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The Hub Power Company Limited
Unaudited Half Yearly Financial Statements
for the Half Year ended
December 31, 2014
Contents
Company Information
Directors’ Report on the Unconsolidated and Consolidated Financial Statements
Unconsolidated Financial Statements
Auditor’s Review Report to the Members
Condensed Interim Profit & Loss Account
Condensed Interim Statement of Comprehensive Income
Condensed Interim Balance Sheet
Condensed Interim Cash Flow Statement
Condensed Interim Statement of Changes in Equity
Notes to the Condensed Interim Financial Statements
Consolidated Financial Statements
Condensed Interim Consolidated Profit & Loss Account
Condensed Interim Consolidated Statement of Comprehensive Income
Condensed Interim Consolidated Balance Sheet
Condensed Interim Consolidated Cash Flow Statement
Condensed Interim Consolidated Statement of Changes in Equity
Notes to the Condensed Interim Consolidated Financial Statements
Company Information
Board of Directors Hussain Dawood Chairman
Khalid Mansoor Chief Executive
Syed Ahmed Iqbal Ashraf NBP Nominee
Masood Ahmed GOB Nominee
Qaiser Javed
Syed Muhammad Ali
Iqbal Alimohamed
Abdul Samad Dawood
Shabbir H.Hashmi
Ajaz Ali Khan
Ruhail Mohammed
Ali Munir
Shahid Hamid Pracha
Inam ur Rahman
Syed Khalid Siraj Subhani
Audit Committee Iqbal Alimohamed
Shabbir Hussain Hashmi
Qaiser Javed
Ruhail Mohammed
Ali Munir
Company Secretary Shamsul Islam
Management Khalid Mansoor
Syed Hasnain Haider
Shamsul Islam
Tahir Jawaid
Mohammad Kaleem Khan
Shahid Mahmood
Abdul Nasir
M. Inam ur Rahman Siddiqui
Nazoor Baig
Registered & Head 11th Floor, Ocean Tower,
Office G‐3, Block 9, Main Clifton Road,
P.O. Box No. 13841, Karachi‐75600
Email: Info@hubpower.com
Website: http://www.hubpower.com
Principal Bankers Allied Bank of Pakistan
Askari Bank Limited
Bank Al‐Falah Limited
Bank Al‐Habib Limited
Bank of Punjab
Bank Islami Pakistan Limited
Barclays Bank PLC Pakistan
Burj Bank Limited
Citibank N.A. Karachi.
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Meezan Bank Limited
MCB Bank Limited
National Bank of Pakistan
NIB Bank Limited
Industrial and Commercial Bank of China
Pak Brunei investment Company Limited
Pak China Investment Company Limited
Pak Kuwait Investment Company (Pvt) Ltd.
Samba Bank Limited
Standard Chartered Bank (Pakistan) Ltd.
Sumitomo Mitsui Banking Corp. Europe Ltd., London
United Bank Limited
Inter‐Creditor Agents National Bank of Pakistan
Habib Bank Limited
Allied Bank Limited
Legal Advisors RIAA LAW, Karachi
Auditors Ernst & Young Ford Rhodes Sidat Hyder
Registrar Famco Associates (Pvt) Limited
Hub Plant Mouza Kund,
Post Office Gaddani,
District Lasbela, Balochistan
Narowal Plant Mouza Poong,
5 KM from Luban Pulli Point on Mureedkay‐Narowal
Road, District Narowal, Punjab
Laraib Energy Limited 12‐B/1, Multi Mansion Plaza,
(Subsidiary) G‐8, Markaz, Islamabad
EYrrnst & Young Ford RfLodes Sld,ri l!Ce, leL: +9221 3565 0007-f1Char fered Ac.-ountants i ai: +9221 3563 I 9b5Proqfrssi,,rl-l,.rr.r,Beaulrcnff?oao tyfrsir.ui:,pk..'r,..r:i'
Buirding a better F.?;.?31 1554i' Karachi 75510 lv.c.nr/Di1
workino world
AUDITORS' REPORT TO THE MEMBERS ONREVIEW OF INTERlM FINANCIAL INFORMATION
Introduction
We have reviewed the accompanying condensed interim unconsolidated balance sheet of TheHub Power Company Limited as at 31 December 2O!4, the related condensed interimunconsolidated profit and loss account, condensed interim unconsolidated statement ofcomprehensive income, condensed interim unconsolidated cash flow statement, condensedinterim unconsolidated statement of changes in equity and notes to the accounts for the sixmonths period then ended (here-in-after referred to as "interim financial information").Management is responsible for the preparation and presentation of this interim financialinformation in accordance with approved accounting standards as applicable in Pakistan forinterim financial reporting. Our responsibility is to express a conclusion on this interimfinancial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements24LO, "Review of Interim Financial Information Performed by the Independent Auditor of theEntity". A review of interim financial information consists of making inquiries, primarily ofpersons responsible for financial and accounting matters, and applying analytical and otherreview procedures. A review is substantially less in scope than an audit conducted inaccordance with International Standards on Auditing and consequently does not enable us toobtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that theaccompanying interim financial information is not prepared, in all material respects, in
accordance with approved accounting standards as applicable in Pakistan for interim financialreporting.
4r".r-1. * Vt*7 6rd ez"-e /'' l* ry a
Chartered AccountantsEngagement Partner: Riaz A. Rehman ChamdiaDate: 16 February 2015Place: Karachi
@grd^4tt drruqft dcrg/
THE HUB POWER COMPANY LIMITEDCONDENSED INTERJM UNCONSOLIDATEDPROFIT AND LOSS ACCOUNT (UNAUDITED)
FOR THE HALF YEAR ENDED DECEMBER 3I.2OI4
Note
3 months ended
Dec 2014
(Rs.'000s)
32.565,481
(28,474,834)
3 months ended
Dec 2013
(Rs.'000s)
39,764,973
(37,349,685)
78,319,609
(70,669,974\
77,820,272
(72,592,160)
6 months ended 6 months ended
Dec 2014 Dec 2013
(Rs.'000s) (Rs.'000s)
Tumover
Operating costs
GROSS PROFIT
General and adminishation expenses
Other income
Workers' profi t participation fund
PROFIT FROM OPERATIONS
Finance costs
PROFIT BEFORETAXATION
Taxation
PROFIT FORTHE PERIOD
Basic and diluted earnings per share (Rupees)
4,090,647
(200,602)
13,3 | 0
2,415,288
(147,449)
t6,570
7,649,635
(365,4e8)
19,902
5,228,1t2
(26t,096)
72.299
3,903,355
(r,25 r,415)
2,284,409
(t,t6t,177)
7,304,039
(2,5s7,s25)
5,039,3 l5
(2, | 00,565)
2,651,940
(t,233)
1,123,232
(r,r60)
4,746,514
(t,742\
2,938,750
( |,e55)
2,650,707 4,744,772
4. l0
Iqbal Alimohamed
Director
The annexed notes from I to 20 form an integral part ofthese condensed interim unconsolidated financial statements.
fua*
ItLLs 0-*rrr*-Khalid Mansoor
Chief Executive
@tr*dtdrmi|trmr!,
Profit for the period
Othcr comprchcnsivc incomc for thc pcriod
Itcttts thot will not be rcclasslficdto profit or loss lnsubseqacat pcriods
Gain / (loss) on remeasurement! of post employment benefit obligation
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
The annexed notes from I to 20 form an integral part ofthese condensed interim unconsolidated financial statements.
t*4,
3 months endcd 3 monthc cndcd 6 months cndcd 6 months ended
Dcc 2014 Dec 2013 Dec 2014 Dcc 2013(Rs.'mOr) (Rs.'lXX)s) (Rs.'0ffis) (R*'lXX)s)
2,650,707 1,t22,072 4,744,772 2,936,795
3,797 (2,e83) s27 (s,966)
4,745,299 2,930,829
--
THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM UNCONSOLIDATED
STATEMENT OF COMPREHENSwE TNCOME (UNA[ rltTED)FOR THE HALF YEAR ENDED DECEMBER 3I.2OI4
fll,ttX or^er-Khalid Mansoor
Chief Executive
@gwth thrcugh ereryy
THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM UNCONSOLIDATED
BALANCE SHEETAS AT DECEMBER 3I.2OI4
Dec 2014 Jun 2014
(Rs. '000s) (Rs.'000s)
Note (Unaudited) (Audited)
ASSETS
NON-CURRENT ASSETSFixed Assets
Property, plant and equipment 7 39,957 ,472 4l ,223,196
Intangibles 6,323 I l'857
Long term investments 8 4,917,276 4,674,189
Long term loan 60'296 62,529
Long term deposits and prepayments 22,126 2l '303
CURRENT ASSETS
Stores, spares and consumables
Stock-in-trade
Trade debts
Loan and advances
Prepayments and other receivables
Cash and bank balances
TOTAL ASSETS
EOUITY AND LIABILITIES
SHARE CAPITAL AND RESERVE
Share CapitalAuthorised
Issued, subscribed and paid-uP
Revenue Reserve
Unappropriated profit
NON-CURRENT LIABILITIESLong term loans
CURRENT LIABILITIESTrade and other payables
Interest / mark-up accrued
Short term borrowings
Current maturity of long term loans
COMMITMENTS AND CONTINGENCIES
TOTAL EQUITY AND LIABILITIES
t0
2,179,323
3,394,594
93,662,695
126,203
3,294,147
I.705.040
t04,36 t,002
1 ,599,1 61
2,388,435
79,879,236
78,201
2,8t7,541
2,676,177
89.438.751
149,324,49s l35.431.825
12.000,000 | 2.000.000
11,571,544
I 9,589,899
| | ,571 ,544
19,473,218
ll
31,161,443
20,670,402
82,698,563
|,094,836
10,040,500
3,658,75 r
31,044,762
20,033,860
62,794,145
1,t57,756
t6,878,r l83,523,184
t2
l3il
l4
97,492,650 84,353,203
149,324,495 | 35,43 r,825
The annexed notes from I to 20 form an integral part ofthese condensed interim unconsolidated financial statements.trr/^^
itt^t{4 dlr',r^rl-t--Khalid Mansoor
Chief Executive
IqbalAlimoffiDirector
@grorudl *rugh ercryy
THE HUB POWERCOMPANY LIMITEDCONDENSED INTERIM UNCONSOLIDATEDCASH FLOW STATEMENT (UNAUDITED)
FOR THE HALF YEAR ENDED DECEMBER 3I.2OI4
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation
Adjustments for:Depreciation
Amortisation
Gain on disposal of fixed assets
Staff gratuity
Interest income
Interest / mark-up
Amortisation of transaction cost
Operating profit before working capital changes
Working capital changes
Cash generated from / (used in) operations
Interest received
Interest / mark-up paid
Taxes paid
Net cash generated from / (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure
Proceeds from disposal offixed assets
Investment in an associate
Long term loan and advance
Long term deposits and prepayments
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid
Proceeds from long term loans
Repayment of long term loans - Hub plant
Repayment of long term loans - Narowal plant
Repayment of long term loans - Laraib's investment
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning ofthe period
Cash and cash equivalents at the end ofthe period
6 months ended
Dec 20t4(Rs.'000s)
4,746,514
1,363,286
5,534(74e)
10,301
( 16,800)
2,459,584
44,280
6 months ended
Dec 2013
(Rs.'000s)
2,938,750
1,342,291
9,801
(14)
7,854(64,199)
2,018,798
30,742
8,611,950
4,004,t27
6,284,023
(23,214,673)
t2,6r6,077
't )'t'l
(2,s22,s04)(1,742)
( 16,930,650)
66,466
(2,331,234)
( I,955)
l 0,099,108 (19,197,373)
(112,209)
t,567
16,912(2,366)
( r 02,089)
5,276
(243,087)) )77
(823)
(338,490)
(4,62t,966)
2,500,000
(489,531)
(809,360)(473,280)
(e6,0e6)
(5,190,146)
(489,53 I )(696, I 0o)
(3,894,t37) (6,37 5,777)
5,866,481
(14,201,94r)
(8,335,460) (13,127,196)
The annexed notes from I to 20 form an integral part ofthese condensed interim unconsolidated financial statements'tfial
(25,669,246)
12,542,050
l6
ru$ r}l.r"rtr-Khalid Mansoor
Chief Executive
--'IqbatRtim-o11-il-
Director
@gror/th t rrorrSh crrersy
THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM UNCONSOLIDATED
STATEMENT OF CHANGES IN EQUITY (UNAUDITED)FOR THE HALF YEAR ENDED DECEMBER 3I. 2OI4
Issued capital
Balance at the beginning of the period
Balance at the end ofthe period
Unappropriated profit
Balance at the beginning of the period
Total comprehensive income for the period
Transactions with owners in their capacity as owners
Final dividend for the fiscal year 2013-2014 @ Rs. 4,00(2012-2013: @ Rs. 4.50) per share
Balance at the end ofthe period
Total equity
6 months ended 6 months ended
Dec 2014 Dec 2013
(Rs.'000s) (Rs.'000s)
11,571,544 11,571,544
11,571,544 11,571,544
19,473,218 21,039,569
4,745,299 2,930,929
(4,629,61
(4,629,619)(5,207,lg5)(5,207,195)
19,589,899 18,762,203
31,161,443 _30333Jn
The annexed notes from I to20 form an integral part ofthese condensed interim unconsolidated financial statements.
f+/fi^'r
['."UV O,un'--Khalid Mansoor
Chief ExecutiveIqbalAlimohamEf
Director
@Sewth tnru8h certl
l.
THE HUB POWER COMPANY LIMITEDNOTES TO THE CONDENSED INTERIM UNCONSOLIDATED
FINANCIAL STATEMENTS (UNAUDITED)FOR THE }IALF YEAR ENDED DECEMBf,R 3I.2014
THE COMPANY AND ITS OPf,RATIONS
The Hub Power Company Limited (the "Company") was incorporated in Pakistan on August l, l99l as a public limited company under the Companies
Ordinance, 1984 (the "Ordinance"). The shares of the Company are listed on the Karachi, Lahore and Islamabad Stock Exchanges and its Global
Depository Receipts are listed on the Luxembourg Stock Exchange. The principal activities of the Company are to develop, own, opsrate and maintain
power stations. The Company owns an oil-fired power station of |,200 MW (net) in Balochistan (Hub plant) nd a2l4 MW (net) oil-fired power station in
Punjab (Narowal plant). The Company also has a 75% controlling interest in Laraib Energy Limited "Subsidiary". The subsidiary owns a hydel power
station of 84 MW which commenced operations on March 23,2013.
Proposed Narowrl Demerger
Under the tax laws of Pakistan, if Narowal were demerged into a separate legal entity, it would have lost its tax exempt status from taxation on the income
from power generation as is the case now and in line with the government's policy for IPPs which are exempt from taxation on the income from power
generation. The Company requested the PPIB for the appropriate changes in the tax laws so that Narowal could be demerged into a separate legal entity.
During the period, the Company has received the Economic Coordination Committee's (ECC) approval for the changes in tax laws to be incorporated
enabling the Company to demerge Narowal into a separate legal entity having the same tax exempt status, after demerger, as it enjoys now. While
appropriate changes in the tax laws are still to be made by Federal Board ofRevenue (FBR), the Company has started the process to demerge Narowal into
a separate legal entity. It is expected that this process will be completed by December 2015.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies and methods ofcomputation followed for the preparation ofthese condensed interim unconsolidated financial statements are same
as those applied in preparing the annual unconsolidated financial statements for the year ended June 30, 2014.
BASIS OF PRI,PARATION
These condensed interim unconsolidated financial statements of the Company for the half year ended December 3 I , 20 I 4 are unaudited but subject to
limited scope review by the statutory auditors as required by the Code of Corporate Govemance. These condensed interim unconsolidated financial
statements have been prepared in accordance with the requirements oflAS 34 "lnterim Financial Reporting" and provisions ofand directives issued under
the Ordinance. In case requirements differ, the provisions ofand directives issued under the Ordinance have been followed.
The figures ofthe condensed interim unconsolidated profit and loss account for the quarters ended December 31, 2014 and 2013 have not been reviewed
by the extemal auditors of the Company as they have reviewed the cumulative figures for the half years ended December 31,2014 and 2013. These
condensed interim unconsolidated financial statements do not include all the information and disclosures as required in the annual unconsolidated
financiaf statements and should be read in conjunction with the Company's annual unconsolidated financial statements for the year ended June 30,2014.
These condensed interim unconsolidated financial statements are the separate condensed interim financial statements ofthe Company in which investment
in a subsidiary and investment in an associate have been accounted for at cost less accumulated impairment losses, ifany.
3 months ended 3 months ended 6 months ended 6 months ended
Dec 2014 Dec 2013 Dec 2014 Dec 2013
(Rs.'000s) (Rs.'000s) (Rs.'000s) (Rs.'(X)Os)
OPERATING COSTS
Fuel cost
Stores and spares
Operation and Maintenance
Insurance
Depreciation
Amortisation
Repairs, maintenance and other costs
WORKERS' PROFIT PARTICIPATION FUND
Provision for Workers' profi t participation fu nd
Workers' profit participation fund recoverable
from WAPDA / NTDC
132,597 56.t62
(t32,s97) (56,t62)
:::The Company is required to pay 5%o of its profit to the Workers' profit participation fund (the "Fund"). However, such payment does not affect the
Company's overall profitability because after payment to the Fund, the Company bills this to Water and Power Development Authority (WAPDA) /
National Transmission and Despatch Company Limited (NTDC) as a pass through item under the PPAs.
t#llt-
4.
26,356,347 34,682,921
56,636 r I s,829
913,448 965,681
203,596 243,537
675,9s0 666,067
2,683 4,109
266,174 67 |,s4l
66,377,320
114,484
|,957 ,734412,083
l ,349,418
5,366
453.s69
6't,674,726
2t9,847l ,904,5 l3
48 1,783
|,330,472
9,429
97 |,390
28,474,834 37,349,685 70,669,974 72,592,160
)17 '1)6
(237.126)
r 46,93 8
( l 46,938)
@8rcwrh rh@gft cnc€/
1
6. FINANCECOSTS
Interest / mark-up on long term loans
Mark-up on short term bonowings
Amortisation of transaction cost
Other finance costs
PROPERTY, PLANT AND EQUIPMf,NT
Operating property, plant and equipment
Capital work-in-progress
7.l Additions to property, plant and equipment during the period were Rs.
million.
8. LONGTERMINVESTMENTS
Investment in Subsidiary
lnvestment in an Associate
I 0l ,9 t 9 127 ,3967.1 39,951.,4n 41223J%
-
102.089 million and disposal therefrom at net book value were Rs.4.527
3 months ended
Dec 2014
(Rs.'000s)
720,t04
477,3t222,314
3 I,685
1,251,4t5
3 months ended
Dec 2013
(Rs.'000s)
780,306
339,993
15,348
25,530
_____IJ9UZ_
Note
6 months ended
Dec 2014
(Rs.'000s)
|,468,647
990,937
44,280
53.66 I
t {<7 {)s:Dec 2014
(Rs,'000s)
(Unaudited)
39,8 5 5,5 s3
4,674,189
243,087
6 months ended
Dec 2013
(Rs.'flXh)
I,557,396
461,402
30,742
51,02s
__lJgJg:_Jun 2014
(Rs.'000s)
(Audited)
4 I ,095,800
Jun 20t4
(Rs.'000s)
(Audited)
4,674,t89
Dec 2014
(Rs.'ffiOs)
Note (Unrudited)
8.1
__4 9)l_27j_ _4,67 4,t 8e
8.1 Pursuant to the Shareholders Agreement with Engro Powergen Limited and Thal Limited for Joint Investm€nt in Sindh Engro Coal Mining
Company Limited (SECMC), the Company invested Rs. 240 million to acquire 16,194j32 Ordinary shares having face value of Rs. l0 each at a
price of Rs. l4.82persharerepresentingshareholdingof 6.3%o. TheCompany'stotal investmentcommitmentinSECMCisUSD20millionand
the remaining amount will be invested at or soon after SECMC achieving financial close which is expected to be achieved by December 2015. The
Investment in an associate is recognised at cost less impairment losses, ifany.
Althougtr the Company has less than 20Vo equity interest in SECMC, the management believes that the significant influence over the associate
exists due to the Company's representation on the Board of Directors of SECMC and participation in policy making process by virtue ofShareholders Agreement.
9. STORES,SPARESANDCONSUMABLES
This includes material purchased for boiler rehabilitation works amounting to Rs. 444.033 million (June 2014: Rs. Nil) which will be charged to profit and
loss account when consumed.
Dec 2014
(Rs.'000s)
(Unaudited)
Jun 2014
(Rs.'00s)(Audited)
TRADE DEBTS - Secured
Considered good l0.l 93,662,695 79,879,236
l0.l ThesereceivablesincludeanoverdueamountofRs.T6,242mrllion(June20l4: Rs.6l,540million)fromWAPDAandRs.5,564million(June20 l4: Rs. 4,63 I million) from NTDC. These are not impaired because the trade debts are secured by a guarantee from the Govemment of Pakistan
(GOP) under lmplementation Agreements.
The delay in payments from WAPDA carries mark-up at State Bank of Pakistan (SBP) discount rate plus 2Yo per annum compounded semi-
annually and the delay in payment from NTDC carries mark-up at a rate of 3 month KIBOR plus 4.5% per annum compounded semi-annually.
&tn--
@€rcM,l th@!i cm|8y
ll. LONG TERM LOANS - Secured
Hub plant
Narowal plant
Laraib's investment
Musharaka agreement
Less : Current portion oflong term loans
13. SHORT TBRM BORROWINGS - Secured
Finances under mark-up arangements
Dec 201 4
(Rs,'000s)
(Unaudited)
1,907,260
r 6, I 88,658
3,733,2352.500.000
24,329,ts3 23,557,044
(3.6s8,7s l) (3,523.184)
20,670,402 20,033,860
Jun 2014
(Rs.'000s)
(Audited)
2,396,791
t6,967,7864.t92,467
I L I During the period, the Company has entered into a long term Musharaka arrangement with a bank for an amount of Rs. 2,500 million to finance
boiler rehabilitation works at Hub Plant. The facility is repayable in sixteen equal installments on quarterly basis at a mark-up rate of3 months
KIBOR plus Ll0% per annum. The mark-up is payable on quarterly basis in arrear. Any late payment by the Company is subject to a markup of
l4%o per annum. This loan is secured by way of second ranking / subordinated charge over all present and future assets (excluding land and
buildings) pertaining to Hub River Project of the Company other than: (i) assets relating to the Narowal power plant; (ii) Commercial Facility
Disbursement Account; (iii) any shares in Demerged Company (special purpose vehicle that the Company may incorporate under the laws of
Pakistan for the purpose ofconstruction, ownership, operations & maintenance ofNarowal project); and (iv) present and future shares acquired in
the Subsidiary including bonus shares and right shares.
TRADE AND OTHER PAYABLES
This includes Rs. 78,726 million (June 2014: Rs. 57,680 million) payable to Pakistan State Oil Company Limited (PSO), out of which overdue amount is
Rs. 74,879 million (June 2014: Rs. 52,608 million).
The delay in payments to PSO canies mark-up at SBP discount rate plus 2%o per unum compounded semi-annually.
Dec 201 4
(Rs,'000s)
Note (Unaudited)
Jun 201 4
(Rs.'000s)
(Audired)
l3.l to 13 3 10.040.500 16.878.1 l8
l3.l The facilities for running finance available from various banks / financial institutions amounted to Rs. 27,265 million (June 2014: Rs.25,165
million) at mark-up ranging between 0.7\oh to 3.00o/o per annum above one / three month KIBOR. The mark-up on the facilities is payable on
monthly / quarterly basis in arrear. The facilities will expire during the period from February 28, 2015 to December 31, 2015. Any late payment by
the Company is subject to an additional payment of 1.00% to 2.007o per annum above the normal mark-up rate.
l3.l.l The facilities amounting to Rs. 22,340 million (June 2014: Rs. 20,240 million) are secured by way of charge over the trade debts and
stocks ofthe Company pari passu with the existing charge.
13.1.2 ThefacilitiesamountingtoRs.4,925million(June20l4: Rs.4,925million)aresecuredbywayof:
(a) a first ranking charge on all present and future (i) amounts standing to the credit of the Energy Payment Collection Account and
the Master Facility Account, (ii) Fuel, lube, fuel stocks at the Narowal plant and Spares parts; and (iii) the Energy Payment
Receivables of Narowal plant.
(b) a subordinated charge on all present and future plant, machinery and equipment and other moveable assets of the Narowal plant
excluding; (i) the immoveable properties; (ii) Hypothecated Assets under first ranking charge; (iii) the Energy Payment Collection
Account, Working Capital Facility Accounts and the Master Facility Account; (iv) the Energy Payment Receivables; (v) all of the
Project Company's right, title and interest in the Project Documents (including any receivables thereunder); and (vi) all current
assets.
13.1.3 This includes a sum of Rs. 775 million (June 2014: Rs. 275 million) payable to an associated undertaking. The available facilities
amounted to Rs. 775 million (June 2014: Rs. 275 million). These facilities are secured by way of securities mentioned in note l3.l.l and
t3.t.2.
13.2 The Company also has Murabahah facility agreements with banks for an amount of Rs. 625 million (June 2014: Rs. 625 million) at a mark-up of2.00%oper annum above three month KIBOR. The mark-up on the facilities is payable on quarterly basis in anear. These facilities will expire on
August 29, 201 5. Any late payment by the Company is subject to an additional payment of 4.00%o per annum above the normal mark-up rate. These
facilities are secured by way ofsecurities mentioned in note 13. L2 t*/h-
@gryrh dr@8h emr87
13.3 The Company also entered into a Musharaka agreement amounting to Rs. 635 million (June 2014: Rs. 635 million) at a mark-up of 2.00%oper
annum above three month KIBOR. The mark-up on the facility is payable on quarterly basis in arrear. This facility will expire on October 31,2015.
Any late payment by the Company is subject to an additional payment of2.00Vo per annum above the normal mark-up rate. This facility is secured
by way of securities mentioned in note 13. I .2 (a).
I4. COMMITMENTS AND CONTINGENCIES
There is no material change in the status ofcontingencies and commitments as disclosed in the annual unconsolidated financial statements ofthe Company
for the year ended June 30, 20 I 4 except as follows:
l4.l In 1998, the Federal Board ofRevenue ("FBR") made assessments under section 52186 ofthe lncome Tax Ordinance, 1979 I"lTO,79"l amounting
to Rs. 1,896 million stating that the Company did not withhold tax at the time of issue of shares to sponsors against project development costs
incuned by them. The Company deposited Rs. 297 million against the above assessments in accordance with the departmental procedures prevalent
at that time. Appeals filed by the Company before the Commissioner of lncome tax (Appeals) [the "CIT (A)"] and thereafter with the Income Tax
Appellate Tribunal ("nAT") were decided against the Company. Against the decision of the ITAT, the Company filed appeals before the High
Court ("HC") which were also decided against the Company in March 2012. Against the decision of the HC, the Company filed further appeals
before the Honourable Supreme Court of Pakistan ('SCP").
In order to restrict the penal exposure ofthe Company, in May 2012 the Company availed the scheme offered by the FBR vide SRO 547(l\/2012
datedMay22,2012andmade paymentofRs. l,6l5million. InJuly20l4,theSCPdecidedthecasein favoroftheCompany.TheFBRisseekinga review ofthe SCP decision and has filed a review petition before the SCP which is pending adjudication.
(i) Under the Implementation Agreement (tA) with GOP and under the tax laws, the Company's interest income is exempt from income tax.
However, the tax authorities issued a tax demand for the tax years 2006-2010 amounting to Rs. 143 million on the grounds that interest
income from term deposits is not covered under the exemption allowed under the tax law. The Company's appeal before the
Commissioner of Inland Revenue Appeals (CIR-A) and the Appellate Tribunal Inland Revenue ("ATIR) were rejected. Against the order
of the ATIR the Company filed Income Tax Reference Applications (lTRAs) before the Honorable Islamabad High Court (lHC). The IHC
while setting aside the judgement of the ATIR remanded back the appeals to the ATIR for a fresh hearing by a new bench. The ATIR re-
heard the appeals and has decided against the Company. The Company filed appeals before the IHC which were heard during November
2014 and the judgements were reserved. The Company's maximum exposure as at December 31,2014 including the principal amount,
penalty and default surcharge is approximately Rs. 228 million.
The management and their tax and legal advisors are of the opinion that the position of the Company is sound on technical basis and
eventual outcome ought to be in favour ofthe Company. Pending the resolution ofthe matters stated above, no provision has been made in
these condensed interim unconsolidated financial statements.
(ii) FBR also imposed 2% WWF for tax years 2006-2010 and issued a demand for Rs. l9l million which was subsequently reduced to Rs. 8
million by the CIR-A. The Company's appeals filed in IHC mentioned in (i) above also included this matter. The IHC while setting aside
thejudgement ofthe ATIR remanded back the appeals to the ATIR for a fresh hearing by a new bench. The ATIR re-heard the appeals and
decided against the Company. The Company filed appeals before the IHC which were heard during November 2014 andjudgements were
reserved . The Company's maximum exposure as at December 31,2014 including the principal amount, penalty and default surcharge is
approximately Rs. l0 million.
WWF is a pass through under the PPA and is recoverable from the WAPDA. No provision has been made in these condensed interim
unconsolidated financial statements.rs any payment made by the Company is a pass through item under the PPA.
(i) Under the lA with GOP and under the tax laws, the Company's interest income is exempt from income tax, However, during March 2014,
the FBR issued tax demand for tho tax year 201I amounting to Rs. 1.2 million on the grounds that interest income from term deposits is
not covered under the exemption allowed under the tax law. Appeals filed by the Company before the CIR-A and thereafter with the ATIR
were decided against the Company. The Company filed appeal with the IHC which was heard during November 2014 and the judgements
were reserved. The Company's maximum exposure as at December 31,2014 including the principal amount, penalty and default
surcharge is approximately Rs. 3.8 million.
The management and their tax and legal advisors are of the opinion that the position of the Company is sound on technical basis and
eventual outcome ought to be in favour ofthe Company. Pending the resolution ofthe matter stated above, no provision has been made in
these condensed interim unconsolidated financial statements.
(ii) FBR also imposed 2% WWF for the tax year 201I and issued a demand for Rs. 108.5 million. Appeals filed by the Company before the
CIR-A and thereafter with the ATIR were decided against the Company. The Company filed appeal with the IHC which was heard during
November 2014 and thejudgements were reserved. The Company's maximum exposure as at December 31,2014 including the principal
amount, penalty and default surcharge is approximately Rs. I14.9 million.
WWF is a pass through under the PPA and is recoverable from WAPDA. No provision has been made in these condensed interim
unconsolidated financial statements as any payment made by the Company is a pass through item under the PPA.
L*r'7'
14.2
t4.3
@grcunh thru3fi mryr
15. RELATED PARTY TRANSACTIONS AND BALANCES
Related party comprises subsidiary, associated companies, companies where directors also hold directorship, retiremcnt benefits fund and key management
personnel. Significant transactions and balances with related parties, other than those which have been disclosed elsewhere in these condensed interimunconsolidated financial statements are as follows:
I5.l Details ofTransactions
6 months ended 6 months ended
Dec 2014 Dec 2013
Note (Rs.'Offis) (Rs.'000s)
Subsidiary
Interest income on subordinated loan
Reimbursement of expenses
Associrted Undertakings
Interest income on placement offunds
Amounts paid for the purchase of assets
Amounts paid for services rendered
Donation
Reimbursement of expense
Repayment of long term loans
Interest / mark-up on long term loans
Mark-up on short term bonowings
Other finance costs
Other related parties
Other income
Mark-up on short term bonowings
Repayment of short term borrowings and related mark-up
Remuneration to key management personnel
Salaries, benefits and other allowances
Retirement benefits
40.9 t 2
6,969 9,806
rs.r,r ___19291 _-___ AJJ_
Directors' fee l5.l.2 7,050 5,200
Contribution to staffretirement benefit plans --
tJJJ- --- ,t -I5.LI Transactions with key management personnel are carried out under the terms of their employment. Key management personnel are also
provided with the use ofCompany maintained automobiles and certain other benefits.
| 5. I .2 This represents fee paid to Board of Directors for attending meetings.
15.1.3 Thetransactionswithrelatedpartiesaremadeundernormal commercial termsandconditions.
I 5.2 Details of Outstanding Balances
7,248 5,989
l6,78 l
---_---.:-----.----:
'71 ))1
17 A)A
23,367
5l
327
5,000 10,000
32
635,818
351,990
3,956
t7.939
9.247
49
15,537
f-4a sl T-- 4r jzl| 3,688 I | 6,653 |
Subsidiary
Outstanding balance of subordinated loan
Interest receivable on subordinated loan
Receivable against reimbursement of expenses
Associated Undertakings
Outstanding balance of long term loans
Accrued markup on long term loans
Accrued markup on short term borrowings
Dec 201 4
(Rs.'000s)
(Unaudited)
80.395
24.085
Jun 2014
(Rs.'l[0s)(Audited)
_____qgt9l_I 6,837
t03,263
__t26sw___1eB.ll_________220J_
t'/1tu
112,478
6.788
@trora'| theftr em,t|/
Dec 2014
(Rs.'000s)
Dec 2013
(Rs.'000s)
17.
18.
16. CASH AND CASH EQUIVALENTS
Cash and bank balances
Financos under mark-up arrangementsr,705,040 294.923
( 10,040,500) (t3,422,n9)(8,335,460) (t3,t27,t96)::
DIVIDEND
The Board ofDirectors declared an interim dividend forthe halfyear ended December3l,20l4 ofRs.4.00 per share, amounting to Rs.4,628:618 million,at their meeting held on February 16,2015. These condensed interim unconsolidated financial statemcnts do not reflect this dividend oavable which willbe accounted for in the period in which it is approved.
SUBSEQUENT EVENTS
I 8. I Subsequent to the period end, the Company has given notice to the Operator of its Hub Plant for the termination of the Operations & Maintenance(O&M) Agreement. As per the O&M Agreement, the Company is required to serve 12 months prior witten notice. The Company will manage theOperations & Maintenance of Hub Plant after the end of the notice period or earlier if mutually agreed upon. In the initial years, the Company mayincur additional expenditures on the operation & maintenance ofthe power plant which cannot be measured reliably at this stage.
18.2 Subsequent to the period end, one ofthe crank shaft at Narowal plant was found damaged and consequently resulted in shutdown ofone Engine.The Company's insurance policies cover this event which is subject to the final assessment and approval by the insurers. Efforts are in hand tobring the Engine back to service in the shortest possible time and it is expected that the Engine will be back in service by May 2015. The Companyis in the process offinalizing the terms for the replacement ofthis crank shaft and any financial impact cannot be measured reliably at this stage.
18.3 Under the Operation and Maintenance (O&M) agreement for the Hub plant, the Company pays fixed and variable fees to the operator. On Januaryl7'2015' the FBR passed an order amounting to Rs. 1,034 million relating to the tax years 2010 to 2013 for the recovery ofFederal Excise Duty(FED). The FBR is ofthe view that the O&M is a franchise agreement and not a service agreement and payments made thereon are in the nature oftechnical fees which are subject to FED. The Company is in the process offiling an appeal against'this order before the CIR-A.
The management and their tax and legal advisors are ofthe opinion that the position ofthe Company is sound on technical basis and eventualoutcome ought to be in favour ofthe Company. Pending the resolution ofthe matter stated above, no provision has been made in these condensedinterim unconsolidated fi nancial statements.
DATE OFAUTHORISATION
These condensed interim unconsolidated financial statements were authorised for issue on February 16, 2015 in accordance with the resolution of theBoard of Directors.
t*^rft*GENERAL
Figures have been rounded off to the nearest thousand rupees.
19.
ItL"h:,lovr*-Khalid Mansoor
Chief Executive
I
\*- -1-
*-Iqbal Alimohamed
Director
@srotid dtrugh co€rg/
THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATED
PROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR ENDED DECEMBER 3I,2OI4
Note
3 months ended
Dec 2014
(Rs.'000s)
33,83 l ,481
(28,826,747)
3 months ended
Dec 2013
(Rs.'000s)
40,661,436
(37,722,340)
80,58 r,307
(7 l,408,838)
79,734,448
(73,337,388)
6 months ended 6 months ended
Dec 2014 Dec 2013
(Rs.'000s) (Rs. '000s)
Tumover
Operating costs
GROSS PROFIT
General and administration expenses
Other income
Workers' profi t participation fu nd
PROFIT FROM OPERATIONS
Finance costs
PROFIT BEFORETAXATION
Taxation
PROFIT FOR THE PERIOD
Attributable to:
- Owners of the holding company
- Non-controlling interest
5,004,734
(230, r 9e)
2 t,833
2,939,096
(t74,906)
24,418
9,172,469
(4 r 9,000)
56,8 r 3
8,8 t 0,282
(3, r 7e,084)
6,397,060
(324,837\
I 00,606
4,796,368
( r,575,909)
2,788,608
( r,470, r 99)
6,172,829
(2,702,759)
3,220,459
( r,233)
|,3 18,409
(r,r60)
t,3t7 ,249
1,265,877
51,372
5,63 I, r 98
(t,742)
3,470,070
( l ,955)
3,219,226
3,074,331
I 44,895
5,629,456
5,402,88 t
226,575
3,468, I I 5
3,330,058
I 38,057
Basic and diluted eamings per share attributable
to owners of the holding company (Rupees)
The annexed notes from I to 2l form an integral part ofthese condensed interim consolidated financial statements'
1,317,249 5,629,456 3,468,1 l5
4.67
*-Iqbal Alimohamed
Director
l[^k]'l 0rrr rr---Khalid Mansoor
Chief Executive
@gDridndc'!/
THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATEI)
STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE HALF YEAR ENDED DECEMBER 3I,2OI4
3 montbs cndcd 3 months cndcd 6 months cnded 6 months;ndcd
Dcc 20t4 Dcc 2013 Dcc 2014 lloc 2013
(Rs'lXX)r) (Rs.'m0s) (Rr.'lX[s) (Rr.'lXnc)
Profit forthe period 3,219,226 1,317,249 5,629,456 3,468,115
Othcr comprebcnslvc incomc for thc pcriod
Itcrrrs thslviL not bc rcctw@to profrl or toss lnsubscquent pcrlods
Gain /(loss) on remeasurements ofpostcmploym€nt b€nefitobligption 3,797 (2,983) 527 (5,966)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Attributable to:
- Ownen ofthe holding company
- Non-controlling interest
The annexed notes from I to 2l form an integral part of0resc condensed interim consolidated financial stat€ments.
3223,023 1,314266 5,629,983 3,462,149
-i-----3,078,t28 1,262,894 5,403308 3,324,092
t44.895 51,372 226,575 138,057
3ln,onffi s,6rr,gQ @
--:-i=---
lqbal Alimohamed
Director
lU^tX on"r'rnt-Khalid Mansoor
ChiefExecutive
@goidr ttrouSt ef,ctg/
THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATED
BALANCE SHEETAS AT DECEMBER 3I,2OI4
Dec 2014
(Rs.'000s)
Note (Unaudited)
Jun 2014
(Rs.'000s)(Audited)
ASSETS
NON-CURRENT ASSETSFixed Assets
Property, plant and equiPment
Intangibles
Investment in an associate
Long term deposits and prepayments
CURRENT ASSETS
Stores, spares and consumables
Stock-in-trade
Trade debts
Advances, deposits, prepayments and other receivables
Cash and bank balances
TOTAL ASSETS
EOUITY AND LIABILITIES
SHARE CAPITAL AND RESERVE
Share CapitalAuthorised
Issued, subscribed and Paid-uP
Revenue Reserve
Unappropriated profit
Attributable to owners of the holding company
NON-CONTROLLING INTEREST
NON-CURRENT LIABILITIESLong term loans
Liabilities against assets subject to finance lease
Deferred liability
CURRENT LIABILITIESTrade and other payables
Interest / mark-up accrued
Short term borrowings
Current maturity of long term loans
Current maturity of liabilities against assets subject to
finance lease
COMMITMENTS AND CONTINGENCIES
TOTAL EQUITY AND LIABILITIES
169,473,502 t 55.204.834
59,425,052
1,420,419
243,087
3l,898
60,866,502
1,425,953
34,822
l0
l2,000,000 12,000,000
11 ,571 ,544
21,543,374
I t,571,544
22,318,164
33,889,708
| ,7 13,369
33,114,918
1,486,794
il
35,603,077
31,075,620
3,0 l 8,696
5,513
34,601,712
30,859,272
3,113,527
4,900
63,095,616
|,688,275
16,878,1 l84,660,612
86,625,423
l2
l3n
l4
t69.473.502 I 55,204,834
The annexed notes from I to 2l form an integral part ofthese condensed interim consolidated financial statements.
Itl"tJ r!'rqnr-Khalid Mansoor
Chief Executive
Vr-Iqbal$ffitm-cdr
Director
2,28t,7303,394,594
94,781,642
3,365,588
4,529,492
r 08.353.046
1,703,764
2,3 88,43 5
80,938,582
2,831, t 38
5,01 5,63 8
92,877,557
82,994,443
I,6 r r,705
t 0,040,500
4,8t4,502
309,446
99,770,596
@grcrti thrugfi encryy
THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATEDCASH FLOW STATEMENT (UNAUDITED)
FOR THE HALF YEAR ENDED DECEMBER 3I,2OI4
Note
6 months ended
Dec 2014
(Rs.'000s)
5,63 1 ,1 98
|,829,288
5,534
(77e)
10,914
(53,676)
2,980,897
78,972
6 months ended
Dec 2013
(Rs.'0fi)s)
3,470,070
| ,81 8,585
9,850
I
8,467
(79,609)
2,580,023
41,970
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation
Adjustments for:
Depreciation
Amortisation(Gain) / loss on disposal offixed assets
Staff gratuity
Interest income
Interest / mark-uP
Amortisation of transaction costs
Operating profit before working capital changes
Working capital changes
Cash generated from / (used in) operations
Interest received
Interest / mark-up paid
Taxes paid
Net cash generated from / (used in) operating activities
CASH FLOWS FROM II\IVESTING ACTIVITIES
Fixed capital expenditure
Proceeds from disposal offixed assets
Investment in an associate
Long term advance, deposits and prepayments
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid to owners of the holding company
Proceeds from long term loans
Repayment of long term loans - Hub plant
Repayment of long term loans - Narowal plant
Repayment of long term loans - Laraib's investment
Repayment of long term loans - Subsidiary
Repayment of liabilities against assets subject to finance
lease - Subsidiary
Net cash used in financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning ofthe period
Cash and cash equivalents at the end ofthe period
| 0,482,348
3,932,552
7,849,357
(23,293,297)
r 4,4 14,900
46,431
(3,0s7,467)(6,283)
( r 5,443,940)
89,925
(3,03 r,002)(4,403)
I1,397,581
( r 63,320)
5,307
(243,087)
2,924
( l 8,389,420)
(r 32,506)
2,8s1
(2,102)
(398, r 76)
(4,62t,966)
2,500,000(489,53 l )(809,360)
(473,280)
(602,605)
(r5r,r9t)
(r 3 r,7s7)
(s,1 90,1 46)
(489,53 I )(6e6, r 00)
(43 r,660)
(l r 3,605)
(4,647,933) (6,92t,042)
6,351,472
(r r,862,480)
t7 (s,5 r 1,008): (l 1,590,473)
The annexed notes from I to 2l form an integral part ofthese condensed interim consolidated financial statements.
(2s,442,2t9)
13,851 ,746
tlt-t)$ o*r'r.c't-Khalid Mansoor
Chief Executive
rcaurffiDirector
@gmwth throuSft cnergy
THE HUB POWER COMPANY LIMITED
CONDENSED INTERIM CONSOLIDATEDSTATEMENT OF CHANGES IN EQUITY (UNAUDITED)
FOR THE HALF YEAR ENDED DECEMBER 3I,2OI4
6 months ended
Dec 2014
(Rs.'000s)
6 months ended
Dec 2013
(Rs.'000s)
Attributable to owners of the holding company
Issued capital
Balance at the beginning of the period
Balance at the end of the period
Unappropriated profit
Balance at the beginning of the period
Total comprehensive income for the period
Transactions with owners in their capacity as owners
Final dividend for the fiscal year 2013-2014 @ Rs. 4.00
(2012-2013: @ Rs. 4.50) per share
Balance at the end ofthe period
Attributable to owners of the holding company
Non-controlling interest
Balance at the beginning of the period
Total comprehensive income for the period
Balance at the end ofthe period
Total equity
The annexed notes from 1 to2l form an integral part ofthese condensed interim consolidated financial statements.
11 ,57 1 ,544 11,571,544
11,571,544 n,571,544
21,543,374
5,403,408
4,628,618)(4,628,618)
22,168,390
3,324,092
(s I
(5,207,195)
22,318,164 20,285,287
33,889,708 31,856,831
7,486,794
226,575
1,159,273
138,057
1,713,369 1,297,330
35,603,077 33,1 54,1 6 1
l[^,lal or''rT l'--Khalid Mansoor
Chief Executive
lqbalfiffifiififi-Director
@grcwl'| ti.ouSn ffryy
THE HUB POWER COMPANY LIMITEDNOTES TO THE CONDENSED INTf,RIM CONSOLIDATED
FINANCIAL STATEMENTS (UNAUDITED)FOR THE HALF YEAR ENDED DECEMBER 3I,20I4
I. STATUSAND NATURE OF BUSINESS
The Hub Power Company Limited (the "holding company") was incorporated in Pakistan on August l, l99l as a public limited company under the
Companies Ordinance, 1984 (the "Ordinance"). The shares ofthe holding company are listed on the Karachi, Lahore and lslamabad Stock Exchanges and
its Global Depository Receipts are listed on the Luxembourg Stock Exchange. The principal activities ofthe holding company are to develop, own, operate
and maintain power stations. The holding company owns an oil-fired power station of 1,200 MW (net) in Balochistan (Hub plant) and a 214 MW (net) oil-
fired power station in Punjab (Narowal plant).
The Group consists of:
. The Hub Power Company Limited (the holding company); and
. Laraib Energy Limited (the subsidiary) - Holding of 74.95%.
The subsidiary was incorporated in Pakistan on August 9, 1995 as a public limited company under the Companies Ordinance, 1984. The subsidiary owns a
84 MW hydropower generating complex near the New Bong Escape, which is 8 km downstream of the Mangla Dam in Azad Jammu & Kashmir. The plant
commenced operations on March 23,2013. As per the terms of the PPA, the Reference Tariff approved by the National Electric Power Regulatory
Authority (NEPRA) is to be adjusted at Commercial Operation Date (COD) and the subsidiary is in the process of obtaining tariff adjustment from
NEPRA. The prior period results include the results of operations on the basis of reference tariff approved by NEPRA. During the period, NEPRA
approved indexation ofO&M components oftariffand accordingly revenue related thereto have been recognized. Differential amount ofrevenue due to
tariffadjustment on the remaining components will be recognized in the subsequent period.
Proposed Nrrowal Demerger
Under the tax laws of Pakistan, if Narowal were demerged into a separate legal entity, it would have lost its tax exempt status from taxation on the income
fiom power generation as is the case now and in line with the government's policy for IPPs which are exempt from taxation on the income fiom power
generation. The holding company requested the PPIB for the appropriate changes in the tax laws so that Narowal could be demerged into a separate legal
entity. During the period, the holding company has received the Economic Coordination Committee's (ECC) approval for the changes in tax laws to be
incorporated enabling the holding company to demerge Narowal into a separate legal entity having the same tax exempt status, after demerger, as it enjoys
now. While appropriate changes in the tax laws are still to be made by Federal Board of Revenue (FBR), the holding company has started the process to
demerge Narowal into a separate legal entity. It is expected that this process will be completed by December 2015.
SIGNIFTCANT ACCOUNTING POLICIES
The accounting policies and methods ofcomputation followed for the preparation ofthese condensed interim consolidated financial statements are same as
those applied in preparing the annual consolidated financial stalements for the year ended June 30, 2014.
BASIS OF PREPARATION
These unaudited condensed interim consolidated financial statements for the half year ended December 3l, 2014 have been prepared in accordance with
the requirements of IAS 34 "lnterim Financial Reporting" and provisions of and directives issued under the Ordinance. In case requirements differ, the
provisions ofand directives issued under the Ordinance have been followed.
These condensed interim consolidated financial statements do not include all the information and disclosures as required in the annual consolidated financial
statements and should be read in conjunction with the holding company's annual consolidated financial statements for the year ended June 30, 2014
3 months ended 3 months ended 6 months ended 6 months ended
Dec 2014 Dec 2013 Dec 2014 Dec 2013
(Rs.'fiXh) (Rs.'fiXh) (Rs.'fiXh) (Rs"fiXh)
OPERATING COSTS
Fuel cost
Water use charges
Stores and spares
Operation and Maintenance
lnsurance
Depreciation
Amortisation
Repairs, maintenance and other costs
WORKERS' PROFIT PARTICIPATION FUND
Provision for Workers' profit participation fund
Workers' profit participation fund recoverable
from WAPDA / NTDC
------:--------
--=-The hofding company is required to pxy 5o/o of its profit to the Workers' profit participation fund (the "Fund"). However, such payment does not affect the
holding company's overall profitability because after payment to the Fund, the holding company bills this to WAPDA / NTDC as a pass through item under
the PPAs.
28,826J47 37,722,340 7l,408,838 73,337,388::::
26,356,347 34,682,921
22,09t 20,925
57,061 116,925
990,524 1,040,987
229,748 274,131
885,426 896,77 |
2,683 4,109
282.867 685,s71
66,37732035,904
l I 5,680
2,112,021
463,693
I ,813, I 88
5,366
485,666
23't,326
(217,326)
67,674,726
3 l,000222,720
2,055,850
542,246
r,804,3 l69,429
997,l0l
132,597
(t32,5e7)
66,416
(66,4 l 6)
174,494
(t74.4e4)
@g@dt 6rou8tr .cr&/
3 months ended 3 months ended
Dec2014 Dec 2013
(Rs.'lXXh) (Rs.'fiXls)
6 months ended 6 months ended
Dec 20t4 Dec 2013
(k.'fiXh) (Rs.'fiXh)
6. FINANCECOSTS
lnterest / mark-up on long term loans
lnterest on finance lease
Mark-up on short term bonowings
Amortisation of transaction costs
Other finance costs
7, PROPERTY, PLANT AND EQUIPMENT
Operating property, plant and equipment
Capital work-in-progress
Holding company
Subsidiary
10. TRADE DEBTS - Secured
Considered good
936,28'7
44,952
477,3t239.025
I ,010,04949,7 t4
339,993
26,576
t,900,320
89,640
990,937
78,972
I19,215
2,019,206
99,415
46t,4024t,97080.76678,333 43,867
1.575,909 1,470,199 ____3.t7 9 W_ __*_2 J n.? 9_
Dec 2014 Jun 2014
(Rs.'fiXh) (Rs.'fiXh)(Unaudited) (Audited)
59,205,7s4 60,665,680
f- ror,rtrl l--trJJxl| il7,37e | 1 73,426
1
7, ffi.ffi7.1 Additions to prop€rty, plant and equipment during the period were Rs. 163.320 million and disposal therefrom at net book value were Rs. 4.528
million.
INVESTMENT IN AN ASSOCIATE
During the period, the holding company entered into a Shareholders Agreement with Engro Powergen Limited and Thal Limited for Joint Investment in
Sindh Engro Coal Mining Company Limited (SECMC). The holding company has invested Rs. 240 million to acquire 16,194,332 Ordinary shares having
face vafue of Rs. l0 each at a price of Rs. 14.82 per share representing shareholding of 6.3%. The holding company's total investment commitment in
SECMC is USD 20 million and the remaining amount will be invested at or soon after SECMC achieving financial close which is expected lo be achieved
by December 2015. The investment in an associate will be accounted for under equity method ofaccounting. As the acquisition took placejust before the
end ofthe period, therefore there was no impact ofchange in net assets acquired at the reporting date.
Although the holding company has less than 20o/oequity interest in SECMC, the management of the holding company believes that the significant influence
over the associate exists due to the holding company's representation on the Board of Directors of SECMC and participation in policy making process by
virtue of Shareholders Agreement.
STORES. SPARES AND CONSUMABLES
This includes material purchased by the holding company for boiler rehabilitation works at Hub plant amounting to Rs.444.033 million (June 2014: Rs.
Nil) which will be charged to profit and loss account when consumed.
Dec 2014
(Rs.'fiXh)
Note (Unaudited)
Jun 2014
(Rs.'fift)(Audited)
10. I 94,781,642 80,938,582
t0.l These receivables include an overdue amount of Rs.76,242 million (June 2014: Rs.61,540 million) from WAPDA and fu' 6,048 million (June
2014: Rs. 4,276 million) from NTDC. These are not impaired because the trade debts are secured by a guarantee from the Govemment of Pakistan
(GOP) under lmplementation Agreements.
The delay in payments from WAPDA canies mark-up at State Bank of Pakistan (SBP) discount rate plus 2%o per annum compounded semi-annually
and the delay in payments from NTDC canies mark-up at a rate of three / six month KIBOR plus 2Vo to 4.5%o per annum compounded semi-
@8rcwdr l,|@8it crc.p,
LONG TERM LOANS - Secured
Holding company
Hub plant
Narowal plant
Laraib's investment
Musharaka agreement
Less : Cunent portion of long term loans
Long term loans ofthe holding company
Subsidiary
Laraib plant
Less : Current portion oflong term loans
Long term loans ofthe subsidiary
13. SHORT TERM BORROWINGS - Secured
Finances under mark-up alTangements
Dec 2014
(Rr.'{XXh)
(Unaudited)
t,907,26016, I 88,658't ?11 ?15
2,500,000
Jun 2014
(Rs.'UXh)(Audited)
2,396,791
t6,967,786
4,192,467
24,329,153
(3,658,75 l )
23,557,044
(3,s23, l 84)
20,033,860
10,405,218
@ll.l During the period, the holding company has entered into a long term Musharaka arrangement with a bank for an amount of Rs.2,500 million to
finance boiler rehabilitation works at Hub Plant. The facility is repayable in sixteen equal installments on quarterly basis at a mark-up rate of 3
months KIBOR plus I . l0% per annum. The mark-up is payable on quarterly basis in anear. Any late payment by the holding company is subject to
a markup of l4o/o per annum. This loan is secured by way of second ranking / subordinated charge over all present and future assets (excluding land
and buildings) pertaining to Hub River Project of the holding company other than: (i) assets relating to the Narowal power plant; (ii) Commercial
Facility Disbursement Account; (iii) any shares in Demerged Company (special purpose vehicle that the holding company may incorporate under the
laws of Pakistan for the purpose of construction, ownership, operations & maintenance of Narowal project); and (iv) present and future shares
acquired in the subsidiary including bonus shares and right shares.
I2. TRADE AND OTHER PAYABLES
This includes Rs. 78,726 million (June 2014: Rs. 57,680 million) payable to Pakistan State Oil Company Limited (PSO), out of which overdue amount is
Rs. 74.879 million (June 2014: Rs. 52,608 million).
The delay in payments to PSO canies mark-up at SBP discount rate plus 2%o per annum compounded semi-annually.
l3.l Thefacilitiesforrunningfinanceavailabletotheholdingcompanyfromvariousbanks/financial instilutionsamountedtoRs.2T,265million(June
2014: Rs. 25,165 million) at mark-up ranging between 010%to 3.00% per annum above one / three month KIBOR, The mark-up on the facilities is
payable on monthly / quarterly basis in arrear. The facilities will expire during the period from February 28, 2015 to December 31,2015. Any late
payment by the holding company is subject to an additional payment of 1.00% to 2.00Vo per annum above the normal mark-up rate.
l3.l.l The facilities amounting to Rs. 22,340 million (June 2014: Rs. 20,240 million) are secured by way of charge over the trade debts and
stocks ofthe holding company pari passu with the existing charge.
13.1.2 ThefacilitiesamountingtoRs.4,925million(June20l4: Rs.4,925million)aresecuredbywayof:
(a) a first ranking charge on all present and future (i) amounts standing to the credit of the Energy Payment Collection Account and the
Master Facility Account, (ii) Fuel, lube, fuel stocks at the Narowal plant and Spares parts; and (iii) the Energy Payment Receivables
of Narowal plant.
(b) a subordinated charge on all present and future plant, machinery and equipment and other moveable assets ofthe Narowal plant
excluding; (i) the immoveable properties; (ii) Hypothecated Assets under first ranking charge; (iii) the Energy Payment Collection
Account, Working Capital Facility Accounts and the Master Facility Account; (iv) the Energy Payment Receivables; (v) all of the
Project Company's right, title and interest in the Project Documents (including any receivables thereunder); and (vi) all current
assets.
13.1.3 This includes a sum of Rs. 775 mitlion (June 2014: Rs. 275 million) payable to an associated undertaking of the holding company. The
available facilities amounted to Rs. 775 million (June 2014: Rs. 275 million). These facilities are secured by way of securities mentioned in
note 13.l.l and 13.1.2.
|ttse-o,r?tl| (l.lss.75l)l I (1,137,428)l
t0,82s,4t2
@
Dec 2014 Jun 2014
(Rs.'fiXh) (Rs.'fixh)
Note (Unaudited) (Audited)
13 rto 13 3 __J_0,040J99- _l_q!ZgJI_
@tbrydr ttrouth cerg/
13.2 TheholdingcompanyalsohasMurabahahfacilityagreementswithbanksforanamountofRs.625million(June20l4: Rs.625million)atamark-up of 2.00% per annum above three month KIBOR. The mark-up on the facilities is payable on quarterly basis in arrear. These facilities will expireon August 29, 2015. Any late payment by the holding company is subject to an additional payment of 4.00o/o per annum above the normal mark-uprate. These facilities are secured by way ofsecurities mentioned in note |3. L2.
13.3 The holding company also entered into a Musharaka agreement amounting to Rs. 635 million (June 2014: Rs. 635 million) at a mark-up of 2.00%o
per annum above three month KIBOR. The mark-up on the facility is payable on quarterly basis in arrear. This facility will expire on October 31,
2015. Any late payment by the holding company is subject to an additional paymenl of 2.00%o per annum above the normal mark-up rate. Thisfacility is secured by way ofsecurities mentioned in note I 3. I .2 (a).
I4. COMMITMENTS AND CONTINGENCIES
There is no material change in the status of contingencies and commitments as disclosed in the annual consolidated financial statemenls of the holdingcompany for the year ended June 30, 2014 except as follows:
l4.l In 1998, the Federal Board ofRevenue ("FBR") made assessments under section 52186 ofthe Income Tax Ordinance, 1979 ["1TO,79"1 amountingto Rs. 1,896 million stating that the holding company did not withhold tax at the time of issue of shares to sponsors against project developmentcosts incurred by them. The holding company deposited Rs. 297 million against the above assessments in accordance with the departmentalprocedures prevalent at that time. Appeals filed by the holding company before the Commissioner of Income tax (Appeals) [the "CIT (A)"] and
thereafter with the Income Tax Appellate Tribunal ("|TAT') were decided against the holding company. Against the decision of the ITAT, the
holding company filed appeals before the High Court ("HC") which were also decided against the holding company in March 2012. Against the
decision of the HC, the holding company filed further appeals before the Honourable Supreme Court of Pakistan ("SCP").
In order to restricl the penal exposure ofthe holding company, in May 2012 the holding company availed the scheme offered by the FBR vide SRO547(l)/2012 dated May 22,2012 and made payment of Rs. 1,615 million. In July 2014, the SCP decided the case in favor of the holding company.The FBR is seeking a review ofthe SCP decision and has filed a review petition before the SCP which is pending adjudication.
Under the Implementation Agreement (tA) with GOP and under the tax laws, the holding company's interest income is exempt fromincome tax. However, the tax authorities issued a tax demand for the tax years 2006-2010 amounting to Rs. 143 million on the grounds thatinterest income from term deposits is not covered under the exemption allowed under the tax law. The holding company's appeal before theCommissioner of Inland Revenue Appeals (CIR-A) and the Appellate Tribunal Inland Revenue C'ATIR) were rejected. Against the orderof the ATIR the holding company filed Income Tax Reference Applications (lTRAs) before the Honorable Islamabad High Court (lHC).The IHC while setting aside thejudgement ofthe ATIR remanded back the appeals to the ATIR for a fiesh hearing by a new bench. TheATIR re-heard the appeals and has decided against the holding company. The holding company filed appeals before the IHC which wereheard during November 2014 and the judgemens were reserved. The holding company's maximum exposure as at December 31,2014including the principal amount, penalty and default surcharge is approximately Rs. 228 million.
The management and their tax and legal advisors are of the opinion that the position of the holding company is sound on technical basisand eventual outcome ought to be in favour of the holding company. Pending the resolution of the matters stated above, no provision has
been made in these condensed interim consolidated financial statements.
FBR also imposed 2o/oWWF for tax years 2006-2010 and issued a demand for Rs. l9l million which was subsequently reduced to Rs. 8million by the CIR-A. The holding company's appeals filed in IHC mentioned in (i) above also included this matter. The IHC while settingaside the judgement of the ATIR remanded back the appeals to the ATIR for a fresh hearing by a new bench. The ATIR re-heard theappeals and decided against the holding company. The holding company filed appeals before the IHC which were heard during November2014 andjudgements were reserved . The holding company's maximum exposure as at December 31,2014 including the principal amount,penalty and default surcharge is approximately Rs. l0 million.
WWF is a pass through under the PPA and is recoverable from the WAPDA. No provision has been made in these condensed interimconsolidated financial statements as any payment made by the holding company is a pass through item under the PPA.
Under the I-A with GOP and under the tax laws, the holding company's interest income is exempt from income tax. However, duringMarch 2014, the FBR issued tax demand for the tax year 201I amounting to Rs. 3.2 million on the grounds that interest income from lermdeposits is not covered under the exemption allowed under the tax law. Appeals filed by the holding company before the CIR-A andthereafter with the ATIR were decided against the holding company. The holding company filed appeal with the IHC which was heardduring November 2014 and thejudgements were reserved. The holding company's maximum exposure as at December 31,2014 includingthe principal amount, p€nalty and default surcharge is approximately Rs. 3.8 million.
The management and their tax and legal advisors are ofthe opinion that the position ofthe holding company is sound on technical basisand eventual outcome ought to be in favour ofthe holding company. Pending the resolution ofthe matter stated above, no provision has
been made in these condensed interim consolidated financial statements.
FBR also imposed 2o/o WWF for the tax year 201I and issued a demand for Rs. 108.5 million. Appeals filed by the holding companybefore the CIR-A and thereafter with the ATIR were decided against the holding company. The holding company filed appeal with the IHCwhich was heard during November 2014 and the judgements were reserved. The holding company's maximum exposure as at December
31,2014 includingtheprincipalamount,penaltyanddefaultsurchargeisapproximatelyRs. ll4.9million.
WWF is a pass through under the PPA and is recoverable from WAPDA. No provision has been made in these condensed interimconsolidated financial statements as any payment made by the holding company is a pass through item under the PPA.
(i)t4.2
( ii)
(i)t4.3
(ii)
@gwth |Jrtugh ercrgf
I5. SEGMENT INFORMATION
I5.I SEGMENT ANALYSIS
The unallocated items of profit and loss relate to
represent amounts payable in respect of investment
Turnover
Operating costs
GROSS PROFIT
General and administration expenses
Other income
Workers' profi t participation fu nd
PROFIT FROM OPERATIONS
Finance costs
PROFIT BEFORE TAXATION
Taxation
PROFIT FOR THE PERIOD
Turnover
Operating costs
GROSS PROFIT
General and administration expenses
Other income
Workers' profi t participation fu nd
PROFIT FROM OPERATIONS
Finance costs
PROFIT BEFORE TAXATION
Taxation
PROFIT FOR THE PERIOD
Tumover
Operating costs
GROSS PROFIT
General and administration expenses
Other income
Workers' profi t particrpation fu nd
PROFIT FROM OPERATIONS
Finance costs
PROFIT BEFORE TAXATION
Taxation
PROFIT FOR THE PERIOD
costs incuned by the holding company for investment in the subsidiary. The unallocated liabilities
in the subsidiary' 3 months ended Dec 2014 .,....,,...,...
Hub plant Nrrowal plant Larrib plant Unrllocrtcd Total
. (Rs.'000s)
26,081,282 6.484.199
(23,5t7,397) (4,9s7,437)
I,266,000
(35r,913)
- 33,831,481
(28,826,747)
2,563,885
(t64,243)
7,477
2,407,t t9
(386,30r )
t,526,762
(36,369)
2,079
9t4,087
(2e,se7)
t2.277
l0
s,004,734
(230, | 99)
2 | ,833
|,492,472
(738, r 34)
896,767
(324,4e4)
l0 4,796,368
(r26,980) (1,s7s,909)
3,220,4s9
(t.233)
7 54,338
(7 t4)
572,273 (t26,970)
(41l)
2,020,7t0 753,624 572,273 (127,381) 3,219,226
....3 months ended Dec 2013...............
Hub plant Narowal plant Laraib plant Unallocated Totrl
(Rs.'000s)
32,045,263 7,719,710
(30,56s,936) (6,783,749)
896,463
(372.655)
40,66t,436
(37,722,340)
|,479,]27
( | 08,623)
I 0,578
1,38t,282
(322,s60)
tpsSJn
o15 06 |
(38,s30)
2,876
523,808
(27,4s't)
10,964 24,418
,J88"608
( r,470,1 99)
I ,3 r 830'
- 2,939,096
(296) (t74,e06)
900,307
(7t2,192)
507,3 I 5
(]09,022)
(2e6)
(t26,425)
188,1 l5
(et2)
198,293 (126,721)
- (248) (1,160)
|.oslJ'2 l si2o3 198293 @6,%r\ |,3t7,249
6 months ended Dec 2014 ...............
Hub phnt Narowal plant Laraib plrnt Unallocatcd Total
64,2 r 8,1 90 14.|0t.419 2.261.698 - 80.581,307
- (7 I,408,838)(s9,368,r64) (l r,301,6r0) (738,864)
4,|/.r,816
(304,886)
8,702
4,553,64'
(7s0,0 l 2)
3"803r30
(108)
1 en2 <tt:
2,799,809
(60,589)
'l ost
|,522,834
(53,s02)
44.159
(23)
9,172,469
(4 r e,000)
56,8 r3
2,'t43,172
( l ,s40,489)
I ,5 I 3,491
(62 l,ss9)
(23) 8,810,282
(267,024) (3,r79,084)
|,202,683
(8e8)
89 I ,932 (267,047) s,63 r, r98
(736) (t,742)
5,629,4561.20r.78s 891,932 (267,783)
@srow$ th@gtr dErgt
6 months cndcd Dec 20t3 ......,..,....,
Hub plrnt Nerowrl plrnt Lrraib plent Unrllocatcd Tolll
........ (Rs.'000s) ............
Tumover
Operating costs
GROSS PROFIT
General and administration expenses
Other income
Workers' profit participation fund
PROFIT FROM OPERATTONS
Finance costs
PROFIT BEFORE TAXATION
Taxation
PROFIT FOR THE PERIOD
SEGMENT ASSETS & LIABILITIES
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL ASSETS
TOTAL LIABILITIES
63,110,610 t4,709,662
(s9,8s2,719) (t2,739,44t)
|,914,176
(745,228)
79,734,448
(73,337,388)
32s?,891
(2 l 3,865)
59,474
3,r03J00
(477,364)
= z,olo, I Jo
|,970,221
(46,638)
6,836
| , | 68,948
(63,74t)
34,296
l,930,419
(t,370,244)
l, I 39,503
(602,t94)
(se3)
6,397,060
(324,837\
l 00,606
(593) 6,t72,829
(2s2,9s7) (2,702,7se)
s60,l7s 537,309
( l,s37)
(2s3,550) 3,470,070
(4r8) (l,ess)
2,626,t36 ss8r38 s3?J0' (2s3,r6s") 3/6qt ts
(Unaudited)
Dec 2014
Hub plent Nerowat plant Lrrrib plant Unrllocrted Totel
(Rs.'000s)
u3,734,224 30,698,26t 25,040,154 863 169,473,502
9l,640,926 22,683,262 t5,707,373 3,838,864 t33,870,42s
-
: :(Audited)
Jun 2014
Hub plrnt Nrrowal plant Laraib plant Unrllocrted Total
(Rs.'000s)
9s,902,749 34,6s4,t02 24,647,693 290 15s,204,834
74,025,071 26,051,673 16,216,059 4,310,319 120,603,122
@Irasdtr tn@8fi crcr8/
I6. Rf,LATED PARTY TRANSACTIONS AND BALANCES
Related party comprises associated companies, companies where directors also hold directorship, retiremenl benefits fund and key management personnel.
Significant transactions and balances with related parties, other than those which have been disclosed elsewhere in these condensed interim consolidated
financial statements are as follows:
16.1 Detaih ofTransactions6 months ended 6 months ended
Dec 2014 Dec 2013
Note (Rr.'fiXh) (Rs.'fiXh)
Associated Undertakings
Interest income on placement of funds
Amounts paid for the purchase of assets
Amounts paid for services rendered
Donation
Reimbursement of expense
Repayment of long term loans
lnterest / mark-up on long term loans
Mark-up on short term borrowings
Other finance costs
0ther relrted parties
Other income
Mark-up on short term bonowings
Repayment of short term bonowings and related mark-up
Remuneration to key management personnel
Salaries, benefits and other allowances
Retirement benefits
Directors'fee
Contribution to staffretirement benefit plans
Associrted Undertakings
Outstanding balance of long term loans
Accrued markup on long term loans
Accrued markup on short term borrowings
t7.939
9,247
6,969 9,806
5,000 10,000
32
1) 1)1
77,624
)1 141
5l
635,8 I 8
35 t,990
3,956
I 1,084
327
49
t5 <17
16. l. I
t6.t.2
Dec 2014
(Rs.'fiXh)(Unaudited)
_t,tn,8n_3 8,071
6.788
Jun 2014
(Rs.'fiXh)(Audited)
_t26s962_
-______124t_2,207
I 6112r I l- r.nrl| +,soall t.totl
65,985 60,534
9,050 7,200
7,39t 4,730
16,LI Transactions with key management personnel are carried out under the terms of their employment. Key management personnel are also
provided with the use of Company maintained automobiles and certain other benefits.
16.1.2 This represents fee paid to Board ofDirectors for attending meetings.
16. I .3 The transactions with related parties are made under normal commercial terms and conditions.
16.2 Details of Outstanding Balances
@srqitrf| ftdrgfi *rrt
17. CASH AND CASH EQUIVALENTS
Cash and bank balances
Finances under mark-up arrangements
DIVIDEND
The Board ofDirectors ofthe holding company declared an interim dividend for the halfyear ended December 31, 2014 ofRs. 4.00 per share, amounting tofu. 4,628.618 million, at their meeting held on February 16,2015. These condensed interim consolidated financial statements do not reflect this dividendpayable which will be accounted for in the period in which it is approved.
SUBSEQUENT EVENTS
l9.l Subsequent to the period end, the holding company has given notice to the Operator of its Hub Plant for the termination of the Operations &Maintenance (O&M) Agreement. As per the O&M Agreement, the holding company is required to serve 12 months prior written notice. Theholding company will manage the Operations & Maintenance of Hub Plant after the end of the notice period or earlier if mutually agreed upon. Inthe initial years, the holding company may incur additional expenditures on the operation & maintenance of the power plant which cannot bemeasured reliably at this stage.
19.2 Subsequent to the p€riod end, one ofthe crank shaft at Narowal plant was found damaged and consequently resulted in shutdown ofone Engine.The holding company's insurance policies cover this event which is subject to the final assessment and approval by the insurers. Efforts are in handto bring the Engine back to service in the shortest possible time and it is expected that the Engine will be back in service by May 2015. The holdingcompany is in the process offinalizing the terms for the replacement ofthis crank shaft and any financial impact cannot be measured reliably at thisstage.
19,3 Under the Operation and Maintenance (O&M) agreement for the Hub plant, the holding company pays fixed and variable fees to the Operator. OnJanuary 17, 2015, the FBR passed an order amounting to Rs. I ,034 million relating to the tax years 20 | 0 to 2013 for the recovery of Federal ExciseDuty (FED). The FBR is of the view that the O&M is a franchise agreement and not a service agreement and payments made thereon are in thenature oftechnical fees which are subject to FED. The holding company is in the process of filing an appeal against this order before the CIR-A.
The management and their tax and legal advisors are ofthe opinion that the position ofthe holding company is sound on technical basis and eventualoutcome ought to be in favour of the holding company. Pending the resolution of the matter stated above, no provision has been made in thesecondensed interim consolidated financial statements.
DATE OF AUTHORISATION
These condensed interim consolidated financial statements were authorised for issue on February 16,2015 in accordance with the resolution ofthe Board ofDirectors of the holding company.
GENERAL
Figures have been rounded offto the nearest thousand rupees.
21.
Dec 2014 Dec 2013
(k.'fiXls) (R!.'fiXh)
4,529,492 l,83 r,646(r0,040,500) (t3,422,u9)
__(5J.lt99Q_ _( l t,5eo,4?:).
IMDirector
[t^l.til 0rel,rlr-Khalid Mansoor
Chief Executive
18.
t9.
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