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N I S H A T

�Half Yearly Report 20�0

Nishat Power Limited


Company Profile 3

Directors’ Report 4

Auditors’ Report to the Members on Review of

Interim Financial Information 5

Condensed Interim Balance Sheet 6

Condensed Interim Profit and Loss Account 8

Condensed Interim Statement of Comprehensive Income � �

Condensed Interim Cash Flow Statement 10

Condensed Interim Statement of Changes in Equity 11

Selected Notes to the Condensed Interim Financial Information 12

CONTENTS

2 Half Yearly Report 20�0




COmpaNy prOfilE

BOarD Of DirECTOrS MIAN RAzA MANShA ChAIRMAN MIAN hASSAN MANShA ChIEF ExECutIvE MR. KhALID QADEER QuREShI SyED hASAN IRtIzA KAzMI NoMINEE NBP MR. MuhAMMAD ShAhzAD SADIQ NoMINEE ABL MR. AFtAB AhMAD KhAN MR. ShAhzAD AhMAD MALIK aUDiT COmmiTTEE MR. KhALID QADEER QuREShI MEMBER/ChAIRMAN MR. AFtAB AhMAD KhAN MEMBER MR. ShAhzAD AhMAD MALIK MEMBER CHiEf fiNaNCial OffiCEr MR. tANvIR KhALID COmpaNy SECrETary MR. KhALID MAhMooD ChohAN BaNKErS Of THE COmpaNy hABIB BANK LIMItED uNItED BANK LIMItED ALLIED BANK LIMItED NAtIoNAL BANK oF PAKIStAN BANK ALFALAh LIMItED FAySAL BANK LIMItED aUDiTOrS A.F. FERguSoN & Co. ChARtERED ACCouNtANtS lEGal aDViSOr CoRNELIuS, LANE & MuFtI ADvoCAtES & SoLICItoRS rEGiSTErED OffiCE 53-A, LAwRENCE RoAD, LAhoRE, PAKIStAN tEL: 042-111-11-33-33 HEaD OffiCE 7-MAIN guLBERg, LAhoRE, PAKIStAN tEL: 042-3571651-� (NINE LINES), 042-111-33-22-00 FAx: 042-3571634�-50 SHarE rEGiSTrar hAMEED MAjEED ASSoCIAtES (Pvt) LIMItED FINANCIAL & MANAgEMENt CoNSuLtANtS h.M. houSE, 7-BANK SQuARE, LAhoRE, PAKIStAN tEL: 042-37235081-2 plaNT 66 – K.M. MuLtAN RoAD, jAMBAR KALAN PAtoKI, DIStRICt KASuR

� Half Yearly Report 20�0


DirECTOrS’ rEpOrT

the Board of Directors of Nishat Power Limited is pleased to present their report together with interim account for the half year ended December 31, 200� along with limited review report of the external auditors of the Company.

listing of the Companythe Company was listed on Karachi and Lahore stock exchanges on october 07, 200�.

project progressDuring the period, the Company has successfully completed pre-synchronization tests and during testing and commissioning phase it has started selling test energy to National transmission and Despatch Company (NtDC). however, due to country’s precarious security /law and order situation, restrictions on foreign nationals to visit Pakistan, the company was unable to achieve Required Commercial operation Date of 31st December 200� as given in Power Purchase Agreement (PPA).

During first week of january 2010, the Plant experienced some technical/teething problems due to which process of testing has been stopped till todate. the company has taken up the matter with EPC Contractor M/s wartsila, who is taking remedial measures on war footings to restore the Plant operations, so that full load testing required under PPA could be resumed.

Operating financial results;

Quarter ended Half year ended

highlights December 31, December 31, December 31, December 31, 2009 2008 2009 2008 restated restated rupees rupees rupees rupees

other operating income 3,795,643 724,230 5,590,687 1,231,533 Administrative expenses (9,002,768) (631,�08) (11,722,529) (1,352,�45)Finance cost (3,932,446) (25,542,716) (3,936,828) (23,426,816)

loss before taxation (9,139,571) (25,450,3�4) (10,068,670) (23,548,228)

taxation (1,956,740) (�31,874) (1,956,740) (�31,874)

loss after taxation (11,096,311) (26,382,268) (12,025,410) (24,480,102)

Loss per share - basic and diluted (0.031) (0.382) (0.035) (0.354)

the Company has incurred loss of Rs.10.068 million before charging provision for taxation of Rs.1.�56 million. Since the project is in construction phase, therefore administrative expenses have been charged to Profit & Loss Account in accordance with the requirements of International Accounting Standard 16 – Property, Plant and Equipment and sales revenue from trial production amounting to Rs.7�8.76� million has been allocated to Project Cost.

Financial highlights, based on limited review report for the period ended December 31, 200�, are as below:

the existing cost of property, plant and equipment is Rs. 16.435 billion. Issued, subscribed and paid up capital of the company is Rs. 3.540 billion. Long term Financing against the project is amounting to Rs. 13.884 billion. Subordinated loan for purchase of Fuel is Rs. 472.885 million. working Capital Financing for the purchase of Fuel is Rs. 1.287 billion.

future prospectsthe Company is expected to achieve Commercial operation Date by the end of 3rd quarter of fiscal year i.e. by March 2010 subject to successful completion of Reliability Run tests as required under PPA.

Chief ExecutiveLahore: February 11, 2010



introduction

we have reviewed the accompanying condensed interim balance sheet of Nishat Power Limited as at December 31, 200� and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement and condensed interim statement of changes in equity for the half year then ended (here-in-after referred to as the “interim financial information”). Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. our responsibility is to express a conclusion on this interim financial information based on our review. the figures of the condensed interim profit and loss account for the quarters ended December 31, 2008 and 200� have not been reviewed, as we are required to review only the cumulative figures for the half year ended December 31, 200�.

Scope of review

we conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information as of and for the half year ended December 31, 200� is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting.

Chartered accountants,Lahore: February 11, 2010

aUDiTOrS’ rEpOrT TO THE mEmBErS ON rEViEW Of iNTErim fiNaNCial iNfOrmaTiON



Un-audited Audited Note December 31, june 30, 2009 200� Restated rupees RupeesEQUiTy aND liaBiliTiES CapiTal aND rESErVES Authorised capital 500,000,000 (june 30, 200�: 500,000,000) ordinary shares of Rs 10 each 5,000,000,000 5,000,000,000 Issued, subscribed and paid up capital 354,088,500 (june 30, 200�: 2�1,250,000) ordinary shares of Rs 10 each 3,540,885,000 2,�12,500,000 unappropriated profit 15,174,929 27,200,33�

3,556,059,929 2,�3�,700,33� NON-CUrrENT liaBiliTiES Long term financing - secured 5 13,410,974,626 11,3�6,546,271 Subordinated loan - unsecured 6 472,885,200 -

13,883,859,826 11,3�6,546,271 CUrrENT liaBiliTiES Current portion of long term financing - secured 5 473,095,230 253,43�,�83 Short term borrowings - secured 1,287,034,969 - trade and other payables 14,491,343 �,634,51� Accrued finance cost 539,221,460 436,0�4,554 Provision for taxation 3,359,292 2,000,672

2,317,202,294 701,16�,728 CONTiNGENCiES aND COmmiTmENTS 7 19,757,122,049 15,037,416,338

the annexed notes 1 to 13 form an integral part of this condensed interim financial informa-tion.

CONDENSED iNTErim BalaNCE SHEET (uN-AuDItED)AS At DECEMBER 31, 200�

CHiEf ExECUTiVE



Un-audited Audited Note December 31, june 30, 2009 200� Restated rupees Rupees

aSSETS NON-CUrrENT aSSETS Property, plant and equipment 8 16,435,781,555 14,�70,510,463 CUrrENT aSSETS Stores, spares and loose tools 144,034,493 - Stock-in-trade 1,075,344,145 128,735 trade debts 581,334,858 - Advances, deposits, prepayments and other receivables 188,144,102 8,585,887 Cash and bank balances 1,332,482,896 58,1�1,253

3,321,340,494 66,�05,875

19,757,122,049 15,037,416,338

DirECTOr



CHiEf ExECUTiVE DirECTOr

CONDENSED iNTErim prOfiT aND lOSS aCCOUNT (uN-AuDItED) FoR thE QuARtER AND hALF yEAR ENDED DECEMBER 31, 200�


December 31, December 31, December 31, December 31, 2009 2008 2009 2008 Restated Restated rupees Rupees rupees Rupees

other operating income 3,795,643 724,230 5,590,687 1,231,533 Administrative expenses (9,002,768) (631,�08) (11,722,529) (1,352,�45) Finance cost (3,932,446) (25,542,716) (3,936,828) (23,426,816) loss before taxation (9,139,571) (25,450,3�4) (10,068,670) (23,548,228) taxation (1,956,740) (�31,874) (1,956,740) (�31,874) loss after taxation (11,096,311) (26,382,268) (12,025,410) (24,480,102) Loss per share - basic and diluted (0.031) (0.382) (0.035) (0.354) the annexed notes 1 to 13 form an integral part of this condensed interim financial informa-tion.



CONDENSED iNTErim STaTEmENT Of COmprEHENSiVE iNCOmE (uN-AuDItED) FoR thE QuARtER AND hALF yEAR ENDED DECEMBER 31, 200�



December 31, December 31, December 31, December 31, 2009 2008 2009 2008 Restated Restated rupees Rupees rupees Rupees

Loss after taxation (11,096,311) (26,382,268) (12,025,410) (24,480,102)other comprehensive income - - - - total comprehensive loss (11,096,311) (26,382,268) (12,025,410) (24,480,102) the annexed notes 1 to 13 form an integral part of this condensed interim financial informa-tion.

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CONDENSED iNTErim CaSH flOW STaTEmENT (uN-AuDItED)FoR thE hALF yEAR ENDED DECEMBER 31, 200�

July 01 to December 31

Note 2009 2008 (Restated) rupees Rupees

Cash flows from operating activities Cash (used in)/generated from operations � (1,990,494,510) 45�,846,640 taxes paid (598,120) (871,727)Employees retirement benefits paid (390,413) -

Net cash (outflow)/inflow from operating activities (1,991,483,043) 458,�74,�13 Cash flows from investing activities Fixed capital expenditure (1,362,204,772) (2,166,475,080)Profit on bank deposits received 5,590,687 1,231,533

Net cash outflow from investing activities (1,356,614,085) (2,165,243,547) Cash flows from financing activities Proceeds from long term financing 2,234,083,602 1,725,606,�33 Proceeds from subordinated loan 472,885,200 - Proceeds from issuance of share capital 628,385,000 3��,�00,000

Net cash inflow from financing activities 3,335,353,802 2,125,506,�33 Net (decrease)/increase in cash and cash equivalents (12,743,326) 41�,238,2�� Cash and cash equivalents at the beginning of the period 58,191,253 2,384,312

Cash and cash equivalents at the end of the period 10 45,447,927 421,622,611 the annexed notes 1 to 13 form an integral part of this condensed interim financial informa-tion.


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CONDENSED iNTErim STaTEmENT Of CHaNGES iN EQUiTy (uN-AuDItED)FoR thE hALF yEAR ENDED DECEMBER 31, 200�

Unappropriated

Share profit /

Share deposit accumulated Total

capital money (loss)

-------------------------------- rupees--------------------------------

Balance as on June 30, 2008 - restated (audited) 800,000,000 12,600,000 (8,6�7,187) 803,�02,813

Receipt of share deposit money - 3��,�00,000 - 3��,�00,000

Issuance of ordinary shares against share deposit money 412,500,000 (412,500,000) - -

total comprehensive loss for the half year ended

December 31, 2008 as restated - refer note 4 - - (24,480,102) (24,480,102)

Balance as on December 31, 2008 - restated (unaudited) 1,212,500,000 - (33,177,28�) 1,17�,322,711

Receipt of share deposit money - 1,700,000,000 - 1,700,000,000

Issuance of ordinary shares against share

deposit money 1,700,000,000 (1,700,000,000) - -

Share issuance cost, net (includes underwriting

commission of Rs 4,3�8,777 to

Allied Bank Limited, a related party) - - (11,057,507) (11,057,507)

total comprehensive income for the half

year ended june 30, 200� as restated - refer note 4 - - 71,435,135 71,435,135

Balance as on June 30, 2009 - restated (audited) 2,�12,500,000 - 27,200,33� 2,�3�,700,33�

Receipt of share deposit money - 628,385,000 - 628,385,000

Issuance of ordinary shares against share deposit money 628,385,000 (628,385,000) - -

total comprehensive loss for the half year ended

December 31, 200� - - (12,025,410) (12,025,410)

Balance as on December 31, 2009 (unaudited) 3,540,885,000 - 15,174,�2� 3,556,05�,�2�

the annexed notes 1 to 13 form an integral part of this condensed interim financial information.


�2 Half Yearly Report 20�0


NOTES TO aND fOrmiNG parT Of THE CONDENSED iNTErim fiNaNCial iNfOrmaTiON (uN-AuDItED) FoR thE QuARtER AND hALF yEAR ENDED DECEMBER 31, 200�

1. THE COmpaNy aND iTS aCTiViTiES

Nishat Power Limited (‘the company’) is a public limited company incorporated in Pakistan. the company is a subsidiary of Nishat Mills Limited. During the period, the holding company, Nishat Mills Limited divested its holding in the company through offer for sale of 22,500,000 ordinary shares of the company to the public through listing of the company’s ordinary shares on the Karachi Stock Exchange (guarantee) Limited and Lahore Stock Exchange (guarantee) Limited. Consequently, the Listing Regulations of the Karachi and Lahore Stock Exchanges are now applicable to the company.

the principal activity of the company is to build, own, operate and maintain a fuel fired power station having gross capacity of 200 Mw in jamber Kalan, tehsil Pattoki, District Kasur, Punjab, Pakistan. the address of the registered office of the company is 53-A, Lawrence Road, Lahore. As per terms of the Power Purchase Agreement (PPA) with National transmission and Despatch Company Limited (NtDCL), the Required Commercial operations Date of the power project was December 31, 200�. however, it is currently in the trial run phase and has not yet commenced commercial operations. the company’s management expects to achieve commercial operations by March 2010.

2. BaSiS Of prEparaTiON this condensed interim financial information is unaudited. It has been prepared and

is being submitted to the members in accordance with section 245 of the Companies ordinance, 1�84 and International Accounting Standard (IAS) 34 - ’Interim Financial Reporting’. the figures for the half year ended December 31, 200� have, however, been subjected to limited scope review by the auditors as required by the Code of Corporate governance. this condensed interim financial information does not include all the information required for annual financial statements and therefore, should be read in conjunction with the annual financial statements for the year ended june 30, 200�.

3. SiGNifiCaNT aCCOUNTiNG pOliCiES 3.1 the accounting policies adopted for the preparation of this condensed interim financial

information are the same as those applied in the preparation of preceding annual financial statements of the company for the year ended june 30, 200�, except for the inclusion of following new accounting policies:

3.1.1 Stores, spares and loose tools

Stores, spares and loose tools are valued principally at moving average cost, while items considered obsolete are carried at nil value. Items in transit are valued at cost comprising invoice value plus other charges paid thereon.

3.1.2 Stock-in-trade Stock-in-trade except for those in transit are valued principally at lower of moving

average cost and net realisable value. Materials in transit are stated at cost comprising invoice value plus other charges paid thereon.

Net realisable value signifies the estimated selling price in the ordinary course of business less costs necessarily to be incurred in order to make a sale.

3.1.3 revenue recognition

Revenue on account of energy is recognised on transmission of electricity to NtDCL, whereas on account of capacity is recognised when due.

3.2 the following amendments to standards are mandatory for the first time for the financial year beginning july 01, 200�:



- IAS 1 (revised), ‘Presentation of financial statements’. the revised standard prohibits the presentation of items of income and expenses (that is, ‘non-owner changes in equity’) in the statement of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner changes in equity. All ‘non-owner changes in equity’ are required to be shown in performance statement. Companies can choose whether to present one performance statement (the statement of comprehensive income) or two statements (profit and loss account and statement of comprehensive income).

the company has preferred to present two statements; a profit and loss account and a

statement of comprehensive income. the interim financial information has been prepared under revised disclosure requirements.

- In addition to above, following new standards and amendments to standards are mandatory for the first time for the financial year beginning july 01, 200� and are also relevant to the company. however, the adoption of these new standards and amendments to standards did not have any significant impact on the financial information of the company:

- IAS 23 (Amendment) - Borrowing costs

- IAS 27 (revised) - Consolidated and separate financial statements

- IAS 28 (Amendment) - Investment in associates

- IAS 36 (Amendment) - Impairment of assets

- IAS 3� (Amendment) - Financial Instruments : Recognition and measurement

3.3 the preparation of the condensed interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing this condensed interim financial information, the significant judgments made by management in applying accounting policies and key sources of estimation were the same as those that were applied to the financial statements for the year ended june 30, 200�.

4. priOr pEriOD ErrOr During the previous year ended june 30, 200�, the company incorrectly recognised certain

foreign currency costs of commissioning of the power station as part of the cost of property, plant and equipment under ‘capital work-in-progress – plant and machinery’ and its corresponding liability under ‘trade and other payables’ which should not have been recognised since such service had not been provided by the equipment supplier during the previous year. Furthermore, the company also recognized exchange loss arising out of translation of the abovementioned foreign currency liability in the functional currency at the reporting date.

the recognition of such cost of Rs 623,445,573 as part of the cost of property, plant and equipment along with recognition of a corresponding liability and recognition of exchange loss of Rs 47,�06,74� in the profit and loss account constitutes a ‘prior period error’ as defined in International Accounting Standard 8 (IAS 8) “Accounting Policies, Changes in Accounting Estimates and Errors”. Accordingly, the above mentioned prior period error has been corrected retrospectively in this interim financial information by restating the carrying value of ‘property, plant and equipment’ and ‘trade and other payables’ as at june 30, 200� and restating ‘other operating income’ for the year ended june 30, 200�. Consequently, as at june 30, 200�, the carrying values of ‘property, plant and equipment’ and ‘trade and other payables’ decreased by Rs 623,445,573 and Rs 671,352,322 respectively and ‘other operating income’ for the year ended june 30, 200� increased by Rs 47,�06,74�. Resultantly, loss for the half year ended December 31, 2008 decreased by Rs 2,115,�00.

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Unaudited Audited December 31, june 30, 2009 2009 200� Restated rupees Rupees

5. lONG TErm fiNaNCiNG - SECUrED

opening balance 11,649,986,254 2,841,813,2�6 Disbursements during the period/year -note 5.1 2,234,083,602 8,808,172,�58

Closing balance 13,884,069,856 11,64�,�86,254 Current portion of long term financing shown under current liabilities (473,095,230) (253,43�,�83)

13,410,974,626 11,3�6,546,271

5.1 Includes a term finance facility of Rs 1,�04,031,200, of which Rs 1,624,560,257 has been obtained during the period, to cover the additional cost of the power project from the lenders of the original project finance facility on the same terms and conditions. the aggregate finance is repayable in forty equal quarterly instalments commencing from April 01, 2010.

6. SUBOrDiNaTED lOaN - UNSECUrED

this represents a subordinated loan from the holding company, Nishat Mills Limited. It is unsecured and carries markup at the rate of three months Karachi Inter-Bank offered Rate (KIBoR) plus 2% per annum, payable quarterly. the principal is repayable on janu-ary 11, 2015 subject to approval from the lenders of the long term financing facility in accordance with the Subordinated Loan Agreement.

7. CONTiNGENCiES aND COmmiTmENTS

7.1 Contingencies

the company has issued an irrevocable letter of credit in favour of NtDCL for uS$ 5,36�,650 (june 30, 200�: uS$ 5,36�,650) equivalent to Rs 447,452,�34 (june 30, 200�: Rs 436,552,545) as required under section 2.7 and �.4(d) of the Power Purchase Agree-ment.

Unaudited Audited December 31, june 30, 2009 2009 200� restated rupees Rupees7.2 Commitments in respect of

Equipment supply contract with wartsila Finland oy for Euro 5,872,�00 (june 30, 200�: Euro 6,041,262) 698,308,365 6�3,657,743 Construction services contract with wartsila Pakistan (Private) Limited for uS$ �61,020 (june 30, 200�: uS$ 4,228,488) 80,081,797 342,507,528 Letters of credit other than for capital expenditure 64,238,448 - other contractors 12,525,290 36,7�2,8�1

the company has entered into a contract for purchase of fuel oil from Shell Pakistan Limited (SPL) for a period of ten years starting from the Commercial operations Date of the power station. under the terms of the Fuel Supply Agreement, the company is not required to buy any minimum quantity of oil from SPL.



the company has also entered into an agreement with wartsila Pakistan (Private) Limited for the operations and maintenance of the power station for a five years period starting from the Commercial operations Date of the power station.

Unaudited Audited December 31, june 30, 2009 2009 200� Restated rupees Rupees8. prOpErTy, plaNT aND EQUipmENT

operating fixed assets -note 8.1 89,581,804 87,358,124 Capital work-in-progress -note 8.2 16,346,199,751 14,883,152,33�

16,435,781,555 14,�70,510,463 8.1 Operating fixed assets opening book value 87,358,124 84,121,017 Additions during the period/year -note 8.1.1 2,923,886 4,572,8�5 Disposals during the period/year (at book value) - (381,4�1)

90,282,010 88,312,421 Depreciation charged during the period/year (700,206) (�54,2�7)

Closing book value 89,581,804 87,358,124 8.1.1 additions during the period/year Computer equipment 569,595 246,��3 Furniture and fixtures 811,927 324,850 office equipment 168,734 �10,000 vehicles 1,373,630 3,0�1,052

2,923,886 4,572,8�5

8.2 Capital work-in-progress

Buildings and roads 160,648,881 130,�00,347 Plant and machinery 13,563,611,742 12,��5,110,332 Electric installations 864,966 26�,2�6 Advances to contractors 12,829,180 257,511,121 Advances for purchase of plant and machinery - 6,333,124 unallocated expenditure -note 8.2.1 2,608,244,982 1,4�3,028,11�

16,346,199,751 14,883,152,33�



Unaudited Audited December 31, june 30, 2009 2009 200� Restated rupees Rupees

8.2.1 Unallocated expenditure Unallocated expenditure incurred to date: Raw material consumed 784,695,502 - Stores, spares and loose tools consumed 1,046,675 - Salaries and other benefits 32,808,883 22,572,428 Electricity consumed in house 10,374,956 - Insurance 156,174,521 150,7�3,107 travelling and conveyance 6,795,276 4,872,�56 Entertainment 331,781 241,233 Rent, rates and taxes 1,214,609 �67,000 vehicle running and maintenance 2,193,505 1,544,350 Printing and stationery 250,434 207,�51 Postage and telephone 1,251,269 1,06�,756 Fuel and power 50,886 50,886 Legal and professional charges 4,896,750 3,580,812 Auditors’ remuneration 690,000 6�0,000 Consultancy charges 12,015,769 11,026,345 Registration fee 40,300 40,300 Fee and subscription 18,672,933 16,�7�,111 Mark up on: - Long term financing - secured 2,139,594,837 1,152,838,607 - Subordinated loan - unsecured 5,597,719 - - Short term borrowings - secured 46,306,525 - Bank charges and financing fee 168,669,968 114,344,353 Bank guarantee commission 9,263,952 8,674,364 Depreciation 1,631,242 ��1,622 Miscellaneous 2,445,811 1,542,�38

3,407,014,103 1,4�3,028,11�

Sale of trial production (798,769,121) -

2,608,244,982 1,4�3,028,11�



Unaudited July 01 to December 31

2009 2008 Restated rupees Rupees 9. CaSH USED iN OpEraTiONS Loss before taxation (10,068,670) (23,548,228) Adjustment for non cash charges and other items: Depreciation on operating fixed assets 60,586 34,750 Profit on bank deposits (5,590,687) (1,231,533) Provision for employees retirement benefits 390,413 -

Loss before working capital changes (15,208,358) (24,745,011) Effect on cash flow due to working capital changes: Increase in stores, spares and loose tools (144,034,493) - Increase in stock-in-trade (1,075,215,410) - Increase in trade debts (581,334,858) - Increase in advances, deposits, prepayments and other receivables (179,558,215) (1,042,42�) Increase in trade and other payables 4,856,824 485,634,080

(1,975,286,152) 484,5�1,651

(1,990,494,510) 45�,846,640

Unaudited

December 31, December 31, 2009 2008 Restated rupees Rupees

10. CaSH aND CaSH EQUiValENTS Cash and bank balances 1,332,482,896 421,622,611 Short term borrowings - secured (1,287,034,969) -

45,447,927 421,622,611



Unaudited July 01 to December 31

2009 2008 Restated rupees Rupees 11. TraNSaCTiONS WiTH rElaTED parTiES relationship with Nature of transactions the company i. holding company Receipt of share deposit money 510,885,000 317,400,000 Shares issued 510,885,000 330,000,000 Subordinated loan proceeds 472,885,200 - Mark up on subordinated loan 5,597,719 - Purchase of operating fixed assets 35,308 - ii. Associated undertakings Purchases of goods and services 76,352 4,456,340 Profit on bank deposits 92,685 661 Insurance premium 5,788,865 10�,047 iii. Key management personnel Salaries and other employee benefits 5,857,272 5,258,400 iv. other related parties Receipt of share deposit money 117,500,000 82,500,000 Shares issued 117,500,000 82,500,000 Disbursements of long term financing 1,017,929,531 681,774,188 Short term borrowings acquired 401,588,252 - Short term borrowings repaid 43,873,864 - Mark up on long term financing 399,690,074 123,267,655 Mark up on short term borrowings 6,460,090 - Purchase of goods and services 1,006,136 - Bank charges and financing fee 21,843,161 1,��1,733 Bank guarantee commission 238,769 63�,621 Contribution towards staff retirement benefits 390,413 268,587

In addition to the above, the holding company, Nishat Mills Limited, has entered into following transactions on behalf of the company:

Performance guarantee of uSD 1,000,000 (june 30, 200�: uSD 1,000,000) equivalent to Rs 83,300,000 (june 30, 200�: Rs 81,300,000) in favour of Private Power and Infrastructure Board to secure performance of the company under Implementation Agreement and Power Purchase Agreement.

Irrevocable standby letters of credit of Rs 887,885,000 (june 30, 200�: Rs 410,000,000) for equity injection and Nil (june 30, 200�: Rs 147,120,000) for positive cost overrun, in accordance with the Project Funds Agreement, in favour of security trustee of syndicate lenders of the company.

All transactions with related parties have been carried out on commercial terms and conditions.



Unaudited Audited December 31, june 30, 2009 2009 200�

rupees Rupees

period end balances Receivable from related parties 11,987,869 6,76�,701 Payable to related parties 6,783,582,828 4,8�5,033,514

12. DaTE Of aUTHOriSaTiON fOr iSSUE

this condensed interim financial information was authorised for issue on February 11, 2010 by the Board of Directors of the company.

13. COrrESpONDiNG fiGUrES

In order to comply with the requirements of International Accounting Standard 34 - ‘Interim Financial Reporting’, the condensed interim balance sheet and condensed interim statement of changes in equity have been compared with the balances of an-nual audited financial statements of preceding financial year, whereas, the condensed interim profit and loss account, condensed interim statement of comprehensive income and condensed interim cash flow statement have been compared with the balances of comparable period of immediately preceding financial year.

Corresponding figures have been re-arranged, wherever necessary, for the purposes of comparison. however, no significant re-arrangement has been made.


20 Half Yearly Report 20�0


N I S H A T

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