HALF YEARLY REPORT HEAD OFFICE 1-B, Aziz Avenue, Gulberg-V, Lahore- Pakistan Tel: 042-35717090-96...

HALF YEARLYREPORT

2016FOR THE PERIOD ENDED JUNE 30,

Half Yearly Report 2016 1

CONTENTS02 CompanyProfile03 Directors’Report07 Auditor’sReporttotheMembersonReview ofCondensedInterimFinancialInformation08 CondensedInterimBalanceSheet10 CondensedInterimProfitandLossAccount andOtherComprehensiveIncome11 CondensedInterimCashFlowStatement12 CondensedInterimStatementofChangesinEquity13 SelectedNotestotheCondensedInterimFinancialInformation

2 PAKGEN POWER LIMITED

COmpaNy prOfilETHE COMPANY Pakgen Power Limited (“the Company”) was

incorporated in Pakistan on 22 June 1995 underthe Companies Ordinance, 1984. The registeredoffice issituatedat53-A,LawrenceRoad,Lahore.TheprincipalactivitiesoftheCompanyaretoown,operateandmaintainanoilfiredpowerstation(“theComplex”) having gross capacity of 365 MW inMehmoodKot,Muzaffargarh,Punjab,Pakistan.

BOARD OF DIRECTORS MianHassanMansha Chairman Mr.AurangzebFeroz Mr.KhawajaMuhammadYounus Mr.ShahidMalik Dr.ArifBashir Mr.KamranRasool Mr.MahmoodAkhtarCHIEF EXECUTIVE OFFICER Mr.GhazanfarHusainMirzaAUDIT COMMITTEE Mr.AurangzebFeroz Chairman Mr.ShahidMalik Mr.KhawajaMuhammadYounusHUMAN RESOURCE & REMUNERATION MianHassanMansha ChairmanCOMMITTEE Mr.KamranRasool Mr.GhazanfarHusainMirzaCHIEF FINANCIAL OFFICER Mr.KhalidQadeerQureshiCOMPANY SECRETARY Mr.KhalidMahmoodChohanBANKERS OF THE COMPANY HabibBankLimited TheBankofPunjab SilkBankLimited UnitedBankLimited AlliedBankLimited NationalBankofPakistan BankAlfalahLimited FaysalBankLimited AskariBankLimited HabibMetropolitanBankLimited NIBBankLimited MCBBankLimited BankIslamiPakistanLimited AlBarakaBank(Pakistan)LimitedAUDITOR OF THE COMPANY RiazAhmad&Co. CharteredAccountantsLEGAL ADVISOR OF THE COMPANY Mr.M.AurangzebKhan AdvocateHighCourtREGISTERED OFFICE 53-A,LawrenceRoad, Lahore-Pakistan UAN:042-111-11-33-33HEAD OFFICE 1-B,AzizAvenue,Gulberg-V, Lahore-Pakistan Tel:042-35717090-96 Fax:042-35717239SHARE REGISTRAR CentralDepositoryCompanyofPakistanLimited CDCHouse,99-B,Block-B,S.M.C.H.S Shahra-e-Faisal,Karachi-74400 Tel:(92-21)111-111-500 Fax:(92-21)34326053PLANT MehmoodKot,Muzaffargarh, Punjab-Pakistan.


DirECTOrS’ rEpOrT

TheDirectorsofPakgen Power Limited “the Company”arepleasedtopresenttheirreporttogetherwithoperationalandfinancialresultsofyourCompanydulyreviewedbystatutoryauditorsfortheHalfyearended30June2016.

YourCompanyisengagedinpowergenerationwithadependablecapacityof350.00MWfurnaceoilfiredpowerplantagainstagrosscapacityof365MW.ItssharesarelistedonthePakistanStockexchange.TheSolepurchaserofthepowerisWaterandPowerDevelopmentAuthority(WAPDA).

SIGNIFICANT EVENT DURING THE PERIOD

Plantoperation restoredonJanuary29,2016aftera long intrupptionasa resultofGeneratorStepupTransformer(GSU)failureonFebruary7,2015.Plantremainedinoperationmostofthetimeinperiodunderreferencefrom29January2016onwardsanddispatched824,024MWHofelectricityascomparedwith245,200MWHdispatchedduringthecorrespondingsixmonthsofthepreviousfinancialyear.

TheCompany’slossofgrossprofitandcostsforreplacementoftransformerduetothisforcedoutageareadequatelycoveredundertheinsurancepolicyexceptfordeductibleperiodandamountasperinsurancepolicy.ThenetpayableamountasfullandfinalsettlementofGSUtransformerclaimdulyassessedbyM/SHamidMukhtar&Co.(Pvt)Ltd(lossadjustor)isamountingtoRupees502.662milliononaccountofpropertydamageandRupees2,494.171milliononaccountofbusinessintruptionoutofwhichpartialpaymentofclaimamountingtoRupees1,230millionhasbeenreceivedfromtheinsurancecompanyuptothisperiod.

TheCompanyhaspostedaftertaxProfitofRs.98.622millionasagainstLossofRs.455.500millionincurredinthecomparativeperiod.ThenetProfitoftheCompanydemonstratedtheProfitperShareofRs.0.27asagainstRs.(1.22)Losspershareinthepreviousperiod.ThemainreasonofvariationinProfitisdecreaseinLiquidateddamagesasplantresumedoperationsduringtheperiodunderreference.

Wereportthatduringtheperiodunderreviewpowerplantbyachievingalltheoperatingstandardsdispatched824,024MWHofelectricityascomparedwith245,200MWHdispatchedduringthecorrespondingsixmonthsofthepreviousfinancialyear.Resultantlythecapacityfactorremainedat54.4%asagainst16.2%demonstratedinthecomparablesixmonthsofthepreviousfinancialyear.

Withrespecttoauditor’scommentsintheirreportwereportthatWAPDAhasraisedinvoicesforliquidatedamagestothecompanyonaccountofshortsupplyofelectricitybythecompany.TheCompanydisputesandrejectsliquidateddamagesclaimedbyWAPDAonthepremisethatitsfailuretodispatchelectricitywasduetoWAPDA’snon-paymentofduesontimelybasistotheCompanyandconsequentialinabilityoftheCompanytomaketimelypaymentstoitsfuelsuppliersthatresultedininadequatelevelofelectricityproductionowingtoshortageoffuel.AgainstthesetheCompanyhasraisedinvoicedisputenoticestoWAPDA.

TheCompanyaftermediationwithWAPDAhasappointedtheexpertunderthemechanismgiveninthePPAwhohascommencedhiswork.Further,accordingtolegaladviceavailablewiththeCompany,thereareadequategroundstodefendanyclaimbyWAPDAforsuchliquidateddamages.


Dividend Distribution

TheCompanycontinues tohonor it’scommitmentofsafeguarding theshareholders’ interestsandtakesimmensepleasureininformingyouthattheBoard,intheirmeetingheldonAugust23,2016hasannounced1stInterimCashDividendattherateofPKR1/-pershare(i.e.10%)forthehalfyearendedJune30,2016forwhichthedateofentitlementhasbeenfixedas24September2016to30September2016.

Acknowledgement

Wewishtothankourvaluableshareholders,WAPDA,financialinstitutions,lenders,PakistanStateOilandothersuppliersfortheirtrustandfaith intheCompanyandtheirvaluablesupportthatenabledtheCompanytoachievebetterresults.

Wealsoappreciatethemanagementforestablishingamodernandmotivatingworkingclimateandpromotinghighlevelsofperformanceinallareasofthepowerplant.Wealsotakethisopportunitytothankourexecutivesandstaffmembersfortheirconsistentsupport,hardworkingandcommitmentfordeliveringremarkableresultsandwewishfortheirlongliferelationshipwiththeCompany.

For and on behalf of the Board of Directors

(Ghazanfar Hussain Mirza)ChiefExecutiveOfficerLahore:23August2016


Introduction

Wehave reviewed the accompanying condensed interimbalance sheet ofPAKGENPOWERLIMITEDasat30June2016andtherelatedcondensedinterimprofitandlossaccount,condensedinterimcashflowstatementandcondensedinterimstatementofchangesinequitytogetherwiththenotesformingpartthereof(hereinafterreferredtoas“condensedinterimfinancialinformation”),forthehalfyearthenended.ManagementisresponsibleforthepreparationandpresentationofthiscondensedinterimfinancialinformationinaccordancewithapprovedaccountingstandardsasapplicableinPakistanforinterimfinancialreporting.Ourresponsibilityistoexpressaconclusiononthiscondensedinterimfinancialinformationbasedonourreview.Thefiguresofthecondensedinterimprofitandlossaccountforthequartersended30June2016and30June2015havenotbeenreviewedandwedonotexpressaconclusiononthemaswearerequiredtoreviewonlythecumulativefiguresforthehalfyearended30June2016.

Scope of Review

Weconductedour review inaccordancewith InternationalStandardonReviewEngagements2410, “Reviewof Interim Financial InformationPerformedby the IndependentAuditor of theEntity”.Areviewofcondensedinterimfinancialinformationconsistsofmakinginquiries,primarilyofpersonsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.AreviewissubstantiallylessinscopethananauditconductedinaccordancewithInternationalStandardsonAuditingandconsequentlydoesnotenableustoobtainassurancethatwewouldbecomeawareofallsignificantmattersthatmightbeidentifiedinanaudit.Accordingly,wedonotexpressanauditopinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that theaccompanyingcondensedinterimfinancialinformationasofandforthehalfyearended30June2016isnotprepared,inallmaterialrespects,inaccordancewithapprovedaccountingstandardsasapplicableinPakistanforinterimfinancialreporting.

Emphasis of matter

WedrawattentiontoNote6.1.1tothecondensedinterimfinancialinformationwhichdescribestheuncertaintyregardingoutcomeofclaimslodgedbyWaterandPowerDevelopmentAuthority(WAPDA),whichhavebeendisputedbythecompany.Ourconclusionisnotqualifiedinrespectofthismatter.

RIAZ AHMAD & COMPANYChartered Accountants

Name of engagement partner:Mubashar Mehmood

Lahore:August23,2016

aUDiTOrS’ rEpOrT TO THE mEmBErSON rEViEW Of CONDENSED iNTErim fiNaNCial iNfOrmaTiON


Un-audited Audited 30 June 31December Note 2016 2015 (Rupees in thousand)

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorizedsharecapital 400,000,000(31December2015:400,000,000) ordinarysharesofRupees10each 4,000,000 4,000,000 Issued,subscribedandpaid-upsharecapital 372,081,591(31December2015:372,081,591) ordinarysharesofRupees10each 3,720,816 3,720,816Capitalreserve 116,959 116,959Revenuereserve-Un-appropriatedprofit 11,150,416 11,423,876

Total equity 14,988,191 15,261,651 LIABILITIES NON-CURRENT LIABILITY Long-termfinance-secured 5 1,003,106 1,226,019 CURRENT LIABILITIES Tradeandotherpayables 4,197,299 3,474,597Accruedmark-up/profit 100,627 60,489Short-termborrowings 8,476,328 5,080,859Currentportionoflong-termfinance 5 445,825 445,825

13,220,079 9,061,770

Total liabilities 14,223,185 10,287,789 CONTINGENCIES AND COMMITMENTS 6 TOTAL EQUITY AND LIABILITIES 29,211,376 25,549,440 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CONDENSED iNTErim BalaNCE SHEETas at 30 June 2016

CHIEF EXECUTIVE


Un-audited Audited 30 June 31December Note 2016 2015 (Rupees in thousand) ASSETS NON-CURRENT ASSETS Property,plantandequipment 7 9,798,519 10,018,982Long-terminvestment 895 969Long-termsecuritydeposit 300 300 9,799,714 10,020,251 CURRENT ASSETS Stores,sparepartsandotherconsumables 832,427 836,161Fuelstock 214,483 186,875Tradedebts 14,207,999 10,833,800Advancesandshort-termprepayments 729,206 297,907Otherreceivables 2,040,367 2,286,015Salestaxrecoverable 1,374,016 1,087,628Cashandbankbalances 13,164 803

19,411,662 15,529,189

TOTAL ASSETS 29,211,376 25,549,440

DIRECTOR


CONDENSED iNTErim prOfiT aND lOSS aCCOUNT fOr THE Half yEar ENDED 30 JUNE 2016 (UN-aUDiTED)

CHIEF EXECUTIVE DIRECTOR

Half Year Ended Quarter Ended 30 June 30 June 30 June 30 June Note 2016 2015 2016 2015 (Rupees in thousand) (Rupees in thousand) REVENUE 7,367,627 4,401,442 4,426,107 1,081,998COSTOFSALES 8 (6,874,634) (4,471,646) (3,866,363) (1,731,626) GROSSPROFIT/(LOSS) 492,993 (70,204) 559,744 (649,628) ADMINISTRATIVEEXPENSES (93,849) (75,993) (45,365) (39,779)OTHEREXPENSES (1,039) (147,715) (546) (147,147)OTHERINCOME 1,306 5,896 728 1,681 PROFIT/(LOSS)FROMOPERATIONS 399,411 (288,016) 514,561 (834,873) FINANCECOST (300,715) (166,393) (167,615) (69,908)SHAREOFLOSSFROMASSOCIATEDCOMPANY (74) (1,091) (74) (1,091) PROFIT/(LOSS)BEFORETAXATION 98,622 (455,500) 346,872 (905,872)TAXATION - - - -

PROFIT/(LOSS)AFTERTAXATION 98,622 (455,500) 346,872 (905,872) OTHERCOMPREHENSIVEINCOME - - - - TOTALCOMPREHENSIVEINCOME/(LOSS)FORTHEPERIOD 98,622 (455,500) 346,872 (905,872) EARNINGS/(LOSS)PERSHARE-BASICANDDILUTED(RUPEES) 0.27 (1.22) 0.94 (2.43) Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.


CONDENSED iNTErim CaSH flOW STaTEmENTfOr THE Half yEar ENDED 30 JUNE 2016 (UN-aUDiTED)

Half Year Ended 30 June 30June Note 2016 2015 (Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES Cash (utilized in) / generated from operations 9 (2,353,786) 738,657 Financecostpaid (260,577) (276,745)Interestincomereceived 466 5,093Incometaxpaid (6,747) (104,521)Gratuitypaid (5,872) (5,481)Net cash (utilized in) / generated from operating activities (2,626,516) 357,003 CASH FLOWS FROM INVESTING ACTIVITIES Capitalexpenditureonproperty,plantandequipment (162,844) (1,959,405)

Net cash used in investing activities (162,844) (1,959,405) CASH FLOWS FROM FINANCING ACTIVITIES Proceedsfromlong-termfinance - 1,783,300Repaymentoflongtermfinance (222,913) -Dividendpaid (370,835) (371,121) Net cash (used in) / from financing activities (593,748) 1,412,179 Net decrease in cash and cash equivalents (3,383,108) (190,223) Cash and cash equivalents at beginning of the period (5,080,056) (3,775,350) Cash and cash equivalents at end of the period (8,463,164) (3,965,573) CASH AND CASH EQUIVALENTS Cashinhand 285 300Cashatbanks 12,879 549Short-termborrowings (8,476,328) (3,966,422)

(8,463,164) (3,965,573)

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.



CONDENSED iNTErim STaTEmENT Of CHaNGES iN EQUiTyfOr THE Half yEar ENDED 30 JUNE 2016 (UN-aUDiTED)

RESERVES SHARE Capital Revenue

TOTAL CAPITAL Retained Un- EQUITY payments appropriated reserve profit ( - - - - - - - - - -- - -Rupees in thousand - - - - - - - -- - - ) Balance as at 31 December 2014 - audited 3,720,816 116,959 10,570,31414,408,089 Transactionswithowners-Finaldividendfortheyearended31December2014@Rupee1pershare - - (372,082) (372,082) Lossforthehalfyearended30June2015 - - (455,500) (455,500)Othercomprehensiveincomeforthehalfyearended30June2015 - - - -Totalcomprehensivelossforthehalfyearended30June2015 - - (455,500) (455,500) Balanceasat30June2015-un-audited 3,720,816 116,959 9,742,73213,580,507 Transactionwithowners-Interimdividendfortheyearended31December2015@Rupee1pershare - - (372,082) (372,082) Profitforthehalfyearended31December2015 - - 2,053,226 2,053,226Othercomprehensiveincomeforthehalfyearended31December2015 - - - -Totalcomprehensiveincomeforthehalfyearended31December2015 - - 2,053,226 2,053,226 Balanceasat31December2015-audited 3,720,816 116,959 11,423,87615,261,651 Transactionwithowners-Finaldividendfortheyearended31December2015@Rupee1pershare - - (372,082) (372,082) Profitforthehalfyearended30June2016 - - 98,622 98,622Othercomprehensiveincomeforthehalfyearended30June2016 - - - -Totalcomprehensiveincomeforthehalfyearended30June2016 - - 98,622 98,622 Balanceasat30June2016-un-audited 3,720,816 116,959 11,150,41614,988,191 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.



SElECTED NOTES TO THE CONDENSED iNTErim fiNaNCial iNfOrmaTiONfOr THE Half yEar ENDED 30 JUNE 2016 (UN-aUDiTED)

1. THECOMPANYANDITSOPERATIONS PakgenPowerLimited (“theCompany”)was incorporated inPakistanon22June1995

undertheCompaniesOrdinance,1984.TheregisteredofficeoftheCompanyissituatedat53-A,LawrenceRoad,Lahore.TheCompany’sordinarysharesarelistedonPakistanStockExchangeLimited.TheprincipalactivitiesoftheCompanyaretoown,operateandmaintainanoilfiredpowerstation(“theComplex”)havinggrosscapacityof365MWinMehmoodKot,Muzaffargarh,Punjab,Pakistan.

2. BASISOFPREPARATION Thiscondensedinterimfinancialinformationisunauditedbutsubjecttolimitedscopereview

bythestatutoryauditorsandisbeingsubmittedtoshareholdersasrequiredbysection245oftheCompaniesOrdinance,1984.ThiscondensedinterimfinancialinformationoftheCompanyforthehalfyearended30June2016hasbeenpreparedinaccordancewiththerequirementsofInternationalAccountingStandards(IAS)34“InterimFinancialReporting”andprovisionsofanddirectivesissuedundertheCompaniesOrdinance,1984.Incasewhererequirementsdiffer,theprovisionsofordirectivesissuedundertheCompaniesOrdinance,1984havebeenfollowed.ThiscondensedinterimfinancialinformationshouldbereadinconjunctionwiththeprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2015.

3. ACCOUNTINGPOLICIES The accountingpolicies andmethodsof computations adopted for thepreparationof

thiscondensedinterimfinancialinformationaresameasappliedinthepreparationoftheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2015.

4. CRITICALACCOUNTINGESTIMATESANDJUDGMENTS Thepreparationofthiscondensedinterimfinancialinformationinconformitywithapproved

accountingstandardsrequirestheuseofcertaincriticalaccountingestimates.ItalsorequiresmanagementtoexerciseitsjudgmentintheprocessofapplyingtheCompany’saccountingpolicies.Estimatesand judgmentsarecontinually evaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.

Duringpreparationofthiscondensedinterimfinancialinformation,thesignificantjudgments

madebythemanagementinapplyingtheCompany’saccountingpoliciesandkeysourcesofestimationanduncertaintywerethesameasthosethatappliedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2015.


Un-audited Audited 30 June 31December 2016 2015 (Rupees in thousand)5. LONG-TERMFINANCE-SECURED Openingbalance 1,671,844 - Add:Obtainedduringtheperiod/year - 1,783,300 Less:Repaidduringtheperiod/year 222,913 111,456 1,448,931 1,671,844 Less:Currentportionshownundercurrentliabilities 445,825 445,825

1,003,106 1,226,019

6. CONTINGENCIESANDCOMMITMENTS 6.1 Contingencies Thereisnosignificantchangeinthestatusofcontingenciesdisclosedinthepreceding

audited annual published financial statements of theCompany for the year ended31December2015exceptforthefollowing:

6.1.1WAPDAhasraisedinvoicesforliquidateddamagestotheCompanyfrom11thto18th(up

toApril2016)agreementyear(aftertakingintoaccountforcedoutageallowancestipulatedunderthetermsofPowerPurchaseAgreement)onaccountofshortsupplyofelectricitybytheCompany,whichwasduetocashconstraintsoftheCompanyasaresultofdefaultbyWAPDA inmaking timelypayments.Liquidateddamages invoiced to theCompanyamountstoRupees6,403.218million (31December2015:Rupees5,657million).OutofthesetheCompanyhasacceptedandpaidRupees220million(31December2015:Rupees220million)excludingliquidateddamages(Rupees3,943.528million)invoicedonaccountofforcedoutageeventduringthefinancialyearended31December2015.TheCompanydisputesandrejectsbalanceclaimsonaccountofliquidateddamagesthatareraisedbyWAPDAonthepremisethatitsfailuretodispatchelectricitywasduetoWAPDA’snon-paymentofduesontimelybasistotheCompanyandconsequentialinabilityoftheCompanytomaketimelypaymentstoitsfuelsupplierthatresultedininadequatelevelofelectricityproductionowingtoshortageoffuel.AgainstthesetheCompanyhasraisedinvoicedisputenoticestoWAPDA.TheCompanyhasappointedmediationexpertunderthemechanismgiven in thePPA. Further, according to legal advice availablewith theCompany,thereareadequategroundstodefendanyclaimbyWAPDAforsuchliquidateddamagessincetheseconditionswereimposedontheCompanyduetocircumstancesbeyonditscontrol.Theultimateoutcomeofthemattercannotpresentlybedetermined,andconsequently,noprovisionforsuchliquidateddamageshasbeenmadeinthiscondensedinterimfinancialinformation.


Un-audited Audited 30 June 31December 2016 2015 (Rupees in thousand)6.2 Commitments 6.2.1Commitmentsinrespectoflettersofcredit forcapitalexpenditure 7,904 - 6.2.2Commitmentsinrespectofotherthan capitalexpenditure 26,923 285,284

7. PROPERTY,PLANTANDEQUIPMENT Operatingfixedassets(Note7.1) 9,348,669 9,223,337 Capitalwork-in-progress(Note7.2) 449,850 795,645 9,798,519 10,018,982 7.1 Operating fixed assets Openingbookvalue 9,223,337 7,358,455 Add:Costofadditionsduringtheperiod/year(Note7.1.1) 508,639 2,829,923 Less:Bookvalueofderecognitionsduringthe period/year(Note7.1.2) - 372,778 Less:Depreciationchargedduringtheperiod/year 383,307 592,263 Closingbookvalue 9,348,669 9,223,337

7.1.1 Cost of additions Buildingsonfreeholdland - 214,751 Plantandmachinery 508,000 2,614,656 Officeequipment 311 306 Furnitureandfittings 314 49 Electricequipmentandappliances 14 161

508,639 2,829,923 7.1.2 Book value of derecognitions Plantandmachinery -Cost 12,003 715,097 -Less:Accumulateddepreciation 12,003 342,319 - 372,7787.2 Capital work-in-progress Plantandmachinery 449,850 795,645


Un-audited Un-audited Half Year Ended Quarter Ended 30 June 30 June 30 June 30 June 2016 2015 2016 2015 (Rupees in thousand) (Rupees in thousand) 8. COSTOFSALES

Fuel cost 5,339,020 2,325,713 3,443,962 (23,916) Operation and maintenance costs 199,770 215,570 118,843 139,798 Insurance 224,587 161,967 112,293 79,669 Depreciation 381,473 261,069 208,556 134,115 Liquidated damages to WAPDA 729,784 1,507,327 (16,007) 1,401,960 Others - - (1,284) -

6,874,634 4,471,646 3,866,363 1,731,626

Un-audited Half Year Ended 30 June 30June 2016 2015 (Rupees in thousand)9. CASH(UTILIZEDIN)/GENERATEDFROMOPERATIONS Profit/(loss)beforetaxation 98,622 (455,500) Adjustments for non-cash charges and other items: Depreciation 383,307 265,749 Impairmentlossontransformer - 146,628 Provisionforgratuity 5,872 5,481 Shareoflossfromassociatedcompany 74 1,091 Interestincome (466) (5,093) Financecost 300,715 166,393 Cashflowsfromoperatingactivitiesbefore workingcapitalchanges 788,124 124,749 (Increase)/decreaseincurrentassets: Stores,sparepartsandotherconsumables 3,734 (113,374) Fuelstock (27,608) 278,337 Tradedebts (3,374,199) 804,326 Advancesandshort-termprepayments (424,552) 251,350 Otherreceivables 245,648 - Salestaxrecoverable (286,388) (16,489)

(3,863,365) 1,204,150 Increase/(decrease)intradeandotherpayables 721,455 (590,242)

(2,353,786) 738,657


10. INFORMATIONFORALLSHARESISLAMICINDEXSCREENING

Un-audited 30 June 2016Audited31December2015 Carried under Carriedunder Description Shariah non- Shariah Shariahnon- Shariah compliant compliant compliant compliant arrangements arrangements arrangements arrangements

------------------(Rupees in thousand)------------------

10.1 Assets Loans and advances Advancestosuppliers - 426,377 - 11,544 Longtermsecuritydeposits - 300 - 300 Bank balances 12,832 47 500 49 10.2 Liabilities Loan and advances Longtermfinance 1,448,931 - 1,671,844 - Shorttermborrowings 8,226,328 250,000 5,080,859 -

Un-audited 30 June 2016Un-audited30June2015 Carried under Carriedunder Description Shariah non- Shariah Shariahnon- Shariah compliant compliant compliant compliant arrangements arrangements arrangements arrangements

------------------(Rupees in thousand)------------------

10.3 Income Profitondepositswithbanks 466 - 5,093 -

(Un-audited) Half Year Ended 30 June 30June 2016 2015 (Rupees in thousand)10.4 Sources of other income Profitofdepositswithbanks 466 5,093 Rentalincome 840 803

10.5 WholerevenueoftheCompanyisfrompowergeneration.


10.6 Relationship with banks

Relationship with Non Islamic With Islamic

Name window windows

operations operations

NationalBankofPakistan a 0 AlliedBankLimited a 0 AskariBankLimited a 0 BankAlfalahLimited a 0 FaysalBankLimited a 0 HabibBankLimited a 0 HabibMetropolitanBankLimited a 0 MCBBankLimited a 0 NIBBankLimited a 0 UnitedBankLimited a 0 Al-BarakaBank(Pakistan)Limited 0 a BankIslamiPakistanLimited 0 a TheBankofPunjab a 0

11. TRANSACTIONSWITHRELATEDPARTIES RelatedpartiesoftheCompanycompriseofassociatedundertakingsandkeymanagement

personnel. Transactionswith relatedparties include expenses chargedbetween theseparties.TheCompanyinthenormalcourseofbusinesscarriesouttransactionswiththeserelatedparties.Detailoftransactionswithrelatedpartiesareasfollows:

(Un-audited) (Un-audited) Half Year Ended Quarter Ended 30 June 30 June 30 June 30 June 2016 2015 2016 2015 (Rupees in thousand) (Rupees in thousand) Relationship with Nature of the Company transaction Associated Insurancepremium 260,336 188,677 130,164 94,766 undertakings Shareofexpenses 159,276 153,367 82,210 80,781 Shareofrentalincome 840 803 421 405 Rentexpense 3,139 3,139 1,569 1,569 Flyingservices 27,338 22,115 13,665 8,864 Dividend 249,961 199,038 249,961 199,038 Boardinglodgingservices - 152 - 152 Purchaseofstores 225 2,080 225 2,080 Markuppaid 7,466 - 7,466 - Loanobtained 1,000,000 -1,000,000 - Storesandspares transferredto 1,182 - 1,182 - Storesandspares transferredfrom 3,370 - 3,370 - Insuranceclaim 2,996,833 -2,996,833 - Keymanagement personnel Remuneration 17,451 14,321 14,944 12,002


Un-audited Audited 30 June 31December 2016 2015 (Rupees in thousand)

Period end balances: Insuranceclaimreceivablefromassociatedcompany 1,766,833 2,018,541 Shorttermloanpayabletoassociatedcompany 1,000,000 -

11.1 TheCompanysharespremises,employeesandothercommoncostswithitsassociatedcompany,LalpirPowerLimitedonfifty-fiftybasis inaccordancewith “SharedFacilitiesAgreement”.

12. EVENTSAFTERTHEREPORTINGPERIOD TheBoardofDirectorsof theCompanyattheirmeetingheldonAugust23,2016has

proposedcashdividendofRupees1/-pershare.However,thiseventhasbeenconsideredasanon-adjustingeventunderInternationalAccountingStandard(IAS)10‘EventsaftertheReportingPeriod’andhasnotbeen recognized in thiscondensed interimfinancialinformation.

13. FINANCIALRISKMANAGEMENT TheCompany’sfinancialriskmanagementobjectivesandpoliciesareconsistentwiththose

disclosedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2015.

Thecarryingvaluesofallfinancialassetsandfinancialliabilitiesreflectedinthiscondensed

interimfinancialinformationapproximatetheirfairvalues. 14. CORRESPONDINGFIGURES InordertocomplywiththerequirementsofInternationalAccountingStandard34“Interim

FinancialReporting”,thecondensedinterimbalancesheetandcondensedinterimstatementof changes in equity havebeen comparedwith balances of audited annual publishedfinancial statementsof preceding financial year,whereas, the condensed interimprofitandlossaccount,condensedinterimcashflowstatementhavebeencomparedwiththeamountsofcomparableperiodofimmediatelyprecedingfinancialyear.

Correspondingfigureshavebeenre-arrangedandreclassified,wherevernecessaryforthe

purposeofcomparison,however,nosignificantre-arrangementsandreclassificationshavebeenmadeinthiscondensedinterimfinancialinformation.


15. DATEOFAUTHORISATIONFORISSUE ThiscondensedinterimfinancialinformationwasauthorizedforissueonAugust23,2016

bytheBoardofDirectorsoftheCompany. 16. GENERAL FigureshavebeenroundedofftothenearestthousandRupees.


53-A, Lawrence Road, LahoreTel : 042-36367812-16

Fax: 042-36367414UAN: 042-111-11-33-33

HALF YEARLY REPORT HEAD OFFICE 1-B, Aziz Avenue, Gulberg-V, Lahore- Pakistan Tel: 042-35717090-96...

Documents

Transcript of HALF YEARLY REPORT HEAD OFFICE 1-B, Aziz Avenue, Gulberg-V, Lahore- Pakistan Tel: 042-35717090-96...