| JAPAN POWER GENERATION LIMITED |
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| Annual
Reports 2002 |
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| Contents |
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| Company Information |
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| Notice of the Meeting |
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| Directors
'Report |
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| Auditors
'Report |
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| Balance
Sheet |
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| Profit and Loss Account |
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| Cash Flow Statement |
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| Statement of Changes in Equity |
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| Notes to the Accounts |
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| Pattern of Shareholdings |
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| Categories of Share Holders |
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| Form of Proxy |
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| COMPANY
INFORMATION |
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| BOARD
OF DIRECTORS |
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| Mr. ZAFAR MAHMOOD |
(Chief Executive) |
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| SHEIKH NAZAZALI |
(Chairman) |
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| Mr. HASEEB KHAN |
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| Mr. ASAD
ALI UPPAL |
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| Mr.AKHTARALI
UPPAL |
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| Mr. FAISAL
QAMAR UPPAL |
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| Mr.SAITOYOSHIHIRO |
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| Mr. TAKASHI
KABURAGI |
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| Mr.
MUHAMMAD ALI |
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| Mr. KHALID
IMRAN |
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| Mr. MAHMOOD
AHMED |
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| SYED
MAJEEDULLAH HUSAINI |
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| SHEIKH
MAHMOOD ALI |
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| Mrs. SAMINA
ZAFAR |
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| COMPANY
SECRETARY SYED ZAFAR HAIDER |
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| |
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| COMPANY'S AUDIT |
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| COMMITTEE |
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| |
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| Mr. HASEEB KHAN (Chairman) |
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| SHEIKH MAHMOOD ALI |
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| Mr. FAISAL QAMAR UPPAL |
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| Mrs. SAMINA
ZAFAR |
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| |
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| AUDITORS |
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| HYDERBHIMJI&CO., |
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| CHARTERED
ACCOUNTANTS |
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| & |
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| JAVAID
JALAL AMJAD & CO., |
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| CHARTERED
ACCOUNTANTS |
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| |
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| LEGAL ADVISORS |
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| WALKER MARTINEAU |
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| SALEEM |
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| |
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| BANKERS |
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| PRIME COMMERCIAL BANK LTD. |
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| ASKARI COMMERCIAL BANK LTD. |
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| ALLIED BANK
OF PAKISTAN LTD. |
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| |
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| REGISTERED
OFFICE |
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| 26,
PESHAWAR BLOCK, FORTRESS STADIUM, |
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| LAHORE CANTT. |
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| TEL:
+92-42-6668156-57 FAX: +92-42-6664625 |
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| PLANT LOCATION |
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| JIA BAGGA
RAILWAY STATION |
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| RAIWIND
ROAD, DISTRICT LAHORE. |
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| TEL:
+92-42-5835864-68 FAX: +92-42-5835860 |
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| NOTICE
OF ANNUAL GENERAL MEETING |
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| Notice
is hereby given that the 8"'Annual General Meeting of the members of
Japan Power Generation Limited |
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| will
be held on Wednesday, the 30"' October 2002 at 11:00 a.m. at plant site
located at Khan-e-Nepal Road, Near Jia |
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| Bagga
Railway Station, Raiwind Road, District Lahore to transact the following
business: |
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| |
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| 1. To confirm the minutes of the lastAnnual
General Meeting held on December 31,2001. |
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| 2. To receive, consider and adopt the
audited accounts of the company for the financial year ended June |
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| 30,2002
together with the Auditors' and Directors' Reports thereon. |
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| |
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| 3. To appoint Auditors of the company for
the year ending June 30, 2003 and fix their remuneration. |
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| |
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| 4. To transact any other business that may
be placed before the meeting with the permission of the chair. |
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| For and
on behalf of |
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| the Board of Director |
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| |
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| Lahore: |
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SYEDZAFARHAIDER |
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| Dated: October 08,2002. |
(Company Secretary) |
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| NOTES: |
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| 1. The Share Transfer Book of the Company
will remain closed from October 20,2002 to October 30. |
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| (Both days inclusive) |
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| |
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| 2. A member entitled to attend and vote at
the above meeting may appoint another person as proxy. |
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| Proxies,
in order to be effective, must be received at 26-Peshawar Block, Fortress
Stadium, Lahore |
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| Cantt,
to the Registered Office of the Company not later than 48 hours before the
time of the meeting |
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| and must be
duly stamped, signed and witnessed. |
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| |
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| 3. Members are requested to immediately
notify the change in address, if any. |
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| DIRECTORS'
REPORT TO THE MEMBERS |
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| The
Directors of your company take pleasure in presenting the 8"' Annual
Report and the Audited Accounts of the |
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| |
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| company for
the year ended June 30,2002. |
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| PRINCIPALACTIVITIES |
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| The
principal activities of the company are to own, operate and maintain a
thermal power house with an installed |
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| capacity of
135 MW at Raiwind Road, Lahore and to generate power for onward supply to
WAPDA. |
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| |
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| PRESENT STATUS |
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| The
complex (plant) was operated to a high standard of technical efficiency which
was achieved after regular |
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| supervision
and preventive maintenance. WAPDA recently conducted Annual Dependable
Capacity Test from August |
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| 27,
2002 to August 30, 2002 and your Directors feel pleasure in informing the
shareholders that the complex |
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| successfully
qualified the test by generating 116.094 MW against the net capacity
requirement of 107 MW i.e. an |
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| excess
generating capacity of 9 MW. |
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| |
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| FINANCIAL
RESULTS |
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| Turnover
for the year was Rs. 1,960 million (2001:Rs. 1,508 million) and operating
costs were Rs. 1,484 million (2001: |
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| |
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| Rs.
1,087 million) resulting in a gross profit of Rs. 476 million (2001: Rs. 421
million). The average dispatch to |
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| WAPDA
in term of percentage of dependable capacity was 45.88% (2001: 30%). However,
inspite of increase in |
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| turnover
during the year, the company suffered a net loss ofRs. 257 million (as
compared to Rs. 187 million last year) |
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| after
deducting administrative and financial expenses. |
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| |
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| Major
reasons for continuous losses are as follows: |
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| |
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| 1. Your company's levellized tariff was
reduced to US cents 4.3 perkWh in July, 1999 against US cents 5.56 per |
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| kWh
as per original Power Purchase Agreement (PPA). Other IPPs in the same
vicinity with almost the same |
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| capacity
are paid a levellized tariff of US cents 5.19 perkWh. This reduction was
reluctantly agreed by your |
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| company
in the larger interest of the shareholders and lenders for the revival of the
complex because WAPDA |
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| had
already issued a notice of intent to terminate the PPA. The management is
soliciting a request to WAPDA |
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| to increase
the agreed tariff to a reasonable level in order to improve the operational
results of the company. |
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| |
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| 2. Presently the company is paid by WAPDA
for consumption of furnace oil @ 211 gm per kWh in fuel |
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| component
of energy payment against actual consumption ranging between 218 - 222 gm per
kWh. Your |
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| directors
also plan to take up this issue with WAPDA and are confident to convince
WAPDA to increase the |
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| consumption
factor on merit. Positive response from WAPDA will significantly improve the
operating results |
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| and
financial liquidity of the company. |
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| |
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| 1. Similar to last year, liquidated
damages ofRs 74 million invoiced by WAPDA and charged in these |
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| accounts
have also contributed to loss for the year. The management is vigorously
making efforts to |
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| arrange
funds for timely purchase of HFO to avoid the levy of such damages in the
future. |
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| |
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| 2. Heavy financial cost is another factor
for continuing losses. The financial expenses for the current year are
Rs. |
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| 603.603
million as compared to Rs. 541.267 million for the previous year. The company
is making payments |
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| regularly
to reduce its debts and financial charges will start decreasing after payment
of last installment of |
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| supplier's
credit which is due on March 26,2004. |
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| |
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| 3. Loss of revenue ofRs. 26.667 million
resulted from short receipt of capacity payments from WAPDA due to |
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| the
depressing effect of the decrease in US $ exchange rate during the period
from January to June 2002. This |
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| loss may
further increase ifUS$ continues to fall in the future. |
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| |
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| 4. After the mishap of September 11, 2001
the insurance premium has almost doubled to secure the complex |
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| under a
proper insurance cover. |
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| |
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| The
above facts highlight the urgent need for improving the financial position of
the company and your |
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| management
is sincerely trying to mobilize all its resources to overcome this adverse
situation, and thereby |
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| converting
your company into a profitable unit in the years to come. In this regard the
management is taking |
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| the
following steps to improve the overall profitability and financial health of
the company. |
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| |
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| i) It is planned to approach WAPDA for
sale of additional 9 MW, the extra generating capacity |
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| demonstrated
during annual dependable capacity test as mentioned above. In case of
successful |
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| negotiations
it will increase revenues and reduce the accumulated loss resulting from
decrease in |
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| tariff rate. |
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| |
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| ii) The company is in the process of
reconciling its balances with WAPDA on account of liquidated |
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| damages
charged by WAPDA in the First Agreement Year and your Directors are confident
to |
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| claim a
refund of about Rs. 66 million, which will also reduce the accumulated loss. |
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| |
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| iii) The sponsoring directors are also
injecting a sum of Rs.60 million in due course of time which will |
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| improve the
overall liquidity and the working capital position of the company. |
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| |
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| By
the grace of Allah and Prophet's blessing (pbuh), and with the untiring
efforts of the management, your |
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| company is
expected to show much better results in the future. |
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| CORPORATE
AND FINANCIAL REPORTING FRAMEWORK |
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| We
are pleased to report that your company has taken necessary steps to comply
with the provisions of the |
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| Code of
Corporate Governance issued by Securities and Exchange Commission of
Pakistan. |
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| |
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| We give
below Statements on Corporate and Financial Reporting Framework. |
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| |
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| • The financial statements, prepared by
the management of the company, present fairly its state of affairs, the |
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| result of
its operations, cash flows and changes in equity. |
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| |
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| • The financial statements for the year
ended June 30, 2002 were presented before the Board after duly signed |
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| by
the CEO and CFO. The Board after due consideration and approved, authorized
the signing of the financial |
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| statements
for issuance and circulation. |
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| |
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| • Proper books of account of the company
have been maintained. |
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| |
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| • Appropriate accounting policies have
been consistently applied in preparation of the financial statements and |
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| accounting
estimates are based on reasonable and prudent judgment. |
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| |
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| •' International Accounting Standards, as
applicable in Pakistan, have been followed in preparation of the |
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| financial statements. |
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| • A sound system of internal control is
being effectively implemented and continuously reviewed and |
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| monitored. |
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| |
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| • For the reasons stated in the relevant
paras of this report, there are no significant doubt upon the company's |
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| abi 1 ity
to continue as a going concern. |
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| |
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| • There has been no material departure
from the best practices of corporate governance, as detailed in the
listing |
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| regulations. |
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| |
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| • Note 9 of the annexed audited accounts
relate to outstanding taxes and levies. |
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| |
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| • In compliance with the requirements of
the Securities and Exchange Commission of Pakistan, the company |
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| has been
issuing the quarterly financial statements within the prescribed time limits. |
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| |
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| • The key operating and financial data of
the company is as under: |
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| |
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| Financial
year ended June 30, |
2002 |
2001 |
2000 |
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| |
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| Turnover |
Rs. in million |
1,960 |
1,508 |
374 |
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| Net loss |
Rs. in million |
(257) |
(187) |
(67) |
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| Total assets |
Rs. in million |
6,895 |
6,961 |
7,058 |
|
| Generation |
(MWH) |
430,058 |
281,544 |
70,507 |
|
| Load factor |
% |
46 |
30 |
26 |
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| |
|
| *
(Operating results for the year 2000 are for the period of three and a half
months only) |
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| |
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| BOARD MEETINGS |
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| During the
year, four meetings of the Board of Directors were held. Attendance by each
director was as follows: |
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| |
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| |
Attendance |
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| Mr. Zafar
Mahmood (Chief Executive) |
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4 |
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| Sheikh Nazaz Ali |
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4 |
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| Mr. Haseeb Khan |
|
4 |
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| Mr. Akhtar Ali Uppal |
|
4 |
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| Mr. Asad Ali Uppal |
|
4 |
|
| Mr. Faisal
Qamar Uppal |
|
4 |
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| Mr. Mahmood
Ahmed (Crescent Investment Bank Ltd) |
0 |
|
| Sheikh Mahmood Ali |
|
4 |
|
| Mr. Muhammad Ali |
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2 |
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| Mr. Saito Yoshihiro |
|
0 |
|
| Mr. Takashi
Kaburagi |
|
0 |
|
| Mrs. Samina Zafar |
|
2 |
|
| Mr. Khalid
Imran (Nominee Prime Commercial Bank Ltd) |
4 |
|
| Mr. Majeed
Ullah Hussaini (Nominee National Bank of Pakistan) |
0 |
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| |
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| Leave
of absence was granted to directors including Japanese directors who could
not attend the Board meetings. |
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| |
| SHAREHOLDING
PATTERN |
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| A
statement indicating the distribution of shareholding is attached with this
report. |
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| |
| AUDITORS |
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| The
present Auditors' M/s. Hyder Bhimji & Company, Chartered Accountants
& Javaid Jalal Amjad & Company, |
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| Chartered
Accountants retire and being eligible, offer themselves for re-appointment. |
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| |
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| GENERAL |
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| During
the year, there were a number of changes in the Banking Sector which also
affected the lending syndicate of our |
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| project.
Effective November 1,2001 National Development Finance Corporation (NDFC), a
Syndicate Member and a |
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| Lender,
amalgamated with the National Bank of Pakistan (NBP) under a scheme notified
by the Federal Government |
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| Similarly
Gulf Commercial Bank Ltd. another member of the lending syndicate, was taken
over by PICIC and its name |
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| changed
to PICIC Commercial Bank Ltd. Similarly another lender. Prudential Commercial
Bank Ltd. was taken |
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| over
by Saudi Pak Investment Co. and is now knows as Saudi Pak Commercial Bank
Ltd. AL-Faysal Investment Bank |
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| Ltd.
Merged with Faysal Bank Ltd. Beside this, the share of the Indus Bank Ltd.
(under liquidation) in the lender's |
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| syndicate
has been taken over by Allied Bank of Pakistan Ltd. |
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| |
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| Your
Directors are pleased to report that during the year all payments to the
lenders have been made on time and in |
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| |
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| accordance
with the SFA-I and SFA-II. |
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| |
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| ACKNOWLEDGEMENT |
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| All
the employees of the company have put in a real team work. The directors wish
to thank the members, staff and |
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| management
of the company for their hard and dedicated efforts. |
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| |
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| on behalf of |
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| the Board of Director |
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| |
| Lahore: September 30,2002 |
CHIEFEXECUTIVE |
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| |
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| AUDITORS'
REPORT TO THE MEMBERS |
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| We
have audited the annexed balance sheet of Japan Power Generation Limited as
at June 30, 2002 and the related |
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| profit
and loss account, cash flow statement and statement of changes in equity
together with the notes forming part |
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| thereof,
for the year then ended and we state that we have obtained all the
information and explanations which, to |
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| the best of
our knowledge and belief, were necessary for the purpose of our audit. |
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| |
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| It
is the responsibility of the company's management to establish and maintain a
system of internal control, and prepare |
|
| and
present the above said statements in conformity with the approved accounting
standards and the requirements of |
|
| the
Companies Ordinance 1984. Our responsibi lity is to express an opinion on
these statements based on our audit. |
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| |
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| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These standards require |
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| that
we plan and perform the audit to obtain reasonable assurance about whether
the above said statements are free of |
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| any
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and |
|
| disclosures
in the above said statements. An audit also includes assessing the accounting
policies and significant |
|
| estimates
made by management, as well as, evaluating the overall presentation of the
above said statements. We believe |
|
| that our
audit provides a reasonable basis for our opinion and, after due
verification, we report that: |
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| |
|
| a) in our opinion, proper books of account
have been kept by the company as required by the Companies |
|
| Ordinance, 1984; |
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| |
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| b)
in our opinion: |
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| |
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| i. the balance sheet and profit and loss
account together with the notes thereon have been drawn up |
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| in
conformity with the Companies Ordinance, 1984, and are in agreement with the
books of |
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| account
and are further in accordance with accounting policies consistently applied
except for the |
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| change as
mentioned in note 2.3 with which we concur; |
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| |
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| ii. The expenditure incurred during the
year was for the purpose of the company's business; and |
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| |
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| iii. the business conducted, investments made
and the expenditure incurred during the year were in |
|
| accordance
with the objects of the company; |
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| |
|
| c) in our opinion and to the best of our
information and according to the explanations given to us, the balance |
|
| sheet,
profit and loss account, cash flow statement and statement of changes in
equity together with the notes |
|
| forming
part thereof conform with approved accounting standards as applicable in
Pakistan, and, give the |
|
| information
required by the Companies Ordinance, 1984, in the manner so required and
respectively give a |
|
| true
and fair view of the state of the company's affairs as at June 30, 2002 and
of the loss, its cash flows and |
|
| changes in
equity for the year then ended; and |
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| |
|
| d) in our opinion, no zakat was deductible
at source under the Zakat and Ushr Ordinance, 1980. |
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| |
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| Lahore: September 30, 2002 |
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| |
|
| Javaid Jalal Amjad & Co. |
|
| Chartered Accountants |
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| |
|
| Hyder
Bhimji & Co |
|
| Chartered
Accountants |
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| |
|
| REVIEW REPORT TO THE
MEMBERS ON STATEMENT OF |
|
| COMPLIANCE WITH
BEST PRACTICES OF CODE OF CORPORATE |
|
| GOVERNANCE |
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| |
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| We
have reviewed the Statement of Compliance with the best practices contained
in the Code of Corporate Governance |
|
| prepared
by the Board of Directors of Japan Power Generation Limited to comply with
the Listing Regulation No. 37 |
|
| (Chapter
XI) and No. 40 (Chapter XIIT) of the Karachi and Lahore Stock Exchanges
respectively where the Company is |
|
| listed. |
|
| |
|
| The
responsibility for compliance with the Code of Corporate Governance is that
of the Board of Directors of the |
|
| Company.
Our responsibility is to review, to the extent where such compliance can be
objectively verified, whether the |
|
| Statement
of Compliance reflects the status of the company's compliance with the
provisions of the Code of Corporate |
|
| Governance
and report if it does not. A review is limited primarily to inquiries of the
Company personnel and review of |
|
| various
documents prepared by the company to comply with the Code. |
|
| |
|
| As
part of our audit of financial statements we are required to obtain an
understanding of the accounting and internal |
|
| control
system sufficient to plan the audit and develop an effective audit approach.
We have not carried out any special |
|
| review
of the internal control system to enable us to express an opinion as to
whether the Board's statement on internal |
|
| control
covers all controls and the effectiveness of such internal controls. |
|
| |
|
| Based
on our review nothing has come to our attention which causes us to believe
that the Statement of Compliance |
|
| does
not appropriately reflects the Company's compliance, in all material
respects, with the best practices contained in |
|
| the Code of
Corporate Governance effective for the period from May 2,2002 to June
30,2002. |
|
| |
|
| Lahore: September 30, 2002 |
|
| |
|
| Javaid Jalal Amjad & Co. |
|
| Chartered Accountants |
|
| |
|
| Hyder
Bhimji & Co |
|
| Chartered
Accountants |
|
| |
|
| BALANCE
SHEET AS AT JUNE 30, 2002 |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| Capital and reserves |
|
| Authorized capital |
|
| 150,000,000
ordinary shares of Rs. 10 each |
|
1,500,000,000 |
1,500,000,000 |
|
| Issued,
subscribed and paid-up capital |
|
|
|
| 133,200,000
ordinary shares ofRs.10 each, |
|
|
|
| fully paid-up in cash |
|
1,332,000,000 |
1,332,000,000 |
|
| Accumulated loss |
|
(512,181,100) |
(255,131,474) |
|
| Shareholders' equity |
|
819,818,900 |
1,076,868,526 |
|
| Non current liabilities |
|
|
|
| Sponsors'
interest free loan - unsecured |
|
168,375,918 |
168,375,918 |
|
| Long term
loans / finances |
|
3 |
5,407,941,950 |
4,221,590,446 |
|
| Liabilities
against assets |
|
|
|
| subject to
finance lease |
|
4 |
11,495,382 |
- |
|
| Deferred liabilities |
|
5 |
4,405,620 |
3,812,900 |
|
| |
5,592,218,870 |
4,393,779,264 |
|
| Current liabilities |
|
|
|
| Short term
borrowings |
|
6 |
146,040,486 |
76,607,678 |
|
| Current
portion of long term liabilities |
|
7 |
86,091,023 |
820,166,402 |
|
| Creditors,
accrued and other liabilities |
|
8 |
251,101,903 |
593,136,412 |
|
| |
483,233,412 |
1,489,910,492 |
|
| Contingencies
and commitments |
|
9 |
|
|
| Total equity
and liabilities |
|
6,895,271,182 |
6,960,558,282 |
|
| |
|
| The annexed
notes form an integral part of these financial statements. |
|
| |
|
| CHIEF
FINANCIAL OFFICER |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| Non Current Assets |
|
| Tangible fixed assets |
|
| Operating
fixed assets |
|
10 |
6,342,732,047 |
6,575,065,767 |
|
| Capital
work-in-progress |
|
11 |
24,723,272 |
26,785,070 |
|
| |
6,367,455,319 |
6,601,850,837 |
|
| |
|
|
| Long term deposits |
|
12 |
3,477,170 |
800,000 |
|
| Deferred cost |
|
13 |
35,118,788 |
48,105,980 |
|
| |
6,406,051,277 |
6,650,756,817 |
|
| Current assets |
|
|
|
| Stores and spares |
|
14 |
8,966,388 |
7,997,450 |
|
| Stock in trade |
|
15 |
47,946,433 |
48,702,941 |
|
| Trade debts |
|
16 |
350,631,710 |
155,666,753 |
|
| |
|
|
| Advances,
deposits, prepayments |
|
|
|
| and other receivables |
|
17 |
78,515,479 |
48,476,435 |
|
| Cash and
bank balances |
|
18 |
3,159,895 |
48,957,886 |
|
| |
489,219,905 |
309,801,465 |
|
| Total assets |
|
6,895,271,182 |
6,960,558,282 |
|
| |
|
| |
| DIRECTOR |
|
CHIEF EXECUTIVE |
|
| |
|
| PROFIT
AND LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED JUNE 30, 2002 |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| |
|
|
| Sales |
|
19 |
1,960,138,825 |
1,508,086,301 |
|
| Cost of sales |
|
20 |
(1,483,973,505) |
(1,087,068,539) |
|
| Gross profit |
|
476,165,320 |
421,017,762 |
|
| Operating expenses |
|
|
|
| Administrative
and general |
|
21 |
(49,367,620) |
(38,464,096) |
|
| Operating profit |
|
426,797,700 |
382,553,666 |
|
| Other income |
|
22 |
8,207,379 |
7,931,784 |
|
| |
435,005,079 |
390,485,450 |
|
| Financial
and other charges |
|
|
|
| Financial charges |
|
23 |
(603,603,580) |
(541,267,420) |
|
| Other charges |
|
24 |
(88,067,219) |
(36,395,425) |
|
| |
(691,670,799) |
(577,662,845) |
|
| |
|
|
| Net loss
before taxation |
|
(256,665,720) |
(187,177,395) |
|
| Provision
for taxation: |
|
|
|
| Current
taxation on other income |
|
(383,906) |
(386,795) |
|
| Net loss
after taxation |
|
(257,049,626) |
(187,564,190) |
|
| Accumulated
loss brought forward |
|
(255,131,474) |
(67,567,284) |
|
| Accumulated
Loss carried forward |
|
(512,181,100) |
(255,131,474) |
|
| Earnings per share |
|
25 |
(2) |
(1) |
|
| |
|
| The annexed
notes form an integral part of these financial statements. |
|
| |
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED JUNE 30, 2002 |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| |
|
| Net loss
before taxation |
|
(256,665,720) |
(187,177,395) |
|
| Adjustment for: |
|
|
|
| Depreciation |
|
234,321,403 |
230,050,399 |
|
| Loss on
disposal of fixed assets |
|
1,054,186 |
- |
|
| Provision for gratuity |
|
688,780 |
1,337,700 |
|
| Amortisation
of deferred cost |
|
12,987,192 |
12,987,192 |
|
| Financial charges |
|
603,603,580 |
541,267,420 |
|
| |
852,665,141 |
785,642,711 |
|
| |
|
|
| Operating
profit before working capital changes |
|
595,989,421 |
598,465,316 |
|
| Working
capital changes |
|
|
|
| Stores and spares |
|
(968,938) |
(7,997,450) |
|
| Stock in trade |
|
756,508 |
(25,325,879) |
|
| Trade debts |
|
(194,964,957) |
15,964,743 |
|
| Advances,
deposits, prepayments and other receivables |
|
(30,010,126) |
.
33,279,303 |
|
| Creditors,
accrued and other liabilities |
|
(3,290,822) |
(93,767,656) |
|
| |
(228,478,335) |
(77,846,939) |
|
| |
|
|
| Cash inflow
after working capital changes |
|
367,511,086 |
520,618,377 |
|
| Financial
charges paid |
|
(518,307,107) |
(642,677,160) |
|
| Gratuity paid |
|
(96,060) |
(70,000) |
|
| Income tax paid |
|
(412,824) |
(180,026) |
|
| Net cash
utilized in operating activities |
|
(151,304,905) |
(122,308,809) |
|
| CASH FLOW
FROM INVESTING ACTIVITIES |
|
|
|
| Fixed
capital expenditure |
|
(44,581,774) |
(43,890,838) |
|
| Proceed
from fixed assets sold and scrapped |
|
4,523,200 |
- |
|
| Long term deposits |
|
(2,677,170) |
- |
|
| Net cash
used in investing activities |
|
(42,735,744) |
(43,890,838) |
|
| CASH FLOW
FROM FINANCING ACTIVITIES |
|
|
|
| Long-term
loans / finances |
|
82,211,787 |
195,748,727 |
|
| Finance
against dishonoured bill (FADB) |
|
- |
(7,386,718) |
|
| Short term
borrowings |
|
69,432,809 |
(25,496,387) |
|
| Payment of
lease rentals - principal amount |
|
(3,401,938) |
(2,739,680) |
|
| Net cash
provided by financing activities |
|
148,242,658 |
160,125,942 |
|
| Net
decrease in cash and cash equivalents |
|
(45,797,991) |
(6,073,705) |
|
| Cash and
cash equivalents at the beginning of year |
|
48,957,886 |
55,031,591 |
|
| Cash and
cash equivalents at the end of year (Note -18) |
|
3,159,895 |
48,957,886 |
|
| |
|
| STATEMENT
OF CHANGES IN EQUITY |
|
| |
|
| FOR
THE YEAR ENDED JUNE 30, 2002 |
|
| |
|
| |
Share |
Accumulated |
Total |
|
| |
Capital |
Loss |
|
|
| |
Rupees |
Rupees |
Rupees |
|
| |
| Balance as
at July 01, 2000 |
1,332,000,000 |
(67,567,284) |
1,264,432,716 |
|
| |
|
|
| Net loss for the year |
|
- |
(187,564,190) |
(187,564,190) |
|
| |
|
|
| Balance as
at July 1, 2001 |
1,332,000,000 |
(255,131,474) |
1,076,868,526 |
|
| |
|
|
| Net loss for the year |
|
- |
(257,049,626) |
(257,049,626) |
|
| |
|
|
| Balance as
at June 30, 2002 |
1,332,000,000 |
(512,181,100) |
819,818,900 |
|
| |
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED JUNE 30, 2002 |
|
| |
|
| 1. THE COMPANY AND ITS OPERATIONS |
|
| Japan
Power Generation Limited is a public company, incorporated on September 29,
1994 under the |
|
| Companies
Ordinance, 1984 and its shares are quoted on Lahore and Karachi Stock
Exchanges. The principal |
|
| business
of the company is to generate and supply electric power to WAPDA. The company
commenced actual |
|
| commercial
operations w.e.f. March 15,2000. |
|
| |
|
| 2. SIGNIFICANT ACCOUNTING POLICIES |
|
| |
|
| 2.1 Basis of preparation |
|
| These
financial statements have been prepared, in all material respects, in
accordance with the |
|
| International
Accounting Standards .(IAS) as applicable in Pakistan and the requirements of
the |
|
| Companies
Ordinance, 1984. |
|
| |
|
| 2.2 Accounting convention |
|
| These
financial statements have been prepared under the historical cost convention
modified by |
|
| capitalization
of exchange differences referred to in note 2.9. |
|
| |
|
| 2.3 Staff retirement benefits |
|
| The
company operates an unfunded gratuity scheme covering all employees with
qualifying service |
|
| period
of six months. Consequential to the adoption of IAS 19 (Revised 2000),
Employees Benefits, |
|
| company
has changed its accounting policy and provision is now made annually to cover
the obligation |
|
| on
the basis of actuarial valuation which is charged to income currently. Such
scheme was previously |
|
| being
accounted for on the basis of current entitlement of employees on termination
basis. The most |
|
| recent
actuarial valuation was carried out as at June 30, 2002 using the Projected
Unit Credit Method. |
|
| (note-5).
Actuarial gains and losses are recognized in accordance with the
recommendations of the |
|
| actuary. |
|
| |
|
| Had
this change in the accounting policy not made, the loss for the year and the
accumulated loss would |
|
| have
increased by Rs. 443,060. |
|
| |
|
| 2.4 Taxation |
|
| The
company's profit and gains from power generation are exempt from tax under
clause 176 of the |
|
| Second
Schedule - Part I of the Income Tax Ordinance, 1979. The company is also
exempt from |
|
| minimum
tax on turnover under clause 20 of Part IV of the Second Schedule to the
Income Tax |
|
| Ordinance,
1979. Tax on income from sources not covered under the above clauses is
determined in |
|
| accordance
with the normal provisions of the Income Tax Ordinance, 1979. |
|
| |
|
| 2.5 Operating fixed assets and depreciation |
|
| Operating
fixed assets except land are stated at cost less accumulated depreciation.
Land and capital |
|
| work
in progress are stated at cost. Cost of certain fixed assets comprises of
historical cost and exchange |
|
| differences
referred to in note 2.9. |
|
| |
|
| Depreciation
on operating fixed assets is charged to profit on straight line method so as
to write off the |
|
| historical
cost of an asset over its estimated useful life at the annual rates mentioned
in note 10. The net |
|
| exchange
differences relating to an asset at the end of each year is amortized in
equal installments over its |
|
| remaining
useful life. Full year's depreciation is charged on additions during the
year, while no |
|
| depreciation
is charged on assets deleted during the year. |
|
| |
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major renewals
and |
|
| improvements
are capitalized. Gains and losses on disposal are taken to income. |
|
| |
|
| 2.6 Accounting for leased Assets |
|
| Assets
under finance lease are stated at lower of present value of minimum lease
payments under the lease |
|
| agreement
and the fair value of assets. Depreciation on these assets is charged
according to company's |
|
| |
|
| policy for
similar assets. |
|
| |
|
| The
aggregate amount of obligation relating to ass^s subject to finance lease is
accounted for at the net |
|
| |
|
| principal
liability underthe lease agreement. |
|
| |
|
| Finance
charges are allocated over the lease term so as to produce constant periodic
rate of return on the |
|
| |
|
| outstanding
principal liability for each period. |
|
| |
|
| 2.7 Stores, spares and stock in trade |
|
| These are
valued at lower of cost or net realizable value. Cost is calculated as
follows: |
|
| |
|
| Stores and spares |
|
Moving average |
|
| |
|
| Stock in trade |
|
| Residual
fuel oil (RFO) |
First in first out basis |
|
| High speed
diesel (HSD) |
Moving average |
|
| Lube oil |
|
Moving average |
|
| Chemicals
and other lubricants |
Moving average |
|
| |
|
| Items
in transit are valued at cost comprising invoice values plus other charges
incurred thereon. |
|
| 2.8
Deferred Cost |
|
| |
|
| Deferred
cost consists of expenses incurred in connection with the company's formation
and public issue |
|
| of
shares including brokerage and commission etc. These are being amortized over
a period of five years |
|
| starting
from March 15,2000, the date of commercial operations. |
|
| |
|
| 2.9 Foreign currency translation |
|
| Foreign
currency transactions are converted into Pak Rupees at the rates prevailing
on the date of |
|
| transaction.
Assets and liabilities in foreign currencies at the year-end are translated
into Pak Rupees |
|
| at
the rates of exchange prevailing at the balance sheet date. |
|
| Exchange
gains and losses on translation of foreign currency loans utilized for the
acquisition of fixed |
|
| assets
are capitalized and incorporated in the cost of such assets. All other
exchange differences are |
|
| charged to
income currently. |
|
| |
|
| 2.10
Financial instruments |
|
| |
|
| Recognition
and measurement |
|
| All
financial assets and liabilities are recognized at cost when the company
becomes a party to the |
|
| contractual
provisions of the instrument. Any gain or loss on subsequent re-measurement
to fair value of |
|
| financial
asset and financial liability is taken to profit and loss account on
occurrence. |
|
| |
|
| Offsetting
of financial assets and financial liabilities |
|
| A
financial asset and financial liability is offset against each other and the
net amount is reported in the |
|
| balance
sheet if the company has a legally enforceable right to set off the
recognized amount and intends |
|
| either to
settle on net basis or realize the asset and settle the liability
simultaneously. |
|
| |
|
| 2.11 Provisions |
|
| A
provision is recognized in the balance sheet when the company has a legal or
constructive obligation as |
|
| a
result of a past event; it is probable that an outflow ofeconom ic resources
embodying econom ic benefits |
|
| will be
required to settle the obligation and a reliable estimate can be made of the
amount of obligation. |
|
| |
|
| 2.12
Contingencies and commitments |
|
| Capital
commitments and contingencies, unless those are actual liabilities, are not
incorporated in the |
|
| accounts. |
|
| |
|
| 2.13
Revenue recognition |
|
| Energy
sale is recognized on transmission of electricity to WAPDA, whereas revenue
on account of |
|
| Capacity
Purchase Price is recognized when invoiced. Profit on bank deposits is
recognized on receipt |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| 3.
Long term loans / finances |
|
| Secured |
|
| Supplier's credit - |
|
| Plant and
machinery 3.1 |
|
1,371,614,070 |
2,110,219,255 |
|
| Syndicated loan I 3.2 |
|
|
|
| Banking companies |
|
|
|
| Prime
Commercial Bank Limited |
|
44,814,000 |
51,110,000 |
|
| National
Bank of Pakistan |
|
34,526,000 |
- |
|
| National
Development Finance Corporation (taken over by NBP) |
|
- |
39,376,000 |
|
| Askari
Commercial Bank Limited |
|
42,492,000 |
48,462,000 |
|
| Allied Bank
of Pakistan Limited |
|
21,232,000 |
24,216,000 |
|
| Faysal Bank Limited |
|
35,368,000 |
20,170,000 |
|
| PICIC
Commercial Bank Limited |
|
15,934,000 |
18,172,000 |
|
| Saudi Pak
Commercial Bank |
|
8,846,000 |
- |
|
| Prudential
Commercial Bank Limited (taken over by |
|
|
|
| Saudi Pak
Commercial Bank Limited) |
|
- |
10,090,000 |
|
| |
203,212,000 |
211,596,000 |
|
| |
|
|
| Non-banking
financial institutions |
|
| Al-Faysal
Investment Bank Limited |
|
| (taken over
by Faysal Bank Ltd) |
|
- |
20,170,000 |
|
| Prudential
Investment Bank Limited |
|
8,846,000 |
10,090,000 |
|
| Crescent
Investment Bank Limited |
|
7,086,000 |
8,082,000 |
|
| |
15,932,000 |
38,342,000 |
|
| |
219,144,000 |
249,938,000 |
|
| Syndicated
loan II 3.3 |
|
|
|
| Banking companies |
|
|
|
| Prime
Commercial Bank Limited |
|
697,678,012 |
472,920,788 |
|
| National
Bank of Pakistan |
|
553,790,744 |
- |
|
| National
Development Finance Corporation (taken over by NBP) |
|
- |
244,185,170 |
|
| Askari
Commercial Bank Limited |
|
664,728,404 |
448,262,459 |
|
| Allied Bank
of Pakistan Limited |
|
606,517,960 |
557,660,436 |
|
| Faysal Bank Limited |
|
553,361,969 |
186,624,613 |
|
| PICIC
Commercial Bank Limited |
|
249,368,402 |
168,195,758 |
|
| Prudential
Commercial Bank Limited (taken over by |
|
|
|
| Saudi Pak
Commercial Bank Limited) |
|
- |
60,918,820 |
|
| Suadi Pak
Commercial Bank Limited |
|
138,011,637 |
- |
|
| |
3,463,457,128 |
2,138,768,044 |
|
| |
|
|
| Non-banking
financial institutions |
|
| Al-Faysal
Investment Bank Limited (taken over by Faysal Bank Ltd.) |
- |
186,624,613 |
|
| Prudential
Investment Bank Limited |
|
54,246,557 |
39,034,141 |
|
| Crescent
Investment Bank Limited |
|
100,525,197 |
75,013,231 |
|
| Fidelity
Investment Bank Limited |
|
226,408,113 |
156,173,511 |
|
| |
381,179,867 |
456,845,496 |
|
| |
3,844,636,995 |
2,595,613,540 |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| Un-secured |
|
| Supplier's credit - |
|
| Power cable 3.4 |
|
55,292,857 |
84,693,277 |
|
| |
5,490,687,922 |
5,040,464,072 |
|
| Less:
Current portion shown undercurrent liabilities: |
|
|
|
| Overdue
installments 3(a) |
|
55,292,857 |
63,519,958 |
|
| Current maturity 3(b) |
|
27,453,115 |
755,353,668 |
|
| |
82,745,972 |
818,873,626 |
|
| |
5,407,941,950 |
4,221,590,446 |
|
| 3(a) Overdue
installments |
|
|
|
| Supplier's
credit - power cable |
|
55,292,857 |
63,519,958 |
|
| 3(b) Current maturity |
|
|
|
| Syndicated loan-I |
|
27,453,115 |
30,773,931 |
|
| Supplier's
credit - plant and machinery 3(c) |
|
- |
703,406,418 |
|
| Supplier's
credit - power cable |
|
- |
21,173,319 |
|
| |
27,453,115 |
755,353,668 |
|
| |
|
| 3(c) With the signing ofSFA II by the majority
of the syndicate banks, the installments due are payable by |
|
| the
syndicate and the company's current liability has been deferred till 31 -03
-2006 (Note 3.3). |
|
| |
|
| 3.1 Supplier's Credit-plant and machinery |
|
| The
supplier's credit was obtained in Japanese Yen from Toyota Tsusho (Singapore)
PTE Limited |
|
| (TTC)
amounting to Japanese Yen 7,428,600,000 representing 90% of the total value
of the plant and |
|
| machinery
whereas 10% of the total value of Japanese Yen 825,400,000 was paid in
advance as down |
|
| payment. |
|
| |
|
| The
credit carries an interest at the rate of 7.9% per annum and was repayable in
twelve equal half |
|
| yearly
instalments along with interest commencing from September 26, 1998. Financing
fee of |
|
| Japanese
Yen 737,535,552 was payable in twelve equal half yearly instalments
commencing from |
|
| September 26,1998. |
|
| |
|
| The
credit facility is secured by an irrevocable Letter of Credit established by
Allied Bank of |
|
| Pakistan
Limited (ABL) in favour of TTC. ABL is secured by a counter guarantee issued
by a |
|
| syndicate
of banks (Syndicate). |
|
| |
|
| With
the signing ofSFA II by the majority of the syndicate members all the
installments of supplier's |
|
| credit
will be paid by ABL on behalf of the Syndicate and the company's long term
liability shall be |
|
| shifted to
the Syndicate Banks (Note 3.3). |
|
| |
|
| The
Syndicate's counter guarantee is secured by a first equitable mortgage/charge
on all the present |
|
| and
future assets including equipment, inventories and receivables of the
company, personal |
|
| guarantees
of the sponsoring directors and pledge of sponsors' shares. |
|
| |
|
| 3.2 Syndicated Facility Agreement -1 |
|
| The
loan was obtained under markup arrangements to fund the cost overrun of the
project. In terms of |
|
| markup
arrangement the company has agreed to sell certain assets to the Syndicate
for Rs. |
|
| 253,900,000
and simultaneously agreed to buy back the same for Rs. 540,851,046. |
|
| |
|
| The
loan is secured by a first charge ranking pari passu on all present and
future assets including |
|
| equipment,
inventories and receivables of the company and personal guarantees of the
sponsoring |
|
| directors. |
|
| |
|
| According
to the rescheduling/restructuring agreement, signed by the company and
majority of the |
|
| Syndicate
banks, it shall be repayable in 20 quarterly installments commencing from May
31,2001 |
|
| and carries
mark up @ 12% p.a. |
|
| |
|
| 3.3 Syndicated Facility Agreement - II |
|
| This
facility under markup arrangements was created due to non-payment by the
company of |
|
| outstanding
installments of supplier's credit, financing fee and interest thereon as well
as the |
|
| repayment
of the remaining installments (Note 3.1). |
|
| |
|
| In
terms of markup arrangement the company has agreed to sell certain assets to
the Syndicate for so |
|
| much
of Rupees that are equivalent of Japanese Yen 8,166,135,552, utilized in
accordance with the |
|
| terms
of repayment of supplier's credit alongwith financing fee, and simultaneously
agreed to buy |
|
| back
the same assets for so much of Rupees that equates principal amount plus
markup @ 12% p.a. |
|
| on
the principal amount outstanding plus so much of mark up that accrued on the
amount outstanding |
|
| for the
period from 01 -07-2000 to 31 -12-2001. |
|
| |
|
| This
facility is secured by a first charge ranking pari passu on all present and
future assets including |
|
| equipment,
inventories and receivables of the company and personal guarantees of the
sponsoring |
|
| directors. |
|
| |
|
| According
to the rescheduling/restructuring agreement, signed by the company and
majority of the |
|
| Syndicate
Banks, it shall be repayable in 53 installments commencing from May 31,
2001. |
|
| Repayment
of the principal sum will start from March 31,2006. |
|
| |
|
| 3.4 Supplier's credit - power cable |
|
| This
credit was obtained from Toyota Tsusho Corporation, Japan amounting to US $
1,315,113 |
|
| against
the import of power cables. It is unsecured and carries interest @ 7 % per
annum with |
|
| additional
interest @ 7 % on delayed payments, and was repayable in eight equal
consecutive semi |
|
| annual
installments commencing from July 8,1998. |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| 4.
Liabilities against assets subject to finance lease |
|
| Opening balance |
|
1,292,776 |
4,032,456 |
|
| Add:
Finance obtained during the year |
|
16,949,595 |
- |
|
| Less: paid
during the year |
|
3,401,938 |
2,739,680 |
|
| |
14,840,433 |
1,292,776 |
|
| Less:
Current portion shown under current liabilities: |
|
|
|
| Installments
due within next twelve months |
|
3,345,051 |
1,292,776 |
|
| |
11,495,382 |
- |
|
| |
|
| 4.1 These represent finance leases entered
into with leasing companies for card. The company intends to |
|
| exercise
its option to purchase the asset on payment of last installment and
adjustment of residual |
|
| value
against lease key money. |
|
| |
|
| 4.2 These are secured by demand promisory
notes, personal guarantees of the directors and security |
|
| deposits (note-12). |
|
| |
|
| 4.3 Present value of minimum lease payments
has been discounted at an interest rate implicit in lease |
|
| which
equates to an interest rate of approximately 19% to 28% per annum. Repayments
are made |
|
| monthly
with an escalable clause for delay on payment ranging from Rs. 100 per day to
Rs. 1 per |
|
| thousand per day. |
|
| |
|
| 4.4 Repair and insurance cost shall be borne
by the lessee. The lease may be terminated by the lessee at |
|
| the
end of any completed year of lease after first year, whereby the lessee will
be required to pay |
|
| outstanding
principal plus the termination cost which may range from 0 ~ 5% of the
outstanding |
|
| balance. |
|
| |
|
| 4.5 The future minimum lease payments under
finance lease together with the present value of the |
|
| minimum
lease payments are as follows: |
|
| |
|
| |
2002 |
2001 |
|
| |
Minimum |
|
Minimum |
|
|
| |
lease |
Present |
lease |
Present |
|
| |
Payments |
values |
payments |
values |
|
| |
Rupees |
Rupees |
Rupees |
Rupees |
|
| |
|
|
| Within one year |
|
5,853,024 |
3,345,051 |
1,371,334 |
1,292,776 |
|
| After one
year but not more than |
|
|
| five years |
|
14,617,608 |
11,495,382 |
- |
- |
|
| Total
minimum lease payments |
20,470,632 |
14,840,433 |
1,371,334 |
1,292,776 |
|
| Less:
Amounts representing |
|
|
| financial charges |
|
5,630,199 |
- |
78,558 |
- |
|
| Present
value of minimum lease |
|
|
| payments |
|
14,840,433 |
14,840,433 |
1,292,776 |
1,292,776 |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| 5 Deferred Liability |
|
| Staff
Gratuity - defined benefits plan |
|
4,405,620 |
3,812,900 |
|
| |
|
|
|
| The
principal actuarial assumptions used in the valuation of this staff
retirement benefit as at June 30,2002 are |
|
| as follows: |
|
| |
|
| Discount rate |
|
11% per annum |
|
| Interest rate |
|
10%per annum |
|
| Average
expected remaining working life time of employees |
13 Years |
|
| |
|
| The amount
recognised in the balance sheet on this account as per IAS 19 is: |
|
| |
|
| Present
value of defined benefit obligation |
|
3,121,650 |
|
| Add:
benefit payable before application of IAS 19 |
|
1,224,900 |
|
| Actuarial
gains not yet recognised |
|
59,070 |
|
| |
4,405,620 |
|
| |
|
| Movement
during the year in the net liability recognised in the balance sheet is: |
|
| |
|
|
|
| Opening net liability |
|
3,812,900 |
2,545,200 |
|
| Add:
expense recognised |
|
688,780 |
1,337,700 |
|
| |
4,501,680 |
3,882,900 |
|
| Less: paid
during the year |
|
96,060 |
70,000 |
|
| Closing net liability |
|
4,405,620 |
3,812,900 |
|
| |
|
|
|
| The
actuarial expense recognised in the profit and loss account is: |
|
|
|
| Current service cost |
|
924,784 |
- |
|
| Interest cost |
|
233,081 |
- |
|
| Asset
charged due to application of IAS-19 |
|
(469,085) |
- |
|
| |
688,780 |
- |
|
| |
|
| 5.1 Actuarial valuation was carried out for
the first time, so the corresponding figures of the prior |
|
| period are
not provided. |
|
| |
|
| 6. Short
term borrowings |
|
| These
borrowings are obtained from: |
|
| |
| Name of Lenders |
|
Sanctioned Limit |
Disbursed |
Amount |
|
| |
|
2002 |
2001 |
|
| Banking Companies |
|
Rupees |
Rupees |
Rupees |
|
| |
|
|
| Prime Commercial Bank Ltd |
6.1 |
40,000,000 |
21,764,876 |
6,056,977 |
|
| Prime Commercial Bank Ltd |
6.2 |
90,000,000 |
84,805,610 |
- |
|
| Askari
Commercial Bank Ltd |
10,811,850 |
- |
10,811,850 |
|
| Allied Bank of Pakistan Ltd |
6.1 |
39,470,000 |
39,470,000 |
44,873,000 |
|
| Faysal Bank Limited |
|
4,501,286 |
- |
4,501,286 |
|
| Gulf
Commercial Bank Limited |
4,054,000 |
- |
4,054,000 |
|
| Non-banking
financial institutions |
|
|
| Al-Faysal
Investment Bank Ltd. |
4,501,286 |
- |
4,501,286 |
|
| Crescent
Investment Bank Ltd. |
1,809,279 |
- |
1,809,279 |
|
| |
195,147,701 |
146,040,486 |
76,607,678 |
|
| |
|
| 6.1 These borrowing are secured by a first
charge ranking pari passu on all present and future assets |
|
| including
equipment, inventories and receivables of the company and personal guarantees
of the |
|
| sponsoring
directors and carry mark up @ 12% per annum. |
|
| |
|
| 6.2 This running finance facility has been
obtained to finance the purchase of heavy furnace oil (HFO) |
|
| which
is secured by a lien over PAK rupee deposit, arranged from a private source
and by a |
|
| hypothecation
charge over movable assets of the company. It carries mark up at the
effective rate of |
|
| 26-27% per annum. |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| 7.
Current portion of long-term liabilities |
|
| Long term
loans / finances |
|
3 |
82,745,972 |
818,873,626 |
|
| Liabilities
against assets subject to finance lease |
4 |
3,345,051 |
1,292,776 |
|
| |
86,091,023 |
820,166,402 |
|
| 8.
Creditors, accrued and other liabilities |
|
|
|
| Creditors |
|
38,526,313 |
77,676,104 |
|
| Accrued liabilities |
|
4,935,276 |
4,351,035 |
|
| Provision
for sales tax |
|
2,238,036 |
2,238,036 |
|
| Infrastructure
tax payable |
|
4,396,800 |
4,396,800 |
|
| Interest /
mark up'payable on secured borrowings |
|
77,601,819 |
303,708,996 |
|
| Interest /
mark up payable on unsecured borrowings |
|
2,013,449 |
17,671,811 |
|
| Guarantee
commission payable |
|
5,530,273 |
83,112,185 |
|
| Penalty for
delay on payment of long-term borrowings and |
|
|
|
| guarantee
commission |
|
46,956,471 |
66,352,708 |
|
| Liquidated damages |
|
67,077,806 |
6,718,301 |
|
| Retention money |
|
1,725,660 |
25,297,874 |
|
| Other liabilities |
|
- |
1,612,562 |
|
| |
251,101,903 |
593,136,412 |
|
| |
|
| 9. Contingencies and commitments |
|
| Contingencies: |
|
| 9.1 The company has the following contingent
liabilities/assets in case ofWAPDA: |
|
| |
|
| a) A bill of Rs. 5,575,286 had been raised
by WAPDA in the previous year being interest for |
|
| delayed
payment of liquidated damages; the company has not only challenged the levy
of |
|
| interest
but also the amount of liquidated damages paid and is confident that the
matter will |
|
| be
settled in its favour. Accordingly, the amount of this bill has not been
recognised in these |
|
| accounts.
It is expected that the reconciliation will be completed by middle of
November |
|
| 2002 |
|
| |
|
| b) Amounts totalling Rs. 4.28 million
included in trade debts (note-16) are disputed by |
|
| WAPDA
due to different meter reading formulae used by WAPDA and the company.
The |
|
| management's
contention is that formula adopted by it is most appropriate and by |
|
| discussions/negotiations
its contention would prevail. Accordingly, no provision against |
|
| these debts
has been recognized in these accounts. |
|
| |
|
| c) The provisions of section 9.7(e) of
Power Purchase Agreement (PPA) stipulate that any late |
|
| payment
of invoice amount by WAPDA shall bear markup equal to base rate (SBP
Repo |
|
| rate)
plus 2% per annum compounded semi-annually. Consequently the company has |
|
| claimed
mark up of amounting to Rs. 9,868,119 from WAPDA during the year. The
matter |
|
| is
under discussions between the parties and its outcome cannot be determined
with |
|
| certainty
at this point of time, hence, the accrual of markup has not been recognized
in these |
|
| accounts. |
|
| |
|
| 9.2 The Deputy Commissioner of Income Tax
(DCIT) imposed certain penalties / additional tax |
|
| amounting
to Rs. 8,451,549 on account ofnon / delayed payments of income tax demands
for the |
|
| assessment
years 1997-98 and 1998-99. The company considered these levies as arbitrary
and |
|
| accordingly
filed appeals at the appropriate forums; the final outcome of which is
pending |
|
| adjudication.
These liabilities, however, have been fully paid and incorporated in
these |
|
| accounts. |
|
| |
|
| Commitments: |
|
| |
|
| 9.3 Commitments under the letters of credit
other than capital expenditure at the year end were |
|
| equivalent
to Rs. 4,888,602 (2001: Nil). |
|
| |
|
| 9.4 Commitments of capital expenditure at
end of the year amounted to Rs. Nil (2001:Rs.2,500,000). |
|
| |
|
| 10.
Operating fixed assets |
|
| |
|
| |
COST |
DEPRECIATION |
|
| |
Book value |
| PARTICULARS |
|
As at July 1,2001 |
Additions |
Deletions |
As at June 30,2002 |
Rate (%) |
As at July 01, 2001 |
Deletion |
Charge for the year |
As at June 30,2002 |
as at June, 30,2002 |
| |
|
|
|
|
|
| Owned |
|
|
| |
|
| Land - freehold |
|
16,046,645 |
932,000 |
- |
16.978,645 |
|
16,978,645 |
| Buildings
and civil works |
354,564,231 |
10,713,994 |
- |
365,278,225 |
3,3-3.57 |
15,113,301 |
- |
12,083,109 |
27,196,410 |
338,081,815 |
| Plant and machinery |
|
6,459,551,676 |
31,213,248 |
(56,028,098) |
6,434,737 |
3.3-3.57 |
274,392,704 |
- |
214.465,555 |
488,858,259 |
5,945,878,567 |
| Workshop
equipment |
16,081,888 |
- |
- |
16.081,888 |
10 |
1,608,189 |
- |
1,608,189 |
3,216,378 |
12,865,510 |
| Weigh Bridge |
|
1,175,000 |
- |
- |
1,175,000 |
10 |
117,500 |
- |
117,500 |
235,000 |
940,000 |
| Furniture and fixtures |
|
1,488,767 |
287,730 |
- |
1,776,497 |
10 |
187,666 |
- |
177,650 |
365,316 |
1,411 |
| Electric installations |
|
1,044,443 |
393,897 |
- |
1,438,340 |
10 |
128,449 |
• |
143,834 |
272,283 |
1,166,057 |
| Office equipment |
|
995,263 |
271,640 |
39 |
1,228,403 |
10 |
127,817 |
4,973 |
122,840 |
245,684 |
982,719 |
| Computers |
|
1,207,365 |
424,955 |
7 |
1,626 |
30 |
142,905 |
680 |
487,656 |
629,881 |
995,639 |
| Tubewell |
|
1,723,760 |
- |
- |
1.723.760 |
10 |
222,652 |
- |
172,376 |
395,028 |
1,328,732 |
| Railways sidings |
|
6,650,000 |
- |
- |
6,650,000 |
10 |
858,958 |
. |
665,000 |
1,523,958 |
5,126,042 |
| Vehicles |
|
4,411,881 |
1,809,608 |
2,766,615 |
3,544,874 |
20 |
1,135,740 |
714,709 |
708,975 |
1,130,006 |
2,414,868 |
| |
|
| Leased |
|
|
| Office premises |
|
775,000 |
' |
' - |
775,000 |
10 |
100,104 |
- |
77,500 |
177,604 |
597,396 |
| Vehicle |
|
4,700,000 |
17,456,095 |
4,700,000 |
17,456,095 |
20 |
1,214,167 |
1,214,167 |
3,491,219 |
3,491,219 |
13,964,876 |
| |
|
| Rupees 2002 |
|
6,870,415,919 |
63,593,167 |
63,540,013 |
6,870,469,073 |
|
295,350,152 |
1,934,529 |
234,321,403 |
527,737,026 |
6,342,732,047 |
| |
|
| Rupees 2001 |
|
6,728,213,244 |
142,202,675 |
- |
6,870,416 |
|
65,299,753 |
- |
230,050 |
295,350,152 |
6,575,065,767 |
| |
|
|
| 10.1 Deletion to plant and machinery
represents exchange gain on the foreign currency loans utilized for the
acquisition of lant and machinery |
|
| (2001:
exchange loss, Rs. 124,024,407) |
|
| |
|
| |
2002 |
2001 |
|
| |
Rupees |
Rupees |
|
| 10.2 The
depreciation charge for the year has been allocated to: |
|
| Cost of sales |
229,111,729 |
227,676,939 |
|
| Administrative & general expenses |
5,209,674 |
2,373,460 |
|
| |
234,321,403 |
230,050,399 |
|
| |
|
| 10.2 The company has changed the depreciation
rate on computers from 10% to 30%. The company believes that the changed rate
ts more reflective of |
|
| the
useful life of these assets. Had this change in accounting estimate not made,
for the year and accumulated loss would have been lower by |
|
| Rs. 325,104. |
|
| |
|
| 10.3 The detail of fixed assets disposed of
during the year are as follows: |
|
| |
|
| Description |
|
Accumulated |
Book |
Sale |
Profit/ |
Mode of |
|
|
| |
Cost |
Depreciation |
Value |
Proceeds |
(Loss) |
Sale |
Sold to |
|
| Vehicle |
|
| Honda Motor cycle |
45,000 |
11,625 |
33,375 |
14,200 |
(19,175) |
Negotiation |
Mr. Muhammad Tufail, inside |
|
| |
|
|
Lahori Gate Lahore |
|
| |
|
|
| Toyota Land Cruiser |
4,700,000 |
1,214,167 |
3,485,833 |
3,200,000 |
(285,833) |
Negotiation |
Mr. Rashid Iqbal Nadeem, |
|
| |
|
|
60-H, Gulberg, Lahore. |
|
| |
|
|
| BMW Saloon |
2,721,615 |
703,084 |
2,018,531 |
1,300,000 |
(718,531) |
Negotiation |
Mr. M. Aqil Sultan, 106-L, |
|
| |
|
|
DHA, Lahore. |
|
| |
7,466,615 |
1,928,876 |
5,537,739 |
4,514,200 |
(1,023,539) |
|
| Office equipment |
|
|
| |
|
|
| Fax Machine |
38,500 |
4,937 |
33,527 |
6,000 |
(25,527) |
Negotiation |
Office Products Marketing, Lahore. |
|
| |
|
|
| Computers |
|
|
| Monitor |
6,800 |
680 |
6,120 |
3,000 |
(3,120) |
Negotiation |
Zit International, Lahore. |
|
| |
|
|
|
|
|
|
| Rupees 2002 |
7,511,915 |
1,934,529 |
5,577,386 |
4,523,200 |
(1,054,186) |
|
| |
|
|
| Rupees 2001 |
- |
- |
- |
- |
- |
|
| |
|
|
| |
|
2002 |
2001 |
|
| Note |
|
Note |
Rupees |
Rupees |
|
| 11. Capital
work in progress |
|
| This comprise of: |
|
| Civil work |
|
200,697 |
7,229,870 |
|
| Plant and machinery |
|
23,450,075 |
18,482,700 |
|
| Advance for land |
|
1,072,500 |
1,072,500 |
|
| |
24,723,272 |
26,785,070 |
|
| 12.
Long term deposits |
|
|
|
| Security
deposits with : |
|
|
|
| Leasing companies |
|
2,677,170 |
470,000 |
|
| Central
Depository Company (CDC) |
|
800,000 |
800,000 |
|
| |
3,477,170 |
1,270,000 |
|
| Less:
current portion shown under assets (Note - 17) |
|
- |
470,000 |
|
| |
3,477,170 |
800,000 |
|
| 13. Deferred cost |
|
|
|
| Balance at July 01, |
|
48,105,980 |
61,093,172 |
|
| Less:
Amortised during the year |
|
12,987,192 |
12,987,192 |
|
| |
35,118,788 |
48,105,980 |
|
| 14.
Stores and spares |
|
|
|
| Stores |
|
- |
184,781 |
|
| Spares |
|
8,966,388 |
7,812,669 |
|
| |
8,966,388 |
7,997,450 |
|
| The Company
does not hold any stores and spares for specific capitalization. |
|
|
| |
|
|
| 15. Stock in trade |
|
|
|
| Residual
fuel oil (RFO)( including in transit Rs. 6,321,907 ( 2001: Nil )) |
38,126,840 |
25,442,251 |
|
| High speed
diesel (HSD) |
|
1,441,253 |
2,765,799 |
|
| Lube oil |
|
6,980,218 |
18,862,480 |
|
| Chemicals
and other lubricants |
|
1,398,122 |
1,632,411 |
|
| |
47,946,433 |
48,702,941 |
|
| 16.
Trade debts - considered good |
|
350,631,710 |
155,666,753 |
|
| These are
receivable from WAPDA and are fully secured. |
|
|
|
| |
|
|
| 17.
Advances, deposits, prepayments and other receivables |
|
|
|
| Advances
- considered good |
|
|
|
| To directors 17.1 |
|
482,108 |
- |
|
| To executives 17.2 |
|
453,300 |
- |
|
| To employees |
|
210,180 |
355,950 |
|
| For expenses |
|
761,083 |
104,853 |
|
| To suppliers |
|
1,148,299 |
466,373 |
|
| To Pakistan
State Oil Co. Ltd. (PSO) |
|
31,818,104 |
22,814,398 |
|
| Income tax |
|
200,429 |
171,511 |
|
| To Others |
|
38,646 |
- |
|
| |
35,112,549 |
23,913,085 |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| Deposits . . |
|
| Current
portion of long term deposits (Note-12) |
|
- |
470,000 |
|
| Letters of
credit margin |
|
2,688,971 |
- |
|
| Others |
|
118,856 |
112,856 |
|
| |
2,807,827 |
582,856 |
|
| Prepayments |
|
29,569,959 |
14,972,545 |
|
| Other receivables |
|
|
|
| Claims receivable |
|
2,733,381 |
1,715,554 |
|
| Sales tax recoverable |
|
6,551,379 |
5,552,011 |
|
| Others |
|
1,740,384 |
1,740,384 |
|
| |
11,025,144 |
9,007,949 |
|
| |
78,515,479 |
48,476,436 |
|
| |
|
| 17.1 The maximum aggregated amount of advances
due from directors at the end of any month during the |
|
| yearwasRs,
582,108 (2001: Nil). |
|
| |
|
| 17.2 The maximum Aggregated amount of advances
due from executives at the end of any month during |
|
| the year
was Rs. 489,300 (2001: Rs. 262,500). |
|
| |
|
| 18. Cash
and bank balances |
|
| Cash in hand |
|
11,649 |
28,236 |
|
| Cash with banks : |
|
|
|
| In current accounts |
|
917,010 |
25,030,679 |
|
| In saving accounts |
|
2,231,236 |
23,898,971 |
|
| |
3,148,246 |
48,929,650 |
|
| |
3,159,895 |
48,957,886 |
|
| 19. Sales |
|
|
|
| Energy payments |
|
1,098,617,341 |
707,636,812 |
|
| Capacity payments |
|
861,521,484 |
800,449,489 |
|
| |
1,960,138,825 |
1,508,086,301 |
|
| 20. Cost of Sales |
|
|
|
| Fuels and
oils consumed |
|
1,137,942,169 |
759,081,285 |
|
| Salaries,
wages, and benefits 20.1 |
|
6,441,727 |
5,399,952 |
|
| Operating
and maintenance fee |
|
61,341,791 |
50,014,753 |
|
| Stores and
spares consumed |
|
3,955,997 |
8,387,157 |
|
| Electricity
consumed in house |
|
3,836,580 |
5,563,288 |
|
| Communication
charges |
|
2,724,480 |
3,013,512 |
|
| Repair and
maintenance |
|
3,912,004 |
2,857,941 |
|
| Insurance |
|
34,707,028 |
25,073,712 |
|
| Depreciation 10.2 |
|
229,111,729 |
227,676,939 |
|
| |
1,483,973,505 |
1,087,068,539 |
|
| |
|
| 20.1
Salaries, wages and benefits include Rs.100,843 (2001: Rs. 803,200) in
respect of staff gratuity. |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| 21.
Administration and general expenses |
|
| Directors,
remuneration |
|
11,027,571 |
7,200,000 |
|
| Salaries,
wages, and benefits |
|
21.1 |
11,287,382 |
9,328,450 |
|
| Plant
security services |
|
2,115,188 |
1,718,157 |
|
| Staff transportation |
|
2,861,663 |
3,048,756 |
|
| Travelling
and conveyance |
|
2,002,596 |
1,238,383 |
|
| Rent, rates and taxes |
|
375,432 |
338,455 |
|
| Postage and telegram |
|
165,459 |
80,287 |
|
| Electricity
and utility charges |
|
238,713 |
278,643 |
|
| Telephone and telex |
|
2,608,760 |
1,511,688 |
|
| Printing
and stationery |
|
798,655 |
794,272 |
|
| Vehicle
running and maintenance |
|
2,664,628 |
1,676,859 |
|
| Entertainment |
|
996,534 |
784,835 |
|
| Newspapers
and periodicals |
|
16,551 |
14,603 |
|
| Legal,
professional and consultancy charges |
21.2 |
3,803,482 |
4,906,786 |
|
| Fee and subscription |
|
274,242 |
292,896 |
|
| Auditors'
remuneration |
|
21.3 |
525,000 |
425,000 |
|
| Charity and donation |
|
21.4 |
18,500 |
50,000 |
|
| Advertisement |
|
172,092 |
327,979 |
|
| Insurance |
|
636,849 |
204,358 |
|
| Repair and
maintenance |
|
1,392,259 |
1,772,117 |
|
| Miscellaneous |
|
176,390 |
98,112 |
|
| Depreciation |
|
10.2 |
5,209,674 |
2,373,460 |
|
| |
49,367,620 |
38,464,096 |
|
| |
|
| 21.1 Salaries, wages and benefits included Rs.
587,935 (2001: Rs. 534,500) in respect of staff |
|
| |
|
| gratuity. |
|
| |
|
| 21.2 It includes retainership fee ofRs.
225,000 per month (2001: Rs. 225,000 per month) to Haseeb Khan |
|
| & Co.
CharteredAccountants, whose proprietor is also a director in the company. |
|
| |
|
| 21.3 Auditors' remuneration |
|
| |
|
| |
2002 |
2002 |
2001 |
2001 |
|
| |
Rupees |
Rupees |
Rupees |
Rupees |
|
| |
Hyder Bhiniji |
Javaid Jalal |
Hyder Bhimji |
Javaid Jalal |
|
| |
&Co. |
Amjad & Co. |
&Co. |
Amjad & Co |
|
| |
| Audit fee |
|
175,000 |
175,000 |
175,000 |
175,000 |
|
| Review engagement |
|
5,000 |
5,000 |
- |
- |
|
| Out of
pocket expenses |
37,500 |
37,500 |
37,500 |
37,500 |
|
| |
262,500 |
262,500 |
212,500 |
212,500 |
|
| |
|
| 21.4 None
of the directors or their spouses have any interest in the funds of the
donees. |
|
| |
|
| 22. Other Income |
|
| Interest on
bank deposits |
|
1,762,426 |
4,221,798 |
|
| Sale of scrap / sludge |
|
5,316,358 |
3,709,986 |
|
| Exchange gain |
|
1,128,595 |
- |
|
| |
8,207,379 |
7,931,784 |
|
| |
|
| |
|
2002 |
2001 |
|
| |
Note |
Rupees |
Rupees |
|
| 23. Financial charges |
|
| Interest / mark up on: |
|
| Long term
loans / finances |
|
553,962,563 |
485,560,602 |
|
| Short term
borrowings |
|
15,254,106 |
12,611,147 |
|
| Lease finance |
|
3,312,161 |
936,765 |
|
| Guarantee
commission |
|
27,102,704 |
37,309,924 |
|
| Bank fee
and other charges |
|
3,972,046 |
4,848,982 |
|
| |
603,603,580 |
541,267,420 |
|
| 24. Other Charges |
|
|
|
| Liquidated damages |
|
74,025,841 |
23,408,233 |
|
| Deferred
cost amortized |
|
12,987,192 |
12,987,192 |
|
| Loss on
sale of fixed assets |
|
10.4 |
1,054,186 |
- |
|
| |
88,067,219 |
36,395,425 |
|
| 25. Earnings
per share |
|
|
|
| Basic |
|
|
|
| Net loss for the year |
|
(257,049,626) |
(187,564,190) |
|
| Weighted
average number of ordinary shares |
|
133,200,000 |
133,200,000 |
|
| Basic
earning per share |
|
(2) |
(1) |
|
| 26. Plant
capacity and actual production |
|
|
|
| Installed
annual capacity in MWH |
|
937,320 |
937,320 |
|
| Actual
energy delivered in MWH |
|
430,058 |
281,544 |
|
| |
|
| Utilisation
of available capacity depends on the load demands by WAPDA. |
|
| |
|
| 27. Financial assets and liabilities |
|
| |
|
| Interest
rate sensitivity nosition based on the earlier of contractual renricine or
maturitv date is as follow |
|
| |
| |
2002 (Rupees) |
|
| |
|
| |
|
Interest / markup bearing |
|
Non - Interest bearing |
|
|
| Financial assets |
|
|
|
| |
Maturity |
Maturity |
Sub |
Maturity |
Maturity |
Sub |
|
|
| |
upto one |
after one |
total |
upto one |
after one |
total |
Total |
|
| |
Year |
year |
|
year |
year |
|
|
| |
|
|
| Long term deposits |
|
. |
- |
- |
. |
3.477,170 |
3,477,170 |
3,477,170 |
|
| Trade debts |
|
350,631,710 |
- |
350,631,710 |
- |
- |
- |
350,631,710 |
|
| Advances, deposits, |
|
|
|
| prepayments
and other receivables |
- |
- |
- |
7,281,592 |
- |
7,281,592 |
7,281,592 |
|
| Cash and
bank balances |
2,231,236 |
- |
2,231,236 |
928,659 |
' |
928,659 |
3,159,895 |
|
| Claims
receivable not recogniseed |
|
|
| in the books |
|
- |
•- |
- |
9,868,119 |
- |
9,868,119 |
9,868,119 |
|
| |
352,862,946 |
. |
352,862,946 |
18,078,370 |
3,477,170 |
21,555,540 |
374,418,486 |
|
| Financial liabilities |
|
|
|
| Long term loans |
|
|
|
| -Secured |
|
27,453,115 |
5,407,941,950 |
5,435,395,065 |
- |
. - |
- |
5,435,395,065 |
|
| -Unsecured |
|
55,292,857 |
- |
55,292,857 |
- |
- |
• |
55,292,857 |
|
| Sponsors" loan |
|
- |
- |
- |
- |
168,375,918 |
168,375,918 |
168,375,918 |
|
| Liabilities
against assets subject to |
|
|
| finance lease |
|
3,345,051 |
11,495,382 |
14,840,433 |
- |
- |
- |
14,840,433 |
|
| Short term
borrowings |
146,040,486 |
- |
146,040,486 |
- |
- |
- |
146,040,486 |
|
| Creditors,
accrued and other liabilities |
67,077,806 |
- |
67,077,806 |
177,389,261 |
- |
177,389,261 |
244,467,067 |
|
| Letters of
credit at Sight |
4,888,602 |
- |
4,888,602 |
. |
- |
- |
4,888,602 |
|
| Claims not
acknowledged as dept |
|
|
| -Mark up on
Liquidated damages |
- |
- |
- |
5,575 |
- |
5,575 |
5,575,286 |
|
| |
304,097,917 |
5,419,437,332 |
5,723,535,249 |
182,964,547 |
168,375,918 |
351,340,465 |
6,074,875,714 |
|
| |
|
|
| |
2001 (Rupees) |
|
| |
|
|
| |
|
Interest / markup bearing |
|
Non - Interest bearing |
|
|
| |
|
|
| Financial assets |
|
Maturity |
Maturity |
Sub |
Maturity |
Maturity |
Sub |
|
|
| |
upto one |
after one |
total |
upto one |
after one |
total |
Total |
|
| |
Year |
year |
|
year |
year |
|
|
| |
| Long term deposits |
|
. |
' |
- |
470,000 |
800,000 |
1,270,000 |
1,270,000 |
|
| Trade debts |
|
155,666,753 |
- |
155,666,753 |
- |
- |
- |
155,666,753 |
|
| Advances, deposits, |
|
|
|
| prepayments
and other receivable |
- |
- |
- |
4,038,794 |
- |
4,038,794 |
4,038,794 |
|
| Cash and
bank balances |
23,898,971 |
- |
23,898,971 |
25,058,915 |
- |
.
25,058,915 |
48,957,886 |
|
| |
179,565,724 |
- |
179,565,724 |
29,567,709 |
800,000 |
30,367,709 |
209,933,433 |
|
| Financial liabilities |
|
|
|
| Long term loans |
|
|
|
| -Secured |
|
755,353,668 |
4,200,417,127 |
4,955,770,795 |
- |
- |
- |
4,955,770,795 |
|
| -Unsecured |
|
63,519,958 |
21,173,319 |
84,693,277 |
- |
- |
- |
84,693,277 |
|
| Sponsors' loan |
|
- |
- |
- |
- |
168,375,918 |
168,375,918 |
168,375,918 |
|
| Liabilities
against assets subject to |
- |
- |
- |
- |
- |
- |
- |
|
| finance lease |
|
1,292,776 |
- |
1,292,776 |
- |
' |
- |
1,292,776 |
|
| Short term
borrowings |
76,607,678 |
- |
76,607,678 |
- |
- |
- |
76,608 |
|
| Creditors,
accrued and other liabilities |
6,718,301 |
- |
6,718,301 |
579,783,275 |
- |
579,783,275 |
586,501,576 |
|
| Claims not
acknowledged as dept |
|
|
| -Mark up on
Liquidated damages |
- |
. |
- |
5,575,286 |
- |
5.575,286 |
5,575 |
|
| |
903,492,381 |
4,221,590,446 |
5,125,082,827 |
585,358,561 |
168,375,918 |
.
753,734,479 |
5,878,817,306 |
|
| |
|
|
|
| 27.1 Interest rate risk |
|
| |
|
| Interest
rate risk is the risk that the value of financial instruments will fluctuate
due to change in |
|
| market
interest rates. The effective interest rates as at June 30, 2002 for
financial instruments are |
|
| given
in the relevant notes except trade debts, liquidated damages, deposits in PLS
accounts for |
|
| which
effective rate is eiven: |
|
| |
|
| |
2002 |
2001 |
|
| Trade
debts-interest charged after |
|
|
|
| 25 days of
the invoice delivered to |
|
2% above Repo rate |
2% above Repo rate |
|
| WAPDA |
|
|
|
| Liquidated
damages-interest is payable |
|
|
|
| after 25
days of invoice received from |
|
2% above Repo rate |
2% above Repo rate |
|
| WAPDA |
|
| Deposits in PLS accounts |
As determined by the bank |
As determined by the bank |
|
| |
|
| 27.2 Credit risk and concentration of credit
risk |
|
| |
|
| Credit
risk represents the accounting loss that would be recognized at the reporting
date if counter |
|
| parties
failed completely to perform as contracted. Out of total financial assets
ofRs. 374,418,486 |
|
| (2001:
Rs. 209,933,433), the financial assets which are subject to credit risk
amount to Rs. |
|
| 374,406,837
(2001: Rs. 209,905,197). The company believes that it is not exposed to
major |
|
| concentration
of credit risk due to counter guarantees given by the Government of Pakistan
in respect |
|
| ofreceivable
from WAPDA. |
|
| |
|
| 27.3 Foreign exchange risk management |
|
| |
|
| Foreign
exchange risk arises mainly where receivables and payables exist due to
transactions with |
|
| foreign
undertakings. Out of total payables of Rs. 1,476,829,665 (2001: Rs.
2,317,103,063) in |
|
| foreign
currency, the payable exposed to foreign exchange risk amounts to Rs.
79,501,406(2001: |
|
| Rs. 167,322,697). |
|
| |
| |
|
| 27.4 Fair value of financial instruments |
|
| |
|
| The
carrying values of all financial assets and financial liabilities reflected
in the financial statements |
|
| approximates
to their fair values. |
|
| |
|
| |
| 28.
Numberofemployees |
|
2002 |
2001 |
|
| Number
ofemp loyees at the year end was |
|
| |
|
122 |
98 |
|
| 29. Remuneration of Chief executive,
directors and executives |
|
| |
|
| The
aggregated amounts charged in the accounts for the year for remuneration,
including benefits to chief |
|
| executive,
directors and executives of the company are as follows: |
|
| |
|
| |
Chief Executive |
Directors |
Executive |
|
| |
2002 |
2001 |
2002 |
2001 |
2002 |
2001 |
|
| |
| No. ofpersons |
|
1 |
1 |
4 |
4 |
20 |
15 |
|
| |
| Managerial
remuneration |
3,594,283 |
2,408,639 |
4,444,118 |
3,062,148 |
6,265,067 |
4,174,984 |
|
| House rent |
|
- |
- |
- |
- |
438,427 |
238,827 |
|
| Utilities |
|
359,428 |
240,864 |
444,411 |
306,212 |
626,509 |
417,497 |
|
| Gratuity |
|
- |
- |
- |
- |
703,130 |
513,600 |
|
| Other benefits |
|
1,110,074 |
665,497 |
1,075,257 |
516,640 |
1,471,719 |
1,388,891 |
|
| |
|
|
| Total-Rupees |
|
5,063,785 |
3,315,000 |
5,963,786 |
3,885,500 |
9,504,852 |
6,733,799 |
|
| |
|
| 29.1 Board meeting fee has not been paid to
the directors of the company, (2001: Nil). |
|
| |
|
| 29.2 Company maintained vehicles are provided
to the chief executive and four directors. |
|
| |
|
| 30 Environmental risk exposure |
|
| |
|
| The company
is fully complaint with the environmental regulations. |
|
| |
|
| 31. Date of Authorization |
|
| |
|
| These
financial statements were authorized for issue on September 30,2002 in
accordance with the resolution |
|
| of the
Board of Directors. |
|
| |
|
| 31
General |
|
| |
|
| 31.1 Previous year's figures have been
rearranged and reclassified where necessary for the purposes of |
|
| comparison.
Major rearrangements/reclassifications are as under: |
|
| |
|
| Note |
Reclassification |
|
|
| |
From |
|
To |
|
— Nature |
|
Rupees |
|
| 8 |
Accrued liabilities |
|
Provision for sales tax |
To separately disclose government
dues. |
|
2,238,036 |
|
| 8 |
Accrued liabilities |
|
Infrastructure tax payable |
To separately disclose government
dues. |
|
4,396,800 |
|
| 10 |
Office equipment |
|
Computers |
|
To make depreciation charge on |
|
1,207,365 |
|
| |
|
computers in line with general practice. |
|
| 10 |
Furniture and fixtures |
|
Electronic installations |
For better presentation purposes. |
|
1,044,443 |
|
| 12 |
Security deposit with Central
Depository Company - CDC |
Long term deposits |
|
To properly segregate the short and
long term deposits. |
800,000 |
|
| 17 |
Other receivables |
|
Sales tax receivable |
|
To separately disclose government
dues. |
|
5,552,011 |
|
| |
Advances - others |
|
Advances to suppliers |
This figure needed separate
disclosure |
|
466,373 |
|
| 17 |
|
in future periods. |
|
| 17 |
Sales tax receivable fromWAPDA |
Trade debts |
|
To give more correct picture for the
receivable balance. |
14,771,706 |
|
| 20 |
Telephone and communication |
Communication charges-(Cost of sale) |
For better presentation purposes. |
|
3,013,512 |
|
| |
|
| 32.2
Figures in these accounts have been rounded off to the nearest rupee. |
|
| |
|
| PATTERN
OF SHAREHOLDINGS AS 30-06-2002 |
|
| |
|
|
| NUMBER OF |
SHAREHOLDING |
TOTAL |
|
| SHAREHOLDERS |
FROM |
TO |
SHARES HELD |
|
| |
|
| 4 |
1 |
100 |
251 |
|
| 403 |
101 |
500 |
201,332 |
|
| 587 |
501 |
1,000 |
587,000 |
|
| 1,337 |
1,001 |
5,000 |
4,410,220 |
|
| 563 |
5,001 |
10,000 |
4,742,393 |
|
| 195 |
10,001 |
15,000 |
2,573,180 |
|
| 147 |
15,001 |
20,000 |
2,768,500 |
|
| 104 |
20,001 |
25,000 |
2,476,100 |
|
| 60 |
25,001 |
30,000 |
1,723,500 |
|
| 34 |
30,001 |
35,000 |
1,144,500 |
|
| 37 |
35,001 |
40,000 |
1,427,999 |
|
| 23 |
40,001 |
45,000 |
989,000 |
|
| 53 |
45,001 |
50,000 |
2,622,500 |
|
| 18 |
50,001 |
55,000 |
954,525 |
|
| 14 |
55,001 |
60,000 |
822,500 |
|
| 19 |
60,001 |
65,000 |
1,216,500 |
|
| 9 |
65,001 |
70,000 |
621,000 |
|
| 13 |
70,001 |
75,000 |
960,000 |
|
| 7 |
75,001 |
80,000 |
545,500 |
|
| 8 |
80,001 |
85,000 |
663,000 |
|
| 6 |
85,001 |
90,000 |
522,500 |
|
| 7 |
90.001 |
95,000 |
651,500 |
|
| 28 |
95,001 |
100,000 |
2,791 |
|
| 9 |
100,001 |
105,000 |
928,000 |
|
| 3 |
105,001 |
110,000 |
319,500 |
|
| 3 |
110,001 |
115,000 |
344,000 |
|
| 9 |
115,001 |
120,000 |
1,069,000 |
|
| 3 |
120,001 |
125,000 |
371,000 |
|
| 2 |
125,001 |
130,000 |
254,000 |
|
| 5 |
130,001 |
135,000 |
665,500 |
|
| 3 |
135,001 |
140,000 |
410,500 |
|
| 2 |
140,001 |
145,000 |
287,500 |
|
| 4 |
145,001 |
150,000 |
594,500 |
|
| 1 |
150,001 |
155,000 |
153,000 |
|
| 2 |
155,001 |
160,000 |
317,500 |
|
| 2 |
160,001 |
165,000 |
326,000 |
|
| 1 |
165,001 |
170,000 |
170,000 |
|
| 1 |
170.001 |
175,000 |
175,000 |
|
| 3 |
175,001 |
180,000 |
534,500 |
|
| 3 |
180,001 |
185,000 |
549,500 |
|
| 1 |
185,001 |
190,000 |
188,500 |
|
| 2 |
190,001 |
195,000 |
386,000 |
|
| 6 |
195,001 |
200,000 |
1,199,500 |
|
| 2 |
200,001 |
205,000 |
407,500 |
|
| 3 |
205,001 |
210,000 |
624,200 |
|
| 3 |
210,001 |
215,000 |
637,500 |
|
| 2 |
215,001 |
220,000 |
435,000 |
|
| 2 |
220,001 |
225,000 |
446,500 |
|
| 2 |
225,001 |
230,000 |
455,000 |
|
| 1 |
230,001 |
235,000 |
231,000 |
|
| 1 |
240,001 |
245,000 |
245,000 |
|
| 2 |
245,001 |
250,000 |
497,500 |
|
| 1 |
250,001 |
255,000 |
252,000 |
|
| 1 |
255,001 |
260,000 |
260,000 |
|
| 1 |
265.001 |
270,000 |
269,500 |
|
| 1 |
270,001 |
275,000 |
270,500 |
|
| 1 |
275,001 |
280,000 |
278,000 |
|
| 1 |
285,001 |
290,000 |
287,500 |
|
| 1 |
290,001 |
295,000 |
294,000 |
|
| 2 |
295,001 |
300,000 |
600,000 |
|
| 1 |
310,001 |
315,000 |
312,500 |
|
| 1 |
315,001 |
320,000 |
320,000 |
|
| 1 |
330,001 |
320,000 |
331,000 |
|
| 1 |
335,001 |
340,000 |
336,000 |
|
| 1 |
340.001 |
345,000 |
343,000 |
|
| 1 |
345,001 |
350,000 |
350,000 |
|
| 1 |
355,001 |
360,000 |
359,500 |
|
| 2 |
425,001 |
430,000 |
858,000 |
|
| 2 |
430,001 |
435,000 |
869,000 |
|
| 1 |
445,001 |
450,000 |
450,000 |
|
| 2 |
475,001 |
480,000 |
959,500 |
|
| 1 |
490,001 |
495,000 |
493,500 |
|
| 3 |
495,001 |
500,000 |
1,498,500 |
|
| 1 |
500,001 |
505,000 |
501,500 |
|
| 1 |
515,001 |
520,000 |
517,000 |
|
| 1 |
530,001 |
535,000 |
534,000 |
|
| 1 |
555.001 |
560,000 |
557,000 |
|
| 1 |
575,001 |
580,000 |
579,500 |
|
| 1 |
595,001 |
600,000 |
600,000 |
|
| 1 |
605,001 |
610,000 |
610,000 |
|
| 2 |
620.001 |
625,000 |
1,246,100 |
|
| 1 |
635,001 |
640,000 |
640,000 |
|
| 1 |
700,001 |
705,000 |
703,000 |
|
| 1 |
770,001 |
775,000 |
775,000 |
|
| 1 |
795,001 |
800,000 |
800,000 |
|
| 1 |
810,001 |
815,000 |
811,500 |
|
| 3 |
930,001 |
935,000 |
2,796,000 |
|
| 1 |
995,001 |
1,000,000 |
1,000,000 |
|
| 1 |
1,025,001 |
1,030,000 |
1,026,500 |
|
| 1 |
1,160,001 |
1,165 |
1,164,500 |
|
| 1 |
1,485,001 |
1,500,000 |
1,500,000 |
|
| 7 |
1,660,001 |
1,665,000 |
11,650,000 |
|
| 1 |
1,860,001 |
1,865,000 |
1,862,000 |
|
| 1 |
3,250,001 |
3,255,000 |
3,250,500 |
|
| 2 |
3,395,001 |
3,400,000 |
6,800,000 |
|
| 3 |
3,880,001 |
3,885,000 |
11,650,000 |
|
| 1 |
4,355,001 |
4,360,000 |
4,357,200 |
|
| 1 |
18,635,001 |
18,640,000 |
18,640,000 |
|
| 3,823 |
|
133,200,000 |
|
| |
|
| CATEGORIES
OF SHAREHOLDERS AS AT 30-06-2002 |
|
| |
|
| Sr. # Shareholder's Category |
|
Number of |
Number
of Shares |
Percentage |
|
| |
Shareholders |
Held |
|
|
| |
|
|
| 1
Directors/Chief Executive Officer and their |
11 |
35,128,524 |
26.37 |
|
| spouse
and minor children, (Included in individuals) |
|
|
|
| |
|
|
|
|
| 2
Executives: (Company Secretary) |
|
1 |
1,000 |
- |
|
| |
|
|
|
|
| 3
Associated Companies, Undertakings and related parties |
- |
- |
- |
|
| |
|
|
|
|
| 4
Public Sectors Companies & Corporations |
94 |
11,542,600 |
8.67 |
|
| |
|
|
|
|
| 5
NIT and ICP (Already included in Financial Inst.) |
4 |
813,000 |
0.61 |
|
| NIT 0 |
|
|
|
|
| ICP 813,000 |
|
|
|
|
| |
|
|
|
|