Weir and barrage lecture

1. PRESENTATION OF FINANCIAL
STATEMENTS

2. PRESENTERS
1. Muhammad Taimoor Tariq --2019-EMBA-016
2. Akif Ahmad—2019-EMBA-010
3. Aqil Shaukat—2019-EMBA-014
4. Hassan Hafeez--2019-EMBA-013

3. WE ARE GOING TO DISCUSS THE
FOLLOWING:
1. INTRODUCTION OF IT INDUSTRY IN PAKISTAN.
2. SYSTEMS LIMITED INTRODUCTION.
3. IMPORTANT TERMS TO KNOW
4. FINANCIAL STATEMENT
5. INCOME STATEMENT

4. IT INDUSTRY INTRODUCTION IN PAKISTAN
 Information industry in Pakistan has been growing phenomenally for
the past 10-12 years
 Its tremendous growth can be identified from its contribution to the
economy. IT industry has the potential to expand more in future.
 IT is being used everywhere whether its online shopping, ware housing
data management, banking sector
 IT sector has produced around 18000 jobs in Pakistan
 IT sector share in total export accounts for 3.5 percent which is more
than double from 2006 which was 1.3 percent.

5. SYSTEMS LIMITED

6. SYSTEMS LIMITED INTRODUCTION
 Systems limited is the oldest first software house in Pakistan. Established in 1977.
 Since its establishment, the company successfully completed the 600 projects.
 Company took over Visionet company in USA in 1997. then visionet becomes a part of systems
Limited with the name of Visionet systems.
 Systems limited has its head office in Pakistan duly its operates from different countries as well e.g.
UAE, Africa, Qatar, USA, and Germany.
 Recently company is organizes its introduction session Saudi Arabia on 10th Dec 2019 to target
Saudi’s market as well.
 Systems Limited is a public limited company. It has seven Board of directors.
 Its board of directors as selected by share holders.
 Systems limited is incorporated in Pakistan under the companies Act.2017 and is listed in the Pakistan
Stock Exchange.

7. SUBSIDIARY COMPANIES
 Techvista Systems FZ-LLC a Limited liability company incorporated in Dubai. Technology and
media free zone. Authority of 100% owned subsidiary of Systems Limited. This company is
engaged in the development of software and providing ancillary services.
 Techvista Systems LLC is a Limited liability Company registered in Emirates of Dubai under
Federal Law No.2 of 2015. this is 100% controlled by the Techvista FZ-LLC. This company is
licensed as software house.
 SUS-JV Private Limited, a private limited company registered under the companies Act. 2017 is
a 95% owned subsidiary of system Limited.
 E- Processing of Systems (Private) Limited.
 Systems Venture (Private) Limited, a private limited company registered under the companies.
 Techvista Systems Pvt LTD. Is fully owned and subsidiary of Techvista Systems FZ LLC andIs
incorporated in 2014 in Australia with the paid up share Capital of AUD 1.

8. SYSTEMS LIMITED PROVIDE SOLUTIONS
OF:
 Microsoft Dynamics 365 ERP and CRM.
 Cloud enablement and enterprises Architects.
 AI and Process Automation.
 Digital Commerce and UX Design.

9. SYSTEMS LIMITED PROVIDE SERVICES OF:
 Application Development.
 E-Commerce and Mobility
 Data Warehousing and Business Intelligence.
 Platform upgraded and reengineering.
 Business Process Management.
 Remote DBA.
 QA Testing.
 A smart e payment solution “One Load”.

10. IMPORTANT TERMS TO KNOW

11.  Non-Current Assets represents long term investments that cannot be converted into cash
quickly like land, property, investments in other company, machinery and equipment.
 Current Assets represents cash and other assets that can easily be converted to cash within
a year like accounts receivable, prepaid expenses & any other liquid assets.
 Fixed Assets these assets are purchased for long term use and lies under the heading of
Non-Current Assets.
 Intangibles these assets lack physical touch, in contrast to physical assets like software
license, copyrights & trademarks.
 Deferred Taxation refers to either a positive (asset) or negative (liability) entry on a company's
balance sheet regarding tax owed or overpaid due to temporary differences.
 Trade Debts refers to those customers who owe you money against billed invoices, also
known as accounts receivable.
 Interest Accrued it shows the amount of interest earned on a debt but not yet collected the
earned value.

12. FINANCIAL STATEMENT

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15. INCOME STATEMENT

16. BACK

17. STATEMENT OF PROFIT AND
LOSS

18. 17
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19. STATEMENT OF CASH FLOW

22. NOTES---FINANCIAL POSITION
 Note 4 states that property and Equipment. operating fixed assets capital work in progress.
Description is land free hold, building, computers and mobile sets, other equipment and
installations, generators, furniture and fitting, vehicles, office equipment’s, and Leasehold
improvements.
 Note 5 states that intangibles are computer software and license and software under
development.
 Right of Use assets, set out below are the carrying amount of right of use assets recognized
and the movements during the year. Cost of revenue, distribution expenses, administration
expenses.
 Note 7 states Unbilled revenue and retention money. e.g. export and local.
 Note 8 states trade debits like considered good– unsecured.
 Note 9 states like advances to staff: against salary and against expenses.
 Note 10 states that trade deposits and short term prepayments. E.g. security deposits and
prepayments.
 Note 11 states that other receivables. e.g. receivables for related parties.

23. NOTES – FINANCIAL POSITION
 Note 12 states that short term investment. e.g. fair value through profit and loss—mutual fund unit. Term deposit receipts.
UBL Al Ameen asset Islamic Allocation Fund, Alfalalaha GHP Islamic income fund.
 Note 13 states that Tax refunds due from the government. e.g. Income and sales tax.
 Note 14 Cash and Bank Balances e.g. cash in hand, Current account and saving account.
 Note 15: Issued, subscribed, and paid-up capital.
 Note 16: Capital reserves. Share premium reserve, employee compensation reserve, gain on dilution of interest,
translation reserve on foreign operations.
 Note 17: Long term Advances
 Note 18: Long term Loans, MCB Bank Ltd., Unwinding of interest.
 Note 19: Lease Liability ---Present value of Lease rentals.
 Note 20: Trade and other payables.
 Note 21: creditors, Bills discounted, accrued liabilities, provident fund contribution payables, withholding income tax
payables, sales tax payables, other payables.
 Note 22: Short term borrowings.– MCB, Habib metro polytan bank limited, running finance facility @ NBP, running
finance facility @ Meezan bank limited.

24. NOTES– PROFIT AND LOSS
 Note 24: Revenue on contract with customers ---types of good or services e.g. outsourcing
software trading, software implementation, sale of air-time and related service.
 Note25 : Cost of Revenue– salaries, allowances and amenities, commission paid, E- Link
connectivity charges, printing and stationery, computer supplies, rent, rate and taxes, Electricity,
gas and water. Traveling and conveyance, repair and maintenance, entertainment, insurance,
depreciation, Amortization, depreciation of Right of Use.
 Note 26: Distribution Expenses– Salaries, allowances, and amenities.
 Note 27: Administration Expenses.
 Note 28: other operating expenses---Allowances for ECL’s / provision for doubtful debts.
 Note 29: Other Income– income from financial assets: profit on deposit accounts.
 Note 30: Finance Cost—Markup on guaranteed commission, Markup on short term Borrowing.

25. NOTES– PROFIT AND LOSS
 Note 31: taxation– income tax, current year and prior year.
 Note 32: Geographical segments– North America, middle east, Europe, Pakistan.
 Note 33: transaction with related parties.
 Note 34: Remuneration of CEO, Directors and Executives.
 Note 35: Earning per share- Basic and Diluted.