Symmetry Group Limited

Consolidated Statement of Financial Position - Unaudited

As at December 31, 2022
December 31, 30-Jun-22
2022
(Un-Audited) (Audited)
Notes (Rupees)
ASSETS
Non current assets
Property and equipment 4 12,016,214 8,557,823
Right-of-use assets 5 6,449,142 5,329,893
Intangible assets 6 2,265,982 2,713,751
Goodwill 7 42,777,721 42,777,721
Deferred taxation 8 - 466,665
Long term deposits 8 1,384,000 1,384,000
64,893,059 61,229,853
Current assets
Trade debts 9 277,759,827 247,011,648
Advances and prepayments 10 31,564,036 919,278
Interest accrued on short term investments - 272,178
Short term investments 11 - 12,075,000
Taxation - net 36,843,657 50,710,115
Cash and bank balances 12 7,957,041 7,328,697
354,124,561 318,316,916
Total assets 419,017,620 379,546,769

EQUITY AND LIABILITIES

Share capital and reserves
Authorised share capital
100,000,000 (June 30, 2021: 100,000,000) ordinary shares of Re. 1/- each 300,000,000 300,000,000

Issued, subscribed and paid-up share capital 13 197,010,230 197,010,230

Unappropriated profit 146,853,884 71,284,286
Equity attributable to owners 343,864,114 268,294,516
Non-controlling interest 14 24,966 14,906
343,889,080 268,309,422
Non - current liabilities
Lease liabilities 5 689,367 1,207,432
Long term borrowings 14 - -
Deferred income - government grant 15 - -
Deferred taxation 8 - -
689,367 1,207,432
Current liabilities
Trade and other payables 16 22,870,066 44,223,079
Current portion of lease liabilities 5 939,367 2,182,416
Current portion of long term borrowings 14 - 11,709,474
Currernt portion of deferred income - government grant 15 - 189,529
Short term finance 17 24,665,426 25,761,102
Loan from a related party 18 25,964,314 25,964,314
74,439,173 110,029,914
419,017,620 379,546,769
- -
Contingencies and commitments 19

The annexed notes 1 to 24 form an integral part of these special purpose consolidated financial statements.

________________ _________________
Chief Executive Director
Symmetry Group Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the half year ended December 31, 2022

For the half

For the half year
year ended
ended December
December 31,
31, 2022
2021
(un-Audited) (un-Audited)
Note (Rupees)

Revenue - net 20 220,280,124 144,280,927

Administrative and operating expenses 21 (125,652,323) (107,799,892)

94,627,801 36,481,035

Other income 22 1,315,547 1,330,456

Finance cost 23 (6,482,326) (4,373,179)

Profit before taxation 89,461,022 33,438,312

Taxation 24 (13,866,458) (8,834,727)

Profit after taxation 75,594,564 24,603,585

Other comprehensive income - -

Total comprehensive income for the period 75,594,564 24,603,585

________________ _________________
Chief Executive Director
Symmetry Group Limited
Consolidated Statement of Cash Flows
For the half year ended December 31, 2022
For the half For the half
year ended year ended
December 31, December 31,
2022 2021
(Unaudited) (Unaudited)
Note (Rupees)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 89,461,022 21,488,881
Adjustment for non-cash and other items:
- Depreciation 3,241,779 7,894,764
- Amortization 447,769 1,028,403
- Finance costs 6,482,326 4,373,179
- Impairment of trade debts - -
- Amortization of grant income - (876,201)
- Interest income on Term Deposit Receipts (482,421) (457,754)
- Exchange Gain (833,126) (895,866)
Operating profit before working capital changes 98,317,349 32,555,406

Changes in :
Trade debts (30,748,179) (3,724,252)
Advances and prepayments (32,483,314) (97,110)
Currernt portion of deferred income - government grant (189,529) (2,507,174)
Loan from Director - -
Cash used in operations (63,421,022) (6,328,536)

Finance cost paid (6,482,326) (2,365,321)

Income tax paid (26,345,984) (22,261,209)
Long term deposits - net - 564,900
Net cash generated from / (used in) operating activities 2,068,017 2,165,240

CASH FLOW FROM INVESTING ACTIVITIES

Acquisition of property and equipment - (1,496,270)
Interest received on Term Deposits Receipts 94,821 142,944
Investment in Term Deposits Receipts redeemed / (made) 12,075,000 9,775,000
Net cash generated / (used in) in investing activities 12,169,821 8,421,674

CASH FLOW FROM FINANCING ACTIVITIES

Loan repaid to related parties - net - (255,784)
Long term borrowings - net (11,709,474) (6,894,351)
Payment of lease liabilities (295,967) (1,402,434)
Net cash (used in) / generated from financing activities (12,005,441) (8,552,569)

Net increase in cash and cash equivalents 2,232,397 2,034,345

Cash and cash equivalents at the beginning of the period (18,940,782) (20,975,127)
Cash and cash equivalents at the end of the period (16,708,385) (18,940,782)

Cash and cash equivalents comprise of the following:

Cash and bank balances 12 7,957,041 3,857,502
Short term running finance 17 (24,665,426) (22,798,284)
(16,708,385) (18,940,782)
- -

The annexed notes 1 to 24 form an integral part of these special purpose consolidated financial statements.

________________ _________________
Chief Executive Director
Symmetry Group Limited
Notes to the Special Purpose Consolidated Financial Statements
For the half year ended December 31, 2022

1. THE GROUP AND ITS OPERATIONS

1.1 Symmetry Group Limited ('the Company') was incorporated in Pakistan as a private limited company
on 3 February 2012 under the repealed Companies Ordinance, 1984. In 2018 the Company was
converted to a public company with effect from 31 May 2017. The principal activities of the Company
is digital media & internet marketing, technology & mobility solutions and other related activities.

Mr. Adil Ahmed and Mr. Sarosch Ahmed each holds 48.9% of shareholding respectively

The registered office of the Company is situated at 3rd and 4th Floor, Plot 45-C, Shahbaz Lane 4,
Phase VI, D.H.A. Karachi.

These special purpose consolidated financial statements are prepared for onward submission to
Pakistan Stock Exchange together with the application for listing of the Company.

1.2 Symmetry Group Limited and its subsidiaries ("the Group") comprises of the following:

Symmetry Group Limited Parent Company

Subsidiary companies Percentage of Direct Holding

31-Dec-22 June 30, 2021

Symmetry Digital (Private) Limited 99.98% 99.98%

Iris Digital (Private) Limited 99.80% 99.80%

1.3 Nature of operations of subsidiaries

Symmetry Digital (Private) Limited

Symmetry Digital (Private) Limited was incorporated in Pakistan as a private limited company on 31
August 2009 under the repealed Companies Ordinance, 1984. Its principal activities are digital media,
internet marketing and display advertising etc. and creative services including digital design, web
development and other related activities.

The registered office is situated at 3rd and 4th Floor, Plot 45-C, Shahbaz Lane 4, Phase VI, D.H.A,
Karachi.
 Iris Digital (Private) Limited

Iris Digital (Private) Limited was incorporated in Pakistan as a private limited company on 3 February
2012 under the repealed Companies Ordinance, 1984. Its principal activities are digital media, internet
marketing and display advertising etc. and creative services including digital design, web development
and other related activities.

The registered office is situated at 3rd and 4th Floor, Plot 45-C, Shahbaz Lane 4, Phase VI, D.H.A.
Karachi.

2. BASIS OF PREPARATION

2.1 Statement of compliance

These special purpose consolidated financial statements have been prepared in accordance with the
accounting and reporting standards as applicable in Pakistan. The accounting and reporting standards
as applicable in Pakistan comprise of:

- International Financial Reporting Standards (IFRS Standards) issued by the International Accounting
Standards Board (IASB) as notified under the Companies Act, 2017; and

- Provisions of and directives issued under the Companies Act 2017.

Where the provisions of and directives issued under the Companies Act 2017 differ from IFRS Standards,
the provisions of and directives issued under the Companies Act 2017 have been followed.

2.2 Basis of measurement

These special purpose consolidated financial statements have been prepared under the historical cost
convention, unless otherwise stated.

2.3 Functional and presentation currency

These special purpose consolidated financial statements are presented in Pakistan Rupees which is
Group's functional currency. All financial information presented in Pakistan Rupees has been rounded
to the nearest rupee, unless otherwise stated.

2.4 Use of estimates and judgments

The preparation of financial statements in conformity with accounting and reporting standards, as
applicable in Pakistan, requires management to make judgments, estimates and assumptions that
affect the application of the accounting policies and the reported amounts of assets, liabilities, income
and expenses. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which
form the basis of making the judgments about the carrying values of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these estimates.

The estimates underlying the assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods. Information about the judgments made by the management in the application of the accounting
policies, that may have the most significant effect on the amount recognized in these financial
 statements, assumptions and estimation uncertainties with significant risk of material adjustment to
the carrying amount of asset and liabilities in the next year are described in the following notes:

- Property and equipment (note 3.2)

- Leases (note 3.3)
- Intangible assets (note 3.4)
- Goodwill (note 3.5)
- Impairment (note 3.8)
- Taxation (note 3.9)

2.5 New or amendments / interpretations to existing standards, interpretation and forthcoming

requirements

The following new or amended standards and interpretations became effective during the year which
are not considered to be relevant to the Company's financial statements:

- Interest Rate Benchmark Reform – Phase 2

- COVID-19-Related Rent Concessions (Amendment to IFRS 16)

2.6 Standards, interpretations and amendments to published approved accounting standards that
are not yet effective

The following International Financial Reporting Standards (IFRS Standards) as notified under the
Companies Act, 2017 and the amendments and interpretations thereto will be effective for accounting
periods beginning on or after 01 October 2021:

- Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37) effective for the annual
periods beginning on or after 1 January 2022 amends IAS 1 by mainly adding paragraphs which
clarifies what comprises the cost of fulfilling a contract, Cost of fulfilling a contract is relevant
when determining whether a contract is onerous. An entity is required to apply the amendments to
contracts for which it has not yet fulfilled all its obligations at the beginning of the annual reporting
period in which it first applies the amendments (the date of initial application). Restatement of
comparative information is not required, instead the amendments require an entity to recognize the
cumulative effect of initially applying the amendments as an adjustment to the opening balance of
retained earnings or other component of equity, as appropriate, at the date of initial application.

- The following annual improvements to IFRS Standards 2018-2020 are effective for annual reporting
periods beginning on or after 1 January 2022.

- IFRS 9 – The amendment clarifies that an entity includes only fees paid or received between
the entity (the borrower) and the lender, including fees paid or received by either the entity or
the lender on the other’s behalf, when it applies the ‘10 per cent’ test in paragraph B3.3.6 of
IFRS 9 in assessing whether to derecognize a financial liability.

- IFRS 16 – The amendment partially amends Illustrative Example 13 accompanying IFRS 16

by excluding the illustration of reimbursement of leasehold improvements by the lessor. The
objective of the amendment is to resolve any potential confusion that might arise in lease
incentives.
 - IAS 41 – The amendment removes the requirement in paragraph 22 of IAS 41 for entities to
exclude taxation cash flows when measuring the fair value of a biological asset using a
present value technique.
- Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16) effective
for annual periods beginning on or after 1 January 2022 clarifies that sales proceeds and costs of
items produced while bringing an item of property, plant and equipment to the location and
condition necessary for it to be capable of operating in the manner intended by management e.g.
when testing etc., are recognized in profit or loss in accordance with applicable Standards. The
entity measures the cost of those items applying the measurement requirements of IAS 2. The
standard also removes the requirement of deducting the net sales proceeds from cost of testing.
An entity shall apply those amendments retrospectively, but only to items of property, plant and
equipment that are brought to the location and condition necessary for them to be capable of
operating in the manner intended by management on or after the beginning of the earliest period
presented in the financial statements in which the entity first applies the amendments. The entity
shall recognize the cumulative effect of initially applying the amendments as an adjustment to the
opening balance of retained earnings (or other component of equity, as appropriate) at the
beginning of that earliest period presented.
- Reference to the Conceptual Framework (Amendments to IFRS 3) - Reference to the Conceptual
Framework, issued in May 2020, amended paragraphs 11, 14, 21, 22 and 23 of and added
paragraphs 21A, 21B, 21C and 23A to IFRS 3 . An entity shall apply those amendments to
business combinations for which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after 1 January 2022. Earlier application is permitted if at the same
time or earlier an entity also applies all the amendments made by Amendments to References to
the Conceptual Framework in IFRS Standards, issued in March 2018.

- Classification of liabilities as current or non-current (Amendments to IAS 1) amendments apply

retrospectively for the annual periods beginning on or after 1 January 2023. These amendments in
the standards have been added to further clarify when a liability is classified as current. The
standard also amends the aspect of classification of liability as non-current by requiring the
assessment of the entity’s right at the end of the reporting period to defer the settlement of liability
for at least twelve months after the reporting period. An entity shall apply those amendments
retrospectively in accordance with IAS 8.

- Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) – the
Board has issued amendments on the application of materiality to disclosure of accounting policies
and to help companies provide useful accounting policy disclosures. The key amendments to IAS
1 include:

- requiring companies to disclose their material accounting policies rather than their significant
accounting policies;

- clarifying that accounting policies related to immaterial transactions, other events or

conditions are themselves immaterial and as such need not be disclosed; and

- clarifying that not all accounting policies that relate to material transactions, other events or
conditions are themselves material to a company's financial statements.

The Board also amended IFRS Practice Statement 2 to include guidance and two additional
examples on the application of materiality to accounting policy disclosures. The amendments are
effective for annual reporting periods beginning on or after 1 January 2023 with earlier application
permitted.
 - Definition of Accounting Estimates (Amendments to IAS 8) – The amendments introduce a new
definition for accounting estimates clarifying that they are monetary amounts in the financial
statements that are subject to measurement uncertainty. The amendments also clarify the
relationship between accounting policies and accounting estimates by specifying that a company
develops an accounting estimate to achieve the objective set out by an accounting policy. The
amendments are effective for periods beginning on or after 1 January 2023, and will apply
prospectively to changes in accounting estimates and changes in accounting policies occurring on
or after the beginning of the first annual reporting period in which the company applies the
amendments.

- Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to
IAS 12) – The amendments narrow the scope of the initial recognition exemption (IRE) so that it
does not apply to transactions that give rise to equal and offsetting temporary differences. As a
result, companies will need to recognise a deferred tax asset and a deferred tax liability for
temporary differences arising on initial recognition of a lease and a decommissioning provision. For
leases and decommissioning liabilities, the associated deferred tax asset and liabilities will need
to be recognised from the beginning of the earliest comparative period presented, with any
cumulative effect recognised as an adjustment to retained earnings or other components of equity
at that date. The amendments are effective for annual reporting periods beginning on or after 1
January 2023 with earlier application permitted.

- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
(Amendments to IFRS 10 and IAS 28) – The amendment amends accounting treatment on loss of
control of business or assets. The amendments also introduce new accounting for less frequent
transaction that involves neither cost nor full step-up of certain retained interests in assets that are
not businesses. The effective date for these changes has been deferred indefinitely until the
completion of a broader review.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies set out below are consistently applied for all periods presented in
these special purpose consolidated financial statements.

3.1 Basis of consolidation and equity accounting

3.1.1 Business Combination

Business combinations are accounted for using the acquisition method when control is transferred to
the Group. The consideration transferred in the acquisition is generally measured at fair value, as are
the identifiable net assets acquired. Goodwill arising on acquisition date is measured as the excess of
the purchase consideration, including the acquisition date fair value of the acquirer’s previously held
equity interest in the acquiree in case of step acquisition, over the fair value of the identifiable assets
acquired and liabilities assumed including contingent liabilities less impairment losses, if any. Any
goodwill that arises is not amortised and tested annually for impairment. Any gain on bargain purchase
is recognised immediately in special purpose consolidated statement of profit or loss. Transaction cost
are expensed as incurred, except if related to the issue of debt or equity securities. Any contingent
consideration payable is measured at fair value at the acquisition date. If the contingent consideration is
classified as equity, then it is not remeasured and settlement is accounted for within equity.
Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in
special purpose consolidated statement of profit and loss.
3.1.2 Subsidiaries

Subsidiaries are entities controlled by the Group. Control exists when the Parent Company is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity. The financial statements of subsidiaries are included in
the special purpose consolidated financial statements from the date that control commences until the
date on which control ceases.

These special purpose consolidated financial statements have been prepared using uniform accounting
policies for the like transactions and other events in similar circumstances and the accounting policies
of subsidiaries have been changed when necessary to align them with the accounting policies adopted
by the Parent Company. The assets and liabilities of subsidiary companies have been consolidated on a
line-by-line basis. The carrying value of investments held by the Parent Company is eliminated against
the subsidiary's shareholders' equity in these special purpose consolidated financial statements.

Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for
as transactions with owners in their capacity as owners.

Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any
non-controlling interests and other components of equity related to the subsidiary. Any surplus or
deficit arising on the loss of control is recognised in special purpose consolidated statement of profit or
loss. Any retained interest in the former subsidiary is measured at fair value where control is lost.

The financial year of the Parent Company and its subsidiaries are the same and also audited.

3.1.3 Non-controlling interests

Non-controlling interest is that portion of equity in a subsidiary that is not attributable, directly or
indirectly, to the Parent Company. Non-controlling interests are measured at their proportionate share
of the subsidiaries' identifiable net assets. They are presented as a separate item in the special
purpose consolidated financial statements.

3.1.4 Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from
intra-group transactions are eliminated on consolidation.

3.2 Property and equipment

An item of property and equipment is initially recognised at cost which is equal to the fair value of
consideration paid at the time of acquisition or construction of the asset. These are stated at cost less
accumulated depreciation and accumulated impairment losses, if any.

Depreciation is charged to income at rates using straight line method. Depreciation on additions is
charged from the month during which the asset is available for use. For disposals during the year,
depreciation is charged up to the month preceding the month of disposal. The useful life and
depreciation method are reviewed and adjusted, if appropriate, at the reporting date.
 Maintenance and repairs are charged to income as and when incurred. Major renewals and
improvements are capitalized and the assets so replaced, if any, are retired. Gains and losses on
disposal of assets, if any, are included in current income.

3.3 Leases

Right-of-use assets

The Group recognizes right-of-use assets at the commencement date of the lease (i.e. the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received.
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets.

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of
the asset. The right-of-use assets are also subject to impairment.

Lease liabilities

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments
that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
The lease payments also include the exercise price of a purchase option reasonably certain to be
exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects
the Group exercising the option to terminate. Variable lease payments that do not depend on an index
or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at
the lease commencement date because the interest rate implicit in the lease is not readily
determinable. After the commencement date, the amount of lease liabilities is increased to reflect the
accretion of interest and reduced for the lease payments made. In addition, the carrying amount of
lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the
lease payments (e.g., changes to future payments resulting from a change in an index or rate used to
determine such lease payments) or a change in the assessment of an option to purchase the
underlying asset.

Short-term leases

The Group applies the short-term lease recognition exemption to its short-term leases where the lease
term is of 12 months or less from the commencement date and do not contain a purchase option and
leases for which the underlying asset is of low value. Lease payments on short-term leases are
recognized as expense on a straight-line basis over the lease term.
3.4 Intangible assets

Intangible assets acquired by the Group are stated at cost less accumulated amortisation and
impairment losses, if any. Subsequent expenditure on intangible assets is capitalized only when it
increases the future economic benefits embodied in the specific assets to which it relates. All other
expenditure is expensed out as incurred.

Amortisation is charged to profit and loss account on reducing balance method at the rates specified in
respective notes in these special purpose consolidated financial statements unless lives of assets are
indefinite. All intangible assets with an indefinite useful life are systematically tested for impairment at
each reporting date. Amortisation on additions to intangible assets is charged from the date on which an
item is acquired or capitalized and upto the date preceding the disposal. Where the carrying amount of an
asset exceeds its estimated recoverable amount it is written down immediately to its recoverable amount.

3.5 Goodwill

Goodwill that arises upon the acquisition of assets and assuming liabilities is included in intangible
assets. The acquisition method of accounting is used to account for the acquisition of the assets and
assuming liabilities. The cost of acquisition is measured at the fair value of the assets transferred,
equity instruments issued and liabilities incurred or assumed at the acquisition date. The cost of
acquisition includes fair value of assets and liabilities resulting from consideration agreement.
Identifiable assets acquired and the liabilities assumed are measured initially at their fair values at the
acquisition date. Transactions costs are expensed out as incurred except if they relate to the issue of
debt or equity securities.

The excess of the consideration transferred over the fair value of the identifiable net assets acquired is
recorded as goodwill. If this is less than the fair value of the net assets of the Acquiree in the case of a
bargain purchase, the difference is recognised directly in the profit and loss account.

Goodwill has indefinite useful life and is subsequently measured at cost less impairment in value, if any.
Goodwill is tested for impairment on an annual basis and also when there is an indication of impairment.
Impairment loss on goodwill is not reversed. On disposal of an entity, the attributable amount of
goodwill is included in the determination of the profit or loss on disposal.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is
made to those cash-generating units or groups of cash-generating units that are expected to benefit from
the business combination in which the goodwill arose.

3.6 Share capital - ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares are recognised as a deduction from equity, net of any tax effects.
3.7 Financial instruments

3.7.1 Initial measurement of financial asset

The Group classifies its financial assets in to following three categories:

- fair value through other comprehensive income (FVOCI);

- fair value through profit or loss (FVTPL); and
- measured at amortised cost.

A financial asset is initially measured at fair value plus, for an item not at FVTPL, transaction costs that
are directly attributable to its acquisition.

Subsequent measurement

Debt Investments at FVOCI These assets are subsequently measured at fair value. Interest /
markup income calculated using the effective interest method, foreign
exchange gains and losses and impairment are recognised in the
statement of profit or loss account and other comprehensive income.
Other net gains and losses are recognised in other comprehensive
income. On de-recognition, gains and losses accumulated in other
comprehensive income are reclassified to the consolidated statement
of profit or loss account and other comprehensive income.

Equity Investments at These assets are subsequently measured at fair value. Dividends are
FVOCI recognised as income in the consolidated statement of profit or loss
account and other comprehensive income unless the dividend clearly
represents a recovery of part of the cost of the investment. Other net
gains and losses are recognised in other comprehensive income and
are never reclassified to the consolidated statement of profit or loss
account and other comprehensive income.

Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and
losses, including any interest / markup or dividend income, are
recognised in consolidated statement of profit or loss account and
other comprehensive income.

Financial assets measured These assets are subsequently measured at amortised cost using the
at amortised cost effective interest method. The amortised cost is reduced by impairment
losses. Interest / markup income, foreign exchange gains and losses
and impairment are recognised in the consolidated statement of profit
or loss account and other comprehensive income.

3.7.2 Non-derivative financial assets

All non-derivative financial assets are initially recognised on trade date i.e. date on which the Group
becomes party to the respective contractual provisions. Non-derivative financial assets comprise loans
and receivables that are financial assets with fixed or determinable payments that are not quoted in
active markets and includes trade debts, advances, other receivables and cash and cash equivalent.
 The Group derecognises the financial assets when the contractual rights to the cash flows from the
asset expires or it transfers the rights to receive the contractual cash flows in a transaction in which
substantially all of the risk and rewards of ownership of the financial assets are transferred or it neither
transfers nor retain substantially all of the risks and rewards of ownership and does not retain control
over the transferred asset.

3.7.3 Cash and cash equivalents

For the purpose of presentation in consolidated statement of cash flows, cash and cash equivalents includes
cash in hand, balances with banks and short term borrowings availed by the Group, which are repayable
on demand and form an integral part of the Group’s cash management.

3.7.4 Offsetting of financial assets and financial liabilities

Financial assets and financial liabilities are offset and the net amount is reported in the financial
statements only when the Group has currently legally enforceable right to set-off the recognised
amounts and the Group intends either to settle on a net basis or to realise the assets and to settle the
liabilities simultaneously. The legally enforceable right must not be contingent on future events and must
be enforceable in normal course of business and in the event of default, insolvency or winding up of the
Group or the counter parties.

3.8 Impairment

3.8.1 Financial assets

The Group recognises loss allowances for Expected Credit Losses (ECLs) in respect of financial assets
measured at amortised cost.

The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following,
which are measured at 12-month ECLs:

- debt securities that are determined to have low credit risk at the reporting date; and

- other debt securities and bank balance for which credit risk (i.e. the risk of default occurring over
the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime ECLs.

When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both quantitative and qualitative
information and analysis, based on the Group's historical experience and informed credit assessment
and including forward-looking information.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than
past due for a reasonable period of time. Lifetime ECLs are the ECLs that result from all possible default
events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that
result from default events that are possible within the 12 months after the reporting date (or a shorter
period if the expected life of the instrument is less than 12 months). The maximum period considered
when estimating ECLs is the maximum contractual period over which the Group is exposed to credit
risk.
 Loss allowances for financial assets measured at amortised cost are deducted from the Gross carrying
amount of the assets.

The gross carrying amount of a financial asset is written off when the Group has no reasonable
expectations of recovering of a financial asset in its entirety or a portion thereof. The Group individually
makes an assessment with respect to the timing and amount of write-off based on whether there is a
reasonable expectation of recovery. The Group expects no significant recovery from the amount written
off. However, financial assets that are written off could still be subject to enforcement activities in order
to comply with the Group's procedures for recovery of amounts due.

The adoption of the expected loss approach has not resulted in any material change in impairment
provision for any financial asset.

3.8.2 Non-financial assets

The carrying amounts of the Group's non-financial assets, other than deferred tax assets and inventories
are reviewed at each reporting date to determine whether there is any indication of impairment. If such
indication exists, the asset's recoverable amount, being higher of value in use and fair value less costs
to sell, is estimated. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot
be tested individually are grouped together into the smallest group of assets that generates cash inflows
from continuing use that are largely independent of the cash inflows of other assets or groups of assets.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable
amount. Impairment losses are recognised in the consolidated statement of profit or loss account and
other comprehensive income.

3.9 Taxation

Current

Provision for current taxation is based on taxable income at current rates of taxation after taking into
account tax rebates and credits, if any.

Deferred

Deferred tax is provided using balance sheet liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or
substantively enacted at the reporting date. A deferred tax asset is recognized to the extent that it is
probable that future taxable profits will be available against which the temporary differences can be
utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
3.10 Provisions

A provision is recognised in the balance sheet when the Group has a legal or constructive obligation as
a result of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
However, provisions are reviewed at each reporting date and adjusted to reflect current best estimate.

3.11 Foreign currency transactions

Transactions in foreign currencies are accounted for in rupees at the rate of exchange prevailing on the
date of transaction. Monetary assets and liabilities in foreign currencies as at the reporting date are
expressed in rupees at rates of exchange prevailing on that date except where forward exchange cover
has been obtained for payment of liabilities, in which case the contracted rates are applied. Exchange
gains and losses are included in income currently.

3.12 Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic
environment in which the Group operates. The financial statements are presented in Pak Rupees, which
is the Group's functional and presentation currency and have been rounded off to the nearest rupee.

3.13 Revenue recognition

Revenue from contracts with customers is recognised when control of the services are transferred to
the customer at an amount that reflects the consideration to which the Group expects to be entitled in
exchange for those goods and services.

- Revenue from media buying services is recognised at a point in time when the performance criteria
have been met in accordance with the contract and acknowledged by the customer.

- Revenue from providing Social media management services is recognised on a straight line basis
over the line of the respective contracts.

- Revenue from content creation services is recognised at a point in time when the performance
criteria have been met in accordance with the contract and acknowledged by the customer.

- Revenue from agency commissions and discounts is recognised at a point in time when the
performance criteria have been met in accordance with the contract and acknowledged by the
customer.

3.14 Expenses

All expenses are recognised in the consolidated statement of profit and loss on an accrual basis.

3.15 Dividends and appropriations

Dividend distributions and appropriations are recorded in the period in which the distributions and
appropriations are approved.
4. PROPERTY AND EQUIPMENT

Furniture Office Computer Vehicles Total

and equipment and ancillary
fixtures equipment
---------------------------------------------------------------- (Rupees) --------------------------------------------------------------
As at 30 June 2022 / 1 July 2022
Cost 5,789,388 9,334,407 47,789,159 7,051,255 69,964,209
Accumulated depreciation (4,732,496) (8,890,173) (41,599,993) (6,183,724) (61,406,386)
Net book value 1,056,892 444,234 6,189,166 867,531 8,557,823

Additions - - 6,700,171 - 6,700,171

Transfer from ROUA

Cost - - - - -
Accumulated depreciation - - - - -
Net book value - - - - -

Depreciation charge for the period (312,710) (354,867) (2,290,044) (284,158) (3,241,779)

Closing net book value 744,182 89,367 10,599,293 583,373 12,016,214

As at 31 Dec 2022
Cost 5,789,388 9,334,407 54,489,330 7,051,255 76,664,380
Accumulated depreciation (5,045,206) (9,245,040) (43,890,037) (6,467,882) (64,648,165)
Net book value 744,182 89,367 10,599,293 583,373 12,016,214

Depreciation rates (% per annum) 15 30 30 15

4.1 The depreciation charge for the year / period has been allocated to administrative and general expenses. The cost
of fully depreciated assets still in use at the reporting date is Rs. 28,690,497 (30 June 2021: Rs. 18,286,919).

5. LEASES 31-Dec-2022 June 30, 2022

(Rupees)
5.1 Right-of-use assets

Opening balance 9,233,246 9,233,246

Additions - -
Transfer to PPE - (1,119,249)
Depreciation for the period (2,784,104) (2,784,104)
Closing balance 6,449,142 5,329,893
5.2 Lease liabilities

Rental contracts are made for a fixed period subject to renewal upon mutual consent of the Group and
lessor. Wherever practicable, the Group seeks to include extension option to provide operational
flexibility. Lease term is negotiated on an individual basis and contain a wide range of different terms
and conditions. Management exercises significant judgement in determining whether these extensions
and termination options are reasonably certain to be exercised. The future lease payments have been
discounted using interest rates ranging from 6.32% to 11.05% (June 30, 2021: 6.32% to 9.37%).

Set out below is the carrying amount of lease liabilities and the movements during the period / year:

31-Dec-22 June 30, 2022

(Rupees)

Opening balance 2,077,111 6,618,789

Additions - -
Interest expense for the period / year 458,572
Payments during the period / year (448,377) (3,687,513)
Closing balance 1,628,734 3,389,848

Lease liabilities are classified in the consolidated statement of financial position in the
following manner:

Current 939,367 2,182,416

Non-current 689,367 1,207,432
1,628,734 3,389,848

6. INTANGIBLE ASSETS

Computer software
Cost
Balance as at 1 July 36,000,000 36,000,000
36,000,000 36,000,000

Amortisation
Balance as at 1 July 33,286,249 30,404,625
Amortisation for the period / year 447,769 2,881,624
Balance as at 31 December 2022 33,734,018 33,286,249

Net book value 2,265,982 2,713,751

Amortisation rate (% per annum) 33.33% 33.33%

6.1 The amortisation charge for the period / year has been allocated to administrative and operating expenses.
8. LONG TERM DEPOSITS

Deposit for
- rent 1,384,000 1,384,000
- finance lease -
1,384,000 1,294,000

9. TRADE DEBTS 247011648

Trade debts 277,759,827 247,011,648

less: Allowance for expected credit losses 9.1 - -
277,759,827 247,011,648

10. ADVANCES AND PREPAYMENTS 31-Dec-22 June 30, 2022

(Rupees)

Advance to staff - unsecured 1,028,036 486,000

Prepayments:
- rent 36,000 198,000
- media advances 30,500,000 --
- insurance -- 235,278
30,536,000 433,278

31,564,036 919,278

11. SHORT TERM INVESTMENTS

Investments in Term Deposit Receipts -- 12,075,000

11.1 The Term Deposit Receipts are maintained with Bank Al Habib Limited carrying mark-up rate of 6.10% (June 30,
2021: ranging from 6.60% to 7.10%) per annum and having maturity upto 23 April 2022.

12. CASH AND BANK BALANCES

Cash in hand 121,523 182,661

Cash at bank
- Foreign currency accounts 7,122,725
- Current accounts 7,835,510 23,303
- Savings account 12.1 8 8
7,835,518 7,146,036

7,957,041 7,328,697

12.1 The saving accounts carries markup ranging from 6.5% to 7% per annum (June 30, 2021: 6.5% to 7% per annum).
13. ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL

31-Dec-21 June 30, 2021 31-Dec-22 June 30, 2022

(Number of shares) (Rupees)

31,462,472 31,462,472 Ordinary shares of Re. 1 each

fully paid in cash 31,462,472 31,462,472
165,547,758 165,547,758 Ordinary shares of Re. 1 each
issued as bonus shares 165,547,758 165,547,758
197,010,230 197,010,230 197,010,230 197,010,230

13.1 Share capital was subscribed and paid-up by the following:

31-Dec-21 June 30, 2022 31-Dec-22 June 30, 2022

Percentage holding (Number of Shares)

0.00% 0.00% Bull's Eye Communication (Private) Limited -

48.87% 48.87% Mr. Adil Ahmed 96,288,747 96,288,747
48.87% 48.87% Mr. Sarocsh Ahmed 96,288,747 96,288,747
2.25% 2.25% Wasim Akram 4,432,730 4,432,730
0.01% 0.01% Others 6 6
100% 100% 197,010,230 197,010,230
14. LONG TERM BORROWINGS - secured 31-Dec-22 June 30, 2022
(Rupees)

Loan from conventional financial institutions 16.1 - 11,709,474

Current portion shown under current liabilities - (11,709,474)
- -

- -

14.1 Due to the effects of pandemic, State Bank of Pakistan took various steps to support the economy. SBP introduced a refinance scheme for
payment of salaries and wages at subsidized rate of borrowing.

The Group had obtained the said borrowing from Bank Al-Habib Limited (“BAHL”) at subsidized rate in fifteen tranches at 3% concessional
interest rate which is repayable in October 2022 in 8 quarterly installments to BAHL under the SBP scheme.

15. DEFERRED INCOME - GOVERNMENT GRANT

Deferred income - government grant - 189,529

Current portion of deferred income - government grant - (189,529)
- -

15.1 The value of benefit of below-market interest rate on the borrowings disclosed in note 16 to these special purpose consolidated financial
statements has been accounted for as government grant under IAS - 20 Government grants.

16. TRADE AND OTHER PAYABLES 31-Dec-22 June 30, 2022

(Rupees)

Trade payables 3,063,669 8,651,507

Accrued expenses 16,899,134 27,413,327
Withholding tax payable 1,071,942 4,077,967
Workers welfare fund 16.1 143,176 143,176
EOBI payable 901,224 796,800
Sales tax payable 682,001 3,031,381
Others 108,920 108,921
22,870,066 44,223,079
16.1 The Finance Act 2006 and Finance Act 2008 introduced amendments to the Workers' Welfare Fund
(WWF) Ordinance, 1971 (the Ordinance) whereby the definition of industrial establishment was
extended. The Honourable Supreme Court of Pakistan vide its judgment dated 10 November 2016 has
annulled the said amendments which were considered to be ultra vires the Constitution of Pakistan.
The Federal Board of Revenue has filed a Civil Review Petitions in respect of said judgment.
Management has booked a provision amounting to Rs. 143,176 on account of WWF provision for the
year 2015 and earlier. The provision has not been reversed on the basis of prudence. Further provision
has not been made on account of WWF.

17. SHORT TERM FINANCE - secured

This represents running finance facility obtained from Askari Bank Limited against available limit of
Rs. 35 million, which carries mark-up @ 3 months KIBOR plus 2% payable quarterly in arrears.
The facility is secured against hypothecation charge over receivables with 25% margin, mortgage
over 100 yards commercial plot situated in Phase - VII (Ext.) DHA, owned by family member of director
and personal guarantees of all directors and owner of mortgaged property. Amount unutilized for such
facility as at 30 December 2021 was Rs. 1,777 thousand (June 30, 2021: Rs. 34,574 thousand).

18. LOAN FROM A RELATED PARTY

Mrs. Dur-e-Shahwar Fareed 18.1 25,964,314 25,964,314

18.1 This represents loan from Ms. Dur-e-Shahwar Fareed (close family member of the Company's
shareholders, Mr. Adil Ahmed and Mr. Sarocsh Ahmed) and bearing interest at the rate of 12% (30
June 2021: 15%) per annum. The loan is payable on demand.

19. CONTINGENCIES AND COMMITMENTS

There were no contingences and commitments as at the reporting date (June 30, 2022 Rs. Nil).

20. REVENUE - net For the half For the half year
year ended ended
December 31, December 31,
2022 2021
(Unaudited) (Unaudited)
(Rupees)

Gross sales 478,268,262 305,602,024

Sales tax (23,913,413) (18,037,534)
454,354,849 287,564,490
Cost of services (234,074,725) (143,283,563)
220,280,124 144,280,927
21. ADMINISTRATIVE AND OPERATING EXPENSES

Salaries and other benefits 87,744,660 73,277,112

Traveling and conveyance 10,526,619 8,097,292
Depreciation 3,241,779 7,894,764
Amortization 447,769 1,028,403
Utilities 4,431,070 4,268,313
Entertainment 4,147,271 3,607,914
Advertisement / sales promotion 1,876,983 345,627
Rent, rates and taxes 6,058,740 4,540,990
Legal and professional 2,038,200 1,160,479
Fees and subscription 369,410 261,050
Repairs and maintenance 1,161,733 287,320
Insurance 2,140,591 377,456
Office supplies 616,113 533,030
Auditors' remuneration 21.1 - 1,782,000
Printing and stationery 183,620 112,652
Communication and courier 89,820 64,155
Miscellaneous expenses 577,945 161,335
125,652,323 107,799,892

21.1 Auditors' remuneration

Audit fee for special purpose financial statement - 1,500,000

Sindh sales tax - 132,000
Out of pocket expenses - 150,000
- 1,782,000
22. OTHER INCOME For the half For the half year
year ended ended
December 31, December 31,
2022 2021
(Unaudited) (Unaudited)
(Rupees)

Interest income on Term Deposit Receipts 482,421 281,188

Amortization of government grant - -
Exchange gain 833,126 1,049,268
1,315,547 1,330,456

23. FINANCE COST

Markup charges on:

- short term finance 427,231 640,847
- lease liabilities 152,410 228,615
- long term borrowings 1,353,552 1,512,656
- loan from a related party 1,200,000 1,268,882
3,133,193 3,651,000

Bank charges 3,349,133 722,179

6,482,326 4,373,179

24. TAXATION

Current 13,866,458 8,834,727

Prior - -
Deferred - -
13,866,458 8,834,727

24.1 Income tax assessments of the Group have been deemed to be finalised upto and including tax year
2021 on the basis of tax return filed under section 120 of Income Tax Ordinance 2001. However, the
return may be selected for detailed audit within five years from the date of filing of return and the
Income Tax Commissioner may amend the assessment if any objection is raised in audit.