Octopus Digital : | Digital Limited Transmission of Quarterly Report for the Period Ended 2023-09-30

1

Financial Statements 2023

for the nine months ended September 30, 2023

2

Table of Contents

Corporate Profile
Company Information	03
Interim Director's Report	05
Unconsolidated Financial Statements
Condensed Interim Statement of Financial Position	09
Condensed Interim Statement of Profit and Loss	11
Condensed Interim Statement of Comprehensive Income	12
Condensed Interim Statement of Changes in Equity	13
Condensed Interim Statement of Cash Flows	14
Notes to the Condensed Interim Financial Statements	15

3

Financial Statements 2023

Company Information

Directors

Bakhtiar Hameed Wain	Director / Chairman
Tanveer Karamat	Director / Chief Executive Officer
Asmar Ahmed Atif	Director
Mohammad Shahid Mir	Director
Mohammad Arif Janjua	Director
Adeel Khalid	Director
Saleha Asif	Director
Faisal Nadeem Sheikh	Chief Financial Officer
Ahsan Khalil (ACA-FPFA)	Company Secretary

Audit Committee

Mohammad Shahid Mir	Chairman
Bakhtiar Hameed Wain	Member
Mohammad Arif Janjua	Member

Human Resource &

Remuneration Committee

Mohammad Shahid Mir	Chairman
Bakhtiar Hameed Wain	Member
Tanveer Karamat	Member

Auditors

BDO Ebrahim & Co.

Chartered Accountants

for the nine months ended September 30, 2023

Bankers

Faysal Bank Limited, Pakistan

JS Bank Limited, Pakistan

MCB Islamic Bank, Pakistan

Dubai Islamic Bank, Pakistan

Share Registrar

FAMCO Associates (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.famco.com.pk

Registered Office

The Avanceon Building

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

Legal Advisor

Cheema & Ibrahim

Web Presence

Web Presence

www.octopusdtl.com | www.avanceon.ae www.avanceon.qa

Phone: [phone]

Fax: [phone]

Email:[e-mail]

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

MA Tabba Foundation Building,

First Floor, Gizri Road Block 9,

Clifton Karachi, Sindh 75600

Phone: [phone]

Email: [e-mail]

4

Regional Headquarters -

Middle East

Avanceon FZE - Dubai, UAE

FZS1 BD04 JAFZA P.O. Box 18590

Dubai, United Arab Emirates

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

Avanceon Automation Control WLL

Office No. 12, M Floor, Al-Jaber Engg.

HO Building, P.O. Box 15976, Fox Hills,

Lusail, Doha, Qatar.

Phone: [phone]

Avanceon QFZCO LLC

PA-WH-04, Unit 16

Ras Bufontas Free Zone

Doha Qatar

Phone: [phone]

Email: [e-mail]

Avanceon Saudi Energy Company Riyadh Office

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

Phone: [phone]

Email: [e-mail]

Dammam Office

Avanceon Saudi Energy Company

King Khalid Street, ATCO Building

PO Box 718, Dammam 31421

Kingdom of Saudi Arabia

Phone: [phone]

Email: [e-mail]

5

Financial Statements 2023

for the nine months ended September 30, 2023

Interim Director's Report

Directors of Octopus Digital Limited (the "Company") are pleased to present the Directors' Report for the nine months ended September 30, 2023.

		Nine months ended
		September 30,	September 30,
(Rupees in '000)	2023	2022
Operating results
Revenues	485,645	575,382
Profit before tax	376,547	530,856
Provision for taxation	(34,004)	(29,263)
Profit after taxation	342,543	501,594

Earnings per share for the nine months ended September 30, 2023

The basic earnings per share after tax is Rs. 2.18 (2022: Rs. 3.19)

Operating results commentary

We hereby present the unaudited condensed interim financial statements for the nine months ended September 30, 2023, on behalf of the Board of Directors of the Company.

The performance of the Company closed at Rs 342M PAT which is a decrease of 31.7% against the same period in the preceding year.

Revenues for the nine months are in line with the 3rd quarter Plan. Though revenues are dropped in comparison to the last year due to the timing gap of recognition of service revenues in particular in the territory of Middle East which was incorporated in the 3rd quarter plan. The re-negotiations of certain projects have lagged, to start at the end of the year. The Company is confident to fill the gap of decrease in revenues by the end of the year through subscriptions revenue of its internally developed intellectual properties (IPs) (Software) to industry, and sizable closing spares & services orders in the Middle East region.

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

The standalone profit after tax (PAT) also includes the exchange gains (other than operational income) recorded as of the reporting date. This gain is attributed to the notable increase in the disparity between the US dollar exchange rate, which rose from Rs. 210 to Rs. 289 per US dollar between December 2022 and September 2023. This trend of devaluation would help the Company realize further exchange gain from its international revenue in the upcoming quarter. However, it is to be noted that USD Parity in the reporting quarter is not significant.

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

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Interim Director's Report

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.

For and on behalf of the

BOARD OF DIRECTORS

Tanveer Karamat

October 27, 2023Chief Executive Officer

Lahore, Pakistan.

Asmar Ahmed Atif

Director

7

Financial Statements 2023

for the nine months ended September 30, 2023

8

Octopus Digital Limited

Condensed Interim

Financial Statements

for the nine months ended september 30, 2023

9

Financial Statements 2023

Condensed Interim Statement of Financial Position

as at September 30, 2023

	Un-audited	Audited
(Rupees in '000)	September 30,	December 31,
2023	2022

ASSETS

NON CURRENT ASSETS Property, plant and equipment Assets subject to finance lease Deferred Tax Asset Intengible Assets

Long term advances and deposits

CURRENT ASSETS Stock in trade Trade debts Contract Assets Short term loan

Other Assets and Prepayments Cash and bank balances

10,377

-

9,176

214,891

100

234,544

566

1,515,374

149,788

300,000

309,856

2,473

2,278,056

3,953

-

10,334

119,684

100

134,071

-

1,236,092

95,621

300,000

339,464

20,223

1,991,400

TOTAL ASSETS

2,512,601

2,125,471

for the nine months ended September 30, 2023

Chief Executive Officer Tanveer Karamat

Chief Financial Officer Faisal Nadeem Sheikh