the hub power company limitedthe hub power company limited (the "company") was...

THE HUB POWER COMPANY LIMITED

UNAUDITED HALF YEARLY FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED

DECEMBER 31, 2013

growth through energy

C O N T E N T S

THE HUB POWER COMPANY LIMITED PAGE Company Information 1 Report of the Directors 3 Auditor’s Review Report to the Members 5 Condensed Interim Profit & Loss Account 6 Condensed Interim Statement of Comprehensive Income 7 Condensed Interim Balance Sheet 8 Condensed Interim Cash Flow Statement 9 Condensed Interim Statement of Changes in Equity 10 Notes to the Condensed Interim Financial Statements 11 THE HUB POWER COMPANY LIMITED and its Subsidiary Company Report of the Directors on the Consolidated Financial Statements 16 Condensed Interim Consolidated Profit & Loss Account 19 Condensed Interim Consolidated Statement of Comprehensive Income 20 Condensed Interim Consolidated Balance Sheet 21 Condensed Interim Consolidated Cash Flow Statement 22 Condensed Interim Consolidated Statement of Changes in Equity 23 Notes to the Condensed Interim Consolidated Financial Statements 24

COMPANY INFORMATION

BOARD OF DIRECTORS Hussain Dawood Chairman

Khalid Mansoor Chief Executive

Syed Muhammad Ali Iqbal Alimohamed Syed Ahmed Iqbal Ashraf NBP Nominee Alamuddin Bullo Abdul Samad Dawood Shabbir H. Hashmi Qaiser Javed Khaleeq Nazar Kiani GOB Nominee Ruhail Muhammed Ali Munir Shahid Hamid Pracha Inam ur Rehman Syed Khalid Siraj Subhani

Audit Committee Iqbal Alimohamed Chairman

Shabbir H. Hashmi

Qaiser Javed

Ruhail Mohammad

Ali Munir

COMPANY SECRETARY Shamsul Islam MANAGEMENT Khalid Mansoor Hasnain Haider Shamsul Islam Tahir Jawaid Mohammad Kaleem Khan Shahid Mahmood Abdul Nasir Inam ur Rahman Siddiqui HEAD OFFICE & REGISTERED 3rd Floor, Islamic Chamber of Commerce Bldg; OFFICE ST-2/A, Block 9, Clifton, P.O. Box No. 13841, Karachi-75600 Email: [email protected] Website: http://www.hubpower.com PRINCIPAL BANKERS Allied Bank of Pakistan

Askari Bank Limited Bank Al-Falah Limited Bank Al-Habib Limited

Bank of Punjab Bank Islami Pakistan Limited Barclays Bank PLC Pakistan Burj Bank Limited

Citibank N.A. Karachi. Faysal Bank Limited Habib Bank Limited Habib Metropolitan Bank Limited Meezan Bank Limited MCB Bank Limited National Bank of Pakistan

1

NIB Bank Limited PAIR Investment Company Limited

Pak Brunei investment Company Limited Pak China Investment Company Limited Pak Kuwait Investment Company (Pvt) Ltd.,

Samba Bank Limited Standard Chartered Bank (Pakistan) Ltd.,

Sumitomo Mitsui Banking Corp. Europe Ltd., London United Bank Limited INTER-CREDITOR National Bank of Pakistan AGENTS Habib Bank Limited Allied Bank Limited NIB Bank Limited LEGAL ADVISORS Rizvi, Isa, Afridi & Angell, Karachi AUDITORS Ernst & Young Ford Rhodes Sidat Hyder REGISTRAR Famco Associates (Pvt) Limited

2

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THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM

PROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR ENDED DECEMBER3I,2OI3

Note

3 months ended

Dec 2013

(Rs.'000s)

39,764,973

(37,349,685)

3 months ended

Dec 2012

(Rs.'000s)

41,642,941

(37,218,418)

77,820,272

(72,592,r60',)

89,959,377

(81,5 r4,9r 8)

6 months ended 6 months ended

Dec 2013 Dec 2012

(Rs.'000s) (Rs.'000s)

Tumover

Operating costs

GROSS PROFIT

General and administration expenses

Other income

Workers' profit participation fund

PROFIT FROM OPERATIONS

Finance costs

PROFIT BEFORE TAXATION

Taxation

PROFIT FORTHE PERIOD

Basic and diluted eamings per share (Rupees)

2,415,288

(r47,449)

16,570

4,424,523

(107,080)

8,305

5,228,112

(26r,096)

72,299

8,444,459

(r98,3 l6)

I r,635

2,284,409

(t,16t,t77)

4,325,748

(1,697,459)

5,039,3 l5

(2, r 00,565)

8,257,778

(3,5 r 5,923)

r,123,232

( 1,1 60)

2,628,289

(872)

2,938,750

( r,e5 s)

4,741,855

(872)

t,122,072

0.97

2,627,4t7 2,936,795 4,740,983

2.27 2.54

The annexed notes from I to l 7 form an integral part ofthese condensed interim financial statements.

t+r14*

lll.rtJ hrqu---Khalid Mansoor

Chief Executive

6

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Profit for the period

Other comprehcnsive income for the period

Actuarial losses on defined benefits plan

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD I,II9,O89 2,624,094 2,930,E29 4,734,338:- :

The annexed notes fiom I to 17 form an integral part ofthese condensed interim financial statements.

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STATEMf,NT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31.2013

lltrl{t orrxpr.,--Khalid Mansoor

ChiefExecutive

3 months ended 3 months endcd 6 months ended 6 months ended

Dcc 2013 Dcc 2012 Dcc 2013 Dcc 2012

(Rs.'000s) (Rs.'01[s) (Rs.'000s) (Rs.'l[Os)Restated Restetcd

1,122,072 2,627,417 2,936,795 4,740,983

(2,e83) (3,323) (s,e66) (6,645)

lqbal Alimohamed

Director

7

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BALANCE SHEETAS AT DECEMBER 31. 2OI3

Note

Dec 2013

(Rs.r000s)

(Unaudited)

Jun 2013

(Rs.'000s)(Audited)RestatedASSETS

NON.CURRENT ASSETSFixed Assets

Property, plant and equipment

Intangibles

Investment in subsidiary

Long term loan and advance

Long term deposits and prepayments

CURRENT ASSETS

Stores and spares

Stock-in-trade

Trade debts

Loan and advances

Prepayments and other receivables

Cash and bank balances

TOTAL ASSETS

EOUITY AND LIABILITIES

SHARE CAPITAL AND RESERVE

Share CapitalAuthorised

Issued, subscribed and paid-up

Revenue Reserve

Unappropriated profit

NON-CURRENT LIABILITIESLong term loans

CURRENT LIABILITIESTrade and other payables

Interest / mark-up accrued

Short term borrowings

Current maturity of long term loans

COMMITMENTS AND CONTINGENCIES

TOTAL EQUITY AND LIABILITIES

42,231,035

17,393

4,674,189

70,430

10,633

43,462,670

27,194

4,674,r89

87,342

8,267

122,473,t37 99,313,489

12,000,000 12,000,000

I t,57 |,544

2 r ,03 8,569

n,s7t,544

18,762,203

l0

ll

30,333,747

21,809,664

52,846,374

I ,109,69813,422,119

2,95r,535

70,329,726

32,610,113

23,55t,t36

34,838,252

1,422,134

4,526,903

2,364,951

43,152,240

t2

122,473,137 99,3 13,489

Theannexed notes from I to l7 form an integral partofthesecondensed interim financial statements.

It\t\_.-

r--)Iqbal Alimohamed

Director

[t^]tt or.Hror---Khalid Mansoor

Chief Executive

I ,880, l 88

7, I 85,89 I

62,199,045

84,1 l63,825,294

294,923

75,469,457

I,574,038

4,247,498

24,799,191

108,333

3,255,81417,068,953

5t,053,827

tq /l-

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CASH FLOW STATEMENT (UNAUDTTED)

FOR THE HALF YEAR ENDED DECEMBER 3I,2OI3

Note

6 months ended

Dec 2013

(Rs.'000s)

6 months ended

Dec 2012

(Rs.'000s)

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustments for:

Depreciation

Amortisation

Gain on disposal of fixed assets

StaffgratuityInterest income

Interest / mark-up

Amortisation of transaction cost

Operating profit before working capital changes

Working capital changes

Cash (used in) / generated from operations

Interest received

Interest / mark-up paid

Taxes paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditure

Proceeds from disposal offixed assets

Long term loan and advance

Long term deposits and prepayments

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid

Repayment of long term loans - Hub plant

Repayment of long term loans - Narowal plant

Net cash used in financins activities

Net decrease in cash and cash equivalents

Cash and cash equivalents at the beginning ofthe period

Cash and cash equivalents at the end ofthe period

2,938,750

1,342,291

9,801

(14)

7,854(64,199)

2,018,798

30,742

4,741,855

1,340,3 l87,339

(64)

4,876(5,827)

3,385,790

29,154

6,284,023

(23,214,673)

9,503,440

(6,361,304)

(16,930,650)

66,466(2,33t,234)

( I,955)

3,142,136

4,925(3,449,586)

(872)

(19,197,373) (303,397)

(n2,209)1,567

16,912

(2,366)

(36,557)

574

8,008

107

(96,096)

(5,190,146)

(489,531)

(696, I 00)

(27,868)

(3,465,100)

(489,531)

(598,822)

(6,375,777) (4,553,453)

(25,669,246)

12,542,050

(4,884,718)

( l9,l9l,438)

(13,127,196) (24,076,156)

The annexed notes from I to l7 form an integral part ofthese condensed interim financial statements. L+tfn^

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l\t^tii otr,.rp r

Khalid Mansoor

Chief Executive

<-'-----">Iqbal Alimohamed

Director

9

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THE HUB POWER COMPANY LIMITED

CONDENSED INTERIMSTATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE HALF YEAR ENDED DECEMBER 3I, 2013

6 months ended

Dec 2013

(Rs.'000s)

11,571,544

6 months ended

Dec2012(Rs.'000s)

Restated

11,571,544

Issued capital

Balance at the beginning of the period

Balance at the end ofthe period


Balance at the beginning ofthe period - restated

Total comprehensive income for the period

Transactions with owners in their capacity as owners

Final dividend for the fiscal year 2012-2013 @ Rs. 4.50

(2011-2012: @ Rs. 3.00) per share

Balance at the end of the period

Total equity

The annexed notes from I to 17 form an integral part ofthese condensed

11,571,544 11,571,544

21,038,569

2,930,829

(5,207,195

(5,207,195)

19,185,482

4,734,338

3,471,463

(3,471,463)

18,762,203 20.448.357

30,333,747 32.019.901

interim fi nancial statements.

Enrr*

lU^N,l or.'^rsj'-Khalid Mansoor

Chief Executive Director

10

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THE HUB POWER COMPANY LIMITf,DNOTES TO THf, CONDENSED INTERIM

FINANCIAL STATEMENTS (UNAUDITED)

FOR THE HALF YEAR ENDED DECEMBER 3I.20I3

THE COMPANY AND TTS OPERATIONS

The Hub Power Company Limited (the "Company") was incorporated in Pakistan on August l, l99l as a public lirnited company under the Companies

Ordinance, 1984 (the "Ordinance"). The shares of the Company are listed on the Karachi, Lahore and Islamabad Stock Exchanges and its Global

Depository Receipts are listed on the Luxernbourg Stock Exchange. The principal activities of the Company are to develop, own, operate and maintain

power stations. The Company owns an oil-fired power station of 1,200 MW (net) in Balochistan (Hub plant) Md a2l4 MW (net) oil'fired power station in

Punjab (Narowal plant). The Company also has a 75% controlling interest in Laraib Energy Limited "Subsidiary". The subsidiary owns a hydel power

station of 84 MW which commenced operations on March23,2013.

SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods ofcomputation followed for the preparation ofthese condensed interim frnancial statements are same as those applied

in preparing the financial statements for the year ended June 30, 2013 except as follow:

Change in accounting standards, interpretations and pronouncements

During the period, the Company has adopted Revised IAS 19 -'Employee Benefits'. As per revised standard, actuarial gains and losses for defined

benefit plans are recognised in other comprehensive income when they occur. Amounts recorded in profit and loss are limited to current and past

service costs, gains or losses on settlements, and net interest income / (expense). All other changes in the net defined benefit asset / (liability) are

recognised in other comprehensive income with no subsequent recycling to profit and loss.

The adoption of above revised standard has resulted in change in accounting policy ofthe Company related to recognition of actuarial gains and losses

to recognise actuarial gains and losses in total in other comprehensive income in the period in which they occur. Previously, acfuarial gains or losses

in excess of l0% ofthe actuarial liability or plan asses were recognised in profit and loss account over the exp€cted average working life ofthe

employees. The impact ofthe said changes on these interim condensed financial statements ts as under:

Net decrease in unappropriated profit as at July 01, 2012

Net decrease in other comprehensive income for the period ended December 31, 2012

(Rs.'00s)

r 0,063

BASIS OF PREPARATION

These condensed interim financial statements ofthe Company forthe halfyear ended December 31,2013 are unaudited but subject to limited scope review

by the statutory auditors as required by the Code of Corporate Govemance. These condensed interim financial statements have been prepared in accordance

with the requirements of IAS 34 "lnterim Financial Reporting" and provisions of and directives issued under the Ordinance. In case requiranents differ, the

provisions of and directives issued under the Ordinance have been followed.

The figures of the condensed interim profit and loss account for the quarters ended December 31, 2013 and 2012 have not been reviewed by the extemal

auditors ofthe Company as they have reviewed the cumulative figures for the halfyears ended December 31,2013 and20l2. These condensed interim

financial statements do not include all the information and disclosures as required in the arurual financial statements and should be read in conjunction with

the Company's annual financial statements for the year ended June 30, 2013.

3 months ended 3 months ended 6 months ended 6 months endcd

Dec 2013 Dec 2012 Dec 2013 Dec 2012

(Rs.'ffi0s) (Rs.'000s) (Rs.'0ffis) (Rs.'ffiOs)

OPERATING COSTS

Fuel cost

Stores and spares

Operation and Maintenance

Insurance

Depreciation

AmortisatronRepairs, maintenance and other costs

WORKERS' PROFIT PARTICIPATION FUND

Provisron for Workers' profit participation fund

Workers' profit participation fund recoverable

from WAPDA / NTDC

37,349,68s 37 ,218,418

146,938 237,093

( l 46,93 8) (237,093)

e 4,?-

l.

34,682,921 35,094.469

r 1s,829 | t8,27r

965,681 875,121

243,537 215,671

666,067 664,237

4,109 2,752

671,541 247 ,897

67,674,726

219,847

r,904,5 t 3

48 I ,783|,330,472

9,429

971,390

6.645

77,356,6t5

156,753

|,799,931

423,507

|,329,011

5,505

443.s96

72,592,160 81,514,918

r.

s6,t62 l3l,415

(s6,t62\ (131,415)

11

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The Company is required to pay 5Yo of its profit to the Workers' profit participation fund (the "Fund"). However, such payrnent does not affect the

Company's overall profitability because after payment to the Fund, the Company bills this to Water and Power Development Authority (WAPDA) /

National Transmission and Despatch Company Limited (NTDC) as a pass through item under the PPAs.


Dec 2013 Dec20l2(Rs.'000s) (Rs.'000s)


Dec 2013 Dec 2012

(Rs.'000s) (Rs.'000s)

FINANCE COSTS

Interest / mark-up on long term loans

Mark-up on short term borrowings


Other finance costs

TAXATION

Current- For the period

- Prior year

PROPERTY, PLANT AND EQUIPMf,NT

Operating property, plant and equipment

Capital work-in-progress

SHORT TERM BORROWINGS - Secured

Finances under mark-up,urangements

25,530 52,089 51,025

|,t6r,177 1,697 ,459 2,100,565:::

375 1,95s

497

780,306

339,993

15,348

9t 1,406

719,l8l14,783

|,557 ,396461,402

30,742

1,936,749

|,449,041

29,t54100,979

3,515,923

375

497

7-

1,160

1,160 872 l,955

Dec 2013

(Rs.'000s)

(Unaudited)

42,1s8,6t672,4t9

8.I 42,231,035

8.1 Additions to property, plant and equipment during the period were Rs. 1 12.209 million and disposal therefrom at net book value were Rs. 1 553

million.Dec 2013 Jun 2013

(Rs.'000s) (Rs.'000s)

Note (Unaudited) (Audited)

TRADE DEBTS -Secured

Considered good e. t 62,199,045 24,799,191::9.1 These receivables include an overdue amount of Rs. 43,890 million (June 2013: Rs. 12,047 million) from WAPDA and Rs.2,827 million (June

2013: Rs. 627 million) from NTDC. These are not impaired because the trade debts are secured by a guarantee from the Government of Pakistan

under lmplementation Agleements.

The delay in pal,rnents from WAPDA carries mark-up at State Bank of Pakistan (SBP) discount rate plus 2%o per annum compounded semi-annually

and the delay in payment from NTDC carries mark-up at a rate of 3 month KIBOR plus 4.5% per annum compounded semiannually.

IO. TRADE AND OTHER PAYABLES

This includes r1s.47,737 million (June 2013: Rs. 29,785 million) payable to Pakistan State Oil Company Limited (PSO), out of which overdue amount is

Rs. 40-948 million (June 2013: Rs. 20.520 million).

The delay in payments to PSO carries mark-up at SBP discount rate plus 270 per annum compounded semi-annually.

872

8.

Jun 2013

(Rs.'ffi0s)

(Audited)

43,395,401

67,269

43.462.670

Dec 2013 Jun 2013

(Rs.'000s) (Rs.'0ffis)


ll.l to ll.3 13,422,119 4,526,903

It.l The facilities for running finance available from various banks / financial institutions amounted to Rs. 21,665 million (June 2013: Rs. 21,965

million) at mark-up ranging between 0.75%oto 3.00% per annum above one / three month KIBOR. The mark-up on the facilities is payable on

monthly / quarterly basis in arrear. The facilities expire during the period from December 31, 2013 to October 02,20'14. Any late payment by the

Company is sublect to an additional payment of2.00o/o per annum above the normal mark-up rate. S+t P"^'

12

@gmsah d}ru8fi dc|8y

I I . I . I The facilities amounting to Rs. I 6,740 million (June 2013: Rs. I 7,040 million) are secured by way of charge over the trade debts and stocks

ofthe Company pari passu with the existing charge

ll.l.2 ThefacilitiesamountingtoRs.4,g25million(June20l3: Rs.4,925million)aresecuredbywayoi

(a) a first ranking charge on all present and future (i) amounts standing to the credit ofthe Energy Payment Collection Account and the

Master Facility Account, (ii) Fuel, lube, fuel stocks at the Narowal plant and Spares parts; and (iii) the Energy Payment Receivables

of Narowal plant.

(b) a subordinated charge on all present and future plant, machinery and equipment and other moveable assets of the Narowal plant

excluding; (i) the immoveable properties; (ii) Hypothecated Assets under first ranking charge; (iii) the Energy Payment Collection

Account, Working Capital Facility Accounts and the Master Facility Account; (iv) the Energy Payment Receivables; (v) all of the

Project Company's right, title and interest in the Project Documents (including any receivables thereunder), and (vi) all current

assets.

I 1.1.3 This includes a sum ofRs. 275 million (June 2013: Rs. Nil) payable to an associated undertaking. The available facility amounted to Rs.

275 million (June 2013: Rs. 275 million). This facility is secured by way of securities mentioned in note I 1.1.2.

The Company also has Murabahah facility agreemants with banks for an amount of Rs. 625 million (June 2013: Rs. 625 million) at a mark-up of2.00% per annum above three month KIBOR. The mark-up on the facilities is payable on quarterly basis in arrear. These facilities will expire on

August 28, 2014. Any late payment by the Company is subject to an additional payment of4.00Vo per annum above the normal mark-up rate. These

facilities are secured by way of securities mentioned in note I l. I .2.

The Company also entered into a Musharaka agreement amounting to Rs. 635 million (June 2013: Rs. 635 million) at a mark-up of 2.00o/oper

annum above three month KIBOR. The mark-up on the facility is payable on quarterly basis in arrear. This facility will expire on October 31,2014.

Any late payment by the Company is subject to an additional payment of2.00%o per annum above the normal mark-up rate. This facility is secured

by way of securities mentioned in note I L | .2 (a).

I2. COMMITMENTS AND CONTINGENCIES

l2.l In 1998, the Federal Board ofRevenue (FBR) made assessments under section 52186 ofthe lncome Tax Ordinance, 1979 [lTO,79] amounting to Rs.

1,896 million stating that the Company did not withhold tax at the time ofissue ofshares to sponsors against project development costs incurred by

them. The Company deposited Rs. 297 million against the above assessments in accordance with the departmental procedures prevalent at that time.

Appeals filed by the Company before the Commissioner of Income tax (Appeals) and thereafter with the Income Tax Appellate Tribunal (the

"ITAT") were decided against the Company. Against the decision of the ITAT, the Company filed appeals before the High Court (the "HC") which

were also decided against the Company in March 2012. Against the decision of the HC, the Company filed further appeals before the Honourable

Supreme Court of Pakistan (SCP) along with stay application which are pending adjudication.

In order to restrict the penal exposure ofthe Company, in May 2012 the Company availed the scherne offered by the FBR vide SRO 547(l)/2012

dated May 22,2012 and made payment of Rs. 1,615 million. In accordance with the scheme, the FBR has informed the Company that p€nalties and

default surcharge amounting to Rs. 2,925 million levied on the Company in connection with the above tax demand have been waived.

The Company's case in the SCP will continue as provided in the above SRO. The management and their tax and legal advisors are of the opinion that

the position of the Company is sound on technical basis and eventual outcome ought to be in favour of the Company in the case filed before the

SCP. Pending the outcome ofthe case, no provision has been made in these condensed interim financial statements.

12.2 There is no material change in the status of contingencies and commitments as disclosed in the annual financial statements of the Company for the

year ended June 30,2013 except as follows:

During the period, WAPDA has informed the Company of its intention to impose liquidated damages (LDs) amounting to Rs. 235 million due to non'

availability ofHub Power Plant for electricity generation. The plant was unavailable for electricity generation because ofshortage offuel caused by

delay in payments by WAPDA. The Company is strongly contesting this maner and will take appropriate legal measures to vigorously defend its

position.

The management is confident that this matter will be decided in its favour and, therefore, no provision has been made in these condensed interim

financral statements. U1fV4,

n.2

I t.3

13

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13. RELATf,D PARTY TRANSACTIONS AND BALANCES

Related party comprises subsidiary, associated companies, companies where directors also hold directorship, retirement benefits fund and key management

personnel. Significant transactions and balances with related parties, other than those which have been disclosed elsewhere in these condensed interim

financial statements are as follows:


Dec 2013 Dec 2012

Note (Rs.'00s) (Rs.'fi[s)

Subsidiary

Outstanding balance ofsubordinated loan to Subsidiary

Interest income on subordinated loan to Subsidiary

Interest receivable on subordinated loan to Subsidiary

Reimbursement of expenses from Subsidiary

Receivable from Subsidiary against reimbursement of expenses

Associated Undertakings

Interest income on placement of funds

Amounts paid for the purchase ofassets

Amounts paid for services rendered

Donation

Reimbursement of expense

Repayment oflong term loans

Accrued Markup on long term loans

Accrued Markup on short term borrowings

Interest / Mark-up on long term loans


Other finance costs

Other related parties


Repayment of short term borrowings and related Mark-up

Remuneration to key managernent personnel

Salaries, benefits and other allowances

Retirement benefits

Directors'fee

Contribution to staff retirement benefit plans

I 3, l In addition to above, the outstanding balance of long term loan includes Rs. I,3 l I million (June 201 3:

Limited (an associated undertaking).

13.2 Transactions with key management personnel are carried out under the terms of their employment. Key management personnel are also provided

with the use of Company maintained automobiles.

| 3.3 This represents fee paid to Board of Directors for attending meetings.

I 3,4 The transactions with related parties are made under normal commercial terms and conditions.

{{(.*+'

80.395

5,989

r 0,333

40,912

106,442

17,939

9,247

9,806

10,000

JL

63s,8 I 8

39,388

2,131

35 I,990

3,956

l 1,084

49

15,537

13.2

I J.J

--4ts4f 3optl

I o,osr I | 2,5s3 |

48,177 32,640

s,200 5,31s

3,690 4,946

-:

Rs. 1,354 million) payable to Askari Bank

14

@fm*lt,trctdoctty

14. CASII AND CASII EQUIVALENTS


Finances under mark-up arrang€ments

6 months codcd 6 monthc cndcdIhc 2013 Dcc 2012

(Rs.'fift) (R!.'lXXh)

294,923 407,241(r3A22,rr9) (24,483,397)

_a3,rn, 6)_ _Q4,u6J5o

lqbal Alimohamed

Director

15. DWIDEND

The Board ofDirectors deolared an interim divideNld for the halfyear ended Dec.ernber 31, 2013 ofRs. 2.50 per share, arnounting to Rs. 2,892.886 million,

at their meeting held on February 18, 2014. These condensed int€rim financial statements do not reflect this dividend payable which will be acoounrcd forin the period in which it is approved.

16. DATE OF AUTHORISATION

These condensed interim financial stat€m€nts were authorised for issue on February 18,2014 in accordance with the rcsolution ofthe Bord ofDirecton.

17. GENERAL

Figurcs have been round€d offto the nearest thousand rupoes.

9ar lz+'

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--[U*,ltl or.xlr-I$alid Mansoor

ChiefExecutive

15

@tru/tn th@8t cmtSy

THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATED

PROFIT AND LOSS ACCOUNT (UNAUDITED)FOR THE HALF YEAR ENDED DECEMBER3l,2OI3

Note

3 months ended

Dec 2013

(Rs.'000s)

40,661,436

(37,722,340)

3 months ended

Dec2012(Rs.'000s)

41,642,94r

(37,2r8,4r8)

79,734,448

(73,337,388)

89,959,377

(8 r,5 r 4,9 r 8)


Dec 2013 Dec20l2(Rs.'000s) (Rs.'000s)

Tumover

Operating costs

GROSS PROFIT


Other income



Finance costs

PROFIT BEFORETAXATION

Taxation

PROFIT FORTHE PERIOD

Attributable to:

- Owners of the holding company

- Non-controlling interest

Basic and diluted earnings per share attributable

to owners of the holding company (Rupees)

2,939,096

(t74,906)

24.418

4,424,523

( r 2 r,740)

I t,945

6,397,060

(324,837)

100,606

6,172,829

(2,702,759)

8,444,459

(226.tze)

16,658

2,788,608

(1,470,t99)

4,314,728

(1,5e8,4 l8)

8,234,988

(3,305,0 I 3)

I,3 I 8,409

( r,160)

2,716,310

(3,13 l)

3,470,070

(r,e55)

4,929,975

(3,943)

1,317,249

1,265,877

51,372

1,317,249

3,468, I l 5 4,926,032

2,716,550

(3,37r)

2.7 13.179

3,330,058

138,057

2.88

Iqbal Alimohamed

Director

4,932,585

(6,553)

4,926,032

2.35

The annexed notes from I to l8 form an integral part ofthese condensed interim consolidated financial statements.

It

Itt^FJ oxxar--Khalid Mansoor

Chief Executive

19

@Sro.dr rh@Sn cffio/

THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATED

STATEMENT OF COMPREHENSIVE INCOMf, (UNAUDITED)FOR THE IIALF YEAR ENDED DECEMBER 3I,2OI3

Profit for the period

Otber comprehensive income for the period

Actuarial losses on defined benefits plan

Attributable to:

- Owners of the holding company

- Non-controlling interest

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,314,266 2,709,856 3,462,149 49}2387

-:::

3 months ended 3 months cnded 6 months endcd 6 months ended

Dec 2013 Dec 2012 Dec 2013 Dec 2012

(Rs.'000s) (Rs.'000s) (Rs.'000s) (Rs. '000s)Resteted Restated

t,3t7,249 2,713,179 3,468,115 4,926,032

(2,e83) (3,323) (s,e66) (6,645)

1,262,894 2,713,227 3,324,092 4,925,940

st,372 (3,37r) 138,057 (6,s53)

lqbal Alimohamed

Director

_r 3r4 266_ ______2J0e,8s!_ ___3,4q4e_ -_l,ete,iu_


L----,Nqo\^u--Khalid Mansoor

Chief Executive

20

@3ruraf tfiru3ft ercryy

THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATEI)

BALANCE SHEETAS AT DECEMBER 31,2013

Dec 2013

(Rs.'000s)

Note (Unaudited)

8 63,047,965

1,431,515

34.892

1,993,61I

7, I 85,89 I

62,863,139

3,930,125

1,83 1,646

77,804,412

Jun 2013

(Rs.'000s)(Audited)

RestatedASSETS

NON-CURRENT ASSETSFixed Assets

Property, plant and equipment

Intangibles

Long term advance, deposits and prepayments

CURRENT ASSETS

Stores and spares

Stock-in-trade

Trade debts 9

Advances, deposit, prepayments and other receivables


TOTAL ASSETS

EOUITY AND LIABILITIES

SHARE CAPITAL AND RESERVE

Share CapitalAuthorised

Issued, subscribed and paid-up

Revenue Reserve


Attributable to owners of the holding company

NON-CONTROLLING INTEREST

NON.CURRENT LIABILITIESLong term loans

Liabilities against assets subject to finance lease

Defened liability - Gratuity

CURRENT LIABILITIESTrade and other payables

Interest / mark-up accrued

Short term bonowings

Cunent maturity of long term loans

Current maturity of liabilities against assets subject to

finance lease

COMMITMENTS AND CONTINGENCIES

TOTAL EQUITY AND LIABILITIES

63,858,995

t,441,365

32,790

142.318.784 I 18.941.234

12.000.000 t2,000,000

1t,571,544

20,285,287

t1,571,544

22,t68,390

3 1,856,83 I

1,297,330

33,739,934

1,159,273

33, l 54,16 I

33,783,689

3,484,853

4,287

34,899,207

35,540,428

3,423,721

3,674

l0

ll

l2

t42,3r8,784 I18.941.234


lU"h{ Gxor---Khalid Mansoor

Chief Executive

rq;ili;;;;A-Director

1,690,334

4,247,498

2s,925,964

3,365,639

18.378.649

53.608.084

53,263,965

1,278,725

13,422,1t9

3,7l7 ,566

209.419

71,891,794

35,545,725

r,959, I 75

4,s26,903

2,899,733

142,668

45,074,204

21

@groitft thrudr enerSy

THE HUB POWER COMPANY LIMITEDCONDENSED INTERIM CONSOLIDATEDCASH FLOW STATEMENT (UNAUDITED)

FOR THE HALF YEAR ENDED DECEMBER 3I.2OI3

CASH FLOWS FROM OPERATING ACTIVITIES

Profit before taxation

Adjustments for:

Depreciation

Amortisation

Loss / (gain) on disposal of fixed assets

Staff gratuity

Interest income

Interest / mark-up


Operating profit before working capital changes

Working capital changes

Cash (used in) / generated from operations

Interest received

Interest / mark-up paid

Taxes paid

Net cash used in operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditure

Proceeds from disposal offixed assets

Long term advance, deposits and prepayments

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid to owners of the holding company

Proceeds from long term loans - Subsidiary

Proceeds from liabilities against assets subject to finance

lease - Subsidiary

Repayment of long term loans - Hub plant

Repayment of long term loans - Narowal plant

Repayment of long term loans - Subsidiary

Repayment ofliabilities against assets subject to finance

lease - Subsidiary

Net cash used in financins activities

Net decrease in cash and cash equivalents

Cash and cash equivalents at the beginning ofthe period

Cash and cash equivalents at the end ofthe period I 5

6 months ended

Dec 2013

(Rs.'000s)

3,470,070

1,8r8,585

9,850

I

8,467

(7e,609)

2,590,023

41,970

6 months ended

Dec 2012

(Rs.'000s)

4,929,975

1,343,237

7,5t2(77)

s,096( 10,83 7)

3,395,790

29,154

7,849,357

(23,293,297)

9,689,850

(6,819,457)

(1s,443,940)

89,925

(3,03l,002)(4,403)

2,870,393

10,533

(3,449,586)

(5,664)

( r 8,3 89,420)

( r 32,506)

2,851

(2,102)

(574,324)

(2,503, r 25)

1,43 I

16,772

(131,7 57)

(5,r90,r46)

(489,53 I )(6e6, r 00)

(431,660)

(r r3,605)

(2,484,922)

(3,465,l oo)

2,200,002

605,440

(489,531)

(598,9-22)

(6,e21,042) ( r,748,0r r )

(25,442,219)

13,851,746

(4,807,2s7)

( r 8,348,271 )

( I I,590,473) (23,1 55,528)


lU^,lr$ s.$r.qts*Khalid Mansoor

Chief Executive

22

@gfowth drrouSfr encrSy

THE HUB POWERCOMPANY LIMITEDCONDENSED INTERIM CONSOLIDATED

STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE HALF YEAR ENDED DECEMBER 31.2OI3

6 months ended

Dec 2013

(Rs.'000s)

6 months ended

Dec2012(Rs.'000s)

Restated


Issued capital




Balance at the beginning ofthe period - restated


Transactions with owners in their capacity as owners

Final dividend for the fiscal year 2012-2013 @ Rs. 4.50

(2011-2012: @ Rs.3.00) per share

Reduction in controlling interest of the holding company



Advance against issue of shares to minority shareholders

Balance at the beginning ofthe period

Shares issued during the period


Non-controlling interest


Shares issued during the period


Reduction in controlling interest of the holding company


Total equity

n,57r,544 n,571,544

11,571,544 11,571,544

22,168,390

3,324,092

(s,207,r

(5,207, l es)

19,612,t98

4,925,940

20,285,287 21,067,572

3l,856,831 32,639,tt6

74,48r

(74,48t)

946,014

74,481

(6,553)

(8e7)

1,297,330 I,013,045

33,154,16t 33,652,t61

The annexed notes from I to l8 form an integral part ofthese condensed interim consolidated financial statements,

1,159,273

138,057

U-td&',^rar---Khalid Mansoor

Chief Executive

tquuiTffi6fruillJ'_-_-Director

23

@grwtb tiru3fi m4y

THE HUB POWER COMPANY LIMITEDNOTES TO THE CONDENSED INTERIM

CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)FOR THE HALF YEAR ENDED DECEMBER 3I,2OI3

I. STATUS AND NATURE OF BUSINESS

The Hub power Company Limited (the "holding company") was incorporated in Pakistan on August l, l99l as a public limited company undo the

Companies Ordinance, 1984 (the "Ordinance"). The shares ofthe holding company are listed on the Karachi, Lahore and Islamabad Stock Exchanges and

its Global Depository Receipts are listed on the Luxembourg Stock Exchange. The principal activities of the holding company are to develop, own, operate

and maintain power stations. The holding company owns an oil-fired power station of 1,200 MW (net) in Balochistan (Hub plant) and a2l4 MW (net) oil-

fired power station in Punjab (Narowal plant).

The Group consists of:

. The Hub Power Company Limited (the holding company); and

. Laraib Energy Limited (the subsidiary) - Holding of 74.95oh'

The subsidiary was incorporated in Pakistan on August 9, 1995 as a public limited company under the Companies Ordinance, 1984. The subsidiary owns a

84 MW hydropower generating complex near the New Bong Escape, which is 8 km downstream of the Mangla Dam in Azad Jammu & Kashmir. The

hydel power plant commenced operations on March 23,2013. As per the terms of the Power Purchase Agteement (PPA), the Reference Tariffapproved by

the National Electric power Regulatory Authority (NEPRA) is to be adjusted at Commercial Operation Date (COD) and the subsidiary is in the process of

obtaining tariff adjustment from NEPRA. These condensed interim consolidated financial statements include revenue on the basis of Reference Tariff and

the differential amount of revenue due to tariff adjustment will be recognized in the subsequent period.

2. SIGNIFICANTACCOUNTING POLICIES

The accounting policies and methods ofcomputation followed for the preparation ofthese condensed interim consolidated financial statements are same as

those applied in preparing the consolidated financial statements for the year ended June 30, 2013 except as follow:

Change in accounting standards, interpretations and pronouncements

During the period, the holding company has adopted Revised IAS 19 -'Employee Benefits'. As per revised standard, actuarial gains and losses for

defined benefit plans are recognised in other comprehensive income when they occur. Amounts recorded in profit and loss are limited to current and

past service costs, gains or losses on settlements, and net interest income / (expense). All other changes in the net defined benefit asset / (liability) are

recognised in other comprehensive income with no subsequent recycling to profit and loss.

The adoption ofabove revised standard has resulted in change in accounting policy ofthe holding company related to recognition ofactuarial gains

and losses to recognise actuarial gains and losses in total in other comprehensive income in the period in which they occur. Previously, actuarial gains

or losses in excess of l0% ofthe actuarial liability or plan assets were recognised in profit and loss account over the expected average working life of

the employees. The impact of the said changes on these condensed interim consolidated financial statements is as under:

Net decrease in unappropriated profit attributable to the owners of the holding company as at July 0l ,2012

Net decrease in other comprehensive income attributable to the owners ofthe holding mmpany for the period ended

December 3 l. 201 2

(Rs.'000s)

10,063

3. BASIS OF PREPARATION

These unaudited condensed interim consolidated financial statements for the halfyear ended December 31, 2013 have been prepared in accordance wtth

the requiremcnts of IAS 34 ,,lnterim Financial Reporting" and provisions of and directives issued under the Ordinance. In case requirements differ, the

provisions of and directives issued under the Ordinance have been followed.

These condensed interim consolidated financial statements do not include all the information and disclosures as required in the annual consolidated

financial statements and should be read in conjunction with the annual consolidated financial statements for the year anded June 30, 2013.

OPERATING COSTS

Fuel cost

Water use charges

Stores and spares

Operation and Maintenance

Insurance

Depreciation

Amortisatron

Repairs, maintenance and other costs

6.645


Dec 2013 Dec 2012

(Rs.'000s) (Rs.'ffi0s)


Dec 2013 Dec 2012(Rs.'000s) (Rs.'000s)

34,682,921 35,094,469

20,925't16,925 118,271

1,040,987 87 5,l2l274,131 215,671

896,77t 664.237

4,109 2,752

685,s71 247,897

67,674,726

3l,000222,720

2,055,850

542,246

I,804,316

9,429

997,101

77,356,6t5

156,753

|,799,931

423,507

1,329,0t1

5,505

443,596

37,722,340 37,2t8,418 73,337,388 81,511p18+:::

24

@gMh thwgh cGrgl

WORKERS' PROFIT PARTICIPATION FUND

Provision for Workers' profi t participation fund

Workers' profi t participation fund recoverable

from WAPDA / NTDC

3 months ended 3 months endcd

Dec 2013 Dec 2012

(Rs.'000s) (Rs.'000s)

66,416 l3l,4l5

(66,416) (13r,415)

6 months cnded 6 months ended

Dec 2013 Dec 2012

(Rs.'{Xms) (Rs.'000s)

174,494 237,093

(174,494) (237,0e3)

The holding company and its subsidiary are required to pay 5% ofits profit to the Workers'profit participation fund (the "Fund"). However, such payments

do not affect the holding company and its subsidiary's overall profitability because after payments to the Fund, the holding company and its subsidiary will

bill this to Water and Power Development Authority (WAPDA) / National Transmission and Despatch Company Limited (NTDC) as a pass through item

under the PPAs.

3 months endcd 3 months ended 6 months ended 6 months ended

Dec 20t3 Dec 2012 Dec 20t3 Dec 2012

(Rs.'000s) (Rs.'fi[s) (Rs.'000s) (Rs.'ffi0s)

FINANCE COSTS

lnterest / mark-up on long term loans

lnterest on finance lease


Amortisation of transaction costs

Other finance costs

Less: amount capitalised in the cost of qualifuing assets

TAXATION

Currenl

- For the period

- Prior year

1,470,199 2,702,759 3,305,013:

1,955

-

Dec 2013

(Rs.'000s)

(Unaudited)

62921,581

3,943

PROPERTY, PLANT AND EQUIPMENT

Operating property, plant and equipment

Capital work-in-progress

Holding company

Subsidiary

1,010,049

49,714

339,993

26,576

43,867

1,470,199

l , I 39,908

5t,t27719,l 8l

14,783

64,230

r,989,229

(390,8 I I )

----112!..11!-

2,019,206

99,4t5461,402

4l,97080,766

2.702,759

2,354,211

88,226

\,449,041

29,1s4

t29,993

4,050,625

(74s,6t2)

,f

I,160 2,634

497

I,955 3,446497

8.

Jun 2013

(Rs.'Offis)

(Audited)

63,743,063

126j84 |5932

8.1 63.047.965 63,858,995

8.1 Additions to property, plant and equipment during the period were Rs. 132.506 million and disposal therefrom at net book value were Rs. 2.852

million.Dec 20t3

(Rs.'000s)

Note (Unaudited)

TRADE DEBTS - Secured

Considered good e. | 62,863,139 25,92s,964::

9.1 These receivables include an overdue amount of Rs.43,890 million (June 2013: Rs. 12,047 million) from WAPDA and Rs. 2,896 million (June

2013: Rs. 843 million) from NTDC. These are not impaired because the trade debts are secured by a guarantee from the Govemment of Pakistan

under Implementation Agreements.

a Tzltra-- brr6lI s3,e6s | | 48,663 |

Jun 2013

(Rs.'000s)

(Audited)

9.

25

@gwth tl@gl ercW

The delay in payments from WAPDA carries mark-up at State Bank of Pakistan (SBP) discount rate phts 2oh per annum compounded semi-annually

and the delay in payment from NTDC carries mark-up at a rate of three / six month KIBOR plus 2%' to 4.5Yo per annum compounded semi'annually.

IO. TRADE AND OTHf,RPAYABLES

This includes Rs.47,737 million (June 2013: Rs. 29,785 million) payable to Pakistan State Oil Company Limited (PSO), out of which overdue amount is

Rs. 40.948 million (June 2013: Rs. 20,520 million).

The delay in payments to PSO carries mark-up at SBP discount rate plus 2%o pa annum compounded semi-annually.

Dec 2013 Jun 2013

(Rs.'00ft) (Rs.'0(X)s)


SHORT TERM BORROWINGS - Secured

Holding company

Finances under mark-up arrangements ll.l to ll.3 13,422,119 4526903

I l.l The facilities for running finance available to the holding company from various banks / financial institutions amounted to Rs. 21,665 million (June

2013: Rs. 21,965 million) at mark-up ranging between 0.75o/oto 3.00% per annum above one / three month KIBOR. The mark-up on the facilities is

payable on monthly / quarterly basis in arrear. The facilities expire during the period from December 31,20t3 to October 02,2014. Any late

payment by the holding company is subject to an additional payment of 2.00%o per annum above the normal mark-up rate.

ll.l.l ThefacilitiesamountingtoRs. l6,740million(June20l3: Rs. l7,040million)aresecuredbywayofchargeoverthetradedebtsandstocksofthe holding company pari passu with the existing charge.

l l l.2 The facilities amounting to Rs. 4,925 million (June 20l3: Rs. 4,925 million) are secured by way of:

(a) a first ranking charge on all present and future (i) amounts standing to the credit of the Energy Payment Collection Account and the

Master Facility Account, (ii) Fuel, lube, fuel stocks at the Narowal plant and Spares parts; and (iii) the Energy Payment Receivables

of Narowal plant.

(b) a subordinated charge on all present and future plant, machinery and equipment and other moveable assets of the Narowal plant

excluding; (i) the immoveable properties; (ii) Hypothecated Assets under first ranking charge; (iii) the Energy Payment Collection

Account, Working Capital Facility Accounts and the Master Facility Account; (iv) the Energy Payment Receivables; (v) all of the

Project Company's right, title and interest in the Project Documents (including any receivables thereunder); and (vi) all current

assets.

ll.l.3 ThisincludesasumofRs.2T5million(June2013: Rs.Nil)payabletoanassociatedundertaking.TheavailablefacilityamountedtoRs.275 million (June 2013: Rs. 275 million). This facility is secured by way of securities mentioned in note I1.1.2.

The holding company also has Murabahah facility agreenrents with banks for an amount of Rs. 625 million (June 2013: Rs. 625 million) at a mark-

up of 2.00% per annum above three month KIBOR. The mark-up on the facilities is payable on quarterly basis in anear. These facilities will exptre

on August 28, 2014. Any late payment by the holding company is subject to an additional payment of 4.00%o per annum above the normal mark-up

rate. These facilities are secured bv wav of securities mentioned in note I l. I .2.

The holding company also entered into a Musharaka agreement amounting to Rs. 635 million (June 2013: Rs. 635 million) at a mark-up of 2.00%

per annum above three month KIBOR. The mark-up on the facility is payable on quarterly basis tn anear. This facility will expire on October 31,

2014. Any late pa).rnent by the holding company is subject to an additional payment of2.00%o per annum above the normal mark-up rate. Thts

facility is secured by way of securities mentioned in note I I . I .2 (a).

I1.3

26

@g@wth tiDu8ft crcrry

I2. COMMITMENTS AND CONTINGENCIES

l2.l Intgg8,theFederalBoardofRevenue(FBR)madeassessmentsundersection52/86ofthelncomeTaxOrdinance,l9T9[lTO,79]amountingtoRs.I.896 million stating that the holding company did not withhold tax at the time ofissue ofshares to sponsors against project development costs

incuned by them. The holding company deposited Rs. 297 million against the above assessments in accordance with the departmental procedures

prevalent at that time. Appeals filed by the holding company before the Commissioner of lncome tax (Appeals) and thereafter with the Income Tax

Appellate Tribunal (the "|TAT") were decided against the holding company. Against the decision of the ITAT, the holding company filed appeals

before the High Court (the "HC") which were also decided against the holding company in March 2012. Against the decision of the HC, the holding

company filed further appeals before the Honourable Suprerne Court ofPakistan (SCP) along with stay application which are pending adjudication.

In order to restrict the penal exposure ofthe holding company, in May 2012 the holding company availed the scheme offered by the FBR vide SRO

547(l)/2012 dated May 22,2012 and made payment of Rs. 1,615 million. In accordance with the scheme, the FBR has informed the holding

company that penalties and default surcharge amounting to Rs. 2,925 million levied on the holding company in connection with the above tax

demand have been waived.

The holding company's case in the SCP will continue as provided in the above SRO. The management and their tax and legal advisors are oftheopinion that the position of the holding company is sound on technical basis and eventual outcome ought to be in favour of the holding company in

the case filed before the SCP. Pending the outcome of the case, no provision has been made in these condensed interim consolidated financial

statements.

12.2 There is no material change in the status of contingencies and commitments as disclosed in the annual consolidated financial statements of the

holding company for the year ended June 30, 2013 except as follows:

During the period, WAPDA has informed the holding company of its intention to impose liquidated damages (LDs) amounting to Rs.235 million

due to non-availability of Hub Power Plant for electricity generation. The plant was unavailable for electricity generation because of shortage of fuel

caused by delay in payments by WAPDA. The holding company is strongly contesting this matter and will take appropriate legal measures to

vigorously defend its position.

The management is confident that this matter will be decided in its favour and, therefore, no provision has been made in these condensed interim

consolidated financial statements.

27

@gwth th@gh crcrgl

13. SEGMENT INFORMATION

I3.I SEGMENT ANALYSIS

The unallocated items of profit and loss relate to costs incurred by the holding company for investment in the subsidiary. The unallocated liabilities

represent amounts payable in respect of investment in the subsidiary.

"",;;;; ;;;;;;;;;;;:'""I:l#":""'";;;;:;;; ;;;. (Rs. '000s)

Tumover

Operatrng costs

GROSS PROFIT


Other income

Workers' profi t participation fund


Finance costs


Taxation

PROFIT FOR THE PERIOD

Tumover

Operating costs

GROSS PROFIT


Other income

Workers' profi t partrcipation fund


Finance costs


Taxation


Tumover

Operating costs

GROSS PROFIT


Other income

Workers' profi t participation fu nd


Finance costs


Taxation


32,045,263 7,719,710 896,463

(30,s6s,936) (6,783,749) (372,6ss\

- 40,66t,436

- (37,722,t40)

|,479,327

( r 08,623)

l 0,578

|,J9l,282

(322,560)

t,osl:rn

935,96 I

(38,s30)

2.876

523,808

(27,457)

10,964

- 2,939,096

(296) (174,9061

24,4t8

(296) 2,788,608

(t26,42s) (1.470,199)

198,293 (126,721) | ,31 8,409

(1,160)(248)

1,0s8,722 t87,203 t98,293 (t26,969) |,317,249

-:::-

3 months ended Dec 2012 ....,..........

Hub plrnt Narowrl plant Larrib plant Unellocated Totrl

........ (Rs. '000s) ..........'.

- 4t,642,941

900,307

(7t2,192\

507,3 l 5

(309,022)

188,1 l5

(el2)

34,570,197 7,072,744

(3t ,664,279) (s,s54,139)

2,905,918

(90,708)

4,952

,,8ra16,

(462.st2)

I,518,605

(t6,3t2)

3,353

( l 4,660)

3,640

1,505,626

( I ,098,266)

(r r,020)

(177)

(r r,re7) (37,503)

(2,2se)

- 4,424,523

(40) (12r,740)

- l r,945

(40) 43t4J'f

(37,463) (1,s98,418)

2,7t6,310

(3,lll)407,360

(872)

2,357,650 406,488 (13,456) (37,503) 2.713,179

6 months cnded Dec 2013 .......'.......

Hub plent Narowal plent Lrrrib plent Unellocetcd Total

,......- (Rs.'000s) ............

2,357,650

63,1 10,610 14,709,662

(s9,8s2,7t9\ (12,739,44t)

|,914,176

(74s,228)

79,734,448

(73,337,388)

3,257,891

(2 | 3,865)

59,474

3, I 03,500

(477,364)

L62f-tt6

1,970,221

(46.638)

6,836

1,168,948

(63,74 l )

34,296

560.175 537,309

- 6,397,060

(s93) (324,837)

l 00,606

(s93) 6,t72.829

(2s2,9s7) (2,702,7s9)

(rs3Jso) \4?09n

(418) (r,9ss)

I ,930,419

(t,370,244)

I , I 39,503

(602,194)

- ( 1.s37)

,.616.136 558.538 537 30c (r53r%8) 3,468,1 15

28

@fvqdr th@Sn cncrfgr

6 months endcd Dcc 2012

Hub plrnt Narowel plrnt Lrreib plrnt Unellocrtcd Totrl

........ (Rs.'000s) ............

Tumover

Operating costs

GROSS PROFIT


Other income



Finance costs


Taxation


I3.2 SEGMENT ASSETS & LIABILITIES

TOTAL ASSETS

TOTAL LIABILITIES

TOTAL ASSETS

TOTAL LIABILITIf,S

7s,671,858 14,287,5t9

(70,37t,40s) (r l,l43,sl3)

- 89,959,377

- (81,s r4,9r 8)

5,300,453

(t70,76t)

7,534

5,t37 216

(848,964)

3,t44,006

(27,391)

4,l0l

(27,8t3)

5,023

- 8,444,459

(164) (226.t29)

(164) 8,234,e88

(80,807) (3.30s,013)

(80,97t) 4,929,975

- (3,943\

t6,658

3,120,7t6

(2,174,944)

(22,7e0)

(2e8)

4,288,262 745,772

(872)

(23,088)

(3,07r )

4,288,262 744,900 (26,159) (80,971) 4,926,032

(Unauditcd) ....,

Dec 2013

Hub plant Nerowal plant Larrib plent Unallocated Totrl

(Rs.'ffi0s)

8s,962,976 31,637,932 24,717,006 870 r42,3t8,784

--:::

63,103,867 24,736,195 l'1,025,234 4,299,327 109,164,623:+-:::(Auditcd) .........Jun 2013

Hub plent Narowal plant Larrib phnt Undlocatcd Totrl

,........ (Rs.'000s) ............Restrted RestNtcd RestNted

69,261,622 25,199,749 24,479,863 - 1t8,94t234::::::--:::40,74t,783 21,582,605 17,419,046 4,298,593 84,042,027::-::::

29

@go*i tho3h reryr

14. RELATED PARTY TRANSACTIONS AND BALANCES

Related party comprises associated companies, companies where diroctors also hold directorship, retirement benefits fund and key management personnel.

Significant transactlons and balances with related parties, other than those which have been disclosed elsewhere in these condensed interim consolidated

financial statements are as follows:

6 months cnded 6 months endcd

Dec 2013 Dec 2012

Note (Rs.'fi)Os) (Rs.'0ffis)

Associated Undertakings

Shares issued to an associated undertaking ofthe subsidiary

Interest income on placement of funds

Amounts paid for the purchase of assets

Amounts paid for services rendered

Donation

Reimbursement of expense

Repayment oflong term loans

Accrued Markup on long term loans

Accrued Markup on short term borrowings

Interest / Mark-up on long term loans

Mark-up on short term bonowings

Other finance costs

Other related parties

Mark-up on short term bonowings

Repayment of short term borrowings and related Mark-up

Remuneration to key management personnel

Salaries, benefits and other allowances

Retirement benefits

Directors'fee

Contribution to staffretirement benefit plans

l4.l In addition to above, the outstanding balance oflong term loan includes Rs. l,3l I

:t7,939

9,247

9,806

10,000

32

635,8r 8

39,388

L,l) |:351,990

1 A56:I I,084

I 5.537

- 5r,?7:frf-- 4qr8, I

I t:,otl I r.qre I

60,534 44,918

7,200 5,565

4,730 6,112::million (June 2013: Rs. 1,395 million) payable to Askari Bank

Limited (an associated undertaking).

Transactions with key management personnel are carried out under the terms of their employment. Key management personnel are also provided

with the use of Company maintained automobiles.

This represents fee paid to Board of Directors for attending meetings.

The transactions with related parties are made under normal commercial terms and conditions.

14.2

14.3

t4.2

t4.3

t4.4

30

@gudtltotti crcOt

15. CASH AND CASH EQUryALENTS


Finances under msrk-up arangeme'nts

16. DIVIDEND

The Board ofDirectors ofthe holding company declared an interim divid€nd for thc halfyear ended Decenrber 31, 2013 ofRs. 2.50 per share, stnounting

to Rs. 2,892.8E6 million, at their meeting held on February 18, 2014. These condensed interim consolidated financial staternents do not reflect this dividend

payable which will be accounted for in the pcr'iod in which it is ryproved.

17. DATE OF AUTHORISATION

These condensed interim consolidated financial stat€,ments were authorised for issuc on February 18,2014 in accordance with the rqolution ofthe Board

of Dircctors.

18. GENERAL

Figures have been rounded offto the nearest thousand rupoes.

5 monlbr rndcd 6 mooths cndcdIh.20l3 lhc 2012

(Rc.'lXlG) (R!.'lXXts)

I,E31,646 1,327,E69

(r3,422,rr9) (24,483,397)

(il,590,473) (23,r55,528):-

fltrtJ &r.xn-t-Khalid Mansoor

Chief Executive

tt---.-" -1cf

lqbal Alimohamed

Director

31