1

Half Yearly Report 2014

02 CompanyProfile

03 Directors’Report

05 Auditor’sReporttotheMembersonReview ofCondenseInterimFinancialInformation

06 CondensedInterimBalanceSheet

08 CondensedInterimProfitandLossAccount andOtherComprehensiveIncome

09 CondensedInterimCashFlowStatement

10 CondensedInterimStatementofChangesinEquity

11 SelectedNotestotheCondenseInterimFinancialInformation

CONTENTS

2

PAKGEN POWER LIMITED

COmpaNy prOfilE

THE COMPANY PakgenPowerLimited(“theCompany”)wasincorporatedinPakistanon22June1995undertheCompaniesOrdinance,1984. The registered office is situatedat 53-A, LawrenceRoad, Lahore. Theprincipal activities of theCompany aretoown,operateandmaintainanoilfiredpower station (“the Complex”) havinggrosscapacityof365MWinMehmoodKot,Muzaffargarh,Punjab,Pakistan.

BOARD OF DIRECTORS MianHassanMansha Chairman Mr.GhazanfarHussianMirza Mr.ShahidMalik, Dr.ArifBashir Mr.AurangzebFeroz Mr.KamranRasool Mr.KhawjaMuhammadYounis Mr.MahmoodAkhtar

AUDIT COMMITTEE Mr.AurangzebFeroz Chairman Mr.KhawjaMuhammadYounis Mr.MahmoodAkhtar CHIEF FINANCIAL OFFICER Mr.KhalidQadeerQureshi COMPANY SECRETARY Mr.KhalidMahmoodChohan BANKERS OF THE COMPANY AlBarakaBank(Pakistan)Limited AlliedBankLimited AskariBankLimited BankAlfalahLimited BankIslamiPakistanLimited FaysalBankLimited HabibBankLimited HabibMetropolitanBankLimited KASBBankLimited MCBBankLimited NationalBankofPakistan NIBBankLimited SilkBankLimited TheBankofPunjab UnitedBankLimited AUDITOR OF THE COMPANY RiazAhmad&Co. CharteredAccountants LEGAL ADVISOR OF THE COMPANY Mr.M.AurangzebKhan AdvocateHighCourt REGISTERED OFFICE 53-A,LawrenceRoad, Lahore-Pakistan UAN:042-111-11-33-33 HEAD OFFICE 1-B,AzizAvenue,Gulberg-V, Lahore-Pakistan Tel:042-35717090-96 Fax:042-35717239 SHARE REGISTRAR CentralDepositoryCompanyofPakistanLimited CDCHouse,99-B,Block-B,S.M.C.H.S Shahra-e-Faisal,Karachi-74400 Tel:(92-21)111-111-500 Fax:(92-21)34326053 PLANT MehmoodKot,Muzaffargarh, Punjab-Pakistan.

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Half Yearly Report 2014

DirECTOrS’ rEpOrT

TheDirectorsofPakgen Power Limited “the Company” arepleased topresent their reporttogetherwithoperationalandfinancialresultsofyourCompanydulyreviewedbystatutoryauditorsfortheHalfyearended30June2014.

YourCompanyisengagedinpowergenerationwithadependablecapacityof350.00MWfurnaceoilfiredpowerplantagainstagrosscapacityof365MW.ItssharesarelistedontheKarachiandLahoreStockExchanges.TheSolepurchaserofthepowerisWaterandPowerDevelopmentAuthority(WAPDA).Wereportthatduringtheperiodunderreviewpowerplantbyachievingalltheoperatingstandardsdispatched929,040MWHofelectricityascomparedwith878,880MWHdispatchedduringthecorrespondingsixmonthsofthepreviousfinancialyear.Resultantlythecapacityfactorremainedat61.5%asagainst57.8%demonstratedinthecomparablesixmonthsofthepreviousfinancialyear.

Financial Results:

ThefinancialresultsoftheCompanyforperiodended30June2014areasfollows:

HALF YEAR ENDED

Financial Highlights 30 June 30June 2014 2013

Revenue(Rs‘000’) 17,614,281 16,889,765Grossprofit(Rs‘000’) 1,008,971 1,592,932Grossprofitratiotorevenue(%) 5.73 9.43Pre-taxprofit(Rs‘000’) 617,056 1,022,523Aftertaxprofit(Rs‘000’) 617,056 1,022,523Aftertaxprofitratiotorevenue(%) 3.50 6.05Earningspershare(Rs) 1.66 2.75

TheCompanyhaspostedaftertaxprofitofRs.617.056millionasagainstRs1,022.523millionearnedinthecomparativeperiod.ThenetprofitsoftheCompanydemonstratedtheEarningperShareofRs.1.66asagainstRs.2.75earnedpershareinthepreviousperioddespiteseveralnegativefactorseffectingprofitability.

Mainreasonforvariationinnetprofitforperiodended30thJune2014inComparisonwithperiodended30thJune2013isincreaseindeltalossbyRupees323.608MillionduetoincreaseinnetelectricitysuppliedtoWAPDAby50.15GWHandincreaseinfuelconsumptionby4.6gramsperkwh.

Capacitypaymentsdecreasedbyrupees83.142millionduetoreductionintariffandfluctuationinexchangeratesincurrentperiodascomparedtolastperiod.

Withrespecttoauditor’scommentsintheirreportwereportthatWAPDAhasraisedinvoicesforliquidatedamagestothecompanyonaccountofshortsupplyofelectricitybythecompany.Liquidatedamagesinvoicedtothecompanyamountstorupees2,451Million.WeareoftheviewthatsincetechnicallytheplantwasavailabletodeliverelectricityasperWAPDA’srequirementandthefailuretodeliverwasconsequentialonlytofinancialconstrainscausedbydefaultinpaymentsbyWAPDA,thereforeWAPDAcannotclaimtheliquidatedamageswhicharetriggeredasaresultofitsowndefault.

ResultantlywehavedisputedthesaidinvoicesofliquidatedamagesraisedbyWAPDABasedonthestrengthofthecase,managementandthelegalcounselofthecompanyareconfidentthatthematterwillbesettledincompany’sfavorthereforenoprovisionhasbeenmadeinthesefinancialstatements.

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PAKGEN POWER LIMITED

knowledgement

Wewishtothankourvaluableshareholders,WAPDA,financialinstitutions,lenders,PakistanStateOilandothersuppliersfortheirtrustandfaithintheCompanyandtheirvaluablesupportthatenabledtheCompanytoachievebetterresults.

Wealsoappreciatethemanagementforestablishingamodernandmotivatingworkingclimateandpromotinghighlevelsofperformanceinallareasofthepowerplant.Wealsotakethisopportunitytothankourexecutivesandstaffmembersfortheirconsistentsupport,hardworkingandcommitmentfordeliveringremarkableresultsandwewishfortheirlongliferelationshipwiththeCompany.

For and on behalf of the Board of Directors

(Ghazanfar Hussian Mirza)ChiefExecutiveOfficerLahore:August27,2014

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Half Yearly Report 2014

Introduction

WehavereviewedtheaccompanyingcondensedinterimbalancesheetofPAKGENPOWERLIMITEDasat30June2014andtherelatedcondensedinterimprofitandlossaccount,condensedinterimcashflowstatementandcondensedinterimstatementofchangesinequitytogetherwiththenotesformingpartthereof(hereinafterreferredtoas“condensedinterimfinancialinformation”),forthehalfyearthenended.Managementisresponsibleforthepreparationandpresentationofthiscondensedinterimfinancial information inaccordancewithapprovedaccountingstandardsasapplicable inPakistanforinterimfinancialreporting.Ourresponsibilityistoexpressaconclusiononthiscondensedinterimfinancialinformationbasedonourreview.Thefiguresofthecondensedinterimprofitandlossaccountforthequartersended30June2014and30June2013havenotbeenreviewedandwedonotexpressaconclusiononthemaswearerequiredtoreviewonlythecumulativefiguresforthehalfyearended30June2014.

Scope of Review

WeconductedourreviewinaccordancewithInternationalStandardonReviewEngagements2410,“ReviewofInterimFinancialInformationPerformedbytheIndependentAuditoroftheEntity”.Areviewofcondensedinterimfinancialinformationconsistsofmakinginquiries,primarilyofpersonsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.AreviewissubstantiallylessinscopethananauditconductedinaccordancewithInternationalStandardsonAuditingandconsequentlydoesnotenableustoobtainassurancethatwewouldbecomeawareofallsignificantmattersthatmightbeidentifiedinanaudit.Accordingly,wedonotexpressanauditopinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that theaccompanyingcondensedinterimfinancialinformationasofandforthehalfyearended30June2014isnotprepared,inallmaterialrespects,inaccordancewithapprovedaccountingstandardsasapplicableinPakistanforinterimfinancialreporting.

Emphasis of matter

Wedrawattentiontonote5.1.1tothecondensedinterimfinancialinformationwhichexplainstheuncertaintyregardingoutcomeofclaimslodgedbyWaterandPowerDevelopmentAuthority(WAPDA),whichhavebeendisputedbythecompany.Ourconclusionisnotqualifiedinrespectofthismatter.

RIAZ AHMAD & COMPANYChartered Accountants

Name of engagement partner:Muhammad Atif Mirza

Lahore:August27,2014

aUDiTOrS’ rEpOrT TO THE mEmBErSON rEViEW Of CONDENSED iNTErim fiNaNCial iNfOrmaTiON

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PAKGEN POWER LIMITED

Un-audited Audited 30 June 31December Note 2014 2013 (Rupees in thousand)

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorizedsharecapital 400,000,000(31December2013:400,000,000) ordinarysharesofRupees10each 4,000,000 4,000,000 Issued,subscribedandpaid-upsharecapital 372,081,591(31December2013:372,081,591) ordinarysharesofRupees10each 3,720,816 3,720,816Capitalreserve 116,959 116,959Revenuereserve-Un-appropriatedprofit 10,575,260 10,516,326

Total equity 14,413,035 14,354,101 LIABILITIES CURRENT LIABILITIES Tradeandotherpayables 456,334 313,471Accruedmark-up/interest 96,246 114,281Short-termborrowings 7,193,599 6,529,932 7,746,179 6,957,684

Total liabilities 7,746,179 6,957,684 CONTINGENCIES AND COMMITMENTS 5 TOTAL EQUITY AND LIABILITIES 22,159,214 21,311,785

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CONDENSED iNTErim BalaNCE SHEETas at 30 June 2014

CHIEF ExECUTIVE

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Half Yearly Report 2014

DIRECTOR

Un-audited Audited 30 June 31December Note 2014 2013 (Rupees in thousand) ASSETS NON-CURRENT ASSETS Property,plantandequipment 6 8,255,295 8,203,680

CURRENT ASSETS Stores,sparepartsandotherconsumables 744,285 744,513Fuelstock 516,535 337,516Tradedebts 9,408,020 10,046,693Advancesandshort-termprepayments 582,007 730,203Otherreceivables 467,617 434,980Salestaxrecoverable 762,690 553,601Cashandbankbalances 1,422,765 260,599

13,903,919 13,108,105

TOTAL ASSETS 22,159,214 21,311,785

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PAKGEN POWER LIMITED

CONDENSED iNTErim prOfiT aND lOSS aCCOUNT fOr THE Half yEar ENDED 30 JUNE 2014 (UN-aUDiTED)

Half Year Ended Quarter Ended 30 June 30 June 30 June 30 June Note 2014 2013 2014 2013 (Rupees in thousand) (Rupees in thousand) REVENUE 17,614,281 16,889,765 7,800,488 10,146,182COSTOFSALES 7 (16,605,310) (15,304,719) (7,322,911) (9,403,345) GROSSPROFIT 1,008,971 1,585,046 477,577 742,837 ADMINISTRATIVEEXPENSES (71,334) (44,648) (34,489) (30,280)OTHEREXPENSES (918) (1,255) (466) (628)

936,719 1,539,143 442,622 711,929OTHERINCOME 7,202 13,917 3,673 3,133 PROFITFROMOPERATIONS 943,921 1,553,060 446,295 715,062FINANCECOST (326,865) (530,537) (173,603) (269,590) PROFITBEFORETAXATION 617,056 1,022,523 272,692 445,472TAXATION - - - -

PROFITAFTERTAXATION 617,056 1,022,523 272,692 445,472 OTHERCOMPREHENSIVEINCOME - - - - TOTALCOMPREHENSIVEINCOMEFORTHEPERIOD 617,056 1,022,523 272,692 445,472 EARNINGSPERSHARE-BASICANDDILUTED(RUPEES) 1.66 2.75 0.73 1.20 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CHIEF ExECUTIVE DIRECTOR

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Half Yearly Report 2014

CONDENSED iNTErim CaSH flOW STaTEmENTfOr THE Half yEar ENDED 30 JUNE 2014 (UN-aUDiTED)

Half Year Ended

30 June 30June Note 2014 2013 (Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations 8 2,005,825 6,823,030 Financecostpaid (359,850) (546,656)Interestincomereceived 6,406 13,149Incometaxpaid (312,699) (8,801)Gratuitypaid (5,468) (4,042)

Net cash generated from operating activities 1,334,214 6,276,680 CASH FLOWS FROM INVESTING ACTIVITIES Capitalexpenditureonproperty,plantandequipment (279,740) (348,364)

Net cash used in investing activities (279,740) (348,364) CASH FLOWS FROM FINANCING ACTIVITIES Dividendpaid (555,975) (742,326) Net cash used in financing activities (555,975) (742,326) Net increase in cash and cash equivalents 498,499 5,185,990 Cash and cash equivalents at beginning of the period (6,269,333) (8,596,997) Cash and cash equivalents at end of the period (5,770,834) (3,411,007) CASH AND CASH EQUIVALENTS Cashinhand 174 147Cashatbanks 1,422,591 6,989Short-termborrowings (7,193,599) (3,418,143)

(5,770,834) (3,411,007) Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CHIEF ExECUTIVE DIRECTOR

10

PAKGEN POWER LIMITED

RESERVES

SHARE

Capital Revenue TOTAL

CAPITAL

Retained Un- EQUITY

payments appropriated

reserve profit

( - - - - - - - - - -- - -Rupees in thousand - - - - - - - -- - - )

Balance as at 31 December 2012 - audited 3,720,816 116,959 10,150,75513,988,530 Transactionwithowners-Finaldividendfortheyearended31December2012@Rupee1pershare - - (372,082) (372,082) Profitforthehalfyearended30June2013 - - 1,022,523 1,022,523Othercomprehensiveincomeforthehalfyearended30June2013 - - - -Totalcomprehensiveincomeforthehalfyearended30June2012 - - 1,022,523 1,022,523 Balance as at 30 June 2013 - un-audited 3,720,816 116,959 10,801,19614,638,971 Transactionwithowners-Interimdividendforyearended31December2013@Rupee1pershare - - (372,082) (372,082) Profitforthehalfyearended31December2013 - - 87,212 87,212Othercomprehensiveincomeforthehalfyearended31December2013 - - - -Totalcomprehensiveincomeforthehalfyearended31December2013 - - 87,212 87,212 Balance as at 31 December 2013 - audited 3,720,816 116,959 10,516,32614,354,101 Transactionwithowners-Finaldividendfortheyearended31December2013@Rupees1.5pershare - - (558,122) (558,122) Profitforthehalfyearended30June2014 - - 617,056 617,056Othercomprehensiveincomeforthehalfyearended30June2014 - - - -Totalcomprehensiveincomeforthehalfyearended30June2014 - - 617,056 617,056 Balance as at 30 June 2014 - un-audited 3,720,816 116,959 10,575,26014,413,035 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CONDENSED iNTErim STaTEmENT Of CHaNGES iN EQUiTyfOr THE Half yEar ENDED 30 JUNE 2014 (UN-aUDiTED)

CHIEF ExECUTIVE DIRECTOR

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Half Yearly Report 2014

SElECTED NOTES TO THE CONDENSED iNTErim fiNaNCial iNfOrmaTiONfOr THE QUarTEr ENDED 30 JUNE 2014 (UN-aUDiTED)

1. THECOMPANYANDITSOPERATIONS PakgenPowerLimited(“theCompany”)wasincorporatedinPakistanon22June1995

undertheCompaniesOrdinance,1984.TheregisteredofficeoftheCompanyissituatedat53-A,LawrenceRoad,Lahore.TheCompany’sordinarysharesarelistedontheKarachiStockExchangeLimitedandLahoreStockExchangeLimited.TheprincipalactivitiesoftheCompanyaretoown,operateandmaintainanoilfiredpowerstation(“theComplex”)havinggrosscapacityof365MWinMehmoodKot,Muzaffargarh,Punjab,Pakistan.

2. BASISOFPREPARATION Thiscondensedinterimfinancialinformationisunauditedbutsubjecttolimitedscopereview

bythestatutoryauditorsandisbeingsubmittedtoshareholdersasrequiredbysection245oftheCompaniesOrdinance,1984.Thiscondensedinterimfinancial informationoftheCompanyforthehalfyearended30June2014hasbeenpreparedinaccordancewiththerequirementsofInternationalAccountingStandards(IAS)34“InterimFinancialReporting”andprovisionsofanddirectivesissuedundertheCompaniesOrdinance,1984.Incasewhere requirements differ, theprovisions of or directives issued under theCompaniesOrdinance,1984havebeenfollowed.ThiscondensedinterimfinancialinformationshouldbereadinconjunctionwiththeprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2013.

3. ACCOUNTINGPOLICIES Theaccountingpolicies andmethodsof computationsadopted for thepreparationof

thiscondensedinterimfinancialinformationaresameasappliedinthepreparationoftheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2013.

4. CRITICALACCOUNTINGESTIMATESANDJUDGMENTS Thepreparationofthiscondensedinterimfinancialinformationinconformitywithapproved

accounting standards requires the use of certain critical accounting estimates. It alsorequiresmanagementtoexerciseitsjudgmentintheprocessofapplyingtheCompany’saccountingpolicies.Estimatesandjudgmentsarecontinuallyevaluatedandarebasedonhistoricalexperienceandother factors, includingexpectationsof futureeventsthatarebelievedtobereasonableunderthecircumstances.

Duringpreparationofthiscondensedinterimfinancialinformation,thesignificantjudgments

madebythemanagementinapplyingtheCompany’saccountingpoliciesandkeysourcesofestimationanduncertaintywerethesameasthosethatappliedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2013.

5. CONTINGENCIESANDCOMMITMENTS 5.1 Contingencies Thereisnochangeinthecontingenciesdisclosedintheprecedingauditedannualpublished

financialstatementsoftheCompanyfortheyearended31December2013exceptfollowing: 5.1.1Water andPowerDevelopmentAuthority (WAPDA) has raised invoices for liquidated

damagestotheCompanyfrom11thto16th(uptoMarch2014)agreementyear(aftertakingintoaccountforcedoutageallowancestipulatedunderthetermsofPowerPurchaseAgreement)onaccountofshortsupplyofelectricitybytheCompany,whichwasduetocashconstraintsoftheCompanyasaresultofdefaultbyWAPDAinmakingtimelypayments.LiquidateddamagesinvoicedtotheCompanyamountstoRupees2,451.452million.OutofthesetheCompanyhasacceptedandpaidRupees219.475million.

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PAKGEN POWER LIMITED

TheCompanydisputesand rejectsbalanceclaimsonaccountof liquidateddamagesthatareraisedbyWAPDAonthepremisethatitsfailuretodispatchelectricitywasduetoWAPDA’snon-paymentofdueson timelybasis to theCompanyandconsequentialinabilityoftheCompanytomaketimelypaymentstoitsfuelsupplier(PSO)thatresultedin inadequatelevelofelectricityproductionowingtoshortageoffuel.AgainstthesetheCompanyhasraisedinvoicedisputenoticestoWAPDA.

AccordingtolegaladviceavailablewiththeCompany,thereareadequategroundstodefend

anyclaimbyWAPDAforsuchliquidateddamagessincetheseconditionswereimposedontheCompanyduetocircumstancesbeyonditscontrol.Theultimateoutcomeofthemattercannotpresentlybedetermined,andconsequently,noprovisionforsuchliquidateddamageshasbeenmadeinthiscondensedinterimfinancialinformation.

5.2 Commitments Thereisnochangeinthecommitmentsdisclosedintheprecedingauditedannualpublished

financialstatementsoftheCompanyfortheyearended31December2013,exceptforthecommitmentsforlettersofcreditasatreportingdateareamountingtoRupees1,793million(31December2013:Rupees1,901million).

Un-audited Audited 30 June 31December 2014 2013 (Rupees in thousand)6. PROPERTY,PLANTANDEQUIPMENT Operatingfixedassets(Note6.1) 7,289,222 7,514,382 Capitalwork-in-progress(Note6.2) 966,073 689,298 8,255,295 8,203,680 6.1 Operating fixed assets Openingbookvalue 7,514,382 6,934,052 Add:Costofadditionsduringtheperiod/ year(Note6.1.1) 17,915 1,096,891 Less:Bookvalueofderecognitionsduringthe period/year(Note6.1.2) - - Less:Depreciationchargedduringtheperiod/year 243,075 516,561 Closingbookvalue 7,289,222 7,514,382 6.1.1 Cost of additions Freeholdland - 90,559 Buildingsonfreeholdland 1,896 7,637 Plantandmachinery 10,633 955,536 Vehicles - 2,260 Furnitureandfixtures - 1,523 Officeequipment 2,772 2,866 Electricequipmentandappliances 2,614 36,510 17,915 1,096,891

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Half Yearly Report 2014

Un-audited Audited 30 June 31December 2014 2013 (Rupees in thousand)6.1.2 Book value of derecognitions Cost -Plantandmachinery 2,911 146,552 -Electricequipmentandappliances - 517 2,911 147,069 Less:Accumulateddepreciation 2,911 147,069 - - 6.2 Capital work-in-progress Civilworks 212,891 207,901 Plantandmachinery 751,532 479,159 Others 1,650 2,238

966,073 689,298

Half Year Ended Quarter Ended 30 June 30 June 30 June 30 June 2014 2013 2014 2013 (Rupees in thousand) (Rupees in thousand)

7. COSTOFSALES

Fuel cost 15,926,365 14,643,192 6,938,729 9,058,539 Operation and maintenance costs 283,909 238,463 186,502 98,314 Insurance 159,062 153,503 79,518 75,192 Depreciation 235,974 269,561 118,162 171,300

16,605,310 15,304,719 7,322,911 9,403,345

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PAKGEN POWER LIMITED

Half Year Ended

30 June 30June 2014 2013 (Rupees in thousand)8. CASHGENERATEDFROMOPERATIONS Profitbeforetaxation 617,056 1,022,523 Adjustmentsfornon-cashchargesandotheritems: Depreciation 243,075 275,065 Provisionforgratuity 5,468 4,042 Interestincome (6,406) (13,149) Financecost 326,865 530,537 Cashflowsfromoperatingactivitiesbefore workingcapitalchanges 1,186,058 1,819,018 (Increase)/decreaseincurrentassets: Stores,sparepartsandotherconsumables 228 15,084 Fuelstock (179,019) 100,338 Tradedebts 638,673 5,058,977 Advancesandshort-termprepayments 460,895 (141,180) Otherreceivables (32,637) 64,250 Salestaxrecoverable (209,089) (73,810)

679,051 5,023,659 Increase/(decrease)tradeandotherpayables 140,716 (19,647) 2,005,825 6,823,030

9. TRANSACTIONSWITHRELATEDPARTIES RelatedpartiesoftheCompanycompriseofassociatedundertakingsandkeymanagement

personnel. Transactionswith relatedparties include expenses chargedbetween theseparties.TheCompanyinthenormalcourseofbusinesscarriesouttransactionswiththeserelatedparties.Detailoftransactionswithrelatedpartiesareasfollows:

(Un-audited) (Un-audited) Half Year Ended Quarter Ended

30 June 30 June 30 June 30 June 2014 2013 2014 2013 (Rupees in thousand) (Rupees in thousand)

Relationship with Nature of transaction the Company Associated Insurancepremium 184,431 204,663 92,234 101,164 undertakings Shareofexpenses 147,373 110,750 83,115 60,036 Shareofrentalincome 796 768 399 380 Rentexpense 3,139 3,139 1,569 1,570 Flyingservices 21,016 - 12,430 - Dividend 297,960 567,814 297,960 273,058 Keymanagement personnel Remuneration 11,610 8,042 4,110 4,021

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Half Yearly Report 2014

9.1 TheCompanysharespremises,employeesandothercommoncostswithitsassociatedcompany,LalpirPowerLimitedonfifty-fiftybasis inaccordancewith “SharedFacilitiesAgreement”.

10. EVENTSAFTERTHEREPORTINGPERIOD TheBoardofDirectorsoftheCompanyattheirmeetingheldon27August2014(2013:

22August2013)hasproposedcashdividendofRupeesNil(2013:Rupee1)pershare.However, thiseventhasbeenconsideredasanon-adjustingeventunder InternationalAccountingStandard (IAS) 10 ‘Events after theReportingPeriod’ and has not beenrecognizedinthiscondensedinterimfinancialinformation.

11. FINANCIALRISKMANAGEMENT TheCompany’sfinancialriskmanagementobjectivesandpoliciesareconsistentwiththose

disclosedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December2013.

12. CORRESPONDINGFIGURES InordertocomplywiththerequirementsofInternationalAccountingStandard34“Interim

FinancialReporting”,thecondensedinterimbalancesheetandcondensedinterimstatementof changes in equity havebeen comparedwith balances of audited annual publishedfinancial statementsof preceding financial year,whereas, the condensed interimprofitandlossaccount,condensedinterimcashflowstatementhavebeencomparedwiththeamountsofcomparableperiodofimmediatelyprecedingfinancialyear.

Correspondingfigureshavebeen re-arrangedand reclassified,wherevernecessary for

thepurposeofcomparison.However,nore-arrangementandreclassificationhavebeenmadeinthiscondensedinterimfinancialinformation,exceptprovidentfundcontributionandprovisionforgratuityamountingtoRupees4.546millionandRupees3.340millionrespectivelyhavebeenreclassifiedfromadministrativeexpensestocostofsales.

13. DATEOFAUTHORISATIONFORISSUE Thiscondensedinterimfinancialinformationwasauthorizedforissueon27August2014

bytheBoardofDirectorsoftheCompany. 14. GENERAL FigureshavebeenroundedofftothenearestthousandRupees.

CHIEF ExECUTIVE DIRECTOR

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PAKGEN POWER LIMITED