowerBusiness Bay,Dubai, UAETel: + 9714 369 3525Fax: + 9714 456 3761

Registered O�ce

Lahore O�ce - Head O�ceSystems Campus Software Technology ParkE-1, Sehjpal Near DHA Phase-VIII,(Ex-Air Avenue), Lahore Cantt.UAN: +92 42 111-797-836T: +92 42 37319401

52 Systems Limited

Chamber of Commerce Building,11 Shara-e-Aiwane Tijarat,Lahore, Pakistan.T: +92 42 36304825-35F: +92 42 36368857

Notes

KarachiE-5, Central Commercial Area,Shaheed-e-Millat Road,Karachi, PakistanT: +92 21 34549385-87F: +92 21 34549389

DubaiTechVista Systems FZ-LLCO�ce 1905, Regal TowerBusiness Bay,Dubai, UAETel: + 9714 369 3525Fax: + 9714 456 3761

Registered O�ce

Lahore O�ce - Head O�ceSystems Campus Software Technology ParkE-1, Sehjpal Near DHA Phase-VIII,(Ex-Air Avenue), Lahore Cantt.UAN: +92 42 111-797-836T: +92 42 37319401

52 Systems Limited

Chamber of Commerce Building,11 Shara-e-Aiwane Tijarat,Lahore, Pakistan.T: +92 42 36304825-35F: +92 42 36368857