Telecard Limited Half Yearly Accounts For the period ended 31 December 2014Company Information Board of Directors, Board Audit Committee Human Resource & Remuneration Committee Chief Executive Officer Legal Advisor Chief Financial Officer Company Secretary Banks Registrar and Share Transfer Office Registered Office Corporate Office Mr. Sultan ul Arfeen (Chairman) Mr. Shahid Firoz Mr. Shams ul Arfeen ‘Syed Aamir Hussain (CEO) Mr. Tipu Saeed Khan Mr. Hissan ul Arfeen Mr. Waseem Ahmad Mr. Sultan ul Arfeen (Chairman) ‘MrShahid Firoz Mr. Shams ul Arfeen Mr. Shahid Firoz (Chaitman) Mr. Shams ul Arfeen ‘Syed Aamir Hussain ‘Syed Aamir Hussain (CEO) Mohsin Tayebaly & Co. Mr. Tipu Saeed Khan Mr. Waseem Ahmad KASB Bank Limited Deutsche Bank Faysal Bank Ltd National Bank of Pakistan Silk Bank ‘Summit Bank Jwaffs Registrar Services (Pvt) Ltd 505, 5” Floor, Kashif Centre Shahrah-e- Faisal Karachi 3° Floor, 75 East, Blue Area, Fazal-ulHaq Road, Islamabad Pakistan 7" Floor, World Trade Center, 10- Khayaban-e-Roomi, Clifton, Karachi PakistanTerecagn Directors’ Report ‘The Board of Directors of Telecard Limited is pleased to present the Financial Statements and review of your Company's performance for the period ended 31 December 2014. Review of Current Operations ‘The revenue for the six months was Rs. 546 milion as against the revenue of Rs. 755 milion for the corresponding financial period. The decrease is directly attributable to the decline in international incoming traffic managed under the International Clearing House (ICH). Your ‘company direct cost was 11% lower when compared with similar half of the preceding financial year due to optimal utilization of resources. Company has posted Gross Profit of Rs. 157 milion ‘compared to a Gross Profit of Rs. 318 milion last time. ‘The administrative and distribution cost was 39% lower when compared to last period due to provisioning of certain items and continuous cost conscience approach adopted by the management. Finance cost for the period under review was 19% when compared with similar half of the preceding year due repayment of debts. Consequently, the Loss Before Taxation was Rs. 36.5 millon compared to the Profit Before Taxation Rs. 0.86 million during the time frame of last six months. The loss per share stood at Rs. 0.10 compared to loss of Rs. 0.02 last time. Future Prospects ‘Your Company remains fully focused on enhancing profitable revenue streams, reducing its overall cost base and reviewing loss making units with a view to turn them into profitable segments. Management continues to build on initiatives which strengthen this direction, and is doing so with a sense of purpose and commitment. (On behalf of the Board 27 February 2015+ Randall-A.].S | AUDITORS’ REPORT TO THE MEMBERS ON REVIEW OF CONDENSED INTERIM FINANCIAL INFORMATION Introduction We have reviewed the accompanying condensed interim balance sheet of Telecard Limited (“the Company”) as at December 31, 2014 and the related condensed interim profit and loss aecount, condensed interim cash flow statement and condensed interim statement of changes in equity together with the notes forming part thereof for the six months period then ended (here-in-after referred to as “interim financial formation”). Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this interim financial information based ‘on our review. The figures of the condensed interim profit and loss account for the quarters ended December 31, 2014 and December 31, 2013 have not been reviewed as we are required to review only the ‘cumulative figures forthe six months ended December 31, 2014. ‘Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, Review (of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. Emphasis of matter ‘We draw attention to the matters referred in notes 8.1, 12.1 & 16.1 to the interim financial information for the half year ended December 31, 2014. The ultimate outcome of the legal cases and financial claims, as explained in the above referred notes, cannot presently be determined and accordingly, no provision for any liability and reversal of any financial claim that may result has been made in the interim financial information. Our conclusion is not qualified in respect of these matters. } Q Wooten Vowdlat -% Chartered Accountants Audit Engagement Partner: M Shabbir Kasbat C605 Karachi Dae: 27 FEB 2018‘TELECARD LIMITED. CONDENSED INTERIM UNCONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2014 Dec31, Jun 30, Note 2014 2014 (Un-audited) (Audited) = (Rupees in 000) —— ASSETS: NON-CURRENT ASSETS Property, plant and equipment 4 925.73 1,075,209 Intangible assets 5 _1,724,534 1,815,292 2,650,307 Long term investment 6 341437 341,437 Long term deposits 48,902 56,052 Deferred taxation 375,S08___363,972 SAIGISI 3,651,962 CURRENT ASSETS Stock-in-trade 292 302 Trade debts 66,571 |} 111,465 Loans and advances 22,737 || 20,901 Deposits and prepayment 12931 |} 112,253 ‘Accrued mark-up 7 19.631 29,526 Other receivables 8 | 2,851,897 || 2,778,395, ‘Taxation - net 114,840 |] 104,117 Bank balances 9 |_298,230 ||_307.294 3.487.089 3,464,253, TOTAL ASSETS 6,903,240 _ 7,116,215 “The annexed notes from | to 22 form an integral part of these financial statements. €G05s dl, eye aecorve iconTELECARD LIMITED CONDENSED INTERIM UNCONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2014 Dec31, Jun 30, Note 2014 2014 (Un-audited) (Audited) ~ (Rupees in 000) -—-- EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES. Authorised capital 400,000,000 (2014: 400,000,000) Ordinary shares of Rs.10 each 4,000.000_ __ 4,000,000, Issued, subscribed and paid-up 3,000,000 3,000,000 Unappropriated loss (581,520) __ (551,079) 2,418,480 2,448,921 NON-CURRENT LIABILITIES Long term loans 10 C1875 Redeemable capital n - - ‘Advance from a subsidiary 28,988 96,753 ‘Advance from a contractor 419,466 || 424,915 Long term deposits 45,755 52,385 Deferred liabilities 12 Li.589.702 }|_1,590,341 2,083,911 2,226,269 CURRENT LIABILITIES ‘Trade and other payables 13 [903,957 ] [1,000,701 Acerued interestimark-up 14 | 34s.si8 |] 281,201 Shor term borrowings 93,757 |} 93,787 Short term running finances v7iea1 |] 168,821 Current maturities of long term liabilities 1s |_sss.976 ||__896,s45 7,400,849 2,441,025 Contingencies and commitments 16 - : TOTAL EQUITY AND LIABILITIES e320" 7.116215 The annexed notes from 1 to 22 form an integral part of these financial statements Coes> N ARTELECARD LIMITED CONDENSED UNCONSOLIDATED INTERIM PROFIT AND LOSS ACCOUNT FOR THE HALF YEAR ENDED DECEMBER 31, 2014 (UN-AUDITED) Half-year ended Quarter ended Dec31,—Dee3i,— Dee 3, Dee ST, Note 2014 2013 2014 2013, ~~ (Rupees in 000) (Rupees in 000) ~ Revenue ~ net 545,995 755280 251.611.438.207 Direct costs 17 688,852) 437.711) __ (079.859) __ 223,375) Gross profit 157,143 317,569 71,752 211,832 Distribution costs and administrative expenses 12,352) 211,306)}Hl)__63,908)]|l] 79.978) Other operating expenses «8.971)||||_G8.505) - 8.120) (138.323) || — 249.811) |] — (63.908) || —(115.098) Other income 34618 44209 19,342 15010 CBT, 205502 ASG) (100,085) Operating profit 33,438 112,007 27,186 111,744 Finance costs (89.952) _(UL14) _(44229) (59,060) (Loss)proft before taxation (6514) 866. (17,043) 52,684 Taxation 18 6.073, 6.464) 9.046 15.001) Net (1oss)/profit after taxation Goa 5.598) 7,997 37683 (Loss)/earning per share - basic and diluted (rupees) « (0.02) (0.03) 0.13 ‘The annexed notes from 1 to 22 form an integral part of these financial statements. Ge cum CUTIVE DIRECTORTELECARD LIMITED CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED DECEMBER 31, 2014 (UN-AUDITED) Half-year ended Quarter ended Dec31, —-Decdt, Dec, ‘Dee ST, 2014 2013 2014 2013 (Rupees in 000) (Rupees in 000) —- Net (loss)/profit for the period (30481) (5,598) (7,997) 37,683 Other comprehensive income : - : : Total comprehensive (lossy/income for the period Goat S99, 997) 37,683 ‘The annexed notes from 1 to 22 form an integral part of these financial statements. oot EXECUTIVE 7 / DIRECTOR‘TELECARD LIMITED CONDENSED INTERIM UNCONSOLIDATED CASH FLOW STATEMENT FOR THE HALF YEAR ENDED DECEMBER 31,2014 (UN-AUDITED) f Note 2014 2013 email Saree oo) y Profit before working capital changes 293,096 429,640 Stool ide 10 G7) 4 wall wee Pe is GBs] Ga] eu tae isc pi Tey] — ony 4 Ce eee el) ae 1 capone we mT Se L No ee toner ing fee "ee |L_ Stal ec \ N\ MQ ND gut rXecunive ™ oka,‘TELECARD LIMITED CONDENSED INTERIM UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED DECEMBER 31, 2014 (UN-AUDITED) Issued subseribed LT pal-ap *PPrOprit otal capital (Rupees in 000) ———-—- Balance as at June 30, 2013 3,000,000 (620.448) 2,379,552 Net loss for the period = C598) G95) ther comprehensive income : : = ‘Total comprehensive loss - 5598) (5,598) Balance as at December 31, 2013 000,000 (26,046) Balance as at June 30, 2014 3,000,000 (551,079) 2,448,921 Net loss forthe period = Boas] [ __GOA4N| ‘Other comprehensive income : - : ‘Total comprehensive loss - Gods) 0,441) Balance as at December 31, 2014 3,000,000_ (581,520) __ 2,418,480 The annexed notes from 1 to 22 form an integral part of these financial statements. eons (CHAFF EXECUTIVETELECARD LIMITED NOTES TO THE CONDENSED INTERIM UNCONSOLIDATED FINANCIAL STATEMENTS: FOR THE HALF YEAR ENDED DECEMBER 31, 2014 THE COMPANY AND ITS OPERATIONS ‘Telecard Limited (the Company) was incorporated in Pakistan on October 29, 1992 a8 a public limited ‘company. The shares of the Company are listed on the Karachi and Islamabad Stock Exchanges. The ‘Company itself and through its subsidiary is licensed to provide fully integrated telecommunication services. these include basic wireless telephony, long distance and international services. and payphones, ‘The registered office of the Company is located at World Trade Centre 75-East Blue Area, Fazal-ul- Haq road, Islamabad. The principal place of business of the Company is located at World Trade Centre, 10- Khayaban-e-Roomi, Clifton, Karachi BASIS OF PREPARATION ‘These condensed interim unconsolidated financial statements of the Company for the six months period ended December 31, 2014 have been prepared in accordance with the requirements of Intemational Accounting Standards (IAS) - 34 "Interim Financial Reporting" and provisions of and directives issued under the Companies Ordinance, 1984, in case where requirements differ, the provisions of or directives under the Companies Ordinance, 1984 have been followed. These are required 10 be presented to the shareholders in accordance with Section 245 of the Companies Ordinance, 1984 and condensed interim unconsolidated financial statements do not inelude all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual audited financial statements forthe year ended June 30,2014 ACCOUNTING POLICIES AND ESTIMATES ‘The accounting policies and methods of computation adopted in the preparation of these condensed interim financial statements are same as those applied in preparing. the financial statements for the year ended June 30, 2014 Dee3i, Jun 30, Note 2014 2014 (Unaudited) (Audited) == (Rupees in 000) = PROPERTY, PLANT AND EQUIPMENT Operating fixed assets 4.1 921297 1,071,370 Capital work-in-progress 4476, 3.839 925,773, 1,075,209 foea i 4 Operating fixed assets ‘Opening net book value ‘additions during the period/year Disposals during the period/year ‘Accumulated depreciation on disposals Depreciation charged during the period'year 4.1.1 Details of additions dus are as follows: Owned ‘Apparatus, plant and equipment ‘Computers and related accessories Furniture, fixtures and office equipment Vehicles 4.1.2 Details of de-recognition/disposals made during the current period are as follows: Owned Vehicles INTANGIBLE ASSETS, Wireless local loop license Long distance Intemational license Amortisation todate sa This i Dec 31, Jun 30, Note 2014 2014 (Un-audited) (Audited) ——— (Rupees in 000) 1,071,370 900,481 44d 4299 __ $00,505 7,075,669 1,400,986 42 > 3,006 <= (65,006) 154,372] |_329,616 154372 329,616 921,297, 1,071,370. 2370 486,403 LAT 3,395 458 606 10,101 4299" _ 500.505 51 3345,096 29.029 374,125 1.649.591 124534 3,345,096, 20,029 3374,125 1,558,833) 1,815,292 cludes frequency NTR-II in respect of which the Company has given an option to telecom operator to consider acquiring the same. The amortized cost of the frequency is Rs. 17.215 million, SeeDee3!, — Jun30, Note 2014 201 (Un-audited) (Audited) == (Rupees in 000) ——~ LONG TERM INVESTMENT |In.a wholly owned subsidiaries - unquoted (at cost) 341837 341,837 Available for sale ‘Augere Holdings (Netherlands) B.V Fa060 | [480.630 Impairment allowance 480,630)]|_(480.630) et a ACCRUED MARKUP Due from bank 7148387 $6,700 Mareap on curent scout wih eed pais W631 21413 eae 78115 $7) 4887 et pe 7.1 This represents amount due from a commercial bank in respect of funds raised through Term Finance Certificates held by the said bank since April 20, 2005 whereas mark-up paid to the Company, commenced August 01, 2005. A claim in respect of the above was lodged by the Company with the bank during the year ended June 30, 2005, which is pending settlement inst acerued mark-up due from a bank therewith. During the previous period management has made full provision against the same. Dee31, Jun 30, Note 2014 2014 (Un-audited) (Audited) —— (Rupees in 000) —- OTHER RECEIVABLES Considered good Related partes B78 10.10 Others Pakistan Telecommunication Company Limited Karachi Relief Rebate 81 6S1S41 651,541 ‘Amount withheld by PTCL against PTA-ESCROW 126,108 84,597 Pakistan Telecommunication Authority 8.1 2,050,894 2,022,560 Insurance ela 2368 2350 Claim against a bank 8) 998 ‘998 Due from a contractor 6455 5.167 ‘Others 15 172 . 2851857 — 2,778,395 Coes,10. Dec3t, — Jun30, Note 2014 2014 (Unaudited) (Audited) w= (Rupees in 000) == ‘Considered doubtful Due from PTC! 10361 T0361 Insurance claims 8.628 8.028, LL & LDI charges - under protest payments 200,000 || 200,000 ‘Due from zonal employees 15,874 15,874 Interconnect discount 28,701 28,701, WPS - under protest payments 289,728 || 289,725, Leased lines and upfront connection charges 131517 || 13LS17 Wire line ag712|| 48.712 Muli-metering 18,287 18.287 Others 2.952 2.952 734757 734,757 Provision for other receivables considered doubtful (754,757) __ (954.757) 2ASL8S7_ _ 2,778,395 8.1 ‘There has been no change in the status of logaleasesfinancial claims as reported in the audited financial statements ofthe Company forthe year ended June 30, 2014, BANK BALANCES (Cash at banks: In current accounts Local currency 9.1 [286005 |] [304,706 Foreign currency 410 ‘402 DEGAS 305,108 In savings accounts Local currency 92 9291 303 ‘Cheques in hand 524 1,883, 98.250 307,204 9.1 The bank balances includes an amount of Rs. 281.278 (lune 30, 2014: Rs. 264.921) million representing the 18% share from LDI operators’ manthly revenues obtained through the ICH arrangement. The amount is held in an Escrow account with PTA and the same can be utilized to settle the alleged claim of PTA on account of APC for USF if the decision ofthe Court is against the Company. 9.2 These cary mark-up at rates of 6% (June 30, 2014: 6%) per annum. LONG TERM LOANS. Secured From banks and financial institutions Local currency loan 10111317 184,280 Current maturity of local eurreney loans shown, ‘under current liabilities Is __ gia) __ 02375) ‘875 10,1 There has been no change in the terms and conditions as reported in the audited financial statements of the Company forthe year ended June 30, 2014 Bous>Dee31, Jun 30, Note 2014 2014 (Un-audited) (Audited) -—— (Rupees in 000) —— 11, REDEEMABLE CAPITAL Secured ‘Term Finance Certificates (TFCs) TLL 760,859 792,170 Current maturity of redeemable capital shown under current liabilities Amount overdue (500,66)] [ 271,790) ‘Amount payable in next 12 months 260.190)||__(520.380)} 70), na 1s (760.859) —C ‘This represents listed Term Finance Certificates (TFC) issued by the Company for the purposes of acquiring radio spectrum frequencies from the PTA and expanding/upgrading new WLL network redeemable in ten unequal semi-annual installments, commencing November 2005 with a semi-annual payment of mark-up ata rate of six months KIBOR plus 3.75% per annum with the last coupon payment on November 27, 2010. The issue was restructured on two instances with the consent of TFC holders without penalties. Under the current terms balance ‘amount is repayable in 13 quarterly installments carrying mark-up at the rate of three months KIBOR plus 5.04% withthe last coupon payment on May 27, 2015. These are secured against a first specific charge over the fixed assets of the Company, aggregating to Rs, 800.000 (June 30, 2014: Rs. 800.000) million and specific charge over the intangible assets (frequency spectrum) procured from the PTA. Dec31, Jun 30, Note 2014 2014 (Un-audited) (Audited) —— (Rupees in 000) — 12, DEFERRED LIABILITIES Staff gratuity sii Spectrum fee payable 121 1,585,500, Ra 1,589,702, _ 1,590,341 ‘The matter of Initial Spectrum Fee (ISE) which was pending in the Islamabad High Court (IHC) hhas been settled in the favour of the Company. The IHC allowed installments of ISF as prayed by the Company in Fine with the directive of Ministry of Information Technology (MoI) dated ‘August 30, 2011, Since the installment plan is yet to be communicated to Company by MolT, ‘therefore, Company is unable to determine the current liabilities and present value ofthe same, 600313. Dec31, Jun 30, Note 2014 201d (Un-audited) (Audited) — (Rupees in 000) — ‘TRADE AND OTHER PAYABLES Trade Pakistan Telecommunication Company Limited Wireless Payphone Service (WPS) 13.1 [609,708 | [609,708 LL& LDI charges 38,097 || 43,060 Others 786 803 G51 63ST Interconnect operators TT Ser 13,136 Others 80.35s}|_110.858 92.235, 740,827 Other payables Pakistan Telecommunication Authority 39346 || a1aBS Current account related parties 47518 69.476 Accrued liabilities 59,850 || 95,759 ‘Advances from customers SI SI Unclaimed dividends 7.891 7892 Workers’ welfare fund 2,071 2071 Others 6.403 6.402 763.130, 223.137 903,957 _ 1,000,701 13.1 ‘There has been no change in the status of legal cases/financial claims as reported in the audited financial statements of the Company for the year ended June 30, 2014 ACCRUED INTEREST/MARK-UP. Secured Redeemable capital 14.1 [— 308208 ][_ 250,112 Long term loans 8,743 11,198 ‘Short term running finances 5,615 5.500 322,565 266,810 Unsecured Short term borrowing. 709 137 Current account with related parties 15,859 14.334 722.952 143391 345.518 _ 281,201 14.1 This includes overdue markup amounting to Rs. 297.747 (June 30, 2014: Rs, 239.794) million. CURRENT MATURITIES OF LONG TERM LIABILITIES, Long term loans wo 1317 Redeemable capital (TFC3) 11 760,859 Advance from a subsidiary company 100 85,976 92,375 792,170 12,000 396,545 Coes| 16, CONTINGENCIES AND COMMITMENTS 19. 16.1 There has been no change inthe status of contingencies as reported in the audited financial statements forthe year ended June 30,2014, 16.2 Counter guarantees given to banks. . DIRECT COSTS Interconnect charges [Network media charges [Network site rent [Network site utilities and maintenance Insurance ‘Annual regulatory charges ‘Cost of cards sold Depreciation Monitoring upgradation charges Amortization of intangible assets TAXATION Current Deferred Dee31, Jun 30, mis and (@raudited) (Audied) eo apes in 00) 0.000 __180.000 sata err casa Dees, Dees —Deesl, Deel moe ois aont 0nd tues in 000}-— = pes in 00) —~ sos or 192806 Som ass Barta 79 re, tere (a0) a8 po 4s hase Hash fis aioe 228828 walt Som 7691749 io 3 4 a nenss 157686 4gNe 85639 aes sa) lat as oss 90758 __as370 a9 388,550. 437,711 179.859. 223.375 5.460 7553 2516 4352 (11333) __(1989) __(11;562), __10.649 6073) 668 (9.086) 15.001 ‘TRANSACTIONS WITH RELATED PARTIES ‘The related parties include major shareholders, entities having directors in common with the Company, funders Post fectors and other key management personnel, Transactions with related partes are ases Supernet Limited ‘Services provided by the Company ‘Services provided tothe Company ‘Mark-up charged to the Company ‘Payments made on behalf by the Company’ ‘Markup charged by the Company ‘Telecard E-Solutions (Pyt.) Limited Payments made by the Company Payments made on behalf by the Company Services provided tothe Company Mark-up charged by the Company Services provide by the Company “Telegateway Limited Services provided tothe Company Payments made on behalf by the Company ‘Services provided by the Company ‘Mark-up charged to the Company Glitz Communications (Pvt) Limited Payment made on behalf by the Company ‘Globetech Communications (Pvt. Limited Payment made on behalf by the Company Nexus Communications (Pvt.) Limited Payment made on behalf by the Company’ Entities having directors in common with the Company Arfeen International (Private) Limited Payments made on behalf ofthe Company Rent expenses charged to the Company Mark-up charged by the Company Serviees provided by the Company Payment made on behalf by the Company Markup charged to the Company Envierete Limited Services provided by the Company Payment made on behalf by the Company Com Halleyear ended jee 31, Dee Sie 2014 2013, (Rupees in 000) — 79,149 10.680 285 20 6995 2 6.285, m2, 2,760 8 19 698 488 2,760 193 131 516 122 39 64,588 5.433 4238 1.761 68 3,936 34 1 3,000 » 2 1374 2.760 2,420 17 0‘ U 20, a, 2, Half-year ended Dee3!, Dees 2014 2013, -—— (Rupees in 000) World Trade Centre (Private) Limited Service provided tothe Company’ 14969 19,303 Mark-up charged tothe Company 7090 14983 Services provided by the Company 11 8 Markup charged by the Company 65 : {nstaphone Limited ‘Mark-up charged by the Company 230 230 Instaphone Infrastructure (Private) Limited Service provided to the Company 10037 25,470 Payments made on behalf by the Company 133 884 Mark-up charged tothe Company 2,660 2.089 Services provided by the Comput 9,000 9,000 Payment made by the Company 2631 - Port Grand Limited Service provided by the Company 228 ~ Service provided 1 the Company 100 : Payment made by the Company 100 : Pakcom Limited Service provided by the Company 18 “ Paynvent made on behalf by the Company 168 - CORRESPONDING FIGURES CCenain corresponding figures have been reclassified for the purpose of better presentation, however, there were no material reclassification DATE OF AUTHORISATION FOR ISSUE ‘These finan statements wee authrised for issue on 2A~ Acbeaty “QotS by the Board of Directors an) GENERAL Figures presented in these interim condensed financial statement have been rounded off to the nearest thousand rupees, unless otherwise stated. SS Wis DIRECHOR 5TELECARD LIMITED CONDENSED INTERIM CONSOLIDATED BALANCE SHEET. AS ATT DECEMBER 31,2014 Note ASSETS. NON-CURRENT ASSETS. Fixed assets Property and equipment 4 Iangible asses ‘Long erm deposits Deffred taxation CURRENT ASSETS, ‘Communication stores ‘Stocksin-rade “Trade debts 6 Loans and advances Deposits and prepayments ‘Accrued markup Other receivables 7 “Taxation = net Bank balances TOTAL ASSETS EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Share capi ‘Authorised 400,000,000 2014: 400,000,000) Ordinary shares oflis each Issued, subseribed and paid-up Revenue Reserve Unapproprstd oss NON-CURRENT LIABILITIES Long-erm loans ‘Advance ffom a contractor Long-term deposits Defered liabilities (CURRENT LIABILITIES ‘Trade and otber payebles Acer interes ackeup 9 ‘Short term borrowings ‘Short term running finances (Current maturities of long term Finances 10 CONTINGENCIES AND COMMITMENTS u ‘TOTAL EQUITY AND LIARILITIES December 31, June 30, 2014 2014 “(RS 00) 9973384 1.151204 W077 2 636,906 50,162 197782 22296 2.867.831 219,102 498.019, sia 2,778,287 "208210 42913 si7, St 100000, 400,000, 3,q00000 3,000,000 asossy 44a Bawsis 2,855,568 > a 194s ators 14670 stot rs9sser| |__ 1594501 2a6kgon 2.139902 Tara Sako 98787 33057 29s229 258.20 1288 923635 Taiko | —SaB10sF sr ae ‘The annexed nes ffom 1 10 17 form an integral par ofthese condensed interim consolidated finn statemshsTELECARD LIMITED (CONDENSED INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT. FOR THE PERIOD ENDED DECEMBER 31, 2014 warter Ended December 31, December 31, ‘December 31, December 3, 2014 2013 2014 2013 (Rs. in 000) sen (8000) Note REVENUE - net 1amigs 1366240 BSS 733,794 Dire os 12 969.113) @H4349)——4BT.SBH) (4891) GRoss PROFIT aE aT ae Distbution cost and administrative expenses GaTSNT] [292655] [aa aIm] [— 123.736] ‘ter operating expense quiz] | 40.755) wos24| | Ga169} (Other income 30885 50.044 103889 1s392 (98.826) 285,366) (103,308) (147.513) OPERATING PROFIT Tae as ae TT Finance costs 8224) (113994) 48211) (60877) PROFIT(LOSS) BEFORE TAXATION ae as Taxation 1 angi) (144609) 37909715) (LOSSYPROFIT AFTER TAXATION =a oa ey ee (LOSS)EARNINGS PER SHARE - BASIC AND DILUTED. 0.02 0.03 0.02 0s “The annexed notes fom 1 1 17 form an integral par ofthese condensed interim consolidate financial statements.‘TELECARD LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, FOR THE PERIOD ENDED DECEMBER 31, 2014 Half year ended ‘Three months ended December 31, December 31, December 31, December 31, 2014 2013 2014 2013 (Rs. kn 000) [Net (oss}income for the period (6149) 9,922 (676 16,378 Other comprehensive income for the : ‘ 3 . ‘Total comprehensive (loss)Income for the period 6149) 9922 (6.761) 16,378 “The annexed notes from I to 17 form an integral part ofthese condensed interim consolidated financial statements.‘TELECARD LIMITED (CONDENSED INTERIM CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED DECEMBER 31,2014 December 31, December 3, 014 2013 (sin 00) (CASH FLOW FROM OPERATING ACTIVITIES Profit before aaton S768 24531 ‘Adjustment for nome Depreciation maw Tae Gai onl of fred asst s ess) Provision for rau a ‘2r| Finca charges grass rngis ‘Amortization of imangible seis 90758 90,790 Provision for aecsedmarkip = 48337 ‘Advance from contactor ass) 20852 053 as Profit before workiog capital changes 366201 482552 nrease / Decrease in eureat assets ‘Stockinende 7 Gal Commatestion stores (32), caer] ‘Trade debie (56.58) 46568, Loans ad advaces (62) 26880] epost, pepayments and accrued mark 61 (asx) (Other eceabiee 99.244 rer 39.748) 1w6assz 2m _ten20) 213766 529383 Income xpd Basa Gar Finca charges pid {03339} cis302] Retirement benefits paid (065) 30} Long em loans, deposits and advances 1s uta] ‘Lisi for long erm pons L c.s23) “S612, (assy 8430 Neteash flow from operating aetiviies 1s1318 34393 (CASH FLOW FROM INVESTING ACTIVITIES ‘Sale proceed from disposal = Tas Fosed capital expenditure assr9| 7648) a3s74) ss) (CASH FLOW FROM FINANCING ACTIVITIES Repayment of lng term eas ans) eae Repayment of redeemable capital 131p) 16247] [Net aah ase oancing activites 2a) (sai) NET INCREASE IN CASH AND CASH EQUIVALENTS. S597 35816 ‘CASII AND CASH EQUIVALENTS AT THE BEGINING (OF THE PERIOD 14499 4198) (CASH AND CASH EQUIVALENTS AT THE END. OF THE PERIOD “ am‘TELECARD LIMITED, CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED DECEMBER 31,2014 Share Capital ___ Revenue Reserve ‘sued, subseribed uneppropriated loss Toul and paideup ____ Ta BOOT Balance sat June 30, 2013 3,000,100 601738) 269820 ‘Net profit for the period 5 392 WE Other comprehensive income : : . “Total comprehensive income 5 or om Balance a a December 31,2013 a Balance a at June 30, 2014 2855,668 Net os forthe period Ia) Era] Other comprehensive income - - “ “oval comprehensive loss = iH Cr Balance a at December 31,2014 se, sa “The annexed notes from | 17 frm an integral part of hese condense interim consolidated financial sateen th Director”‘TELECARD LIMITED NOTES TO THE CONDENSED !NTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE | RIOD ENDED DECEMBER 31, 2014 1, THE GROUP AND ITS OPERATIONS ‘The Group comprises of: ‘Telesard Limited ~ Holding Company Supernet Limited ~ Subsidiary Company ‘Telecard Asia (UK) Limited Subsidiary Company ‘Telecard F-Solutions (Pvt) Limited - Subsiiary Company ‘Telegateway Limited - Subsidiary Company News Communication (Pvt) Limited - Subsidiary Company Glitz Communication (Pt) Limited - Subsidiary Company Globetech Communication (Pt) Limited ~ Subsidiary Company ‘Telecard Limited (the company) was incorporated in Pakistan on October 29,1992 a a public limited company: ‘The shares ofthe company ae lisiad on the Karachi and Islamabad Stock Exchanges. The company is licensed to provide folly integrated telecommunication services, including basic wireless telephony, long. distance and Intemational services and payphones The registred office of the Telecard Limited is located at World Trade (Centre 75, Fast Blue Area, Faral-ulHaq rad, Islamabad ‘Superet Limited is engaged is providing satelite and Microwave communication service ¢@ intemet aio Linkssngle Channel Per erier (SCPC), Time Divison Multiple Access (TDMA).e. and sale and installation of ‘elated equipment and accesories. Telecard Limited hold 100% equity of Superet Limite, ‘Telecard Asia (UK) Limited hasbeen incorporated to provide international telesommunicaion serves Telecard Limited hold 100% equity of Telecard Asia (UK) Limite. “Telecard E-Solutions (Pvt) Limite hasbeen incorporated to provide telecommuncation solutions and ober TT related Services, Telesard Limited hold 100% equity of TelecardE-Solutions (Privat) Limite, ‘elegateway Limited is engage inthe busines of providing means of communicating audio, vido or auiavideo ‘messages transite by radio cable, impulses aed beams or by any combination thereof or by any ler means ‘rough spac, sc land, water, inderground or underwater as permissible under the la. Telecard Limited holds 10% equity of Tlegateway Limite, ‘News Communication (Pst) Limited has been incorporated to provide telecommuniestion and ther relat serves. Telecard Limited holds 100% equity of Nexas Communications (Pt) Limited. Glitz Communications (Pvt) Limited has been incorporated to provide telecommunicaion and other related services. Telecard Limited holds 100% equity of lit Communications (Pvt) Limited. Globetech Communications (Pvt) Limited has been incorporated to provide tlecommunication and oer related Services, Telecard Limited holds 100% equity of Globetch Communications (Pvt) Limited.2. BASIS OF CONSOLIDATION ‘These conslideted financial statements comprise the financial staements ofthe Holding Company and its ‘Subsidiary Companies and are prepared using uniform accouting polices. The asses, abil, feome and ‘expenses ofthe Subsidiary Companies have been consolidated on ine by line bai, ite-grovp transaction ad balances have heen eliminated forthe purpose of consolidation. 3. ACCOUNTING POLICIES The accountng policies and methods of computation followed in the preparation ofthese consolidated financial statements are same a tose applied in preparing the consolidated financial statements forthe year ended June 30,2014 Note December 31, June 30, 2018 2014 (sin) 4. PROPERTY AND EQUIPMENT. Operating Fixed asets 4 992.858 Luar 36s (Capital workin-progress 476 3839 Ss or 4.1. Operating fied assets Opening netbook value 1147368 Aitions daring the period 4a" 2937 1170302 Disposals during the period ‘Accumulated depreciation on disposal Depreciation charged during the period / year 380,398 ims 4.1.1, Details of additions during the current period areas follows: Owned Apparats, pant and equipment f 1202 aa Computer and relsted accesories | 2736 e143 ‘ease hold improvements ‘M67 67 Future, fixtures and office equipment aan 5467 Vehicles zs 19.298 ee31 INTANGIBLE ASSETS ‘Wireles local loop (WL) liense ‘Long distance Intemational (LDI) license Computer softare Goodwill ‘Amorstion to-date Capital workin progress software development Note December 31, June 30 2014 2014 (Rs. 000) 3315.06 3,385,006 29.009 29.029 38836 383836 ne, L686 3529825 320.05 1.738.043) 1.644.285) 794,782 TBS. $40 ss soo TBE 080 ‘This includes frequency NTRCIL in respect of which the group has piven an option toa telecom operator to consider acquiring the same. The amortized east of the frequency Is Rs. 17218 milion. ‘TRADE DEBTS Unsecured Cosidered good Related pares Otter: (Cosiered doubifl Less: Provision for dbus considered doubt OTHER RECEIVABLES Considered good Relat parties Due from Pakistan Telecommunicaton Company Limited (PTCL) ‘Amount wield by PTCL against PTA-Escrow Pakistan Telecomminiation Authority (Claim against a bank Insurance clas ‘Augere Pakistan (Pv) Lad Income tax refundable Others Considered doubtful ua from PTCL Ds from zonal employees Insurance claims LL& LDL eharges- under protest payments Interconnect discount [WPS- under protest payments ‘Lease lines and upfront coonetion charges Wireline Mulkimeteing Ores Provision fr oter receivables considered doubuf 4768 s75)580 258.419, 7 (258.419) SWE 6801 651541 84597 2022560 ‘998 2380 S67 2991 182 T7827 Tee (35,174 27HNote December 31, June 30 Tors 201s 4. TRADE AND OTHER PAYABLES Trade Fras Telecommniaon Company Lined - net Wireless Payphone Service (WPS) oa] OTE Le LI charges 38058 "8.060 Other me} | ‘03 Ineeomnet operators T1881 1336 Others ome 259,516 254,062 515985 330.769 TR Patino Telecomministion Ashoriy is ‘Advances fom sioner 2s ‘csv abies 145394 Upeamed income ma12 Uneinmed ands 7392 Sales t= net otis Tome tax deduct a source 363153 Worker Welfare and tats Obes ene 08 Taos 9, ACCRUED INTEREST/MARK: On secured: Redeemable capital 09208 asa Longer oars fra 19 Short tem rnning Goances Sis iar On unsecured: - Shorten browing 2904 1s7 Cent ccna wih related pares 179 ro sa. eer 10, CURRENT MATURITIES OF LONG TERM LIABILITIES Long tm oan ete sass Redeemable capital 16089) 2110 Longer epi ‘38.609 3350 B12. B65 11, CONTINGENCIES AND COMMITMENTS (0) Contingencies 111, There has boen no change inthe stats of contingencies reported in the consolidated financial statements forthe year ended June 30, 2014, (6) Commitments 112. Counter guarantes given to banks[NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED DECEMBER 31, 2014 ear ended uate cues December 31, DecemberST, December 31, DecemberT, pore 2013 pore | 203 ete (R000) ses 12 DIRECT costs Sues oer Ree rs 5308 aga cag Inercomectchrzes, aus goo 2s 18946 Nemwock Maia sharges wus 3138. sos 6378 Newook te et Noose ath G16) 23930 Newer te tie and mince SBS as0u8 Myst 20787 Suulie Communication chases sos 39159 2n? Cost of ads sok 10 2 ‘ 6 Commeeation sores consumed woses 1512, oss aso Supportsensees ast ass 5009 ass Repaid Matmace a ma 90 1 Roni ase 23 was a CConulaney chases 7 00 any 20 Pring and satnary : = : : (Conveyance and alg son 587 ose 83 nnetce ass 4998 ass 2aus ‘Anua elatoy cares issn 1sp41 7081 779 Depreciation rag. 1.056 mass 57950 Amorizaton of inane at sass 99,58 ss 489 Monitoring upon charges ams 5459 1am ams Others ne 2m mn 42 13, TAXATION current ze 15638 a 086 Detones 153 1085) mn so,se2 ua 159 0, 97s Sore 1M. CASH AND CASH EQUIVALENT (sin 00) (Canad bank balances sais 314.20 ‘Shorter ning anes 1295319) __ss.7 15. TRANSACTIONS WITH RELATED PARTIES “The elated pares include moor shteols, ents having rectors in amon with the Group distr ond Ents having directors commes wih the Group ‘Arfeen Internationa (Private Limited ‘en expenses hg othe ro 2760 260 ‘Maru hare he roe ‘sie Pets made on bh the soap “ Lan Servis entered i Payment mae on aly the group a aria charged ye poup : 20 Evierte Lined Series ede m x0 Payment mason bbs group »December, December 31 Tie suns (sin 00) World Trade Centre Privte) Lime Serace reece 2390819303, arc hares the ro 7a 14985, Maa charged byte soup s Service rendered oe « saphone Limited ‘Mau huge byte group 20 20 Payment made by he Bp Insaphoneinrastrutae (Private) Lined ‘Seve eee bythe group 15099 25470 Paymens made or behalf ere ary 13 st Payments made by he pop 21 - Sere rendered 0 3500 Mase charged othe group 2460 2009 Servies redered ns . Serves reves {00 Payment mae by the rp we Serer rendered 18 Paymen: ma on behalf the ero 6 16, DATE OF AUTHORISATION FOR ISSUE. “These condense intr consoled Snail sateen were marie frist on Febray 37,2018 by the Board of Dicer of the Gro. 17. GENERAL 4 ‘pues resented in tes itrim condense cael sateen! hav Been runde to he eae sn rupees, es pene ates 5