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Pak Datacom Limited3rd Quarter ReportJuly 2010 to March 2011 (Un-audited)Pak Datacom

PAK DATACOM LIMITEDCOMPANY PROFILEBOARD OF DIRECTORS1.2.3.4.5.6.7.Gul Bahadar YousafzaiAli Akhtar BajwaIftikhar Ahmed RajaMuhammad ArifSyed Gauhar AliAmjad Hussain QureshiSheikh Muhammad AfzalChairmanChief ExecutiveCFO / COMPANY SECRETARYSyed Sajjad Hasan JafriAUDIT COMMITTEE1.2.3.Iftikhar Ahmed RajaMuhammad ArifAmjad Hussain QureshiREGISTERED OFFICE1st Floor, TF Complex, 7 - Mauve Area, G-9/4, IslamabadHEAD OFFICE3rd Floor, Umar Plaza, Blue Area, IslamabadTel # (051) 2872691, 2823677, Fax # (051) 2823270SHARES DEPARTMENTHassan Farooq Associates (Private) Limited,HF House, 7-G Mushtaq Ahmed Gormani Road, Gulberg II, LahoreTel # (042) 35761661-2, Fax # (042) 35755215AUDITORSHLB Ijaz Tabussum & Co.,Chartered Accountants,303, Sawan Road, G-10/1, IslamabadLEGAL ADVISORM.A. Chaudhary & Co.,Advocates & Corporate Consultants,1-Wasil Plaza # 105, Blue Area, Islamabad

PAK DATACOM LIMITED1DIRECTORS' REPORTThe Board of Directors of Pak Datacom Limited (PDL) is pleased to presentcompany's operational results of third quarter of the financial year 2010 - 2011 i.e.from 1st July, 2010 to 31st March, 2011.PDL has earned total revenue of Rs. 491.592 million during first nine months ofcurrent financial year as compared to Rs. 770.380 million of the correspondingperiod of last year while it has posted pre-tax profit of Rs. 11.435 million ascompared to Rs. 190.823 million of the same period of last year.The decline in revenue is mainly due to completion of business tenure of somelocal as well as international customers clubbed with prevailing economicrecession in the country, cost cuttings by corporate sector and discounts given forretention of valued clients. To counter the revenue decline, PDL is looking foralternate options like undertaking operations in UAE, exploring new iDirectcorporate customers, acquiring new technologies and special projects. We alsotake pleasure to inform that PDL has obtained infrastructure license in April 2011and became the first company to have such license. This will help PDL to positionthe Company for new business and establish more revenue streams.In order to remain competitive in the market and also as a part of reducing the costof network operations, PDL is in process of network optimization and activelynegotiating with media providers to reduce the cost. In order to revitalizeresources, PDL has started to increase its presence in small cities where no otherservice provider is currently working.We fairly hope that all these actions will bring better results during the nextfinancial year. The management expects that despite current downfall, theCompany will regain its activity level with strenuous marketing efforts, long termvision and dedication of Company's employees.On behalf of the BoardIslamabadApril 27, 2011Ali Akhtar BajwaChief Executive

PAK DATACOM LIMITED2CONDENSED INTERIM BALANCE SHEETAS AT MARCH 31, 2011NoteUn-auditedMarch 31,2011RupeesAuditedJune 30,2010RupeesEQUITY AND LIABILITIESSHARE CAPITAL AND RESERVESAuthorised share capital 10,000,000 ordinary shares(June 2010: 10,000,000) of Rupees 10 eachIssued, subscribed and paid up capitalReserves4NON-CURRENT LIABILITIESDeferred liabilitiesCURRENT LIABILITIESCustomers' depositsDue to associated companiesTrade and other payablesProvision for taxationCONTINGENCIES AND ETSNON-CURRENT ASSETSProperty, plant and equipmentIntangible assetsCURRENT ASSETSTrade debts - unsecuredAdvancesTrade deposits and short term prepaymentsOther receivablesInterest accruedAdvance taxShort term investmentsCash and bank balances67The annexed notes 1 to 13 form an integral part of these financial statements.AMJAD HUSSAIN QURESHIDIRECTORALI AKHTAR BAJWACHIEF EXECUTIVE

PAK DATACOM LIMITED3CONDENSED INTERIM STATEMENT OFCOMPREHENSIVE INCOME (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2011NoteRevenueCost of servicesAdministrative expensesMarketing expenses8910Operating profitQuarter EndedMarch 31,March 31,20112010RupeesRupeesNine Months EndedMarch 31,March 31,20112010RupeesRupees101,933,863 271,157,749 491,591,621 770,379,950(133,398,965) (181,885,481) (436,243,329) (540,675,321)(31,465,102) 89,272,26855,348,292 229,704,629(17,182,601) (20,908,815)(488,560)(559,310)(17,671,161) (21,468,125)(49,136,263) 67,804,143(56,802,167) (54,082,186)(812,634)(990,950)(57,614,801) (55,073,136)(2,266,509) 174,631,493Other operating ,40512,534,896Finance costProfit before 99,666)(468,648)11,435,230 190,822,527Provision for taxationProfit after 51(5,308,908) (66,497,575)6,126,322 124,324,952Other comprehensive incomeNet profit for the 0.7815.86Earning per share11(3.82)16,659,682191,291,175The annexed notes 1 to 13 form an integral part of these financial statements.AMJAD HUSSAIN QURESHIDIRECTORALI AKHTAR BAJWACHIEF EXECUTIVE

PAK DATACOM LIMITED4CONDENSED INTERIM CASH FLOW STATEMENTS (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 2011CASH FLOWS FROM OPERATING ACTIVITIESProfit for the year before taxationAdjustment for non-cash and other items:DepreciationAmortisationGain loss on disposal of property, plant and equipmentNet book value of assets charged to consumptionFinance costExchange gain /(loss)Return / Interest on bank depositsProvision for gratuityProvision for earned leaveOperating profit before working capital changes(Increase)/decrease in current assetsTrade debts - unsecuredAdvancesTrade deposits and short term prepaymentsOther receivablesMarch 31,2011RupeesMarch 33,3143,398,352254,480,736Increase/(decrease) in current liabilitiesCustomers' depositsDue to associated companiesTrade and other payablesCash generated from operationsTaxes paidGratuity paid/adjustedEarned leave paid/ adjustedReturn / Interest on bank depositsFinance costNet cash flows from operating activitiesCASH FLOWS FROM INVESTING ACTIVITIESFixed capital expenditureIntangible assetsProceeds on the disposal of property, plant and equipmentNet cash flows in investing activitiesCASH FLOWS FROM FINANCING ACTIVITIESDividend paidNet (decrease)/increase in cash and cash equivalentsCash and cash equivalents at the beginning of the periodEffect of foreign exchange rate changeCASH AND CASH EQUIVALENTS AT THE END OF THE PERIODThe annexed notes 1 to 13 form an integral part of these financial statements.AMJAD HUSSAIN QURESHIDIRECTORALI AKHTAR BAJWACHIEF EXECUTIVE

FOR THE NINE MONTHS ENDED MARCH 31, 2011Balance as at March 31, 2009Transfer to General reservesTransactions with ownersInterim dividend for the year ended June 30, 2009Net profit for the periodBalance as at June 30, 2009Transfer to General reservesTransactions with ownersFinal dividend for the year ended June 30, 2009Interim dividend for the year ended June 30, 2010Net profit for the periodBalance as at March 31, 2010Transfer to General reservesTransactions with ownersNet profit for the periodBalance as at June 30, 2010Transfer to General reservesTransactions with ownersFinal dividend for the year ended June 30, 2010Interim dividend for the year ending June 30, 2011Net profit for the periodBalance as at March 31, 2011Share CapitalIssued,subscribed andpaid-upRupeesCapital ReservesRevenue 802,065PAK DATACOM LIMITEDCONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)The annexed notes 1 to 13 form an integral part of these financial statements.5AMJAD HUSSAIN QURESHIDIRECTORALI AKHTAR BAJWACHIEF EXECUTIVE

PAK DATACOM LIMITED6NOTES TO THE CONDENSED INTERIMFINANCIAL STATEMENTS (UN-AUDITED)FOR THE NINE MONTHS ENDED MARCH 31, 20111LEGAL STATUS AND OPERATIONSPak Datacom Limited (the Company), a subsidiary of Telecom Foundation, was incorporated inPakistan on July 13, 1992 as a private limited company under the Companies Ordinance, 1984and was converted into a public limited company on June 26, 1994. The Company started itscommercial activities on July 1, 1994. The Company is listed on all stock exchanges of Pakistan.The registered office of the Company is located at 1st Floor, TF Complex, 7 - Mauve Area, G - 9/4,Islamabad. The objective of the Company is to set up, operate and maintain a network of datacommunication and to serve the needs of the subscribers against approved tariff charges. TheCompany is also authorised to carry out any business relating to communication and informationtechnology whether manufacturing or otherwise, that may seem to the company capable of beingconveniently carried on to enhance the value of or render profitable any of the company'sproperty or rights or which it may be advisable to undertake with a view to improve the profitabilityof the company, subject to a License from Pakistan TelecommunicationAuthority.2STATEMENT OF COMPLIANCEThese condensed interim financial statements of the company for the nine months ended March31, 2011 has been prepared in accordance with the requirements of International AccountingStandard (IAS) 34 - Interim Financial Reporting and provisions of and directives issued under theCompanies Ordinance, 1984. In case where requirements differ, the provisions of or directivesissued under the Companies Ordinance, 1984 have been followed.3ACCOUNTING POLICIES3.1 The accounting policies and the methods of computation adopted in preparation of thesecondensed interim financial statements are the same as those applied in preparation offinancial statements for the year ended June 30, 2010. These condensed interim financialstatements does not include all the information required for full annual financial statementsand should be read in conjunction with annual financial statements for year ended June 30,2010.3.2 There are certain new standards, amendments and interpretations of approved accountingstandards that became effective during the period, however these do not have anysignificant impact on these financial statements.4ISSUED, SUBSCRIBED AND PAID UP CAPITAL5,400,000 (June 2010: 5,400,000) ordinary shares ofRs. 10/- each fully paid in cash2,440,800 (June 2010: 2,440,800) ordinary shares ofRs. 10/- each issued as fully paid bonus sharesUn-auditedMarch 31,2011RupeesAuditedJune 00024,408,00078,408,000Out of total issued share capital, 4,318,683 (June 2010: 4,318,683) ordinary shares are held byTelecom Foundation, Pakistan.

PAK DATACOM LIMITED57CONTINGENCIES AND COMMITMENTS5.1 Guarantees, letter of credit and stand by letter of credit (SBLC) issued by the bank on behalfof the Company amounted to Rs.95.368 million (June 2010: Rs. 36.188 million) includingSBLC of US 1.000 million (June 2010 : nil) issued in favour of a satellite operator against afuture prospective business.5.2 Capital commitments in respect of purchase of equipment outstanding amounted to Rs.3.93 million (June 2010: Rs.6.807 million).67Un-auditedMarch 31,2011RupeesPROPERTY, PLANT AND EQUIPMENTCostOpening balanceAdditions/ acquisitions during the periodDeletion/disposals during the periodClosing ated depreciationOpening balanceAdditions/ acquisitions during the periodDeletion/disposals during the periodClosing balanceNet book 99397,196,351INTANGIBLE ASSETSComputer softwaresCostOpening balanceAdditions during the periodDeletion/disposals during the periodClosing balanceAccumulated amortisationOpening balanceAdditions during the periodDeletion/disposals during the periodClosing balanceNet book valueAmortisation rate per annumQuarter endedMarchMarch31, 201031, 2011RupeesRupees8AuditedJune 30,2010RupeesCOST OF SERVICESChannel and local lead rentSpace segment rentalsEquipment maintenance costRepair and maintenance expensesLicense feeSalaries and other benefitsDepreciationAmortisation of intangible 1933.33%-Nine months endedMarchMarch31, 201031, 2011RupeesRupees41,843,097 50,341,451 142,362,256 147,904,60532,614,844 82,920,561 130,351,616 09,547,0225,668,22527,852,640 23,278,295 88,183,267 79,100,71117,758,726 18,959,752 51,716,636 55,369,449232,670449,687133,398,965 181,885,481 436,243,329 540,675,321