CONTENTS Nishat Power Limited Company Profile 2 Directors’ Report 3 Condensed Interim Balance Sheet 4-5 Condensed Interim Profit and Loss Account 6 Condensed Interim Statement of Comprehensive Income � Condensed Interim Cash Flow Statement 8 Condensed Statement of Changes in Equity 9 Selected Notes to the Condensed Interim Financial Information 10-15 Ist Quarterly Report 2009 1 COMPANY PROFILE BOARD OF DIRECTORS Mian Raza Mansha Director / Chairman Mian Hassan Mansha Director / Chief Executive Mr. Khalid Qadeer Qureshi Mr. Aftab Ahmad Khan Mr. Shahzad Ahmad Malik Mr. Muhammad Shahzad Sadiq Director - Nominee ABL Mr. Masood Karim Shaikh Director - Nominee NBP Mr. Rizwan Hameed Alternate Director - Nominee NBP AUDIT COMMITTEE Mr. Khalid Qadeer Qureshi Member / Chairman Mr. Aftab Ahmad Khan Member Mr. Shahzad Ahmad Malik Member CHIEF FINANCIAL OFFICER Mr. Tanvir Khalid COMPANY SECRETARY Mr. Khalid Mahmood Chohan BANKERS OF THE COMPANY Habib Bank Limited United Bank Limited Allied Bank Limited National Bank of Pakistan Faysal Bank Limited Bank Alfalah Limited AUDITOR OF THE COMPANY A. F. Ferguson & Co. Chartered Accountants leGAL ADVIsoR OF THE coMPANY Cornelius, Lane & Mufti Advocates & Solicitors REGISTERED OFFICE 53 - A, Lawrence Road, Lahore - Pakistan UAN: 042-111-11-33-33 HEAD OFFICE � - Main Gulberg, Lahore - Pakistan UAN: 042-111-33-22-00 Tel: 042-5�16351 to 59, Fax: 042-5�16349-50 SHARE REGISTRAR Hameed Majeed Associates (Pvt.) Ltd. Financial & Management Consultants H.M. House, �-Bank Square, Lahore - Pakistan. Tel: 042-�235081-2 PLANT 66-K.M, Multan Road, Jambar Kalan, Tehsil Pattoki, District Kasur. 2 Nishat Power Limited DIRECTORS’ rEPORT The Board of Directors of Nishat Power Limited is pleased to present the, un-audited Financial Statements for the first quarter ended September 30, 2009. PRINCIPAL ACTIVITY The principal activity of the company is to Build, Own, Operate (BOO) a Residual Furnace Oil (RFO) fired power plant based on combine cycle Reciprocating Engine Technology having gross capacity of 200MW ISO in Jamber Kalan, Tehsil Pattoki, District Kasur, Punjab, Pakistan. PROJECT ACTIVITY During the first three months of fiscal year the company successfully completed the pre- synchronization tests and during testing and commissioning phase it has started exporting energy to NTDC. OPERATING FINANCIAL RESULTS; QUARTER ENDED September 30, September 30, Highligts 2009 2008 Turnover 134,657,454 - Operating Cost 155,388,842 - Other operating income 1,795,044 1,938,268 Administrative expenses (2,719,761) (2,030,1�2) Finance cost (4,382) - Loss Before Taxation (21,660,487) (91,904) Loss for the Period (21,660,487) (91,904) Loss per share in Rupees (0.061) (0.001) The turnover amounting to Rs134.65� million, is in connection with the fuel cost component of energy purchase price receivable from National Transmission and Dispatch Company (NTDC). As the project is in construction, testing and commissioning phase therefore the trial run loss amounting to Rs.21.660 million has been accounted for during this quarter. FUTURE PROSPECTS; The company is in the phase of full load testing and is expected to achieve Commercial Operation Date within first week of November 2009 subject to successful completion of Reliability Run Tests as required under Power Purchase Agreement dated November 13, 200�. Chief Executive Lahore: October 26, 2009 Ist Quarterly Report 2009 3 CONDENSED INTERIM BALANCE SHEET AS AT SEPTEMBER 30, 2009 Un-audited Audited Note September 30, June 30, 2009 2009 ----------------Rupees--------------- EQUITY AND LIABILITIES CAPITAL AND RESERVES Authorised capital 500,000,000 (June 30, 2009: 500,000,000) ordinary shares of Rs 10 each 5,000,000,000 5,000,000,000 Issued, subscribed and paid up capital 354,088,500 (June 30, 2009: 291,250,000) ordinary shares of Rs 10 each 4 3,540,885,000 2,912,500,000 Accumulated loss (44,389,111) (20,�06,410) 3,496,495,889 2,891,�93,590 NON-CURRENT LIABILITIES Long term financing - secured 5 11,989,176,921 11,396,546,2�1 CURRENT LIABILITIES Current portion of long term financing - secured 416,833,355 253,439,983 Trade and other payables 725,135,643 680,986,841 Accrued markup 488,206,966 436,094,554 Short term borrowing - secured 523,220,176 - Provision for taxation 1,798,818 2,000,6�2 2,155,194,958 1,3�2,522,050 CONTINGENCIES AND COMMITMENTS 6 17,640,867,768 15,660,861,911 The annexed notes 1 to 12 form an integral part of these financial statements. CHIEF EXECUTIVE 4 Nishat Power Limited Un-audited Audited Note September 30, June 30, 2009 2009 ----------------Rupees--------------- ASSETS NON-CURRENT ASSETS Property, plant and equipment � 16,504,679,717 15,593,956,036 CURRENT ASSETS Inventory 723,615,282 128,�35 Trade debts 136,282,997 - Advances, deposits, prepayments and other receivables 188,242,143 8,585,88� Cash and bank balances 88,047,629 58,191,253 1,136,188,051 66,905,8�5 17,640,867,768 15,660,861,911 DIRECTOR Ist Quarterly Report 2009 5 CONDENSED INTERIM PROFIT AND LOSS ACCOUNT FOR THE QUARTER ENDED SEPTEMBER 30, 2009 Note September 30, September 30, 2009 2008 (Restated) ----------------Rupees--------------- Turnover 8 134,657,454 - Operating cost 9 155,388,842 - Gross loss (20,731,388) - Other operating income 1,795,044 1,938,268 Administrative expenses (2,719,761) (2,030,1�2) Finance cost (4,382) - Loss before taxation (21,660,487) (91,904) Taxation - - Loss for the period (21,660,487) (91,904) Loss per share in Rupees (0.061) (0.001) The annexed notes 1 to 12 form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR 6 Nishat Power Limited CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE QUARTER ENDED SEPTEMBER 30, 2009 September 30, September 30, 2009 2008 (Restated) ----------------Rupees--------------- LOSS FOR THE PERIOD (21,660,487) (91,904) OTHER COMPREHENSIVE INCOME - - TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (21,660,487) (91,904) The annexed notes 1 to 12 form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR Ist Quarterly Report 2009 7 CONDENSED INTERIM CASH FLOW STATEMENT FOR THE QUARTER ENDED SEPTEMBER 30, 2009 Note September 30, September 30, 2009 2008 (Restated) ----------------Rupees--------------- Cash flows from operating activities Cash generated from operations 10 (495,278,890) 38,518,1�5 Taxes (paid)/refunded (201,854) (683,083) Employees retirement benefits paid (193,414) - Net cash inflow from operating activities (495,674,158) 3�,835,092 Cash flows from investing activities Fixed capital expenditure (858,639,764) (60�,601,4�4) Profit on bank deposits received 1,783,490 1,913,650 Net cash outflow from investing activities (856,856,274) (605,68�,824) Cash flows from financing activities Proceeds from long term financing 756,024,022 5�2,243,8�2 Proceeds from issuance of share capital 628,385,000 80,000,000 Proceeds from share deposit money - 3,400,000 Share issuance cost (2,022,214) (8,�25,800) Net cash inflow from financing activities 1,382,386,808 646,918,0�2 Net increase in cash and cash equivalents 29,856,376 �9,065,340 Cash and cash equivalents at the beginning of the period / year 58,191,253 2,384,312 Cash and cash equivalents at the end of the period / year 88,047,629 81,449,652 The annexed notes 1 to 12 form an integral part of these financial statements. 8 Nishat Power Limited CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE QUARTER ENDED SEPTEMBER 30, 2009 Share Accumul- Share deposit ated Profit / Total capital money (loss) -------------------------------- Rupees-------------------------------- Receipt of share deposit money - 812,600,000 - 812,600,000 Issuance of ordinary shares against share deposit money 800,000,000 (800,000,000) - - Share issuance cost, net - - (8,�25,800) (8,�25,800) Profit for the period - - 28,613 28,613 Balance as on June 30, 2008 - restated 800,000,000 12,600,000 (8,69�,18�) 803,902,813 Receipt of share deposit money - 2,099,900,000 - 2,099,900,000 Issuance of ordinary shares against share deposit money 2,112,500,000 (2,112,500,000) - - Share issuance cost, net (includes underwriting commission of Rs 4,398,��� to Allied Bank Limited, a related party) - - (11,05�,50�) (11,05�,50�) Loss for the year - - (951,�16) (951,�16) Balance as on June 30, 2009 2,912,500,000 - (20,�06,410) 2,891,�93,590 Receipt of share deposit money - 628,385,000 - 628,385,000 Issuance of ordinary shares against share deposit money 628,385,000 (628,385,000) - - Share issuance cost - - (2,022,214) (2,022,214) Loss for the period - - (21,660,48�) (21,660,48�) Balance as on September 30, 2009 3,540,885,000 - (44,389,111) 3,496,495,889 The annexed notes 1 to 12 form an integral part of these financial statements. CHIEF EXECUTIVE DIRECTOR Ist Quarterly Report 2009 9 SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION FOR THE QUARTER ENDED SEPTEMBER 30, 2009 1. LEGAL STATUS AND NATURE OF BUSINESS Nishat Power Limited (‘the company’) was incorporated in Pakistan as a public company limited by shares under the Companies Ordinance, 1984 on February 23, 200�. The company is a subsidiary of Nishat Mills Limited, a listed company. The principal activity of the company is to build, own, operate and maintain a fuel fired power station having gross capacity of 200 MW in Jamber Kalan, Tehsil Pattoki, District Kasur, Punjab, Pakistan. The address of the registered office of the company is 53-A, Lawrence Road, Lahore. The company has not yet commenced commercial operations. 2. BASIS OF PREPARATIon 2.1 This condensed interim financial information is unaudited and is being submitted to shareholders as required by section 245 of the Companies Ordinance, 1984.