Saif Power : Transmission of 3rd Quarterly Report- Sept 30, 2023

SAIF POWER LIMITED

A Saif Group Company

Condensed Interim Financial Information

For Nine months ended September 30, 2023

CONTENTS

02	Corporate Information
03	Directors' Report to the Shareholders
	Condensed Interim Unconsolidated Financial Statements
08	Condensed Interim Unconsolidated Statement of Financial Position
09	Condensed Interim Unconsolidated Statement of Profit or Loss
10	Condensed Interim Unconsolidated Statement of Comprehensive Income
11	Condensed Interim Unconsolidated Statement of Cash Flows
12	Condensed Interim Unconsolidated Statement of Changes in Equity
13	Notes to the Condensed Interim Unconsolidated Financial Statements
	Condensed Interim Consolidated Financial Statements
19	Condensed Interim Consolidated Statement of Financial Position
20	Condensed Interim Consolidated Statement of Profit or Loss
21	Condensed Interim Consolidated Statement of Comprehensive Income
22	Condensed Interim Consolidated Statement of Cash Flows
23	Condensed Interim Consolidated Statement of Changes in Equity
24	Notes to the Condensed Interim Consolidated Financial Statements

Saif Power Limited

1

CORPORATE INFORMATION

Board of Directors

Mrs. Hoor Yousafzai	Chairperson
Mr. Javed Saifullah Khan	Director
Mr. Osman Saifullah Khan	Director
Mr. Assad Saifullah Khan	Director
Mr. Rana Muhammad Shafi	Director
Miss. Saima Akbar Khattak	Independent Director
Mr. Rashid Ibrahim	Independent Director

Audit Committee

Mr. Rashid Ibrahim	Chairman
Mr. Osman Saifullah Khan	Member
Mr. Rana Muhammad Shafi	Member

Human Resource and Remuneration Committee

Miss. Saima Akbar Khattak	Chairman
Mrs. Hoor Yousafzai	Member
Mr. Assad Saifullah Khan	Member

Management

Mr. Sohail H. Hydari

Chief Executive Officer

Mr. Hammad Mahmood

Chief Financial Officer

Mr. Ghias Ul Hassan

GM Power Plant

Mr. Waseemullah

Company Secretary

Auditors

Grant Thornton Anjum Rahman

302 B, 3rd Floor, Evacuee Trust Complex, Aga Khan Road, F-5/1, Islamabad, Pakistan. Tel: [phone], Fax: [phone]

Legal Advisors

Mr. Muhammad Naeem Amer (MNA) Rehan Advocate High Court

Registered/ Head Office

1st Floor, Kashmir Commercial Complex, Fazal-ul-Haq Road Block E, Blue Area, Islamabad, Pakistan.

Tel: [phone]

Fax: [phone]

Email: [e-mail]

Website

http://www.saifpower.com

Share Registrar

THK Associates (Private) Ltd. Plot No. 32-C, Jami Commercial Street 2, DHA Phase VII, Karachi. Tel: [phone], Email: [e-mail]

Banks & Financial Institutions

Allied Bank Limited

Askari Bank Limited

Bank Alfalah Limited

Bank Islami Pakistan Limited

Dubai Islamic Bank Limited

Faysal Bank Limited

First Habib Modaraba

Habib Bank Limited

Habib Metropolitan Bank Limited

Meezan Bank Limited

National Bank of Pakistan

Soneri Bank Limited

Summit Bank Limited

The Bank of Punjab

United Bank Limited

Plant Location

Chak 56/5L, Qadarabad,

Multan Road, District Sahiwal,

Punjab, Pakistan.

2 Saif Power Limited

DIRECTORS' REVIEW REPORT TO THE SHAREHOLDERS

FOR THE NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2023

The Board of Directors is pleased to present a concise review of Company's financial and operational performance on the condensed interim financial statements for the period ended September 30, 2023.

SUMMARY OF FINANCIAL PERFORMANCE

Turnover of the Company was Rs. 17,602 million as compared to Rs. 20,223 million for the same period last year. Dispatch level was 31.01% as compared to 41.19% during the same period last year. Net loss during the period was Rs. 25 million as against net profit of Rs. 1,860 million for the comparable period of 2022. Loss per share for the period is Rs. 0.07 as compared to earnings per share of Rs. 4.81 during the same period last year.

In the previous years, expenses against overhaul of the plant were charged annually based on the operating hours the plant operated in a year. This was rectified last year in the light of the relevant opinion issued by the Institute of Chartered Accountants of Pakistan and relevant International Accounting Standards during the year ended 31 December 2022. Resultant of which, additional expense charged in the previous years was reversed and was compensated in the current period. During the period, such interval of specific operating hours of plant operation was completed after a period of almost six years, as a result of which the amount of such overhaul was charged to profit and loss account in the current period, which resulted in loss for the period as operation and maintenance cost increased significantly as compared to the comparable period. The expenses charged in the previous years, prior to rectification, had already been reversed last year which have compensated the expenses for this year; there is zero effect in actual.

PENDING ISSUES

1. In the case against M/s Sui Northern Gas Pipelines Limited (SNGPL), after the arbitration award in Company's favor for an amount of Rs.
   270.66 million (disputed amount of Rs. 239.68 million & related costs of Rs. 30.98 million), the Company filed a petition in the Civil Court Lahore to obtain the enforcement Decree in lieu of the Arbitration award. The Company has already adjusted the awarded amount as above against payables to SNGPL.

SNGPL enforced another arbitration saying that Company could not adjust without a decree from the court. The arbitration tribunal has agreed with SNGPL in its award. SNGPL has filed a petition in the Lahore High Court, however, the Company's legal advisors are confident that ultimately the money will be retained by the Company.

1. In disputes with Central Power Purchasing Agency (Guarantee)
   Limited (CPPA-G) on account of 'Period Weighing Factors' (PWF) and
   'Heat Rate Correction Factor', the Company has proceeded and filed request for arbitration in London Court of International Arbitration during the period. In addition to this, the Company has obtained stay order against deduction on account of 'Heat Rate Correction Factor' from Civil Court, Islamabad. The same issues have also been disclosed in note 13 of these condensed interim financial statements.

KEY OPERATIONAL AND FINANCIAL DATA (STANDALONE)

	Nine months ended
	September 30,	September 30,
	2023	2022
		(Re-stated)
	Rupees in Million
Turnover	17,602	20,223
Net (loss) / profit	(25)	1,860
(Loss) / earnings per share	(0.07)	4.81
Dispatch level	31.01%	41.19%
Capacity made available - GWHs	1,337	1,336
	September 30,	December 31,
	2023	2022
	Rupees in Million
Property, plant and equipment	11,041	11,302
Net worth	12,377	13,867
Short term borrowings	8,919	15,527

KEY FINANCIAL HIGHLIGHTS DATA CONSOLIDATED

	Nine months ended
	September 30,	September 30,
	2023	2022
		(Re-stated)
	Rupees in Million
Turnover	17,602	20,223
Net profit	194	2,089
	September 30,	December 31,
	2023	2022
	Rupees in Million
Property, plant and equipment	11,041	11,302
Net worth	12,832	14,102

RECEIVABLES FROM POWER PURCHASER

The Company's total receivables are Rs. 11.47 billion (December 31, 2022: Rs. 11.65 billion) at the period end.

INVESTMENTS

1. In 2021, the Board of Directors of the Saif Power Limited approved the proposal for sale of land and other assets of Saif Cement Limited (SCL) which was also approved by the shareholders in the Extra
   Ordinary General Meeting held on June 26, 2021. During the period, transaction for sale of assets of SCL was completed and related amount have been transferred to SCL's bank account.

The Board of Directors of the Company has recommended voluntary winding up of SCL which has also been approved by the shareholders in their Extra Ordinary General Meeting held on September 11, 2023. Once the winding up is completed, proceeds from liquidation will be used to pay back to the Company and other sponsors according to their investment.

1. During the period, the Board of Directors of the Company recommended long term loan maximum up to Rs. 1 (one) billion in favor of Saif Textile Mills Limited, an associated company, in compliance with requirements of section 199 of the Companies Act 2017 on as and when required basis. The same was approved by the shareholders in their Extraordinary General Meeting held on September 11, 2023.

EVENT AFTER REPORTING DATE

The Board of Directors of the Company, in its Board Meeting held on October 26, 2023, have approved interim cash dividend of Rs. 1.50 per share.

ACKNOWLEDGEMENTS

Directors of the Company would like to show their appreciation to its customers, suppliers, financial institutions, regulators and to all other stakeholders for their cooperation and support during the period.

Directors would also like to express their deep appreciation for the services, loyalty and efforts being continuously rendered by the employees of the Company and hope that they will continue to do so in the future.

On behalf of the Board,

Islamabad	Hoor Yousafzai
October 26, 2023	Chairperson

Saif Power Limited

3

:تاعقاو ےک دعب ےک خیرات یک گنٹروپر

یک عفانم دقن یروبع ےکرئیش یف ےپور1.23ںیم گنٹیم ڈروب ینپا یلاو ےنوہ وک 0300ربوتکا 02 ےن زرٹکیرئاڈ فآ ڈروب ےک ینپمک ۔ےہ ید یروظنم

:رکشت راہظاِ

یفیرعت ےیل ےک زرڈلوہ کیٹسا مامت رگید روا زرٹیلوگیر ،ںورادا یتایلام ،زرئلاپس ،نیفراص ےنپا نارود ےک تدم سا زرٹکیرئاڈ ےک ینپمک ۔یک شیپ تیامح روا نواعت انپا نارود ےک تدم سا ےن ںوہنج ںیہ ےتہاچ انہک تاملک فیرعت یرہگ ینپا ےیل ےک ںوششوک روا یرادافو ،تامدخ یلاو ےناج ید لسلسم ےس بناج یک نیمزلام ےک ینپمک زرٹکیرئاڈ ےک ینپمک ۔ےگ ںیہر ےترک اسیا یھب ںیم لبقتسم ہو ہک ںیہ ےترک دیما روا ےگ ںیہاچ انرک راہظا اک

:ےس تباین یک زرٹکیرئاڈ فآ ڈروب

یئزفسوی روح نسرپرئیچ

دابآ ملاسا

0300 ربوتکا 02

4 Saif Power Limited

							: )مکحتسمریغ( :ںایکلھج یتایلام
	رپ ماتتخا	ےک ےنیہم ون
	ء 0300 ربمتس 03			ء 0300 ربمتس 03
	(Restated)
	)ںیم نیلم	ےپور(
	03,000			17,230	رابوراک
	1,823			)02(		عفانم / )ناصقن( صلاخ
	9.81			)3.37(		یندمآ رئیش یف / )ناصقن(
	دصیف 41.19			دصیف 31.01	ل ویل اک لیسرت
	1,336			1,007		)GWHS)تیحلاص بایتسد
	ء 0300 ربمسد 01			ء 0300 ربمتس 03
	)ںیم نیلم	ےپور(
	11,302			11,041	تلاآروا ٹنلاپ ،یٹرپارپ
	13,867			12,377	تیلام ٹین
	15,527			8,919		لوصح ےک ںوضرق ےک تدم رصتخم
							: )مکحتسم( :ںایکلھج یتایلام
	رپ ماتتخا ےک ےنیہم ون
	ء 0300 ربمتس 03		ء 0300 ربمتس 03
	(Restated)
	)ںیم نیلم ےپور(
	20,223		17,230		رابوراک
	2,089		194		عفانم / )ناصقن( صلاخ
	ء 0300 ربمسد 01		ء 0300 ربمتس 03
	11,302		11,041		تلاآ روا ٹنلاپ ،یٹرپارپ
	14,102		12,831		تیلام ٹین

:یلوصو ےس فرط یک رادیرخ یلجب

۔ںیہ )ےپور برا 11.22 :0300 ربمسد 01( ےپور برا 11.97 رپ ماتتخا ےک تدم یلوصو لک یک ینپمک

:یراک ہیامرس

یکزیوجت یک تخورف یک ںوثاثا رگید روا یضارا یک) SCL)ڈٹیمل ٹنمیس فیس ےن زرٹکیرئاڈ فآ ڈروب ےک ینپمک ،ںیم 0301 :)فلا( تدم سا ۔ یھت ید روظنم یھب ےن زرڈلوہ رئیش ںیم گنٹیم لرنج یلومعم ریغ یلاو ےنوہ وک 0301 نوج 02 یک سج ید یروظنم ۔ےہ یئگ ید رک لقتنم ںیم ٹنؤاکا کنیب ےک SCL مقر ہقلعتم روا ےہ ایگوہ لمکم نید نیل اک تخورف یک ںوثاثا ےک SCL ،نارود ےک

وک 0300 ربمتس 11 ےن ناگتفای صصح ےسج ےہ یکزیوجت یک ےنرک متخ رپ روط ہناراکاضر وک SCL ےن زرٹکیرئاڈ فآ ڈروب ےک ینپمک ےنوہ لصاح ےس نشیڈیوکیل ،دعب ےک ےنوہ لمکم نشیڈیوکیل ۔ےہ ید ےد یروظنم یھب ںیم گنٹیم لرنج یلومعم ریغ ینپا یلاو ےنوہ ۔اگ ےئاج ایک لامعتسا ےیل ےک یگیئادا قباطم ےک یراک ہیامرس یک نا وکزرسناپس رگید روا ینپمک لامعتسا اک مقر یلاو

ےک ینپمک ڈٹیمل زلم لئاٹسکیٹ فیس کت ےپور برا )کیا( 1 ہدایز ےس ہدایز ےن زرٹکیرئاڈ فآ ڈروب ےک ینپمک ،نارود ےک تدم سا :)ب( قباطم ےک ںوضاقت ےک 144 نشکیس ےک 0317 ٹکیا زینپمک ہکوج ۔یک شرافس یک ضرق یتدم لیوط رپ داینب یک ترورض ںیم قح ۔ید یروظنم یک سا ںیم گنٹیم لرنج یلومعم ریغ وک 0300 ربمتس 11 ےن ناگتفای صصح ۔ےہ

Saif Power Limited

5

ٹروپر ہزئاج یک زرٹکیرئاڈ وک ناگدننک صصح

ےیل ےک تدم یک ہام ون یلاو ےنوہ متخ وک 0300 ربمتس 03

روا یتایلام یک ینپمکرپ تانایب یتایلام یروبع صخلم ےیل ےک تدم یلاو ےنوہ متخ وک 0300 ربمتس 03 وکزرٹکیرئاڈ فآ ڈروب ۔ےہ یشوخ رپ ےنرک شیپ ہزئاج عماج کیا اک یگدرکراک لنشیرپآ

:ہصلاخ اک یگدرکراک یتایلام

یک چیپسڈ ۔اھت ےپور نیلم 03,000 ےیل ےک تدم یسا ںیم لاس ہتشزگ ںیم ےلباقم ےک ساروا اہر ےپور نیلم 17,230رابوراک اک ینپمک ےپور نیلم 02 ناصقن صلاخ ںیم تدم سا ۔یھت دصیف 91.14 نارود ےک تدم یسا یک لاس ہتشزگ ہکوج یہر دصیف 01.31 حطس ےپور 3.37 ناصقن رئیش یف ےیل ےک تدم یسا۔ اھت ےپور نیلم 1,823 عفانم صلاخ ںیم تدم یلباقت یک 0300لاس ہتشزگ ہکوج اہر - یھت ےپور 9.81 یندمآ رئیش یف ںیم تدم یسا یک لاس ہتشزگ ہکوج اہر

۔ےھت ےتاج ےیک جراچ ہنلااس رپ داینب یکراک تاقوا ےک ےنلاچ ےک ٹنلاپ ںیم لاس کیا تاجارخا ےک لاہ رووا ےک ٹنلاپ ،ںیم ںولاس ےلھچپ 0300 ربمسد 01 روا ےئار ہقلعتم ہدرک یراج ےس بناج یک ناتسکاپ فآ سٹنٹنؤاکا ڈرٹراچ فآ ٹویٹ یٹسنا لاس ہتشزگ حلاصا یک سا ،نارود ےک تدم سا ہچن انچ ۔یھت یئگ یک ںیم ینشور یک تارایعم گنٹنؤاکا یماوقلاا نیب ہقلعتم نارود ےک لاس ےلاو ےنوہ متخ وک

ً

رووا ےک حرط سا ںیم ےجیتن ےک سج ،اوہ لمکم دعب ےک ےصرع ےک لاس ھچ ابیرقت ہفقو اکراک تاقوا صوصخم ےک نشیرپآ ےک ٹنلاپ لاھب ھکید روا نشیرپآ ۔اوہ ناصقن ںیم ےجیتن ےک سج ،یئگ یک جراچ ںیم ےتاھک ےک ناصقن روا عفانم ںیم تدم ہدوجوم مقر یک لاہ ےس حلاصا ،تاجارخا ےئگ ےیک لوصو ںیم ںولاس ےلھچپ .یئگ ھڑب رپ روط ںایامن ںیم ےلباقم ےک تدم ہنزاوم تدم رپ روط ےک تگلا یک

.ےہرفص ںیم لصا رثا اک سج ۔ےہ یئگوہ یفلات یک تاجارخا ےک لاس سا ےس سج ےھت ےئگ ےید رک ٹلا یہ ےلہپ لاس ےلھچپ ،ےلہپ

:لئاسم ءاوتلا ریز

073.22 دعب ےک ےلصیف ےک یثلاث ںیم قح ےک ینپمک ،ںیم ےمدقم فلاخ ےک )SNGPL( ڈٹیمل زنئلا پئاپ سیگ نردران یئوس زرسیم لباق ضوع ےک ڈراویا ےک یثلاث ےن ینپمک ،)ےپور نیلم 03.48 تاجارخا ہقلعتم روا ےپور نیلم 004.28 مقر ہعزانتم( مقر یک ےپور نیلم

ِ

وک نئلا پئاپ سیگ نردران یئوس ےن ینپمک ۔ ےہ یھکر رک جرد یھب تساوخرد ںیم روہلا ٹروک لوس ےیل ےک ےنرک لصاح ہمان مکح ذافن ۔ےہ ید رک ٹسجڈیا یہ ےلہپ مقر ہی ںیم ےلماعم ےک موقر ادا لباق

ِ

ےن لنوبیرٹ یثلاث ۔یتکس رک ںیہن ٹسجڈیا مقر ہی ریغب ےک ےمان مکح ےک تلادع ینپمک ہک اہک ےئوہ ےترک ذفان یثلاث روا کیا ےن SNGPL ںوریشم ینوناق ےک ینپمک مہات ،ےہ یکرئاد تساوخرد کیا ںیم ٹروک یئاہ روہلا ےن SNGPL ۔ےہ ایک قافتا ےس SNGPL ںیم ڈراویا ےنپا ۔یگ ےہر یہ ساپ ےک ینپمک مقر رخلآاب ہک ےہ نیقی وک

یک 'رٹکیف نشکیرک ٹیر ٹیہ' روا )PWF( 'زرٹکیف گنیو ڈیریپ' ھتاس ےک )CPPA-G( ڈٹیمل )یٹنراگ( یسنجیا گنزیچرپ رواپ لرٹنس

.نارود ےک تدم ۔ےہ یکرئاد تساوخرد یک یثلاث ںیم ٹروک ندنل یک یثلاث یماوقلاا نیب رک ھڑب ےگآ ےن ینپمک ،ںیم تاعزانت ےس ہجو ایک لصاح یعانتما مکح فلاخ ےک یتوٹک ےس ہجو یک 'رٹکیف نشکیرک ٹیر ٹیہ' ےس دابآ ملاسا ،ٹروک لوس ےن ینپمک ،ہولاع ےک سا ۔ےہ ایگ ایک یھب ںیم 10 ٹون ےک تانایب یتایلام یروبع نا تحاضو اک لئاسم یہ نا ۔ےہ

6 Saif Power Limited

UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 2023

Saif Power Limited

7

SAIF POWER LIMITED

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2023

Note

Share capital and reserves

Un-audited	Audited
September 30,	December 31,
2023	2022

(Rupees)

Share capital	5
Unappropriated profit - revenue reserve
Maintenance reserve	6
Total equity
Liabilities
Subordinated loan	7
Lease liabilities
Non-current liabilities
Trade and other payables
Short term borrowings
Current portion of non-current liabilities
Markup accrued	8
Unclaimed and unpaid dividend	9
Current liabilities
Total liabilities
Total equity and liabilities
Contingencies and commitments	10
Assets
Property, plant and equipment	11
Right of use assets
Long term loan	12
Non-current assets
Stock in trade - HSD
Trade debts	13
Other receivables
Advances
Advance income tax
Trade deposits and prepayments
Short term investments
Bank balances
Assets classified as held for sale	14
Current assets

Total assets

3,864,717,790

8,293,500,050

218,799,114

12,377,016,954

83,223,016

16,267,989

99,491,005

598,499,262

8,919,274,893

758,689,059

1,482,918,598

348,781,357

12,108,163,169

12,207,654,174

24,584,671,128

11,040,943,519

33,335,250

8,015,497

11,082,294,266

399,899,816

11,472,116,326

578,208,234

3,440,935

9,125,231

222,064,209

25,894,751

2,448,720

12,713,198,222

789,178,640

13,502,376,862

24,584,671,128

3,864,717,790

9,001,248,625

1,001,140,025

13,867,106,440

260,866,789

21,093,221

281,960,010

308,712,514

15,526,546,088

605,195,974

1,054,652,926

388,752,232

17,883,859,734

18,165,819,744

32,032,926,184

11,302,149,549

44,570,395

-

11,346,719,944

400,211,550

11,647,458,624

505,647,636

1,525,773

8,072,924

88,070,192

7,242,386,646

3,654,255

19,897,027,600

789,178,640

20,686,206,240

32,032,926,184

The annexed notes 1 to 21 form an integral part of these unconsolidated condensed interim financial statements.

Chief Financial Officer

Chief Executive Officer

Director

8 Saif Power Limited