LSE Ventures : Transmission of Quarterly accounts 30 September 2023

1st Quarter Report

For the period ended September 30th, 2023

LSE VENTURES LIMITED

Quarterly Report September 30, 2023

Company Information

Board of Directors

1.	Mr. Muhammad Iqbal	Chairman
2.	Mr. Aftab Ahmad Ch.	Chief Executive Officer
3.	Mr. Abid Latif Khan	Non-Executive Director
4.	Ms. Minahil Ali	Non-Executive Director
5.	Mr. Shahnawaz Mahmood	Independent Director
6.	Mr. Muhammad Tabassum Munir	Independent Director
7.	Mr. Yaser Manzoor	Independent Director
Audit Committee
1.	Mr. Shahnawaz Mahmood	Chairman
2.	Ms. Minahil Ali	Member
3.	Mr. Muhammad Tabassum Munir	Member
4.	Mr. Muhammad Sajjad Hyder	Secretary
Human Resource and Remuneration Committee
1.	Mr. Yaser Manzoor	Chairman
2.	Mr. Abid Latif Khan	Member
3.	Mr. Muhammad Tabassum Munir	Member
4.	Mr. Muhammad Sajjad Hyder	Secretary
Company Secretary	Mr. Muhammad Sajjad Hyder
Chief Financial Officer	Mr. Rashid Matin Khan
Auditors		Crowe Hussain Chaudhry & Co. Chartered
		Accountant
Legal Advisor	Allied Legal Services
Share Registrar	CDC Share Registrar Services Limited
		CDC House, 99-B, Block B, S.M.C.H.S., Main
		Shahrah-e-Faisal, Karachi
Registered Office	LSE Plaza, 19 - Khayaban-e-Aiwan-e-Iqbal,
		Lahore

LSE VENTURES LIMITED

Quarterly Report September 30, 2023

LSE Ventures Limited

DIRECTORS' REVIEW

Dear Shareholders,

On behalf of the Board of Directors, we are pleased to present the Un-audited Condensed Interim Financial Statements of the Company for the 1st quarter ended September 30th, 2023.

During the 1st Quarter of FY 2023-24, the economic activities of Pakistan showed some signs of recovery and improvement due to the impact of fiscal measures taken by the government; aiming of attaining fiscal consolidation through broadening the tax base, providing targeted subsidies only to the most vulnerable, and reducing losses of public sector enterprises through privatization or reforms. These measures would also help bring inflation down in the targeted range and achieve sustainable economic growth over the medium term.

Financial Performance - LSEVL

The financial highlights of the Condensed Interim Financial Statements of the Company for the 1st quarter ended September 30, 2023, in comparison with the corresponding 1st quarter of previous year are as follows:

Standalone / Unconsolidated Results:

	1st Quarter	1st Quarter
	September 2022
Financial Highlights	September 2023
Restated
	Rs. in '000	Rs. in '000
Revenue	58,934	13,593
Income from Associates	11,122	7,877
Operating expenditures	(23,437)	(13,138)
Profit/ (Loss) before Taxation	46,618	22,556
Taxation	(7,276)	-
Net Profit / (Loss) for the period	39,342	22,556
Other Comprehensive Income	30,891	-
Total Comprehensive income for the period	70,233	22,556
Earnings/ (Loss) Per Share (EPS)	Rs. 0.22	Rs. 0.13

Directors' Review 1st Quarter September 30, 2023

1

				LSE Ventures Limited
	Segment wise consolidated Results for the 1st Quarter ended September 30, 2023
		Building	Equity &
		debt	Fund
		Management	Total
		instrument	management
		facility
		investment
			Rupees in Thousand
	Revenue	26,192	114,497	5,732	146,420
	Segment results	2917	97,058	3613	103,589
	Other operating expenses				(14,916)
	Finance costs				(53)
	Other income				1,228
	Profit before taxation				89,848
	Taxation				(14,835)
					75,013
	Other Comprehensive Income				-
	Charge to Retained earnings				75,013
	Attributable to:
	Equity holders of the Parent Company				72,780
	Non-controlling interest				2,234
					75,013

Looking at the results of the quarter under review and also last financial year, we are hopeful that the Company will continue with the current momentum and deliver good results in the coming quarters.

Presently, LSEVL aims at providing financing to startup as well as emerging companies, that are believed to have exceptional long-term growth potential. It also offers technical or managerial expertise to the growth enterprises at various stages of their evolution. In addition to investment capital, LSEVL often provides business planning, due diligence and mentoring services to help companies to establish themselves, and provide networking services to help them find additional capital.

The Company is very vigilantly monitoring its investments in associates and other strategic investments and will always endeavor for their optimization through prudent investment decision. However, the present socio-economic environment and investment climate is quite challenging.

Chief Executive

October 26, 2023

Directors' Review 1st Quarter September 30, 2023

2

	LSE VENTURES LIMITED
CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
	AS AT SEPTEMBER 30, 2023 (UN-AUDITED)
		Note
ASSETS
NON-CURRENT ASSETS
Investment in subsidiaries	5
Investment in associates	6
Financial assets	7
Long term deposits
CURRENT ASSETS
Financial assets	7
Trade and other receivables	8
Prepayments and advances	9
Tax refunds due from the Government - net	10
Cash and bank balances	11

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authozied share capital

200,000,000 (June 30, 2023: 200,000,000) ordinary shares of Rs. 10 each

Issued, subscribed and paid-up capital	12
Capital reserves
Demerger Reserve
Fair value Reserve
Revenue reserves
Unappropriated profit
NON-CURRENT LIABILITIES
Deferred taxation
CURRENT LIABILITIES
Trade and other payables	14
Provision for taxation
Unpaid / unclaimed Dividends
CONTINGENCIES AND COMMITMENTS
The annexed notes 1 to 22 form an integral part of these financial statements.
Lahore:	Chief Executive Officer	Chief Financial Officer

September 30,	June 30,
2023	2023

Un-AuditedAudited

Rupees in thousands

369,529369,529

1,254,679 1,231,363

366,255366,255

100100

1,990,563 1,967,247

	444,955		348,987
	82,609		51,817
	20,401		7,929
	3,749		224
	1,037		83,903
552,751		492,860
	2,543,314		2,460,107

2,000,000	2,000,000
1,795,979	1,795,979
26,533	26,533
42,773		11,883
69,306		38,416
402,118	362,776
2,267,404		2,197,171
160,495	156,997
58,195	47,585
9,339		9,331
47,882		49,023
115,415		105,939
-	-
2,543,314	2,460,107

Director

LSE VENTURES LIMITED

CONDENSED UNCONSOLIDATED INTERIM STATEMENT OF PROFIT OR LOSS

FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)

			Quarter ended
			September 30,		September 30,
			2023	2022
	Note	Un-Audited		Un-Audited
					Restated
			Rupees in thousands
REVENUE	15		58,196	9,897
OTHER INCOMES	16		738	17,936
			58,934		27,833
OPERATING EXPENSES
Administrative and general expenses	17		(23,437)	(13,132)
Other operating expenses			-	(16)
OPERATING PROFIT
		35,497	14,685
Finance cost			-	(6)
Income from associate(s)			11,122	7,877
PROFIT BEFORE TAXATION
		46,618	22,556
Taxation	18		(7,276)	-
PROFIT AFTER TAXATION
		39,342	22,556
EARNINGS PER SHARE OF RS. 10 EACH - basic and diluted	19		0.22	0.13
The annexed notes 1 to 22 form an integral part of these financial statements.

Lahore

Chief Executive Officer

Chief Financial Officer

Director

LSE VENTURES LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)

	Quarter ended
	September 30,	September 30,
	2023	2022
Note	Un-Audited	Un-Audited
	Rupees in thousands

PROFIT FOR THE PERIOD

Other comprehensive income

Unrealized gain on investments classified as available for sale Impact of deferred tax

Items that will never be reclassified to statement of profit or loss: Fair value gain on investments (under FV through OCI)

Less: Impact of deferred tax

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

39,342

-

-

-

36,342

(5,451)

30,891

70,233

22,556

-

-

-

-

-

-

22,556

The annexed notes 1 to 22 form an integral part of these financial statements.

Lahore

Chief Executive Officer

Chief Financial Officer

Director

LSE VENTURES LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

QUARTE

SHARE CAPITAL		CAPITAL RESERVES			REVENUE RESERVES
Issued, subscribed		Demerger	Fair value	Total		Unappropriated profit
and paid up capital		Reserve	Reserve					TOTAL EQUITY

………………………………………………...Rupees in thousands……………………………………………………….

Profit for the period

Other comprehensive income

Total comprehensive income for the period

Transactions with owners of the company

Fresh issuance of share capital

Transfer of share capital from LSE Financial Services Limited

Demerger reserve arisen due to dermerger

Charge of expenses incurred on listing of company

Balance as at September 30, 2022 - Un-audited (Restated)

Balance as at June 30, 2023 - Audited

Profit for the period

Other comprehensive income - net of tax

Total comprehensive income for the period

Balance as at September 30, 2023 - un-audited

The annexed notes 1 to 22 form an integral part of these financial statements.

-

-

-

10,000

1,812,512

(26,533)

1,795,979

-

1,795,979

1,795,979

-

-

-

1,795,979

-

-

-

-

26,533

26,533

-

26,533

26,533

-

-

-

26,533

-

-

-

-

-

-

-

-

-

11,883

-

30,891

30,891

42,773

-

-

-

-

-

26,533

26,533

-

26,533

38,416

-

30,891

30,891

69,306

22,556

-

22,556

-

-

116,942

116,942

(43,190)

96,308

362,776

39,342

-

39,342

402,118

22,556

-

22,556

10,000

1,812,512

116,942

1,939,454

(43,190)

1,918,820

2,197,171

39,342

30,891

70,233

2,267,404

Lahore

Chief Executive Officer

Chief Financial Officer

Director

LSE VENTURES LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

FOR THE QUARTER ENDED SEPTEMBER 30, 2023 (UN-AUDITED)

	Note
Cash flows from operating activities
Profit before tax
Adjustments for non - cash and other items:
Dividend income
Share of profit of associates
Return on investments
Loss before working capital changes
Movement in working capital	20
Cash (used in) / generated from Operations
Employees welfare fund
Finance cost paid
Income tax paid
Net cash (used in) / generated from operating activities
Cash flows from investing activities
Investments made during the period
Investments matured during the period
advance from subsidiaries
Profit received on saving accounts, Teasury bills & MTS
Dividend received from Associates
Net cash generated from investing activities
Cash flows from financing activities
Share deposit money received
Un claimed dividend paid
Net cash (used in) / generated from financing activities
Net Increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year	11

The annexed notes 1 to 22 form an integral part of these financial statements.

Lahore

Chief Executive Officer

Chief Financial Officer

1st Quarter ended

September 30, September 30,

20232022

Un-AuditedUn-Audited

Restated

Rupees in thousands

46,61822,556

	(35,427)		-
	(11,122)		(7,877)
	(23,397)		(12,922)
(69,946)		(20,799)
(1,544)	(2,279)
	(24,872)		(524)
-	(40)
-	(95)
(3,749)	(3,451)
	(28,621)		(4,110)
	(116,485)	-
	13,400		(8,411)
	2,118		-
	23,715		12,975
	24,147		-
(53,104)	4,469
	-	10,000
	(1,141)		-
(1,141)	10,000
(82,866)	10,360
83,903	-
	1,037		10,360

Director

LSE VENTURES LIMITED

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2023

1. Legal status and operations
   LSE Ventures Limited (the Company) was registered on July 18, 2022 under the Companies Act, 2017 (XIX of 2017) as a public unlisted company limited by shares. In June 2023, the Company obtained the listing status under the symbol "LSEVL" at Pakistan Stock Exchange as a result of demerger scheme approved on April 26, 2023 by the Honorable Lahore High Court, accomplished through a reverse merger with Data Textiles Limited.
   The Company is domiciled in Pakistan and the principal line of business of the Company is to invest in shares, bonds, stocks, units of mutual funds or any other securities or its related instruments or otherwise in all types of real assets and in such manner as may from time to time be determined by the Company and to hold, or sale such real assets, shares, bonds, stocks, units of mutual funds or any other securities or its related instruments, subject to the compliance with applicable laws.
2. BASIS OF PREPARATION

This unconsolidated condensed interim financial information has been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984 provisions of and directives issued under the Companies Act,2017. Wherever the requirements of the Companies Act, 2017, differ with the requirements of IFRS, the requirements of the Companies Act, 2017 shall prevail.

This uncolsolidated condensed interim financial information does not include all information required for annual financial statements and therefore should be read in conjunction with the annual financial statements for the year ended June 30, 2023.

The management of the Company is confident that it will be able to meet its obligations and carry on business without any curtailment based on the grounds that the Company will be able to achieve satisfactory level of profitability in the future based on the plans drawn up by the management for this purpose, which include income arising from rentals and investments.

3 ACCOUNTING POLICIES

The significant accounting policies are adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.

4 Taxation

Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year.