UNIVERSITY OF CENTRAL PUNJAB

FALL 2024
Course Title: Financial Analysis
Course Code: AF3263

Assignment No.1
Course Instructor: M. S. Anjum

Program BSAF Dated: 20-11-2024

Submission Deadline:
Maximum Marks: 20 Obtained Marks:

Program Objective: Course Objective: Course Learning Objective:

PEO1 & PEO2 CO1 & CO2 CLO1& CLO2

TO BE FILLED IN BY THE STUDENT

Reg-# Student Name: Section:

Instructions:
Use attached financial statements of Netsol for the year ended June 30, 2024 for assignment.
Assignment is hand-written and should be on plain/assignment pages. Please simply (stapple)
pin your assignment pages and there is no need to add a file cover. Please show calculations as
well.

Requirements:

1- Calculate and compare all profitability ratios for 2024

2- Calculate all liquidity ratios
3- Calculate all solvency ratios
4- Calculate all activity ratios

Financial Analysis UCP-Business School

NETSOL Technologies Limited

Consolidated Statement of Financial Position

As at June 30, 2024

2024 2023
NOTE
Rupees in Thousands
ASSETS
NON CURRENT ASSETS
Property and equipment 6 1,221,182 1,521,472
Intangible assets 7 - 40,386
Long term contract assets 8 52,637 -
Long term loans to employees 9 22,860 4,392
1,296,679 1,566,250
CURRENT ASSETS
Trade debts 10 5,326,984 5,662,696
Contract assets 11 1,787,247 1,979,310
Loans and advances 12 118,428 64,849
Deposits and short term prepayments 13 116,701 128,720
Other receivables 14 54,026 26,109
Due from related parties 15 514,396 466,457
Prepaid tax asset 16 35,730 6,388
Cash and bank balances 17 4,669,162 2,633,066
12,622,674 10,967,595
TOTAL ASSETS 13,919,353 12,533,845

The annexed notes from 1 to 50 form an integral part of these financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR CHIEF FINANCIAL OFFICER

142
 Annual Report 2024

2024 2023
NOTE
Rupees in Thousands
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital
200,000 (2023: 200,000) ordinary shares of Rs. 10 each 2,000,000 2,000,000
Issued, subscribed and paid up capital 18 898,369 898,369
Reserves 19 9,208,065 7,994,307
Share deposit money 13 13
Shareholders’ Equity 10,106,447 8,892,689
NON-CURRENT LIABILITIES
Long term financing 20 2,696 49,627
Lease liabilities 21 - 971
Long term advances 22 1,995 16,675
4,691 67,273
CURRENT LIABILITIES
Trade and other payables 23 763,340 819,451
Contract liabilities 24 1,446,955 1,124,654
Short term borrowings 25 1,580,000 1,580,000
Current portion of non-current liabilities 26 14,096 45,924
Unclaimed dividends 3,824 3,854
3,808,215 3,573,883
CONTINGENCIES AND COMMITMENTS 27 - -
TOTAL EQUITY AND LIABILITIES 13,919,353 12,533,845

The annexed notes from 1 to 50 form an integral part of these financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR CHIEF FINANCIAL OFFICER

143
NETSOL Technologies Limited

Consolidated Statement of Profit or Loss

For the Year Ended June 30, 2024

2024 2023
NOTE
Rupees in Thousands
(Restated)
Revenue from contracts with customers - net 28 9,579,636 7,787,816
Cost of revenue 29 (5,393,989) (5,638,308)
Gross profit 4,185,647 2,149,508
Selling and promotional expenses 30 (957,063) (777,153)
Administrative expenses 31 (1,440,338) (1,368,810)
(2,397,401) (2,145,963)
Operating Profit 1,788,246 3,545

Other operating expenses 32 (694,632) (547,234)

Finance cost 33 (315,048) (189,813)
Other income 34 597,988 1,998,474
Share of loss of associate 35 - (33,687)
(411,692) 1,227,740
Profit before Final Taxes and Income Tax 1,376,554 1,231,285
Final tax / levies 36 (173,501) (192,832)
Profit before Income Tax 1,203,053 1,038,453
Income Tax - -
Net Profit for the Year 1,203,053 1,038,453
Earnings per Share 37
- Basic 13.70 11.82
- Diluted 13.59 11.79

The annexed notes from 1 to 50 form an integral part of these financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR CHIEF FINANCIAL OFFICER

144
 Annual Report 2024

Consolidated Statement of Comprehensive Income

For the Year Ended June 30, 2024

2024 2023
Rupees in Thousands
Net Profit for the Year 1,203,053 1,038,453
Other comprehensive income

Items that may be re-classified subsequently to profit or loss - -

-Exchange difference on translation of foreign operation (381) 925

-Reclassification / share of other comprehensive loss of an associate - 33,687

Items that will not be re-classified subsequently to profit or loss - -

Total other comprehensive income (381) 34,612

Total Comprehensive Income for the Year 1,202,672 1,073,065

The annexed notes from 1 to 50 form an integral part of these financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR CHIEF FINANCIAL OFFICER

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NETSOL Technologies Limited

Consolidated Statement of Cash Flows

For the Year Ended June 30, 2024

2024 2023
NOTE
Rupees in Thousands
Profit before taxation 1,376,554 1,231,285
Adjustments for:
- Depreciation - own assets 6 344,297 393,361
- Depreciation of right of use assets 6 2,246 2,674
- Amortization of intangible assets 7 40,386 293,504
- (Gain) / Loss on disposal of property and equipment 6 (28,739) 6,184
- Foreign exchange loss / (gain) 32 327,314 (1,701,418)
- Finance cost 33 309,977 185,973
- Interest income 34 (514,589) (296,156)
- Employee share option compensation expense 19 11,086 21,478
- Amortization of deferred grant - (712)
- Provision for expected credit losses 11 (51,760) 167,574
- Reclassification / share of loss of associate 35 - 33,687
440,218 (893,851)
Operating profit before working capital changes 1,816,772 337,434
Decrease / (Increase) in current assets
- Trade debts 10 177,722 (1,611,019)
- Contract assets 11 49,892 (214,327)
- Loans and advances 12 (72,047) (28,706)
- Trade deposits and short term prepayments 13 12,019 (74,270)
- Other receivables 14 (27,917) (12,299)
- Due from related parties 15 (47,939) (16,675)
(Decrease) / Increase in current liabilities
- Trade and other payables 23 (39,676) 153,750
- Contract liabilities 24 322,301 766,150
Cash Generated from / (Used in) Operations 374,355 (1,037,396)
Levy / final tax paid 36 (202,843) (198,465)
Dividend paid (30) (111)
(202,873) (198,576)
Net Cash Generated from / (Used in) Operating Activities 1,988,254 (898,538)
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for acquisition of property and equipment 6 (119,683) (390,185)
Proceeds from disposal of property and equipment 6 105,304 82,403
Advance against capital expenditure 6 (3,134) 4,080
Interest received 34 514,589 296,156
Net Cash Generated from Investing Activities 497,076 (7,546)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of lease liabilities 21 (4,280) (4,445)
Repayment of long term loan 9 (90,955) (140,959)
Short term borrowing - net 25 (338,924) (119,203)
Long term advances - net 22 (14,680) 8,700
Net Cash Used in Financing Activities (448,839) (255,907)
Net Increase/(Decrease) in Cash and Cash Equivalents 2,036,491 (1,161,991)
Net foreign exchange difference (395) 925
Cash and cash equivalents at the beginning of year 2,633,066 3,794,132
Cash and Cash Equivalents at the End of the Year 4,669,162 2,633,066

The annexed notes from 1 to 50 form an integral part of these financial statements.

CHIEF EXECUTIVE OFFICER DIRECTOR CHIEF FINANCIAL OFFICER

146