KOHE

2021
ANNUAL
REPORT
CONTENTS
CORPORATE INFORMATION 02
NOTICE OF ANNUAL GENERAL MEETING 03
CHAIRMAN'S REVIEW 05
DIRECTOR'S REPORT 07
FINANCIAL DATA 20
STATEMENT OF COMPLIANCE 22
REVIEW REPORT TO THE MEMBERS 24
AUDITOR'S REPORT TO THE MEMBERS 25
STATEMENT OF FINANCIAL POSITION 30
STATEMENT PROFIT OR LOSS ACCOUNT AND OTHER COMPREHENSIVE INCOME 32
STATEMENT OF CASH FLOWS 33
STATEMENT OF CHANGES IN EQUITY 34
NOTES TO AND FORMING PART 35
PATTERN OF SHAREHOLDING 72
PROXY FORM 77
02 Kohinoor Energy Limited | Annual Report 2021
CORPORATE INFORMATION
Board of Directors Bankers
Mr. M. Naseem Saigol Standard Chartered Bank (Pakistan) Limited
Chairman / Non-Executive Bank Alfalah Limited
Mr. Muhammad Zeid Yousuf Saigol Askari Bank Limited
Chief Executive Officer AL Baraka Bank (Pakistan) Limited
Mr. Muhammad Murad Saigol Habib Bank Limited
Non-Executive MCB Bank Limited
Syed Manzar Hassan United Bank Limited
Non-Executive Faysal Bank Limited
Mr. Muhammad Omer Farooq Bank Islami Pakistan Limited
Independent National Bank of Pakistan
Ms. Sadaf Kashif Dubai Islamic Bank Pakistan Limited
Independent
Mr. Faisal Riaz Registered Office
Independent 301, 3RD Floor, Green Trust Tower,
Blue Area Islamabad, Pakistan.
Company Secretary Tel : +92-51-2813021-2
Mr. Muhammad Asif Fax : +92-51-2813023
Audit Committee Project/Head Office

Mr. Muhammad Omer Farooq Post Office Raja Jang, Near Tablighi Ijtima,
Chairman Raiwind Bypass, Lahore, Pakistan.
Syed Manzar Hassan Tel : +92-42-35392317
Ms. Sadaf Kashif Fax : +92-42-35393415-7
HR & Remuneration Committee Shares Registrar

Mr. Faisal Riaz M/S. Corplink (Pvt.) Ltd.
Chairman Wings Arcade, 1-K,Commercial, Model Town,
Mr. Muhammad Zeid Yousuf Saigol Lahore, Pakistan.
Syed Manzar Hassan Tel : +92-42-35839182, 35887262, 35916719
Fax : +92-42-35869037
Management
Lahore Office
Mr. Muhammad Zeid Yousuf Saigol PEL Factory, 14-KM Ferozepur Road,
Chief Executive Officer Lahore, Postcode 54760, Pakistan.
Mr. Ghazanfar Ali Zaidi Tel : +92-42-35920117-8
General Manager Technical
Mr. Muhammad Ashraf Company Registration No.
Chief Financial Officer 0032461 of 1993-94
Auditors Company NTN

A. F. Ferguson & Co. 0656788-6
Chartered Accountants
Website
Legal Advisor www.kel.com.pk
LMA | Ebrahim Hosain
Kohinoor Energy Limited | Annual Report 2021 03
NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the 28th Annual General Lahore upto the close of business hours on
Meeting of shareholders of Kohinoor Energy Limited October 18, 2021 will be treated in time for
will be held on October 26, 2021 (Tuesday) at 13:00 determination of entitlement to attend and vote
at Islamabad Club, Main Murree Road, Islamabad to at the meeting.
transact the following business:
2. Any person who seeks to contest the election of
1. To confirm minutes of the Annual General directors shall file at Head Office of the
Meeting held on October 26, 2020. Company, Near Tablighi Ijtima, Raiwind
Bypass, Lahore, not later than 14 days before
2. To receive and adopt the Annual Audited
the day of the meeting, notice of his/her
Accounts of the Company for the financial year
intention to offer himself/herself for election of
ended June 30, 2021 alongwith Directors' and
directors together with:
Auditors' Reports thereon.
a) Consent to act as Director as required
3. To approve two interim dividends already paid
under Section 167(1) of the Companies
@60% i.e. Rs. 6.00 per share and @40% i.e. Rs.
Act, 2017.
4.00 per share making a total dividend @100%
i.e. Rs. 10.00 per share for the financial year b) Consent to act as Director in Form-28, as
2020-21. prescribed under the Companies
(General Provisions and Forms)
4. To appoint Auditors to hold office till the
Regulation, 2018;
conclusion of the next Annual General Meeting
and to fix their remuneration. c) Declaration in respect of being compliant
with requirements of the Code of
5. To elect seven directors as fixed by the Board of
Corporate Governance and the eligibility
Directors in its meeting held on September 03,
criteria as set out in the Section 153 of the
2021 under Section 159 of the Companies Act,
Companies Act, 2017(Act) to act as
2017 for a term of three years commencing
Director or an Independent Director of a
from October 30, 2021. The retiring Directors
listed Company; and
are:
d) Detailed profile alongwith office
1. Mr. M. Naseem Saigol
addressed for placement onto the
2. Mr. Muhammad Zeid Yousuf Saigol
Company's website within 14 days prior to
3. Mr. Muhammad Murad Saigol
the date of election in terms of SRO dated
4. Syed Manzar Hassan
December 10, 2015 issued by the
5. Mr. Muhammad Omer Farooq
Securities & Exchange Commission of
6. Ms. Sadaf Kashif
Pakistan (SECP).
7. Mr. Faisal Riaz
e) A director must be holding qualifcation
6. Any other business with the permission of the
shares of the Company at the time of filing
Chair.
of his / her consent to act as director. The
aforesaid qualifcation shall not be
By the order of the Board
applicable for instances mentioned in
Section 153(i) of the Act;
Lahore: (Muhammad Asif) f) Attested copy of valid CNIC and NTN;
September 23, 2021 Company Secretary
g) Independent director(s) will be elected
Notes: through the process of election of director
in terms of section 159 of the Act and
1. The share transfer books of the Company will
he/she shall meet the criteria laid down in
remain closed from October 19, 2021 to
Section 166 of the Act, the Companies
October 26, 2021 (both days inclusive).
(Manner and Selection of Independent
Transfers received at our Share Registrar Office
Directors) Regulations 2018 and Guide
M/S CORPLINK (PVT) LIMITED situated at
Book on Corporate Governance and
Wings Arcade, 1-K, Commercial, Model Town,
NOTICE OF ANNUAL GENERAL MEETING

Frequently Asked Questions dated June allowed to exercise their right to vote through
5, 2020, issued by the SECP accordingly postal ballot, that is voting by post in
the following additional documents are to accordance with the requirements and
be submitted by the candidates intending procedures contained in the aforesaid
to contest election of directors as an Regulation.
independent director:
5. As per Circular No. 10 of 2014 dated May 21,
Ÿ Declaration by independent director(s) 2014, issued by the SECP the members
under Clause 6(3) of the Listed holding aggregate ten percent or more
Companies (Code of Corporate shareholding residing in geographical location
Governance) Regulation 2019; may participate in the meeting through video
Ÿ Undertaking on non-judicial stamp conference. In this regard a prescribed form is
paper that he / she meets the available at https://kel.com.pk/page-investor-
requirements of sub-regulation (1) of information.
Regulation 4 of the Companies
6. As per Section 72 of the Companies Act, 2017
(Manner and Selection of Independent
every listed company is required to replace its
Directors) Regulations, 2018;
physical shares into book-entry form (CDC).
Ÿ The Final list of contesting candidates
Therefore, the shareholders having physical
will be circulated not later than seven
shares are requested to convert the shares into
days before the date of said meeting, in
book-entry (CDC).
term of section 159 (4). Further, the
website of the Company will be
updated with the required information.
3. A member eligible to attend and vote at this
meeting may appoint his / her proxy to attend
and vote instead of him/her. Proxies in order to
be effective must reach the Company's Head
office situated at Near Tablighi Ijtima, Raiwind
Bypass, Lahore, not less than 48 hours before
the time for holding the. A member shall not be
entitled to appoint more than one proxy. Proxies
of the Members through CDC shall be
accompanied with attested copies of their
CNIC. In case of corporate entity, the Board's
Resolution/power of attorney with specimen
signature shall be furnished along with proxy
form to the Company. The members through
CDC are requested to bring original CNIC, A/C
No. and Participant ID to produce at the time of
attending the meeting. Due to current COVID-
19 situation, the following SOPs should be
adopted at the time of attending the meeting:
1. Wear Face Mask
2. Hand Sanitization at entry point
3. Maintain Social Distance
4. Pursuant to Companies (Postal Ballot)
Regulations, 2018, for the purpose of election
of directors, where in case number of
contestants are more than the number of
directors to be elected, members will be
CHAIRMAN'S REVIEW
Company, as detailed in the director's report, the
matter of piling up of the over due payments stuck
up with the power purchaser has been settled.
Resultantly the Company has received the first of
two installments of the over due amount from the
power purchaser. Moreover, subsequently the
Company is also receiving the routine payments
regularly. Therefore, the board considering the
comfortable financial position of the Company has
paid two interim dividends in March and May 2021
@ 60% and 40% respectively. The total dividend
distribution during the financial year 2020-21
remained at 100%.
During the year under review, the Board visited the
power complex and Company offices and facilities
with the objective of meeting with the key
management executives and gaining firsthand
knowledge of the developments and challenges in
place. It is pleasurable to put on record that your
On behalf of the Board of Directors, I have great Company has a dedicated and enthusiastic team of
pleasure in presenting you the twenty-eighth Annual nearly 150 fulltime working people comprising of
Report providing an overview of Kohinoor Energy professionals, qualified engineers and skilled
Limited operations, our operating environment and workforce who are serving to the Company with
the Audited Financial Statements for the year ended honesty and hardwork. Therefore, despite of the
June 30, 2021. lapse of the 24 operational years the power complex
is demonstrating the safe, reliable and the most
Despite the numerous challenges experienced efficient operations.
during the year, the business has achieved a great
deal of success and the board is pleased with the The demand of electricity by the Power Purchaser
progress the Company is making. remained slightly lower than that of the previous
financial year. I pleasurably let you know that the
In December 2020, there were changes on the Company posted net profit after tax of Rs.1,199
Board, four new Board members joined to fill the million and demonstrated earning per share (EPS)
casual vacancies occurred. And consequently of Rs. 7.08 as compared to net profit after tax of Rs.
during the year Mr. Muhammad Zeid Yousuf Saigol 1,036 million with an EPS of Rs. 6.12 demonstrated
has been appointed as the new Chief Executive during the corresponding period last year.
Officer of the Company. The young and energetic
man holds Bachelors of Science (BS) in Chemical In summary, Kohinoor Energy Limited continues to
Engineering from Carnegie Mellon University USA. be committed to growing its business over the
He is associated as Director with Pak Elektron longer term to build the company's value for our
Limited since 2011 and having rich experience of shareholder, by further strengthening its position in
power generation business leading the Group's the market, increasing operational efficiency,
Power Division Operations. I do hope that such boosting revenue and significantly improving
change on the board shall bring good impact on the margins and earnings.
progress of the Company where it is facing
challenges of lower dispatch levels in the time ahead
to the Company.
I take pleasure to inform you that subsequent to
negotiations between the negotiation Committee Lahore: M. Naseem Saigol
(formed by the Government of Pakistan) and the September 23, 2021 Chairman
DIRECTORS' REPORT
The Board of Directors feels pleasure to present the
Annual Report together with the audited financial
statements of the Company for the financial year
ended June 30, 2021.
Principal Activities
The principal business objective of the Company is
to own, operate and maintain a furnace oil fired
power station with a net capacity of 124 MW (gross
capacity of 131.44 MW).
Financial Results
We report that during the year financial year 2020-
21, tota l s ales of the Comp a ny s tood at
Rs. 6,752 million compared to Rs. 7,549 million in
the last financial year. The dispatch of electricity was
comparatively lower than that of the previous
financial year. The dispatch was comparatively lower, however the devaluation of Pak Rupees and lower
interest rates have contributed to higher profits in comparison to last year. The Company earned net profit
after tax of Rs. 1,199 million yielding earning per share (EPS) of Rs. 7.08, as compared to Rs. 1,037 million
(EPS 6.12) during the last financial year. The summarized financial results of the Company for the year ended
June 30, 2021 are as follows:-
Rupees in Thousand 2021 2020
Profit before taxation 1,202,984 1,036,752

Taxation (3,563) (94)
Profit after taxation 1,199,421 1,036,658
Other comprehensive income / (loss) 25,273 (25,774)
Total comprehensive income for the year 1,224,694 1,010,884
Un-appropriated profit brought forward 4,848,005 4,176,038
Available for appropriations 6,072,699 5,186,922
Final Dividend 2019-20-NL (Final Dividend 2018-19 @ 20% paid
- (338,917)
during FY 2019-20)
1st Interim Dividend 2020-21 @ 60% (1st Interim Dividend 2019-20-NIL) (1,016,752) -
2nd Interim Dividend 2020-21 @ 40% (2nd Interim Dividend 2019-20-NIL) (677,834) -
(1,694,586) (338,917)
Un-appropriated profit carried forward 4,378,113 4,848,005
Earnings per share Rupees 7.08 6.12
As earlier reported to the shareholders we would like to reiterate that the Government of Pakistan formed a
Committee for negotiations with the Independent Private Power Producers (the IPPs) including the
Company, for negotiation on power tariff, settlement of long outstanding receivables and resolution of
certain disputed matters between the IPPs and the Power Purchaser. Consequent to having several rounds
of discussions and meetings with the Committee, the Company signed a Memorandum of Understanding
(the MoU) dated October 07, 2020. Subsequently, CPPA and the Company initialed and finally signed the
Master Agreement, PPA Amendment Agreement, PPA Novation Agreement to effect the agreed terms and
conditions. The details have been disclosed in note No. 3 to these financial statements.
DIRECTORS' REPORT
The Board takes pleasure to report that subsequent
to signing of the above said agreements the
Company has received the first installment (i.e. 40%
of the over due amount of Rs. 4,974 million
outstanding as at November 30, 2020) while the
remaining 60% overdue amount is expected to be
received within six months of the first installment, we
are receiving the routine payments against overdue
invoices regularly from the Power Purchaser.
Resultantly the balance overdue amount has
improved.
The status of the matter related to the imposition of
liquidated damages (LDs) as detailed in Note 14.1.1
and 14.1.2 to the financial statements is the same as
reported to you earlier. The management and the
legal advisors of the Company believe that there are
adequate grounds to defend the claim for such LDs,
therefore no provision has been made in these previous financial year. The power plant by
financial statements. operating at 31.04% delivered 337,122 MWh of
electricity as compared to 33.41% capacity factor
Moreover, on the matter related to sales tax demand (363,856 MWh) delivered during the previous
raised by the Federal Board of Revenue (the FBR) as financial year. This is with respect to maintenance
detailed in Note 14.1.3 to the financial statements, activities we report that during the financial year
we report that the matter is at Supreme Court of under review two engines reached at 124k
Pakistan. The management is of the view that since operational hours. The said engines were
the there are meritorious grounds to defend the overhauled under 8k major maintenance program.
case, therefore no provision for the demand has During the previous financial year there were three
been made in these financial statements. major maintenances that were carried out by the
Further with respect to the matter of a sales tax Company. We report that all of the planned and
demand of Rs. 184.13 million raised by the Deputy unplanned maintenances have been successfully
Commissioner Inland Revenue ('DCIR') on account carried out by our internal technical team in
of inadmissible input tax as detailed in Note 14.1.4 to accordance with the budgeted and estimated
these financial statements. Commissioner Inland numbers. We feel pleasure to report that all the
Revenue (Appeals) adjudicated the case and out of engines and their respective auxiliary equipments
total demand of Rs. 184.13 million, deleted the are in good condition for safe and reliable
demand of Rs. 152.95 million, whereas the operations. Further, one diesel generator has
remaining amount of Rs. 31.18 million has been undergone successful repairs and maintenance
annulled and remanded back to the DCIR for fresh during the month of June 2021 for which successful
adjudication. job completion certificate has been received
subsequent to the year end.
Dividend Distribution
We take immense pleasure to report that your
During the financial year under review upon Company mai ntai ning i ts track record of
recommendations of the Board of Directors of the successfully qualifying the Annual Dependable
Company two interim dividends have already been Capacity Test (ADC), conducted by the Power
paid @60% in March 2021 and @40% in May 2021 Purchaser on June 04, 2021 has demonstrated the
respectively, making cumulative dividend capacity of 129.96 MW which is higher than the net
distribution for the financial year @ 100%. contractual capacity of 124 MW. It is quite
Operations satisfactory to mention that the power complex even
after surpassing 24 operational years is still in
We report that the demand of electricity from the robust, excellent and reliable condition. The Board
Power Purchaser was relatively lower than the of Directors recognizes and appreciates the
hardwork and dedication of the employees of the The Company meet its availability and efficiency
Company that resulted in such a remarkable levels which is an outcome of technically sound
achievement. O&M team, robust systems and controls, and strong
governance structure.
Risk Management
Statements in compliance to the Code of
Risk management is carried out by the finance
Corporate Governance (CCG)
department under the principles and policies
approved by the Board. The Board provides The Directors state that:
principles for overall risk management, as well as
Ÿ The financial statements, prepared by the
policies covering specific areas such as foreign
management of the Company, present its state of
exchange risk, interest rate risk, credit risk and
affairs fairly, the result of its operations, cash
investment of excess liquidity. The risk management
flows and changes in equity;
principles are geared to identifying and analyzing
the risks to which the Company is exposed to and Ÿ Proper books of account of the Company have
establishing the appropriate control mechanisms. been maintained;
The principles of risk management and the
Ÿ Appropriate accounting policies have been
processes applied are regularly reviewed, taking
consistently applied in preparation of financial
due regard and changes in the sector and in the
statements and accounting estimates are based
activities of the Company. The ultimate goal is to
on reasonable and prudent judgment;
develop controls, based on the existing training
management guidelines and conscious approach Ÿ International Financial Reporting Standards, as
to risks. applicable in Pakistan, have been followed in
preparation of financial statements;
Operational Risks
Ÿ The system of internal control is sound in design
The management has established a very
and has been effectively implemented and
comprehensive system for recognition and
monitored;
management of operational risks. The Quality &
EHS function at power plant is fully responsible to Ÿ There are no significant doubts upon the
discharge its responsibilities to identify, measure Company's ability to continue as a going concern
and to take necessary steps for addressing and
Ÿ The key operating and financial data of last six
mitigating the probabilities of malfunctioning or any
years is attached to the report.
unforeseen event. Standard Operational
Procedures (SOPs) and contingency plans to the Ÿ During the financial year under review the Board
level of international quality standards are in place. of Directors (BoD) and the Audit Committee (AC)
The SOPs implemented at power complex and are met, each for five times. The names of the
in place to ensure the safe and reliable operations. persons who remain on the board during the FY
2020-21 and their attendance is as follows:
Financial Risks
The financial risk management is disclosed in note Attendance
34 to these financial statements of the Company. Name of Directors BOD AC
Credit Rating Mr. M. Naseem Saigol 2/5
We report that the Pakistan Credit Rating Agency Mr. Muhammad Zeid Yousuf Saigol 1/2
(PACRA) has maintained the same rating as Mr. Muhammad Murad Saigol 0/1
awarded last year i.e. "AA” (Double A) and "A1+"(A Syed Manzar Hassan 3/3 2/2
one plus) for the long-term and short-term entity
Mr. Muhammad Omer Farooq 3/3 2/2
ratings of the Company respectively. It reflects
stable business profile emanating from a secured Ms. Sadaf Kashif 2/2 2/2
regulatory structure. This entails sovereign Mr. S M Shakeel 4/5
guaranteed revenues and cash flows, given Mr. Faisal Riaz 5/5
adherence to agreed performance benchmarks. Mr. Shingo Ito 2/2 2/2
DIRECTORS' REPORT
Attendance Ÿ The Board as required by CCG for reporting on

trade in shares of the Company, has defined that
Name of Directors BOD AC the expression 'Executive' shall means the CEO,
Mr. Ryo Aoe 2/2 2/2 COO, CFO, Head of Internal Audit, Company
Mr. Hirokazu Ishii 3/3 Secretary and the Managers / Departmental
Heads of the Company by whatever name called.
Ms. Mariko Ueda 3/3 2/2
Changes on the Board
The Board granted leaves of absence to the board
members who could not attend the board We write to inform you that since the last annual
meeting(s) general meeting held on October 26, 2020
Mr. Ryo Aoe and Mr. Shingo Ito have relinquished
Ÿ During the financial year under review the Human the office of Director and in their places the Board
Resource and Remuneration Committee met for has appoi nted Syed Manzar Hassan, Mr.
one time and Mr. Muhammad Zeid Yousuf Saigol, Muhammad Omer Farooq as Directors of the
Mr. Faisal Riaz and Syed Manzar Hassan Company with effect from December 16, 2020; and
attended the said meeting. Mr. Hirokazu Ishii, Ms. Mariko Ueda have
Ÿ The Company's directors, spouses and relinquished the office of Directors and in their
executives have purchased 61,250,100 shares of places the Board has appointed Mr. Muhammad
the Company during the FY from July 01, 2020 to Zeid Yousuf Saigol and Ms. Sadaf Kashif as
June 30, 2021. Number of shares held at the year Directors on the Board to take effect from December
end are summarized as below: 24, 2020; and Mr. S. M. Shakeel relinquished the
office of Director/CEO and in his place the Board has
Particulars No. of Shares appointed Mr. Muhammad Murad Saigol as Director
of the Company and Mr. Muhammad Zeid Yousuf
Sponsors 105,065,839
Saigol as CEO with effect from March 08, 2021 for
Directors 101,821 the remainder of the term of the outgoing directors.
Executives 179,075 The Board wishes to record its appreciation for the
valuable services rendered by Mr. Ryo Aoe, Mr.
Detailed Pattern of shareholding is attached to these Shingo Ito, Mr. Hirokazu Ishii, Ms. Mariko Ueda and
financial statements. The threshold for identification Mr. S. M. Shakeel as Board members and extends its
of 'Executive' is annually determined by the Board in warm welcome to Syed Manzar Hassan, Mr.
accordance with the Code of Corporate Muhammad Omer Farooq, Mr. Muhammad Zeid
Governance. Pakistan stock has been updated on Yousuf Saigol, Ms. Sadaf Kashif and Mr. Muhammad
above said trading in shares of the Company. Murad Saigol as new Director on the Board of the
Company.
Ÿ The Company had established Employees
Gratuity Fund and registered with the concerned Corporate Social Responsibility (CSR)
authority as detailed in note 6.2 to these financial
As a part of business strategy your Company is
statements. The value of the Gratuity Fund as on
consistently taking part in contribution to social
June 30, 2021: NIL (Rs. 428.28 million in 2020).
welfare. In this regard we report that the Company in
The said Fund has been dissolved to take effect
support to the neighboring community is making
from July 01, 2021. And subsequently the
handsome investment on two CSR programs which
management has introduced another retirement
includes free medical treatment facility and free
benefit scheme namely Employees Provident
education facility for deserving children of the
Fund. The said fund is in the process of
people living in the vicinity of the power plant:
registration with the concerned authority.
a) Medical Facility
Ÿ The Board has formed Audit Committee. It
comprises of three non-executive directors. And The management of your Company paying
an independent director is the Chairman of the attention to its social responsibility is providing free
Committee. medical treatment facility to the deserving people of
the vicinity area of the power plant. A competent

medical team comprising of qualified Doctor and its
staff is serving the patients with full devotion. During
the financial year under review the checkup of
patients had been reduced due to the COVID-19
pandemic. Although the number of patients served
has been decreased however due to drastic hike in
prices of medicines the medical cost has been
increased. We report that during the financial year
2020-21 total 4,799 patients have been provided
with the free medical treatment at a cost of Rs. 6.804
million.
b) Education Facility
Contributing to another CSR program the Company
is providing free education to the deserving children
of the vicinity community your Company is playing
its role to uplift the society through education. We
report that presently 121students are being
educated at school level and seven at college level
with the support of the company. The education
facility program is inclusive of providing tuition,
books / stationery and uniform to all the students for
free of cost. During the year the Company has
contributed Rs. 3.848 million on account of
education facility,
Impact on Environment
At Kohinoor Energy, we recognize the growing
challenge and the collective responsibility to
manage the world's resources for future
generations. We are therefore continuously
increasing our water recycling initiatives and
promoting the safe reuse of wastewater in plantation
and fish farming. We are also striving to reduce our
environmental footprints by energy conservation,
waste reduction, water conservation and fuel
efficiency. At your Company, we are passionate
about protecting the environment where we work
and act to protect and improve it, as we know that
there is no better place to start than from within our
own Company. Through clean up initiatives and
other activities, we aim to play an active role in
changing behavior and raising public awareness
about reducing waste and recycling more.
We a r e c o n s i s t e n t l y f o c u s i n g o n e n e r g y
conservation, waste reduction, water conservation
and compliance of National Environmental Quality
Standards (NEQS) through implementation of
sustainability plans for green environment at plant.
DIRECTORS' REPORT
Impact of COVID-19 on the financial statements Acknowledgement
Consequent to the spread out of the pandemic of The Board of Directors appreciates and recognizes
COVID-19 the Company has adopted all of the the valued shareholders, Central Power Purchasing
necessary Standard Operating Procedures (SOPs) Agency (CPPA), PPIB, financial institutions and,
to ensure safety and well being of the employees. All Wartsila, Pakistan State Oil and other business
of the employees of the Company have been fully partners for their trust and continued support to the
vaccinated. The management of the Company has Company.
taken all of the necessary steps to carry out safe and
The Board also recognizes the contribution made by
reliable operations and ensuring continuation of the
a very dedicated team of professionals and
business of the Company. Due to this, management
engineers who served KEL with full enthusiasm. We
has assessed the accounting implications of these
appreciate all of our employees for demonstrating
developments on these financial statements and
their commitment and responsibility to ensure and
assessed that there is no significant accounting
maintain safe and reliable operations of the power
impact of the effects of COVID-19 on these financial
complex and we believe that the same spirit of
statements.
devotion shall remain intact in the future ahead to
Internal Control System of the Company the Company to achieve successful results for the
Company and its shareholders.
The management has adopted as far as practicable,
all the internal control policies and procedures in
achieving management's objectives of ensuring, as For and on behalf of the Board
far as practicable, the orderly and efficient conduct
of its business, including adherence to
management policies, safeguarding of assets,
prevention and detection of fraud and error,
accuracy and completeness of accounting records,
and timely preparation of reliable financial
information. M. Zeid Yousuf Saigol Syed Manzar Hassan
Auditors Chief Executive Officer Director
The present statutory auditors of the Company M/s
A. F. Ferguson & Co. Chartered Accountants retire Lahore:
and being eligible, offer themselves for September 23, 2021
reappointment. The Audit Committee and the Board
of Directors of the Company have endorsed their re-
appointment for shareholders consideration in the
forthcoming AGM.
Pattern of Shareholding
A statement of pattern of shareholding and
additional information as at June 30, 2021 is
annexed to the Annual Report.
101,821
HUMAN RESOURCE MANAGEMENT
Our HR department is one of the most pivotal parts of the Company while our human resource policies
provide transparency and drive our employees that is how we are translating our strategic priorities into
actions. It sets examples that we have been achieved in past years by developing professional
organizational culture, retaining talent, performance based compensation, equality based culture of respect
& recognitions.
Our HR function operates as strategic partner with senior management and all departmental heads. The key
to this role has been its continued focus to align our departmental targets with Team Mission Statement
(TMS). We are sincerely grateful to all employees for their constructive cooperation in 2021 because of we
were able to achieve good progress towards many strategic priorities despite the challenges faced.
CORPORATE SOCIAL RESPONSIBILITY (CSR)

As a part of business strategy your Company is
consistently taking part in contribution to social
welfare. In this regard we report that the Company in
support to the neighboring community is making
handsome investment on two CSR programs which
includes free medical treatment facility and free
education facility for deserving children of the
people living in the vicinity of the power plant:
b) Education Facility
Contributing to another CSR program the Company
is providing free education to the deserving children
of the vicinity community your Company is playing
its role to uplift the society through education. We
report that presently 121students are being
educated at school level and seven at college level.
The facility includes teaching, and provision of
a) Medical Facility textbooks and uniform to all the students for free of
cost. During the year the Company has contributed
The management of your Company paying Rs. 3.848 million on account of education facility..
attention to its social responsibility is providing free
medical treatment facility to the deserving people of
the vicinity area of the power plant. A competent
medical team comprising of qualified Doctor and its
staff is serving the patients with full devotion. During
the FY under review the checkup of patients had
been reduced due to the COVID-19 pandemic.
Although the number of patients served has been
decreased however due to drastic hike in prices of
medicines the medical cost has been increased. We
report that during the financial year 2020-21 total
4,799 patients have been provided with the free
medical treatment at a cost of Rs. 6.804 million.
FINANCIAL DATA
2020-2021 2019-2020 2018-2019 2017-2018 2016-2017 2015-2016
DISPATCH LEVEL (%) 31.04% 33.41% 35.67% 59.42% 72.93% 78.12%

DISPATCH (MWH) 337,122 363,856 387,435 645,395 792,147 850,945
REVENUE (Rs. 000)

ENERGY FEE 4,635,701 5,020,777 5,592,339 6,852,409 6,947,012 6,070,220
CAPACITY FEE 1,752,832 1,623,874 1,328,564 1,128,422 1,094,435 1,067,666
INTEREST ON DELAYED PAYMENT 363,797 904,131 583,835 301,810 182,414 146,050
TOTAL REVENUE 6,752,330 7,548,782 7,504,738 8,282,641 8,223,861 7,283,936
COST OF SALES 4,983,277 5,391,882 5,946,315 7,019,967 6,988,329 6,174,928
GROSS PROFIT 1,769,053 2,156,900 1,558,423 1,262,674 1,235,532 1,109,008
PROFITABILITY (Rs. 000)

PROFIT/(LOSS) BEFORE TAX 1,202,984 1,036,752 551,592 730,138 804,878 695,661
PROVISION FOR INCOME TAX 3,563 94 115 240 711 445
PROFIT/(LOSS) AFTER TAX 1,199,421 1,036,658 551,477 729,898 804,167 695,216
OTHER COMPREHENSIVE INCOME / (LOSS) 25,273 (25,774) (8,483) (18,781) 8,354 (7,985)
FINANCIAL POSITION (Rs. 000)

NON CURRENT ASSETS 2,845,589 3,219,285 3,549,660 3,503,541 3,680,940 3,908,948
CURRENT ASSETS 7,367,352 9,156,796 7,974,127 8,022,395 6,194,471 4,880,224
LESS CURRENT LIABILITIES 4,111,682 5,833,490 5,653,163 5,520,473 3,818,502 2,697,491
NET WORKING CAPITAL 3,255,670 3,323,306 2,320,964 2,501,922 2,375,969 2,182,733
CAPITAL EMPLOYED 6,101,259 6,542,591 5,870,624 6,005,463 6,056,909 6,091,681
LESS LONG TERM LOANS 28,560 -
SHARE HOLDERS EQUITY 6,072,699 6,542,591 5,870,624 6,005,463 6,056,909 6,091,681
REPRESENTED BY (Rs. 000)

SHARE CAPITAL 1,694,586 1,694,586 1,694,586 1,694,586 1,694,586 1,694,586
SHARE PREMIUM
BONUS SHARES
UNAPPROPRIATED PROFIT BEFORE APPROPRIATION 6,072,699 5,186,922 4,853,871 5,073,440 5,209,616 5,329,117
APPROPRIATION / DIVIDENDS 1,694,586 338,917 677,833 762,563 847,293 932,022
EFFECT OF RETROSPECTIVE CHANGE IN
ACCOUNTING POLICY
UNAPPROPRIATED PROFIT BROUGHT FORWARD 4,378,113 4,848,005 4,176,038 4,310,877 4,362,323 4,397,095
6,072,699 6,542,591 5,870,624 6,005,463 6,056,909 6,091,681
SHARE PRICES AS ON JUNE 30, 36.00 34.98 36.00 40.00 43.07 41.20
EARNING PER SHARE 7.08 6.12 3.25 4.31 4.75 4.10
RATIOS:
RETURN ON ASSETS 11.74% 8.38% 4.79% 6.33% 8.14% 7.91%
PRICE EARNING RATIO 5.08 5.72 11.08 9.28 9.07 10.05
BREAK UP VALUE PER SHARE OF Rs. 10 EACH 35.84 38.61 34.64 35.44 35.74 35.95
CURRENT RATIO 1.79 1.57 1.41 1.45 1.62 1.81
NET PROFIT/(LOSS) TO SALES (%AGE) 17.76% 13.73% 7.35% 8.81% 9.78% 9.54%
DIVIDEND PER SHARE 10.00 2.00 4.00 4.50 5.00 5.50

PERFORMANCE OVERVIEW
Dispatch Percentage Turnover (Rupees in Million)
80.00% 9,000
72.93% 8,224 8,283
8,000 7,505 7,549
70.00%
59.42% 7,000 6,752
60.00%
6,000
50.00%
35.67% 5,000
40.00%
33.41% 31.04% 4,000
30.00%
3,000
20.00% 2,000
10.00% 1,000
0.00% -
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Shareholding Equity (Rupees in Million) Earning Per Share (Rupees)
8.00
7,000 6,543 7.08
6,057 6,005 6,073 7.00
5,871
6,000 6.12
6.00
5,000 4.75
5.00 4.31
4,000
4.00
3.25
3,000 3.00
2,000 2.00
1,000 1.00
- -
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Working Capital Analysis (Rupees in Million) Share Price (Rupees)
3,500 3,323 3,256 45.00 43.07

40.00
3,000 40.00
36.00 34.98 36.00
2,502 35.00
2,500 2,376 2,321
30.00
2,000 25.00
1,500 20.00
15.00
1,000
10.00
500
5.00
- -
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
STATEMENT OF COMPLIANCE
With Listed Companies (Code of Corporate Governance) Regulations, 2019 (CCG)
For the Year Ended June 30, 2021
The company has complied with the requirements of the Regulations in the following manner:
1. The total number of directors are 07 as per the following:
a. Male: 06 (Six) b. Female: 01 (One)
2. The composition of board is as follows:
Executive Directors Non-Executive Directors
Mr. Muhammad Zeid Yousaf Saigol Mr. M. Naseem Saigol

Mr. Muhammad Murad Saigol
Syed Manzar Hassan
Independent Director Female Director
Mr. Muhammad Omer Farooq Ms. Sadaf Kashif

Mr. Faisal Riaz
Ms. Sadaf Kashif (Female Director)
3. The directors have confirmed that none of them is serving as a director on more than seven listed
companies, including this company;
4. The company has prepared a Code of Conduct and has ensured that appropriate steps have been taken
to disseminate it throughout the company along with its supporting policies and procedures.
5. The board has developed a vision/mission statement, overall corporate strategy and significant policies
of the company. The Board has ensured that complete record of particulars of significant policies along
with their date of approval or updating is maintained by the Company.
6. All the powers of the board have been duly exercised and decisions on relevant matters have been taken
by board/ shareholders as empowered by the relevant provisions of the Act and these Regulations;
7. The meetings of the board were presided over by the Chairman and, in his absence, by a director elected
by the board for this purpose. The board has complied with the requirements of Act and the Regulations
with respect to frequency, recording and circulating minutes of meeting of the board.
8. The board of directors have a formal policy and transparent procedures for remuneration of directors in
accordance with the Act and these Regulations;
9. In terms of the requirement of the clause 19 of the CCG Regulations, we confirm that five directors have
completed the Directors Training Program (DTP) and one director is exempt from the DTP.
10. The board has approved appointment of Chief Financial Officer, Company Secretary and Head of
Internal Audit, including their remuneration and terms and conditions of employment and complied with
relevant requirements of the Regulations.
11. Chief Financial Officer and Chief Executive Officer duly endorsed the financial statements before
approval of the board;
12. The board has formed committees comprising of members given below:
Audit Committee
1. Mr. Muhammad Omer Farooq
Chairman - Independent Director
3. Ms. Sadaf Kashif
HR and Remuneration Committee

1. Mr. Faisal Riaz
Chairman - Independent Director
2. Mr. Muhammad Zeid Yousuf Saigol
13. The terms of reference of the aforesaid committees have been formed, documented and advised to the
committee for compliance.
14. The frequency of meetings (quarterly/half yearly/yearly) of the committee were as per following:
a) Audit Committee: Five meetings during the Financial Year 2020- 2021.
b) HR and Remuneration Committee: One meeting during the Financial Year 2020- 2021.
15. The board has set up an effective Internal Audit function which is considered suitably qualified and
experienced for the purpose and are conversant with the policies and procedures of the Company;
16. The statutory auditors of the company have confirmed that they have been given a satisfactory rating
under the Quality Control Review program of the Institute of Chartered Accountants of Pakistan and
registered with Audit Oversight Board of Pakistan, that they and all their partners are in compliance with
International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute
of Chartered Accountants of Pakistan and that they and the partners of the firm involved in the audit are
not a close relative (spouse, parent, dependent and non-dependent children) of the Chief Executive
Officer, Chief Financial Officer, Head of Internal Audit, Company Secretary or Director of the Company;
17. The statutory auditors or the persons associated with them have not been appointed to provide other
services except in accordance with the Act, these regulations or any other regulatory requirement and
the auditors have confirmed that they have observed IFAC guidelines in this regard;
18. We confirm that all other requirements of the Regulations 3, 6, 7, 8, 27, 32, 33 and 36 of the Regulations
have been complied with.
For the behalf of the Board
Lahore: M. Zeid Yousuf Saigol Syed Manzar Hassan

September 23, 2021 Chief Executive/Direcor Director
INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF KOHINOOR ENERGY LIMITED
REVIEW REPORT ON THE STATEMENT OF COMPLIANCE CONTAINED IN LISTED
COMPANIES (CODE OF CORPORATE GOVERNANCE) REGULATIONS, 2019
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate
Governance) Regulations, 2019 (the Regulations) prepared by the Board of Directors of Kohinoor Energy
Limited (the Company) for the year ended June 30, 2021 in accordance with the requirements of regulation
36 of the Regulations.
The responsibility for compliance with the Regulations is that of the Board of Directors of the Company. Our
responsibility is to review whether the Statement of Compliance reflects the status of the Company's
compliance with the provisions of the Regulations and report if it does not and to highlight any non-
compliance with the requirements of the Regulations. A review is limited primarily to inquiries of the
Company's personnel and review of various documents prepared by the Company to comply with the
Regulations.
As a part of our audit of the financial statements we are required to obtain an understanding of the
accounting and internal control systems sufficient to plan the audit and develop an effective audit approach.
We are not required to consider whether the Board of Directors' statement on internal control covers all risks
and controls or to form an opinion on the effectiveness of such internal controls, the Company's corporate
governance procedures and risks.
The Regulations require the Company to place before the Audit Committee, and upon recommendation of
the Audit Committee, place before the Board of Directors for their review and approval, its related party
transactions. We are only required and have ensured compliance of this requirement to the extent of the
approval of the related party transactions by the Board of Directors upon recommendation of the Audit
Committee.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of
Compliance does not appropriately reflect the Company's compliance, in all material respects, with the
requirements contained in the Regulations as applicable to the Company for the year ended June 30, 2021.
A. F. Ferguson & Co.

Lahore
Date: October 04, 2021
INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF KOHINOOR ENERGY LIMITED
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the annexed financial statements of Kohinoor Energy Limited ('the Company'), which
comprise the statement of financial position as at June 30, 2021, and the statement of profit or loss and other
comprehensive income, the statement of changes in equity, the statement of cash flows for the year then
ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information, and we state that we have obtained all the information and explanations
which, to the best of our knowledge and belief, were necessary for the purposes of the audit.
In our opinion and to the best of our information and according to the explanations given to us, the statement
of financial position, the statement of profit or loss and other comprehensive income, the statement of
changes in equity and the statement of cash flows together with the notes forming part thereof conform with
the accounting and reporting standards as applicable in Pakistan and give the information required by the
Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the
state of the Company's affairs as at June 30, 2021 and of the profit and other comprehensive income, the
changes in equity and its cash flows for the year then ended.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in
Pakistan. Our responsibilities under those standards are further described in the 'Auditor's responsibilities
for the audit of the financial statements' section of our report. We are independent of the Company in
accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional
Accountants as adopted by the Institute of Chartered Accountants of Pakistan ('the Code') and we have
fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Following are the Key audit matters:
S. Key audit matters How the matter was addressed in our audit
No.
1. Amendment to the Power Purchase Our audit procedures, amongst others,

Agreement (PPA): included the following:
(Refer notes 1 and 3 to the financial Ÿ obtained the amendments to the
statements) Agreements and checked approvals of the
relevant authorities (Board of Directors of
Pursuant to the negotiation with the
the Company, Power Purchaser and
Implementation Committee formed by
Government of Pakistan);
Government of Pakistan on October 07, 2020,
on February 11, 2021, the Company signed Ÿ made inquiries with the management of
Amendment to the PPA and the Master the Company and read minutes of the
Agreement (the Agreements) with Central meetings of the Board of Directors and
Power Purchasing Agency Guarantee Limited Board Audit Committee;
(CPPA-G) (Power Purchaser).
No.
As per the Agreements, the Company is Ÿ traced the receipts of the first tranche from
entitled to receive outstanding receivables of the Power Purchaser;
Rs. 4,974 million due from Power Purchaser
Ÿ checked that the invoices raised by the
as on November 30, 2020, out of which the
Company during the year are in
Company received Rs. 1,989 million as the 1st
accordance with the requirements of PPA
tranche (40%) on June 04, 2021, the
and related amendment(s);
remaining 60% being due in the next six
months. Post receipt of 1st tranche, the Ÿ circularized confirmation of trade debts to
Company has provided a "Tariff Discount" of CPPA-G;
11% in the escalable component of Capacity
Ÿ checked the Agreements and assessed
Purchase Price and Variable Operations and
whether trade debts are secured against
Maintenance component of Energy Purchase
guarantee from the Government of
Price.
Pakistan and whether any impairment is
In this regard, the management of the required to be recognized there against as
Company has evaluated the impact of the per the applicable accounting and
Agreements on the financial statements in reporting standards;
terms of profitability and cashflows.
Ÿ checked the management's assessment
Signing of the above-mentioned Agreements whether any impairment of the Cash
is a significant event during the year and the Generating Unit is required to be
evaluation of its impact involves significant recognized there against as per the
management judgement, therefore, we applicable accounting and reporting
considered this as a key audit matter. standards; and
Ÿ checked the adequacy of the disclosures
made by the Company with regard to
applicable accounting and reporting
standards.
2. Dissolution of approved funded defined Our audit procedures, amongst others,

benefit gratuity scheme for all employees: included the following:
(Refer notes 6.2, 10 and 37.1 to the financial Ÿ inspected the resolution of the Board of
statements) Directors for dissolution of the Gratuity
Fund and approval of proposed defined
During the year, the Company resolved to
contribution plan;
discontinue the approved funded defined
benefit gratuity scheme from June 30, 2021 Ÿ checked correspondence with the
and replaced it with a defined contribution relevant authorities for dissolution of
plan (contributory provident fund) for all its defined benefit gratuity scheme;
permanent employees.
Ÿ checked compliance of relevant laws and
Consent from eligible employees related to regulations;
the proposed scheme was obtained and the
Ÿ understood relevant controls over the
Company engaged legal advisors to amend
completeness and accuracy of data
the rules of the Gratuity Fund and file
extracted for computation of liability;
application for dissolution before the relevant
authorities. Furthermore, the Company Ÿ tested reliability of the underlying data
appointed an actuarial expert to calculate the used to determine the liability to Gratuity
Fund;
No.
final liability / settlement due to the Gratuity Ÿ recalculated the settlement liability to be
Fund and contributed Rs. 99.89 million. paid to the eligible employees;
The dissolution of the defined benefit gratuity Ÿ on a sample basis, traced payments
scheme and its settlement was a significant towards the Gratuity Fund;
development during the year, therefore, we
Ÿ on a sample basis, inspected the consent
considered this as a key audit matter.
of eligible employees and obtained
confirmation about settlements paid; and
Ÿ checked the adequacy of the disclosures
made by the Company with regard to
applicable accounting and reporting
standards.
Emphasis of matter
We draw attention to notes 14.1.1 and 14.1.2 to the financial statements, which describe the uncertainties
regarding the outcome of certain claims by WAPDA which have been disputed by the Company. Our opinion
is not qualified in respect of these matter.
Information Other than the Financial Statements and Auditor's Report Thereon
Management is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements and our auditors' report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the accounting and reporting standards as applicable in Pakistan and the requirements of
Companies Act, 2017 (XIX of 2017) and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Board of Directors are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs as applicable in Pakistan will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Ÿ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Ÿ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company's internal control.
Ÿ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Ÿ Conclude on the appropriateness of management's use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the
related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
Ÿ Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Board of Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements

Based on our audit, we further report that in our opinion:
a) proper books of account have been kept by the Company as required by the Companies Act, 2017 (XIX
of 2017);
b) the statement of financial position, the statement of profit or loss and other comprehensive income, the
statement of changes in equity and the statement of cash flows together with the notes thereon have
been drawn up in conformity with the Companies Act, 2017 (XIX of 2017) and are in agreement with the
books of account and returns;
c) investments made, expenditure incurred and guarantees extended during the year were for the purpose
of the Company's business; and
d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by
the company and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
The engagement partner on the audit resulting in this independent auditor's report is Hammad Ali Ahmad.
A. F. Ferguson & Co.

Lahore
Date: October 04, 2021
STATEMENT OF FINANCIAL POSITION

2021 2020
Note (Rupees in thousand)
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital

170,000,000 (June 2020: 170,000,000) ordinary
shares of Rs. 10 each 1,700,000 1,700,000
Issued, subscribed and paid up capital

169,458,614 (June 2020: 169,458,614) ordinary
shares of Rs. 10 each 7 1,694,586 1,694,586
Un-appropriated profit 4,378,113 4,848,005
6,072,699 6,542,591
NON-CURRENT LIABILITIES
Long term finance - secured 8 27,930 -
Deferred grant 9 630 -
28,560 -
CURRENT LIABILITIES
Employee benefits 10 - 82,405

Short term finances - secured 11 3,790,152 5,389,907
Current portion of long term finance- secured 8 53,758 -
Current portion of deferred grant 9 3,674 -
Trade and other payables 12 165,164 150,594
Accrued finance cost 13 29,663 143,274
Unclaimed dividend 10,616 10,228
Provision for taxation - net 58,655 57,082
4,111,682 5,833,490
CONTINGENCIES AND COMMITMENTS 14 - -
10,212,941 12,376,081
The annexed notes 1 to 39 form an integral part of these financial statements.
Chief Executive Officer Director

AS AT JUNE 30, 2021

2021 2020
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 15 2,841,686 3,213,573

Intangible assets 16 3,088 3,594
Long term loans and deposits 17 815 2,118
2,845,589 3,219,285
CURRENT ASSETS
Stores, spares and loose tools 18 300,594 303,561

Stock in trade 19 756,453 48,965
Trade debts - net 20 3,981,105 8,035,685
Loans, advances, deposits, prepayments
and other receivables 21 536,830 466,177
Cash and bank balances 22 1,792,370 302,408
7,367,352 9,156,796
10,212,941 12,376,081
Chief Financial Officer

STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME FOR THE YEAR ENDED JUNE 30, 2021
2021 2020
Revenue from contract with customer 23 6,752,330 7,548,782
Cost of sales 24 (4,983,277) (5,391,882)
Gross profit 1,769,053 2,156,900

Administrative expenses 25 (295,500) (289,925)
Other income 26 12,287 324
Operating profit 1,485,840 1,867,299

Finance costs 27 (282,856) (830,547)
Taxation 28 (3,563) (94)
Profit after tax for the year 1,199,421 1,036,658
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss

- Re-measurement of staff gratuity fund 25,273 (25,774)
Items that may be reclassified subsequently to profit or loss - -
Total other comprehensive income / (loss) 25,273 (25,774)
Total comprehensive income for the year 1,224,694 1,010,884
Earnings per share - basic and diluted - Rupees 35 7.08 6.12
Chief Executive Officer Director Chief Financial Officer

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED JUNE 30, 2021
2021 2020
Cash flows from operating activities
Cash generated from operations 29 5,266,411 1,501,870

Employee benefits paid (129,628) (45,412)
Mark up on borrowings paid (395,079) (791,000)
Taxes paid (1,990) (2,090)
Net cash generated from operating activities 4,739,714 663,368
Cash flows from investing activities
Purchase of property, plant and equipment (53,756) (98,955)

Interest / mark up income received 2,019 324
Net decrease in long term loans and deposits 1,303 1,445
Proceeds from sale of property, plant and equipment 10,031 3,943
Net cash used in investing activities (40,403) (93,243)
Cash flows from financing activities
Dividend paid (1,694,198) (378,777)

Long term finance received 114,245 -
Long term finance repayment (29,641) -
Net cash used in financing activities (1,609,594) (378,777)
Net increase in cash and cash equivalents 3,089,717 191,348

Cash and cash equivalents at the beginning of the year (5,087,499) (5,278,847)
Cash and cash equivalents at the end of the year 30 (1,997,782) (5,087,499)

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED JUNE 30, 2021
Share Un-appropriated Total
Capital Profit
(Rupees in thousand)
Balance as at July 1, 2019 1,694,586 4,176,038 5,870,624
Transactions with owners:

Final dividend for the year ended
June 30, 2019 at the rate of Rs. 2 per share - (338,917) (338,917)
Profit for the year - 1,036,658 1,036,658

Other comprehensive income:
Re-measurement of staff gratuity fund - (25,774) (25,774)
Total comprehensive income for the year - 1,010,884 1,010,884
Balance as at June 30, 2020 1,694,586 4,848,005 6,542,591
Transactions with owners:
Interim dividend for the year ended

June 30, 2021 - 1st Interim at the rate of
Rs. 6 per share - (1,016,752) (1,016,752)
June 30, 2021 - 2nd Interim at the rate of
Rs. 4 per share - (677,834) (677,834)
Profit for the year - 1,199,421 1,199,421

Other comprehensive income:
Re-measurement of staff gratuity fund - 25,273 25,273
Total comprehensive income for the year - 1,224,694 1,224,694
Balance as at June 30, 2021 1,694,586 4,378,113 6,072,699

NOTES TO AND FORMING PART OF THE FINANCIAL

STATEMENTS FOR THE YEAR ENDED JUNE 30, 2021
1. Legal status and nature of business
Kohinoor Energy Limited (the 'Company') was incorporated in Pakistan on April 26, 1994 as a public
limited company under the repealed Companies Ordinance, 1984 (the Ordinance) repealed with
the enactment of the Companies Act, 2017 on May 30, 2017. The Company is listed on the Pakistan
Stock Exchange. The principal activities of the Company are to own, operate and maintain a power
plant of 124 MW capacity in Lahore and to sell the electricity produced therefrom to a sole customer,
the Water and Power Development Authority (WAPDA) under a Power Purchase Agreement (PPA),
for a term of 30 years which commenced from June 19, 1997. Subsequently, WAPDA has
irrevocably transferred all of its rights, obligations and liabilities under the PPA to Central Power
Purchasing Agency Guarantee Limited (CPPA-G) (Power Purchaser) thereunder via Novation
Agreement and Amendment Agreement to the Implementation Agreement which became effective
on February 11, 2021 after approval from the relevant authorities.
The address of the registered office of the Company is 301, 3rd Floor, Green Trust Tower, Blue Area,
Islamabad and the Company's power plant has been set up at Post Office Raja Jang, Near Tablighi
Ijtima, Raiwind Bypass, Lahore.
2 Statement of compliance
These financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan. The accounting and reporting standards applicable in Pakistan
comprise of:
i) International Financial Reporting Standards ('IFRS') issued by the International Accounting
Standards Board ('IASB') as notified under the Companies Act, 2017; and
ii) Provisions of and directives issued under the Companies Act, 2017.
Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS, the
provisions of and directives issued under the Companies Act, 2017 have been followed.
3 Amendment to the Power Purchase Agreement (PPA)
On June 03, 2020, the Government of Pakistan (GoP) formed a negotiation committee (the
Committee) to initiate discussion with Independent Power Producers (IPPs) including Kohinoor
Energy Limited (the 'Company') on various matters, which inter alia, included "Tariff Discount" and
other terms and conditions of respective PPAs. After several discussions with the Committee, a
Memorandum of Understanding (MoU) was signed between the Committee and the Company on
August 21, 2020.
Subsequent to the MoU, the GoP through notification dated October 7, 2020, constituted the
Implementation Committee to finalize the binding agreement based on the MoU referred above.
After several discussions with the Implementation Committee, CPPA-G signed the Amendment to
the PPA and the Master Agreement (the Agreements) on February 11, 2021. These Agreements
were approved by the Board of Directors of the Company vide a circular resolution dated February
01, 2021. Furthermore, these agreements were approved by the Federal Government through the
Cabinet Committee on Energy (CCoE) on February 08, 2021.
Pursuant to the terms of these Agreements, the Company is entitled to receive outstanding
receivables amounting to Rs 4,974 million due from Power Purchaser as on November 30, 2020, in
two tranches. Accordingly, the Company received Rs 1,989 million as the 1st tranche (40%) on June
04, 2021. The remaining amount is due to be recovered within six months from the date of the first
tranche as per the terms of the Agreements.
As part of the Amendment to the PPA, the Company has provided a "Tariff Discount" of 11% in the
escalable component of Capacity Purchase Price (CPP) and Variable Operations and Maintenance
(O&M) component of Energy Purchase Price (EPP) with effect from the date of receipt of 1st tranche
i.e. June 04, 2021. Moreover, there is a restriction on indexation of the 50% of the reduced escalable
component of CPP and reduced Variable O&M when the exchange rate reaches to Rs. 168.60 /
USD.
The Tariff Discount is expected to have an impact on the future cashflows and profitability of the
Company. In this regard, the management of the Company has conducted an impairment
assessment of the Cash Generating Unit (CGU) as at the financial position date, and has assessed
that no impairment adjustment is required against the carrying value of the assets.
Pursuant to the clause 2.5 of the Amendment to the PPA signed by the Company and CPPA-G, the
parties have also agreed that the requirement for "Company letter of credit" and "CPPA-G (formerly
WAPDA) letter of credit" under section 9.4(f) of the original PPA have been deleted in the entirety.
4 Basis of preparation
4.1 Initial application of standards, amendments or an interpretation to existing standards
The following amendments to existing standards have been published that are applicable to the
Company's financial statements covering annual periods, as detailed below:
4.1.1 Standards, amendments to published standards and interpretations that are effective in the
current year
Certain standards, amendments and interpretations to IFRS are effective for accounting periods
beginning on July 1, 2020, but are considered not to be relevant or to have any significant effect on
the Company’s operations (although they may affect the accounting for future transactions and
events) and are, therefore, not detailed in these financial statements.
4.1.2 New accounting standards / amendments and IFRS interpretations that are not yet effective
The following standards, amendments and interpretations are only effective for accounting periods,
beginning on or after the date mentioned against each of them. These standards, interpretations
and the amendments are either not relevant to the Company's operations or are not expected to
have significant impact on the Company's financial statements other than certain additional
disclosures.
4.1.2.1 Standards or interpretations with no significant impact Effective date (annual

periods beginning on or
after)
Amendments to IFRS 9 'Financial Instruments interest rate January 01, 2021
benchmarks'
Amendments to IAS 16 'Property, Plant and Equipment', prohibiting a January 01, 2022
company from deducting from the cost of property, plant and
equipment amounts received from selling items produced while the
company is preparing the asset for its intended use.
Amendments to IAS 37 'Provisions, Contingent Liabilities and January 01, 2022

Contingent Assets' regarding the costs to include when assessing
whether a contract is onerous.
Effective date (annual

periods beginning on or
after)
Annual Improvements 2018-2020 January 01, 2022

Narrow scope amendments to IFRS 3 January 01, 2022
Classification of liabilities as current or non-current (Amendments to January 01, 2023

IAS 1).
Amendments to IAS 8 'Accounting policies, changes in accounting
estimates and errors' January 01, 2023
Other than the aforesaid standards, interpretations and amendments, the IASB has also issued the
following standards which have not been adopted locally by the Securities and Exchange
Commission of Pakistan (SECP):
IFRS 1 – First Time Adoption of International Financial Reporting Standards
IFRS 17 – Insurance Contracts
4.1.3 Standards, amendments and interpretations to existing standards that are not yet effective
but applicable / relevant to the Company's operations
4.1.3.1 The Securities and Exchange Commission of Pakistan (SECP) through S.R.O 229 (I) / 2019 dated
February 14, 2019, notified that the standard IFRS 9, ‘Financial Instruments’ would be effective for
reporting period / year ending on or after June 30, 2019. However, SECP through SRO 1177 (I) /
2021 dated September 13, 2021, granted exemption from applying expected credit loss based
impairment model to financial assets due from the Government till June 30, 2022. The management
of the Company believes that the application of this standard subsequent to June 30, 2021, will not
have any material impact on the Company.
4.1.3.2 The Securities and Exchange Commission of Pakistan (SECP) through S.R.O. 24(I) / 2012 dated
January 16, 2012, as modified by S.R.O. 986(I) / 2019 dated September 2, 2019, granted exemption
from the application of IFRS 16 ‘Leases' to all companies, which have entered into power purchase
agreements before January 1, 2019. However, SECP made it mandatory to disclose the impact of
the application of IFRS 16 on the company's financial statements.
Under IFRS 16, the consideration required to be made by the lessee for the right to use the asset is
to be accounted for as a finance lease. The Company’s power plant’s control due to purchase of
total output by CPPA-G appears to fall under the scope of finance lease under IFRS 16.
Consequently, if the Company were to follow IFRS 16 with respect to its power purchase agreement,
the effect on the financial statements would be as follows:
2021 2020
De-recognition of property, plant and equipment (2,570,392) (2,924,876)

Recognition of lease debtor 269,604 381,282
Decrease in un-appropriated profit at the beginning of the year (2,543,594) (2,829,814)
Increase in profit for the year 344,256 286,220
Decrease in un-appropriated profit at the end of the year (2,199,338) (2,543,594)

5 Basis of measurement
5.1 These financial statements have been prepared under the historical cost convention, modified by
capitalization of exchange differences in previous years, except for revaluation of certain financial
instruments at fair value and recognition of certain employee retirement benefits at present value.
The Company's significant accounting policies are stated in note 6. Not all of these significant
policies require the management to make difficult, subjective or complex judgments or estimates.
The following is intended to provide an understanding of the policies the management considers
critical because of their complexity, judgment of estimation involved in their application and their
impact on these financial statements. Estimates and judgments are continually evaluated and are
based on historical experience, including expectations of future events that are believed to be
reasonable under the circumstances. These judgments involve assumptions or estimates in
respect of future events and the actual results may differ from these estimates. The areas involving a
higher degree of judgments or complexity or areas where assumptions and estimates are
significant to the financial statements are as follows:
a) Retirement benefits
The Company uses the valuation performed by an independent actuary as the present value of its
retirement benefit obligations. The valuation is based on assumptions as mentioned in note 6.2.
b) Useful lives and residual values of property, plant and equipment
The Company reviews the useful lives of property, plant and equipment on regular basis. Any
change in estimates in future years might affect the carrying amounts of the respective items of
property, plant and equipment with a corresponding effect on the depreciation charge and
impairment.
c) Provision for obsolescence of stores and spares
The Company reviews stores and spares inventory items based on the technical evaluation(s)
conducted in-house by the technical team. Provision is recognized against items determined to be
obsolete and / or not expected to be used up till the expiry of PPA term.
6 Significant accounting policies
The significant accounting policies adopted in the preparation of these financial statements are set
out below. These policies have been consistently applied to all the years presented, unless
otherwise stated.
6.1 Taxation
Current
The profits and gains of the Company derived from electric power generation are exempt from tax
subject to the conditions and limitations provided for in terms of clause 132 of Part I of the Second
Schedule to the Income Tax Ordinance, 2001. However, full provision is made in the profit and loss
account on income from sources not covered under the above clause at current rates of taxation
after taking into account, tax credits and rebates available, if any.
Deferred
Deferred tax has not been provided in these financial statements as the Company's management
believes that the temporary differences will not reverse in the foreseeable future due to the fact that
the profits and gains of the Company derived from electric power generation are exempt from tax
subject to the conditions and limitations provided for in terms of clause 132 of Part I of the Second
Schedule to the Income Tax Ordinance, 2001.
6.2 Employee retirement benefits
The main features of the schemes operated by the Company for its employees are as follows:
a) Defined benefit plans
The Company operates an approved funded defined benefit gratuity scheme for all employees
according to the terms of employment subject to a minimum qualifying period of service. The
contribution to the fund is made on the basis of actuarial valuation to cover obligations under the
scheme for all employees eligible to gratuity benefits. The latest actuarial valuation for the scheme
was carried out as at June 30, 2021 and the actual return on plan assets during the year was Rs
26.46 million (2020: Rs 32.98 million). The actual return on plan assets represents the difference
between the fair value of plan assets at beginning of the year and end of the year after adjustments
for contributions made by the Company as reduced by benefits paid during the year. The Board
Members of the Kohinoor Energy Limited Employees Gratuity Fund ('Gratuity Fund') are managing
the Gratuity Fund as per the applicable Gratuity Fund Deed, Rules and Regulations of the fund.
Projected Unit Credit (PUC) Actuarial Cost Method, using the following significant assumptions, is
used for valuation of this scheme:
- Discount rate 10% per annum (2020: 8.5% per annum)

- Expected rate of increase in salary level 9% per annum (2020: 7.5% per annum)
The Company accounts for actuarial gains / losses in accordance with IAS 19 "Employee benefits".
The Board of Directors (the Board) of the Company have resolved to discontinue the approved
funded defined benefit gratuity scheme through a circular resolution dated May 05, 2021 with effect
from June 30, 2021, and proposed a defined contribution plan (contributory provident fund) for all
its permanent employees with effect from July 01, 2021. Consent from eligible employees related to
the proposed scheme was obtained.
Pursuant to the decision of the Board, the Company engaged legal advisor(s) to amend the rules of
the Gratuity Fund and file application for dissolution before the relevant authorities. Further, the
Company appointed an actuarial expert to calculate the final liability / settlement due to the Gratuity
Fund and contributed Rs 99.89 million during the year.
This conversion has been accounted for as a settlement under IAS 19 - ‘Employee benefits’.
b) Accumulating compensated absences
Provisions are made annually to cover the obligation for accumulating compensated absences and
are charged to profit and loss account.
6.3 Property, plant and equipment
6.3.1 Operating fixed assets
Operating fixed assets except freehold land are stated at cost less accumulated depreciation and
any identified impairment loss. Freehold land is stated at cost less any identified impairment loss.
Cost in relation to certain plant and machinery comprises historical cost, exchange differences
capitalized in previous years and borrowing cost mentioned in note 6.11.
Depreciation on all operating fixed assets is charged to profit and loss account on the straight line
method so as to write off the cost of an asset over its estimated useful life at the annual rates
mentioned in note 15.1 after taking into account their residual values.
The assets' residual values and useful lives are reviewed, at each financial year end, and adjusted if
the impact on depreciation is significant. The Company's estimate of the residual value of its
operating fixed assets as at June 30, 2021 has not required any adjustment as its impact is
considered insignificant.
Depreciation on additions to operating fixed assets is charged from the month in which the asset is
available for use, while no depreciation is charged for the month in which the asset is disposed off.
The net exchange difference relating to an asset, at the end of each year, is amortised in equal
installments over its remaining useful life.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount (note 6.5).
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. All other repair and maintenance
costs are charged to income during the period in which they are incurred.
The gain or loss on disposal or retirement of an asset represented by the difference between the
sale proceeds and the carrying amount of the asset is recognized as an income or expense.
6.3.2 Capital work-in-progress
Capital work-in-progress is stated at cost less any identified impairment loss. All expenditure
connected with specific assets incurred during installation and construction period are carried
under capital work-in-progress. These are transferred to operating fixed assets as and when these
are available for use.
6.3.3 Stores held for capitalization
Stores held for capitalization qualify as property, plant and equipment when company expects to
use them for more than one year. Transfers are made to relevant operating fixed assets category as
and when such items are available for use.
6.4 Intangible assets
Expenditure incurred to acquire intangible assets is stated at cost less accumulated amortisation
and any identified impairment loss. Intangible assets are amortized using the straight line method
over its estimated useful life at the annual rate mentioned in note 16.
Amortization on additions to intangible assets is charged from the month in which an asset is
available for use while no amortisation is charged for the month in which the asset is disposed off.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's
carrying amount is greater than its estimated recoverable amount (note 6.5).
6.5 Impairment of non-financial assets
Assets that have an indefinite useful life, for example land, are not subject to depreciation /
amortisation and are tested annually for impairment. Assets that are subject to depreciation /
amortisation are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash
flows (cash-generating units). Non-financial assets that suffered an impairment are reviewed for
possible reversal of the impairment at each reporting date.
6.6 Stores, spares and loose tools
Usable stores and spares are valued principally at moving average cost, while items considered
obsolete are carried at nil value. Items in transit are valued at cost comprising invoice value plus
other charges paid thereon.
6.7 Stock in trade
Stock in trade except for those in transit and furnace oil are valued principally at lower of moving
average cost and net realizable value. Furnace oil is valued at lower of cost based on First in First
Out (FIFO) basis and net realizable value.
Net realizable value signifies the estimated selling price in the ordinary course of business less costs
necessarily to be incurred in order to make a sale.
6.8 Financial instruments
6.8.1 Financial assets other than those due from the Government of Pakistan
In accordance with the requirements of IFRS 9 'Financial Instruments', the Company classifies its
financial assets in the following categories: at amortised cost, at fair value through other
comprehensive income and at fair value through profit or loss. The classification depends on the
Company’s business model for managing the financial assets and the contractual cash flow
characteristics of the financial asset. Management determines the classification of its financial
assets at the time of initial recognition.
a) Financial assets at amortised cost
Financial assets at amortised cost are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They are included in current assets, except for
maturities greater than twelve months after the reporting date, which are classified as non-current
assets. These comprise of loans, advances, deposits and other receivables and cash and cash
equivalents in the statement of financial position.
b) Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income are held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
As at reporting date, the Company does not hold any debt instruments classified as fair value
through other comprehensive income.
c) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading and financial
assets designated upon initial recognition as at fair value through profit or loss or not classified in
any of the other categories. A financial asset is classified as held for trading if acquired principally for
the purpose of selling in the short term. Assets in this category are classified as current assets.
All financial assets are recognized at the time when the Company becomes a party to the
contractual provisions of the instrument. Regular purchases and sales of investments are
recognized on trade-date – the date on which the Company commits to purchase or sell the asset.
Financial assets are initially recognized at fair value plus transaction costs for all financial assets not
carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss
are initially recognized at fair value and transaction costs are expensed in the profit and loss
account. Financial assets are de-recognized when the rights to receive cash flows from the assets
have expired or have been transferred and the Company has transferred substantially all the risks
and rewards of ownership. Financial assets at fair value through profit or loss and at fair value
through other comprehensive income are subsequently carried at fair value. Financial assets at
amortised cost are measured using the effective interest rate method.
Gains or losses arising from changes in the fair value of the 'financial assets at fair value through
profit or loss' category are presented in the profit and loss account in the period in which they arise
while gains or losses arising from changes in the fair value of the 'financial assets at fair value
through other comprehensive income' category are presented in the statement of other
comprehensive income in the period in which they arise. Dividend income from financial assets is
recognized in the profit and loss account as part of other income when the Company's right to
receive payments is established.
The Company applies simplified approach, as allowed under IFRS 9, for measuring expected credit
losses which uses a lifetime expected loss allowance for all the financial assets. It assess on a
forward-looking basis the expected credit losses associated with its financial assets carried at
amortised cost. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.
6.8.2 Financial assets due from the Government of Pakistan
Financial assets due from the Government of Pakistan include trade debts and other receivables
due from CPPA-G under PPA that also includes accrued amounts. SECP through SRO 985(I)/2019
dated September 2, 2019, has notified that, in respect of companies holding financial assets due
from the Government of Pakistan, the requirements contained in IFRS 9 with respect to application
of expected credit losses method shall not be applicable till June 30, 2021, and that such
companies shall follow relevant requirements of IAS 39 in respect of above referred financial assets
during the exemption period. Accordingly, the same continue to be reported as per the following
accounting policy:
Trade debts and other receivables are recognized initially at invoice value, which approximates fair
value, and subsequently measured at amortised cost using the effective interest method, less
provision for impairment. A provision for impairment is established when there is objective evidence
that the Company will not be able to collect all the amount due according to the original terms of the
receivable. Significant financial difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganization, and default or delinquency in payments are considered
indicators that the trade debt is impaired. The provision is recognized in the profit or loss account.
When a trade debt is uncollectible, it is written-off against the provision. Subsequent recoveries of
amounts previously written off are credited to the profit or loss account. If, in a subsequent period,
the amount of the impairment loss decreases and the decrease can be related objectively to an
event occurring after the impairment was recognised (such as an improvement in the debtor’s credit
rating), the reversal of the previously recognised impairment loss is recognised in the statement of
profit or loss.
6.8.3 Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, and financial liabilities at amortised cost, as appropriate. All financial liabilities are
recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.
A financial liability is de-recognized when the obligation under the liability is discharged or
cancelled or expired. Where an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially modified,
such an exchange or modification is treated as a derecognition of the original liability and the
recognition of a new liability, and the difference in respective carrying amounts is recognized in the
profit and loss account.
6.8.4 Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is reported in the financial
statements only when there is a legally enforceable right to set off the recognized amount and the
Company intends either to settle on a net basis or to realize the assets and to settle the liabilities
simultaneously.
6.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less and short term finances
under mark up arrangements with original maturities of three months or less.
6.10 Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost, any difference between the proceeds (net of transaction
costs) and the redemption value is recognized in the profit and loss account over the period of the
borrowings using the effective interest method. Finance costs are accounted for on an accrual basis
and are reported under accrued finance costs to the extent of the amount remaining unpaid.
Borrowings are classified as current liabilities unless the Company has an unconditional right to
defer settlement of the liability for at least twelve months after the reporting date.
6.11 Borrowing costs
Borrowing costs incurred for the construction of any qualifying asset are capitalized during the
period of time that is required to complete and prepare the asset for its intended use. Other
borrowing costs are expensed in the profit and loss account in the period in which they arise.
6.12 Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate of the amount can be made. Provisions
are reviewed at each reporting date and adjusted to reflect the current best estimate.
6.13 Contingent liabilities
Contingent liability is disclosed when:
- there is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non occurrence of one or more uncertain future events not wholly
within the control of the Company; or
- there is present obligation that arises from past events but it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation or the amount of
the obligation cannot be measured with sufficient reliability.
6.14 Government grants
Government grants are recognised where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with. When the grant relates to an expense
item, it is recognised as income on a systematic basis over the periods that the related costs, for
which it is intended to compensate, are expensed. When the grant relates to an asset, it is
recognised as income in equal amounts over the expected useful life of the related asset.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at
nominal amounts and recognised in profit or loss over the expected useful life of the asset, based on
the pattern of consumption of the benefits of the underlying asset by equal annual instalments.
In subsequent periods, the grant shall be deducted from the related expense in the statement of
profit or loss.
6.15 Revenue recognition
Performance obligation related to revenue on account of energy is satisfied on transmission of

electricity to CPPA-G, whereas on account of capacity is satisfied when due. These are recognized
based on the rates determined under the mechanism laid down in the Power Purchase Agreement
(PPA). Payment of the transaction price is due on the 25th day of invoicing as per the terms of PPA.
Late payments are subject to interest which is accrued on a time basis, by reference to the principal
outstanding and the effective interest rate applicable. Profit on deposits with banks is recognized on
a time proportion basis by reference to the amounts outstanding and the applicable rates of return.
6.16 Foreign currency transactions and translation
a) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the
primary economic environment in which the Company operates (the functional currency). The
financial statements are presented in Pak Rupees, which is the Company’s functional and
presentation currency.
b) Transactions and balances
Foreign currency transactions are translated into Pak Rupees using the exchange rates prevailing at
the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognized in the profit and loss account.
6.17 Dividend
Dividend distribution to the Company's members is recognized as a liability in the period in which
the dividends are approved.
6.18 Trade and other payables
Trade and other payables are recognized initially at fair value and subsequently measured at
amortised cost using the effective interest method. Exchange gains and losses arising on
translation in respect of liabilities in foreign currency are added to the carrying amount of the
respective liabilities.
7 Issued, subscribed and paid up capital
2021 2020 2021 2020

(Number of shares) (Rupees in thousand)
130,352,780 130,352,780 Ordinary shares of Rs. 10 each 1,303,528 1,303,528

fully paid in cash
39,105,834 39,105,834 Ordinary shares of Rs. 10 each 391,058 391,058

issued as fully paid bonus shares
169,458,614 169,458,614 1,694,586 1,694,586
7.1 Nil (2020: 33,891,722) ordinary shares of the Company are held by an associated Company, Toyota
Tsusho Corporation.
Note 2021 2020

8 Long term finance- secured (Rupees in thousand)
Long term loan 81,688 -

Less: Current portion shown under current liabilities (53,758) -
8.1 27,930 -
8.1 The reconciliation of carrying amount is as follows
Opening balance - -
Loan received during the year 8.2 114,245 -
Loan repaid (29,641)
Transferred to deferred grant 9 (9,418) -
Unwinding of interest expense 6,502 -
81,688 -
less: Current portion shown under current liabilities (53,758) -
27,930 -
8.2 This represents amount of loan against facility of Rs 145,000 thousand (2020: Nil) obtained under
State Bank of Pakistan (SBP) refinance scheme of salaries and wages. The amount is repayable in 8
equal quarterly installments starting from March 31, 2021 and carry markup at the rate of 1.5% per
annum which is payable quarterly.
8.3 This facility is secured by joint parri passu charge over all the present and future current assets of the
Company.
2021 2020
9 Deferred grant
As at July, 01 - -
Received during the year 9,418 -
Unwinding of grant (5,114)
As at June, 30 4,304 -
Represented by:
Non-current portion
630
Current portion -
3,674
4,304 -
9.1 Government grant has been recognized against loan obtained under the SBP refinance scheme of
salaries and wages in lieu of below market-interest rate payable on this loan. There are no unfulfilled
conditions or contingencies attached to this grant effecting its recognition at the reporting date.
Note 2021 2020

10 Employee benefits
Gratuity 10.1 - 72,471

Accumulating compensated absences - 9,934
- 82,405
10.1 This represents staff gratuity and the amounts recognized

in the statement of financial position are as follows:
Present value of defined benefit obligation 10.1.2 - 428,259

Fair value of plan assets 10.1.3 (5,796) (355,788)
Receivable from gratuity fund upon settlement 21 5,796 -
Net asset as at the end of the year 6.2 - 72,471
10.1.1 For the year
Net liability as at the beginning of the year 72,471 21,695

Charge to profit and loss account 46,900 51,554
Contribution by the Company (99,894) (26,552)
Receivable from gratuity fund upon settlement 5,796 -
Re-measurement chargeable to other comprehensive income (25,273) 25,774
Net asset as at the end of the year - 72,471
10.1.2 The movement in the present value of defined benefit

obligation is as follows:
Present value of defined benefit obligation as at the
beginning of the year 428,259 324,499
Current service cost 26,135 21,742
Past service cost - 28,612
Interest cost 34,518 45,774
Benefits paid (476,343) (6,552)
Loss arising on plan settlement 18,850 -
Remeasurements 503 5,365
Experience (gain) / loss (31,922) 8,819
Present value of defined benefit obligation as at the

end of the year - 428,259
Note 2021 2020

10.1.3 The movement in fair value of plan assets is as follows:
Fair value as at the beginning of the year 355,788 302,805

Interest income on plan assets 32,603 44,574
Contribution by the Company 99,894 26,552
Benefits paid (476,343) (6,552)
Return on plan assets excluding interest income (6,146) (11,591)
21 5,796 355,788
10.2 Plan assets of the Fund

2021 2020
(Rupees
Note % (Rupees %
in
in
thousand)
thousand)
The breakup of plan assets of the Fund

is as follows:
Investment in bonds and term deposits - 0.00 292,141 82.11
Investment in equity shares of the Company - 0.00 13,590 3.82
Investment in units in mutual funds - 0.00 49,979 14.05
Cash and bank / receivables 5,796 100.00 78 0.02
10.1.3 5,796 100 355,788 100
Investments out of fund have been made in accordance with the provisions of section 218 of the Act
and the conditions specified thereunder.
10.3 Sensitivity analysis of the Fund
The impact of change in discount rates and salary increases on year end defined benefit obligation
is as follows:
2021 2020
Discount rate + 1% - 321,532

Discount rate - 1% - 388,802
Salary increase + 1% - 389,152
Salary increase - 1% - 320,669
The present value of defined benefit obligation, the fair value of plan assets and the surplus or deficit
of the gratuity fund are as follows:
Note 2021 2020 2019 2018 2017

As at June 30, 2021
Present value of defined benefit

obligation - 428,259 324,500 291,527 253,064
Fair value of plan assets 5,796 355,788 302,805 271,642 253,238
(Deficit) / surplus 10.1.3 5,796 (72,471) (21,695) (19,885) 174
Experience adjustment arising

on obligation (gain) / loss 31,418 (14,184) 3,269 (1,358) (813)
Experience adjustment arising

on plan assets (loss) / gain (6,146) (11,591) (15,995) 9,712 (7,712)
10.4 The Company faces the following risks on account of defined benefit plan:
Final salary risks - The risk that the final salary at the time of cessation of service is different than what
was assumed. Since the benefit is calculated on the final salary, the benefit amount increases as
salary increases.
Mortality risks - The risk that the actual mortality experience is different. The effect depends on the
beneficiaries service / age distribution and the benefit.
Withdrawal risks – The risk of higher or lower withdrawal experience than assumed. The final effect
could go either way depending on the beneficiaries’ service / age distribution and the benefit.
Investment risk - risk of investment underperforming and being not sufficient to meet the liabilities.
Note 2021 2020

11 Short term finances - secured
Under mark up arrangements - secured 11.1 2,214,475 2,040,235

Under arrangements permissible under Shariah - secured 11.1 1,575,677 3,349,672
3,790,152 5,389,907
11.1 Short term finances available from banks under mark up arrangements amount to Rs. 7,510 million
(June 30, 2020: Rs. 9,410 million), out of which finances available from Islamic banks under Islamic
arrangements amount to Rs. 2,900 million (June 30, 2020: Rs. 5,513 million). The rates of mark up
for finances under mark up arrangement ranged from 7.23% to 9.83% per annum (June 30, 2020:
9.08% to 15.81% per annum) and for finances under arrangement permissible under Shariah
ranged from 7.55% to 9.79% per annum (June 30, 2020 : 8.98% to 15.74% per annum) on the
balances outstanding.
The security and other agreements, negotiable instruments and documents to be executed by the
Company in favor of the bank shall be in the form and substance satisfactory to the bank. The
Company shall execute or cause to be executed all such instruments, deeds or documents, which
the bank may in its sole discretion require.
11.2 Out of the aggregate running finances availed by the Company, Rs. 7,510 million are secured by
joint pari passu charge.
11.3 Of the aggregate facility of Rs. 700 million (2020: Rs. 875 million) for opening letters of credit and Rs.
5 million (2020: Rs. 510 million) for guarantees, the amount utilized as at June 30, 2021 was Rs.
30.53 million (2020: Nil) and Rs. 2.99 million (2020: Rs. 296.99 million) respectively.
Note 2021 2020

12 Trade and other payables
Trade creditors 37,501 13,614

Accrued liabilities 13,436 24,896
Withholding tax payable 7,610 4,387
Workers' Profit Participation Fund 12.1 60,149 51,838
Workers' Welfare Fund 12.2 45,170 21,110
Security deposit payable 12.3 178 188
Payable against imports - 645
Sales tax payable - 31,633
Other payables 1,120 2,283
165,164 150,594
12.1 Movement in Workers' Profit Participation Fund is as follows:
Opening balance 51,838 27,580

Provision for the year 21.2 60,149 51,838
111,987 79,418
Payments made during the year (51,838) (27,580)
Closing balance 60,149 51,838
12.2 Movement in Workers' Welfare Fund is as follows:
Opening balance 21,110 375

12.2.1 This represents provision recognised as per 'The Punjab Workers' Welfare Fund Act 2019'. Under
the Act, the Company is liable to pay to Workers' Welfare Fund, a sum equal to two percent of its total
income, which is higher of, profit before taxation or provision for taxation as per accounts or the
declared income as per the return of income.
12.3 This represents advances and security deposits which are repayable on demand or on the
cancellation of agreement. These are utilized for the purpose of the business in accordance with the
terms of section 217 of the Act.
2021 2020
13 Accrued finance cost
Mark up on short term finances under mark up
arrangements - secured 16,365 50,868
Profit on short term arrangements permissible
under Shariah - secured 13,298 92,406
29,663 143,274
14 Contingencies and commitments
14.1 Contingencies
14.1.1 CPPA-G (formerly WAPDA) imposed Liquidated Damages (LDs) on the Company amounting to Rs.
353.85 million (June 30, 2020: Rs. 353.85 million) during the period from 2011 to 2013 because of
failure to dispatch electricity due to CPPA-G non-payment of dues on timely basis and
consequential inability of the Company to make advance payments to its fuel supplier - Pakistan
State Oil Company Limited (PSO), that resulted in inadequate level of electricity production owing to
shortage of fuel.
The Company disputed and rejected the claim on account of LDs because under the terms of PPA,
no LDs can be charged to the Company due to the reasons caused solely by the Power Purchaser
i.e. CPPA-G.
According to legal advisors of the Company, there are adequate grounds to defend the claim for
such LDs, therefore no provision has been made in these financial statements.
14.1.2 CPPA-G (formerly WAPDA) imposed LDs on the Company amounting to Rs 179.32 million (June 30,
2020: Rs 179.32 million) due to incorrect calculation from 2011 till April 2018. The Company has
disputed these LDs because CPPA-G has ignored certain factors applicable for the calculation of
LDs under the terms of the PPA.
For settlement of the dispute, several discussions were held between the officials of CPPA-G and the
Company. Consequent to the mutual discussion, CPPA-G has agreed to calculate the LDs using a
model consistent with the terms of the PPA. However, the said model has not yet been applied to
recalculate the LDs imposed prior to April 2018. Resultantly, there have been no disputed LDs since
May 2018.
Management is confident that the LDs imposed prior to April 2018 will also be revised by CPPA-G.
The impact of LDs calculated under the agreed model for the period preceding April 2018 has been
assessed to be insignificant and therefore, no provision has been made in these financial
statements.
14.1.3 A sales tax demand of Rs. 505.41 million was raised against the Company through order dated
August 29, 2014 by the Assistant Commissioner Inland Revenue ('ACIR') by disallowing input sales
tax for the tax periods from August, 2009 to June, 2013. Such amount was disallowed on the
grounds that the revenue derived by the Company on account of 'capacity purchase price' was
against a non-taxable supply and thus, the entire amount of input sales tax claimed by the Company
was required to be apportioned with only the input sales tax attributable to other revenue stream i.e.
'energy purchase price' admissible to the Company. Against the aforesaid order, the Company
preferred an appeal before the Commissioner Inland Revenue (Appeals) ('CIR(A)') who vide its
order dated November 6, 2014, upheld the ACIR's order on the issue regarding apportionment of
input sales tax with the caveat that tax demand pertaining to period of show cause notice beyond
the limitation of five years cannot be sustained and reduced from the tax demand. Subsequently,
the Company preferred an appeal before the Appellate Tribunal Inland Revenue ('ATIR').
Additionally, the Company had filed an application with the Lahore High Court seeking a stay in
recovery of tax arrears, default surcharge and penalty.
The Lahore High Court, in its order dated December 31, 2014, stayed the recovery of the tax
demand along with default surcharge and penalty till adjudication by the ATIR, subject to deposit of
Rs. 10 million with the Tax Department which the Company duly submitted on January 7, 2015. The
ATIR vide its order dated May 4, 2015, upheld the CIR(A)'s order on the issue regarding
apportionment of input sales tax. Thereafter, the Company filed an appeal against the decision of
ATIR in the Lahore High Court.
The Lahore High Court vide its judgment dated October 31, 2016 has decided the case in favor of
the Company. Subsequently, the tax department being aggrieved, filed a leave for appeal before the
Supreme Court of Pakistan. The management is of the view that there are meritorious grounds
available to defend the foregoing demands in the Supreme Court of Pakistan. Consequently, no
provision for such demand has been made in these financial statements.
14.1.4 A sales tax demand of Rs. 184.13 million was raised against the Company through order dated
August 27, 2019 mainly by the Deputy Commissioner Inland Revenue ('DCIR') on account of
inadmissible input tax related to 'capacity purchase price', sales tax default on account of
suppression of sales related to tax periods from July, 2015 to June, 2016 and inadmissible input tax
claimed by the Company. Against the aforesaid order, the Company preferred an appeal before
Commissioner Inland Revenue (Appeals) ('CIR(A)') on September 16, 2019. Out of Rs. 184.13
million, CIR(A) through order dated July 08, 2021 has deleted the demand of Rs. 152.95 million
raised on account of inadmissible input tax related to 'capacity purchase price', whereas the
remaining demand of Rs. 31.18 million raised related to sales tax default on account of suppression
of sales for the tax periods from July, 2015 to June, 2016 and inadmissible input tax claimed by the
Company have been remanded back to the DCIR.
14.1.5 The Company has issued the following guarantees in favor of:
(I) Central Power Purchasing Agency Guarantee Limited (CPPA-G) (formerly WAPDA) on account of
liquidated damages, in case the Company fails to make available electricity to CPPA-G on its
request, amounting to Nil (June 30, 2020: Rs. 294 million).
(ii) Sui Northern Gas Pipelines Limited on account of payment of dues against gas sales etc.,
amounting to Rs 2.99 million (June 30, 2020: Rs 2.99 million ).
14.2 Commitments
(I) Letters of credit / bank contracts other than capital expenditure as at end of current year are Rs 20.17
million (June 30, 2020: Nil)
(ii) Letters of credit / bank contracts for capital expenditure as at end of current year are Rs 10.36 million
(June 30, 2020: Nil).
Note 2021 2020

15 Property, plant and equipment
Operating fixed assets 15.1 2,764,406 3,129,907
Stores held for capitalization 15.2 53,246 83,666
Capital work in progress 15.3 24,034 -
2,841,686 3,213,573
15.1 Property, plant and equipment
52
Office Electric
Freehold Buildings on Plant and appliances and Laboratory appliances and Furniture and
land freehold land machinery equipment equipment equipment Computers fixtures Vehicles Total
Net carrying value basis (NBV)
Year ended June 30, 2021
Opening balance 93,209 148,453 2,834,873 520 1,907 6,326 1,164 39 43,416 3,129,907
Additions (at cost) - - 48,133 80 - 370 674 - 10,885 60,142
Disposals - - - (29) - - - - (10,018) (10,047)
Write-offs - - (929) - - - - - - (929)
Transfer out - - - - - - - - -
Depreciation charge - (21,310) (381,307) (158) (534) (1,613) (799) (10) (8,936) (414,667)
Closing balance 93,209 127,143 2,500,770 413 1,373 5,083 1,039 29 35,347 2,764,406
Gross carrying value basis

As at June 30, 2021
Cost 93,209 625,458 8,826,418 5,424 5,561 30,821 50,952 7,884 69,334 9,715,061
Accumulated depreciation - (498,315) (6,325,648) (5,011) (4,188) (25,738) (49,913) (7,855) (33,987) (6,950,655)
Net book value (NBV) 93,209 127,143 2,500,770 413 1,373 5,083 1,039 29 35,347 2,764,406
Depreciation rate per annum - 4% - 9% 4.5% - 33% 10% 10% 10% 33% 10% 20%
Net carrying value basis (NBV)

Opening balance 93,209 169,763 3,106,767 678 2,463 7,883 1,089 48 43,326 3,425,226
-
Additions (at cost) - - 118,166 - - 98 994 - 12,801 132,059
Disposals - - - - - - - - (3,943) (3,943)
Write-offs - - - - - - - - - -
Transfer out - - - - - - - - - -
Depreciation charge - (21,310) (390,060) (158) (556) (1,655) (919) (9) (8,768) (423,435)
Closing balance 93,209 148,453 2,834,873 520 1,907 6,326 1,164 39 43,416 3,129,907

As at June 30, 2020
Cost 93,209 625,458 8,787,576 5,418 5,561 30,451 50,539 7,884 75,892 9,681,988
Accumulated depreciation - (477,005) (5,952,703) (4,898) (3,654) (24,125) (49,375) (7,845) (32,476) (6,552,081)
Net book value (NBV) 93,209 148,453 2,834,873 520 1,907 6,326 1,164 39 43,416 3,129,907
Depreciation rate per annum - 4% - 9% 4.5% - 33% 10% 10% 10% 33% 10% 20%
15.1.1 The cost of fully depreciated assets which are still in use as at June 30, 2021 is Rs. 552.99 million (2020: Rs. 403.65 million).
15.1.2 The depreciation charge for the year has been allocated as follows:
Note 2021 2020
Cost of sales 24 406,967 415,302
Administrative expenses - depreciation on operating fixed assets 25 7,671 8,071
Community welfare expenses 29 62
414,667 423,435
Kohinoor Energy Limited | Annual Report 2021
15.1.3 Disposal of operating fixed assets
Disposal of property, plant and equipment of book value exceeding Rs 500,000
2021
Particulars of Accumulated
assets Sold to Cost depreciation Book value Sale proceeds Gain / (loss) Mode of disposal
Vehicles Employees
Kohinoor Energy Limited | Annual Report 2021
Mr. Rahmat Ullah 2,660 1,277 1,383 1,383 - Company Policy

Mr. Usman Saeed 2,248 1,079 1,169 1,169 - -do-
Mr. Abdul Rauf Khan 2,248 1,079 1,169 1,169 - -do-
Mr. Barkat Ali 1,143 321 822 823 1 -do-
Chief Executive Officer
Mr. S M Shakeel 9,143 ` 3,668 5,475 5,475 - -do-
Net book value of all other assets disposed off during the year was less than Rs.500,000 each.
15.2 This amount represents the mechanical store items including coupling flexible set and pieces of piston crown coated which are held for capitalization.
2021 2020
15.3 Capital work in progress (Rupees in thousand)
Plant and machinery 24,034 -
15.3.1 Movement in capital work in progress is as follows:
Opening balance - -
Additions during the year 24,034 -
Capitalized during the year - -
24,034 -
15.4 Immovable fixed assets of the Company are situated at Head Office, Post Office Raja Jang, near Tablighi Ijtima, Raiwind Bypass, Lahore, Pakistan. Freehold land represents
256 kanal of land situated at Post Office Raja Jang, near Tablighi Ijtima, Raiwind Bypass, Lahore out of which approximately 16 kanal represent covered area.
53
16 Intangible assets
Computer
Others Total
software
Net carrying value basis

Opening net book value (NBV) 3,205 389 3,594
Additions at cost - - -
Amortization charge (450) (56) (506)
Closing net book value (NBV) 2,755 333 3,088
As at June 30, 2021

Cost 22,117 1,000 23,117
Accumulated amortization (19,362) (667) (20,029)
Net book value (NBV) 2,755 333 3,088
Amortization rate per annum 6.25% - 8.82% 5.56%
Net carrying value basis

Opening net book value (NBV) 3,655 446 4,101
Additions at cost - - -
Amortization charge (450) (57) (507)
Closing net book value (NBV) 3,205 389 3,594
As at June 30, 2020

Cost 22,117 1,000 23,117
Accumulated amortization (18,912) (611) (19,523)
Net book value (NBV) 3,205 389 3,594
Amortization rate per annum 6.25% - 8.82% 5.56%
Note 2021 2020

16.1 The amortization charge for the year has been
allocated as follows:
Administrative expenses 25 506 507
16.2 The cost of fully amortized assets which are still in use as at June 30, 2021 is Rs. 16.50 million (2020:
Rs. 16.5 million).
Note 2021 2020

17 Long term loans and deposits
Loans to employees - considered good

- Executives 17.1 930 1,414
- Others 17.1 - 3,013
930 4,427
Current portion included in current assets
- Executives 17.1 (360) (484)
- Others 17.1 - (2,070)
(360) (2,554)
570 1,873
Security deposits 245 245
815 2,118
17.1 These represent interest free loans to executives and other employees for purchase of residential
plot, construction of house, purchase of motor cars etc. and are repayable in monthly instalments
over a period of 24 to 60 months. Loans for purchase of residential plots and construction of house
are secured against staff retirement benefits of employees. Loans for purchase of motor cars and
motorcycles are secured by registration of motor cars in the name of the Company.
2021 2020
17.2 Reconciliation of carrying amount of loans to executives

Disbursements - -
1,414 3,852
Repayments (484) (2,438)
Closing balance 930 1,414
17.3 The maximum amount outstanding at the end of any month from executives aggregated Rs.1.34
million (2020: Rs. 3.46 million).
Note 2021 2020

18 Stores, spares and loose tools
Stores 5,801 3,878

Spares 308,106 312,877
Loose tools 825 944
314,732 317,699
Provision for obsolete stores and spares 18.1 (14,138) (14,138)
300,594 303,561
Note 2021 2020

18.1 Provision for obsolete stores and spares

Provision / (reversal) for the year - -
19 Stock in trade
Furnace oil 751,136 41,520

Diesel 1,064 1,437
Lubricating oil 4,253 6,008
756,453 48,965
20 Trade debts - net
Trade receivables from CPPA-G secured

- Considered good 3,981,105 8,035,685
- Considered doubtful 430,517 430,517
20.1 4,411,622 8,466,202
Provision for impairment 20.2 (430,517) (430,517)
3,981,105 8,035,685
20.1 This includes an overdue amount of Rs. 2,709.18 million (2020: Rs. 6,847.65 million) receivable from
CPPA-G (formerly WAPDA). The trade debts are secured by a guarantee from the Government of
Pakistan (GoP) under the Implementation Agreement. These are in the normal course of business
and are interest free, however, a penal mark up at the rate of base rate plus 2% per annum is charged
in case the amounts are not paid within due dates, the base rate being the State Bank of Pakistan's
reverse repo rate. The penal mark up rate charged during the year was 10% (2020: 10% to 14.75%)
per annum. These include unbilled receivables aggregating to Rs 957.11 million (2020: Rs 1,383.48
million).
Note 2021 2020

20.2 Provision for impairment
Opening balance 20.3 430,517 430,517

Provision made during the year - -
Written-off during the year - -
20.3 This represents a receivable amount pertaining to eligibility of indexation of non-escalable

component (NEC) of the capacity purchase price relating to the period subsequent to the
repayment of foreign currency loan. This was disputed by CPPA-G (formerly WAPDA) in year ended
June 30, 2010 taking the stance that under the Power Purchase Agreement (PPA) indexation is
allowed until the repayment of foreign currency loan, and since the loan was fully repaid in
September, 2008, therefore no indexation was to be allowed from September, 2008 onwards. CPPA-
G had earlier paid this amount relating to the period from September, 2008 to September, 2009 but
subsequently withheld this amount in June, 2010 against the invoices of April, 2010.
The matter was referred to an expert by the management of the Company who decided in favor of
the Company stating that adjustment of the amount is unlawful since the underlying invoices were
not disputed within the prescribed period of 180 days. However, CPPA-G did not accept the
decision of the expert.
During the year 2019, the management of the Company decided not to pursue the recoverability of
this amount and a provision against the same was recorded.
Note 2021 2020

21 Loans, advances, deposits, prepayments
and other receivables
Current portion of long term loans to employees 17 360 2,554

Advances - considered good
- To employees 21.1 2,462 2,599
- To suppliers 303,389 355,111
Prepayments 15,002 4,485
Claims recoverable from CPPA-G for pass through items:
- Workers' Profit Participation Fund 21.2 111,985 79,416
- Workers' Welfare Fund 21.3 45,170 21,110
Sales tax receivable 49,908 -
Receivable from Gratuity Fund 21.5 8,290 -
Other receivables - considered good 264 902
536,830 466,177
21.1 Included in advances to employees are amounts due from executives of Rs. 1.27 million (2020: Rs.
1.63 million) for the purchase of supplies and consumables.
Note 2021 2020
21.2 Movement in Workers' Profit Participation Fund is as follows:
139,565 115,924
Receipts during the year (27,580) (36,508)
Closing balance 21.4 111,985 79,416
21.3 Movement in Workers' Welfare Fund is as follows:

Opening balance 21,110 375
21.4 Under section 14.2(a) of Part III of Schedule 6 to the Power Purchase Agreement (PPA) with CPPA-
G, payments to Workers' Profit Participation Fund and Workers' Welfare Fund are recoverable from
CPPA-G as pass through items.
21.5 This includes Rs. 2.5 million (2020: Nil) receivable from the Gratuity Fund on account of deduction of
loans to employees against settlement of the Gratuity Fund.
Note 2021 2020

22 Cash and bank balances
Balance at banks on:

Current accounts 249,902 200,914
Saving accounts
- Under interest / mark up arrangements 22.1 1,180,049 50,026
- Retention account - Onshore 11,363 -
- Under arrangements permissible under Shariah 22.1 350,241 50,005
1,541,653 100,031
1,791,555 300,945
Cash in hand 815 1,463
1,792,370 302,408
22.1 The balance in savings bank accounts bear mark up at rates ranging from 3.01% to 9.00% per
annum (2020: 5.0% to 11.25% per annum) and balance in accounts under arrangements
permissible under Shariah bear profit at the rates ranging from 2.75% to 6.75% per annum (2020:
3.76% to 6.25%).
2021 2020
23 Revenue from contract with customer
Energy purchase price 5,423,796 5,873,547

Less: Sales tax 788,095 852,770
4,635,701 5,020,777
Capacity purchase price 1,752,832 1,623,874

Interest on delayed payment 363,797 904,131
6,752,330 7,548,782
Note 2021 2020

24 Cost of sales
Raw material consumed 4,042,580 4,424,400

Salaries, wages and benefits 24.1 276,684 282,181
Stores and spares consumed 110,277 119,818
Depreciation on operating fixed assets 15.1 406,967 415,302
Fee and subscription 3,105 2,643
Insurance 69,136 72,987
Travelling, conveyance and entertainment 19,225 19,451
Repairs and maintenance 10,827 9,068
Communication charges 1,305 2,720
Electricity consumed in-house 26,498 22,860
Environmental expenses 760 622
Liquidated damages 51 181
Contracted services 13,960 17,307
Miscellaneous 1,902 2,342
4,983,277 5,391,882
24.1 Salaries, wages and other benefits
Salaries, wages and other benefits include following

in respect of gratuity:

Interest cost for the year 21,401 28,380
Expected return on plan assets (20,214) (27,636)
29,078 31,964
In addition to above, salaries, wages and other benefits included in cost of sales include Rs. 15.21
million (2020: Rs. 11.51 million) in respect of provision for accumulating compensated absences.
Note 2021 2020

25 Administrative expenses
Salaries, wages and benefits 25.1 168,841 177,053

Communication charges 1,940 1,935
Depreciation on operating fixed assets 15.1 7,671 8,071
Amortization on intangible assets 16.1 506 507
Insurance 4,389 2,845
Travelling, conveyance and entertainment 29,571 31,547
Repairs and maintenance 2,424 2,408
Legal and professional charges 25.2 6,630 11,368
Community welfare expenses 10,652 11,998
Rents, rates and taxes 8,211 3,196
Fee and subscription 21,285 4,498
Security expenses 9,758 9,674
Environmental expenses 9,794 9,412
Contracted services 9,310 10,967
Provision for impairment - -
Donations - 159
Miscellaneous 4,518 4,287
295,500 289,925
25.1 Salaries, wages and other benefits
Salaries, wages and other benefits include following

in respect of gratuity:
Interest cost for the year 13,117 17,394
Expected return on plan assets (12,389) (16,938)
17,822 19,590
In addition to above, salaries, wages and other benefits included in admin include Rs. 10.39 million
(2020: Rs. 7.05 million) in respect of provision for accumulating compensated absences.
Note 2021 2020

25.2 Legal and professional charges include the following:
In respect of auditors' services for:

- Statutory audit 1,759 1,675
- Half yearly review and certifications 981 607
- Out of pocket expenses 255 183
2,995 2,465
25.3 Employees of the Company 2021 2020
Total number of employees as at June 30 148 151
Average number of employees 150 152
26 Other income
Income on bank deposits 26.1 2,019 324

Gain on disposal of GoP Ijara Sukuks 26.2 7,425 -
Gain on disposal of Pakistan Investment Bonds (PIBs) 26.2 2,843 -
12,287 324
26.1 Income on bank deposits
Income on bank deposits under mark up arrangements 1,005 36

Income on bank deposits under arrangements permissible
under Shariah 1,014 288
2,019 324
26.2 This represents the gain arising on the sale of debt securities received as 1st tranche of 40% of the
outstanding receivables - Rs 4,974 million (i.e. Rs 1,989 million as the 1st tranche on June 04, 2021)
due from Power Purchaser as on November 30, 2020 equally in the form of cash, PIBs and GoP Ijara
Sukuks.
2021 2020
27 Finance cost
Mark up on short term finances - secured 280,034 828,731

Long term finances - secured 1,388 -
Bank guarantee and commission 1,171 1,119
Others 263 697
282,856 830,547
2021 2020
28 Taxation
Current
- For the year 3,563 94
- Prior year - -
3,563 94
28.1 Tax charge reconciliation
Profit before tax 1,202,984 1,036,752
Tax at applicable rate of 29% (2020: 29%) 348,865 300,658

Tax effect of exempt income referred to in note 6.1 (345,302) (300,564)
Tax charge 3,563 94
29 Cash generated from operations

Adjustment for:
- Depreciation on property, plant and equipment 414,667 423,435
- Amortization on intangible assets 506 507
- Loss on disposal of property, plant and equipment 16 -
- Income on bank deposits (2,019) (324)
- Charge for employee retirement benefits 72,496 70,114
- Property, plant and equipment written off 929 -
- Finance cost on borrowings 282,856 830,547
Profit before working capital changes 1,972,435 2,361,031
Effect on cash flow due to working capital changes:

- (Increase) / Decrease in stock in trade (707,488) 141,080
- Decrease in stores and spares 2,967 12,731
- Decrease / (Increase) in trade debts 4,054,580 (880,663)
- (Increase) in loans, advances, deposits,
prepayments and other receivables (70,653) (229,036)
- Increase in trade and other payables 14,570 96,727
3,293,976 (859,161)
5,266,411 1,501,870
2021 2020
30 Cash and cash equivalents
Cash and bank balances 1,792,370 302,408

Finances under mark up arrangements (3,790,152) (5,389,907)
(1,997,782) (5,087,499)
31 Remuneration of Chief Executive, Directors and Executives
31.1 The aggregate amount charged in the financial statements for the year for remuneration, including
certain benefits, to the Chief Executive, full time working directors including alternate directors and
executives of the Company is as follows:
Chief Executive Non-Executive Director Executives

2021 2020 2021 2020 2021 2020
Managerial remuneration and allowances 14,642 13,482 14,481 14,481 52,120 53,416
Housing 6,584 6,062 6,512 6,512 23,399 23,977
Utilities 1,463 1,347 1,447 1,447 5,200 5,328
Retirement benefits 2,374 2,374 - - 9,201 9,406
Medical expenses 65 248 - - 2,003 1,174
Bonus 2,335 6,842 - - 20,585 27,263
Club expenses 270 98 - - 508 551
Others 7,570 10,723 6,410 6,410 36,721 30,115
35,303 41,176 28,850 28,850 149,737 151,230
Number of persons 2 1 1 1 17 18
31.2 The Company also provides some of the Directors and Executives with free transport and
residential telephones.
31.3 No amount is charged in the financial statements for the year for fee to Directors (2020: Nil).
31.4 The Company has no Executive Director other than the Chief Executive Officer.
32 Transactions with related parties
The related parties comprise associated undertakings, other related companies, key management
personnel and post retirement benefit plan. The Company in the normal course of business carries
out transactions with various related parties. Amounts due from and to related parties are shown
under receivables and payables and remuneration of key management personnel is disclosed in
note 31. Other significant transactions with related parties are as follows:
2021 2020
Relation with undertaking Nature of transaction
Associated companies Purchase of services

97 1,417
Reimbursement of expenses
- 5
Purchase of goods
454 158
Dividend paid
- 122,010
Sale of goods
- -
Retirement benefit plan Dividend paid 3,885 777
Expense charged 46,900 51,554
Key management personnel Dividend paid 1,052,038 44,139
32.1 The names of related parties with whom the Company has entered into transactions or had
agreements / arrangements in place during the year and whose names have not been disclosed
elsewhere in these financial statements are as follows:
Name of the related party Basis of relationship Percentage of

shareholding
Red Communication Arts (Private) Limited Common directorship -

Pak Elektron Limited Common directorship -
Kohinoor Energy Limited Employees Gratuity Fund Common control -
All transactions with related parties are carried out on mutually agreed terms and conditions.
32.2 There was no related party incorporated outside the Pakistan with whom the company had entered
into transactions.
2021 2020
MWh
33 Capacity and production
Installed capacity (Based on 8,760 hours) 1,086,240 1,086,240

Actual energy delivered 337,122 363,856
Under utilization of available capacity is due to less demand by CPPA-G.
34 Financial risk management
34.1 Financial risk factors
The Company's activities expose it to a variety of financial risks: market risk (including currency risk,
other price risk and interest rate risk), credit risk and liquidity risk. The Company's overall risk
management programme focuses on the unpredictability of financial markets and seeks to
minimize potential adverse effects on the financial performance. The Board of Directors (the Board)
exercises oversight of the Company's risk management programme.
Risk management is carried out by the finance department under the principles and policies
approved by the Board. The Board provides principles for overall risk management, as well as
policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk and
investment of excess liquidity. All treasury related transactions are carried out within the parameters
of these policies. The finance department prepares monthly and quarterly management accounts.
Quarterly management accounts are scrutinized by the Board and variances from the budgets are
investigated. Quantitative and qualitative analyses are carried out to measure risk exposures and to
develop strategies for managing these risks. These analyses include ratio analysis and trend
analysis over financial and non-financial measures of performance.
a) Market risk
i) Currency risk
Currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate
because of changes in foreign exchange rates. Currency risk arises mainly from future commercial
transactions or receivables and payables that exist due to transactions in foreign currencies.
Currently, the Company's foreign exchange risk exposure is restricted to the amounts receivable /
payable from / to the foreign entities. At the reporting date, no amounts were receivable from the
foreign entities. The Company's exposure to currency risk is as follows:
2021 2020
(Euro)
Trade and other payables 55,555 2,254
The following significant exchange rates were applied during the year:
Rupees per Euro 2021 2020
Average rate 187.94 187.38

Reporting date rate 187.27 188.61
If the functional currency, at reporting date, had fluctuated by 5% against the Euro with all other
variables held constant, the impact on profit after taxation for the year would have Rs. 0.52 million
(2020: Rs. 0.02 million). Currency risk sensitivity to foreign exchange movements has been
calculated on a symmetric basis.
ii) Other price risk
Other price risk represents the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices (other than those arising from interest rate risk or
currency risk), whether those changes are caused by factors specific to the individual financial
instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The
Company is not exposed to any significant equity price risk since there are no investments in equity
securities. The Company is also not exposed to commodity price risk since it has a diverse portfolio
of commodity suppliers.
iii) Interest rate risk
Interest rate risk represents the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates.
The Company has no significant long-term interest-bearing assets. The Company's interest rate risk
arises from short term and long term borrowings. Borrowings obtained at variable rates expose the
Company to cash flow interest rate risk.
At the reporting date, the interest rate profile of the Company's interest bearing financial instruments
was:
2021 2020
Fixed rate instruments
Financial assets
Bank balances - savings accounts 1,541,653 100,031
Financial liabilities
Long term Finance-secured (81,688) -
Net exposure 1,459,965 100,031
Floating rate instruments
Financial assets
Trade debts - overdue 3,139,696 7,278,170
Financial liabilities
Finances under mark up arrangements - secured (3,790,152) (5,389,907)
Net exposure (650,456) 1,888,263
Fair value sensitivity analysis for fixed rate instruments
The Company does not account for any fixed rate financial assets and liabilities at fair value through
profit or loss. Therefore, a change in interest rate at the reporting date would not affect profit or loss
of the Company.
Cash flow sensitivity analysis for variable rate instruments
If interest rates on finances under mark up arrangements, at the year end date, fluctuate by 1%
higher / lower with all other variables held constant, profit before tax would have been Rs. 38.26
million (2020: Rs. 73.59 million) higher / lower, mainly as a result of higher / lower interest expense
on floating rate finances.
b) Credit risk
Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the
other party by failing to discharge an obligation. Credit risk arises from deposits with banks and
other receivables.
i) Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk at the reporting date was as follows:
2021 2020
Long term loans and deposits 815 2,118

Trade debts 3,981,105 8,035,685
Loans, advances, deposits, prepayments and other receivables 157,779 103,982
Balances with banks 1,791,555 300,945
5,931,254 8,442,730
The credit risk on liquid funds is limited because the counter parties are banks with reasonably high
credit ratings. The Company believes that it is not exposed to major concentration of credit risk and
the risk attributable to trade debts and Workers' Welfare Fund and Worker's Profit Participation Fund
receivable from Power Purchaser is mitigated by guarantee from the Government of Pakistan under
the Implementation Agreement. Age analysis of trade receivable balances is as follows:
2021 2020
The age of trade debts as at reporting date is as follows:
- Not past due 1,271,926 1,383,482
- Past due 0 - 180 days 2,708,834 2,687,516
- Past due 181 - 365 days - 2,246,784
- 1 - 2 years 345 960,388
- More than 2 years 430,517 1,188,032
4,411,622 8,466,202
The movement in provision for impairment of

receivables is as follows:
Provision made during the year - -
Written-off during the year - -
ii) Credit quality of major financial assets
The credit quality of major financial assets that are neither past due nor impaired can be assessed
by reference to external credit ratings (if available) or to historical information about counterparty
default rate:
Short Long Rating 2021 2020

Term Term Agency (Rupees in thousand)
Trade debts
CPPA-G Not available 3,981,105 8,035,685
Other receivables
CPPA-G Not available 157,155 100,526
Banks
Bank Alfalah Limited A1+ AA+ PACRA - -
Standard Chartered Bank
(Pakistan) Limited A1+ AAA PACRA 248,541 1
Askari Bank Limited A1+ AA+ PACRA 300,046 50,008
Habib Bank Limited A-1+ AAA JCR-VIS 61,583 50,825
AlBaraka Bank (Pakistan) Limited A1 A PACRA 100,021 -
United Bank Limited A-1+ AAA JCR-VIS 14 -
National Bank of Pakistan A1+ AAA PACRA 3 24
Faysal Bank Limited A1+ AA PACRA 880,955 69
BankIslami Pakistan Limited A1 A+ PACRA 200,102 200,004
Dubai Islamic Bank Pakistan Limited A-1+ AA JCR-VIS 222 14
MCB Bank Limited A1+ AAA PACRA - -
Meezan Bank Limited A-1+ AAA JCR-VIS 68 -
5,929,815 8,437,156
After giving due consideration to the strong financial standing of the banks and Government
guarantee in case of CPPA-G, management does not expect non-performance by these counter
parties on their obligations to the Company. Accordingly, the credit risk is minimal.
c) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities.
The Company manages liquidity risk by maintaining sufficient cash and the availability of funding
through an adequate amount of committed credit facilities. At June 30, 2021, the Company had Rs.
7,510 million (2020: Rs. 9,480 million) available borrowing limits from financial institutions and
Rs.1,792.37 million (2020: Rs. 302.41 million) cash and bank balances.
The following are the contractual maturities of financial liabilities as at June 30, 2021:
Contractual Cashflows
Carrying Less than One to five More than

Total
amount one year years five years
Long term finance - secured 81,688 82,319 53,758 28,561 -

Finances under mark up
arrangements 3,790,152 3,790,152 3,790,152 - -
Trade and other payables 59,845 59,845 59,845 - -
Accrued finance cost 29,663 29,663 29,663 - -
Unclaimed dividend 10,616 10,616 10,616 - -
3,971,964 3,972,595 3,944,034 28,561 -
The following are the contractual maturities of financial liabilities as at June 30, 2020:
Contractual Cashflows
Carrying Total Less than One to five More than
amount one year years five years
Long term finance - secured - - - -

Finances under mark up
arrangements 5,389,907 5,389,907 5,389,907 - -
Trade and other payables 77,646 77,646 77,646 - -
Accrued finance cost 143,274 143,274 143,274 - -
Unclaimed dividend 10,228 10,228 10,228 - -
5,621,055 5,621,055 5,621,055 - -
34.2 Fair values of financial assets and liabilities
The carrying values of all financial assets and liabilities reflected in the financial statements
approximate their fair values. Fair value is determined on the basis of objective evidence at each
reporting date.
34.3 Financial instruments by categories
At fair value through

profit and loss Amortised cost Total
2021 2020 2021 2020 2021 2020

Assets as per statement of financial position
Long term loans

and deposits - - 815 2,118 815 2,118
Trade debts - - 3,981,105 8,035,685 3,981,105 8,035,685
Loans, advances,
deposits, prepayments -
and other -
receivables - - 157,779 3,456 157,779 3,456
Cash and bank -
balances - - 1,791,555 300,945 1,791,555 300,945
- - 5,931,254 8,342,204 5,931,254 8,342,204
Financial liabilities at
amortised cost
2021 2020
Financial liabilities as per statement of financial position
Long term finance - secured 27,930 -

Short term finances 3,790,152 5,389,907
Current portion of long term finance- secured 53,758 -
Trade and other payables 59,845 77,646
Accrued finance cost 29,663 143,274
Unclaimed dividend 10,616 10,228
3,971,964 5,621,055
34.4 Capital risk management
The Company's objectives when managing capital are to safeguard the Company's ability to
continue as a going concern in order to provide returns for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to
maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders through repurchase of shares, issue new shares or sell
assets to reduce debt. Consistent with others in the industry and the requirements of the lenders,
the Company monitors the capital structure on the basis of the gearing ratio. This ratio is calculated
as net debt divided by total capital. Net debt is calculated as total borrowings including current and
non-current borrowings, less cash and bank balances as disclosed in note 22. Total capital is
calculated as 'equity' as shown in the statement of financial position plus net debt.
The gearing ratio as at June 30, 2021 and June 30, 2020 is as follows:
Note 2021 2020

Long term finance - secured 8 82,319 -

Short term borrowings 11 3,790,152 5,389,907
Cash and bank balances 22 (1,792,370) (302,408)
Net debt 2,080,101 5,087,499
Total equity 6,072,699 6,542,591
Total capital 8,152,800 11,630,090
Gearing ratio % 25.5% 43.7%
35 Earnings per share
35.1 Basic earnings per share 2021 2020
Net profit for the year Rupees in thousand 1,199,421 1,036,658

Weighted average number of ordinary shares Number in thousand 169,459 169,459
Earnings per share Rupees 7.08 6.12
35.2 Diluted earnings per share
A diluted earnings per share has not been presented as the Company does not have any
convertible instruments in issue as at June 30, 2021 and June 30, 2020 which would have any effect
on the earnings per share if the option to convert is exercised.
36 Date of authorization for issue
These financial statements were authorized for issue on September 23, 2021 by the Board of
Directors of the Company.
37 Subsequent events
37.1 The Board of Directors have resolved to introduce a defined contribution plan (contributory
provident fund) for all its permanent employees with effect from July 01, 2021 through its resolution
dated August 09, 2021 in lieu of the dissolved defined benefit gratuity scheme.
As per the resolution, 10% of the monthly basic salary of permanent employee(s) will be deducted
and by contributing the same amount by the Company be credited to the employees individual
account at the contributory provident fund on monthly basis. A Board of Trustees has been
constituted to administer the Fund.
Approval of relevant authorities for establishment / registration of the contributory provident fund
are in process.
37.2 The Board of Directors have proposed an interim dividend for the period ended August 31, 2021 of
Rs. 5.25 (2020: Nil) per share, amounting to Rs. 889,658 thousands (2020: Nil) at their meeting held
on September 03, 2021.
38 Corresponding figures
Corresponding figures where necessary, have been rearranged for the purposes of comparison.
No significant rearrangement or reclassification has been made during the year ended June 30,
2021.
39 General
Figures have been rounded off to the nearest thousand of Rupees unless otherwise specified.

PATTERN OF SHAREHOLDING
AS AT JUNE 30, 2021
No. of Sharehodling Total

Shareholding From To Shares Held
159 1 100 3,750
243 101 500 99,137
236 501 1,000 220,602
471 1,001 5,000 1,425,821
180 5,001 10,000 1,450,968
50 10,001 15,000 640,463
40 15,001 20,000 733,475
25 20,001 25,000 568,673
30 25,001 30,000 839,450
4 30,001 35,000 131,150
12 35,001 40,000 458,094
5 40,001 45,000 221,500
11 45,001 50,000 543,500
4 50,001 55,000 209,000
4 55,001 60,000 236,250
3 60,001 65,000 192,000
4 65,001 70,000 269,500
2 70,001 75,000 147,000
1 75,001 80,000 80,000
4 80,001 85,000 328,000
13 95,001 100,000 1,292,500
2 100,001 105,000 205,007
1 125,001 130,000 129,000
2 135,001 140,000 276,000
2 145,001 150,000 296,500
1 155,001 160,000 160,000
2 195,001 200,000 400,000
1 205,001 210,000 205,500
1 210,001 215,000 214,000
1 230,001 235,000 231,500
2 275,001 280,000 556,269
1 290,001 295,000 295,000
1 295,001 300,000 300,000
1 320,001 325,000 325,000
1 345,001 350,000 350,000
1 350,001 355,000 351,000
1 465,001 470,000 466,631
2 495,001 500,000 1,000,000
1 525,001 530,000 530,000
2 650,001 655,000 1,306,757
1 1,045,001 1,050,000 1,050,000
1 1,175,001 1,180,000 1,175,895
1 1,495,001 1,500,000 1,500,000
1 1,695,001 1,700,000 1,700,000
1 1,800,001 1,805,000 1,800,392
1 2,565,001 2,570,000 2,570,000
1 3,385,001 3,390,000 3,389,171
1 5,695,001 5,700,000 5,700,000
No. of Sharehodling Total

Shareholding From To Shares Held
1 5,795,001 5,800,000 5,800,000
1 6,255,001 6,260,000 6,258,433
1 7,900,001 7,905,000 7,902,999
1 9,350,001 9,355,000 9,354,631
1 10,135,001 10,140,000 10,135,351
1 12,345,001 12,350,000 12,349,600
1 14,125,001 14,130,000 14,126,621
1 20,855,001 20,860,000 20,856,445
1 21,560,001 21,565,000 21,562,988
1 24,535,001 24,540,000 24,537,091
1,545 169,458,614
Categories of Shareholders Shares Held Percentage
Directors, Chief Executive Officer, 58,600,950 34.5813

and their spouse and minor childern
Associated Companies, undertakings and related parties. 46,566,710 27.4797
(Parent Company)
NIT and ICP 651,757 0.3846
Banks Development Financial Institutions, Non Banking 10,148,758 5.9889

Financial Institutions.
Insurance Companies 358,269 0.2114
Modarabas and Mutual Funds 49,000 0.0289
Shareholders holding 10% or more 90,437,776 53.3687
General Public
a. Local 44,866,790 26.4765
b. Foreign 40,000 0.0236
Others (to be specified)

1- Investment Companies 1,050,187 0.6197
2- Pension Funds 24,282 0.0143
3- Others Companies 1,377,502 0.8129
4- Joint Stock Companies 2,324,858 1.3719
5- Foreign Companies 3,399,551 2.0061
CATEGORIES OF SHAREHOLDING REQUIRED UNDER

CODE OF CORPORATE GOVERNANCE (CCG)
AS AT JUNE 30, 2021
No. of Shares
Sr. No. Name Percentage
Held
Associated Companies, Undertakings and Related Parties (Name Wise):
1 MRS. AMBER HAROON SAIGOL W/O M. AZAM SAIGOL 46,100,079 27.2043
2 MR. M. AZAM SAIGOL (CDC) 466,631 0.2754
Mutual Funds (Name Wise Detail) - -

Directors, CEO and their Spouse and Minor Children (Name Wise):
1 MR. M. NASEEM SAIGOL (CDC) 14,126,621 8.3363
2 MR. M. NASEEM SAIGOL (PHYSICAL) 9,354,631 5.5203
3 MRS. SEHYR SAIGOL W/O MR. M. NASEEM SAIGOL (CDC) 7,902,999 4.6637
4 MR. MUHAMMAD MURAD SAIGOL 20,856,445 12.3077
5 MR. FAISAL RIAZ 500 0.0003
6 MR. MUHAMMAD ZEID YOUSUF SAIGOL 6,258,433 3.6932
7 MRS. SADAF KASHIF 500 0.0003
8 MR. MUHAMMAD OMER FAROOQ (CDC) 100,321 0.0592
9 SYED MANZAR HASSAN (CDC) 500 0.0003
Executives: 179,075 0.1056
Public Sector Companies & Corporations: - -
Banks, Development Finance Institutions, Non Banking Finance 10,580,309 6.2436

Companies, Insurance Companies, Takaful, Modarabas and Pension Funds:
Shareholders holding five percent or more voting intrest in the listed company (Name Wise)
S. No. Name Holding % AGE
1 MRS. AMBER HAROON SAIGOL W/O M. AZAM SAIGOL 46,100,079 27.2043

2 MR. M. NASEEM SAIGOL (CDC) 23,481,252 13.8566
3 MR. MUHAMMAD MURAD SAIGOL 20,856,445 12.3077
4 MST. ATIQA BEGUM (CDC) 12,355,600 7.2912
5 NATIONAL BANK OF PAKISTAN. (CDC) 10,135,500 5.9811
All trades in the shares of the listed company, carried out by its Directors, Sponsors, CEO, CFO,
Company Secretary, Executives and their spouses and minor children:
S. No. NAME SALE PURCHASE
1 MR. M. NASEEM SAIGOL - 9,354,631

2 MR. MUHAMMAD MURAD SAIGOL - 20,856,445
3 MR. MUHAMMAD ZEID YOUSUF SAIGOL 500 6,258,433
4 MRS. AMBER HAROON SAIGOL W/O M. AZAM SAIGOL - 24,537,091
5 MRS. SADAF KASHIF - 500
6 MR. MUHAMMAD OMER FAROOQ (CDC) - 100,000
7 SYED MANZAR HASSAN (CDC) - 500
8 EXECUTIVES - 142,500
PROXY FORM
Ledger Folio/CDC A/C No. Shares Held
I/We _______________________________________________________________________________________
of __________________________________ being member(s) of Kohinoor Energy Limited
hereby appoint_______________________________________________________________________________
of _________________________________ or failing him _____________________________________________
of __________________________________ as my/our Proxy in my/our absence to attend and vote for me/us
and on my/our behalf at the 28th Annual General Meeting of the Company to be held on October 26, 2021
(Tuesday) at 13:00 at Islamabad Club, Main Murree Road, Islamabad and/or at any adjournment thereof.
As witness my/our hand(s) this _____________________________ day of _________________________ 2021
signed by ____________________________________________________________________________________
in the presence of _____________________________________________________________________________
Signed by the Said
Witness: Witness:
Name Name Revenue
Stamps
CNIC No. CNIC No. Rs. 5/-
Address Address
Notes:
A member entitled to attend and vote at this meeting may appoint a proxy. Proxies, in order to be effective,
must be received at Head Office/Shares Department of the Company situated at plant site Near Tablighi
Ijtima, Raiwind Bypass, Lahore not less than forty-eight hours before the time for holding the meeting and
must be duly stamped, signed and witnessed.
For CDC Account Holders/Corporate Entities
In addition to the above, the following requirements be met:
(i) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be provided with
the proxy form.
(ii) In case of a corporate entity, the Board of Directors resolution/power of attorney with specimen
signature shall be submitted (unless it has been provided earlier) alongwith proxy form to the
Company.
(iii) The proxy shall produce his original CNIC or original passport at the time of attending the meeting.
“ SAY NO TO CORRUPTION”
Contribution to Social Welfare www.kel.com.pk

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2021

NOTICE OF ANNUAL GENERAL MEETING 03

REVIEW REPORT TO THE MEMBERS 24

AUDITOR'S REPORT TO THE MEMBERS 25

STATEMENT OF FINANCIAL POSITION 30

STATEMENT PROFIT OR LOSS ACCOUNT AND OTHER COMPREHENSIVE INCOME 32

STATEMENT OF CASH FLOWS 33

STATEMENT OF CHANGES IN EQUITY 34

NOTES TO AND FORMING PART 35

Audit Committee Project/Head Office

HR & Remuneration Committee Shares Registrar

Auditors Company NTN

NOTICE OF ANNUAL GENERAL MEETING

NOTICE OF ANNUAL GENERAL MEETING

Rupees in Thousand 2021 2020

Profit before taxation 1,202,984 1,036,752

Attendance Ÿ The Board as required by CCG for reporting on

the vicinity area of the power plant. A competent

HUMAN RESOURCE MANAGEMENT

CORPORATE SOCIAL RESPONSIBILITY (CSR)

DISPATCH LEVEL (%) 31.04% 33.41% 35.67% 59.42% 72.93% 78.12%

REVENUE (Rs. 000)

PROFITABILITY (Rs. 000)

FINANCIAL POSITION (Rs. 000)

REPRESENTED BY (Rs. 000)

DIVIDEND PER SHARE 10.00 2.00 4.00 4.50 5.00 5.50

Dispatch Percentage Turnover (Rupees in Million)

Shareholding Equity (Rupees in Million) Earning Per Share (Rupees)

Working Capital Analysis (Rupees in Million) Share Price (Rupees)

3,500 3,323 3,256 45.00 43.07

Executive Directors Non-Executive Directors

Mr. Muhammad Zeid Yousaf Saigol Mr. M. Naseem Saigol

Independent Director Female Director

Mr. Muhammad Omer Farooq Ms. Sadaf Kashif

HR and Remuneration Committee

For the behalf of the Board

Lahore: M. Zeid Yousuf Saigol Syed Manzar Hassan

INDEPENDENT AUDITOR'S REVIEW REPORT

A. F. Ferguson & Co.

INDEPENDENT AUDITOR'S REPORT

1. Amendment to the Power Purchase Our audit procedures, amongst others,

2. Dissolution of approved funded defined Our audit procedures, amongst others,

Auditor's Responsibilities for the Audit of the Financial Statements

Report on Other Legal and Regulatory Requirements

A. F. Ferguson & Co.

STATEMENT OF FINANCIAL POSITION

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized share capital

Issued, subscribed and paid up capital

Employee benefits 10 - 82,405

CONTINGENCIES AND COMMITMENTS 14 - -

The annexed notes 1 to 39 form an integral part of these financial statements.

Chief Executive Officer Director

AS AT JUNE 30, 2021

Property, plant and equipment 15 2,841,686 3,213,573

Stores, spares and loose tools 18 300,594 303,561

Chief Financial Officer

STATEMENT OF PROFIT OR LOSS AND OTHER

Revenue from contract with customer 23 6,752,330 7,548,782