Octopus Digital : Transmission of Quarterly Report for the Period Ended 31 March 2024

Table Of Content

Corporate Profile
Company Information	02
Interim Director's Report	04
Unconsolidated Financial Statements
Condensed Interim Statement of Financial Position	06
Condensed Interim Statement of Profit and Loss	07
Condensed Interim Statement Of Comprehensive Income	08
Condensed Interim Statement of Changes in Equity	09
Condensed Interim Statement of Cash Flow	10
Notes to the Condensed Interim Financial Statements	11

Consolidated Financial Statements
Condensed Interim Statement of Financial Position	14
Condensed Interim Statement of Profit and Loss	15
Condensed Interim Statement Of Comprehensive Income	16
Condensed Interim Statement of Changes in Equity	17
Condensed Interim Statement of Cash Flow	18
Notes to the Condensed Interim Financial Statements	19

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2		Financial Statements 2024

Company Information

Board of Directors

Director / Chairman

Tanveer Karamat

Director

Adeel Khalid

Director

Mohammad Shahid Mir

Director

Mohammad Arif Janjua

Director

Saleha Asif

Director

Faisal Nadeem Sheikh Ahsan Khalil

Company Secretary

Board Audit Committee

Mohammad Shahid Mir

Chairman

Member

Mohammad Arif Janjua

Member

Human Resource & Renumeration Committee

Mohammad Shahid Mir

Chairman

Member

Tanveer Karamat

Member

Auditors

BDO Ebrahim & Co.

Chartered Accountants

Bankers

Faysal Bank Limited, Pakistan

JS Bank Limited,

MCB Islamic Bank Pakistan

Dubai Islamic Bank

Standard Chartered Bank Pakistan

MCB Investment Mangement LTD.

Share Registrar

(Pvt.) Ltd

8-F, Next to Hotel Faran, Nursery, Block-6, P.E.C.H.S, Shahra-e-Faisal, Karachi. Phone: [phone] Fax No: [phone] www.famcosrs.com

Registered Office

The Avanceon Building

19-KM , Main Multan Road, Lahore 54660, Punjab, Pakistan Phone: [phone] Fax No: [phone] Email: [e-mail]

Legal Advisor

Chima & Ibrahim Advocates and Corporate Counsel

Web Presence

www.octopusdtl.com

www.avanceon.ae

www.avanceon.qa

Headquarters

Lahore, Punjab, Pakistan

The Avanceon Building

19-KM, Main Multan Road, Lahore, 54660 Punjab, Pakistan Phone: [phone] Email: [e-mail]

Regional Headquarters

Karachi, Sindh, Pakistan

First Floor, Gizri Road Block 9,

Phone: [phone]

Email: [e-mail]

Regional Headquarters

- Middle East

Avanceon FZE - Dubai, UAE

N403, Jabel Ali Free Zone (North) Po Box: 18590 Dubai, U.A.E Phone: [phone]

Octopus Digital FZ LLC

DMC5 Dubai Media City, U.A.E. Phone: [phone]

Abu Dhabi, UAE

In Partnership with Ali & Sons

Ali & Sons Bldg., Zayed 2nd Street P.O. Box 915 Abu Dhabi, U.A.E. Phone: [phone]

Doha, Qatar

Engg. HO Building, P.O. Box 15976,

Fox Hills, Lusail, Doha, Qatar.

Phone: [phone]

Avanceon QFZ LLC

PA-WH-04, Unit 16

Ras Bufontas Free Zone Doha Qatar Phone: [phone]

Email: [e-mail]

Avanceon Saudi for Energy Company 3141 Anas Ibn Malik-Al Malqa Dist. Unit no. 718, Riyadh 13521 - 8292 Kingdom of Saudi Arabia

Phone: [phone]

Email: [e-mail]

Trade Mark

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3

Interim Directors'Report

Directors of Octopus Digital Limited (the "Company") are pleased to present the Directors' Report for the 1st quarter ended March 31, 2024.

	For the 1st Quarter ended
	Mar. 31, 2024	Mar. 31, 2023
	----- (Rupees in '000) -----
OPERATING RESULTS (CONSOLIDATED)
Revenues	313,859	94,446
Profit before tax	134,725	262,428
Provision for taxa�on	(10,951)	(19,213)
Profit a�er taxa�on	123,697	243,215
	For the 1st Quarter ended
	Mar. 31, 2024	Mar. 31, 2023
	----- (Rupees in '000) -----
OPERATING RESULTS (STANDALONE)
Revenues	219,902	94,446
Profit before tax	50,437	262,428
Provision for taxa�on	(10,951)	(19,213)
Profit a�er taxa�on	39,486	243,215

EARNINGS PER SHARE (CONSOLIDATED) FOR THE 1st QUARTER ENDED March 31, 2024

The basic earnings per share after tax is Rs. 0.84 (2023: Rs. 1.64)

EARNINGS PER SHARE (STANDALONE) FOR THE 1st QUARTER ENDED March 31, 2024

The basic earnings per share after tax is Rs. 0.27 (2023: Rs. 1.64)

OPERATING RESULTS COMMENTARY

We hereby present the unaudited condensed interim financial statements for the 1st Quarter ended March 31, 2024, on behalf of the Board of Directors of the Company.

The consolidated PAT and standalone PAT closed at Rs 123.7M and Rs 39.5M respectively. This amounts to a decrease of 49.1% and 83.7%. The major reason for this has been the stability of the rupee against the dollar. With exchange rates holding stable this quarter, there was no exchange gain recorded on foreign receivables. Disregarding the exchange gain of Rs 237M recorded in the previous year, the company has improved its performance in Q1 significantly.

On the overall cost side there is a sharp increase mainly attributed to the hiring of senior sales and technical / software team as well as procurement of software and IT services, required for the fulfillment

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4		Financial Statements 2024

of IPs development as was disclosed in the corporate plan at the start of previous year.

Management is confident to achieve the aggressive targeted PO generation for the subscription business and aftermarket support business both in Pakistan and abroad.

COMMUNICATION

Effective communication with our valued shareholders stands as an utmost priority for us. To this end, we meticulously ensure the swift dissemination of financial reports in strict adherence to the prescribed timelines set forth in the Companies Act of 2017.

Furthermore, our commitment to transparency and timeliness is the key for real-time updates concerning the company's operations and the latest financial reports. Moreover, real-time updates on the company's ongoing activities and up-to-date financial reports are available on the company's web site www.octopusdtl.com. On behalf of the Board, the Company would like to take the opportunity to thank all stakeholders for their continued trust and belief in the Company.

	for and on behalf of the BOARD OF DIRECTORS
April 30, 2024	Tanveer Karamat
Lahore, Pakistan	Chief Executive Officer

Asmar Ahmed Atif

Director

www.octopusdtl.com

5

Octopus Digital Limited

Condensed Standalone

Interim Financial Statements

for the first quarter ended March 31, 2024

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6		Financial Statements 2024

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2024

Note

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised capital - 250,000,000 @ Rs. 10 each

Issued, subscribed and Paid up Capital

157,262,502 (2023: 157,262,502) ordinary shares @ Rs. 10 each Share premium

Emplyee Op�ons Reserve

Accumulated (loss)/profit

NON CURRENT LIABILITIES

Long-term Diminishing Musharika

CURRENT LIABILITIES

Trade and other payables

Current por�on of Long-term Diminishing Musharika

Contract Liabili�es

Taxa�on - net

CONTINGENCIES AND COMMITMENTS

5

The annexed notes from 1 to 7 form an integral part of these financial statements.

Un-audited				Audited
Mar 31, 2024				Dec 31, 2023
(Rupees	in '000)	ASSETS
					NON CURRENT ASSETS
2,500,000	2,500,000
					Property, plant and equipment
1,572,625			1,572,625	Long term investments
(294,791)			(294,791)	Deferred Tax Asset
9,264			9,264	Intengible Assets
1,322,864			1,283,378	Long term advances and deposits
2,609,962		2,570,476
			CURRENT ASSETS
11,102			11,102
					Stock in trade
					Trade debts
215,427			180,338	Contract Assets
2,588			2,588	Short term Investment
14,448			12,043	Other Assets and Prepayments
61,761			50,810	Cash and bank balances
294,224		245,778
2,915,288		2,827,356

Un-audited	Audited
Mar 31, 2024	Dec 31, 2023

(Rupees in '000)

24,948		28,534
447,893		447,893
21,056		21,056
312,772		262,064
100		100
806,769		759,646

930624

1,495,400 1,490,622

116,688102,638

15,56310,119

368,547434,349

111,39029,359

2,108,519 2,067,710

2,915,288 2,827,356

Chief Execu�ve Officer

Chief Financial Officer

Director

www.octopusdtl.com

7

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFFIT OR LOSS (UN-AUDITED) FOR THE QUARTER ENDED MARCH 31, 2024

Sales	#
Cost of goods sold	#
Gross profit
Administra�ve and selling expenses	#
Other expense
Other income
Profit / (Loss) from opera�ons
Finance costs	#
Profit / (Loss) for the period
Income tax expense
Profit / (Loss) for the period a�er tax
Earnings/(Loss) per share - basic
Earnings/(Loss) per share - Diluted

for the quarter ended

Mar 31, 2024	Mar 31, 2023
(Rupees in '000)
219,202			94,446
(100,106)			(47,152)
119,096			47,294
54%			50%
(69,269)			(35,839)
(9)			-
619			250,991
(68,659)			215,152
50,437			262,445
-			(17)
50,437			262,428
(10,951)			(19,213)
39,486			243,215
			Restated
0.27			1.64
0.26			1.64

The annexed notes from 1 to 7 form an integral part of these financial statements.

Chief Execu�ve Officer

Chief Financial Officer

Director

www.octopusdtl.com

8

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE QUARTER ENDED MARCH 31, 2024

		for the quarter ended
	Mar 31, 2024	Mar 31, 2023
		(Rupees	in '000)
Profit /(loss) for the period	39,486		243,215
Other comprehensive income	-		-
Total comprehensive income / (loss) for the period
	39,486		243,215

The annexed notes from 1 to 7 form an integral part of these financial statements.

Chief Execu�ve Officer

Chief Financial Officer

Director

www.octopusdtl.com

9		Financial Statements 2024

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE QUARTER ENDED MARCH 31, 2024

	Share Capital
Balance as on January 01, 2023	1,367,500
Net (loss)/profit for the year ended	-
Employee Share Compensa�on Reserve-ESOS	-
15% bonus share issue for the period ended December 31, 2022	205,125
Balance as on December 31, 2023
1,572,625
Net (loss)/profit for the period	-
Dividend Announced for the period	-
Employee Share Compensa�on Reserve-ESOS	-
Balance as on March 31, 2024
1,572,625

			Capital Reserve
	Share		Group				Un-appropriated
	Compensa�on		Restructuring		Share Premium
				Profit / (Loss)
	Reserve		Reserve
	---------------------------		Rupees in '000---------------------------
-	(1,084,000)	789,209	972,695
-	-	-	515,808
9,264	-	-	-
-	-	-	(205,125)
	9,264		(1,084,000)		789,209		1,283,378
-	-	-	39,486
-	-	-	-
-	-	-	-
	9,264		(1,084,000)		789,209		1,322,864

Total

2,045,404

515,808

9,264

-

2,570,476

39,486

-

-

2,609,962

The annexed notes from 1 to 7 form an integral part of these financial statements.

Chief Execu�ve Officer

Chief Financial Officer

Director

www.octopusdtl.com