| Ellahi Electric Company Limited |
|
|
|
|
|
|
| ANNUAL
REPORT 1998 |
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
|
|
| Mr.
Shaikh Enam ELLAHI, Chairman |
|
| Mr.
S.M. Yusuf |
|
| Mr.
Shahzada ELLAHI Shaikh |
|
| Mr.
M. Ejaz Ahmad Baig |
|
| Mr.
Shafqat ELLAHI Shaikh |
|
| Mr.
Shaukat ELLAHI Shaikh |
|
| Mr.
Tahir Hussain Raza |
|
|
| MANAGING
DIRECTOR |
|
|
| Mr.
Shaukat ELLAHI Shaikh |
|
|
| COMPANY
SECRETARY |
|
|
| Mr.
Sheikh Muhammad Shafi |
|
|
| AUDITORS |
|
|
| M/s.
Hameed Chaudhri & Co., |
|
| Chartered
Accountants |
|
| 3rd
Floor, H.M. House, |
|
| 7,
Bank Square, Lahore. |
|
|
| REGISTERED
OFFICE |
|
|
| NAGINA
HOUSE, |
|
| 91-B-1,
M.M. Alam Road, |
|
| Gulberg
III, Lahore-54660 |
|
|
| POWER HOUSES |
|
|
| 1.
Mouza Rossa, Manga Mahdi |
|
| Raiwind
Road, Tehsil & District Kasur. |
|
| 2.
Ellahipur, Sheikhupura-Sharaqpur Road, |
|
| Tehsil
& District Sheikhupura. |
|
| 3.
Aminabad, S.I.T.E., Kotri, |
|
| Taluka
& District Kotri, Sindh. |
|
|
| REGIONAL
OFFICE |
|
|
| 2rid
Floor, Shaikh Sultan Trust Bldg. No. 2, |
|
| 26-
Civil Lines, Beaumont Road, |
|
| KARACHI-
75530. |
|
|
|
| NOTICE
OF MEETING |
|
|
| The
sixth Annual General Meeting of ELLAHI ELECTRIC COMPANY LTD., will be held at
its registered |
|
| office,
Nagina House, 91 -B-l, M.M. Alam Road, Gulberg-III, Lahore-54660, on Tuesday
the 29th December, |
|
| 1998,
at 11:00 a.m. to transact the followin9 business: |
|
|
| 1.
To confirm minutes of the fifth Annual General Meeting held on 22nd September
1997. |
|
|
| 2.
To receive and adopt audited accounts of the Company for the year ended on
30th June, |
|
| 1998
together with the Auditor's and Director's report thereon. |
|
|
| 3.
To approve payment of cash dividend @ 15% i.e. Rs. 1/50 (Rupee one and paisas
fifty |
|
| only)
per ordinary share of Rs. 10/= each. |
|
|
| 4.
To appoint auditors and fix their remuneration. |
|
|
| 5.
To transact any other ordinary business with the permission of the Chair. |
|
|
| By
Order of the Board |
|
|
|
Sheikh Muhammad Shafi |
|
| Lahore:
November 21, 1998. |
|
Corporate Secretary |
|
|
| NOTES: |
|
|
| 1)
The share transfer books of the Company will be closed from Tuesday, the 22nd
December, 1998 to |
|
| Tuesday
the 29th December, 1998 (both days inclusive). Transfer(s) received in order
at the registered |
|
| office
of the Company by the close of business on Monday the 21st December, 1998
will be in time |
|
| to
be passed for payment of dividend to transferee(s). |
|
|
| 2.
A member entitled to attend and vote at this Meeting may appoint an another
member as his/her |
|
| proxy
to attend and vote instead of him/her. Proxies in order to be effective must
be received at the |
|
| Company's
registered office not less than 48 hours before the time for holding the
meeting. |
|
|
| 3.
Shareholders are requested to promptly notify the Company of any change in
their address. |
|
|
| 4.
Account holders and sub-account holders' holding book entry securities of the
Company in Central |
|
| Depository
System of Central Depository Company of Pakistan Ltd., who wish to attend the
annual |
|
| General
Meeting are requested to please bring original I. D. Card with copy thereof
duly attested by |
|
| their
Bankers for identification purposes. |
|
|
|
| DIRECTORS'
REPORT |
|
|
| IN
THE NAME OF ALLAH THE MOST GRACIOUS |
|
| THE
MOST BENEVOLENT THE MOST MERCIFUL |
|
|
| The
Directors have the pleasure to herewith submit audited accounts of the
Company for the year ended |
|
| 30th
June, 1998 together with the auditors and Directors reports thereon. |
|
|
| During
the year, 42,294 (1997:39,154) engines hours were operated. The salient
features of the operations |
|
| are
as under:- |
|
|
|
1998 |
|
1997 |
|
|
|
Mwh |
% |
Mwh |
% |
|
| Electricity
generated |
|
83,288 |
100.00 |
77,612 |
100.00 |
|
| Electricity
Sold/billed |
|
79,863 |
95.89 |
74,103 |
95.48 |
|
| Used
in house |
|
3,236 |
3.88 |
3,172 |
4.09 |
|
| Transmission/line
losses |
|
188 |
0.23 |
336 |
0.43 |
|
|
|
| Sales
revenue during the year amounted to Rs. 269,367,038/00 (1997: Rs.
231,769,480/00). Cost of |
|
| sales
amounted to Rs. 192,048,531/00 (1997' Rs.168.132,443/00), leaving gross
profit of |
|
| Rs.
77,318,507/00 or 28.70% of sales (1997: Rs. 63,637,037/00= 27.46%). Net
profit for the year amounts |
|
| to
Rs. 61,609.638/00 = 22.87% of sales (1997: Rs. 48,030,956/00 = 20.72%). |
|
|
| Provision
for income tax and/or Turnover tax are not required as Profit & Gains of
the Company are |
|
| exempt
from Income Tax and Turnover tax by virtue of Clause 176 of Part 1 and Clause
20 of Part IV of the |
|
| Second
Schedule to the Income Tax Ordinance, 1979. |
|
|
| Notwithstanding
the legal provisions, Income Tax authorities have, in the opinion of the
Counsel, illegally |
|
| taxed/imposed
penalties, as detailed in note 23.3. These are under appeal at various
forums. |
|
| Upto
30th June, 1998 the Company has paid Rs. 4,022,582/00 under protest. |
|
|
| Fuel
prices have remained stable between February 4,1997 and June 27, 1 998 when
fuel oil price was |
|
| reduced
by Rs. 775/70 per ton or by 12.32%. The price was reduced just 3 days before
the close of |
|
| financial
year. Benefit of reduction will be apparent in the next financial year. The
prices are still too high. |
| Diesel
oil/Fuel oil prices need to be considerably reduced for production of
electricity at remunerative |
|
| prices
and to reduce the power cost of the industries specially exporting units.
Table of Diesel/Fuel oil |
|
| prices
is as follows: |
|
|
| Date of |
|
High Speed |
|
|
|
Diesel |
Increase |
Fuel Oil |
Increase |
|
| change. |
|
Rs. per liter |
(Decrease) |
Rs. Per ton |
(Decrease) |
|
|
|
Rs. |
% |
|
Rs. |
% |
|
| 19-08-93 |
|
6.10 |
|
2,843/50 |
|
|
| 14-06-95 |
|
6.48 |
0.38 |
6.23 |
2,986/00 |
142/50 |
05/01 |
|
| 28-10-95 |
|
6.94 |
0.46 |
7.10 |
3,195/00 |
209/00 |
7.00 |
|
| 12-02-96 |
|
7.17 |
0.21 |
3.02 |
3,323/00 |
128/00 |
04.0O |
|
| 14-03-96 |
|
7.44 |
0.29 |
4.04 |
3,090/00 |
(238/00) |
(07.16) |
|
| 14-04-96 |
|
7.44 |
--- |
--- |
3,640/00 |
550/00 |
17.80 |
|
| 23-05-96 |
|
7.44 |
--- |
--- |
4,914/71 |
1,274/71 |
35.02 |
|
| 12-06-96 |
|
7.44 |
--- |
--- |
4,514/71 |
(400/00) |
(08.14) |
|
| 21-07-96 |
|
7.09 |
(0.35) |
(4.70) |
4,234/71 |
(280/00) |
(06.20) |
|
| 19-08-96 |
|
7.09 |
--- |
--- |
4,323/71 |
98/00 |
2.31 |
|
| 12-09-96 |
|
7.43 |
0.34 |
4.79 |
4,575/71 |
243/00 |
5.60 |
|
| 07-10-96 |
|
8.00 |
0.57 |
7.67 |
4,935/71 |
360/00 |
7.87 |
|
| 22-10-96 |
|
8.78 |
0.78 |
9.75 |
5,867/71 |
932/00 |
18.88 |
|
| 13-11-96 |
|
9.44 |
0.64 |
7.29 |
6,116/37 |
248/96 |
4.24 |
|
| 17-11-96 |
|
9.44 |
--- |
--- |
6,296/37 |
180/00 |
2.94 |
|
| 05-12-96 |
|
9.91 |
0.47 |
4.98 |
6,665/66 |
369.29 |
5.86 |
|
| 12-01-97 |
|
10.25 |
0.34 |
3.43 |
6,665/66 |
--- |
--- |
|
| 04-02-97 |
|
9.64 |
(0.61) |
(5.95) |
6,296/70 |
'(368.96) |
'(05.86) |
|
| 27-06-98 |
|
9.64 |
--- |
--- |
5,521/00 |
(775/70) |
(12.32) |
|
|
|
|
| The
Directors have the pleasure to recommend payment of cash dividend @ 15% i.e.
Rs. 1/50 (Rupee |
|
| one
and paisas fifty only) per ordinary share of Rs. 10/00 to those members who
are registered on the |
|
| books
of the Company on Monday, the 21 st December, 1998. The dividend will absorb |
|
| Rs.
54,000,000/= (Rupees fifty four million only). |
|
|
| Trade
debt of Rs. 24,595,891/00 (including Rs. 20 026 million due from the
Associated Companies - |
|
| Note
11) is the value of electricity supplied during the month of June, 1998. The
bills were payable by 25th |
|
| July,
1998 Payments were received by due date. |
|
|
| Inspire
of the continued increases in the price of basic inputs, Private Power
Generation continues to be |
|
| profitable.
In the present environment, established power units have definite edge over
new units. In view |
|
| of
the fact that basic infra structure facilities are already in place and
therefore, the cost of capacity |
|
| expansion
will be far less. The Directors are of the opinion that the Company has a
bright and profitable |
|
| future
and are therefore, planning for further expansion of the Capacities. |
|
|
| Shares
of the Company were declared "eligible security" with effect from
October 14, 1998 (later changed |
|
| to
October 22, 1998) by the Central Depository Company of Pakistan Ltd. Creation
of Central Depository |
|
| system
is said to be to bring efficiency in Capital market of Pakistan, avoid
delays, reduce costs involved |
|
| in
handling mass of paper and to eliminate the risk of bad deliveries i.e.
fake/forged/stolen shares or |
|
| Transfer
deeds. |
|
|
| While
the objects are laudable, the Companies called "Issuer" are being
forced to enter into inequitable |
|
| one
sided agreements with CDC and are required to make unnecessary large return
free deposit with |
|
| CDC
and to pay large yearly fee. |
|
|
| In
the opinion of the Company, the costs of the system should be transaction
related, agreement should |
|
| be
equitable and there should be no deposit. The Company has therefore, joined
the system under |
|
| protest.
Delivery of the shares of the Company with effect from 22nd October, 1998 is
in electronic form |
|
| only.
Till date less than 3% (three percent) of the issued shares of the Company
are reported to have |
|
| been
enrolled in the Central Depository system. |
|
|
| The
Directors have the pleasure to state that the Computers and the software of
the Company are year |
|
|
| Mr.
Muhammad Iqbal Khan, after serving less then a year, resigned from the office
of Director of the |
|
| Company.
In the vacancy on the Board Mr. Tahir Hussain Raza has been co-opted. |
|
|
| The
Directors wish to thank the workers, staff and Officer's of the Company for
their devotion and hard |
|
| work
and are confident that Inshallah, with their whole hearted efforts better
results and increased profitability |
| will
be achieved |
|
|
|
By Order of the Board |
|
|
|
Shaukat ELLAHI Shaikh |
|
| Lahore:
November 21,1998. |
|
Mg. Director (Chief
Executive) |
|
|
|
|
1998 |
1997 |
1996* |
|
|
| Cost
of sales as % of sales |
% |
71.30 |
72.54 |
59.88 |
|
| Gross
profit as % of sales |
% |
28.70 |
27.46 |
40.12 |
|
| Operating
profit as % of sales |
% |
26.21 |
26.08 |
36.34 |
|
| Net
profit/(Loss) as % of sales |
% |
22.87 |
20.72 |
41.38 |
|
| Shareholders'
equity (millions) |
Rs. |
374.18 |
366.57 |
372.54 |
|
| Pretax
profit to equity |
|
% |
16.47 |
13.10 |
3.36 |
|
| Sales
to capital employed |
|
0.66 |
0.56 |
0.07 |
|
| Gross
profit to capital employed |
% |
18.98 |
15.37 |
2.82 |
|
| Pretax
profit to capital employed |
% |
15.12 |
11.60 |
2.90 |
|
| Earning
per share - pretax |
Rs. |
1.71 |
1.33 |
0.35 |
|
| Dividend
to capital-Cash |
|
% |
15.00 |
15.00 |
0.00 |
|
| Break
up value per share |
|
Rs. |
10.39 |
10.18 |
10.35 |
|
| Debt
equity ratio |
|
11.29 |
13.94 |
15.18 |
|
| Current
ratio |
|
1.54 |
1.21 |
2.81 |
|
| Acid ratio |
|
1.16 |
1.06 |
2.46 |
|
| Total
debts to total assets |
% |
9.48 |
11.92 |
14.60 |
|
|
| *
Results for 2 months operation |
|
|
| ELLAHI
ELECTRIC COMPANY LIMITED |
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
|
| HAMEED
CHAUDHRI & CO. |
|
| CHARTERED
ACCOUNTANTS |
|
| 7-BANK
SQUARE |
|
| LAHORE |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS OF |
|
| ELLAHI
ELECTRIC COMPANY LIMITED |
|
|
| We
have audited the annexed Balance Sheet of ELLAHI ELECTRIC COMPANY LIMITED as |
|
| at
30 June, 1998 and the related Profit and Loss Account and Cash Flow Statement
together |
|
| with
the notes forming 'pad thereof, for the year then ended and we state that we
have obtained |
|
| all
the information and explanations which to the best of our knowledge and
belief were |
|
| necessary
for the purposes of our audit and, after due verification thereof, we report
that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the Company as
required by the |
|
| Companies
Ordinance, 1984; |
|
|
| (b)
in our opinion: |
|
|
| (i)
the Balance Sheet and Profit and Loss Account together with the notes thereon |
|
| have
been drawn up in conformity with the Companies Ordinance, 1984 and are |
|
| in
agreement with the books of account and are further in accordance with |
|
| accounting
policies consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's |
|
| business;
and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during |
|
| the
year were in accordance with the objects of the Company; |
|
|
| (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 and the Cash Flow Statement |
|
| together
with the notes forming part thereof, 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 30 June, 1998 and of the
profit and |
|
| cash
flows for the year then ended; and |
|
|
| (d)
in our opinion, Zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 was |
|
| deducted
by the Company and deposited in the Central Zakat Fund established under |
|
| section
7 of that Ordinance. |
|
|
| Without
qualifying our opinion we draw attention to the matters, detailed in notes to
the accounts |
|
| nos.6.1
and 23.3, the ultimate outcome of which cannot presently be determined by the |
|
| Company
with any degree of certainty, |
|
|
|
HAMEED CHAUDHRI & CO. |
|
| Lahore:
21 Nov 1998 |
|
Chartered Accountants |
|
|
|
| BALANCE
SHEET |
|
| AS
AT 30 JUNE, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
| SHARE
CAPITAL AND RESERVES |
|
|
| Authorised
capital |
|
| 40,000,000
ordinary |
|
| shares
of Rs. 10/= each |
|
400,000,000 |
400,000,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and |
|
| paid-up
capital |
|
| 36,000,000
ordinary |
|
| shares
of Rs. 10 each |
|
| issued
for cash |
|
360,000,000 |
360,000,000 |
|
|
| Un-appropriated
profit |
|
14,175,942 |
6,566,304 |
|
|
--------- |
--------- |
|
|
374,175,942 |
366,566,304 |
|
| LIABILITIES
AGAINST ASSETS |
|
| SUBJECT
TO FINANCE LEASE |
|
3 |
33,243,975 |
47,600,238 |
|
|
| DEFERRED
LIABILITY FOR GRATUITY |
|
1,814,034 |
526,582 |
|
|
| CURRENT
LIABILITIES |
|
| Current
portion of liabilities |
|
| against
assets subject to |
|
| finance
lease |
|
3 |
14,356,262 |
11,766,1 54 |
|
| Short
term finances |
|
4 |
10,902,687 |
8,466,704 |
|
| Creditors,
accruals and |
|
|
|
| other
liabilities |
|
5 |
10,806,645 |
9,042,168 |
|
| Proposed
dividend |
|
54,000,000 |
54,000,000 |
|
| Unclaimed
dividend |
|
2,948,736 |
- |
|
|
--------- |
--------- |
|
|
93,014,330 |
83,275,026 |
|
| CONTINGENCIES
AND |
|
| COMMITMENTS |
|
6 |
--------- |
--------- |
|
|
502,248,281 |
497,968,150 |
|
|
========== |
========== |
|
| FIXED
CAPITAL EXPENDITURE |
|
|
| Operating
fixed assets |
|
7 |
354,048,321 |
380,636,295 |
|
|
|
|
| Capital
work-in-progress |
|
8 |
54,850 |
9,196,279 |
|
|
| Stores
held for capital expenditure |
|
-- |
292,353 |
|
|
---------- |
---------- |
|
|
354,103,171 |
390,124,927 |
|
|
| LONG
TERM DEPOSITS AND |
|
| DEFERRED
COSTS |
|
9 |
5,272,254 |
7,132,732 |
|
|
| CURRENT
ASSETS |
|
|
| Inventories |
|
10 |
34,878,166 |
12,101,866 |
|
|
|
|
| Trade debts |
|
11 |
24,595,891 |
22,253,347 |
|
|
|
|
| Advances,
deposits, prepayments |
|
|
| and
other receivables |
|
12 |
8,202,032 |
6,465,922 |
|
|
|
|
| Cash
and bank balances |
|
13 |
75,196,767 |
59,889,356 |
|
|
|
--------- |
--------- |
|
|
142,872,856 |
100,710,491 |
|
|
--------- |
--------- |
|
|
502,248,281 |
497,968,150 |
|
|
========= |
========= |
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
| Lahore,
November 21, 1998 |
Shahzada Ellahi Shaikh |
Shaukat Ellahi Shaikh |
|
|
Director |
|
Mg. Director (Chief
Executive) |
|
|
|
|
|
|
|
|
| PROFIT
& LOSS ACCOUNT |
|
| FOR
THE YEAR ENDED 30 JUNE, 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
| SALES |
|
14 |
269,367,038 |
231,769,480 |
|
|
|
|
|
| COST
OF SALES |
|
15 |
192,048,531 |
168,132,443 |
|
|
|
|
---------- |
---------- |
|
| GROSS PROFIT |
|
|
77,318,507 |
63,637,037 |
|
|
|
|
---------- |
---------- |
|
| ADMINISTRATIVE
EXPENSES |
|
16 |
6,718,292 |
3,202,454 |
|
|
|
|
|
| OPERATING
PROFIT |
|
|
70,600,215 |
60,434,583 |
|
|
|
|
|
| OTHER INCOME |
|
17 |
309,262 |
246,117 |
|
|
|
---------- |
---------- |
|
|
|
70,909,477 |
60,680,700 |
|
|
|
| OTHER
CHARGES |
|
| Financial
- Net |
|
18 |
3,946,748 |
8,211,321 |
|
| Miscellaneous |
|
19 |
5,353,091 |
4,438,423 |
|
|
|
---------- |
---------- |
|
|
9,299,839 |
12,649,744 |
|
|
---------- |
---------- |
|
| PROFIT
FOR THE YEAR |
|
61,609,638 |
48,030,956 |
|
|
|
| UNAPPROPRIATED
PROFIT |
|
| -
Brought forward |
|
6,566,304 |
12,535,348 |
|
|
---------- |
---------- |
|
| PROFIT
AVAILABLE FOR APPROPRIATION |
|
68,175,942 |
60,566,304 |
|
|
|
|
| APPROPRIATION |
|
| Proposed
dividend @ 15% (1997'@ 15%) i.e. |
|
| Rs.
1.50 per ordinary share of Rs. 10 |
|
54,000,000 |
54,000,000 |
|
|
| UNAPPROPRIATED
PROFIT |
|
---------- |
---------- |
|
| -
Carried to Balance Sheet |
|
14,175,942 |
6,566,304 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts |
|
|
|
Shahzada Ellahi Shaikh |
Shaukat Ellahi Shaikh |
|
| Lahore,
November 21, 1998 |
Director |
|
Mg. Director (Chief
Executive) |
|
|
|
| CASH
FLOW STATEMENT |
|
| FOR
THE YEAR ENDED 30 JUNE. 1998 |
|
|
|
|
1998 |
1997 |
|
|
Note |
Rupees |
Rupees |
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
20 |
82,485,824 |
90,191,754 |
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
| Fixed
capital expenditure |
|
(2,576,599) |
(59,756,552) |
|
| Long
term deposits |
|
-- |
(900) |
|
| Term
deposit receipts |
|
-- |
2,221,220 |
|
|
---------- |
---------- |
|
| NET
CASH OUTFLOW FROM |
|
| INVESTING
ACTIVITIES |
|
(2,576,599) |
(57,536,232) |
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
| Lease
finances repaid |
|
(11,766,155) |
(7,323,484) |
|
| Short
term finance obtained |
|
9,997,660 |
-- |
|
| Dividend
paid |
|
(51,051,264) |
-- |
|
| Financial
charges paid - Net |
|
(4,220,378) |
(9,663,453) |
|
| NET
CASH OUTFLOW FROM |
|
---------- |
---------- |
|
| FINANCING
ACTIVITIES |
|
(57,040,137) |
(16,986,937) |
|
|
---------- |
---------- |
|
| NET
INCREASE IN CASH |
|
|
|
| AND
CASH EQUIVALENTS |
|
22,869,088 |
15,668,585 |
|
|
| CASH
AND CASH EQUIVALENTS |
|
| -
At the beginning of the year |
|
51,422,652 |
35,754,067 |
|
|
| CASH
AND CASH EQUIVALENTS |
|
---------- |
---------- |
|
| -
At the end of the year |
|
21 |
74,291,740 |
51,422,652 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
Shahzada Ellahi Shaikh |
Shaukat Ellahi Shaikh |
|
| Lahore,
November 21,1 998 |
Director |
|
Mg. Director (Chief
Executive) |
|
|
|
| NOTES
TO THE ACCOUNTS |
|
| FOR
THE YEAR ENDED 30 JUNE, 1998 |
|
|
|
|
| 1.
THE COMPANY AND ITS OPERATIONS |
|
|
| The
Company was incorporated on 24 April, 1 993 as a Private Company, It was
converted into a |
|
| Public
Company on 08 August, 1994. Its shares are quoted on Karachi and Lahore Stock
Exchanges. |
|
| The
Company is principally engaged in generation and sale of electric power. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.2
Staff retirements benefits |
|
|
| The
Company operates an un-funded Gratuity Scheme for all its eligible employees.
Provision |
|
| is
made annually to cover obligation under the Scheme. |
|
|
| 2.3
Foreign currency translation |
|
|
| Transactions
in foreign currencies are translated into Pak Rupees at rates of exchange |
|
| prevailing
on transactions' dates. Assets and liabilities in foreign currencies are
converted |
|
| into
Pak Rupees at exchange rates prevailing on the balance sheet date. |
|
|
| 2.4
Fixed assets and depreciation thereon |
|
