The

Content
COMPANY PROFILE 02-10
Company Information 2
Director’s Report 3
Director’s Report Urdu 10

STANDALONE FINANCIAL
STATEMENTS 11-27

Condensed Unconsolidated Interim Statement of Financial Position 12

Condensed Unconsolidated Interim Statement of Profit or Loss 13
Condensed Unconsolidated Interim Statement of Comprehensive Income 14
Condensed Unconsolidated Interim Statement of Changes in Equity 15
Condensed Unconsolidated Interim Statement of Cash Flow 16
Notes to the Condensed Unconsolidated Interim Financial Statements 17

CONSOLIDATED FINANCIAL
STATEMENTS 28-41
Consolidated Condensed Interim Statement of Financial Position 29
Consolidated Condensed Interim Statement of Profit or Loss 30
Consolidated Condensed Interim Statement of Comprehensive Income 31
Consolidated Condensed Interim Statement of Changes in Equity 32
Consolidated Condensed Interim Statement of Cash Flow 33
Notes to the Consolidated Condensed Interim Financial Statements 34
 Company Information

Head of Internal Audit

Mr. Salman Naveed

A. F Ferguson & Co.

Chartered Accountants

Mr. Zubyr Soomro

Director

Mr. Omar Saeed

Director
Tax Advisors
A. F Ferguson & Co.
Ms. Maheen Rahman Chartered Accountants
Director

Ms. Romana Abdullah

Director Habib Metropolitan Bank Limited
United Bank Limited
Standard Chartered Bank (Pak Limited)
MCB Bank Limited
Mr. Zubyr Soomro Faysal Bank Limited
Chairman Bank Alfalah Limited
Bank Islami Limited
Ms. Maheen Rahman
Member Allied Bank Limited
Meezan Bank Limited
Ms. Romana Abdullah Finja Pvt Limited
Member Habib Bank Limited

Central Depository Company

CDC House, 99-B, Block B,
Mr. Omar Saeed S.M.C.H.S., Main Shahra-e-Faisal,
Chairman Karachi – 74400.
Tel: (92-21) 111-111-500 Fax: (92-21)
Ms. Maheen Rahman
Member 34326034

Mr. Arshad Masood Registered Address

Member Systems Limited
E-1, Sehjpal Near DHA Phase -VIII
(Ex.-Air Avenue), Lahore Cantt
T: +92 42 111-797-836
F: +92 42 3 636 8857

Mr. Ali Ahmed Iftikhar

2
DIRECTOR’S REPORT

On behalf of the Board of Directors we are pleased to present the Standalone and
Consolidated Financial Statements for the nine months ended 30th September 2024.

FINANCIAL RESULTS
Unconsolidated:

During nine months periods ended 30 September 2024, standalone revenue grew by 21% over
same period last year from Rs. 23,075.54 million to Rs. 27,923.94 million. Gross profit decreased
by 1% whereas operating profit decreased by 10%, mainly due to higher inflationary costs and
lower average exchange rate. However, the Company has started seeing improvement in
margins resulting from optimization of costs and improving efficiency. As a consequence of
rupee appreciation, net profit for the period has been impacted by an exchange loss of Rs
210.35 million compared to the Rs. 2,386.23 million exchange gain in September 2023
decreasing net profit by 38%, from 6,730.02 million to Rs. 4,196.67 million. Since the rupee has
appreciated against the dollar in this period, the Company did not get the leverage on the
wage inflation which has impacted the bottom line. However, the business continues to grow,
and revenue has increased by 21% in USD terms.

Key Financial Highlights - Unconsolidated

Particulars Sept-24 (unaudited) Sept-23 (unaudited) Change
Rs. Rs. %
Revenue 27,923,948,435 23,075,540,270 21
Gross Profit 7,131,924,355 7,213,652,077 -1
Operating profit 4,321,215,190 4,802,075,600 -10
Profit for the period 4,196,672,056 6,730,022,690 -38
Earnings per share (basic) 14.33 23.14 -38
Earnings per share (diluted) 14.25 22.96 -38

Other Income - Unconsolidated

Particulars Sept-24 (unaudited) Sept-23 (unaudited)
Rs. Rs.
Other Income 639,054,140 371,680,351
Exchange Gain / (Loss) (210,354,458) 2,386,235,698
428,699,682 2,757,916,049

Unconsolidated - Revenue (PKR Mn.) Unconsolidated - Opera�ng Profit (PKR Mn.)

CAGR - 51% 4,802

27,924 CAGR - 34%
4,321
23,076 3,445

14,798 2,033

8,130 1,350
5,360

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

Unconsolidated - Net Profit(PKR Mn.) Unconsolidated - EPS Basic (Rupee per share)
6,730
CAGR - 28% CAGR - 26%
23.14
4,816
17.39
4,197
14.33
2,310
8.40
1,565 5.73

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

3
 Consolidated:

During the nine months period ended 30th September 2024, consolidated revenue grew by 29% from
Rs. 37,333.78 million to Rs. 48,309.67 million. Gross profit and operating profit increased by 10% and 14%
respectively. Net profit for the period decreased by 24% from Rs. 7,146.811 million to Rs. 5,431.82 million
due to exchange loss against a considerably high exchange gain recorded in last year and also
higher taxes with effective tax rate increasing to 10% vs 5% last year as UAE taxation is applicable
from this year. Normalizing the impact of currency fluctuation, profit after tax showed increase of 20%
from same period last year. Wage inflation adjustment has significantly offset the revenue growth.

Basic and diluted earnings per share increased by 20% after normalizing the impact of currency
fluctuation.

Key Financial Highlights - Consolidated

Particulars Sept-24 (unaudited) Sept-23 (unaudited) Change
Rs. Rs. %
Revenue 48,309,676,979 37,333,785,801 29
Gross Profit 11,510,119,690 10,484,114,036 10
Operating profit 6,219,114,795 5,467,065,736 14
Profit for the period 5,431,829,219 7,146,811,803 -24
Earnings per share (basic) 18.54 24.57 -25
Earnings per share (diluted) 18.44 24.38 -24

Other Income - Consolidated

Particulars Sept-24 (unaudited) Sept-23 (unaudited)
Rs. Rs.
Other Income 696,769,864 378,543,030
Exchange Gain / (Loss) (396,414,465) 2,638,436,427
300,355,399 3,016,979,457

Consolidated - Revenue - (PKR Mn.) Consolidated - Opera�ng Profit (PKR Mn.)

48,310
6,219
CAGR - 62% 37,334 CAGR - 44% 5,467

20,145 4,045

2,316
10,524
7,069 1,431

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

Consolidated - Net Profit (PKR Mn.) Consolidated - EPS - Basic (Rupee)

7,147 24.57
CAGR - 35% CAGR - 33% 18.47
18.54
5,116 5,432

9.29
2,522
1,616 5.98

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

PERFORMANCE BY SEGMENT – BY VERTICAL AND BY GEOGRAPHY

All vertical segments are aggressively growing, and the Company expects the margins to
rationalize towards the latter half of the year.

4
 BFSI Telco Technology Retail & CPG Others Total
Un-audited Un-audited Un-audited Un-audited Un-audited Un-audited
Nine months ended 30 September Nine months ended 30 September Nine months ended 30 Septemeber Nine months ended 30 September Nine months ended 30 September Nine months ended 30 September
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
----------------------------------------------------------------------------Rupees--------------------------------------------------------------------------
Revenue - net 14,492,597,421 11,281,788,304 10,928,369,038 7,718,176,265 5,884,511,210 5,407,239,713 5,787,505,709 4,067,480,068 11,216,693,601 8,859,101,451 48,309,676,978 37,333,785,801
Cost of sales (12,038,388,671) (8,979,059,645) (8,067,283,755) (5,135,447,768) (4,266,029,185) (3,540,680,779) (3,897,902,151) (2,600,789,085) (8,529,953,527) (6,593,694,488) (36,799,557,288) (26,849,671,765)
Gross profit 2,454,208,750 2,302,728,659 2,861,085,283 2,582,728,497 1,618,482,025 1,866,558,934 1,889,603,558 1,466,690,983 2,686,740,074 2,265,406,963 11,510,119,690 10,484,114,036

Distribution expenses (447,425,509) (407,848,805) (337,388,181) (322,450,609) (181,670,707) (234,198,464) (178,675,886) (143,249,043) (346,289,537) (353,008,386) (1,491,449,821) (1,460,755,306)
Administrative expenses (1,029,684,605) (801,012,331) (776,449,730) (505,982,265) (418,088,657) (598,028,673) (411,196,513) (385,277,155) (796,934,903) (685,001,043) (3,432,354,408) (2,975,301,467)
Research and development expenses (132,929,000) (88,718,833) (36,510,980) (32,358,760) (19,415,797) (22,670,067) (17,751,691) (17,053,071) (13,570,233) (37,133,836) (220,177,701) (197,934,567)
(1,610,039,114) (1,297,579,969) (1,150,348,891) (860,791,634) (619,175,162) (854,897,204) (607,624,090) (545,579,269) (1,156,794,673) (1,075,143,264) (5,143,981,930) (4,633,991,340)
Profit / (loss) before taxation and
unallocated income and expenses 844,169,636 1,005,148,690 1,710,736,392 1,721,936,863 999,306,863 1,011,661,730 1,281,979,468 921,111,714 1,529,945,401 1,190,263,699 6,366,137,760 5,850,122,696

Other operating expenses (147,022,966) (383,056,960)

Other income (excluding exchange gain) 696,769,864 378,543,030
Exchange (loss) / gain (396,414,465) 2,638,436,427
Share of loss from associates (56,369,952) (284,050,620)
Finance cost (384,501,227) (653,875,388)
Profit before taxation and Levy 6,078,599,015 7,546,119,186
Levy (335,529,128) (355,184,047)
Profit before taxation 5,743,069,887 7,190,935,139
Taxation (311,240,669) (44,123,335)
Profit after taxation 5,431,829,219 7,146,811,803

The geographical segment analysis shows robust growth across all four segments. European and MEA
segment is bouncing back showing an encouraging dollarized growth. The Company is rationalizing
Pakistan segment as well by improving the quality of revenue bringing efficiencies and optimizing
costs to improve the profitability in this segment as well. With the strategic actions that the Company
is taking, the profitability across all segments is expected to show a positive trend towards latter half
of the year. Export sales of the Company are now roughly around 87% of total sales in line with
Company’s strategy to grow exports.

North America Europe Middle East & Africa Asia Pacific Pakistan Total
Un-audited Un-audited Un-audited Un-audited Un-audited Un-audited
Nine months ended September Nine months ended September Nine months ended September Nine months ended September Nine months ended September Nine months ended September
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
----------------------------------------------------------------------------Rupees--------------------------------------------------------------------------
Revenue - net 10,389,288,519 9,180,326,957 2,113,647,503 1,398,585,225 27,954,460,718 19,239,209,117 1,755,816,336 785,642,470 6,096,463,901 6,730,022,032 48,309,676,979 37,333,785,801
Cost of sales (6,969,558,628) (5,573,823,209) (1,370,242,480) (827,901,659) (21,278,675,312) (13,897,241,742) (1,145,480,935) (496,669,824) (6,035,599,933) (6,054,035,330) (36,799,557,288) (26,849,671,765)
Gross profit 3,419,729,891 3,606,503,748 743,405,024 570,683,566 6,675,785,406 5,341,967,375 610,335,402 288,972,646 60,863,968 675,986,702 11,510,119,691 10,484,114,036

Distribution expenses (217,403,061) (81,471,398) (43,570,418) (12,572,855) (998,762,809) (997,434,911) (146,917,821) (48,217,815) (84,795,712) (321,058,328) (1,491,449,821) (1,460,755,307)
Administrative expenses (887,528,857) (1,078,365,142) (177,872,397) (153,685,425) (2,062,898,308) (1,504,050,963) (66,592,389) (57,951,279) (237,462,457) (181,248,657) (3,432,354,408) (2,975,301,466)
Research & develpoment expenses (93,345,357) (75,019,850) (18,707,631) (11,492,085) (63,787,399) (58,315,153) (7,928,968) (7,876,197) (36,408,347) (45,231,283) (220,177,701) (197,934,567)
(1,198,277,274) (1,234,856,390) (240,150,446) (177,750,365) (3,125,448,516) (2,559,801,027) (221,439,177) (114,045,291) (358,666,516) (547,538,268) (5,143,981,930) (4,633,991,340)
Profit / (loss) before taxation and
unallocated income and expenses 2,221,452,617 2,371,647,358 503,254,577 392,933,201 3,550,336,890 2,782,166,348 388,896,225 174,927,355 (297,802,547) 128,448,434 6,366,137,761 5,850,122,696

Other operating expenses (147,022,966) (383,056,960)

Other income (excluding exchange gain) 696,769,864 378,543,030
Exchange (loss) / gain (396,414,465) 2,638,436,427
Share of loss from associates (56,369,952) (284,050,620)
Finance cost (384,501,227) (653,875,388)
Profit before taxation and Levy 6,078,599,016 7,546,119,186
Levy (335,529,128) (355,184,047)
Profit before taxation 5,743,069,888 7,190,935,139
Taxation (311,240,669) (44,123,335)
Profit after taxation 5,431,829,219 7,146,811,803

KEY FINANCIAL RATIOS

The decline is profitability ratios has been explained above. The sharp reduction in all net
profitability-based ratios is due to the impact of unusually high exchange gain in same period last
year.

Ratio Description Standalone Consolidated

Nine months ended 30th Sept Nine months ended 30th Sept
2024 2023 2024 2023
Gross Profit Margin (%) 25.5% 31.3% 23.8% 28.1%
Operating Margin (%) 15.4% 20.8% 12.9% 14.6%
EBITDA Margin (%) 17.9% 23.2% 15.40% 18.2%
Pre-tax Margin (%) 16.2% 30.6% 12.6% 20.2%
Net Profit Margin (%) 15.0% 29.2% 11.2% 19.1%
Assets turnover (%) 73.1% 74.1% 93.1% 84.9%
Return on Equity (%) 13.6% 26.0% 14.9% 23.9%
Current ratio 3.48 2.49 2.56 2.05
Quick Ratio 2.75 2.13 1.53 1.38
Debtor Turnover (Days) 190 151 130 102
Debt:Equity (Ratio) 04:96 14:86 05:95 12:88
Interest Cover (Times) 21.15 16.60 16.17 14.50

5
 FUTURE OUTLOOK

The Company continues to invest in markets with significant growth potential, driving aggressive
expansion in these regions. While 90% of the Company’s business is conducted in USD to mitigate
currency risk, and the exchange rate has remained stable and the Company is expecting it be in the
same range in foreseeable future, rising inflation is exerting pressure on margins despite the strong
growth. To counteract the impact on margins, the Company is actively optimizing and rationalizing
costs, improving efficiencies, and negotiating rates when renewing old contracts. The results of
these efforts have started to reflect in this quarter and are expected to continue going forward.

With a solid pipeline in place and a strong backlog for the upcoming quarters, the Company is
well-positioned to sustain future growth. This foundation is expected to ensure consistent
performance in the periods ahead.

Leveraging its strong regional presence, the Company has formed strategic partnerships with
major players like Microsoft, signing agreements that are expected to generate new leads,
accounts, and offerings. This presence has also attracted additional partners, opening up more
business opportunities. Since much of the Company’s business is partner-led, it is actively
collaborating with other partners beyond Microsoft.

The Company is strategically transitioning towards offering AI as a Service, aligning with

technological advancements. This move aims to capitalize on the increasing demand for AI-driven
solutions and position the Company as a leader in industry innovation. The Company is building
accerlerators for specific industries like BFSI, Pharma and will use these as references.

The Company’s geographic diversification continues to strengthen its resilience and growth
prospects. The European market has shown stable growth, while the previously flat US market has
begun contributing positively and the Company is expecting similar momentum in 2025 as well. The
Middle East remains a key growth driver, with a focus on expanding enterprise customers and
deepening market penetration. Meanwhile, the Company has strategically reduced its focus on the
domestic market, with unprofitable contracts in Pakistan nearing completion, expected to improve
segment profitability by year-end. Additionally, an increase in exports has further bolstered overall
performance.

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 the hard work and
dedication of all the employees of the Company.

On behalf of the Board,

Asif Peer
Chief Executive Officer
21 October 2024

6
7
 BFSI Telco Technology Retail & CPG Others Total
Un-audited Un-audited Un-audited Un-audited Un-audited Un-audited
Nine months ended 30 September Nine months ended 30 September Nine months ended 30 Septemeber Nine months ended 30 September Nine months ended 30 September Nine months ended 30 September
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
----------------------------------------------------------------------------Rupees--------------------------------------------------------------------------
Revenue - net 14,492,597,421 11,281,788,304 10,928,369,038 7,718,176,265 5,884,511,210 5,407,239,713 5,787,505,709 4,067,480,068 11,216,693,601 8,859,101,451 48,309,676,978 37,333,785,801
Cost of sales (12,038,388,671) (8,979,059,645) (8,067,283,755) (5,135,447,768) (4,266,029,185) (3,540,680,779) (3,897,902,151) (2,600,789,085) (8,529,953,527) (6,593,694,488) (36,799,557,288) (26,849,671,765)
Gross profit 2,454,208,750 2,302,728,659 2,861,085,283 2,582,728,497 1,618,482,025 1,866,558,934 1,889,603,558 1,466,690,983 2,686,740,074 2,265,406,963 11,510,119,690 10,484,114,036

Distribution expenses (447,425,509) (407,848,805) (337,388,181) (322,450,609) (181,670,707) (234,198,464) (178,675,886) (143,249,043) (346,289,537) (353,008,386) (1,491,449,821) (1,460,755,306)
Administrative expenses (1,029,684,605) (801,012,331) (776,449,730) (505,982,265) (418,088,657) (598,028,673) (411,196,513) (385,277,155) (796,934,903) (685,001,043) (3,432,354,408) (2,975,301,467)
Research and development expenses (132,929,000) (88,718,833) (36,510,980) (32,358,760) (19,415,797) (22,670,067) (17,751,691) (17,053,071) (13,570,233) (37,133,836) (220,177,701) (197,934,567)
(1,610,039,114) (1,297,579,969) (1,150,348,891) (860,791,634) (619,175,162) (854,897,204) (607,624,090) (545,579,269) (1,156,794,673) (1,075,143,264) (5,143,981,930) (4,633,991,340)
Profit / (loss) before taxation and
unallocated income and expenses 844,169,636 1,005,148,690 1,710,736,392 1,721,936,863 999,306,863 1,011,661,730 1,281,979,468 921,111,714 1,529,945,401 1,190,263,699 6,366,137,760 5,850,122,696

Other operating expenses (147,022,966) (383,056,960)

Other income (excluding exchange gain) 696,769,864 378,543,030
Exchange (loss) / gain (396,414,465) 2,638,436,427
Share of loss from associates (56,369,952) (284,050,620)
Finance cost (384,501,227) (653,875,388)
Profit before taxation and Levy 6,078,599,015 7,546,119,186
Levy (335,529,128) (355,184,047)
Profit before taxation 5,743,069,887 7,190,935,139
Taxation (311,240,669) (44,123,335)
Profit after taxation 5,431,829,218 7,146,811,804

North America Europe Middle East & Africa Asia Pacific Pakistan Total
Un-audited Un-audited Un-audited Un-audited Un-audited Un-audited
Nine months ended September Nine months ended September Nine months ended September Nine months ended September Nine months ended September Nine months ended September
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
----------------------------------------------------------------------------Rupees--------------------------------------------------------------------------
Revenue - net 10,389,288,519 9,180,326,957 2,113,647,503 1,398,585,225 27,954,460,718 19,239,209,117 1,755,816,336 785,642,470 6,096,463,901 6,730,022,032 48,309,676,979 37,333,785,801
Cost of sales (6,969,558,628) (5,573,823,209) (1,370,242,480) (827,901,659) (21,278,675,312) (13,897,241,742) (1,145,480,935) (496,669,824) (6,035,599,933) (6,054,035,330) (36,799,557,288) (26,849,671,765)
Gross profit 3,419,729,891 3,606,503,748 743,405,024 570,683,566 6,675,785,406 5,341,967,375 610,335,402 288,972,646 60,863,968 675,986,702 11,510,119,691 10,484,114,036

Distribution expenses (217,403,061) (81,471,398) (43,570,418) (12,572,855) (998,762,809) (997,434,911) (146,917,821) (48,217,815) (84,795,712) (321,058,328) (1,491,449,821) (1,460,755,307)
Administrative expenses (887,528,857) (1,078,365,142) (177,872,397) (153,685,425) (2,062,898,308) (1,504,050,963) (66,592,389) (57,951,279) (237,462,457) (181,248,657) (3,432,354,408) (2,975,301,466)
Research & develpoment expenses (93,345,357) (75,019,850) (18,707,631) (11,492,085) (63,787,399) (58,315,153) (7,928,968) (7,876,197) (36,408,347) (45,231,283) (220,177,701) (197,934,567)
(1,198,277,274) (1,234,856,390) (240,150,446) (177,750,365) (3,125,448,516) (2,559,801,027) (221,439,177) (114,045,291) (358,666,516) (547,538,268) (5,143,981,930) (4,633,991,340)
Profit / (loss) before taxation and
unallocated income and expenses 2,221,452,617 2,371,647,358 503,254,577 392,933,201 3,550,336,890 2,782,166,348 388,896,225 174,927,355 (297,802,547) 128,448,434 6,366,137,761 5,850,122,696

Other operating expenses (147,022,966) (383,056,960)

Other income (excluding exchange gain) 696,769,864 378,543,030
Exchange (loss) / gain (396,414,465) 2,638,436,427
Share of loss from associates (56,369,952) (284,050,620)
Finance cost (384,501,227) (653,875,388)
Profit before taxation and Levy 6,078,599,016 7,546,119,186
Levy (335,529,128) (355,184,047)
Profit before taxation 5,743,069,888 7,190,935,139
Taxation (311,240,669) (44,123,335)
Profit after taxation 5,431,829,219 7,146,811,803

2023 2024 2023 2024

28.1% 23.8% 31.3% 25.5%

14.6% 12.9% 20.8% 15.4%

18.2% 15.40% 23.2% 17.9%

20.2% 12.6% 30.6% 16.2%

19.1% 11.2% 29.2% 15.0%

84.9% 93.1% 74.1% 73.1%

23.9% 14.9% 26.0% 13.6%

2.05 2.56 2.49 3.48

1.38 1.53 2.13 2.75

102 130 151 190

12:88 05:95 14:86 04:96

14.50 16.17 16.60 21.15

8
 %
29 37,333,785,801 48,309,676,979
10 10,484,114,036 11,510,119,690
14 5,467,065,736 6,219,114,795
-24 7,146,811,803 5,431,829,219
-25 24.57 18.54
-24 24.38 18.44

378,543,030 696,769,864

2,638,436,427 (396,414,465)

3,016,979,457 300,355,399

Consolidated - Revenue - (PKR Mn.) Consolidated - Opera�ng Profit (PKR Mn.)

48,310
6,219
CAGR - 62% 37,334 CAGR - 44% 5,467

20,145 4,045

2,316
10,524
7,069 1,431

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

Consolidated - Net Profit (PKR Mn.) Consolidated - EPS - Basic (Rupee)

7,147 24.57
CAGR - 35% CAGR - 33% 18.47
18.54
5,116 5,432

9.29
2,522
1,616 5.98

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

9
 %
21 23,075,540,270 27,923,948,435
-1 7,213,652,077 7,131,924,355
-10 4,802,075,600 4,321,215,190
-38 6,730,022,690 4,196,672,056
-38 23.14 14.33
-38 22.96 14.25

371,680,351 639,054,140

2,386,235,698 (210,354,458)

2,757,916,049 428,699,682

Unconsolidated - Revenue (PKR Mn.) Unconsolidated - Opera�ng Profit (PKR Mn.)

CAGR - 51% 4,802

27,924 CAGR - 34%
4,321
23,076 3,445

14,798 2,033

8,130 1,350
5,360

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

Unconsolidated - Net Profit(PKR Mn.) Unconsolidated - EPS Basic (Rupee per share)
6,730
CAGR - 28% CAGR - 26%
23.14
4,816
17.39
4,197
14.33
2,310
8.40
1,565 5.73

2020 2021 2022 2023 2024 2020 2021 2022 2023 2024

10
11
CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT SEPTEMBER 30, 2024

Un-audited Audited
September 30 December 31,
Note 2024 2023
ASSETS Rupees Rupees

Non-current assets
Property and equipment 5 3,414,876,975 3,509,622,717
Intangibles - 3,377,286
Long term investments 6 8,198,809,826 8,112,953,916
Right-of-use assets 396,852,361 510,157,034
Long term loans 615,838,987 528,345,079
Deferred employee benefits 214,158,748 182,065,727
Long term deposits 41,537,295 71,792,327
Deferred taxation - net 26,027,317 36,096,850
12,908,101,509 12,954,410,936

Current assets
Contract assets - unsecured 2,058,791,046 1,856,838,544
Trade debts - unsecured 7 17,361,564,434 16,198,145,227
Loans, advances and other receivables 3,203,594,048 2,164,085,964
Current portion of deferred employee benefits 87,369,642 67,157,471
Trade deposits and short term prepayments 307,987,494 356,576,667
Income tax refunds due from the Government 26,042,375 115,592,551
Derivative financial instruments 6,534,275 -
Short term investments 8 2,764,952,521 1,159,419,112
Interest accrued 31,802,152 3,096,777
Cash and bank balances 1,292,460,532 1,441,973,473
27,141,098,519 23,362,885,786
TOTAL ASSETS 40,049,200,028 36,317,296,722

EQUITY AND LIABILITIES

Share capital and reserves

Authorized share capital
400,000,000 (December 31, 2023: 400,000,000) ordinary shares of Rs 10 each 4,000,000,000 4,000,000,000

Issued, subscribed and paid-up share capital 2,923,816,489 2,914,213,989

Capital reserves 5,974,281,518 5,411,992,547
Revenue reserve: Un-appropriated profit 21,834,972,794 19,387,321,138
30,733,070,801 27,713,527,674
Non-current liabilities
Long term advances - 4,281,065
Lease liabilities 333,186,136 449,798,210
333,186,136 454,079,275
Current liabilities
Trade and other payables 7,122,204,203 5,700,927,809
Unclaimed dividend 30,322,411 18,659,407
Contract liabilities 309,742,304 76,108,859
Short term borrowings - secured 9 1,354,540,375 2,119,000,000
Accrued mark-up on borrowings 8,276,888 96,093,532
Current portion of long term advances 4,974,881 8,395,243
Current portion of lease liabilities 152,882,029 130,504,923
8,982,943,091 8,149,689,773
TOTAL EQUITY AND LIABILITIES 40,049,200,028 36,317,296,722

CONTINGENCIES AND COMMITMENTS 10

The annexed notes 1 to 20 form an integral part of these condensed unconsolidated interim financial statements.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

12
 CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)
FOR THE NINE MONTHS AND THREE MONTHS PERIODS ENDED SEPTEMBER 30, 2024

Nine Months Ended Three Months Ended

September 30, September 30, September 30, September 30,
Note 2024 2023 2024 2023
Rupees
(Restated) (Restated)
Revenue from contracts with customers - net 27,923,948,435 23,075,540,270 9,873,005,925 8,865,092,625
Cost of revenue (20,792,024,080) (15,861,888,193) (7,251,325,354) (5,893,290,099)
Gross profit 7,131,924,355 7,213,652,077 2,621,680,571 2,971,802,526

Selling and distribution expenses (554,362,217) (444,379,138) (181,090,413) (168,559,994)

Administrative expenses (1,786,281,667) (1,647,329,264) (633,950,565) (622,753,083)
Research & development expenses (223,783,744) (197,934,567) (75,268,613) (86,737,793)
Impairment losses on financial assets (246,281,537) (121,933,508) (9,151,726) 1,300,872
(2,810,709,165) (2,411,576,477) (899,461,317) (876,749,998)
Operating profit 4,321,215,190 4,802,075,600 1,722,219,254 2,095,052,528
Other income 11 428,699,682 2,757,916,049 176,630,198 111,714,346
Finance costs (203,504,453) (487,561,393) (33,984,759) (189,247,850)
Profit before taxation and levy 4,546,410,419 7,072,430,256 1,864,864,693 2,017,519,024
Levy (335,529,128) (355,184,047) (120,613,753) (109,404,005)
Profit before taxation 4,210,881,291 6,717,246,209 1,744,250,940 1,908,115,019
Taxation (14,209,235) 12,776,481 (4,139,702) -
Profit for the year 4,196,672,056 6,730,022,690 1,740,111,238 1,908,115,019

Earnings per share 12

-Basic 14.33 23.14 5.95 6.55
-Diluted 14.25 22.96 5.93 6.50

The annexed notes 1 to 20 form an integral part of these condensed unconsolidated interim financial statements.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

13
CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME (UN-AUDITED)
FOR THE NINE MONTHS AND THREE MONTHS PERIODS ENDED SEPTEMBER 30, 2024
Nine months ended Three months ended
September 30, September 30, September 30, September 30,
2024 2023 2024 2023
Rupees Rupees Rupees Rupees

Profit for the period 4,196,672,056 6,730,022,690 1,740,111,238 1,908,115,019

Other comprehensive income:

Items that may be reclassified subsequently to profit or loss - - - -

Items that will not be reclassified subsequently to profit or loss - - - -
- - - -

Total comprehensive income for the period 4,196,672,056 6,730,022,690 1,740,111,238 1,908,115,019

The annexed notes 1 to 20 form an integral part of these condensed unconsolidated interim financial statements.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

14
 CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2024

Issued, Revenue
Capital reserves
subscribed reserve
and paid-up Total equity
Employee
share Share Un-appropriated
compensation
capital premium profit
reserve
---------------------------------------------------------Rupees--------------------------------------------------------

Balance as at December 31, 2022 (audited) 2,904,076,989 4,671,279,664 323,650,758 12,283,429,147 20,182,436,558
Profit for the period - - - 6,730,022,690 6,730,022,690
Other comprehensive income - - - - -

Transactions with owners

Exercise of share options 8,760,000 180,576,770 (70,648,696) - 118,688,074
Share based payments - - 315,133,832 - 315,133,832
Forfeited share options - - (24,407,024) - (24,407,024)
Final dividend for the year ended December 31, 2022 at the rate
- - - (1,455,268,500) (1,455,268,500)
of Rs 5 per share
8,760,000 180,576,770 220,078,112 (1,455,268,500) (1,045,853,618)
Balance as at September 30, 2023 (unaudited) 2,912,836,989 4,851,856,434 543,728,870 17,558,183,337 25,866,605,630

Balance as at December 31, 2023 (audited) 2,914,213,989 4,904,476,367 507,516,180 19,387,321,138 27,713,527,674
Profit for the period - - - 4,196,672,056 4,196,672,056
Other comprehensive income - - - - -

Transactions with owners

Exercise of share options 9,602,500 354,768,040 (166,245,617) - 198,124,923
Share based payments - - 408,770,788 - 408,770,788
Forfeited share options - - (35,004,240) - (35,004,240)
Final dividend for the year ended December 31, 2023 at the rate
- - -
of Rs 6 per share (1,749,020,400) (1,749,020,400)
9,602,500 354,768,040 207,520,931 (1,749,020,400) (1,177,128,929)
Balance as at September 30, 2024 (unaudited) 2,923,816,489 5,259,244,407 715,037,111 21,834,972,794 30,733,070,801

The annexed notes 1 to 20 form an integral part of these condensed unconsolidated interim financial statements.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

15
CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF CASH FLOW (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2024

Nine Months Ended

September 30, September 30,
Note 2024 2023
CASH GENERATED FROM OPERATIONS Rupees Rupees

Cash generated from operations 14 4,641,196,866 2,455,245,689

Finance costs paid (291,321,097) (485,545,052)

Taxes paid (250,118,654) (287,617,905)
(541,439,751) (773,162,957)
Net cash generated from operating activities 4,099,757,115 1,682,082,732

INVESTING ACTIVITIES

Purchase of property and equipment (509,706,304) (1,053,182,899)

Sale proceeds from disposal of property and equipment 48,938,462 26,014,940
Short term investments - net (1,605,533,409) 3,546,069,410
Increase in long term investment - (1,407,183,000)
Profit received on bank deposits 59,103,697 43,309,520
Profit received on short term investment 191,870,163 212,484,541
Interest received on loan to related parties 13,444,549 33,136,071
Net cash generated from / (used in) investing activities (1,801,882,842) 1,400,648,583

FINANCING ACTIVITIES

(Decrease)/ Increase in short term borrowings (764,459,625) 480,000,000

Proceeds from exercise of share options 198,124,923 118,688,074
Payments in respect of leases (95,270,230) (91,457,911)
(Decrease) / Increase in long term advances (7,701,427) 1,991,420
Dividend paid (1,737,357,396) (1,448,234,742)
Net cash (used in) / generated from financing activities (2,406,663,755) (939,013,159)

Net increase / (decrease) in cash and cash equivalents (108,789,482) 2,143,718,156

Net foreign exchange difference (40,723,459) 86,118,406
Cash and cash equivalents at beginning of the period 1,441,973,473 588,569,946
Cash and cash equivalents at end of the period 1,292,460,532 2,818,406,508

The annexed notes 1 to 20 form an integral part of these condensed unconsolidated interim financial statements.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

16
 NOTES TO THE CONDENSED UNCONSOLIDATED INTERIM FINANCIAL
STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS AND THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2024

1. THE COMPANY AND ITS OPERATIONS

1.1 Systems Limited ('the Company') is a public limited Company incorporated in Pakistan under the Companies Act, 2017
('the Act') and is listed on the Pakistan Stock Exchange. The Company is principally engaged in the business of software
development, software and hardware trading and business process outsourcing services. The registered office of the
Company is situated at E-1, Sehjpal Road, Near DHA Phase-VIII (Ex-Air Avenue), Lahore Cantt.

2. BASIS OF PREPARATION

2.1 STATEMENT OF COMPLIANCE

These condensed unconsolidated interim financial statements have been prepared in accordance with the accounting
and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards
as applicable in Pakistan for interim financial reporting comprise of:

- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International
Accounting Standards Board (IASB) as notified under the Act; and

- Provisions of and directives issued under the Act.

Where the provisions of and directives issued under the Act differ from the IAS, the provisions of and directives issued
under the Act have been followed.

2.2 These condensed unconsolidated interim financial statements do 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 for the
year ended December 31, 2023.

2.3 These condensed unconsolidated interim financial statements are the separate condensed unconsolidated interim
financial statements of the Company in which investments in the subsidiary companies namely TechVista Systems FZ-
LLC, Systems Ventures (Private) Limited, TechVista Information Technology W.L.L., Systems Arabia for Information
Technology, SYS Egypt for Information Technology Services, SUS-JV (Private) Limited, National Data Consultant
(Private) Limited, Systems Africa for Information Technologies Pty. Ltd., Sys information Technology Malaysia SDN. BHD,
Sys Bahrain for information Technology W.L.L and System Holdings (Private) Limited and associated company namely E-
Processing Systems B.V have been accounted for at cost less accumulated impairment losses, if any.

2.4 These condensed unconsolidated interim financial statements have been prepared under the historical cost convention
and are presented in Pak rupee, which is also the functional currency of the Company.

3. MATERIAL ACCOUNTING POLICIES

The accounting policies adopted for the preparation of these condensed unconsolidated interim financial statements are
the same as those applied in the preparation of the preceding annual financial statements of the Company for the year
ended December 31, 2023, except as disclosed in note 3.1 to the condensed unconsolidated interim financial statements.

3.1 Standards, amendments and interpretations to approved accounting standards that are effective in current year

Certain standards, amendments and interpretations to International Financial Reporting Standards ('IFRS') are effective
for accounting periods beginning on January 1, 2024, but are considered not to be relevant or to have any significant
effect on the Company's operations (although they may affect the accounting for future transactions and events) and are,
therefore, not detailed in these condensed unconsolidated interim financial statements, except as follows:

3.1.1 During the current period, the Institute of Chartered Accountants of Pakistan ('ICAP') has withdrawn Technical Release
27 'IAS 12, Income Taxes (Revised 2012)' and issued the 'IAS 12, Application Guidance on Accounting for Minimum
Taxes and Final Taxes' ('the Guidance'). Accordingly, in accordance with the Guidance, the Company has changed its
accounting policy to designate the amount calculated on gross amount of revenue or other basis (such as receipts or
other values etc. as provided in law) as a levy within the scope of IFRIC 21/IAS 37. Any excess over the amount
designated as a levy is then recognised as current income tax expense falling under the scope of IAS 12.

3.1.2 During the current period, the management has also reclassed research & development cost which was previously
classified under cost of sales. The management now considers this as a key function for future business expansion.
17
3.1.3 Derivative financial instruments

Derivatives are only used for economic hedging purposes as a forward cover against the Company's specified export
receipts, and not as speculative investments. Derivatives are initially recognised at cost on the date a derivative contract
is entered and they are subsequently remeasured to their fair value using level 2 valuation techniques at the end of each
reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated
as a hedging instrument and, if so, the nature of item being hedged. The company has not designated any derivative
instrument as hedging instrument. These are presented as current assets or liabilities to the extent these are expected to
be settled within 12 months after the end of reporting period. Changes in fair value of any derivative instrument are
recognised immediately in the statement of profit or loss and are included in other operating expenses / income.

3.2 Standards, amendments and interpretations to existing standards that are not yet effective and have not been
early adopted by the Company

There are certain standards, amendments to the accounting standards and interpretations that are mandatory for the
Company's accounting periods beginning on or after July 1, 2024 but are considered not to be relevant or to have any
significant effect on the Company's operations and are, therefore, not detailed in these condensed unconsolidated interim
financial statements.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of these condensed unconsolidated interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets
and liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgements made by management in applying the Company's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the annual audited financial statements of the Company for
the year ended December 31, 2023, except for estimate of provision for taxation as referred to in note 4.1

4.1 Taxation

The provision for taxation for the nine months and three months ended September 30, 2024 has been made using the tax
rate that would be applicable to expected total annual earnings.

Un-audited Audited
September 30, December 31,

Note 2024 2023

5. PROPERTY AND EQUIPMENT Rupees Rupees

Operating fixed assets (5.1) 3,408,416,060 3,509,622,717

Capital work in progress (5.2) 6,460,915 -

3,414,876,975 3,509,622,717

5.1 Operating fixed assets

Opening balance - net book value 3,509,622,717 2,519,968,031

Additions during the period / year - cost (5.1.1) 503,245,389 1,647,837,657
4,012,868,106 4,167,805,688
Less:
Disposals during the period / year - net book value (5.1.2) (36,818,795) (28,372,578)
Depreciation during the period / year (567,633,251) (629,810,393)
Net book value at the end of the period / year 3,408,416,060 3,509,622,717

18
 Un-audited Audited
September 30, December 31,
Note 2024 2023
Rupees Rupees
5.1.1 Additions during the period / year

Building - 160,120,890
Computers 353,480,672 750,001,007
Computer equipment and installations 47,940,902 406,294,033
Other equipment and installations 33,352,010 110,163,624
Generators and transformer - 24,723,737
Furniture and fittings 5,859,120 122,579,968
Vehicles 60,118,200 18,080,710
Office equipment 1,363,490 4,218,725
Leasehold building improvements 1,130,995 51,654,963
503,245,389 1,647,837,657

Accumulated
Cost Net book value
Depreciation
5.1.2 Disposals during the period / year (Rupees)

September 30, 2024: (Un-audited)

Computers 49,764,065 22,297,255 27,466,810
Computer equipment and installations 28,171,061 24,803,183 3,367,878
Furniture and fittings 145,519 141,006 4,513
Vehicles 23,761,700 17,782,106 5,979,594
101,842,345 65,023,550 36,818,795

December 31, 2023: (Audited)

Computers 38,186,587 15,623,194 22,563,393
Computer equipment and installations 6,852,557 4,721,096 2,131,461
Other equipment and installations 7,145,542 4,458,502 2,687,040
Furniture and fittings 695,677 383,800 311,877
Vehicles 3,586,850 2,929,268 657,582
Office equipment 36,298 15,073 21,225
56,503,511 28,130,933 28,372,578

Un-audited Audited
September 30, December 31,
Note 2024 2023
5.2 Capital work in progress Rupees Rupees

Civil Works
Balance at the beginning of the period / year - 161,020,955
Additions during the period / year - 115,360,238
Advance against purchase of property & equipment 6,460,915 -
Transfer to operating fixed assets during the period / year - (276,381,193)
6,460,915 -

19
 Un-audited Audited
September 30, December 31,
Note 2024 2023
6. LONG TERM INVESTMENTS Rupees Rupees
Investment in subsidiaries - at cost - unquoted:
Tech Vista Systems FZ-LLC (6.2) 343,119,550 343,119,550
Systems Ventures (Private) Limited (6.3) 721,100,000 721,100,000
TechVista Information Technology W.L.L. (6.4) 144,568,884 144,568,884
Systems Arabia for Information Technoloy (6.5) - -
SYS Egypt for Information Technology Services (6.6) 113,125,000 113,125,000
Systems Africa for Information Technologies (Pty.) Ltd (6.7) - -
National Data Consultant (Private) Limited (6.8) 4,254,636,725 4,254,636,725
SUS - JV (Private) Limited (6.9) 94,990 94,990
Systems Holdings (Private) Limited (6.10) - -
5,576,645,149 5,576,645,149
Advance against issuance of shares 2,225,191,000 2,225,191,000
Share options issued to employees of subsidiaries 191,030,663 105,174,753
Subscription money payable 4,396,026 4,396,026
7,997,262,838 7,911,406,928
Investment In associate - at cost - unquoted
E-Processing Systems B.V. (6.11) 201,546,988 201,546,988

8,198,809,826 8,112,953,916

6.1 The shareholders of the Company and Systems Ventures (Private) Limited (“SVPL”) in their extra ordinary general
meetings held on September 18, 2023 approved a Scheme of Compromises, Arrangement and Reconstruction (the
'Scheme'). As required under the Companies Act 2017, the Scheme was submitted with the Honorable Lahore High Court
(the “Court”) for their approval and sanction of the Scheme. Consequently, the Court through its Order dated December 20,
2023, sanctioned the Scheme. The scheme stipulates the separation of ownership interests in TechVista Systems FZ- LLC,
Systems Africa for Information Technologies (Pty.) Ltd., SYS Egypt for Information Technology Services and Systems
Arabia for Information Technology (the ‘Transferred Assets’) from the Company and the merger, amalgamation and
transfer to, and vesting in SVPL of the same. SVPL may at its discretion hold the Transferred Assets directly or through any
nominee being its wholly owned subsidiary. SVPL shall allot and issue 66,860,284 fully paid up ordinary shares of Rs 10
each to the Company for the transferred assets. These condensed unconsolidated interim financial statements do not
include the impact of the Scheme as the Company is still in the process of obtaining approvals of the change of sharehold-
ing from the respective corporate regulators as of the reporting date and the effect of this restructuring will be recognized
in the financial statements of the company after the legal ownership of the afore mentioned entities is transferred to SVPL.

6.2 This represents 7,400 fully paid ordinary shares of AED 1,000/- each, representing 100% (December 31, 2023: 7,400 fully
paid ordinary shares of AED 1,000/- each, representing 100%) shares in the 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.

6.3 This represents 72,100,000 fully paid ordinary shares of Rs 10/- each, representing 100% (December 31, 2023:
72,100,000 fully paid shares of Rs. 10/- each, representing 100%) share in Company's subsidiary, Systems Ventures
(Private) Limited, a company set up in Pakistan to invest in new ventures, start ups and incubate new ideas.

6.4 Techvista Information Technology W.L.L. ('TVSQ') is a limited liability company incorporated in the State of Qatar. The
Company owns 34% (December 31, 2023: 34%) share capital in TVSQ. Pursuant to the agreement entered with the
remaining shareholders of TVSQ on February 27, 2022, the Company has obtained all control and management of
TVSQ.

6.5 This represents 2,500 ordinary shares of SAR 10/- each, representing 100% (December 31, 2023: 2,500 ordinary shares
of SAR 10/- each, representing 100%) shares in Company's subsidiary, Systems Arabia for Information Technology, a
company setup in Saudi Arabia for providing IT related services. As of reporting date, no payment has been made against
its share capital.

6.6 This represents 5,000 ordinary shares of USD 100/- each, representing 100% (December 31, 2023: 5,000 ordinary
shares of USD 100/- each, representing 100%) shares in the Company's subsidiary, SYS Egypt for Information
Technology Services, a limited liability company incorporated in the Arab Republic of Egypt on May 29, 2022, for the
purpose of sale of software services and trading software licenses in the Middle East and North Africa region.

20
 6.7 This represents 100 ordinary shares of South African Rand 1/- each, representing 100% (December 31, 2023: 100
ordinary shares of South African Rand 1/- each, representing 100%) shares in the Company's subsidiary, Systems Africa
for Information Technologies (Pty.) Ltd., a limited liability company incorporated in the Republic of South Africa on July 28,
2022, for the purpose of sale of software services and trading software licenses in the region. As of reporting date, no
payment has been made against its share capital.

6.8 This represents 500,000 fully paid ordinary shares of Rs 10/- each, representing 100% (December 31, 2023: 500,000
fully paid ordinary shares of Rs 10/- each, representing 100%) shares in the Company's subsidiary, National Data
Consultant (Private) Limited, which were acquired by the Company on July 05, 2022 through the share purchase
agreement. NdcTech is a company setup in Pakistan engaged in core and digital banking implementation services,
having rich clients in Pakistan, Middle East, Africa and Asia Pacific region.

6.9 This represents 9,499 full paid ordinary shares of Rs 10/- each, representing 94.99% (December 31, 2023: 9,499 full paid
ordinary shares of Rs 10/- each, representing 94.99%) shares in Company's subsidiary, SUS JV (Private) Limited, a
company set up in Pakistan for the Balochistan Land Revenue Management Information System project. The project is
related to digitization of land records and development of a web-based management information system.

6.10 This represents 100 ordinary shares of Rs 10/- each, representing 100% (December 31, 2023: 100 ordinary shares of Rs.
10/- each, representing 100% ) shares in the Company's subsidiary, Systems Holdings (Private) Limited, a limited liability
company incorporated in Pakistan on April 14, 2023, for the purpose of establishing and running data processing centers,
computer centers, software development centers and to provide consultancy and data processing software development
services. As of reporting date, no payment has been made against its share capital.

6.11 This represents 179,507 fully paid ordinary shares at USD 0.01/- each representing 30.9% shares (December 31, 2023:
179,507 fully paid ordinary shares at USD 0.01/- each representing 30.9% shares) in E-Processing Systems B.V
('EPBV'), a company setup in Netherlands. An accumulated impairment of Rs 68.95 million (December 31, 2023: Rs
68.95 million) has been recorded against the cost of investment of Rs 270.50 million (December 31, 2023: Rs 270.50
million).
Un-audited Audited
September 30, December 31,
Note 2024 2023
Rupees Rupees
7. TRADE DEBTS - UNSECURED

Export 13,983,663,966 14,248,389,307

Local 3,637,177,177 2,176,592,717
17,620,841,143 16,424,982,024
Less: Allowance for expected credit losses (259,276,709) (226,836,797)
17,361,564,434 16,198,145,227

8. SHORT TERM INVESTMENTS

At fair value through profit or loss
- Mutual fund units 2,509,952,521 877,419,112

At amortized Cost
- Term deposits receipts (TDRs) 255,000,000 282,000,000
2,764,952,521 1,159,419,112

9. SHORT TERM BORROWINGS - SECURED

Export Refinance (ERF)

MCB Bank Limited (9.1) - 400,000,000
Habib Metropolitan Bank Limited (9.1) - 1,400,000,000
Habib Bank Limited (9.1) - 319,000,000
- 2,119,000,000
Export Refinance (ERF)
Habib Metropolitan Bank Limited (9.2) 999,999,620 -
Habib Bank Limited (9.3) 179,999,999 -
21 Bank Al-Habib Limited (9.4) 174,540,752 -
1,354,540,371 -
9.1 This represented the export refinance borrowings amounting (ERF) to Rs. 2,119 million availed from various banks in the
last year. The rate of mark up was SBP rate plus 0.5%. These borrowings were secured against first pari passu charge
over current assets of the Company with 25% margin and first exclusive hypothecation and equitable mortgage charge
over plant, machinery, furniture, fixtures and land. The Company has repaid all ERF borrowings during the period and the
ERF facility remains unutilized as at period end.

9.2 This represents islamic export finance scheme (IEFS) obtained against aggregate sanctioned limit of Rs 2,000 million
during the period. The rate of mark up is SBP rate which is 3% per annum. These borrowings were secured against first
pari passu hypothecation charge of Rs 2,150 million over current assets.

9.3 This represents Export Finance scheme (EFS) availed against the aggregate sanctioned limit of Rs 700 million. The rate
of markup is SBP rate which is 3% per annum. These borrowings are secured against the first pari passu hypothecation
charge over the Company's current assets with a 25% margin.

9.4 This represents Export Finance scheme (EFS) availed against the aggregate sanctioned limit of Rs 500 million. The rate
of markup is SBP rate which is 3% per annum. These borrowings are secured against the first pari passu hypothecation
charge over the Company's current assets with a 25% margin.

10. CONTINGENCIES AND COMMITMENTS

10.1 Contingencies

There is no significant change in the contingencies since the date of preceding published annual financial statements.
10.2 Commitments

10.2.1 Guarantees issued by the financial institutions on behalf of the Company amount to Rs. 707.37 million (December 31, 2023: Rs
524.65 million). This includes guarantees of Rs 77.38 million (December 31, 2023: Rs 77.38 million) given on behalf of UUS Joint
Venture (Private) Limited, a joint operation of the Company.

10.2.2 The Company has commitments in respect of short-term lease rentals against properties of Rs 30.26 million (December 31, 2023:
Rs 29.07 million).
Un- Audited Un- Audited
Nine months ended Three months ended
September 30, September 30, September 30, September 30,
2024 2023 2024 2023
Rupees Rupees Rupees Rupees
11. Other Income

Income from financial assets:

Profit on deposit accounts 59,103,698 43,309,521 15,970,714 16,792,563

Profit on short term investments 192,416,362 213,985,944 104,531,808 18,877,072
Exchange gain (210,354,458) 2,386,235,698 11,514,957 30,719,495
Gain on derivative instrument 6,534,275 - 622,417 -
Effect of discounting of long term loans 91,974,919 64,037,098 28,670,482 25,360,907
Interest on loan to subsidiaries 268,363,655 37,438,094 11,125,137 12,164,652

Income from non-financial assets:

Gain on disposal of property and equipment 12,119,667 2,931,702 1,101,058 3,619,855
Others 8,541,564 9,977,992 3,093,625 4,179,802
428,699,682 2,757,916,049 176,630,198 111,714,346

12. EARNINGS PER SHARE

Profit for the period (rupees) 4,196,672,056 6,730,022,690 1,740,111,238 1,908,115,019

Weighted-average number of ordinary
shares outstanding during the period 292,922,781 290,900,898 292,348,476 291,281,501

Basic (rupees) 14.33 23.14 5.95 6.55

Diluted earnings per share:

Profit for the period (rupees) 4,196,672,056 6,730,022,690 1,740,111,238 1,908,115,019

Weighted-average number of ordinary

shares - basic 292,922,781 290,900,898 292,348,476 291,281,501
Effect of share options 1,595,756 2,280,588 1,048,454 2,227,577
294,518,537 293,181,486 293,396,930 293,509,078

Diluted (rupees) 14.25 22.96 5.93 6.50

22
 13. TRANSACTIONS WITH RELATED PARTIES

The related parties of the Company comprise subsidiaries, associated companies, companies in which directors are interested, staff retirement funds, key management personnel and
directors. All transactions with related parties have been carried out on mutually agreed terms and conditions. Transactions with related parties are as follows:

Un-audited
Nine Months Ended
September 30, September 30,
Undertaking Relation Basis of relationship Nature of transaction 2024 2023
Rupees Rupees

TechVista Systems FZ- LLC Subsidiary Wholly owned Revenue 5,158,584,076 4,125,481,293
Expenses incurred on behalf of the party by
the Company 189,659,948 21,455,907
Expenses incurred on behalf of the Company
by the party 1,121,089,650 386,370,924
Share options issued to employees of the
subsidiary 50,835,707 62,829,188
Consultancy fee by the party - 76,248,274
Payment of licenses made by the party on
behalf of the Company - 522,198,044

E Processing Systems (Private) Limited. Associated company Wholly owned by Associate: Disbursement against loan 12,036,872 26,904,891
E-Processing Systems B.V. Receipts against loan 38,171,895 75,878,219
Finance income on loan 36,980,878 37,801,421
Property and equipment sold to the party
during the period - 4,420,480

SUS-JV (Private) Limited. Subsidiary 94.99% owned subsidiary Disbursement against loan 40,031,414 23,119,191
Receipts against loan 43,602,550 32,204,112
Finance income on loan 658,533 691,261

Visionet Systems Incorporation - USA Associated company Common shareholding of Revenue 8,514,425,804 8,533,540,136
directors Expenses incurred on behalf of the party by
the Company 222,500,666 83,304,386
Expenses incuured on behalf of the
Company by the party 138,566,201 117,139,530

Visionet Canada Associate Common shareholding of Revenue 6,360,687 -

directors

Atclose Associate Common shareholding of Revenue 310,280,397 -

directors

PartnerLinQ Inc. Associate Common shareholding of Revenue 1,095,771,262 -

directors
Expenses incurred on behalf of the party by 6,529,078

Visionet Deutschland GMBH Associated company Common shareholding of Revenue 593,314,983 484,201,669
directors Expenses incurred on behalf of the party by
the Company 4,849,451 16,642,829

Systems Ventures (Private) Limited Subsidiary Wholly owned Expenses incurred on behalf of the party by
the Company 2,241,515 3,375,489
Interest income recorded from the party
231,382,777
Advance given to the party for issuance of
shares -
Ownership interest in Systems International
IT Pte. Ltd. transferred to the party - 818,009,000
Payment made on behalf of the party to
Systems International IT Pte. Ltd. - 1,407,182,000

TechVista Systems Pty. Ltd. Sub-Subsidiary Wholly owned by subsidiary: Revenue 58,579,406 8,244,806
TechVista Systems FZ LLC Expenses incurred on behalf of the party by
the Company 28,250,902 7,553,171

Expenses incurred on behalf of the Company 86,919 -

by the party

Systems Limited Employees' Provident Fund Staff retirement fund Staff retirement fund Contribution 1,043,133,878 690,915,227
Payments made on behalf of the party by the
Company 325,692,122 550,159,260

TechVista Information Technology W.L.L. Subsidiary Management Control Revenue 544,714,358 439,988,588
Share options issued to employees of the
subsidiary 1,713,837 1,194,616
Expenses incurred on behalf of the party by
the Company 21,719,440 42,359,704
Expenses incurred on behalf of the Company
by the party 15,286,976 39,219,181

Visionet EMEA Limited Associated company Common shareholding of Revenue 674,629,012 618,548,411
directors

23
 Un-audited
Nine Months Ended
September 30, September 30,
Undertaking Relation Basis of relationship Nature of transaction 2024 2023
Rupees Rupees

Visionet EMEA Limited Associated company Common shareholding of

Expenses incurred on behalf of the party by
the Company 64,132,470 2,827,147
Expenses incurred on behalf of the party by
the Company 7,242,526 117,723

National Data Consultant (Private) Limited Subsidiary Wholly owned Share options issued to employees of the
subsidiary - 5,796,246
Expenses incurred on behalf of the party by
the Company 408,029,019 693,303,337
Expenses incurred on behalf of the Company
by the party - 398,500

Systems Arabia for Information Technoloy Subsidiary Wholly owned Revenue 1,903,394,948 902,548,993
Share options issued to employees of the
subsidiary 18,631,858 6,001,514
Expenses incurred on behalf of the party by
the Company 270,342,418 46,317,691
Expenses incuured on behalf of the
Company by the party 11,946,502 89,860,796

Treehouse Consultancy LLC Sub-Subsidiary Wholly owned by subsidiary:

TechVista Systems FZ LLC Revenue - 37,620,739

Sys Bahrain for Information Sub-Subsidiary Wholly owned by sub- Revenue 77,166,374 -
Technology W.L.L subsidiary: Systems
International IT Pte. Ltd.

Expenses incurred on behalf of the party by 14,278,154 -

the company

Sys Information Technology Malaysia SDN BHD. Sub-Subsidiary Wholly owned by sub- Revenue 5,205,214 -
subsidiary: Systems
International IT Pte. Ltd.
Systems Africa for Information Technologies Pty. Subsidiary Wholly owned Revenue 3,828,293 95,771,407
Ltd. Expenses incurred on behalf of the party by
the Company 2,056,978 5,196,452
Share options issued to employees 1,583,663 786,810

Systems APAC for Information Technology Pte. Sub-Subsidiary Wholly owned by sub- Revenue 655,204,360 157,746,376
Ltd. subsidiary: Systems Expenses incurred on behalf of the party by
International IT Pte. Ltd. the Company 46,322,786 15,574,458
Share options issued to employees of the
subsidiary 11,314,338 -

Expenses incurred on behalf of the Company 128,076,566

by the party
Systems International IT Pte. Ltd. Subsidiary Wholly owned by subsidiary: Advance given to the party for issuance of
Systems Ventures (Private) shares - -
Limited Expenses incurred on behalf of the party by
the Company - 1,025,730

SYS Egypt for Information Technology Services Subsidiary Wholly owned Revenue 26,277,243 -
SYS Egypt for Information Technology Services Subsidiary Wholly owned Expenses incurred on behalf of the party by
the Company 2,171,971 2,869,427

Expenses incurred on behalf of Company by

the party 3,622,168 1,284,806
Share options issued to employees of the
subsidiary 1,776,507 492,560

National Data Consultancy Sub-Subsidiary Wholly owned by sub-

FZE subsidiary: Systems Revenue 739,614,560 822,223,475
International IT Pte. Ltd.
Expenses incurred on behalf of the party by
77,912,074 -
the company

24
 Un-audited
Nine Months Ended

September 30, September 30,

Note 2024 2023
(Rupees)

14. CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 4,546,410,419 7,072,430,256

Adjustments for:
Depreciation of property and equipment (5.1) 567,633,251 423,221,863
Depreciation of right-of-use asset 114,339,935 113,504,723
Amortization of intangibles 3,377,286 7,594,299
Share based payment expense 202,054,728 136,128,316
Impairment loss / (Reversal of impairment loss) on financial assets
- Contract assets - unsecured - 13,730,425
- Trade debts - unsecured 244,061,537 108,203,083
Security deposits written off 2,220,000 -
Finance costs 203,504,453 487,561,393
Effect of discounting of long term loans (91,974,919) -
Exchange (gain) / loss 210,354,458 (2,386,235,698)
Gain on derivative financial instruments (6,534,275) -
Profit on short term investments (192,416,362) (213,985,944)
Profit on bank deposits (59,103,698) (43,309,521)
Interest on loan to related parties (268,363,655) (37,438,094)
Loss / (Gain) on disposal of property and equipment (12,119,667) (2,931,702)
917,033,072 (1,393,956,857)
5,463,443,491 5,678,473,399
Working capital changes
Long term deposits 30,255,032 (6,736,980)
Contract Assets - unsecured (201,952,502) (1,049,072,374)
Trade debts - unsecured (1,577,111,743) (2,582,278,771)
Loans paid to employees - net (47,824,181) (334,145,980)
Advances and other receivables (729,112,243) (871,940,286)
Trade deposits and short term prepayments 48,589,173 (750,730,878)
Trade and other payables 1,421,276,394 2,516,406,774
Contract liabilities 233,633,445 (144,729,215)
(822,246,625) (3,223,227,710)

Cash generated from operations 4,641,196,866 2,455,245,689

25
15. FINANCIAL RISK MANAGEMENT
The Company's financial risk management objective and policies are consistent with those disclosed in the preceding annual
audited financial statements for the year ended December 31, 2023.

15.1 Fair values of financial assets and liabilities

The carrying values of other financial assets and financial liabilities reflected in these condensed unconsolidated interim financial
statements approximate their fair values. Fair value is determined on the basis of objective evidence at each reporting date.
Un-audited
September 30, 2024
At fair value
through profit or At amortized cost Total
loss
15.2 Financial instruments by categories (Rupees)

Financial assets
Interest free loans to employees - 615,838,987 615,838,987
Contract assets - unsecured - 2,058,791,046 2,058,791,046
Trade debts - unsecured - 17,361,564,434 17,361,564,434
Trade deposits - 41,537,295 41,537,295
Loans advances & other receivables - 3,203,594,048 3,203,594,048
Short term investments 2,509,952,521 255,000,000 2,764,952,521
Interest accrued - 31,802,152 31,802,152
Cash and bank balances - 1,292,460,532 1,292,460,532
2,509,952,521 24,860,588,494 27,370,541,015
Financial liabilities
Lease liabilities - 486,068,165 2,750,000,000
Mark-up accrued on short term borrowings - 8,276,888 13,702
Short term borrowings - secured - 1,354,540,375 1,354,540,375
Unclaimed dividend - 30,322,411 30,322,411
Trade and other payables - 7,122,204,203 7,122,204,203
- 9,001,412,042 8,507,080,691

Audited
December 31, 2023
At fair value
through profit or At amortized cost Total
loss
(Rupees)
Financial assets
Interest free loans to employees - 712,111,946 712,111,946
Contract assets - unsecured - 1,856,838,544 1,856,838,544
Trade debts - unsecured - 16,198,145,227 16,198,145,227
Trade deposits - 194,415,504 194,415,504
Loans to related parties - 239,828,941 239,828,941
Other receivables - 1,452,856,881 1,452,856,881
Short term investments 877,419,112 282,000,000 1,159,419,112
Interest accrued - 3,096,777 3,096,777
Cash and bank balances - 1,441,973,473 1,441,973,473
877,419,112 22,381,267,293 23,258,686,405

Financial liabilities
Lease liabilities - 580,303,133 580,303,133
Mark-up accrued on short term borrowings - 5,626,922,827 5,626,922,827
Short term borrowings - secured - 18,659,407 18,659,407
Unclaimed dividend - 2,119,000,000 2,119,000,000
Trade and other payables - 96,093,532 96,093,532
- 8,440,978,899 8,440,978,899

26
 16. 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.

Level 1 Level 2 Level 3 Total

(Rupees)
As at September 30, 2024 (Un-audited)
Fair value through profit and loss
- Mutual Fund units - 602,908,759 - 602,908,759

As at December 31, 2023 (Audited)

Fair value through profit and loss
- Mutual Fund units 877,419,112 - - 877,419,112

17. EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE

There are no subsequent events subsequent to the reporting date.

18. DATE OF AUTHORIZATION FOR ISSUE

These condensed unconsolidated interim financial statements were authorized for issue on 21 October 2024 by the Board of
Directors of the Company.

19. CORRESPONDING FIGURES

A new expense category, 'Research & Development,' has been introduced in the statement of profit and loss. Previously, these
costs were classified under 'Cost of Revenue.' Accordingly, the comparative figures have been restated to reflect this
reclassification, ensuring consistency in presentation and better alignment with the current reporting structure.

There is no other major reclassification except from the above mentioned in these interim financial statements.

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

CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

27
28
CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)
AS AT SEPTEMBER 30, 2024

Unaudited Audited
30 September 31 December
2024 2023
Note Rupees Rupees
ASSETS
Non-current assets
Property and equipment 6 3,657,543,945 3,740,581,192
Intangible 9,981,926,167 10,511,603,969
Long term investments 101,076,588 101,886,235
Investment in Associates 226,089,772 282,459,724
Right-of-use asset 470,942,540 652,229,054
Long term loans 615,838,987 528,345,079
Deferred employee benefits 214,158,748 182,065,727
Long term receivable - unsecured 889,338,259 886,067,903
Long term deposits 41,537,295 265,508,795
16,198,452,302 17,150,747,678
Current assets
Contract assets 10,309,260,117 7,960,461,635
Trade debts 7 14,865,266,882 12,706,815,283
Current portion of long term receivable - unsecured 347,753,824 298,167,633
Loans, advances and other receivables 1,438,869,792 1,819,993,202
Trade deposits and short term prepayments 2,601,399,884 1,060,427,214
Interest accrued 31,802,152 3,096,777
Short term investments 8 2,764,952,521 1,594,725,452
Derivative financial instruments 6,534,275 -
Tax refunds due from the Government 70,650,400 21,768,471
Current portion of deferred employee benefits 87,369,642 67,157,471
Cash and bank balances 4,413,330,405 7,982,850,983
36,937,189,894 33,515,464,121
TOTAL ASSETS 53,135,642,196 50,666,211,799

EQUITY AND LIABILITIES

Share capital and reserves
Authorized share capital
400,000,000 (2023: 400,000,000) ordinary shares of Rs. 10 each 4,000,000,000 4,000,000,000

Issued, subscribed and paid up share capital 2,923,816,489 2,914,213,989

Capital and reserves 8,495,161,774 8,076,144,012
Unappropriated profits 25,021,622,730 21,338,813,911
36,440,600,993 32,329,171,912
Non-controlling interest 2,489,595 2,447,154
36,443,090,588 32,331,619,066
Non-current liabilities
Long term advances 16,869,616 4,281,065
Lease Liability 333,186,136 551,237,073
Other long term liability - unsecured 1,312,088,640 1,818,407,518
Deferred taxation - net - 117,775,797
Provision for gratuity 610,073,217 474,227,448
2,272,217,608 2,965,928,901
Current liabilities
Trade and other payables 8,748,017,910 7,291,830,942
Unclaimed Dividend 30,322,411 18,659,407
Contract Liability 3,038,449,265 4,637,734,357
Mark-up accrued on short term borrowings 8,770,038 96,586,682
Short term borrowings 1,830,731,960 2,119,000,000
Current Portion of lease liability 243,318,054 190,062,090
Current portion of other long term liability 515,749,482 1,006,395,111
Current portion of long term advances 4,974,881 8,395,243
14,420,334,001 15,368,663,832
TOTAL EQUITY & LIABILITIES 53,135,642,196 50,666,211,799
CONTINGENCIES AND COMMITMENTS 10
The annexed notes from 1 to 19 form an integral part of this condensed interim financial information.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

29
 CONSOLIDATED CONDENSED INTERIM PROFIT OR LOSS ACCOUNT (UN-AUDITED)
FOR THE NINE MONTHS AND THREE MONTHS PERIODS ENDED SEPTEMBER 30, 2024

Nine Months Ended Three Months Ended

September 30, September 30, September 30, September 30,
Note 2024 2023 2024 2023
Rupees Rupees Rupees Rupees
(Restated) (Restated)
Revenue from contract with customers - net 48,309,676,979 37,333,785,801 17,286,314,160 14,144,622,403
Cost of sales 36,799,557,288 26,849,671,765 12,907,113,960 10,149,499,020
Gross profit 11,510,119,690 10,484,114,036 4,379,200,199 3,995,123,383

Distribution expenses 1,491,449,820 1,460,755,306 617,417,217 506,171,130

Administrative expenses 3,432,354,408 2,975,301,467 1,267,384,004 1,131,608,366
Research & development expenses 220,177,701 197,934,567 72,244,951 86,737,793
Impairment losses on financial assets 147,022,966 383,056,960 62,302,901 162,526,370
5,291,004,895 5,017,048,300 2,019,349,073 1,887,043,659
Operating profit 6,219,114,795 5,467,065,736 2,359,851,126 2,108,079,724
Other income 11 300,355,399 3,016,979,457 185,824,597 178,692,626
Share of loss from associate 56,369,952 284,050,620 18,000,000 60,554,928
Finance cost 384,501,227 653,875,388 97,406,087 245,733,713
Profit before taxation and levy 6,078,599,016 7,546,119,186 2,430,269,637 1,980,483,710
Levy 335,529,128 355,184,047 15,851,746 140,268,672
Profit before taxation 5,743,069,888 7,190,935,139 2,414,417,891 1,840,215,038
Taxation 311,240,669 44,123,335 225,908,000 (12,735,406)
Profit after taxation 5,431,829,219 7,146,811,803 2,188,509,891 1,852,950,443

Attributable to:
Equity holders of the parent 5,431,786,778 7,146,330,566 2,188,480,345 1,852,800,331
Non-controlling interest 42,441 481,238 29,545 150,113
5,431,829,219 7,146,811,803 2,188,509,890 1,852,950,443

Earnings per share:

Basic earnings per share 12 18.54 24.57 7.49 6.36
Diluted earnings per share 18.44 24.38 7.46 6.31

The annexed notes from 1 to 19 form an integral part of this condensed interim financial information.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

30
CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE
INCOME (UN-AUDITED)
FOR THE NINE MONTHS AND THREE MONTHS PERIODS ENDED SEPTEMBER 30, 2024

Nine Months Ended Three Months Ended

30 September 30 September 30 September 30 September
2024 2023 2024 2023
Rupees Rupees Rupees Rupees

Profit for the period 5,431,829,219 7,146,811,803 2,188,509,891 1,852,950,443

Other comprehensive income

Exchange difference on translation of foreign operations (143,271,209) 1,509,645,934 206,846,470 424,983,614

Total comprehensive income for the period 5,288,558,010 8,656,457,737 2,395,356,360 2,277,934,057

Attributable to:
Equity holders of the parent 5,288,515,569 8,655,976,499 2,395,326,816 2,277,783,944
Non-controlling interest 42,441 481,238 29,545 150,113
5,288,558,010 8,656,457,737 2,395,356,360 2,277,934,057

The annexed notes from 1 to 19 form an integral part of this condensed interim financial information.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

31
32
CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2024

Issued, Capital reserve Revenue reserve

Total equity attributable Non-
subscribed Employee
Share capital Foreign currency Unappropriated to shareholders of controlling Total
and paid up compensation
premium translation reserve profit parent company interest
share capital reserve
------------------------------------------------------------Rupees--------------------------------------------------------------
Balance as at 31 December 2022 (Audited) 2,904,076,990 4,671,279,598 323,650,758 922,282,387 14,104,886,266 22,926,175,999 2,103,542 22,928,279,541
Total comprehensive income for the period - - - - 7,146,811,803 7,146,811,803 481,238 7,147,293,041
Other comprehensive income for the year - - - 1,509,645,934 - 1,509,645,934 - 1,509,645,934
Forfieture of employee stock options - - (24,407,024) - - (24,407,024) - (24,407,024)
Final Dividend @ Rs. 5 per share for the year ended 31 December 2022 - - - - (1,455,268,495) (1,455,268,495) - (1,455,268,495)
Exercise of Share Options 8,760,000 180,576,704 (70,648,696) - - 118,688,008 - 118,688,008
Share based payments - - 315,133,832 - - 315,133,832 - 315,133,832
Balance as at 30 September 2023 (Un-audited) 2,912,836,990 4,851,856,302 543,728,870 2,431,928,321 19,796,429,574 30,536,780,057 2,584,780 30,539,364,836

Balance as at 31st December 2023 (Audited) 2,914,213,989 4,904,476,301 507,516,180 2,664,151,531 21,338,813,911 32,329,171,912 2,447,154 32,331,619,066
Total comprehensive income for the period - - - - 5,431,829,219 5,431,829,219 42,441 5,431,871,660
Other comprehensive income for the year - - - (143,271,209) - (143,271,209) - (143,271,209)
Forfieture of employee stock options - - (35,004,240) - - (35,004,240) - (35,004,240)
Final Dividend @ Rs. 6 per share for the year ended 31 December 2023 - - - - (1,749,020,400) (1,749,020,400) - (1,749,020,400)
Exercise of Share Options 9,602,500 354,768,040 (166,245,617) - - 198,124,923 - 198,124,923
Share based payments - - 408,770,788 - - 408,770,788 - 408,770,788
Balance as at 30 September 2024 (Un-audited) 2,923,816,489 5,259,244,341 715,037,111 2,520,880,322 25,021,622,730 36,440,600,993 2,489,595 36,443,090,588

The annexed notes from 1 to 19 form an integral part of this condensed interim financial information.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOW (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2024

Nine Months Ended

30 September 30 September
Note 2024 2023
Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES

Net cash flows from/(used in) operations 14 1,902,649,706 717,528,974

Finance costs paid (472,317,871) (613,320,388)

Gratuity paid (60,901,755) (100,205,030)
Taxes paid (813,427,523) (431,841,351)
(1,346,647,150) (1,145,366,769)
Net cash flows from/(used in) operating activities 556,002,557 (427,837,795)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment (626,478,019) (1,168,986,545)

Development expenditure (686,885,148) 567,528,313
Proceeds from the disposal of property and equipment 49,604,187 25,357,358
(Increase) / Decrease in long term deposits 223,971,500 (4,660,656)
Disposal / (investment) of short term investments - net (1,170,227,069) 2,370,819,410
Increase in long term investment - (15,440,936)
Profit received on short term investment 194,083,670 212,357,632
Interest received on loan from related parties 13,444,549 37,438,093
Profit received on bank deposits 86,446,738 45,353,113
Net cash flows used in/from investing activities (1,916,039,592) 2,069,765,782

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from exercise of share options 198,124,923 118,688,008

Increase / (Decrease) in short term borrowings (288,268,040) 420,000,000
(Decrease) in long term loan (87,493,908) (185,773,984)
(Decrease) in Lease Liability (134,421,397) (127,455,519)
Dividend paid (1,760,683,404) (1,462,302,253)
Increase in long term advances 9,168,189 28,273,786
Net cash flows used in financing activities (2,063,573,637) (1,208,569,962)

Net (decrease) in cash and cash equivalents (3,423,610,672) (134,170,289)

Net foreign currency exchange difference (145,909,907) 191,148,983
Cash and cash equivalents at beginning of the period 7,982,850,983 5,814,496,232
Cash and cash equivalents at closing of the period 4,413,330,405 5,871,474,926

The annexed notes from 1 to 19 form an integral part of this condensed interim financial information.

(CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

33
 NOTES TO THE CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE NINE MONTHS AND THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2024

1. THE GROUP AND ITS OPERATIONS

1.1 Holding company

The Company is a public limited Company incorporated in Pakistan under the repealed Companies Ordinance 1984 (now Companies Act
2017), and is listed on the Pakistan Stock Exchange. The Company is principally engaged in the business of software development,
trading of software and business process outsourcing services. The head office of the Company is situated at E-1, Sehjpal Near DHA
Phase-VIII (Ex-Air Avenue), Lahore Cantt.

1.2 Subsidiary and sub-subsidiary Companies

1.2.1 TechVista Systems FZ - LLC, a limited liability Company incorporated in Dubai Technology and Media Free Zone Authority, is a 100%
(2023: 100%) owned subsidiary of Systems Limited, Pakistan. The Company is engaged in the business of developing software and
providing ancillary services.

1.2.2 TechVista Systems LLC is a limited liability company registered in the Emirate of Dubai under Federal Law No. 2 of 2015, is 100% (2023:
100%) controlled by TechVista Systems FZ-LLC. The Company is licensed as a software house.

1.2.3 TechVista Manpower LLC (TechVista MP LLC), a sole establishment, duly licensed by Dubai Economic Department, under License No.
800123, is 100% (2023: 100%) controlled by TechVista Systems FZ-LLC.

1.2.4 SUS JV (Private) Limited, a private limited company registered under the Companies Act, 2017 is a 95% (2023: 95%) owned subsidiary of
Systems Limited. The Company is set up for the Balochistan Land Revenue Management Information Systems project. The project is
related to digitization of land records and development of a web-based management information system.

1.2.5 Systems Ventures (Private) Limited, a private limited Company registered under the Companies Act, 2017, incorporated on 11 November
2019, is a 100% (2023: 100%) owned subsidiary of Systems Limited. The Company aims to invest in new ventures, start-ups and incubate
new ideas.

1.2.6 Systems Australia (formerly TechVista Systems Pty Ltd), is a 100% (2023: 100%) owned subsidiary of Techvista Systems FZ LLC and
was incorporated in December 2014 in Australia with the paid up share capital of AUD 1.

1.2.7 Systems Arabia for Information Technology, is a wholly owned subsidiary of Systems Limited and was incorporated in December 2022.
The Company has been setup in Saudi Arabia to provide IT services. As of reporting date, no payment has been made against its share
capital.

1.2.8 SYS Egypt for Information Technology Services, a limited liability company, was incorporated in the Arab Republic of Egypt on May 29,
2022, for the purpose of sale of software services and trading software licenses in the Middle East and North Africa region. The company is
a wholly owned subsidiary of the Systems Limited.

Systems Africa for Information Technologies Pty. Ltd., a limited liability company was incorporated in the Republic of South Africa on July
1.2.9 28, 2022, for the purpose of sale of software services and trading software licenses in the region. The company is wholly owned subsidiary
of the Systems Limited.

1.2.10 National Data Consultant (Private) Limited ('NdcTech'). NdcTech is a company setup in Pakistan engaged in core and digital banking
implementation services, having rich clients in Pakistan, Middle East, Africa and Asia Pacific region.

1.2.11 Treehouse Consultancy LLC is a 100% (2023: 100%) owned subsidiary of TechVista Systems FZ - LLC in Dubai and was acquired in July
2022.

1.2.12 Systems International IT Pte. Ltd.. a limited liability company was incorporated in the Republic of Singapore on May 11, 2022, for the
purpose of sale of software services and trading software licenses in the Asia Pacific region. The company is a wholly owned subsidiary of
Systems Limited.

1.2.13 Systems APAC for Information Technology Pte. Ltd., a limited liability company was incorporated in the Republic of Singapore for the
purpose of sale of software services and trading software licenses in the Asia Pacific region. The Company is a wholly owned subsidiary of
Systems International IT Pte Ltd. with authorized share capital of SGD 1.

1.2.14 NDC Tech APAC Pte. Ltd., is a limited liability company, for the purpose of sale of software services and trading software licenses in the
Asia Pacific region. The Company is a wholly owned subsidiary of Systems International IT Pte Ltd. with authorized share capital of SGD
100.

34
1.2.15 National Data Consultancy FZE, is a limited liability company in Dubai, for the purpose of sale of software services and trading software
licenses in the region. The Company is a wholly owned subsidiary of Systems International IT Pte Ltd. with authorized share capital of AED
150,000.

1.2.16 Techvista Information Technology W.L.L. ('TVSQ'), a limited liability company was incorporated in the State of Qatar on February 27, 2022.
The Holding Company has 100% control and management of TVSQ.

1.2.17 Techvista Systems East Africa Limited, a limited liability company was incorporated in Kenya on 24th May 2023. The company is a wholly
owned subsidiary of Systems International IT Pte Ltd.

1.2.18 Systems Holdings (Pvt) Limited is private company incorporated in Pakistan on 13 April 2023. The company is a wholly owned subsidiary
of Systems Limited.

1.2.19 Sys Bahrain for information Technology W.L.L, is a 100% (2023: Nil) owned subsidiary of Systems International IT Pte. Ltd. incorporated in
February 2023 as a limited liability Company for the purpose of software publishing, computer consultancy and computer facilities
management activities in the Kingdom of Bahrain.

1.2.20 Sys information Technology Malaysia SDN. BHD. is a 100% (2023: Nil) owned subsidiary of Systems International IT Pte. Ltd. incorporated
in Malaysia.
1.2.21 Systems for information Technology QFZ LLC, is a 100% (2023: Nil) owned subsidiary of Systems International IT Pte. Ltd. incorporated in
Qatar.

1.3 Associated Companies

SalesFlo (Private) Limited (formerly Retailistan (Private) Limited), a private limited Company registered under the Companies Act, 2017
and incorporated on January 28, 2015, is a 20% (2023: 20%) owned associate of Systems Limited which provides services of software
designing, development, implementation, maintenance, testing and benchmarking, and to provide internet/web-based applications. The
Group acquired interest in SalesFlo (Private) Limited (formerly Retailistan (Private) Limited) on July 19, 2021 through its wholly owned
subsidiary, Systems Ventures (Private) Limited. Accordingly, the results of SalesFlo (Private) Limited (formerly Retailistan (Private) Limited)
have been accounted for using the equity method of accounting in these consolidated financial statements using consistent accounting
policies of the Holding Company.

E-Processing Systems B.V, a private limited Company, incorporated on October 08, 2021 in Netherlands, is a 30.9% (2023: 30.9%) owned
associate of Systems Limited which is primarily aimed at attracting foreign investment. The results of E-Processing Systems B.V. have
been accounted for using the equity method of accounting in these consolidated financial statements using consistent accounting policies
of the Holding Company.

2. STATEMENT OF COMPLIANCE
2.1 This consolidated condensed interim financial information of the Group for the nine months period ended 30 September 2024 has been
prepared in accordance with the requirements of the International Accounting Standard 34 - Interim Financial Reporting and provisions of
and directives issued under the Companies Act, 2017. In case where requirements differ, the provisions of or directives issued under the
Companies Act, 2017 have been followed.

2.2 This interim financial information is un-audited and is being submitted to shareholders, as required by section 237 of the Companies Act,
2017.

3. BASIS OF PREPARATION
This consolidated condensed interim financial information is not audited and has been prepared in condensed form and does not include
all the information as is required to be provided in full set of annual financial statements. This condensed interim consolidated financial
information should be read in conjunction with the audited financial statements of the Group for the year ended 31 December 2023.

3.1 Consolidated financial statements

This consolidated condensed interim 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 consolidated condensed interim financial information has 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 Group for the year ended 31 December 2023.
5. ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of consolidated 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 2023.

35
 Unaudited Audited
30 September 31 December
Note 2024 2023
Rupees Rupees
6. PROPERTY AND EQUIPMENT

Operating fixed assets 6.1 3,651,083,030 3,740,581,192

Capital work in progress 6.2 6,460,915 -
3,657,543,945 3,740,581,192

6.1 Operating fixed assets:

Opening balance - net book value 3,740,581,192 2,699,160,711
Additions during the period / year - cost 6.1.1 620,017,104 1,786,368,287
4,360,598,296 4,485,528,998
Less:
Disposals during the period / year 6.1.2 37,484,520 34,173,128
Depreciation during the period / year 656,720,523 718,070,542
Exchange differences (15,310,223) 7,295,864
Book value at the end of the period / year 3,651,083,030 3,740,581,192

6.1.1 Additions during the period / year-cost

Land - -
Building - 160,120,890
Computers 430,923,027 855,933,606
Computer equipment and installations 58,654,327 416,996,325
Other equipment and installations 33,352,010 110,673,686
Generator - 24,723,737
Furniture and fittings 10,321,192 143,662,315
Vehicles 84,272,064 18,080,710
Office equipment 1,363,490 4,522,055
Leasehold Improvements 1,130,995 51,654,963
Capital work in progress - -
620,017,104 1,786,368,287

6.1.2 Disposals during the period / year - WDV

Computers 28,132,535 24,906,828

Computer equipment and installations 3,367,878 2,170,791
Other equipment and installations - 4,751,600
Furniture and fittings 4,513 1,657,594
Vehicles 5,979,594 657,582
Office equipment - 28,733
37,484,520 34,173,128

6.2 CAPITAL WORK IN PROGRESS

Advance against purchase of property and equipment 6.2.1 6,460,915 -

6,460,915 -

6.2.1 Balance at the beginning of the period / year - 161,020,955

Additions during the period / year - 115,360,238
Advance against purchase of property & equipment 6,460,915 -
Transfer to operating fixed assets during the period / year - (276,381,193)
Balance at the end of the period / year 6,460,915 -

7. TRADE DEBTS
Considered good - unsecured
Export 11,247,164,122 10,338,403,980
Local 3,950,934,179 2,645,877,618
15,198,098,301 12,984,281,598
Less: Allowance for expected credit losses (332,831,419) (277,466,315)
14,865,266,882 12,706,815,283

8. SHORT TERM INVESTMENTS

Fair value through profit and loss
- Mutual fund units 2,509,952,521 877,419,112
Amortized cost
- Term deposit receipts (TDRs) 255,000,000 717,306,340
2,764,952,521 1,594,725,452

36
 9. OPERATING SEGMENT INFORMATION

9.1 Vertical Segments

The Group has realigned it’s strategy for growth and has started monitoring performance based on industry verticals along with geographical segments. This helps to capture synergies through the cross-selling of technologies and solutions across different verticals This approach allows the Group to
leverage its expertise and capabilities more effectively across various sectors, increasing operational efficiency.

The Group will continue to use geographical segments as well in addition to vertical segments. However, the five primary segments now revolve around industry verticals, reflecting the Group's strategic shift:

• Banking Financial Services & Insurance (BFSI): This segment includes activities related to banking, financial services, and insurance.
• Retail & CPG (Consumer Packaged Goods): This segment encompasses retail operations and consumer goods.
• Technology : This segment includes technology-related solutions, products and services.
• Telco (Telecommunications): This segment involves telecommunications services and technologies.
• Others: This catch-all category remaining segments that don't fall into the specific verticals mentioned above.

BFSI Telco Technology Retail & CPG Others Total

Un-audited Un-audited Un-audited Un-audited Un-audited Un-audited
Nine months ended 30 September Nine months ended 30 September Nine months ended 30 Septemeber Nine months ended 30 September Nine months ended 30 September Nine months ended 30 September
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
----------------------------------------------------------------------------Rupees--------------------------------------------------------------------------
Revenue - net 14,492,597,421 11,281,788,304 10,928,369,038 7,718,176,265 5,884,511,210 5,407,239,713 5,787,505,709 4,067,480,068 11,216,693,601 8,859,101,451 48,309,676,978 37,333,785,801
Cost of sales (12,038,388,671) (8,979,059,645) (8,067,283,755) (5,135,447,768) (4,266,029,185) (3,540,680,779) (3,897,902,151) (2,600,789,085) (8,529,953,527) (6,593,694,488) (36,799,557,288) (26,849,671,765)
Gross profit 2,454,208,750 2,302,728,659 2,861,085,283 2,582,728,497 1,618,482,025 1,866,558,934 1,889,603,558 1,466,690,983 2,686,740,074 2,265,406,963 11,510,119,690 10,484,114,036

Distribution expenses (447,425,509) (407,848,805) (337,388,181) (322,450,609) (181,670,707) (234,198,464) (178,675,886) (143,249,043) (346,289,537) (353,008,386) (1,491,449,821) (1,460,755,306)
Administrative expenses (1,029,684,605) (801,012,331) (776,449,730) (505,982,265) (418,088,657) (598,028,673) (411,196,513) (385,277,155) (796,934,903) (685,001,043) (3,432,354,408) (2,975,301,467)
Research and development expenses (132,929,000) (88,718,833) (36,510,980) (32,358,760) (19,415,797) (22,670,067) (17,751,691) (17,053,071) (13,570,233) (37,133,836) (220,177,701) (197,934,567)
(1,610,039,114) (1,297,579,969) (1,150,348,891) (860,791,634) (619,175,162) (854,897,204) (607,624,090) (545,579,269) (1,156,794,673) (1,075,143,264) (5,143,981,930) (4,633,991,340)
Profit / (loss) before taxation and
unallocated income and expenses 844,169,636 1,005,148,690 1,710,736,392 1,721,936,863 999,306,863 1,011,661,730 1,281,979,468 921,111,714 1,529,945,401 1,190,263,699 6,366,137,760 5,850,122,696

Other operating expenses (147,022,966) (383,056,960)

Other income (excluding exchange gain) 696,769,864 378,543,030
Exchange (loss) / gain (396,414,465) 2,638,436,427
Share of loss from associates (56,369,952) (284,050,620)
Finance cost (384,501,227) (653,875,388)
Profit before taxation and Levy 6,078,599,015 7,546,119,186
Levy (335,529,128) (355,184,047)
Profit before taxation 5,743,069,887 7,190,935,139
Taxation (311,240,669) (44,123,335)
Profit after taxation 5,431,829,219 7,146,811,803

9.2 Geographical segments

North America Europe Middle East & Africa Asia Pacific Pakistan Total
Un-audited Un-audited Un-audited Un-audited Un-audited Un-audited
Nine months ended September Nine months ended September Nine months ended September Nine months ended September Nine months ended September Nine months ended September
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
----------------------------------------------------------------------------Rupees--------------------------------------------------------------------------
Revenue - net 10,389,288,519 9,180,326,957 2,113,647,503 1,398,585,225 27,954,460,718 19,239,209,117 1,755,816,336 785,642,470 6,096,463,901 6,730,022,032 48,309,676,979 37,333,785,801
Cost of sales (6,969,558,628) (5,573,823,209) (1,370,242,480) (827,901,659) (21,278,675,312) (13,897,241,742) (1,145,480,935) (496,669,824) (6,035,599,933) (6,054,035,330) (36,799,557,288) (26,849,671,765)
Gross profit 3,419,729,891 3,606,503,748 743,405,024 570,683,566 6,675,785,406 5,341,967,375 610,335,402 288,972,646 60,863,968 675,986,702 11,510,119,691 10,484,114,036

Distribution expenses (217,403,061) (81,471,398) (43,570,418) (12,572,855) (998,762,809) (997,434,911) (146,917,821) (48,217,815) (84,795,712) (321,058,328) (1,491,449,821) (1,460,755,307)
Administrative expenses (887,528,857) (1,078,365,142) (177,872,397) (153,685,425) (2,062,898,308) (1,504,050,963) (66,592,389) (57,951,279) (237,462,457) (181,248,657) (3,432,354,408) (2,975,301,466)
Research & develpoment expenses (93,345,357) (75,019,850) (18,707,631) (11,492,085) (63,787,399) (58,315,153) (7,928,968) (7,876,197) (36,408,347) (45,231,283) (220,177,701) (197,934,567)
(1,198,277,274) (1,234,856,390) (240,150,446) (177,750,365) (3,125,448,516) (2,559,801,027) (221,439,177) (114,045,291) (358,666,516) (547,538,268) (5,143,981,930) (4,633,991,340)
Profit / (loss) before taxation and
unallocated income and expenses 2,221,452,617 2,371,647,358 503,254,577 392,933,201 3,550,336,890 2,782,166,348 388,896,225 174,927,355 (297,802,547) 128,448,434 6,366,137,761 5,850,122,696

Other operating expenses (147,022,966) (383,056,960)

Other income (excluding exchange gain) 696,769,864 378,543,030
Exchange (loss) / gain (396,414,465) 2,638,436,427
Share of loss from associates (56,369,952) (284,050,620)
Finance cost (384,501,227) (653,875,388)
Profit before taxation and Levy 6,078,599,016 7,546,119,186
Levy (335,529,128) (355,184,047)
Profit before taxation 5,743,069,888 7,190,935,139
Taxation (311,240,669) (44,123,335)
Profit after taxation 5,431,829,219 7,146,811,803

9.2.1 The group has assessed the classfication of each customer in respective geography and made corrections in the above note as a result there will be slight variation when compared with previous reported quarters.

37
 10. CONTINGENCIES AND COMMITMENTS

10.1 Contingencies

10.2 Commitments:

10.2.1 Guarantees issued by the financial institutions on behalf of the group amount to Rs. 1,068.55 million (December 31, 2023: Rs 524.65 million). This includes guarantees of
Rs 77.38 million (December 31, 2023: Rs 77.38 million) given on behalf of UUS Joint Venture (Private) Limited, a joint operation of the Company.

10.2.2 The Company has commitments in respect of short-term lease rentals against properties of Rs 30.26 million (December 31, 2023: Rs 29.07 million).

10.2.3 The Group has issued Performance Guarantee to National Bank of Pakistan Hong Kong against services contract amount USD 13,950 (2023: USD 13,950) and National
Bank of Pakistan Kingdom of Saudi Arabia against services contract USD 25,000 (2023: 25,000).

10.2.4 Guarantees issued by the Holding Company on behalf of E-Processing Systems (Private) Limited to National Bank of Pakistan amount to Rs 100 million (2023: Rs 100
million). Guarantees issued by the Holding Company on behalf of National Data Consultant (Private) Limited to Bank Al Habib Limited amount to Rs 134 million (2023: 134
million).

10.2.5 The Group has received credit facilities from banks to issue advance payment guarantees, performance guarantees and bid bonds for securing IT and software related
projects upto a limit of AED 32.85 million (2023: AED 32.85 million). The credit facilities are secured against the margin account balance kept by the bank along with a
counter guarantee collateral value of AED 32.85 million (2023: AED 32.85 million). The availed amount against these facilities amount to AED 25.98 million (2023: AED
25.98 million).

Nine Months Ended

Un-audited Un-audited
30 September 30 September
2024 2023
Rupees Rupees
11. Other Income

Income from financial assets:

Profit on deposit accounts 86,446,739 45,353,114
Profit on short term investments 222,789,044 218,805,030
Exchange gain / (loss) (396,414,465) 2,638,436,427
Interest on loan to subsidiaries 268,363,655 37,438,094
Gain on derivative financial instrument 6,534,275 -
Effect of dicounting of long term loans 91,974,919 64,037,098
279,694,166 3,004,069,763
Income from non-financial assets:
Gain on disposal of property & equipment 12,119,667 2,931,702
Others 8,541,565 9,977,992
20,661,232 12,909,694
300,355,399 3,016,979,457

Nine Months Ended Three months ended

12. EARNINGS PER SHARE 30 September 30 September
2024 2023 2024 2023
Un-audited Un-audited Un-audited Un-audited

Basic earnings per share

Profit for the period attributable to equity holder of parent 5,431,786,778 7,146,330,566 2,188,480,345 1,852,800,331

Weighted average number of ordinary shares in issue

during the period 292,922,781 290,900,898 292,348,476 291,281,501

Basic - in Rupees 18.54 24.57 7.49 6.36

Diluted earnings per share

Profit for the period attributable to equity holder of parent 5,431,786,778 7,146,330,566 2,188,480,345 1,852,800,331

Weighted-average number of ordinary shares (basic)

292,922,781 290,900,898 292,348,476 291,281,501
Effect of share options 1,595,756 2,280,588 1,048,454 2,227,577
294,518,537 293,181,486 293,396,930 293,509,078

Diluted - in Rupees 18.44 24.38 7.46 6.31

38
13. TRANSACTIONS WITH RELATED PARTIES
Related parties comprise of associated companies, staff retirement fund, directors, key management personnel and also close members of the family of all the
aforementioned related parties. The holding company in normal course of business carries out transactions with related parties. Transactions with related parties other
than remuneration and benefits to key management personnel under the terms of their employment, are as follows:
Unaudited
Nine Months Ended
30 September
Undertaking Relation Nature of Transactions 2024 2023
Rupees Rupees

Revenue 8,709,615,088 8,533,540,136

Visionet Systems Incorporation - USA Associate Expenses incurred on 222,500,666 83,304,386
behalf of the party
Expenses incurred on 138,566,201 117,139,530
behalf of the party

Visionet Systems - UK Revenue 674,629,012 618,548,411

Associate Expenses incurred on
64,132,470 2,827,147
behalf of the party
Expenses incurred on
7,242,526 117,723
behalf of the party
Visionet Deutschland GMBH -
Associate Revenue 593,314,983 484,201,669
Germany
Expenses incurred on
4,849,451 16,642,829
behalf of the party

Visionet Canada Associate Revenue 6,360,687 -

Atclose Associate Revenue 310,280,397 -

PartnerLinQ Inc. Associate Revenue 1,105,015,040 -

Disbursements against
E-Processing Systems (Private) Limited Associate 12,036,872 26,904,891
loan
Receipts agains loan 38,171,895 75,878,219
Interest income on loan 36,980,878 37,801,421
Property & equipment
sold - 4,420,480

Retailistan (Private) Limited Associate Long Term Investment - -

Repayment of safe note - 88,555,000

Staff retirement funds Associate Contribution 1,043,133,878 690,915,227

Payments made on
behalf of the party by 325,692,122
the Company 550,159,260

14. CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation 6,078,599,016 7,546,119,186

Adjustments of reconcile profit before tax to meet cash flows:
Depreciation on property and equipment 656,720,523 456,922,967
Depreciation on right-of-use asset 150,912,938 113,504,723
Amortization of intangible assets 415,013,067 743,218,537
Allowance for expected credit loss 147,022,966 383,056,960
Share based payment expense 373,766,548 315,133,832
Finance cost 384,501,227 653,875,388
Gratuity expense 196,747,524 224,663,293
Share of loss of associate 56,369,952 284,050,620
Interest on loan to subsidiaries (268,363,655) (37,438,094)
Gain on derivative financial instruments (6,534,275) -
Exchange (gain) on translation of export receivables 396,414,465 (2,638,436,427)
Effect of dicounting of long term loans (91,974,919) (64,037,098)
Gain on disposal of property and equipment (12,119,667) (2,931,702)
Gain on short term investments (222,789,044) (218,805,030)
Profit on bank deposits (86,446,739) (45,353,114)
2,089,240,911 167,424,855
Profit before working capital changes 8,167,839,926 7,713,544,040

Effect on cash flow due to working capital changes

(Increase) / decrease in current assets:
Contract assets - Net (2,348,798,482) (3,928,729,977)
Trade debts (2,701,889,031) (2,501,815,990)
Loans, advances and other receivables 381,123,410 (665,852,343)
Employee interest free loans 39,669,727 (84,334,898)
Long term receivable (52,856,614) (196,062,972)
Trade deposits and short term prepayments (1,439,341,108) (3,269,571,244)
(6,122,092,097) (10,646,367,425)
(Decrease) / increase in current liabilities:
Trade and other payables 1,456,186,968 1,968,043,747
Contract Liability (1,599,285,092) 1,114,780,299
(6,265,190,220) (7,563,543,379)
Net cash flows from operations 1,902,649,706 7,696,119,847

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 15. FINANCIAL RISK MANAGEMENT

15.1 Financial risk factors

There is no change in the Group's objectives, policies, procedures for measuring and managing the financial risks including capital management risk,
since the preceding annual financial year ended 31 December 2023.

15.2 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 Group 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

- During the nine months period ended 30 September 2024, there were no transfers between Level 1 and Level 2 fair value measurements.

30 September 2024
Financial Assets at
Financial Assets at
15.3 Financial instruments by categories fair value through Total
amortized cost
P&L
---------------------------- (Rupees) ---------------------------
Financial assets as per balance sheet
Long Term Receivable 889,338,259 889,338,259
Contract assets 10,309,260,117 10,309,260,117
Trade debts 14,865,266,882 14,865,266,882
Loans, advances and other receivables 1,438,869,792 1,438,869,792
Security deposits 2,601,399,884 2,601,399,884
Interest accrued 31,802,152 31,802,152
Short term investments 2,509,952,521 255,000,000 2,764,952,521
Cash and bank balances - 4,413,330,405 4,413,330,405
2,509,952,521 34,804,267,491 37,314,220,012

31 December 2023
Financial Assets at
Financial Assets at
fair value through Total
amortized cost
P&L
---------------------------- (Rupees) ---------------------------

Financial assets as per balance sheet

Long Term Receivable 1,184,235,536 1,184,235,536
Contract assets 7,960,461,635 7,960,461,635
Trade debts 12,706,815,283 12,706,815,283
Loans to related parties 295,152,835 295,152,835
Security deposits 464,132,938 464,132,938
Interest accrued 3,096,777 3,096,777
Other receivables 13,950,526 13,950,526
Short term investments 877,419,112 717,306,340 1,594,725,452
Interest free loans to employees 712,111,946 712,111,946
Cash and bank balances - 7,982,850,983 7,982,850,983
877,419,112 32,040,114,799 32,917,533,911

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 Financial Liabilities
at amortized cost
30 September 2024 31 December 2023
Rupees Rupees
Financial liabilities as per balance sheet
Lease liabilities 576,504,190 741,299,163
Other long term liability - unsecured - 3,831,197,740
Markup accrued on short term borrowing 8,770,038 96,586,682
Short term borrowing 1,830,731,960 2,119,000,000
Unclaimed Dividend 30,322,411 18,659,407
Trade and other payables 8,748,017,910 7,291,830,942
11,194,346,509 14,098,573,934

16. EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE

There are no subsequent events subsequent to the reporting date.

17. DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issuance on 21 October 2024 by the Board of Directors of the Group.

18. CORRESPONDING FIGURES

A new expense category, 'Research & Development,' has been introduced in the statement of profit and loss. Previously, these costs were
classified under 'Cost of Revenue.' Accordingly, the comparative figures have been restated to reflect this reclassification, ensuring
consistency in presentation and better alignment with the current reporting structure

There is no other major reclassification except from the above mentioned in these interim financial statements.

19. GENERAL

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

CHAIRMAN) (CHIEF EXECUTIVE OFFICER) (CHIEF FINANCIAL OFFICER)

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