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AES LAL PIR (PRIVATE) LIMITED

BALANCE SHEET
AS AT 30 SEPTEMBER 2009
September 30, September 30,
Note 2009 2009
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8 31,862 383,193
Finance lease receivable 9 6,187,903 74,419,678
Derivative financial instrument -
Security deposits 271 3,259
Trade and other receivables 11 55,583 668,477
6,275,619 75,474,607
CURRENT ASSETS
Stores, spare parts and other consumables 10 712,714 8,571,554
Fuel stock 165,357 1,988,689
Trade and other receivables 11 3,214,198 38,655,999
Current portion of finance lease receivable 9 439,544 5,286,231
Current portion of derivative financial instrument - -
Sales tax refundable 472,810 5,686,315
Cash and bank balances 12 202,828 2,439,339
5,207,451 62,628,127
Non-current asset classified as held-for-sale - -
TOTAL ASSETS 11,483,070 138,102,734
SHARE CAPITAL AND RESERVES
Share capital 13 3,453,079 95,000,000
Capital reserve - retained payments reserve 14 107,004 1,835,403
Currency translation reserve - (91,197,402)
Other reserve - parent's share-based compensation 15 36,428 514,730
Retained earnings 6,218,562 111,889,605
9,815,073 118,042,336
NON-CURRENT LIABILITIES
Employee benefit obligations 16 19,499 234,507
19,499 234,507
CURRENT LIABILITIES
Current portion of interest bearing borrowings - -
Short-term running finance 17 1,309,500 15,748,884
Trade and other payables 18 338,998 4,077,007
1,648,498 19,825,891
TOTAL EQUITY AND LIABILITIES 11,483,070 138,102,734
The annexed notes from 1 to 27 form an integral part of these financial statements.

(Rupees in thousand) *(US Dollars)
CHIEF EXECUTIVE DIRECTOR
AES LAL PIR (PRIVATE) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009
September 30, September 30,
Note 2009 2009
Revenue 20 13,149,750 163,350,933
Operating costs 22 (11,192,766) (139,040,571)
Gross profit 1,956,984 24,310,362
Administrative expenses 23 (164,155) (2,039,193)
Other operating expenses 24 (6,830) (84,845)
Operating profit 1,785,999 22,186,324
Finance cost 25 (479,423) (5,955,565)
Other operating income 21 61,023 758,050
Profit before tax 1,367,599 16,988,809
Taxation 26 (7,599) (94,398)
Profit for the year 1,360,000 16,894,411
The annexed notes from 1 to 27 form an integral part of these financial statements.

(Rupees in thousand) *(US Dollars)
CHIEF EXECUTIVE DIRECTOR
AES LAL PIR (PRIVATE) LIMITED
CASH FLOW STATEMENT
FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009
September 30, September 30,
2009 2009
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1,367,599 16,988,809
Adjustments to reconcile profit before tax to net cash flows
Depreciation 6,800 84,472
Provision for gratuity 8,185 101,677
Provision for stock option expense 2,519 31,292
Provision for long-term compensation 821 10,199
Provision for slow moving / obsolete stores and spares 532 6,609
Provision for doubtful debts - -
Provision against WWF - net receivable from WAPDA - -
Assets held for sales - -
Loss/(gain) on sale of property, plant and equipment (6,950) -
Interest income (17,495) 217,329
Finance cost 479,423 5,955,565
1,841,434 23,395,952
Working capital adjustments
Stores, spare parts and other consumables (24,156) (1,883,619)
Fuel stock (91,507) (1,257,187)
Trade and other receivables 3,276,524 41,633,088
Sales tax refundable (68,887) (1,685,360)
Trade and other payables (97,387) (245,492)
2,994,587 36,561,431
Cash generated from operations 4,836,021 59,957,383
Finance cost paid (529,466) (7,476,221)
Employee benefits paid (33,849) (55,300)
Income tax refunded / (paid) - net (5,532) (67,418)
Net cash flows from operating activities 4,267,174 52,358,443
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (3,730) (52,669)
Proceeds from sales of property, plant and equipment held for sale 25,803 364,346
Finance lease repayments received 270,653 3,821,701
Security deposits - -
Trade and other receivables - non current (36,080) (509,461)
Interest received 17,046 240,695
(Rupees in thousand) (US Dollars)
Net cash from investing activities 273,692 3,864,613
2009 2009
C. CASH FLOWS FROM FINANCING ACTIVITIES
Payments of interest bearing borrowings - -
Dividend paid (379,031) (4,679,390)
Net cash used in financing activities (379,031) (4,679,390)
D. EFFECT OF EXCHANGE RATE CHANGES ON CASH 1,338,608
Net decrease in cash and cash equivalents (A+B+C) 4,161,835 52,882,274
Cash and cash equivalents at beginning of the year (5,120,409) (65,062,376)
Cash and cash equivalents at end of the year (958,574) (12,180,102)
CASH AND CASH EQUIVALENTS
Cash in hand 45 572
Cash at bank 202,783 2,576,658
Short-term running finance (1,161,402) (14,757,332)
(958,574) (12,180,102)
The annexed notes from 1 to 27 form an integral part of these financial statements.

____________________________
CHIEF EXECUTIVE
(Rupees in thousand) (US Dollars)
Revenue
Balance as at 1 January 2008 3,453,079 107,004 14,695 7,300,637 10,875,415
Profit for the year - - - 889,397 889,397
Value of employee services under IFRS 2 - - 16,695 - 16,695.00
Total recognized income and expense for the year - - 16,695 889,397 906,092
Interim dividend @ Rs. 7.58 per share - - - (2,952,441) (2,952,441)
Balance as at 31 December 2008 3,453,079 107,004 31,390 5,237,593 8,829,066
Profit for the year - - - 1,360,000 1,360,000
Value of employee services under IFRS 2 (note: 6.3) - - 5,038 - 5,038.00
Total recognized income and expense for the year - - 5,038 1,360,000 1,365,038
Dividends @ Rs. 8.55 per share- 2009 - - - (379,031) (379,031)
Balance as at 30 Sep 2009 3,453,079 107,004 36,428 6,218,562 9,815,073
Balance as at 1 January 2008 95,000,000 1,835,403 241,156 (44,699,399) 124,891,219 177,268,379
Net exchange differences on translation of foreign operations
charged to equity - - - (40,077,531) - (2,216,779)
Net income recognised directly in equity - - - (40,077,531) - (2,216,779)
Profit for the year - - - - 12,532,297 31,114,234
Value of employee services under IFRS 2 - - 212,135 - - 65,835
Total recognised income and expense for the year - - 212,135 (40,077,531) 12,532,297 28,897,455
Interim dividend @ $ 0.12 per share - - - - (37,748,932) (42,673,855)
Balance as at 31 December 2008 95,000,000 1,835,403 453,291 (84,776,930) 99,674,584 163,557,815
Net exchange differences on translation of foreign operations
charged to equity - - - (6,420,472) - (6,420,472)
Net income recognised directly in equity - - - (6,420,472) - (6,420,472)
Profit for the year - - - - 16,894,411 16,894,411
Value of employee services under IFRS 2 (note: 6.3) - - 61,439 61,439
Total recognised income and expense for the year - - 61,439 - 16,894,411 16,955,850
Dividends @ Rs. 0.11 per share 2009 - - - - (4,679,390) (4,679,390)
Balance as at 30 Sep 2009 95,000,000 1,835,403 514,730 (91,197,402) 111,889,605 118,042,336
The annexed notes from 1 to 27 form an integral part of these financial statements.

CHIEF EXECUTIVE DIRECTOR
TOTAL
------------------------- (Rupees in thousand) -------------------------
STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009
AES LAL PIR (PRIVATE) LIMITED
DESCRIPTION
Retained
payments
reserve Share Capital
Retained
earnings
Other Reserve -
parent's share based
compensation
Reserves
Capital
Total Share Capital
Retained
payments
reserve
Currency
Translation
Reserve
-
----------------------------------- *(US Dollars) -----------------------------------
DESCRIPTION
Other Reserve -
parent's share based
compensation
Retained
Earnings
AES LAL PIR (PRIVATE) LIMITED
8. PROPERTY, PLANT AND EQUIPMENT
NET BOOK
VALUE
As at
1 January
2009
Additions Transfers (Deletion)
As at
31 December
2009
As at
1 January
2009
(Deletion)
As at 31
December 2009
As at 31
December 2009
Furniture and fittings 10,372 - - 10,372 9,162 (331) 8,831 1,541 10 306
Vehicles 25,321 25,321 13,696 3,342 17,038 8,283 20 4,982
Office equipment 26,811 3,730 30,541 24,490 1,323 25,813 4,728 10-33 6,550
Electrical equipment and appliances 28,338 (280) 28,058 9,432 1,650 11,082 16,976 6.66-33
Telephone installation 11,677 11,677 10,888 768 11,656 21 10
Clinical equipment 1,393 - - - 1,393 1,032 48 1,080 313 10
Total 103,912 3,730 - (280) 107,362 68,700 - 75,500 31,862
NET BOOK
VALUE
As at
1 January
2009
Additions Transfers (Deletion)
As at 31
December
2009
As at
1 January
2009
Depreciation
charge for the
year
As at 31
December 2009
As at 31
December 2009
Furniture and fittings 169,063 - - - 124,740 149,340 (4,037) 106,207 18,533 10
Vehicles 412,730 - - - 304,527 223,244 40,756 204,910 99,617 20
Office equipment 437,017 52,669 - - 367,306 399,185 16,134 310,444 56,862 10-33
Electrical equipment and appliances 461,907 - - (3,558) 337,443 153,741 20,122 133,279 204,164 6.66-33
Telephone installation 190,334 - - - 140,435 177,474 9,366 140,183 252 10
Clinical equipment 22,706 - - - 16,753 16,822 585 12,989 3,764 10
Total 1,693,757 52,669 - (3,558) 1,291,204 1,119,804 82,927 908,012 383,192
---------------------------------------------------------------- 2009 ----------------------------------------------------------------
---------------------------------------------------------------- 2009 ----------------------------------------------------------------
(US Dollars)
PARTICULARS
Rate (%)
ACCUMULATED DEPRECIATION
(Rupees in thousand)
PARTICULARS
Depreciation
charge for the
year
6,800
-
-
(104,875)
COST
Exchange
difference arising
on translation
Exchange
difference arising
on translation
ACCUMULATED DEPRECIATION
(59,090) -
(294,719)
(46,656)
(4,418)
Rate (%)
(Deletion)
(108,204)
(122,380)
(120,906)
(44,322)
(40,584)
(39,096)
-
-
-
COST
(451,664)
(49,899)
(5,953)
-
2,936
468
57
AES LAL PIR (PRIVATE) LIMITED
9 FINANCE LEASE RECEIVABLE
Minimum
lease Present
payments value
Within one year 1,661,714 439,544
After one year but not more than five years 5,220,089 1,874,412
More than five years 7,173,578 1,890,586
14,055,381 4,204,542
Unguaranteed residual value 2,422,905 2,422,905
Gross investment in finance lease 16,478,286 6,627,447
Unearned finance income (9,850,839)
Total finance lease receivables 6,627,447 6,627,447
Current portion (439,544) (439,544)
6,187,903 6,187,903
Minimum
lease Present
payments value
Within one year 19,984,838 5,286,231
After one year but not more than five years 62,780,124 22,542,877
More than five years 86,274,032 22,737,397
169,038,994 50,566,505
Unguaranteed residual value 29,139,404 29,139,404
Gross investment in finance lease 198,178,398 79,705,909
Unearned finance income (118,472,489) -
Total finance lease receivables 79,705,909 79,705,909
Current portion (5,286,231) (5,286,231)
74,419,678 74,419,678
The Company's business is the generation of electricity. For that purpose, the Company entered into PPA
with WAPDA to secure contracted revenues for a minimum period of 30 years. The term of the PPA
entered into is a substantial portion of the asset's useful economic life.
The interest rate used to discount future minimumlease payments under the lease is based on a pattern
reflecting a constant periodic rate of return on the lessors net investment in the finance lease. The
effective interest rate is approximately 29% per annum.
2009
(Rupees in thousand)
2009
(US Dollars)
AES LAL PIR (PRIVATE) LIMITED
Note 2009 2,009
10 STORES, SPARE PARTS AND OTHER CONSUMABLES
Stores, spares and other consumables 775,125 9,322,149
Provision for slow moving spares 10.1 (62,411) (750,595)
712,714 8,571,554
10.1 Provision for slow moving spares
Opening balance 55,215 664,051
Charge for the year - -
Reversal - -
Exchange rate difference - -
Closing balance 55,215 701,588
Note 2009 2,009
11 TRADE AND OTHER RECEIVABLES
Trade receivables 2,241,575 26,958,615
-
Provision for impairment of trade receivables (32,305) (388,521)
Trade receivables - net 2,209,270 26,570,094
Prepayments 48,998 589,281
Receivable from other related parties 11.1 200,270 2,408,575
Interest receivable 994 11,954
19.1.1 245,665 2,954,523
11.2 6,608 79,472
Advances
- for expenses 3,551 42,707
- to suppliers 478,806 5,758,427
- others -
Advance income tax - net 1,052 12,652
Others 8,580 103,189
Loans to employees 65,987 793,602
3,269,781 39,324,476
Non current portion of loans to employees (55,583) (668,477)
3,214,198 38,655,999
Workers' profit participation fund - receivable
from WAPDA
Worker's welfare fund - net receivable from WAPDA
(US Dollars)
(Rupees in thousand) (US Dollars)
(Rupees in thousand)
AES LAL PIR (PRIVATE) LIMITED
11.1 This represents amount receivable from group companies against expenses incurred on behalf of such companies.
Note 2009 2,009
11.2 Worker's welfare fund - net receivable from WAPDA
Opening balance 6,608 79,472
-
Provision made during the year 21 - -
Exchange rate difference on translation
6,608 83,964
11.3 Movement in the provision for impairment of trade receivables is as follows:
Note 2009 2,009
Opening balance 32,305 3 -
Provision for receivables impairment 21 -
Exchange difference on translation 410,486
Receivables written off during the year -
Closing balance 32,305 410,483
12 CASH AND BANK BALANCES
Cash in hand 45 541
Cash at bank: -
Deposit accounts - US Dollars 15,783 189,816
Deposit accounts - J apanese Yen 146 1,756
15,929 191,572
Savings accounts 147,283 1,771,319
Current accounts 39,571 475,906
202,828 2,439,338
(US Dollars)
(US Dollars)
(Rupees in thousand)
(Rupees in thousand)
AES LAL PIR (PRIVATE) LIMITED
2,009
13 SHARE CAPITAL
Authorised capital:
500,000,000 Ordinary shares of Rs. 10 each 5,000,000
2009 2,009
(Rupees in thousand)
Issued, subscribed and paid-up capital:
266,340,197 Ordinary shares of Rs.10 each
fully paid in cash 2,663,402 33,842,465
789,677 10,034,015
3,453,079 43,876,480
13.1
13.2 CAPITAL RISK MANAGEMENT
2009 2,009
Trade and other payables 338,998 4,077,007
Cash and cash equivalents 1,106,672 13,309,545
Net debt 1,445,670 17,386,552
Equity 9,815,073 118,042,336
Capital and net debt 11,260,743 135,428,888
Gearing ratio 13% 0
14 CAPITAL RESERVE - Retained payments reserve
2009 2,009
Retained payment reserve 107,004 1,835,403
AES Transpower Inc., which is the holding company, held 255,152,566 (2008: 255,152,566) Ordinary shares of Rs. 10 each as on 31
December 2009.
(Rupees in thousand)
(US Dollars)
78,967,742 Ordinary shares of Rs.10 each issued as
fully paid for consideration other than cash
(Rupees in thousand) (US Dollars)
Under clause 9.11 of the Power Purchase Agreement (PPA), the Company is required to maintain Retained Payments Fund ("the
reserve"). Initially the fund was established at one twenty fourth of the annual operating and maintenance budget of the Company's first
year of operations less fuel expenses. The fund can be only be utilized to pay expenses on major maintenance for proper operation of
the Complex in case of non availability of sufficient funds. The reserve fund needs to be replenished for the monies utilized by the
Company.
(US Dollars) (Rupees in thousand)
AES LAL PIR (PRIVATE) LIMITED
15 Employees stock option reserve 2009 2,009
Opening Balance 31,390 453,291
Value of employee services under IFRS 2 5,038 49,916
Transfer of reserve from AES Pak Gen (Private) Company - -
Closing Balance 36,428 514,730
Note 2009 2,009
16
Provision for gratuity 16.1 8,184 98,426
Provision for long-term compensation 16.2 11,315 136,081
19,499 234,507
16.1 Provision for gratuity
The principal assumptions used in the valuation of gratuity are as follows:
2,009
- Discount rate 10% per annum
- Expected rate of increase in salaries 8% per annum
2009 2,009
The amount recognized in the balance sheet are as follows:
Present value of defined benefit obligation 37,296 473,901
Unrecognized actuarial loss (3,077) 39,098 -
34,219 434,803
The movement in provision for gratuity recognized in the balance sheet is as follows:
Opening liability 18,949 374,852
Charge for the year 19,406 274,019
Benefits paid (4,136) 52,554 -
Exchange difference on translation - 161,514 -
Liability recognized at the balance sheet date 34,219 434,803
Movement in the present value of the defined benefit obligation:
Obligation at beginning of year 22,026 239,809
Current service cost 12,177 171,943
Past service cost 5,334 75,318
Interest cost 1,895 26,758
Benefits paid (4,136) 52,554 -
Actuarial loss - -
Exchange difference on translation - 12,627
Obligation at end of year 37,296 473,901
Charge for the year recognized in profit and loss account
Current service cost 12,177 171,943
Past service cost 5,334 75,318
Interest cost 1,895 26,758
Transitional liability recognized - -
-
19,406 274,019
(Rupees in thousand) (US Dollars)
(Rupees in thousand) (US Dollars)
EMPLOYEE BENEFITS OBLIGATION
(Rupees in thousand) (US Dollars)
AES LAL PIR (PRIVATE) LIMITED
16.2
2009 2,009
17 SHORT-TERM RUNNING FINANCE
Working capital finance -secured 1,161,402 13,967,763
Add: Interest accrued thereon 148,098 1,781,121
1,309,500 15,748,884
Note 2009 2,009
18 TRADE AND OTHER PAYABLES
Creditors 86,233 1,037,093
Accrued expenses 88,962 1,069,914
Payable to other related parties 18.1 90,479 1,088,158
Workers' profit participation fund payable 57,553 692,169
-
Worker Welfare Fund payable 7,990 96,093
Others 7,781 93,579
338,998 4,077,006
Trade payables are non-interest bearing and are normally settled on 30 days terms.
Other payables are non-interest bearing and have an average term of 1-3 months.
18.1 This represents amount payable to group companies against expenses incurred on behalf of the Company.
18.2 Workers' profit participation fund payable
Opening balance 150,631 1,811,585
Allocation for the year - -
Payment made to the fund
- -
Closing balance 150,631 1,811,585
(Rupees in thousand) (US Dollars)
(Rupees in thousand) (US Dollars)
This represents the amount of a provision created against performance bonus to executives of the Company for meeting their allocated
budgets. The amount of bonus is paid in third year of accrual.
18.2 &
19.1.1
AES LAL PIR (PRIVATE) LIMITED
19 CONTINGENCIES AND COMMITMENT
19.1 Contingencies
19.1.1
The changes to the law will not affect the aforementioned petition filed by the Company.
19.1.2
19.1.3
19.2 Commitment
Note 2009 2,009
20 REVENUE
Energy 10,398,953 129,179,540
Energy premium - -
Finance income 975,633 12,119,663
Contingent rental income 923,326 11,469,888
Service fee 583,016 7,242,438
Interest on delayed payments 268,822 3,339,404
Subsequently, the Inspecting Additional Commissioner of Income Tax (IACIT) re-opened the above assessment orders under section
66A of the ITO, 79, creating an additional tax demand of Rs.781 million; US $ 12.73 million, by treating the assessment orders as
erroneous and prejudicial to the interest of revenue. Completed assessments were reopened on the ground that while framing the
assessments under section 52/86, the assessing officer failed to take cognizance of the fact that the Companyfailed to withhold tax, as
required under section 50(3) of the ITO, 79, at the time of issuance of the shares to its Parent Companyas considerationpaid other than
cash in lieu of Project Development Expenditure incurred by the parent company. The said reassessments made by IACIT were
contested by the company in Income Tax Appellate Tribunal (ITAT), Lahore. The ITAT remanded back the case to the IAC for re-
examination with specific directions.
The Company has issued a letter of credit in favour of WAPDA for an amount of Rs. 596 million; US $ 7.57 million (2008: Rs. 596
million; US $ 9.71 million) to meet its obligations under the PPA.
Against the decision of ITAT, the Company filed an application before the ITAT to refer the case to the High Court which was rejected.
Thereafter, the Company filed a reference application directly before the Lahore High Court which is still pending for hearing. Based on
the legal advice, management asserts that the Company has a strong case and the probabilityof this liability arising is low. Accordingly,
no provision has been made in these financial statements for such liability.
(Rupees in thousand) (US Dollars)
Management, based on the legal advice, asserts that if the Company does not succeed in the above petition and it is held that the
scheme is applicable to the Company, anypayments that the Company is ultimately required to make under the provision of the Act are
considered as pass through items recoverable fromWAPDA under the provisions of the PPA. Consequently, there will be no impact on
its financial position and its results of operations, even if it does not succeed in the above petition.
Upto the year ended 31 December 2002, the Companyhad recorded and paid to the Federal Treasury contributions on its annual profit
as per the provisions of the Companies Profit (Workers Participation) Act, 1968 (the Act).
The Company has entered into a contract for a period of thirty years for purchase of oil from Pakistan State Oil Company Limited.
The Deputy Commissioner of Income Tax (DCIT) made assessment orders (under section 52/86 of the Income Tax Ordinance, 1979
[ITO 79]), creating tax demands aggregatingto Rs.59 million; US $ 0.96 million, with respect to the assessment years 1995-1996, 1996-
1997and 1997-1998on the allegednon-withholdingof income taxbythe Companyin respect of payments made to various resident and
non-resident persons against purchase of services rendered. The Company deposited the tax against the above assessment in
accordance with the departmental procedures. The Company filed an appeal before the Commissioner of Income Tax (Appeals) (CIT-
Appeals) against the above orders who set aside the additions made by the DCIT in his assessment orders except one where the
directions to re-examine the issues is given.
Consequent to the amendments that have been made in the Act through the Finance Act, 2006, the Company is required to pay 5%of
its profits to WPPF fromthe financial year 2006. Based on the legal advice, the Company is not booking accruals of WWF considering
the fact that the Company is not liable to pay WWF.
Basedon the legal advice, the Companyhas filed a petition on 15 April 2004 in the Lahore High Court challenging the application of the
Act to the Companyon the ground that since inception the Companyhas not employedanypersons who falls within the definition of the
term"Worker" as per the provisions of the Act. The Company asserts that it had erroneously deposited in the past certain sums with
Federal Treasuryas contributions of Workers Profit ParticipationFund (WPPF) and Worker's Welfare Fund(WWF), althoughit was not
obligated to make such payments. The petition has been filed subsequent to the Company's receipt of the Central Board of Revenue's
Income Tax/Wealth Tax Circle's letter dated 30 March 2004 directing the Company to allocate five percent of its net profit towards the
WPPF and deposit the un-utilized amount of the WPPF in the Federal Treasury. The petition had been filed against the Labor,
Manpower and Overseas Pakistani Division of Ministry of Labor, Manpower and Overseas Pakistanis .
AES LAL PIR (PRIVATE) LIMITED
13,149,750 163,350,933
Note 2009 2,009
21 OTHER OPERATING INCOME
Interest income 17,495 217,329
Bonus income 29,633 368,112
Exchange gain - -
Rent income 21.1 1,048 13,019
Gain on sale of property, plant and equipment 6,950 86,335
Others 5,897 73,255
61,023 758,050
21.1
Note 2009 2,009
22 OPERATING COSTS
Fuel cost 22.1 10,914,553 135,584,509
Operation and maintenance cost 22.2 211,865 2,631,863
Insurance cost 65,539 814,149
Others 809 10,050
11,192,766 139,040,571
22.1 Fuel cost
Fuel consumed:
Opening stock 73,850 1,042,785
Purchases during the year 11,006,060 155,408,924
Exchange difference on translation - 233,786 -
11,079,910 156,217,923
Closing stock (165,357) 2,101,105 -
10,914,553 154,116,817
Note 2009 2,009
22.2 Operation and maintenance costs
Power station salaries, wages and allowances 17,452 216,795
Repair and maintenance 116,628 1,448,795
Stores and spare parts consumed 45,853 569,602
Provision for slow moving / obsolete stores and spares 532 6,609
Power 31,400 390,062
Oil handling charges - -
211,865 2,631,863
Note 2009 2,009
(Rupees in thousand)
(Rupees in thousand) (US Dollars)
(Rupees in thousand) (US Dollars)
(Rupees in thousand) (US Dollars)
(US Dollars)
Rent income is shared between the Company and AES Pak Gen (Private) Company, other related party, on a forty-five and fifty-five
basis respectively.
AES LAL PIR (PRIVATE) LIMITED
23 ADMINISTRATIVE EXPENSES
Salaries, benefits and other allowances 69,488 863,205
Bonus 5,785 71,863
Provident fund contributions 5,422 67,354
Provision for gratuity 16 8,185 101,677
Stock option expenses 2,519 31,292
Provision for long-term compensation 821 10,199
Traveling, conveyance and entertainment 6,030 74,907
Rent, rates and taxes 3,179 39,491
Communication and utilities 2,353 29,230
Insurance cost 2,294 28,497
Repairs and maintenance 1,685 20,932
Printing and stationery 176 2,186
Advertisement and publicity 26 323
Legal and professional charges 8,879 110,298
Depreciation 5 6,800 84,472
Freight and octroi 168 2,087
Community welfare 21,157 262,820
Safety 6,542 81,267
Provision against WWF - net receivable from WAPD 11.2 - -
Advertisement 185 2,298
Advance - written off - -
General expenses 12,461 154,795
164,155 2,039,193
24 OTHER OPERATING EXPENSES
Exchange loss - net 5,889 73,155
Loss on disposal of property, plant and equipment - -
Auditors' remuneration 941 11,689
Charity and donations - -
Workers' profit participation fund 24.1 - -
6,830 84,844
24.1 Workers' profit participation fund
Allocation for Workers' profit participation fund - -
Allocation to Workers' profit participation fund
recoverable from WAPDA - -
- -
25 FINANCE COST
Mark-up on interest bearing borrowings - -
Mark-up on short-term running finance 473,072 5,876,671
Commitment fee - -
Loss on changes in fair values of derivative -
financial instrument (NEC) 24.1 - -
Others 6,351 78,894
479,423 5,955,565
AES LAL PIR (PRIVATE) LIMITED
25.1
2009 2,009
26 TAXATION
Current 7,599 94,398
27 RELATED PARTY TRANSACTIONS
2009 2,009
Related party Nature of transaction
Holding companies Dividend paid
341,128 4,211,451
Other related parties Current account balance 1,120,953 14,243,367
180,519 2,293,761
1,409 17,903
Services received
12,913 164,079
6,402 81,347
10,007 127,154
686 8,717
27.1
Share of rent income earned
The Company's plant was partlyfinanced throughUSD andJ PY loans obtainedfromforeign banks. These loans were recoverable under
Non Escalable Clause (NEC) portion of capacityrevenue receipts that enable the Companyto recover the loan andrelated interest costs
in Pak rupees based on foreign currency conversion rates prevailing during the period to which the payments relate. The indexation in
the NEC for changes in foreign currency rates was considered as embedded derivative which was separated fromhost contract and
valued at fair value as a financial asset. This amount represents the loss on the changes in fair value of embedded derivative.
CHIEF EXECUTIVE DIRECTOR
The numerical reconciliation between the average tax rate and the applicable tax rate has not been presented in these financial
statements as the total income of the Company except other income is exempt fromlevy of income tax under clause 132 of Part I and
clause 15 of Part IV of the second schedule to the Income Tax Ordinance, 2001.
Staff retirement benefit plan Contribution made to
provident fund
Share of expenses incurred
The related parties of the Company comprise of parent company, other group companies (termed as other related parties), key
management personnel and staff retirement benefit plan. Transactions with related parties include expenses charged between group
companies. The outstanding balances with related parties at 31 December 2009 are included in note 11 and 18. Other significant
transactions with related parties are as follows:
(Rupees in thousand)
The Company shares premises, employees and other common costs with its other related party (AES Pak Gen (Private) Company) on
fifty-fifty basis in accordance with "Shared Facilities Agreement" .
Key management personnel Short term benefits
Retirement benefits
(US Dollars)