| Altern Energy Ltd - 2006 |
========================================================================================== BALANCE SHEET AS AT JUNE, 30, 2006 ========================================================================================== 2006 2005 Notes RUPEES RUPEES ========================================================================================== EQUITY AND LIABILITIES SHARE CAPITAL AUTHORISED CAPITAL: 400,000,000 (2005: 26,000,000) ordinary shares of Rs 10 each 4,000,000,000 260,000,000 Issued, subscribed and paid up capital 22,100,000 ordinary shares of Rs 10 each 3 221,000,000 221,000,000 Accumulated loss (218,987,697) (104,024,743) 2,012,303 116,975,257 NON-CURRENT LIABILITIES: Sponsors' loan -unsecured 4 417,878,627 92,606,625 Long term borrowings 5 - 57,291,312 Liabilities against assets subject to finance lease 6 - - Deferred liability - staff gratuity 1,423,950 1464,000 419,302,577 151,361,937 CURRENT LIABILITIES: Trade and other payables 7 64,338,998 62,343,845 Mark up accrued 33,974,600 15,127,393 Short term borrowings 8 26,842,857 33,999,569 Current portion of long term borrowings 9 74,375,303 74,479,769 Provision for taxation, net 782,177 - 200,313,935 185,950,576 Contingencies and commitments 10 ASSETS NON-CURRENT ASSETS: Property, plant and equipment 11 349,429,949 385,232,985 Capital work-in-progress 12 51,358,641 49,404,000 Long term deposits 37,500 300,000 400,826,090 434,936,985 CURRENT ASSETS: Store and spares 13 1,309,232 7,309,232 Advances, deposits, prepayments and other receivables 14 163,178,041 2,841,891 Cash and bank balances 15 56,315,452 9,199,662 220,802,725 19,350,785 621,628,815 454,287,770 ========================================================================================== ========================================================================================== PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2006 ========================================================================================== 2006 2005 Notes RUPEES RUPEES ========================================================================================== Revenue - Sale ot electricity 16 - 24,847,106 Direct Costs - Depreciation and other expenses 17 38,055,887 77,138,941 Gross loss (38,055,887) (52,291,835) OPERATING EXPENSES: Administrative and general expenses 18 29,599,452 27,366,933 Other expenses 19 6,395,350 10,155,467 35,994,802 37,522,400 Other income 20 4,639,137 249,038 Operating loss (69,411,552) (89,565,197) Finance charges 21 43,822,234 11,916,525 Net loss before tax (113,233,786) (101,481,722) TAXATION: for the year 1,623,698 - prior years 105,470 - Net loss after tax (114,962,954) (101,481,722) Earnings per share - Basic 22 (5.20) (4.59) ========================================================================================== ========================================================================================== CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2006 ========================================================================================== 2006 2005 Note RUPEES RUPEES ========================================================================================== CASH FLOW FROM OPERATING ACTIVITIES: Net loss after tax (114,962,954) (101,481,722) ADJUSTMENT FOR NON-CASH ITEMS: Depreciation 35,516,548 39,365,844 Provision for taxation 1,729,168 - Provision against receivables from WAPDA - 235,077 Provision for Stores and Spares 6,000,000 1,889,847 Gratuity 518,100 802,450 Amortisation of deferred costs - 520,968 Profit on sale of property, plant & equipment (299,161) - Property, plant & equipment written off - 829,161 Advance for land written off - 6,557,121 Sales tax refundable written off - 4,048,934 Finance cost 43,822,234 11,916,525 87,286,889 66,165,927 Cash flows from operating activities (27,676,065) (35,315,795) CHANGES IN WORKING CAPITAL: Decrease in Stores and stores - 8,942,448 Decrease in trade debts - 935,683 (Increase) in Advances, deposits, prepayments and other receivables (160,932,672) (44,019,872) Increase in trade and other payables 1,995,153 7,710,906 (158,937,519) (26,430,835) Cash used in operations (186,613,584) (61,746,630) Finance cost paid (3,217,015) (1,920,078) Income Tax paid (425,619) - Retirement benefits paid (558,150) (1,037,450) Net cash from operating activities (190,814,368) (64,704,158) CASH FLOW FROM INVESTING ACTIVITIES: Fixed capital expenditure incurred (2,026,492) (160,500) Sale proceeds of property, plant and equipment 657,500 2,323,146 Net decrease in long term deposits 337,650 480,775 Net cash generated from/(used in) investing activities (1,031,342) 2,643,421 CASH FLOWS FROM FINANCING ACTIVITIES: Long term loans-net - 57,291,312 Sponsors' Loan 246,222,678 - Short term borrowings (7,156,712) - Lease rentals paid (104,466) (1,407,530) Net cash generated from/(used in) financing activities 238,961,500 55,883,782 Net (decrease)/increase in cash and cash equivalents 47,115,790 (6,176,955) Cash and cash equivalents at beginning of the year 9,199,662 15,376,617 Cash and cash equivalents at the end of the year 15 56,315,452 9,199,662 ========================================================================================== ==========================================================================================
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2006
==========================================================================================
SHARE ACCUMULATED
CAPITAL LOSS TOTAL
RUPEES RUPEES RUPEES
==========================================================================================
Balance as at July 1, 2004 221,000,000 (2,543,021) 218,456,979
Net loss for the year - (101,481,722) (101,481,722)
Balance as at June 30, 2005 221,000,000 (104,024,743) 116,975,257
Net loss for the year - (114,962,954) (114,962,954)
Balance as at June 30, 2006 221,000,000 (218,987,697) 2,012,303
==========================================================================================NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 20061. STATUS & NATURE OF BUSINESS The Company was incorporated in Pakistan and is listed on Karachi Stock Exchange. The principal objective of the company is to generate, distribute, sell and supply of electric power to WAPDA. The company commenced commercial operations w.e.f. June 6, 2001. The registered office is at 10-B, Block E-2, Gulberg III, Lahore. 1.1. The Complex at Fateh Jang has been shutdown since January 11, 2005 due to non-availability of Specification Gas by OGDCL. The Government of Pakistan has allocated to the company 6 MMCFD pipeline quality gas from the SNGPL system till June 30, 2013 on a nine-month availability basis. Under the terms of the gas allocation the SNGPL will issue a letter of comfort to the Company for the period beyond the availability period. The company has paid Rs 49.404 million to the SNGPL for laying of the 8" dia, 8.6Km long pipeline, which is currently being laid. We are now negotiating the Gas Supply Agreement, GSA, with SNGPL. Further the Company has announced a rights issue @ 1,450% i.e. Rs 3,204.5 million. The purpose of the issue is to generate funds to capitalise Power Management Company (Pvt) Ltd, which in turn will use these funds to acquire 59.984% shares of Rousch (Pakistan) Power Limited, an unlisted independent power producer set up under the 1994 policy. This equity injection will help the Company attain a scale and leverage base enabling it to operate at optimum level and to earn returns in line with other large players in the industry. 2. SIGNIFICANT ACCOUNTING POLICIES 2.1. BASIS OF PREPARATION These accounts have been prepared under "Historical Cost Convention". These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan and the requirements of the Companies Ordinance 1984 (The Ordinance). Approved Accounting Standards comprise of such International Accounting Standards as notified under the provisions of the Ordinance and the directives issued by Securities and Exchange Commission of Pakistan (SECP). Wherever the requirements of the Ordinance or directives issued by the SECP differ with the requirements of these Standards, the requirements of the Companies Ordinance, 1984 or the said directives take precedence. Standards, interpretations and amendments to published approved accounting standards that are not yet effective. Following amendments to existing standards have been published that are mandatory for the Company's accounting periods beginning on or after following dates. i) IAS 1 Presentation of Financial effective from January 1, 2007
Statements - capital disclosures
ii) IAS 19 (Amendments) - Employee Benefits effective from January 1, 2006Adoption of the above amendments may only impact the extend of disclosures presented in the financial statements.2.2. STAFF RETIREMENT BENEFITS (a) The company operates an un-funded gratuity scheme covering all its permanent employees. Provision is made annually to cover the liability under the scheme. (b) Actuarial valuation of the gratuity scheme as required by IAS-19 has not been carried out so far. Due to the above reason disclosures as required by IAS -19 have not been included in these accounts. 2.3. TAXATION The company's profit and gains from power generation are exempt from tax under Clause 132 of Second Schedule of the Income Tax Ordinance, 2001. 2.4. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment except land are stated at cost less accumulated depreciation. The land and capital work in progress are stated at cost. Effective July 1, 2005, the company has revised its accounting estimates in respect of depreciation on property, plant and equipment as per following: (a) Depreciation is charged on straight line method instead of reducing balance method; (b) Depreciation on addition is charged from the month in which the asset is put to use and on disposals, upto the month the asset has been in use. These changes has been applied prospectively in accordance with the revised International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors. The impact of changes on profit before tax is insignificant. Maintenance and normal repairs are charged to income as and when incurred. Major renewals and repairs are capitalised. Gains and losses on disposals have been set off against the income. 2.5. STORES AND SPARES Stores and spares are valued at lower of moving average cost or net realisable value. 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. 2.6. FOREIGN CURRENCIES All monetary assets and liabilities in foreign currencies are translated into Pak Rupee at exchange rates prevailing at balance sheet date. Transactions in foreign currencies are translated into Rupees at the rate prevailing at the date of transaction. 2.7. REVENUE RECOGNITION Revenue on account of energy is recognised on transmission of electricity to WAPDA, whereas revenue on account of Capacity is recognised when due. 2.8. FINANCIAL INSTRUMENTS All the financial assets and liabilities are recognised at the time when the company becomes a party to the contractual provisions of the instrument. Any gains or losses on derecognition of financial assets and liabilities are taken to profit and loss account. 2.9. BORROWING COSTS Borrowing costs are recognised as an expense in the year in which they are incurred. 2.10. TRADE AND OTHER PAYABLES Trade and other payables are stated at their cost. 2.11. CASH AND CASH EQUIVALENTS For the purpose of cash flow statement, Cash and cash equivalents comprise of cash in hand and balance with banks on current and deposit accounts. 2.12. TRADE DEBTS Trade debts are carried at original invoice amount less an estimate made for doubtful debts based on a review of all outstanding amounts at the year's end. Debts considered irrecoverable are written off. 2.13. IMPAIRMENT The carrying amounts of the company's assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If such indication exists the assets recoverable amount is estimated. An impairment loss is recognised wherever the carrying amount of the asset exceeds its recoverable amount. Impairment losses are recognised in profit and loss account. 2.14. PROVISIONS A provision is recognised in the balance sheet when the company has a legal or constructive obligation as a result of past events, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 3. ISSUED, SUBSCRIBED AND PAID UP CAPITAL ==========================================================================================
2006 2005 2006 2005
(No of shares) RUPEES RUPEES
==========================================================================================
18,200,000 18,200,000 Ordinary Shares of Rs 10/- each
fully paid in cash 182,000,000 182,000,000
3,900,000 3,900,000 Ordinary Shares of Rs 10/- each
issued for consideration 39,000,000 39,000,000
other than cash
22,100,000 22,100,000 221,000,000 221,000,000
==========================================================================================3.1. During the year the Board of Directors approved 1,450% i.e. Rs 3,204,500/- Rights Issue at face value.The proceeds will be used to acquire majority stake in Rousch (Pakistan) Power Limited through a Special Purpose vehicle, Power Management Company (Pvt) Ltd and to enhance the capacity of the Company. 4. SPONSORS LOANS - UNSECURED ==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
Associated undertakings
Crescent Steel & Allied Products Limited 205,906,724 -
Shakarganj Mills Limited 119,365,274 -
4.1 325,272,002 -
Others 4.2 92,606,625 92,606,625
417,878,627 92,606,625
==========================================================================================4.1. These represent the funds received from sponsors for restructuring of the company and were to be adjusted against proposed rights issue as per initial understanding.But Karachi Stock Exchange did not give permission to adjust these funds against the rights issue. Now these will be repaid on available liquidity basis. These are unsecured and carry mark up from 8% per annum to 18% per annum. 4.2. This represents funds paid by sponsor to settle the liabilities in full. This loan is unsecured and interest free and repayments terms and conditions are to be finalised. 4.3. The above balances include the amounts which have been swapped among Crescent Steel and Allied Products Limited. Crescent Standard Business Management (Pvt) Limited, Crescent Standard Investment Bank Limited and Shakarganj Mills Limited amounting to Rs 92.6 million & Rs 182.7 million and mark up thereon and are based on balance confirmation certificates received. Subsequent to the year end the associated undertakings do not qualify as associated undertakings any more. 5. LONG TERM BORROWINGS ==========================================================================================
2006 2005
Note RUPEES RUPEES
==========================================================================================
Long term borrowings - Secured 5.1 - 57,291,312
==========================================================================================5.1. LONG TERM FINANCE -SECURED==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
FROM BANKING COMPANY:
Demand finance 5.1.1 74,375,303 74,375,303
OTHERS:
Musharika finance - 57,291,312
74,375,303 131,666,615
Less: Current Maturity 9 74,375,303 74,375,303
- 57,291,312
==========================================================================================5.1.1. This represents dem and finance facility, of Rs 85 million (2005: Rs 85 million) obtained from United Bank Limited at the rate of State Bank of Pakistan Discount rate+2.5% with floor of 11% per annum (2005: SBP Rate+2.5% per annum).The finance is payable in 16 equal quarterly instalments of principle of Rs 5.3125 million each starting from April 30, 2002. Mark-up is payable quarterly. This is secured by way of a 1st pari passu charge on fixed assets and current assets of the company for Rs 139.703 million. The company has repaid Rs 50 million subsequent to year end. 6. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE ==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
MINIMUM LEASE PAYMENTS DUE:
Not later than one year - 105,090
Later than one year and not later than five years - 105,090
Less: Future finance charges 624
Present value of minimum tease payments 6.1 - 104,466
Less: Current portion 9 104,466
==========================================================================================6.1. BREAK UP OF PRESENT VALUE OF MINIMUM LEASE PAYMENTS==========================================================================================
2006 2005
Rupees Rupees
==========================================================================================
Not later than one year - 104,466
Later than one year and not later than five years - -
- 104,466
==========================================================================================7. TRADE AND OTHER PAYABLES==========================================================================================
2006 2005
RUPEES RUPEES
==========================================================================================
Creditors 63,586,153 60,702,398
Accrued liabilities 517,768 1,406,370
Workers participation fund payable 235,077 235,077
64,338,998 62,343,845
==========================================================================================8. SHORT TERM BORROWINGS - SECURED==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
BANKING COMPANIES:
Running Finance 8.1 14,843,253 21,999,965
Cash Finance 8.2 11,999,604 11,999,604
26,842,857 33,999,569
==========================================================================================8.1. It represents running finance facility of Rs 22 million (2005: Rs 22 million) obtained from Bank of Khyber under mark up ranges from 10% per annum to 14% per annum (2005: 8.5% per annum to 10% per annum).Mark up is payable quarterly. The finance is secured by way of first charge on company's present and future fixed assets for Rs 63.32 million ranking pari passu with UBL. Subsequent to year end the Company has repaid the facility in full and charge has been vacated. 8.2. It represents cash finance facility of Rs 12 (2005: Rs 12) million obtained from United Bank Limited under mark up at State Bank of Pakistan discount rate + 2.5% p.a with floor of of 11 % per annum (2005: State Bank of Pakistan discount rate + 2.5% p.a with floor of 11 % per annum). Mark up is payable quarterly. The total loan facility is secured by charges as per note 5.1.1. Subsequent to year end the Company has repaid this facility in full. 9. CURRENT PORTION OF LONG TERM BORROWINGS ==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
Demand Finance 5.1 74,375,303 74,375,303
Obligation against Assets under finance lease 6 - 104,466
74,375,303 74,479,769
==========================================================================================10. CONTINGENCIES AND COMMITMENTS10.1. CONTINGENCIES The dispute with Oil and Gas Development Company Limited (OGDCL) with regard to the invoices amounting to Rs 66 million for the period from January 2001 to February 2005 with regards to quantify and quality of gas is still pending. Based on the documentation and workings filed for arbitration under the GSA with OGDCL, a favourable outcome is expected. In the pending litigation , OGDCL has raised certain claims of approximately US Dollar 1.9 Million for the period prior to First Delivery -- Date of gas which is a contradiction of its own documentary evidence. The court has directed that the matter be resolved through arbitration. OGDCL has further claimed US$ 50,390 as take or pay gas claim for March, 2005. The company is of the view that this claim is unjustified as there was no Specification Gas made available to the company during this period. 10.2. COMMITMENTS During the year the Company has entered into agreements with the various shareholders of Rousch (Pakistan) Power Limited, RPPL, to acquire 59.98% equity stake through Power Management Company (Private) Limited. The transaction is expected to be completed by December 2006 as fully explained in note 1.1 to financial statements and Directors' Report. 11. PROPERTY, PLANT AND EQUIPMENT ================================================================================================================================================================
C0ST DEPRECIATION W.D.V.
PARTICULARS As At Additions Adjustment/ As At As At Adjustment For the As At As at Rate
01-07-05 Deletions 30-06-06 01-07-05 Year 30-06-06 30-06-06 %
================================================================================================================================================================
OWNED:
Free hold land 4,647,322 - - 4,647,322 - - - - 4,547,322
Building on free hold land 64,102,194 - - 64,102,194 12,105,685 - 2,599,824 14,705,509 49,396,685 5
Plant and machinery 503,769,446 - - 503,769,446 175,962,190 - 32,780,725 208,742,915 295,026,531 10
Electric equipment 216,725 - - 216,725 101,032 - 11,568 112,600 104,125 10
Office equipment 160,500 71,850 - 232,350 53,500 - 45,454 98,954 133,396 10-33
Vehicles 739,000 501,000 372,000 436,306 244,488 78,977 250,110 121,890 20
(868,000) - (509,661) - -
573,635,187 71,850 (367,000) 573,340,037 188,658,713 (265,173) 35,516,548 223,910,088 349,429,949
LEASED:
Vehicles 501,000 (501,000) - 244,488 (244,488) - - - 20
501,000 - (501,000) - 244,488 (244,488) - - -
574,136,187 71,850 (868,000) 573,340,037 188,903,201 (509,661) 35,516,548 223,910,088 349,429,949
June 30, 2005 580,117,235 3,198,000 2,018,250 574,136,187 154,544,849 1,482,300 39,365,844 188,903,202 385,232,985
(11,197,298) (6,489,791)
================================================================================================================================================================11.1. DEPRECIATION FOR THE YEAR HAS BEEN CHARGED AS UNDER==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
Direct Costs 17 35,392,117 39,172,542
Administrative and general expenses 18 124,431 193,302
35,516,548 39,365,844
==========================================================================================11.2. DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT========================================================================================================
Accumulated Written Down
Particulars Cost Depreciation Value Sale Proceeds Mode of Disposal Sold to
Rs Rs Rs Rs
========================================================================================================
Vehicles 367,000 226,698 140,302 270,000 Negotiation Khawaja Waqas Shahid
Vehicles 501,000 282,963 218,037 387,500 -do- Raja Saeed Ahmad
========================================================================================================12. CAPITAL WORK IN PROGRESS==========================================================================================
2006 2005
Note RUPEES RUPEES
==========================================================================================
Gas pipeline -Advance to SNGPL 49,404,000 49,404,000
- Related Costs 1,954,641 -
Advances for land and development - 6,557,121
Balance written off 18 - 6,557,121
51,358,641 49,404,000
==========================================================================================13. STORE AND SPARES==========================================================================================
2006 2005
RUPEES RUPEES
==========================================================================================
Stores and spares 9,199,079 9,199,079
Less: Provision for obsolescence 7,889,847 1,889,847
1,309,232 7,309,232
==========================================================================================14. ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
Advance to executive and employees-Considered good 251,550 -
Current maturity of long term deposit - 75,150
Accrued mark up on deposit 901,428 142,726
Letter of Guarantee Margin 14.1 156,650,000 -
Claims recoverable from WAPDA 14.2 235,077 235,077
Provision (235,077) (235,077)
Sales tax receivable 2,102,643 2,102,643
Advance income tax - 521,372
Other receivables 3,272,420 -
163,178,041 2,841,891
==========================================================================================14.1. This represents 100% Letter of Guarantee margin given to the bank for the guarantee issued by it on behalf of the Company for performance of agreement entered into by the Company with Siemens Project Ventures for the purchase of equity stake in Rousch (Pakistan) Power Limited from Siemens Project Ventures.14.2. Under section 14.2(a) of Part Ill of schedule 6 to the power purchase agreement (PPA) with WAPDA payments to Workers Participation Fund are recoverable from WAPDA. 15. CASH AND BANK BALANCES ==========================================================================================
2006 2005
Note RUPEES RUPEES
==========================================================================================
CASH AT BANKS:
Current accounts 926,319 415,699
Deposit accounts 15.1 55,380,402 8,783,913
56,306,721 9,199,612
Cash in hand 8,731 50
56,315,452 9,199,662
==========================================================================================15.1.It includes an amount of Rs Nil (2005: Rs 8.750 million) is under lien as referred to in note 8.1 to these accounts. 16. REVENUE ==========================================================================================
2006 2005
RUPEES RUPEES
==========================================================================================
Energy revenue 12,473,143
Capacity revenue 12,368,963
24,847,106
==========================================================================================16.1. Energy purchase price is exclusive of sales tax Rs NIL (2005: Rs 1,871,721).17. DIRECT COSTS ==========================================================================================
2006 2005
Note RUPEES RUPEES
==========================================================================================
Lube oil - 3,236,534
Gas - 13,437,946
Stores and spares - 10,761,226
Energy import 265,663 1,031,494
Salaries, wages and other benefits 2,091,101 5,539,505
Travelling, conveyance and hotelling 100,187 180,807
Water - 289,209
Chemicals 521,549
Insurance - 822,788
Repairs and maintenance 2,480 1,670,620
Entertainment 147,381 28,130
Miscellaneous expenses 56,958 446,591
Depreciation 11.1 35,392,117 39,172,542
38,055,887 77,138,941
==========================================================================================18. ADMINISTRATIVE AND OTHER EXPENSES==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
Salaries, wages and other benefits 4,816,595 5,482,740
Travelling, conveyance and hotelling 487,147 510,551
Rent, rates and taxes 749,191 477,243
Utilities 123,365 324,352
Repair and maintenance 23,175 518,657
Postage and telephone 287,289 585,139
Publicity, printing and stationery 171,447 197,723
Auditors remuneration 18.1 330,270 250,000
Legal and professional 2,389,805 3,583,822
Fee and subscription 18.2 12,676,500 158,894
Insurance 148,964 17,064
Entertainment 21,660 97,209
Security expenses 772,800 184,800
Miscellaneous 476,813 704,329
Amortisation of deferred costs - 520,968
Provision against receivables from WAPDA - 235,077
Provision for Stores and Spares 13 6,000,000 1,889,847
Sales tax refundable written off - 4,048,934
Fixed assets written off - 829,161
Advance for land written off 12 - 6,557,121
Depreciation 11.1 124,431 193,302
29,599,452 27,366,933
==========================================================================================18.1. AUDITORS' REMUNERATION==========================================================================================
2006 2005
RUPEES RUPEES
==========================================================================================
Annual and half yearly audit fee 175,000 150,000
Tax consultancy 100,000 100,000
Other services 50,000 -
Out of pocket expenses 5,270 -
330,270 250,000
==========================================================================================18.2. It includes Rs 12,539,500/- paid to Securities and Exchange Commission of Pakistan and Karachi Stock Exchange Limited as incremental fee of Authonsed Capital and paid up capital respectively.19. OTHER EXPENSES ==========================================================================================
2006 2005
RUPEES RUPEES
==========================================================================================
Liquidated Damages 6,395,350 9,336,994
Late payment and other surcharge - 818,473
6,395,350 10,155,467
==========================================================================================20. OTHER INCOME==========================================================================================
2006 2005
RUPEES RUPEES
==========================================================================================
INCOME FROM FINANCIAL ASSETS:
Income on bank deposit 4,217,976 131,000
INCOME FROM NON-FINANCIAL ASSETS:
Profit on sale of Property, plant & equipment 299,161 -
Other income 122,000 118,038
4,639,137 249,038
==========================================================================================21. FINANCE COST==========================================================================================
2006 2005
Note RUPEES RUPEES
==========================================================================================
Bank charges 903,484 53,671
MARK-UP ON:
- Finance lease 9,599 74,626
- Long term loan 21.1 39,245,640 8,521,507
- Short term loan 3,663,511 3,266,721
42,918,750 11,862,854
43,822,234 11,916,525
==========================================================================================21.1. It includes mark up accrued on associated undertaking Rs 30,630,331/- (2005: Rs 340,223/-)22. EARNINGS PER SHARE ==========================================================================================
2006 2005
==========================================================================================
Loss for year Rupees (114,962,954) (101,481,722)
Average number of ordinary shares 22,100,000 22,100,000
Earnings per share - Loss Rupees (5.20) (4.59)
==========================================================================================23. TRANSACTIONS WITH RELATED PARTIESAll transactions involving related parties arising in the normal course of business are conducted at arm's length. Amounts due to related parties are shown under sponsors loans and finance cost. 24. PLANT CAPACITY & ACTUAL PRODUCTION ==========================================================================================
2006 2005
Notes RUPEES RUPEES
==========================================================================================
Practical annual output in MWH 24.1 78,390 78,390
Actual Energy delivered during the year 24.2 - 9,382
==========================================================================================24.1. The practical annual output for power plant takes into account all scheduled outages approved by WAPDA.24.2. Non-utilisation of available capacity is due to non availability of Specification Gas by OGDCL and due to this the plant has been shutdown since January 11, 2005 as further explained in note 1.1. 25. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES 25.1. The aggregate amount charged in the accounts for the year for remuneration includes all benefits to Chief Executive, Directors and Executives of the company are as follows: ========================================================================================
Chief Executive Executives
2006 2005 2006 2005
for 4 months
Rupees
========================================================================================
Managerial Remuneration 2,275,000 758,333 545,455 -
House rent and utilities 497,500 165,833 300,000 -
Medical 227,500 75,833 54,545 -
3,000,000 1,000,000 900,000 -
Number of Persons 1 1 1 -
========================================================================================25.2. No remuneration, house rent and utilities were provided to directors of the company.25.3. No fee has been paid to the directors. 26. FINANCIAL ASSETS AND LIABILITIES ============================================================================================================================================================
Mark up bearing Non mark up bearing Total
Maturity Maturity Sub Maturity Maturity Sub
Upto one year After one year Total Upto one year After one year Total 2006 2005
Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
============================================================================================================================================================
FINANCIAL ASSETS:
Long term deposits - - - - 37,500 37,500 37,500 375,150
Advances, deposits and other receivables 80,000,000 - 80,000,000 81,075,398 - 81,075,398 161,075,398 142,726
Cash and bank balances 55,380,402 - 55,380,402 935,050 - 935,050 56,315,452 9,199,662
135,380,402 - 135,380,402 82,010,448 37,500 82,047,948 217,428,350 9,717,538
FINANCIAL LIABILITIES:
Sponsors' loan - 325,272,002 325,272,002 - 92,606,625 92,606,625 417,878,627 92,606,625
Long term borrowings 74,375,303 - 74,375,303 - - - 74,375,303 131,666,615
Obligation Under Finance Lease - - - - - - 104,466
Short term borrowings 26,842,857 - 26,842,857 - - - 26,842,857 33,999,569
Mark up Accrued 33,974,600 33,974,600 33,974,600 15,127,393
Trade and other payables - - - 64,338,998 - 64,338,998 64,338,998 62,343,845
101,218,160 325,272,002 426,490,162 98,313,598 92,606,625 190,920,223 617,410,385 335,848,513
============================================================================================================================================================Effective interest rates for the monetary financial liabilities are mentioned in the respective notes to the financials.26.1. CONCENTRATION OF CREDIT RISK Credit risk represents the accounting loss that would be recognised at the reporting date if counter parties fail completely to perform as contracted. The company believes that it is not exposed to major concentration of credit risk. 26.2. FOREIGN EXCHANGE RISK MANAGEMENT Foreign currency risk arises mainly where receivable and payable exist due to transaction entered into foreign currencies. Payable exposed to foreign currency risk are covered through registration of loan agreements with the State Bank of Pakistan whereby the bank is responsible to provide foreign currency at official rates. 26.3. INTEREST RATE RISK Interest rate risk is the risk that the value of a financial instrument will fluctuate due to change in market interest rates. Since the company borrows funds usually at fixed interest rates, the risk arising is minimal. 26.4. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The carrying values of all financial assets and liabilities reflected in the financial statements approximate to their fair values. 27. DATE OF AUTHORISATION FOR ISSUE The financial statements were authorised for issue in the board of directors meeting held on October 5, 2006. 28. COMPARATIVES Corresponding amount of Advance to SNGPL has been regrouped in Capital work in Progress. Further other corresponding figures have been re-arranged, wherever necessary, for the purposes of comparison. However, no significant re-arrangement have been made other than disclosed. |