3Q

AES PAK GEN (PRIVATE) COMPANY
BALANCE SHEET
AS AT 30 SEPTEMBER 2009
September 30, September 30,
Note 2009 2009
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 8 39,803 478,694
Security deposits 15 180
Finance lease receivable 9 6,763,135 81,337,787
Derivative financial instrument 10 - -
6,802,953 81,816,661
CURRENT ASSETS
Stores, spare parts and other consumables 113,679 1,367,176
Fuel stock 237,676 2,858,443
Trade and other receivables 11 4,012,983 48,262,698
Current portion of finance lease receivable 9 497,788 5,986,714
Current portion of derivative financial instrument 10 733,542 8,822,045
Tax refunds due from Government 26,959 324,226
Sales tax refundable-net 332,013 3,993,000
Cash and bank balances 12 411,145 4,944,692
6,365,785 76,558,994
Non-current asset classified as held-for-sale - -
TOTAL ASSETS 13,168,738 158,375,655
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Share capital 13 3,720,816 95,000,000
Capital reserve - maintenance reserve 14 116,959 2,006,158
Currency translation reserve - (96,960,028)
Other reserves-parent's share based compensation 15 2,246 50,441
Retained earnings 8,610,532 149,641,733
12,450,553 149,738,303
NON-CURRENT LIABILITIES
Interest bearing borrowings 16 - -
Employees benefits obligation 17 8,184 98,426
8,184 98,426
CURRENT LIABILITIES
Current portion of interest bearing borrowings 16 112,111 1,348,319
Short-term running finance 18 126,277 1,518,688
Trade and other payables 19 471,613 5,671,919
710,001 8,538,926
CONTINGENCIES AND COMMITMENTS 20
TOTAL EQUITY AND LIABILITIES 13,168,738 158,375,655
The annexed notes from 1 to 28 form and integral part of these financial statements
CHIEF EXECUTIVE DIRECTOR
(Rupees in thousand) (US Dollars)
PROFIT AND LOSS ACCOUNT
FOR THE NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2009
Note 2009 2009
Revenue 21 15,520,836 192,805,419
Operating cost 22 (11,980,377) (148,824,559)
Gross Profit 3,540,459 43,980,860
Administrative expenses 23 (153,141) (1,902,375)
Other operating expenses 24 (6,022) (74,807)
(159,163) (1,977,182)
Operating Profit 3,381,296 42,003,678
Finance cost 25 (1,461,744) (18,158,311)
Other income 26 13,427 166,795
Profit before taxation 1,932,979 24,012,163
Taxation 27 (6,371) (79,143)
Profit for the year 1,926,608 23,933,020
CASH FLOW STATEMENT
2009 2009
A. CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 1,932,979 24,012,163
Adustment to reconcile profit before tax to net cash flow
Non cash:
Depreciation 3,678 46,865
Provision for gratutiy 8,184 99,805
Provision for stock option expenses 2,519 -
Provision for long-term compensation 1,807 45,750
Provision for doubtful debts - -
Gain on disposal of asset held for sale - -
Interest income (12,047) (146,915)
Finance cost 1,461,744 18,158,311
3,398,864 42,215,979
Working Capital adjustments:
Sales, spare parts and other consumables (31,255) (441,331)
Fuel stock (48,759) 6,213,668
Trade and other receivables 3,670,082 51,822,677
Sales tax refundable 54,000 762,497
Trade and other payables (1,059,656) 15,399,435
2,584,412 73,756,947
Cash generated from operations 5,983,276 115,972,926
Finance cost paid (507,409) (7,164,770)
Employee benefits paid (34,219) (483,183)
Income tax refunded/(paid) (4,139) (49,294)
Net cash flows from operating activities 5,437,509 108,275,679
B. CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (24,551) (60,435)
Proceeds from sale of property, plant and equipment - -
Investment in finance lease - -
Proceeds from assets held for sale -
Finance lease repayments received 314,407 4,439,519
Interest received 12,112 171,025
Net cash used in investing activities 301,968 4,550,109

C. CASH FLOWS FROM FINANCING ACTIVITIES
Payments of interest bearing borrowings (192,048) (2,711,776)
Dividends paid (1,037,127) (12,804,042)
Net cash used in financing activities (1,229,175) (15,515,818)
D. EFFECT OF EXCHANGE RATE CHANGES ON CASH - 4,060,440
Net decrease in cash and cash equivalents (A+B+C+D) 4,510,302 101,370,410
Cash and cash equivalent at the beginning of the year (4,099,158) (14,614,968)
Cash and cash equivalents at end of the year 411,144 86,755,442
CASH AND CASH EQUIVALENTS
Cash in hand 33 419
Cash at bank 411,112 5,223,787
Short term running finance - -
411,145 5,224,206
Revenue
Balance as at 01 J anuary 2009 3,720,816 116,959 6,009 8,814,636 12,658,420
Profit for the year - - - 2,171,946 2,171,946
Value of employee services under IFRS 2 - - (3,763) - 3,763 -
Total recognized income and expense for the year 3,720,816 116,959 2,246 10,986,582 14,826,603
Dividends @ Rs. 8.55 per share- 2008 - - - (3,265,531) (3,265,531)
Balance as at 31 December 2008 3,720,816 116,959 2,246 7,721,051 11,561,072
Transfer to AES Lal Pir (Pvt.) Limited - - - - -
Total recognized income and expense for the year 3,720,816 116,959 2,246 9,647,659 13,487,680
Dividends @ Rs. 8.55 per share- 2009 - - - (1,037,127) (1,037,127)
Balance as at 30 Sep 2009 3,720,816 116,959 2,246 8,610,532 12,450,553
Balance as at 01 J anuary 2008 95,000,000 2,006,158 98,255 (40,366,823) 149,593,621 206,331,211
- - - (48,301,997) - (48,301,997)
- - - (48,301,997) - (48,301,997)
Profit for the year - - - - 30,668,542 30,668,542
Value of employee services under IFRS 2 - - (47,814) - - (47,814)
Total recognized income and expense for the year - - (47,814) (48,301,997) 30,668,542 (17,681,270)
Dividends @ $ 0.11 per share-2008 - - - - (41,749,408) (41,749,408)
Balance as at 31 December 2008 95,000,000 2,006,158 50,441 (88,668,820) 138,512,755 146,900,533
- - - (8,291,208) - -
- - - (96,960,028) - (96,960,028)
Transfer to AES Lal Pir ( Private ) Limited - - - - -
Total recognized income and expense for the year - (96,960,028)
Dividends @ $ 0.11 per share 2009 - - - (12,804,042) (12,804,042)
Balance as at 30 Sep 2009 95,000,000 2,006,158 50,441 (96,960,028) 149,641,733 61,069,484
The annexed notes from1 to 28 formand integral part of these financial statements
CHIEF EXECUTIVE
-------------------------------------- (Rupees in thousand) ---------------------------------------
Total
-----------------------------------Reserves------------------------------------
Share capital
Retained
Payment reserve
Retained earnings
Other reserve-
parent share
based
compensation
STATEMENT OF CHANGES IN EQUITY
DIRECTOR
Description
Capital
Description Share capital
Net exchange differences on translation of foreign operations charged to equity
Net Income recognized directly in equity
---------------------------------------------------( US Dollars ) --------------------------------------------------------
Total Retained earnings
Net exchange differences on translation of foreign operations charged to equity
Net Income recognized directly in equity
Maintenance
reserve
Other reserve-
parent share
based
compensation
Currency
Translation reserve
8. PROPERTY, PLANT AND EQUIPMENT
As at 31
December 2009
Furniture and fittings 1,916 - - 1,916 1,913 - 1,913 3 10
Building - 20,271 20,271 - 760 760 19,511 5
Office equipment 6,077 1,890 - 7,967 1,708 - 2,497 5,470 6.66-20
32,655 2,390 - 35,045 18,097 - 20,226 14,819 10-33
Vehicles 494 - - 494 494 - 494 - 20
Total 41,142 24,551 - 65,693 22,212 - 25,890 39,803
As at 31
December 2009
Furniture and fittings 31,231 - - (6,885) 30,497 - (6,783) 39 10
Building - -
Office equipment 41,434 26,687 - 33,111 26,047 11,141 (5,898) 79,531 6.66-20
518,631 33,748 - (107,080) 243,358 30,062 (58,129) 184,981 10-33
Vehicles 8,052 - - (1,775) 8,052 - (1,776) - 20
Total 599,348 60,435 - (82,629) 577,154 307,954 41,203 (72,586) 264,550
(Rate %)
NET BOOK
VALUE
(Rate %)
COST
Deletions
As at 31 December
2009
(Deletions)
As at 01 January
2009
Additions
Depreciation
charge for the
year
3,678
-
PARTICULARS
-
-
,--------------------------------------------------------------------------------------------------------------------2009-------------------------------------------------------------------------------------------------------------------------------------------------------------
Exchange
difference arising
on translation
As at 01 January
2009
As at 01
January 2009
As at 31
December 2009
Depreciation
charge for the
year
Deletions
COST
6,277
282,235
As at 31
December 2009
-
- 445,299
6,277
24,346
101,233 -
(Rupees in thousand)
(US Dollars)
Electrical equipment and
appliances
Electrical equipment and
appliances
(Deletions) Additions PARTICULARS
229,949
NET BOOK
VALUE
ACCUMULATED DEPRECIATION
21,702
,---------------------------------------------------------------------------------------------------------2009----------------------------------------------------------------------------------------------------------
2,129
24,307
Exchange
difference arising
on translation
ACCUMULATED DEPRECIATION
As at 01 January
2009 As at 31 December
2009
789
-
9. FINANCE LEASE RECEIVABLE
Present Value
Within one year 1,659,533 497,788
After on year but not more than five years 5,388,140 2,254,772
More than five years 6,421,362 1,895,772
13,469,035 4,648,332
Add: Unguaranteed residual value 2,612,591 2,612,591
Gross investment in the lease 16,081,626 7,260,923
Less: Unearned finance income 8,820,702 -
Total finance lease receivable 7,260,923 7,260,923
Less: Current portion 497,788 497,788
6,763,135 6,763,135
Present Value
Within one year 19,958,606 5,986,714
After on year but not more than five years 64,801,215 27,117,334
More than five years 77,227,398 22,799,764
161,987,218 55,903,812
Add: Unguaranteed residual value 31,420,686 31,420,689
Gross investment in the lease 193,407,905 87,324,501
Less: Unearned finance income 106,083,403 -
Total finance lease receivable 87,324,501 87,324,501
Less: Current portion 5,986,714 5,986,714
81,337,787 81,337,787
2009
Minimum lease
payments
The Company's business is the generation of electricity. For that purpose, the Company entered into a Power Purchase
Agreement (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 usedto discount future minimumlease payments under the lease is basedon a patternreflecting a constant
periodic rate of return on the lessor's net investment in the finance lease. The effective interest rate is 25% per annum.
Minimum lease
payments
(US Dollars)
2009
2009 2009
10 DERIVATIVE FINANCIAL INSTRUMENT
733,542 8,822,045
Less: Current portion (733,542) (8,822,045)
- -
10.1
10.2
Foreign currency indexation in Non-Escalable Component (NEC)
The Company's plant was partly financed throughUS dollars and Yen loans against the functional currency of Pakistan Rupees. The installments (principal
and finance costs) of the loans are recoverable under a formula provided in Power Purchase Agreement (PPA) that enables the Company to recover from
Water and Power Development Authority(WAPDA) the loan repayments and finance costs in Rupees based on foreign currencyconversion rates prevailing
during the period to which the payments relate by applyingthe formula given in NEC of the PPA. As the recoverable fromWAPDA are dependent on the
prevailingUS Dollar and Yen exchange rates, the indexationinthe NEC for changes inforeigncurrencyrates is consideredas embeddedderivative, whichis
requiredto be separatedfromthe host contract and valued at fair values as a financial asset inaccordance inaccordance withthe accountingpolicystatedin
note 5.9.3
Fixed insurance, operation and maintenance and administrative costs, and return on equity are also receivable under the formula provided in the PPA that
enables the Company to recover fromWAPDA the costs and return in Rupees based on changes in US Dollar conversation rates and US rates of inflation
(US CPI) prevailingduringthe period to whichthe payments relate by applyingthe formula given in PPA. While boththe indexationof US Dollar and US CPI
are considered as embedded derivatives, it has been concluded that the US CPI should not be separated since the risks and economic characteristics are
closely related to the host contract.
In the case of embedded derivative relating to indexation of US dollar Rupee conversion rates, although it is not considered closely related to the host contrac
and therefore required to be separated and reflected at fair value as held for trading under the accounting policy stated in note 5.9.4, the management has
decided not to recognize this derivative owing to its inability in making a reliable estimate of its fair value as the variability in the range of reasonable fair value
estimates is considered to be large and the probabilities of various outcomes are difficult to assess.
10.3
Estimated US Dollar exchange rates
2009
2008 -
2009 78.37
2010 79.89
2011 83.34
2012 86.05
90.03
Discount rate
Note 2009 2009
11 TRADE AND OTHER RECEIVABLES
Trade receivables 3,625,404 43,601,425
Provision for impairment of trade receivables (17,541) (210,959)
Trade receivables - net 3,607,863 43,390,466
Prepayments 54,388 654,105
Receivable from other related parties - -
Interest receivable 1,111 13,362
300,464 3,613,572
5,135 61,757
Advances to suppliers 43,969 528,799
Others 53 637
4,012,983 48,262,698
11.1 Movement in the provision for impairment of trade receivables is as follows:
Opening balance 17,541 285,917
Provision for receivables impairment - -
Exchange difference on translation - (63,033)
Receivables written off during the year - -
Closing balance 17,541 222,884
Worker's welfare fund net receivable from WAPDA
Discount rate for estimatingthe present value of futurecash flows as a result of indexationfor fluctuationinforeigncurrencies is basedon the interest rates of
eighteenmonths T-Bills/PIBs (2008: two and half year T-Bills PIBs) as the counter party to the PPA is WAPDA a 100% Federal Government owned entity.
However, to account for the risks other than credit risk, premiumhas been added on this discount rate. The discount rate, which has been used for
computation is 14.95% (2008: 9.88%) (inclusive of premium).
Workers' profit participation fund recoverable from WAPDA
US $
The fair value of embedded derivative has been estimated by discountingthe future expected cash flows using the estimates of forward rates for US dollar
and Yen for next five years. The following significant assumptions have been used for fair value computations:
The reasons for which management is unable to assess reliably the fair value of this derivative include long period of 19 years for which projected cash flows
are required, lack of any reliable published estimates of forward currency rates beyond a period of five years, lack of independent valuation experts who could
value this derivative in Pakistan and the difficulties in estimation of discount rate to be used for determining the present value. For the same reasons, the
management has also concluded that a reliable estimate of the fair value of the host contract can also not be made.
2009 2009
12 CASH AND BANK BALANCES
Cash in bank 33 397
Cash at bank
Deposit accounts - US Dollars 134,441 1,616,873
Deposit accounts - J apanese Yen 3,268 39,303
137,709 1,656,176
Savings accounts 126,898 1,526,156
Current accounts 146,505 1,761,963
411,145 4,944,692
12.1
12.2
2009
13 SHARE CAPITAL
Authorized capital
400,000,000 Ordinary shares of Rs. 10 each 4,000,000
2009 2009
Issued, subscribed and paid-up capital:
3,129,535 79,903,394
591,281 15,096,606
3,720,816 95,000,000
13.1
13.2 CAPITAL RISK MANAGEMENT
2009 2009
112,111 1,348,319
1,531,269 19,457,039
4,294,090 54,562,770
Net debt 5,937,470 75,368,128
Equity 12,450,553 149,738,303
Capital and net debt 18,388,023 225,106,431
Gearing ratio 32% 33%
312,9953,523 Ordinary shares of Rs. 10 each fully paid in cash
59,128,068 Ordinary shares of RS. 10 each Issued as fully paid for
consideration other than cash
Interest-bearing loans and borrowings
Trade and other payables
cash and cash equivalent
AES Pak Gen Holding Inc., Mauritius the holding company, held 311,320,667 (2008: 311,667) Ordinary shares of RS. 10 each as on 31 December 2009
(US Dollars)
Cash at bank includes an amount of Rs. 226 million; US $ 2.9 million (2008: Rs. 227 million' US $ 4.5 million) which is not available for free use by the
Company under the "Master Security Agreement" (MSA) and PPA.
Deposit and saving accounts carry markup rates varying from 0.70% per annum to 1.2% per annum (2008: 0.7% per annum to 1.2% per annum).
14 CAPITAL RESERVE - Retained Payment reserve
15
2009 2009
Opening Balance 2,246 50,441
Value of employee services under IFRS 2
- -
Transfer of reserves to AES Lal Pir (Private) Limited
- -
Closing Balance 2,246 50,441
16 INTEREST BEARING BORROWINGS - Secured
2009 2009
Loan A-US $ 111,850 1,345,180
Add: Accrued interest there on 261 3,139
112,111 1,348,319
Less: Current portion shown under current liabilities 112,111 1,348,319
- -
16.1
Notes 2009 2009
17 EMPLOYEE BENEFITS OBLIGATION
Provision for gratuity 17.1 8,184 98,426
Provision for long-term compensation 17.2 - -
8,184 98,426
17.1 Provision for gratuity
2009
Discount rate 10% per annum
Expected rate of increase in salaries 8% per annum
Under clause 9.11 of the Power Purchase Agreement (PPA), the Companyis requiredto maintainRetained Payments Fund("thefund"). Initiallythe fundwas
establishedat one twentyfourth of the annual operatingand maintenancebudget of the Company's first year of operations less fuel expenses. The fund can
be onlybe utilizedto payexpenses on major maintenancefor proper operationof the Complex in case of nonavailabilityof sufficient funds. The reserve fund
needs to be replenished for the monies utilized by the Company.
(US Dollars)
(US Dollars)
The above facility is secured by way of first floating charge on present and future properties and assets of the Company including all tangible moveable
properties, and fixed charge on interest in properties held by AES Pak Gen Holding Inc., Mauritius, and AES Pakistan Holding and pledge of shares of the
Company held by AES Pak Gen Holding Inc. and AES Pakistan Holding. The facility is payable in half yearly unequal installments by 2010 and it carries a
markup of 6.625% ( LIBOR +3.25%)
The actuarial valuation of the gratuity scheme was carried out as at 31 December 2006 using Projected Unit Credit Method Significant actuarial assumptions
were as follows:
International Finance Corporation - USA
PARENT SHARE BASED COMPENSATION
2009 2009
The amount recognized in the balance sheet is as follows:
Present value of defined benefit obligation 36,821 467,865
Unrecognized actuarial loss (2,602) (33,062)
34,219 434,803
Movement in the present value of the defined benefit obligation:
Obligation at beginning of the year 23,595 384,597
Current service cost 12,583 164,140
Past service cost 4,464 58,231
Interest cost 2,359 30,772
Benefits paid (6,180) (78,526)
Obligation at the end of year 36,821 467,865
The movement in provision for gratuity recognized in the balance sheet is as follows:
2009 2009
Opening liability 21,623 352,454
Charge for the year 19,406 253,144
Benefits paid (6,180) (78,526)
Liability recognized at the balance sheet date: 34,849 442,808
Charge for the year recognized in profit and loss account
Current service cost 12,583 164,140
Past service cost 4,464 58,231
Interest cost 2,359 30,772
Transactional liability recognized - -
19,406 253,144
17.2
Note 2009 2009
18 SHORT TERM RUNNING FINANCE
Working capital finance - secured 17.1 - -
Add: Interest accrued thereon 126,277 1,518,688
126,277 1,518,688
Note 2009 2009
19 TRADE AND OTHER PAYABLES
Creditors 102,658 1,234,631
Accrued expenses 97,118 1,168,003
Payable to other related parties 147,540 1,774,410
Workers' profit participation fund payable 19.1 115,538 1,389,534
Workers' Welfare fund payable 7,626 91,715
Others 1,133 13,626
471,613 5,671,919
19.1 Workers' profit participation fund payable
Opening balance 207,335 3,379,544
Allocation during the year - -
Payment made during the year - -
Exchange difference on translation -
Closing balance 207,335 3,379,544
(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.
Term and conditions of the above financial liabilities:
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
For term and condition relating to related parties, refer to Note 28
20 CONTINGENCIES AND COMMITMENT
20.1 Contingencies
20.1.1
The changes in the law will not affect the aforementioned petition filed by the Company.
20.1.2
20.2 Commitment
Based on the legal advice, the Companyhas filed a petitionon 15 April 2004 in the Lahore High Court challengingthe applicationof the Act to the Company
on the groundthat since inception, the Companyhas not employedany personwho falls withinthe definitionof the term"Worker" as per the provisions of the
Act. The Company asserts that it had erroneouslydeposited in the past certain sums with Federal Treasury as contributions of Workers Profit Participation
Fund (WPPF) and Worker's Welfare Fund (WWF), although it 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-utilizedamount of the WPPF in the Federal Treasury. The petitionhad been filed against the
Labor, Manpower and Overseas Pakistani Division of Ministry of Labor, Manpower and Overseas Pakistanis.
Management, based on the legal advice, asserts that if the Companydoes not succeedinthe above petitionand it is heldthat the scheme is applicableto the
Company, any payments that the Company is ultimatelyrequired to make under the provision of the Act are considered as pass throughitems 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.
Consequent to the amendments that have been made in the Act throughthe Finance Act, 2006, the Company is required to pay 5%of its profits to WPPF
fromthe financial year 2006. Bases on a legal advise, the Company is not bookingaccruals of WWF consideringthe fact that the Company is not liable to
pay WWF.
During the year the Company has established a workers' participationfund to comply with the requirements of the Companies (Workers Participation) Act,
1968 to which the Company has paid an amount of Rs. 93.129 million (2008: Nil).
Upto the year ended 31 December 2002, the Companyhad recordedand paidto the Federal Treasurycontributions onits annual profit as per the provisions
of the Companies Profit (Workers Participation) Act, 1968 (the Act).
The Company has issued a letter of credit in favor of WAPDA for an amount of Rs. 651 million; US $ 8.3 million with Habit Bank Limited (2008: RS. 651
million US $ 10.71 million) to meet its obligation under the PPA.
The Companyhas entered into a contract for a period of thirtyyears for purchase of oil fromPakistanState Oil Company Limited (PSO). Under the terms of
Fuel Supply Agreement (FSA), the Company is not required to buy any minimum quantity of oil from PSO.
Note 2009 2009
21 REVENUE
Energy 11,387,829 138,875,963
Finance income 930,243 11,344,428
Contingent rental income 2,062,393 25,151,139
Service fee net of Liquidated damages 731,793 8,924,302
Interest on delayed payments 408,578 4,982,659
15,520,836 189,278,491
22 OPERATING COSTS
Fuel cost 22.1 11,713,708 142,850,098
Operation and maintenance cost 22.2 190,222 2,319,780
Insurance cost 76,447 932,280
11,980,377 146,102,159
22.1 Fuel cost
Fuel consumed
Opening stock 628,969 10,252,143
Purchases during the year 20,382,390 287,805,563
Exchange difference on translation - (1,638,005)
21,011,359 296,419,701
Closing stock (188,917) (2,400,470)
20,822,442 294,019,231
Note 2009 2009
22.2 Operation and maintenance cost
Power station salaries, wages and allowances 17,125 208,841
Repair and maintenance 64,429 785,720
Stores and spare parts consumed 60,701 740,256
Power 46,182 563,195
Oil handling charges 1,785 21,768
190,222 2,319,780
23 ADMINISTRATIVE EXPENSES
Salaries, benefits and other allowances 71,763 875,159
Bonus 5,785 70,549
Provident fund contributions 5,483 66,866
Provision for gratuity 17.1 8,184 99,805
Stock option expenses 2,519 30,720
Provision for long term compensation 1,807 22,037
Traveling, conveyance and entertainment 8,163 99,549
Insurance cost - -
Communication and utilities 2,354 28,707
Legal and professional charges 10,425 127,134
Printing and stationery 593 7,232
Rent, rates and taxes 3,283 40,037
Repairs and maintenance 766 9,341
Depreciation 8.1 3,678 44,856
Community welfare 14,805 180,549
Safely 5,821 70,988
Impairment of trade receivables - -
General expenses 7,712 94,049
153,141 1,867,575
24 OTHER OPERATING EXPENSES
Exchange loss - net 4,931 60,134
Auditors' remuneration 1,091 13,305
Charity and donations - -
Workers' profit participation fund 24.1 - -
6,022 73,439
24.1 Workers' profit participation fund
Allocation for Workers' profit participation fund - -
- -
- -
25 FINANCE COST
Markup on interest bearing borrowings 8,189 99,866
Markup on short term running finance 412,613 5,031,866
1,030,912 12,572,098
Others 10,030 122,317
1,461,744 17,826,146
Allocation for Workers' profit participation
fund recoverable from WAPDA
Loss on changes in fair value of derivative
financial instrument (NEC)
26 OTHER INCOME
Interest income 12,047 146,915
Rent income 21.1 1,251 15,256
Gain on disposal of asset held for sale - -
Scrape sales - -
Others 129 1,573
13,427 163,744
26.1
27 TAXATION
Current 6,371 77,695
27.1
28 RELATED PARTY DISCLOSURES
Related 2009 2009
Dividends 1,037,127 12,804,042
Other related Parties 1,120,953 14,243,367
180,519 2,548,983
1,409 19,896
- -
Key management personnel 10,007 141,302
686 9,687
28.1
CHIEF EXECUTIVE
Share of expenses
Share of rental Income earned
The related parties of the Company comprises of parent company, other group companies (termed as other related parties) and key management personnel
and staff retirement benefit plan. Transactions with related parties includes expenses charged between these companies. Balance due to / fromrelated
parties as at 31 December 2009 are included in note 19. Other significant transactions with related parties are as follows:
The Company shares premises, employees and other common costs with AES All Pir (Private) Limited, other related party on fifty fifty basis in accordance
with "Shared Facilities Agreement".
Retirement benefits
All the transaction with the related parties are at arm's length
Rental income is shared between the Company and AES Lal Pir (Private) Limited, and other related party, on a fifty five and forty five basis respectively.
Thenumerical reconciliationbetweenthe average taxrate andthe applicabletaxrate has not beenpresentedinthese financial statements as the total income
of the Companyexcept other income is exempt fromlevy of Income tax under 132 Part I and clause 15 of Part IV of the second schedule to the IncomeTax
Ordinance 2001.
(US Dollars)
Holding Company
Services (provided)/received
Short term benefits
Current account balance
Nature of transactions

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AES PAK GEN (PRIVATE) COMPANY

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