Kapco Ar 2021

CONTENTS
04 06 09 09 10
Key Figures Company Vision Mission Notice of 25th Annual
Information General Meeting
14 16 22 24 26
Profile of the Board of Code of Operational Whistle Blowing Board
Directors Conduct Highlights Policy Committees
29 31 39 40 42
Chairman’s Review Directors’ Report Directors’ Report Key Operating and Pattern of
(Urdu) Financial Data shareholding
45 46 48 52 53
Categories of Pattern of Corporates Holding Highlights Organizational
shareholders shareholding Additional 10,000 Shares and Structure
Information Above
56 58 61 62
Executive & Statement of Independent Auditor’s Independent
Management Compliance with Review Report to Auditor’s Report to
Committees Listed companies the Members of Kot the members of Kot
Addu Power Company Addu Power Company
Limited Limited
Review Report on
the Statement of Report on the Audit
Compliance contained of the Financial
in Listed Companies Statements
(Code of Corporate
Governance)
Regulations, 2019
FINANCIALS
68 70 71 72 73
Statement of Financial Statement of Profit or Statement of Statement of Changes Statement of Cash
Position Loss Account Comprehensive in Equity Flows
Income
74 125 127
Notes to the Financial Proxy Form (English) Proxy Form (Urdu)
Statements
Years of 01
Excellence
• The Company has successfully completed Twenty-Five Years since its Privatisation in
June 1996. The Company is a success story of public-private partnership.
• The Provisional Listing of the Company on the Stock Exchange took place on February
14, 2005 and was followed by Formal Listing on April 18, 2005.
• This has been an eventful year for the Company. The Company settled its LDs Arbitration
Years of dispute with its Power Purchaser. Following settlement, the term of the Company’s
Power Purchase Agreement has been extended from June 27, 2021 to October 24,
Excellence
2022. As part of the settlement, the Company received the first installment of 40% of
receivables at the cut-off date of November 30, 2020 amounting to Rs. 39.601 Billion
from the Power Purchaser in the form of one-third cash, one-third Government Ijara
Sukuk, and one-third Pakistan Investment Bonds.
KEY FIGURES
Gross Profit Turnover
RS. 5,251 RS. 50,349

MILLION MILLION
Profit after Tax Earnings per Share
RS. 10,229 RS. 11.62

MILLION
The Company has over the last Twenty-Five years provided a good
return to shareholders in the form of cash dividend of Rs. 136,697
million.
The Company arranged USD 45 Million KIBOR to LIBOR SWAPs in

Pakistan in 2011.
Issuance of first Short Term Islamic Sukuk in Power Sector of Pakistan

for Rs 1.5 Billion in June 2011. This transaction was awarded as highly
commended Islamic deal in Pakistan by Triple A Asset Asia.
KAPCO was awarded “Partner in Excellence Award” by FBR in 2006.
The Company is the only IPP in Pakistan whose business income has
been taxable since July 2006; and is amongst the top tax payers of the
Country ranking at number 13 on the ‘Top Tax Payers List’ under Prime
Minister’s Tax Privileges and Honour Card Scheme.
04 Annual Report 2021 Years of 05

Excellence
COMPANY
INFORMATION
Board of Directors LDs Committee Internal Auditors Share Registrar
Lt. General Muzammil Hussain (Retd.) Mr. Aqeel Ahmed Nasir EY Ford Rhodes THK Associates (Private) Limited
(Chairman) (Chairman) Chartered Accountants Plot No. 32-C, Jami Commercial
Mr. Aftab Mahmood Butt Mr. Aftab Mahmood Butt Street 2, Phase-VII, DHA
Karachi 75500, Pakistan
(Chief Executive)
Mr. Saad Iqbal Legal Advisor Tel: +92 (0)21 111 000 322
Mr. Aqeel Ahmed Nasir
Cornelius, Lane & Mufti Fax: +92 (0)21 35310190
Mr. Hafiz Muhammad Yousaf
Special Committee Advocates & Solicitors
Mr. Naveed Asghar Chaudhry Registered Office

Mr. Naveed Asghar Chaudhry
(Chairman) Banks Office No. 309, 3rd Floor, Evacuee Trust Complex
Mr. Saad Iqbal
Mr. Aftab Mahmood Butt Conventional Agha Khan Road, F-5/1, Islamabad, Pakistan
Mr. Jamil Akhtar
Ms. Zunaira Azhar
Allied Bank Limited
Askari Bank Limited
Corporate Office
Bank Al-Habib Limited 5 B/3, Gulberg III
Audit Committee GM Finance / CFO Habib Bank Limited Lahore 54660, Pakistan
Habib Metropolitan Bank Limited Tel: +92 (0)42 3577 2912-6
Mr. Hafiz Muhammad Yousaf Mr. Muhammad Rabnawaz Anjum MCB Bank Limited Fax: +92 (0)42 3577 2922
(Chairman) National Bank of Pakistan
Mr. Naveed Asghar Chaudhry Samba Bank Limited
Standard Chartered Bank (Pakistan) Limited Power Project
Mr. Saad Iqbal GM Legal / Company Secretary United Bank Limited
Kot Addu Power Complex, Kot Addu
Mr. Jamil Akhtar Mr. A. Anthony Rath District Muzaffargarh, Punjab, Pakistan
Islamic
Tel: +92 (0)66 230 1047-9
AlBaraka Bank (Pakistan) Limited Fax: +92 (0)66 230 1025
HR Committee Head of Internal Audit Askari Bank Limited-IBD

Bank Alfalah Limited [email protected]
Mr. Sikandar Usmani BankIslami Pakistan Limited www.kapco.com.pk
(Chairman) Dubai Islamic Bank Pakistan Limited
Faysal Bank Limited
Mr. Aftab Mahmood Butt External Auditors Meezan Bank Limited
Mr. Naveed Asghar Chaudhry National Bank of Pakistan-IBD
A. F. Ferguson & Co.
Standard Chartered Bank (Pakistan) Limited-IBD
Chartered Accountants
The Bank of Punjab - IBD

Excellence
VISION
To be a leading power generation company, driven to exceed our
shareholders’ expectations and meet our customer’s requirements
MISSION
• To be a responsible corporate citizen
• To maximise shareholders’ return
• To provide reliable and economical power for our customer
• To excel in all aspects relating to safety, quality and environment
• To create a work environment which fosters pride, job satisfaction and
equal opportunity for career growth for the employees

Excellence
NOTICE OF Notice is hereby given that the 25th Annual
General Meeting of Kot Addu Power
Ordinary Business
25TH ANNUAL Company Limited (“Company”) will be held 1. To confirm the Minutes of the Eleventh Extraordinary General Meeting of the Company held on October 2, 2021.
at the Islamabad Serena Hotel, Khayban-e- 2. To receive, consider and adopt the Annual Audited Accounts of the Company for the year ended June 30, 2021 together
GENERAL Suhrawardy, Islamabad and through video

link (as requested) on Friday, October 22,
with Directors’ and Auditor’s Reports thereon.
MEETING
3. To approve the final cash dividend of Rs. 3.50 per share, that is, 35% for the year ended June 30, 2021 as recommended
2021 at 10.00 a.m. to transact the following by the Board of Directors. This is in addition to the interim dividend of Rs. 6.50 per share, that is, 65% already paid making
business: a total cash dividend of Rs. 10.00 per share, that is, 100% during the year.
4. To appoint Auditors and fix their remuneration for the year ending June 30, 2021. The present Auditors, Messrs. A. F.
Ferguson & Co., Chartered Accountants being eligible, offer themselves for reappointment.
5. To transact any other business with the permission of the Chairman.
By Order of the Board
Lahore A. Anthony Rath

August 17, 2021 Company Secretary

Excellence
Notes Video Conference Facility and Attendance In order to receive dividends directly into
accounts, Members are requested to fill in Dividend
bank In case of joint accounts, FBR has clarified that
withholding tax will be determined separately on
5. Due to the prevailing situation caused by Covid-19
Closure of Share Transfer Books pandemic, SECP has instructed listed companies Mandate Request Form available at Company’s ‘Active/Non-Active’ status of principal shareholders
to modify their usual planning for general meetings. website www.kapco.com.pk and to send the same as well as joint- holder(s) based on their shareholding
1. The share transfer books of the Company will remain
Accordingly, Members may attend the Meeting virtually. duly signed alongwith copy of CNIC to the Company’s proportions. Shareholders holding shares jointly are
closed from October 15, 2021 to October 22, 2021 (both
To attend the Meeting virtually, a Member is required Share Registrar, in case of physical shares. In case the advised to provide shareholding proportions of principal
days inclusive). Transfers received in order at the office
to send an email to [email protected] shares are held on the CDS, the Form required to be shareholder and joint-holder(s) in respect of shares held
of the Company’s Share Registrar, THK Associates
with email address, name, folio number, CNIC Number submitted directly to the Member’s broker/participant/ by them, if not already provided, at the earliest to the
(Private) Limited at the close of business on October 14,
and number of shares held in his/her name with subject CDC Account Services. Share Registrar on the following format, otherwise it will
2021 will be treated in time for the purposes of payment
“Registration for 25th AGM of KAPCO”. A video link to In case of non-compliance, the Company will be be assumed that share are held in equal proportion:
of the final cash dividend (subject to approval of the
Shareholders) and to attend and vote at the Meeting. join the Meeting will be shared with Members whose constrained to withhold payment of dividend to such Company Folio/CDS Total Principal Shareholder Joint Shareholders
Name Accounts Shares
emails, containing all the required particulars, are Member. Number
Appointment of Proxy received not later than 48 (forty-eight) hours before the Name & Shareholding Name & Shareholding
time of the Meeting. Conversion of Physical Shares into CDS CNIC propotions CNIC propotions
1. A Member entitled to attend and vote at the Meeting is (No of
Shares)
(No of
Shares)
entitled to appoint a proxy to attend and vote on his/her Members attending the Meeting in person will be 3. In compliance with the requirements of Section 72 of the
behalf, provided such proxy is also a Member. required to comply with SoPs protocols/guidelines for Companies Act, every existing listed company shall be In another clarification by FBR, valid tax exemption
their own and others safety. required to replace his/her physical shares with book- certificate for claim of exemption under section 150, 151
2. An instrument of proxy and the Power of Attorney or
Change of Address entry form in a manner as may be specified and from the and 233 of the Income Tax Ordinance, 2001 is required
other authority (if any) under which it is signed, or a
date notified by the SECP, within a period not exceeding where statutory exemption under clause 47B of Part-IV
Notary Public certified copy of such Power of Attorney, in 6. Members are requested to immediately notify change four years from the commencement of the Companies of the Second Schedule is available. Such certificate
order to be valid, must be deposited with the Company’s of address to the Company’s Share Registrar at the Act, that is, May 30, 2017. U/S 159(1) of the Income Tax Ordinance, 2001 issued
Share Registrar, THK Associates (Private) Limited not following address:
Members having physical share certificates are by concerned Commissioner of Inland Revenue is to be
later than (48) forty-eight hours before the time of holding
THK Associates (Private) Limited requested to convert their shares from physical form into produced to avail tax exemption.
the Meeting.
KAPCO Share Registrar book entry form as early as possible. It would facilitate Corporate shareholders having CDC accounts are
3. Form of Proxy is herewith enclosed. Plot No. 32-C, Jami Commercial Street 2 the Members in many ways including safe custody of required to provide their National Tax Number (NTN)
Phase VII, DHA shares, no loss of shares, avoidance of formalities to their participants. Corporate physical shareholders
CDC Account Holders Karachi, 75500 required for issuance of duplicate shares and readily should send a copy of their NTN certificate to the Share
4. CDC account holders are in addition required to follow available for sale and purchase in open market at better Registrar. The shareholders while sending NTN or NTN
the guidelines of Circular No.1 dated January 26, 2000
of the SECP for attending the Meeting:
Important Notes to the rates. certificates, as the case may be, must quote company
name and their respective Folio Numbers.
(i) In case of individuals: The account holder or sub
Shareholders Deduction of Income Tax from Dividend under Section
account holder and / or the person whose securities 150 Circulation of Annual Audited Financial Statements via
CNIC Copy
are registered on CDS; and their registration 4. The Government of Pakistan through Finance Act, CD/USB/DVD
details are uploaded as per the regulations, shall 1. Shareholders are requested to submit a copy of their 2019 made certain amendments to Section 150 of the 5. Annual Financial Statements of the Company for the
authenticate his/her identity by showing his/her valid CNIC (only physical shareholders), if not already Income Tax Ordinance, 2001 whereby different rates financial year ended June 30, 2021 have been placed
original CNIC or original passport at the time of provided to the Share Registrar of the Company. have been prescribed for deduction of withholding tax on the Company’s website www.kapco.com.pk.
attending the Meeting. Members are also required Corporate account holders should submit National Tax on the amount of dividend paid by the companies in the
Number, if not yet submitted. In case of non-submission Securities and Exchange Commission of Pakistan
to bring their Participants’ I.D. Number and Account following manner:
of CNIC/NTN Certificate (copy), all future dividends will (SECP) vide its SRO No.470(1)/2016 dated May 31,
Numbers in CDS.
be withheld till provision of these documents. 2016 has allowed companies to circulate their Annual
(ii) In case of a corporate entity: Board of Directors For Active tax payers 15% Audited Financial Statements along with notice of
Resolution / Power of Attorney with specimen E-Dividend (Mandatory) For non-active taxpayers general meeting to its shareholders through CD/DVD/
30%
signature of nominee shall be produced (unless USB at their registered addresses.
it has been provided earlier) at the time of the 2. In accordance with the provisions of Section 242 of the
Companies Act, 2017 and E Dividend Regulations of Active tax payers should ensure that their names duly Shareholders who wish to receive a hard copy of
Meeting.
the SECP through S.R.O. 1145(I)/2017 dated November appear on the Active Tax Payers List (ATL) of the Federal Annual Audited Financial Statements along with notice
6, 2017, it is mandatory for the Company to pay cash Board of Revenue (FBR). You may visit the FBR website of general meeting are advised to fill the request form
dividend to the Members only through electronic for assistance. Should the name of a shareholder be available on the Company’s website www.kapco.com.
mode directly into the bank account designated by the absent on the ATL, the Company will be constrained to pk and send the same to the Share Registrar or the
Member. deduct tax at 30% notwithstanding that such shareholder Company Secretary.
may be an income tax filer.

Excellence
BOARD OF DIRECTORS
Lt General Muzammil Hussain (Retd.) | Chairman
General Hussain joined the Pakistan Army in 1976 and graduated with distinction from PMA. He underwent his Mr. Naveed Asghar Chaudhary | Director
grooming in an Infantry Battalion. Having been employed on exalted positions including his employment in Interior
Sindh on anti-dacoit operations in 1992; and the Gulf War 1 in Saudi Arabia. He has attended courses in France and Mr. Naveed Asghar Chaudhry has appointed Director on February 19, 2020. He is Fulbright Scholar and has done
Indonesia. General Hussain has been privileged to command his parent Unit. His youth witnessed his distinctive his MS in Finance and MA in Economics from Georgia State University, USA and an MBA from Australian National
representation of Army in sports like Athletics, basket ball, squash and tennis. His employment as Defense Attache’ University. In addition, he has a BS in Electrical Engineering from University of Engineering & Technology Lahore.
in Jakarta exposed him to diplomacy for over three years. He had the privilege of being instructor in Army Command He belongs to the Pakistan Audit & Accounts Service and possesses more than 18 years of professional working
and Staff College, Quetta and lateron also as a Chief Instructor. experience. During his career he has served at senior positions including Director of a Department of the Auditor
General of Pakistan, Economic Specialist at US Consulate General Karachi and Directing Staff at Civil Services
Commanded an Infantry brigade and then as a Maj General went on to command most prestigious division in Academy, Lahore.
Gilgit Baltistan. His passion for adventurism lead him to phenomenal support of Gilgit Political Govt. and supported
them in exploring energy resources. His popularity with the people of Gilgit gives him a unique distinction. He He is a Member Finance/General Manager Finance of the Pakistan Water and Power Development Authority
commanded 30 Corps Gujranwala and supported the successful conduct of 2013 election in Gujranwala Division. (WAPDA). Mr. Asghar is also a Director on the Board of Directors of Neelum Jhelum Hydropower Company Limited,
Diamer Basha Dam Company and First Credit and Investment Bank Limited. He is Member of American Economic
His other Directorships are on the Board of Directors of Neelum Jhelum Hydroelectric Company Limited, Diamer Association, member of American Finance Association and Member of Pakistan Engineering Council.
Basha Dam Company, Pakistan Cricket Board and Private Power Infrastructure Board. He is a regular speaker in
seminars on Pakistan’s successful transition to democracy and economic positive trajectory in Universities in UK.
Mr. Aftab Mahmood Butt | Chief Executive
Mr. Aftab Mahmood Butt has been the Company Chief Executive since August 1, 2008. Prior to being appointed
Mr. Saad Iqbal | Director
Chief Executive, he was a Director of the Company (appointment: July 2007). From January 2007 to July 2008,
Mr. Saad Iqbal was appointed Director on November 4, 2016. Mr. Saad Iqbal is a graduate of Curry College, USA in
Mr. Butt held the position of General Manager Finance, Corporate Planning & Performance Monitoring in Pakistan
Business Communication. He is also holds a Postgraduate Diploma in International Business Management (2009)
Electric Power (Private) Limited (PEPCO). His other professional experience includes the position of Member
from Kingston University, United Kingdom.
Finance & Secretary Board in the Corporate and Industrial Restructuring Corporation, Ministry of Finance,
Government of Pakistan. Mr. Saad Iqbal is the Chief Executive of Gul Ahmed Bio Films Limited, Swift Textile Mills (Private) Limited and Metro
Solar Power Limited. His other Directorships are on the Board of Directors of Millat Tractors Limited, Metro Power
Mr. Butt is a Fellow Member of the Institute of Chartered Accountants of Pakistan. He has more than 20 years
Company Limited, Metro Wind Power Limited, Metro Estate (Private) Limited, Tariq Glass Industries Limited and
experience in the corporate and finance sector in senior management positions. Mr. Butt previously served on
HUB Power Company Limited.
the Board of Directors of Central Power Purchasing (Guarantee) Limited, the Lahore Stock Exchange (Guarantee)
Limited, and the Lahore Electric Supply Company Limited.
Mr. Aqeel Ahmed Nasir | Director

Mr. Jamil Akhtar | Director
Mr. Jamil Akhtar was appointed Director on April 15, 2021. He is the Member (Power) of the Pakistan Water
Mr. Aqeel Ahmed Nasir has been a Director since March 2015. Mr. Nasir is the Company Secretary & Chief Legal
and Power Development Authority (WAPDA). Mr. Akhtar has 35 years’ experience in operation, maintenance of
Counsel of United Bank Limited (UBL). Mr. Nasir has to his credit more than 20 years experience in the legal and
hydel power stations of WAPDA Hydroelectric and other power plants, procurement and contract management,
financial sector of both the public and private sector.
rehabilitation of old hydro power plants, negotiation with International donor agencies for project funding. He is also
Mr. Nasir is a Master of Laws (LL.M.) from the University of London, England. He is a Director on the Board of responsible for administrative, technical, financial, audit management and coordination with various Ministries for
Directors of United Executor and Trustee Limited (a wholly owned subsidiary of UBL). He is also a director of Rehabilitation and Development Projects.
the Pakistan Institute of Corporate Governance and Central Depository Company of Pakistan Limited (CDC). His
Mr. Akhtar is a B.Sc. Engineering (Electrical) and registered with the Pakistan Engineering Council (PEC). He has
previous employments include Sui Southern Gas Company Limited, Pakistan PTA Limited and ICI worldwide Group
also attended various trainings/short courses in Pakistan and abroad. He also a Member on the Board of Directors
Company.
of Neelum Jhelum Hydropower Company and Diamer Basha Dam Company.
Mr. Hafiz Muhammad Yousaf | Director
Mr. Hafiz Muhammad Yousaf has been appointed Director of the Company with effect from June 21, 2019. Mr. Ms. Zunaira Azhar | Director
Yousaf is a highly qualified professional having diversified qualifications from the renowned Institutions of Pakistan,
USA, and Canada. He is a Fellow Member of the Institute of Chartered Accountants of Pakistan (ICAP), Fellow Ms. Zunaira Azhar has been appointed director of Company on December 31, 2018. Ms. Azhar has Masters
Member of American Institute of Certified Public Accountants (AICPA) and Member of Canadian Institute of Degree in Public Policy and Governance. She also qualified CSS (competitive examination) and holds M.Sc. in
Chartered Professional Accountants (CICPA) besides being member of many other renowned international Child Development.
professional institutions.
Ms. Azhar has civil services exposure, eight years of active broadcast journalism in the mainstream media outlets of
Mr. Yousaf possesses over three decades of diversified post qualification experience as a Chartered Accountant, Pakistan, and concurrently is a PhD fellow in UK. She has a multifaceted and dynamic exposure to the public sector,
(including two decades at a Big 4 accounting firm as Partner/Country Leader Consulting). His core areas of socio-political and security arena of Pakistan. A strong research and development has been her forte throughout
specialization are corporate finance and restructuring, corporate compliance and regulations, governance and her academic and professional stream. She was selected by the State Department (US) in 2012, to represent
oversight, assurance, consulting and financial advisory services. He has handled, directed and managed a wide Pakistan in the South Asian Group under the Edward. R Murrow Exchange Program. Under this initiative, young
variety of complex professional assignments for private and public sectors, national and international entities. emerging leader and journalists from throughout the globe were invited to observe and report the mechanism and
Mr. Yousaf has the honor of serving the council of ICAP for eight years (2009-17) in various leadership positions transparency of the electoral system in USA.
including being its President for 2015-16 term and represented Pakistan on various prestigious international forums
including International Federation of Accountants (IFAC), International Accounting Standard Board (IASB), Asian
Oceana Standards Setters Group (AOSSG), CA Worldwide (CAW) and South Asian Federation of Accountants for
many years on different meetings and conferences. He has also served on the Boards of State Bank of Pakistan
(SBP), and Securities and Exchange Commission of Pakistan (SECP) including chairing their Audit and Oversight
Committees respectively besides being part of many other important committees of the Boards. Currently he is
also a Board Member of SAMBA Bank Limited, Pakistan Security Printing Corporation and Security Papers Limited.
Excellence
CODE OF
CONDUCT
Introduction Section I • You will not, directly or indirectly, have a financial interest
with any individual, firm or company which does or
• You may accept gifts of reasonable value including for
commonly-recognised events or occasions, such as a
This Code of Conduct (this “Code”) establishes a standard of Compliance with Laws, Rules and seeks to do business with the Company whether as a promotion, new job, wedding, retirement, birthday or
conduct for Directors and employees of the Company; deters Regulations customer, supplier, contractor, sub-contractor or service holiday.
wrongdoing and promotes honest and ethical conduct of provider.
• You may receive awards from civic, charitable,
Directors and employees. It also promotes compliance with The Company, its Directors and employees are bound by the • You will not use your position in the Company to gain an educational or religious organisations of reasonable
applicable laws, rules and regulations which apply to the law. Compliance with all applicable laws and regulations must unfair advantage over a customer, supplier, contractor or value in recognition of services and accomplishments.
Company, its Directors and employees. not be compromised. No one will be subject to retaliation service provider including to the extent of obtaining any
because of a good faith report of a suspected violation. If • You may receive gifts, gratuities, amenities or favours
goods or services on credit, rebate or discount which is
an employee fails to comply with an applicable law, rule or received because of family or personal relationships
This Code is not meant to cover all possible situations that not available generally.
regulation, he/she may be subject to disciplinary measures, when the circumstances make it clear that it is those
may occur. It is designed to provide a frame of reference
upto and including termination of employment. relationships rather than business of the Company that
against which to measure activities. You should seek Conflicts of interest may not always be clear-cut. If in doubt
are the motivating factor.
guidance when in doubt about the proper course of action in you should consult with the Company Secretary. If an actual
a given situation, as it is ultimately your responsibility to “do To avoid inadvertent violations, you are encouraged to or potential conflict of interest arises, you are required to
ask questions when there is uncertainty. To encourage If you receive gifts, services or other items of value under
the right thing”. intimate the same in writing to the Company Secretary (or
open communication, you may discuss the matter with the the above, you are required to intimate the same in writing
with respect to the Company Secretary, the Chief Executive)
Company Secretary. to the Company Secretary (or with respect to the Company
You should always be guided by the following basic principles: forthwith; and the Company Secretary is to report the same to
Secretary, the Chief Executive) forthwith. The Company
the Chief Executive. The Company Secretary shall maintain a
Secretary shall maintain a record of such receivings.
• Avoid any conduct that could damage or risk the
Company or its reputation.
Section II record of such reporting.
If you are offered gifts, services or other items of value not in
Conflicts of Interest
• Act legally and honestly.
Section III conformity with the exceptions noted above, or if either arrives
• Put the Company’s interests ahead of personal or other A conflict of interest occurs when your personal interests at your office or home, you must report it to your superior in
interests. (financial or other) interfere, or even appear to interfere, in any Gifts, Meals and Entertainment writing with a copy to the Company Secretary (or with respect
way, with the interests of the Company. Conflicts of interest to the Company Secretary, the Chief Executive).
This Code is a living document, which may change over time. You will not seek, accept, offer, promise, or give (directly or
can also arise when you take actions or have interests, or a
indirectly) anything of value including payments, fees, loans,
This Code is not an employment contract between you and
member of your family has interests, that may make it difficult
for you to perform your duties to the Company objectively
services, entertainment, favours or gifts from or to any person Section IV
the Company. Violations of this Code may lead to disciplinary or firm as a condition or result of doing business with the
action and also culminate in termination of employment.
and effectively. When a potential conflict of interest arises,
Company. Outside Directorships and other Outside
it is important that you act with great care to avoid even the Activities
appearance that your actions were not in the best interest of
This Code does not supersede, change or alter any Company You may accept gifts, services or other items of value under
the Company. Outside of the Company, no activities shall be pursued if such
policies and procedures already in place or which may be put the following circumstances:
activities will interfere with the employee’s responsibilities
in place, from time to time.
Some examples for avoiding conflicts of interest are as follow: for the Company, or if they create risks for the Company’s
• You may accept meals, travel, lodging, refreshment, or
reputation or if they in any other way are likely to conflict with
This Code is not intended to and does not create any rights other normal business courtesies of reasonable value
• You will deal with all suppliers, customers, and all the interests of the Company.
in any employee, customer, supplier, competitor, shareholder either in the course of a business meeting or to satisfy a
other persons doing business with the Company in a
or any other person or entity. reasonable business purpose of the Company.
completely fair and objective manner without favour or Unless requested by the Company to take up a particular
preference based upon personal financial or relationship • You may accept meals and entertainment, such as the position or activity, an employee shall pursue outside activities
Scope considerations. occasional sporting event, provided that you do not
do so frequently or under circumstances where your
and positions at his own risk and within his spare time only
subject to the condition that such position or activity do not
• You will not accept from or give to any supplier or,
This Code applies to the Company’s Directors to the extent of judgment could be influenced, or where the cumulative in any manner whatsoever adversely impact the employee in
customer any gift or entertainment except as allowed
carrying out their director-related activities. value of the entertainment is excessive. Any meals the performance of his official duties and responsibilities and
under Section III (Gifts, Meals and Entertainment) below.
and entertainment involving substantial travel or an provided further that it is permissible to so do in terms of the
For the purposes of this Code, references to “employee(s)” • You will not do business on behalf of the Company extended number of days cannot be accepted without employees employment contract with the Company.
include officers, staff, trainees, temporary employees, and with a member of your family or a close relative, unless the permission of the Chief Executive.
contract employees (including those employed by third party the transaction is disclosed in writing, to the Chief An employee will not seek directorship in any company
• You may accept discounts or rebates on merchandise or
contractors). Executive, who determines that the transaction is on (public or private) without the prior written consent of the
services that do not exceed those available to members
arms-length terms and is consistent with the purposes Chief Executive (and in case of the Chief Executive, the Board
of the general public.
of this Principle. A close relative would include a spouse, of Directors); and the directorships in other companies shall
parent, parent-in-law, sibling, sibling-in-law, child or son/ be capped at 4.
daughter-in-law.

Excellence
You will not participate, directly or indirectly, in a joint venture,
partnership or other business arrangement with the Company.
Section VI Section VII Section VIII
Fair Dealing Accuracy and Integrity of Books, Records Protection and Proper use of Company
Section V and Accounts Assets
You will deal honestly and ethically with the Company and
with the Company’s customers, suppliers, employees and
Corporate Opportunities All Company books, records and accounts must accurately You are expected to protect the Company’s assets and ensure
other stakeholders. reflect the nature of the transactions recorded. Books and their efficient use, and are prohibited from engaging in theft,
When presented with opportunities related to the Company’s records include but are not limited to ledgers, vouchers, bills, carelessness, or waste. All Company assets should be used
business interests, you must first offer those opportunities to You will treat people fairly. You must not take unfair invoices, time sheets, expense reports, payroll and benefits for legitimate business purposes, but incidental personal
the Company. You will not take for yourself personally, or for advantage of anyone through manipulation, concealment, records and other essential Company data. All assets and use may be permitted if ancillary to a business purpose. You
members of your family and friends opportunities that are abuse of privileged or otherwise undisclosed information, liabilities of the Company must be properly recorded in the are prohibited from making any improper use of Company
discovered through the use of Company property, information misrepresentation of material facts or any other unfair-dealing regular books of account. No undisclosed or unrecorded property such as Company funds, software, e-mail systems,
or position; nor use Company property, information, or practices. fund or asset shall be established in any amount for any voice mail systems, computer networks, Company vehicles,
position for personal gain. You may participate in such purpose. No transaction or arrangement shall be structured rental cars rented on behalf of the Company, and facilities for
opportunities only with the prior written approval of the Chief You are prohibited from taking any action (or inaction) to to circumvent the Company’s internal control systems. No personal benefit or profit.
Executive (or, with respect to the Directors, written approval improperly influence, coerce, manipulate or mislead the false or artificial entries shall be made for any purpose. No
of the Board of Directors). Company’s internal or external auditors; or to prevent such payment shall be made, nor purchase price agreed to with
persons from performing a diligent audit of the Company in the intention or understanding that any part of such payment
accordance with their respective mandates. is to be used for any purpose other than that described in the
document supporting the payment.

Excellence
Section IX the Company’s policy, through responsible management, to
recruit, hire, train, and promote persons regardless of their
be your obligation to ensure that such licensed weapon is
duly and properly secured in a safe and secure place.
authorised or the Company Secretary (as the case may be)
shall in a timely manner seek instructions from the Chief
Insider Trading cast, colour, sex or religion. Executive and intimate him the details of the responses
The use of alcohol and illegal drugs is strictly prohibited in the made.
You, your spouse or minor children shall not trade in or You will maintain an environment that is free from harassment workplace; and all forms of gambling on Company premises
recommend to any third party the purchase or sale of the in which all employees are equally respected. Workplace is forbidden.
Company’s shares (or any other equity or debt securities of harassment would include but not be limited to sexual
Section XV
the Company) while you are in possession of material non- harassment, disparaging comments and insinuations based
Section XIII Accountability for Adherence to the Code
public information regarding the financial, operational or on gender, religion, race and ethnicity.
other prospects of the Company that have not been publicly Each of us is responsible for our decision-making and for
Confidential Information
disclosed and disseminated. adherence to the Principles set forth in this Code.
Section XI For the purposes of this Code, Confidential Information
You, your spouse or minor children shall also similarly abstain of the Company includes all non-public information, Internal Investigations
Families and Relatives
from trading in, or recommending the purchase or sale of the correspondence, documents, papers, records, drawings and
securities of any other company that issues publicly-traded Family members may be hired as employees or consultants data (collectively, the “Confidential Information”). The Company will promptly investigate all alleged violations
shares/securities of which you may have obtained material only if the appointment is based on qualifications, and potential violations of this Code, or of any related
non-public information as a result of your employment by or performance, skills and experience and provided that there You must maintain the confidentiality of Confidential Company standard, policy or procedure. Any allegations
affiliation with the Company. is no direct reporting relationship between the employee and Information entrusted to you by the Company or which comes will be treated confidentially, to the extent consistent with the
his or her relative. These principles of fair employment will to your knowledge on account of the position you hold. Company’s interests and its legal obligations.
You shall not pass-on, tip or disclose any material non- apply to all aspects of employment, including compensation, You may disclose Confidential Information if you are duly
public information to third parties except when done so for promotions and transfers, as well as in case that the authorised by the Company or legally mandated to do so. No person covered by this Code may conduct his/her own
valid business purposes (and covered by an appropriate relationship develops after the respective employee has Prior to making a disclosure of any Confidential Information investigation. Each of us is expected to cooperate in the
confidential disclosure agreement) under proper joined the Company. which is legally mandated, you are required to consult with investigation of an alleged violation of this Code.
authorisation. the Company Secretary.
If your spouse, your children, parents, or in-laws, or someone If the Company determines that corrective action is necessary
As per the securities laws, the communication by an “insider” else with whom you have a family relationship is a customer You shall not keep or make or keep for personal use copies to fix a problem and avoid the likelihood of its recurrence, the
of purchase or sale of a security while in possession of or supplier of the Company or is employed by one, you must of any Confidential Information. All Confidential Information Company will promptly decide what steps to take, including
“material non-public information” is illegal and a crime and disclose the situation to the Company Secretary (or, with should be surrendered to the Company when you cease (for legal proceedings when appropriate.
is subject to substantial fines, damages, imprisonment and respect to the Company Secretary, to the Chief Executive) whatever reason) to be a Director or employee (as the case
other proceedings. “Insiders” include employee’s relatives so that the Company may assess the nature and extent of may be) of the Company. Disciplinary Action
and other who have access to a Director or an employee. Any any concern and how it can be resolved. If you have any
use by the “insider” of this information for trading securities doubt as to whether or not conduct or a relationship would The Company respects that third parties have a similar Appropriate disciplinary action will be taken for violation
or by disclosure by way of “tips” to third parties is dubbed as be considered an actual or apparent conflict of interest or interest in protecting their confidential information. In case of this Code, or any related Company standard, policy or
“insider trading”. could be expected to give rise to such a conflict, you should that third parties including suppliers or customers share with procedure, including for:
consult with the Company Secretary. the Company confidential information, such information shall
The Company shall impose a ‘closed period’, from time be treated with the same care as if it was the Company’s • Authorisation of or participation in violations.
to time, during which the Directors and certain identified confidential information.
employees shall be prohibited directly or indirectly, from Section XII • Failure to report a violation or potential violation.
engaging in transactions involving the Company’s shares (or • Refusal to cooperate in the investigation of an alleged
Weapons, Workplace Violence, Drugs, Section XIV violation.
any other equity or debt securities of the Company).
Alcohol and Gambling
Responding to Inquiries from the Press and • Failure by a violator’s supervisor(s) to detect and report
In the absence of the above conditions, you may make You will not display and/or carry weapons or explosives a violation, if such failure reflects inadequate supervision
investments in listed securities (including those of the
Others
on Company premises (including the residential colony), or lack of oversight.
Company). unless as a security personnel you have a licensed weapon. Those of you who are not official spokespersons of the
Similarly, the Company will not tolerate any level of violence in Company shall not speak with any third party as Company
Section XVI
Section X the workplace or in any work-related setting or the residential
colony.
representatives. Officer(s) authorised by the Chief Executive
shall respond to requests for financial or other information Waivers and Amendments
Workplace Harassment about the Company from the media (print or electronic),
Without prejudice to the contents of the preceding paragraph, financial analysts, or the public. Requests for information The Board of Directors may waive or amend a provision of
The Company is an equal opportunity employer and is in case of a licensed weapon, you shall be required to give from regulators or the government should be referred to the this Code subject to any applicable regulation/law.
committed to cultivating a diverse work environment where written notice to the Security Manager and provide him with a Company Secretary. In each of these instances the Officer(s)
individual differences are appreciated and respected. It is true copy of the license (and renewal thereof). Further, it shall

Excellence
OPERATIONAL HIGHLIGHTS The Company has the distinction of being the first in the Power Sector
of Pakistan to achieve accreditation of the Management Systems in
July 2004 for Environmental Management, Occupational Health &
Safety Management, and Quality Management.
Auto Transformer, T-6; 200 MVA (220/132 KV) Siemens make was
installed, commissioned and successfully energized in April 2021.
This flagship project will enhance grid system reliability for 132 KV
transmission lines emanating from KAPCO Grid and feeding consumer
grid stations in remote areas of Muzaffargarh, Layyah and Taunsa.
Cumulative Load Factor Electricity Sold

Environmental Remediation Project was completed which included oil
effluent water treatment system, turbine wash water treatment plant
30.3% 3,562 GWh and sewage treatment plant.
A Reverse Osmosis Plant was installed for availability of water for

combined cycle.
Lost Time Accident
Commercial Availability Thermal Efficiency On June 30, 2021 the Company successfully completed 9,061,658
man hours worked (2,914 days) without a Lost Time Accident.
95.2% 44.5%

Excellence
WHISTLE BLOWING
POLICY & PROCEDURE
1. Policy Statement 2. What is Whistleblowing? 3. Who Does the Policy The Investigation
1.1 The Company is committed to achieving and maintaining 2.1 This Policy is designed to deal with concerns raised in Apply to? 4.7 The Disciplinary Committee will decide how to respond in
high standards of behaviour at work from its employees. relation to specific issues which are detailed in paragraph a responsible and appropriate manner under this Policy.
3.1 This Policy applies to all officers, staff, trainees, temporary
Employees are expected to conduct themselves with 2.2 below. An investigation will be conducted as speedily and
employees, and contract employees (including those
integrity, impartiality and honesty. The Company seeks sensitively as possible. An official written record will be
The Company’s other policies and procedures deal employed by third party contractors).
to develop a culture where inappropriate behaviour kept at each stage of the procedure.
with matters not covered by paragraph 2.2 below. The
at all levels is challenged. To achieve this, the relevant policy should be followed where appropriate. A decision as to whether a preliminary investigation
Company encourages reporting of genuine concerns
2.2 Whistleblowing is specific and means a disclosure
4. The Company’s should be carried out will be made within two (2) weeks
of malpractices, illegal acts or failures to comply with
recognised standards of work without fear of reprisal or of information made by an employee where he/she Whistleblowing Procedure of the complaint having been received. Where this is not
possible, the employee making the complaint will receive
victimisation. reasonably believes that one or more of the following
4.1 If you wish to disclose information as contemplated in an explanation of the delay.
matters is happening now, took place in the past or is
This Policy is accompanied by a Procedure that should this Policy you may send a written communication to
likely to happen in the future: 4.8 You are entitled to be accompanied by a work colleague
be followed when “blowing the whistle”. the Disciplinary Committee at the address and e-mail throughout the proceedings when reporting your
1.2 The Company will not tolerate harassment or victimisation • incorrect financial reporting; notified by the Company. concerns.
of a genuine whistle blower (including informal pressures) • unlawful activity; All incidences of whistleblowing to the Disciplinary
and will treat such conduct as gross misconduct, which if
proven, may result in dismissal.
• danger to health and safety of any individual; Committee are to be reported by the Disciplinary
Committee to the Members of the HR Committee of Outcome of the Investigation
• activity not in line with Company policy, including the the Board of Directors at the immediately next Board
1.3 The Board of Directors reserves the right to amend this 4.9 If there is a case to answer, and if appropriate, the
Code of Conduct; Meeting.
Policy and Procedure as necessary to meet any change disciplinary proceedings will be initiated against the
in requirements. • activity, which otherwise amounts to serious 4.2 The Disciplinary Committee shall consist on three (3) person(s) who are the subject of the allegation(s).
improper conduct; or members; and one of its members will act as Coordinator.
1.4 If there is anything which you think the Company should 4.10 You will be informed of the outcome of the investigation
know about, kindly use the Procedure. By knowing of a • deliberate concealment of information tending to The Chief Executive will appoint the members of the
within 5 working days of completion of the investigation
malpractice at an early stage, the Company can take show any of the above. Disciplinary Committee. To avoid a conflict of interest,
(including any disciplinary investigation). However, the
necessary steps to safeguard the interests of others and if a whistleblowing instance involves a member of
exact nature of any disciplinary action taken against any
protect the organisation. Please do not hesitate to “blow 2.3 This Policy does not extend to mismanagement which the Disciplinary Committee, the Chief Executive will
person will remain confidential.
the whistle” on wrongdoing. may arise from error of judgment or incompetence. reconstitute the Disciplinary Committee.
4.11 Whether there was a case to answer or not, and provided
2.4 This Policy does extend to matters arising out of a 4.3 Anonymous allegations are not automatically disregarded
that your disclosure was made in good faith because you
personal grievance which should continue to be pursued but given the safeguards which are in place for those
reasonably believed it to be true, the Company will ensure
through your line managers in accordance with your local making allegations under this Policy, anonymous
that you are protected from reprisal or victimisation as a
grievance procedure. allegations are less powerful than those from named
result of your complaint.
2.5 Only genuine concerns should be reported. Disclosures individuals.
4.12 Only where it is established that your allegations were
must be made in good faith with a reasonable belief that 4.4 The Disciplinary Committee will decide how the
false and made maliciously will disciplinary action be
any information and/or allegation is substantially true, investigation should proceed.
taken against you. Such disclosures will be treated as
and that the disclosure is not made for personal gain.
4.5 If you are unhappy with the response that you receive gross misconduct and may result in your dismissal
Malicious or false allegations will be treated as a serious you may report the matter to the Chairman of the Audit without notice or payment in lieu of notice.
disciplinary offence. Committee. This option will not apply where an allegation
4.13 If, as a result of investigations you are implicated in some
has been dismissed following an investigation.
way in any wrong doings disciplinary action may be taken
4.6 If in doubt, you should speak to the Company Secretary. against you. The fact that you have blown the whistle will
Your conversation will be treated in absolute confidence. be taken into account if an action is considered.

Excellence
BOARD
COMMITTEES
Audit Committee HR Committee
During the year, Seven (7) meetings of the Audit Committee were held. Attendance of meetings is as follows: During the year, three (3) meetings of the HR Committee were held. Attendance of meetings is as follows:
Name of Director No. of Meetings Attended Name of Director No. of Meetings Attended
Mr. Hafiz Muhammad Yousaf 7 Mr. Aqeel Ahmed Nasir 3
Mr. Naveed Asghar Chaudhry 7 Mr. Aftab Mahmood Butt 2
Mr. Saad Iqbal 7 Mr. Naveed Asghar Chaudhry 3
Mr. Jamil Akhtar1 2

The HR Committee will review and make recommendations, e. periodically review appointments, exits, retirements and
Mr. Javed Akhtar 2
5
where appropriate, to the Board of Directors to ensure that promotions in the Company;
the Company’s Human Resources policies are aligned with
f. review the Company’s overall remuneration competitiveness
The Audit Committee among other things is responsible for g. Review of the scope and extent of Internal Audit ensuring its overall business objectives; Departmental/Divisional team
with the market and to make recommends to the Board of
recommending to the Board of Directors’ the appointment that the Internal Audit function has adequate resources performances are in line with business results for each year; and
Directors for appropriate actions, if required;
of External Auditors and for considering any questions of and is appropriately placed within the Company; the remuneration philosophy, strategy and framework is in place.
g. review collective bargaining mandates and tentative
resignation or removal of the External Auditors and their audit h. Consideration of major findings of internal investigations The HR Committee’s responsibilities shall also include the settlements and to make recommendations to the Board
fees. of activities characterized by fraud, corruption and following: of Directors;
abuse of power and management’s response thereto; h. recommend to the Board of Directors the selection,
The Audit Committee’s responsibilities also include the
i. Ascertaining that the internal control systems including a. provide general guidelines for HR policies including evaluation, compensation and succession planning of the
following: terms of employment and HR Head Count and to make
financial and operational controls, accounting system Chief Executive;
recommendations for Board of Directors’ approval;
a. determination of appropriate measures to safeguard the for timely and appropriate recording of purchases and i. review with the Chief Executive and recommend to the Board
sales, receipts and payments, assets and liabilities and b. determine a comprehensive compensation philosophy, of Directors the selection, evaluation and compensation of
Company’s assets;
reporting structure are adequate and effective; strategy and framework and to make recommendation for a General Manager(s) including Chief Financial Officer or to
b. review of preliminary announcements of results prior to Board of Directors’ approval; recommend his removal;
publication; j. Review of the Company’s statement on internal control
c. review a graphical presentation on the overall Departmental/ j. review with the Chief Executive and recommend to the Board
systems prior to endorsement by the Board of Directors
c. review of quarterly, half-yearly and annual financial Divisional team performances vis-à-vis overall commercial of Directors the selection, evaluation, and compensation of
and internal audit reports;
statements of the Company, prior to their approval by results of the Company after the close of a financial year of the Company Secretary or to recommend his removal;
the Board of Directors; k. Determination of compliance with relevant statutory the Company and to appraise the Board of Directors’ on the
overall performances with regards to the Human Resource k. review with the Chief Executive and recommend to the Board
requirements;
d. Facilitating the external audit and discussion with the Key Performance Indicators; of Directors the selection, evaluation, and compensation of
External Auditors on major observations arising from l. Monitoring compliance with the best practices of the Head of Internal Audit or to recommend his removal;
corporate governance and identification of significant d. review periodically the monitoring and enforcement of and and
interim and final audits and any matter that the External compliance with the Company’s Code of Conduct;
Auditors may wish to highlight (in the absence of violations thereof; and l. consideration of any other issue or matter as may be
management, where necessary); m. Consideration of any other issue or matter on its own or assigned by the Board of Directors.
e. Review of the Management Letter issued by the External as may be assigned by the Board of Directors.
Auditors and Management’s response thereto;
f. Ensuring coordination between the Internal Auditors and
External Auditors of the Company;
1
Appointed Member Audit Committee on April 15, 2021
2
Resigned from the Board of Directors on April 15, 2021

Excellence
CHAIRMAN’S The Company has successfully completed Twenty-Five
Years since its Privatisation in June 1996. The Company is
Under regulations and in accordance with its business needs,
the Board of Directors has constituted Board Committees.
REVIEW
a success story of public-private partnership. Over the years These Board Committees work under approved terms of
the Company has not only met the dispatch requirements of reference and, as appropriate, these Board Committees
the Power Purchaser, but has also provided a good return on make recommendations to the Board of Directors.
investment to shareholders. Due to the excellent operating
I am pleased to present the Annual Report and maintenance regime put in place, the Power Complex The Board of Directors has requisite skills sets which include
of the Company for the financial year has a further useful life and so the Company has filed an engineering, financial, banking, legal experience and the
ended on June 30, 2021. application before the National Electric Power Regulatory media.
Authority (NEPRA) for renewal of its Generation License,
which is due to expire in September 2021. The Government Appropriate safeguards have been put in place by the
of Pakistan intends to create a competitive power market. The Company at its power plant and adjoining colony for
Company will actively participate in the competitive trading ensuring the safety of Company employees and their families
arrangements when these are implemented and become from COVID 19 pandemic. Measures have been put in place
fully operational. This arrangement will give the Company for ensuring the continuous and reliable availability of the
the option to sell electricity to bulk power consumers. For Company’s power plant for power generation.
preparedness, the Company has embarked on technical
evaluations on the remaining useful life of its Power Plant. Following completion of external surveillance IMS Audit, the
Company’s following certifications continue:
The Company’s profit before tax for the year is Rs. 14,411
Million; and profit after tax is Rs. 10,229 Million bringing its ISO 9001: 2015
earnings per share (EPS) for the year to Rs. 11.62 per share Quality Management Systems
of Rs. 10 each. The total cash dividend for the year being Rs.
10.00 per share (subject to shareholder approval). ISO 14001: 2015
Environmental Management Systems
This has been an eventful year for the Company. The
Company settled its LDs Arbitration dispute with its Power And the Company has successfully transitioned to the
Purchaser. Following settlement, the term of the Company’s following certification:
Power Purchase Agreement has been extended from June
27, 2021 to October 24, 2022. As part of the settlement, the ISO 45001: 2018
Company received the first installment of 40% of receivables Occupational Health and Safety Management Systems
at the cut-off date of November 30, 2020 amounting to Rs.
39.601 Billion from the Power Purchaser in the form of one- The Company continues to reach out to the local community
third cash, one-third Government Ijara Sukuk, and one-third of Kot Addu through its Social Action Programme.
Pakistan Investment Bonds.
Company policies and procedures have been adopted/

implemented to ensure compliance with applicable laws,
regulations and best practices including under the Listed
Companies (Code of Corporate Governance) Regulations,
2019 and the Companies Act, 2017.
Lt. General Muzammil Hussain (Retd.)
The Board of Directors has adopted a formal mechanism Chairman, Board of Directors
for its annual evaluation and the evaluation of the Board of
Directors’ Committees. A self-assessment questionnaire
August 17, 2021
covers the attributes/skill sets of professional experience,
Lahore
Company knowledge, industry knowledge, governance
issues, specific competency, business judgment, strategic
vision, attendance, meeting preparation, team player, active
participation and overall contribution.
Years of 29
Excellence
DIRECTORS’ Principles Activities of the
Company
highest international standards in accordance with
Original Manufacturer Recommendations. Operating
and maintaining the Power Complex at these standards
REPORT The principal activities of the Company are the ownership,

operation and maintenance of the 1600 MW nameplate capacity
contributed towards negligible insurance claims over the
last two decades.
• The Company has the distinction of being the first in the
It pleases us to present the Directors’ multi fuel (gas, furnace oil and high speed diesel) fired power Power Sector of Pakistan to achieve accreditation of the
plant at Kot Addu, Punjab. The Company continues to sell the
Report together with the Financial electrical energy produced from its power plant to its single
Management Systems in July 2004 for Environmental
Management, Occupational Health & Safety Management,
Statements (audited) for the year ended customer, Central Power Purchasing Agency (Guarantee) and Quality Management.
June 30, 2021. Limited (CPPA-G)1.
• Different up-gradation projects were completed
The Company is listed on the Pakistan Stock Exchange; and is successfully, which include up-gradation of two Gas
a KSE 30 and KSE 100 index company. Turbines with upgraded blades and vanes, replacement
of nozzles and shrouds with latest design improved
material and better rupture strength of four Gas Turbines.
Twenty-Five Years of Replacement of old control systems of ten units.
Privatisation • Two Auto Transformers (100 +200 MVA) were installed for
Grid System Support.
It is heartening to note that the Company in June 2021 • Auto Transformer, T-6; 200 MVA (220/132 KV) Siemens
completed Twenty-Five Years of Privatisation. We take this make was installed, commissioned and successfully
opportunity to extend our warmest felicitations to you for being energized in April 2021.This flagship project will enhance
part of this journey! grid system reliability for 132 KV transmission lines
emanating from KAPCO Grid and feeding consumer grid
The Company was Privatised following international competitive stations in remote areas of Muzaffargarh, Layyah and
bidding on June 27, 1996. The Privatisation Commission (on Taunsa.
behalf of the Pakistan Water and Power Development Authority
• On the technical side, solutions were achieved for
(WAPDA)), sold around 18% of WAPDA’s shareholding to the
complicated turbines blade failure, high vibration on
general public under an Offer for Sale in February 2005; and
some Gas Turbines, and innovative remedial measures
with this the Company was listed on the Stock Exchanges of
to overcome compressor failure problem on two Gas
Pakistan. The public offering was a resounding success with an
Turbines.
oversubscription several times over! The Company has been a
KSE 100 index company. • A Fuel Oil Treatment Plant was successfully rehabilitated
and modified for treatment of both Low Sulphur Furnace
The last Twenty-Five Years have been eventful with improvements Oil (LSFO) and High Speed Diesel (HSD); and another
and enhancements to the Power Complex, which increased Fuel Oil Treatment Plant was installed to enhance LSFO
the reliability and availability of the Power Complex to meet treatment capacity.
dispatch requirements of the Power Purchaser. Since 2006, • Environmental Remediation Project was completed which
Pakistan has been faced a power crises. We are pleased to included oil effluent water treatment system, turbine wash
report that the Company has over this period been the biggest water treatment plant and sewage treatment plant.
supporter of the Power Purchaser/Government of Pakistan
from amongst the IPPs. To support the system, the Company • A Reverse Osmosis Plant was installed for availability of
not only continues to keep its Power Complex technically water for combined cycle.
available but also maintains credit lines of Billions of Rupees. • New Sodium Hypo Chlorite Plant installed for elimination
Some technical milestone achievements/improvements made of chlorine gases.
over the last Twenty-Five Years are given below:
• Up gradation of IT systems were carried out from time to
time to conform to the changing needs of the Company
• The Annual Dependable Capacity Tests successively
and its business.
carried out successive years have demonstrated an
excess in capacity over the Initial Dependability Tests
The technical milestone achievements/improvements have
conducted at the time of Privatisation.
directly impacted the Company’s financial performance, which
• The Complex Thermal Efficiency has been improved has been par excellence, despite challenges. A few financial
through implementation of various projects and achievements/contributions over the last Twenty-Five Years are
operating and maintaining the Power Complex at the given below:
The Pakistan Water and Power Development Authority has been substituted by Central Power Purchasing Agency
31
1
Years of
(Guarantee) Limited vide Novation Agreement dated February 15, 2021. Excellence
• The Company has over the last Twenty-Five years provided
a good return to shareholders in the form of cash dividend
14,411 Million (2020: Rs. 32,954 Million). Tax provision is Rs.
4,181 Million; and profit after tax is Rs. 10,229 Million (2020:
in the larger national interest agreed to amend the PPA
for sustainability of the power sector. A Memorandum of
Impact of Covid-19 on the
of Rs. 136,697 million which includes the amount of Rs.
65,511 million paid to WAPDA.
Rs. 23,613 Million) which gives earnings per share (EPS) of Rs.
11.62 per share of Rs. 10 each (2020: Rs. 26.83 per share) for
Understanding was executed on August 19, 2020 between
the Company and G-NC, subject to certain conditions. GoP,
Company and its Business
the year. thereafter set-up an Implementation Committee (G-IC) vide The Company follows proper guidelines at its Power Complex
• The Company arranged USD 45 Million KIBOR to LIBOR
notification dated October 7, 2020. G-IC, the Company and and adjacent colony to control the spread of COVID 19. Wearing
SWAPs in Pakistan in 2011.
As in previous years, Power Purchaser’s payment default CPPA-G (on behalf of WAPDA) entered into negotiations for tariff of masks at the Power Complex is made mandatory, facilities
• Issuance of first Short Term Islamic Sukuk in Power Sector continues. On June 30, 2021, the overdue receivables from the reduction and to resolve other outstanding issues between the for washing of hands has been made available alongwith the
of Pakistan for Rs 1.5 Billion in June 2011. This transaction Power Purchaser were Rs. 104,622 Million (for details refer to Company and the Power Purchaser including the settlement use of hand sanitizers. Social distancing measures have been
was awarded as highly commended Islamic deal in Note 20 to the Financial Statements). The advance paid, as on of the LDs Arbitration before the International Chamber of put in place at workplaces. Screening is carried out before
Pakistan by Triple A Asset Asia. June 30, 2021, to Pakistan State Oil Company Limited (PSO) Commerce (ICC) in Singapore. entry into the Power Complex on a daily basis. Significant
• KAPCO was awarded “Partner in Excellence Award” by for fuel oil supplies is Rs. 4,557 Million and amount payable to number of employees have been vaccinated. From time to time
FBR in 2006. Sui Northern Gas Pipelines Limited (SNGPL) for gas (RLNG) The Company and the Power Purchaser (WAPDA) on instructions are issued through office orders to govern leave
supplies amounts to Rs. 1,557 Million. The Company continues February 11, 2021 signed the Master Agreement and the Third approvals, testing, isolation, restriction at entry and exit etc. The
• The Company is the only IPP in Pakistan whose business to pursue the Power Purchaser and the concerned Ministries of Amendment to the Power Purchase Agreement. On May 21, Company’s Crises Management Team is fully engaged. The
income has been taxable since July 2006; and is amongst GoP for resolution of the matter. 2021 the Amendment to the Facilitation Agreement and the Company is committed to taking necessary steps to protect
the top tax payers of the Country ranking at number 13 Amendment to the GoP Guarantee were executed between the power plant operations / business and its employees and
on the ‘Top Tax Payers List’ under Prime Minister’s Tax As on June 30, 2021, the Company does not have any long- the Company and the President of the Islamic Republic of their families.
Privileges and Honour Card Scheme. term debt obligations other than those of operational nature. Pakistan for and on behalf of the Islamic Republic of Pakistan.
• The Company has successfully settled the LDs Arbitration The Company obtained requisite shareholders’ approvals for,
with the Power Purchaser, which were imposed for not As part of settlement of the LDs Arbitration dispute, on June 4, inter alia, the settlement of the LDs dispute at the Extraordinary Social Action Programme
meeting dispatch requirements due to inability of the 2021, the Company received Rs. 39.601 Billion from the Power General Meeting held on March 24, 2021.
Company to purchase fuel because of delayed payments Purchaser in the form of one-third cash, one-third Government As part of the Company’s Social Action Programme, the
from the Power Purchaser. Details of the LDs settlement Ijarah Sukuk, and one-third Pakistan Investment Bonds. This Following completion of conditions precedent, the Company construction of library, availability of furniture and books is
are given in a following section. constitutes the first instalment of 40% of receivables as of the and Power Purchaser filed a joint application for withdrawal being progressed in the vicinity of Kot Addu.
cut-off date of November 30, 2020. of the LDs Arbitration before the ICC in Singapore. The
As a responsible corporate citizen, the Company under its Arbitral Tribunal issued a Consent Order dated July 13, 2021
CSR Programme made a donation to the President’s Relief acknowledging the settlement of disputes, and the withdrawal Directors’ Training
Fund for earthquake victims in October 2005; and made a Operational Highlights of all claims and counterclaims as per the settlement terms of
During the year, Messrs. Naveed Asghar Chaudhry and Jamil
donation for flood relief in 2010. Kot Addu and its adjoining the Third PPA Amendment Agreement. The ICC vide its letter
The Company sold 3,562 GWh of electricity to its customer, Akhtar participated in Directors Training Programme carried
areas were severally impacted by these floods. Fortunately, the dated August 5, 2021 acknowledged agreement of the parties
representing a cumulative load factor of 30.3%; overall out by the Lahore University of Management Sciences. Ms.
flood waters receded without entering the Company’s Power for withdrawal of claims under the LDs Arbitration.
commercial availability of 95.2%; and thermal efficiency of Zunaira Azhar participated in the assessments carried out
Complex and its colony. The Company reached out to the local
44.5%. Fuel generation during the year mix was 65.0% on gas by the Pakistan Institute of Corporate Governance under its
communities by providing cooked food on daily basis to the By way of settlement of the LDs dispute, the parties agreed to
(RLNG), 31.7% on low sulphur furnace oil and 3.3% on high Corporate Governance Leadership Skills – Directors Education
affected people along with medical and other support. The treat the outage period (financial years 2009 to 2016) due to
speed diesel. Programme. A total of seven Members of the Board are
Company also made its premises and infrastructure available fuel shortage as an Other Force Majeure Event (OFME) under
to various governmental agencies, the Pakistan Army and local the PPA. The total number of days that the OFME subsisted was certified Directors.
and foreign NGO’s and aid agencies working in the area for The Company’s Power Complex is being maintained at the equivalent to 485 days (approximately 16 (sixteen) months).
highest international standards in accordance with the Original
relief operations.
Equipment Manufacturers’ recommendations to ensure
Hence, the term of the existing PPA has been extended from
June 27, 2021 to October 24, 2022.
Directors’ Remuneration
Having successfully completed Twenty-Five Years of its PPA, technical availability of the Power Complex in accordance with
Non-executive Directors and the Independent Directors are
the Company will be evolving by facilitating the power market the terms of the Power Purchase Agreement (as amended)
transition from the current single buyer to competitive market (PPA). During the year, eight combustion inspections were duly Novation of PPA entitled to a Directors’ fee for meetings attended.
in accordance with the legal and regulatory regime as agreed carried out as per approved outage plan; and major overhaul of
in the Master Agreement dated February 11, 2021 between the two gas turbines and one steam turbine was completed. The Company, WAPDA and CPPA-G on February 15, 2021
signed a Novation Agreement2 to transfer the rights, obligations
Change on Board of Directors
Company and the Power Purchaser.
and liabilities of WAPDA under the PPA (as amended by the
Here in after is the Directors’ Report for the year ended June
Settlement of LDs Dispute, Third PPA Amendment Agreement) in favour of CPPA-G.
One casual vacancy on the Board of Directors’ due to the
resignation of Mr. Javed Akhtar was filled-in by the appointment
30, 2021. Withdrawal of Arbitration CPPA-G is the Market Operator, inter alia, facilitating the power
market transition from the current single buyer to competitive
of Mr. Jamil Akhtar.
Proceedings and Extension of market. In line with other IPPs, the Company’s PPA has also
Financial Highlights been novated to CPPA-G. Board of Directors Composition
Existing PPA
Turnover for the year is Rs. 69,636 Million (2020: Rs. 71,543 The Board of Directors as at June 30, 2021 consists of:
Million); and the cost of sales are Rs. 45,098 Million (2020: Rs. GoP set-up a Committee for Negotiations (G-NC) with Generation License
50,065 Million). The gross profit earned is Rs. 5,251 Million Independent Power Producers (IPPs) vide Notification
(2020: Rs. 21,478 Million); and profit before tax stood at Rs. dated June 3, 2020 for alteration in the existing contractual The Company has within the statutory period filed an application
arrangements. The Company, at the request of GoP and before the National Electric Power Regulatory Authority
(NEPRA) for renewal of its Generation License, which is due to
expire in September 2021 and the same is being progressed.
32 Annual Report 2021 2

Effective date May 21, 2021 following fulfilment of conditions precedent.
Years of 33
Excellence
f) Key operating and financial data for the last six years is No. of Meetings
Total number of Directors: Name of Director Rs. ‘000’
annexed.
Attended
a) Male 7 g) The pattern of shareholding as at June 30, 2021 is Net Profit for the year 10,229,424
Mr. Aqeel Ahmed Nasir 3
annexed.
b) Female 1 Mr. Aftab Mahmood Butt 2 Other comprehensive income 365,322
h) Except as disclosed in the pattern of shareholding, the
Directors, Chief Executive, the Chief Financial Officer, the Mr. Naveed Asghar Chaudhry 3 Un-appropriated profit brought forward 51,103,528
Composition Company Secretary, Head of Internal Audit, their spouses
n) During the year, four (4) meetings of the LDs Committee Profit available for appropriation 61,698,274
and minor children have not traded in the shares of the
i) Independents Directors 4 Company. were held. Attendance of meetings is as follows:
ii) Non-executive Directors 3 i) The value of investments of Pension Fund and Provident
Fund as at June 30, 2020 (audited) is as follows:
Appropriations
iii) Executive Directors No. of Meetings
1 Name of Director Interim dividend for the year ended
Attended
Rs. in Million Mr. Aqeel Ahmed Nasir 4
The names of the Directors as at June 30, 2021 are as follows:
Pension Fund 2,984.00 Mr. Aftab Mahmood Butt 4 Rs. ‘000’
1. Lt. General Muzammil Hussain (Retd) - Chairman Provident Fund 934.00 Interim dividend for the year ended
Mr. Saad Iqbal 4 (1,320,380)
2. Mr. Aftab Mahmood Butt - Chief Executive June 30, 2021 Rs. 1.50 per share
j) Information about outstanding taxes and levies is given in o) During the year, one (1) meeting of the Special Committee
3. Mr. Aqeel Ahmed Nasir Interim dividend for the year ended
the Notes to the Financial Statements.
was held. Attendance of meeting is as follows: (declared) (4,401,266)
4. Mr. Hafiz Muhammad Yousaf
k) During the year, eleven (11) meetings of the Board of June 30, 2021 Rs. 5.00 per share
5. Mr. Naveed Asghar Chaudhry Directors were held, attendance of these meetings is as
No. of Meetings (5,721,646)
6. Mr. Saad Iqbal follows:
Name of Director
Attended Un-appropriated profit carried forward 55,976,628
7. Mr. Jamil Akhtar
No. of Meetings Mr. Naveed Asghar Chaudhry 1
8. Ms. Zunaira Azhar Name of Director Basic Earnings Per Share (Rupees) 11.62
Attended
Mr. Aftab Mahmood Butt 1
Lt. General Muzammil Hussain (Retd) 11
Corporate and Financial Mr. Aftab Mahmood Butt 10 Auditors
Reporting Framework Mr. Aqeel Ahmed Nasir 10
Chairman’s Review The present auditors, A. F. Ferguson & Co., Chartered
Mr. Hafiz Muhammad Yousaf 11 Accountants, retire and being eligible, offer themselves for
As required by the Code of Corporate Governance, we are The accompanied Chairman’s Review is endorsed by the reappointment. The Board of Directors recommends the
pleased to report the following: Mr. Naveed Asghar Chaudhry 11
Board of Directors’. appointment of A. F. Ferguson, Chartered Accountants, as
Mr. Saad Iqbal 10 auditors of the Company for the next year, as suggested by the
a) The financial statements, prepared by the Management of Audit Committee.
Mr. Jamil Akhtar 3
4
the Company, present fairly its state of affairs, the results
Ms. Zunaira Azhar 9
Appropriations
of its operations, cash flows and changes in equity.
b) Proper books of accounts of the Company have been Mr. Javed Akhtar4 7 The Directors are pleased to recommend a final dividend of Rs. Appreciation
3.50 per share. This will be paid to shareholders on Company’s
maintained.
l) During the year, Seven (7) meetings of the Audit Committee Register of Members on October 14, 2021. Interim Dividends The employees of the Company have over the year contributed
c) Appropriate accounting policies have been consistently of Rs. 1.50 per share (approved by the Board of Directors on to the success of the Company and we would like to place our
were held. Attendance of meetings is as follows:
applied in preparation of financial statements and any October 23, 2020 and credited to shareholders accounts in appreciation on record.
changes in accounting policies have been disclosed in the December, 2020); and Rs. 5.00 per share (approved by the
financial statements. The accounting estimates are based Board of Directors on June 9, 2021 and credited to shareholders By Order of the Board
No. of Meetings
on reasonable and prudent judgement. Name of Director accounts in August, 2021) were paid. The total dividend to be
Attended
d) International Financial Reporting Standards, as applicable approved by the shareholders at the Annual General Meeting
Mr. Hafiz Muhammad Yousaf 7 on October 22, 2021 will be Rs. 10.00 per share, that is, 100%
in Pakistan, and subject to waivers from the competent
authority, have been followed in preparation of financial Mr. Naveed Asghar Chaudhry 7 for the year ended June 30, 2021.
statements and any departure therefrom have been Mr. Saad Iqbal 7
adequately disclosed and explained. The net profit for the year is appropriated as follows.
Mr. Jamil Akhtar 5
2 Aftab Mahmood Butt Hafiz Muhammad Yousaf
e) The system of internal control is sound in design and has Chief Executive Director
been effectively implemented and monitored. Mr. Javed Akhtar 6
5
m) During the year, three (3) meetings of the HR Committee

August 17, 2021
were held. Attendance of meetings is as follows:
Lahore
3
Appointed Director of the Company on April 15, 2021 5
Appointed Member Audit Committee on April 15, 2021
Resigned from the Board of Directors on April 15, 2021 6
Resigned from the Board of Directors on April 15, 2021 Years of 35
Excellence
Excellence
Excellence
KOT ADDU POWER
COMPANY LIMITED
Key Operating and Financial Data
of the Last Six Years
Financial Year Ending June 30, 2021 2020 2019 2018 2017 2016
Turnover PKR in Million 50,349 * 71,543 84,831 91,916 81,847 64,178
Net profit PKR in Million 10,229 * 23,613 13,112 10,617 9,447 9,071
Assets PKR in Million 152,233 134,523 139,267 138,446 116,001 92,213
Dividends PKR in Million 5,722 3,961 5,546 8,010 7,966 7,922
EPS PKR per share 11.62 * 26.83 14.90 12.06 10.73 10.31
Net Output GWh 3,562 3,477 4,961 7,437 7,335 6,583
Thermal Efficiency % 44.5 44.4 44.0 44.0 43.7 44.0
Load Factor % 30.3 29.5 42.2 63.3 62.4 55.8
Availability % 85.6 88.9 91.8 86.0 84.3 81.9
* The numbers have been adjusted to take impact of ‘Adjustment to Capacity Purchase Price’ as referred to in note 8.1 to the
financial statements.

Excellence
PATTERN OF
SHAREHOLDING
As on June 30, 2021
No of Share Having Shares No of Share Having Shares

Shares Held Percentage Shares Held Percentage
Holders From To Holders From To
681 1 100 30881 0.0035 3 290001 295000 876500 0.0996

47847 101 500 23790329 2.7027 9 295001 300000 2695500 0.3062
3380 501 1000 3323438 0.3776 2 300001 305000 607500 0.0690
5188 1001 5000 14822469 1.6839 1 305001 310000 307500 0.0349
1770 5001 10000 14344141 1.6295 1 310001 315000 311000 0.0353
695 10001 15000 8990401 1.0213 5 320001 325000 1621500 0.1842
465 15001 20000 8627762 0.9801 1 325001 330000 327500 0.0372
321 20001 25000 7529083 0.8553 4 345001 350000 1400000 0.1590
189 25001 30000 5388761 0.6122 2 355001 360000 715833 0.0813
119 30001 35000 3964424 0.4504 2 360001 365000 724900 0.0824
142 35001 40000 5484600 0.6231 2 370001 375000 742001 0.0843
77 40001 45000 3323298 0.3775 1 375001 380000 376500 0.0428
148 45001 50000 7315400 0.8311 1 385001 390000 390000 0.0443
66 50001 55000 3509370 0.3987 5 395001 400000 2000000 0.2272
59 55001 60000 3485373 0.3960 2 400001 405000 804500 0.0914
27 60001 65000 1718200 0.1952 1 405001 410000 405350 0.0460
40 65001 70000 2743641 0.3117 1 410001 415000 412000 0.0468
34 70001 75000 2499500 0.2840 1 415001 420000 415500 0.0472
32 75001 80000 2519900 0.2863 1 420001 425000 423000 0.0481
18 80001 85000 1509900 0.1715 3 425001 430000 1288000 0.1463
18 85001 90000 1583600 0.1799 1 440001 445000 444000 0.0504
9 90001 95000 840977 0.0955 5 445001 450000 2242000 0.2547
88 95001 100000 8770000 0.9963 1 455001 460000 459000 0.0521
21 100001 105000 2161149 0.2455 2 460001 465000 930000 0.1057
18 105001 110000 1945980 0.2211 2 470001 475000 949500 0.1079
8 110001 115000 912500 0.1037 1 480001 485000 480500 0.0546
8 115001 120000 951500 0.1081 1 490001 495000 495000 0.0562
16 120001 125000 1977500 0.2247 11 495001 500000 5494944 0.6242
6 125001 130000 766326 0.0871 1 500001 505000 501000 0.0569
7 130001 135000 929001 0.1055 1 510001 515000 514500 0.0584
10 135001 140000 1394400 0.1584 2 515001 520000 1036000 0.1177
8 140001 145000 1144000 0.1300 1 520001 525000 524500 0.0596
17 145001 150000 2545000 0.2891 2 525001 530000 1053284 0.1197
3 150001 155000 455250 0.0517 1 535001 540000 539000 0.0612
5 155001 160000 791500 0.0899 1 550001 555000 555000 0.0630
7 160001 165000 1144500 0.1300 1 555001 560000 557500 0.0633
4 165001 170000 673970 0.0766 3 570001 575000 1715500 0.1949
5 170001 175000 862628 0.0980 1 575001 580000 579000 0.0658
2 175001 180000 353600 0.0402 1 580001 585000 580500 0.0659
6 180001 185000 1099500 0.1249 3 595001 600000 1800000 0.2045
2 185001 190000 375500 0.0427 1 605001 610000 609000 0.0692
6 190001 195000 1163177 0.1321 1 610001 615000 611000 0.0694
20 195001 200000 3990761 0.4534 1 615001 620000 620000 0.0704
4 200001 205000 809662 0.0920 1 620001 625000 621000 0.0705
7 205001 210000 1458000 0.1656 1 630001 635000 634184 0.0720
2 215001 220000 436400 0.0496 1 650001 655000 654500 0.0744
3 220001 225000 670000 0.0761 1 660001 665000 665000 0.0755
2 225001 230000 458500 0.0521 1 665001 670000 666500 0.0757
1 230001 235000 235000 0.0267 1 690001 695000 693000 0.0787
1 235001 240000 240000 0.0273 1 695001 700000 700000 0.0795
3 240001 245000 725005 0.0824 2 705001 710000 1418500 0.1611
6 245001 250000 1493000 0.1696 1 710001 715000 713000 0.0810
2 250001 255000 506019 0.0575 1 715001 720000 718500 0.0816
4 255001 260000 1038000 0.1179 1 720001 725000 725000 0.0824
3 260001 265000 791500 0.0899 2 730001 735000 1466000 0.1665
1 265001 270000 270000 0.0307 1 750001 755000 753000 0.0855
1 270001 275000 272000 0.0309 1 760001 765000 763000 0.0867
3 275001 280000 832000 0.0945 1 795001 800000 800000 0.0909
1 280001 285000 281000 0.0319 1 840001 845000 840321 0.0955

Excellence
PATTERN OF CATEGORIES OF
SHAREHOLDING SHAREHOLDERS
As on June 30, 2021
As on June 30, 2021
No of Share Having Shares Particulars No of Folio Balance Shares Percentage

Shares Held Percentage
Holders From To DIRECTORS, CEO, SPOUSE & CHILDREN 8 86005 0.0098
1 930001 935000 933500 0.1060 ASSOCIATED COMPANIES 2 402563562 45.7327
3 945001 950000 2849500 0.3237
3 955001 960000 2876000 0.3267 BANKS, DFI & NBFI 18 133162047 15.1277
1 980001 985000 981500 0.1115 INSURANCE COMPANIES 19 18182607 2.0656
2 995001 1000000 2000000 0.2272
1 1010001 1015000 1012000 0.1150 MUTUAL FUNDS 38 12067352 1.3709
3 1040001 1045000 3128963 0.3555 GENERAL PUBLIC (LOCAL) 58334 208504378 23.6869
1 1045001 1050000 1049000 0.1192
1 1055001 1060000 1058500 0.1202 GENERAL PUBLIC (FOREIGN) 3095 24458868 2.7786
1 1095001 1100000 1099500 0.1249
1 1120001 1125000 1125000 0.1278 OTHERS 210 31588871 3.5886
1 1145001 1150000 1146530 0.1302 FOREIGN COMPANIES 28 34431007 3.9115
1 1150001 1155000 1151400 0.1308
1 1165001 1170000 1166500 0.1325 APPROVED FUND 66 15208531 1.7277
1 1180001 1185000 1181944 0.1343 Company Total 61818 880253228 100.0000
1 1185001 1190000 1187000 0.1348
1 1195001 1200000 1200000 0.1363
1 1225001 1230000 1228500 0.1396
1 1240001 1245000 1245000 0.1414
1 1245001 1250000 1250000 0.1420
1 1290001 1295000 1294500 0.1471
1 1325001 1330000 1328108 0.1509
2 1330001 1335000 2668700 0.3032
1 1395001 1400000 1400000 0.1590
1 1445001 1450000 1448000 0.1645
1 1450001 1455000 1452000 0.1650
4 1495001 1500000 6000000 0.6816
1 1510001 1515000 1515000 0.1721
1 1515001 1520000 1519000 0.1726
1 1540001 1545000 1544500 0.1755
1 1815001 1820000 1816000 0.2063
1 1910001 1915000 1911500 0.2172
2 1995001 2000000 3999000 0.4543
1 2415001 2420000 2415500 0.2744
1 2515001 2520000 2519000 0.2862
1 2640001 2645000 2645000 0.3005
1 2695001 2700000 2700000 0.3067
1 2700001 2705000 2702804 0.3070
2 2995001 3000000 6000000 0.6816
1 3415001 3420000 3420000 0.3885
1 3640001 3645000 3643000 0.4139
1 3690001 3695000 3694000 0.4197
1 3945001 3950000 3947500 0.4484
1 4700001 4705000 4700500 0.5340
1 4900001 4905000 4901009 0.5568
1 5530001 5535000 5531500 0.6284
1 5730001 5735000 5731000 0.6511
1 5800001 5805000 5804000 0.6594
1 5995001 6000000 6000000 0.6816
1 6590001 6595000 6593894 0.7491
1 7045001 7050000 7046000 0.8005
1 7465001 7470000 7469500 0.8486
1 7660001 7665000 7660721 0.8703
1 15660001 15665000 15662000 1.7793
1 16995001 17000000 17000000 1.9313
1 48250001 48255000 48252429 5.4817
1 67895001 67900000 67900000 7.7137
1 354310001 354315000 354311133 40.2510
61818 Company Total 880253228 100.0000

Excellence
PATTERN OF SHAREHOLDING
ADDITIONAL INFORMATION
As on June 30, 2021
Shareholders Category No. of Shares Held Shareholders Category No. of Shares Held
Associated Companies Directors, CEO, their spouses and minor children
Pakistan Water and Power Development Authority 354,311,133 Lt. General Muzammil Hussain (Retd.) 1
KAPCO Employees Empowerment Trust 48,252,429 Mr. Aftab Mahmood Butt 1,000
Mutual Funds Mr. Hafiz Muhammad Yousaf 1
Mr. Naveed Asghar Chaudhry 1
UNICOL LIMITED EMPLOYEES PROVIDENT FUND 1,000.00
Mr. Saad Iqbal 84,500
HRSG OUTSOURCING (PVT) LIMITED EMPLOYEES GRATUITY FUND 32,000.00
Mr. Jamil Akhtar 1
TRUSTEE CHERAT CEMENT CO.LTD.EMP.PRO.FND 15,000.00
Ms. Zunaira Azhar 1
MCBFSL - TRUSTEE JS VALUE FUND 415,500.00
CDC - TRUSTEE JS LARGE CAP. FUND 291,000.00
Executives 321,576
CDC - TRUSTEE ATLAS STOCK MARKET FUND 1,335,000.00
CDC - TRUSTEE UBL GROWTH AND INCOME FUND 571,500.00 Public Sector Companies and Corporations -
CDC - TRUSTEE ALFALAH GHP VALUE FUND 90,000.00
Banks, Development Finance Institutions, Non Banking Finance
CDC - TRUSTEE UNIT TRUST OF PAKISTAN 423,000.00
Companies, Insurance Companies, Takaful, Modarabas and 232,573,063
CDC - TRUSTEE AKD INDEX TRACKER FUND 108,779.00
CDC - TRUSTEE HBL ENERGY FUND 579,000.00 Approved Funds (Pension Funds, Provident Funds, Gratuity Funds etc.)
CDC - TRUSTEE NBP STOCK FUND 1,099,500.00 General Public (Local) 208,182,802
CDC - TRUSTEE APF-EQUITY SUB FUND 75,000.00
General Public (Foreign) 24,458,868
CDC - TRUSTEE JS PENSION SAVINGS FUND - EQUITY ACCOUNT 130,500.00
MC FSL TRUSTEE JS - INCOME FUND 251,500.00 Shareholders holding 5% or more voting interest
MC FSL - TRUSTEE JS GROWTH FUND 1,044,000.00 Pakistan Water and Power Development Authority 354,311,133
CDC - TRUSTEE ALFALAH GHP STOCK FUND 495,000.00 United Bank Limited - Trading Portfolio 67,900,000
CDC - TRUSTEE ALFALAH GHP ALPHA FUND 264,500.00 KAPCO Employees Empowerment Trust 48,252,429
CDC - TRUSTEE NIT STATE ENTERPRISE FUND 526,284.00
CDC - TRUSTEE FIRST HABIB STOCK FUND 123,000.00 None of the CEO, Directors, CFO, Company Secretary, Head of Internal Auditors, Executives and their spouses and minor
CDC - TRUSTEE LAKSON EQUITY FUND 1,040,463.00 children have traded in the shares of the Company during the year ended June 30, 2021
CDC - TRUSTEE NBP MAHANA AMDANI FUND - MT 1,228,500.00
CDC-TRUSTEE UBL INCOME OPPORTUNITY FUND 28,000.00
CDC - TRUSTEE FIRST CAPITAL MUTUAL FUND 60,000.00
No of shares No. of
CDC - TRUSTEE NIT INCOME FUND - MT 100,000.00
Name purchased shares sold
CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 100,000.00
CDC - TRUSTEE AWT INCOME FUND 73,500.00 Mr. Saad Iqbal, Director - 3,700,000
CDC - TRUSTEE ABL PENSION FUND - EQUITY SUB FUND 58,000.00 Mr. M. Rabnawaz Anjum, CFO 5,000 -
CDC - TRUSTEE NBP INCOME OPPORTUNITY FUND - MT 474,500.00
Mr. Waheed Sohail, Executive 25,000 -
CDC-TRUSTEE NITIPF EQUITY SUB-FUND 20,000.00
CDC-TRUSTEE NITPF EQUITY SUB-FUND 13,000.00 Mr. M. Jamal Younus, Executive 50,000 -
CDC - TRUSTEE NBP SAVINGS FUND - MT 38,500.00 Mr. Muhammad Ahmed Javed, Executive 43,500 1,000
ABA ALI HABIB SECURITIES (PVT) LIMITED - MF 103,000.00
CDC - TRUSTEE FAYSAL MTS FUND - MT 37,500.00
CDC - TRUSTEE LAKSON TACTICAL FUND 128,326.00
CDC - TRUSTEE FIRST HABIB ASSET ALLOCATION FUND 35,500.00
CDC - TRUSTEE ALLIED FINERGY FUND 654,500.00
CDC - TRUSTEE HBL INCOME FUND - MT 3,000.00

Excellence
CORPORATE HOLDING 10,000
SHARES AND ABOVE
As on June 30, 2021
MEMBERS NAME NO OF SHARES MEMBERS NAME NO OF SHARES

THE PAKISTAN WATER & POWER DEVELOPMENT AUTHORITY 354311133 EFU GENERAL INSURANCE LIMITED 450000
UNITED BANK LIMITED - TRADING PORTFOLIO 67900000 TEACHERS RETIREMENT SYSTEM OF THE STATE OF ILLINOIS 445500
KAPCO EMPLOYEES EMPOWERMENT TRUST 48252429 TRUSTEES WORLD MEMON FND.COMM.CEN.TRUST 430000
NATIONAL BANK OF PAKISTAN 17000000 ARROWSTREET GLOBAL EQUITY FUND 428000
MCB BANK LIMITED - TREASURY 15662000 CDC - TRUSTEE UNIT TRUST OF PAKISTAN 423000
VANGUARD EMERGING MARKETS STOCK INDEX FUND 7660721 MCBFSL - TRUSTEE JS VALUE FUND 415500
BANK AL HABIB LIMITED 7469500 BANK AL-HABIB LIMITED-ISLAMIC BANKING DIVISION 403500
TRUSTEE - MCB PROVIDENT FUND PAK STAFF 7046000 SIIT-WORLD SELECT EQUITY FUND 327500
STATE LIFE INSURANCE CORP. OF PAKISTAN 6593894 TRUSTEES MOHAMAD AMIN WAKF ESTATE 325000
THE SAUDI PAK INDUSTRIAL & AGRICUL. INVESTMENT CO. LTD.- PMD 6000000 TRUSTEE PAKISTAN PETROLEUM EXECUTIVE STAFF PENSION FUND 311000
TRUSTEE-MCB EMPLOYEES PENSION FUND 5804000 GLOBE MANAGEMENTS (PRIVATE) LIMITED 305000
ADAMJEE INSURANCE COMPANY LIMITED 5731000 FATIMA FERTILIZER COMPANY LTD 300000
MACKENZIE EMERGING MARKETS FUND 5531500 GAZIPURA SECURITIES & SERVICES (PRIVATE) LIMITED 299000
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 4901009 CDC - TRUSTEE JS LARGE CAP. FUND 291000
HABIB BANK LIMITED-TREASURY DIVISION 3947500 CDC - TRUSTEE ALFALAH GHP ALPHA FUND 264500
THE BANK OF PUNJAB, TREASURY DIVISION. 3694000 EDULJEE DINSHAW (PVT.) LIMITED 264000
FAYSAL BANK LIMITED 3643000 NESTLE PAKISTAN LIMITED EMPLOYEES PENSION FUND 254519
DJM SECURITIES LIMITED 3420000 MC FSL TRUSTEE JS - INCOME FUND 251500
NCC - PRE SETTLEMENT DELIVERY ACCOUNT 2702804 MARIAM ALI MUHAMMAD TABBA FOUNDATION 250000
PAK BRUNEI INVESTMENT COMPANY LIMITED 2700000 CAPITAL ONE EQUITIES LIMITED. 206500
BULK MANAGEMENT PAKISTAN (PVT.) LTD. 2645000 VANGUARD FIDUCIARY TRST CO INST TOTAL INTL STCK MRKT IND TRU 203162
ASKARI BANK LIMITED 2519000 ALFALAH INSURANCE COMPANY LIMITED 200000
VANGUARD FIDUCIARY TRUST CO INST TTL INTL STK MK INDX TRU II 2415500 TRUSTEES ALOO&MINOCHER DINSHAW CHR.TRUST 200000
SAMBA BANK LIMITED - MT 1999000 MULTIPLE INVESTMENT MANAGEMENT LTD 200000
PAK-OMAN INVESTMENT COMPANY LTD. - MT 1911500 TRUSTEE NATIONAL REFINERY LTD. MANAGEMENT STAFF PENSION FUND 199761
MCB BANK LIMITED - TREASURY 1816000 UBL INSURERS LIMITED 185000
ACADIAN FRONTIER MARKETS EQUITY FUND 1544500 PAKISTAN TELECOMMUNICATION EMPLOYEES TRUST 183500
TRUSTEES OF FRIENDS EDUCATIONAL AND MEDICAL TRUST 1519000 MOHAMMAD MUNIR MOHAMMAD AHMED KHANANI SECURITIES LIMITED 174000
E. F. U. GENERAL INSURANCE LIMITED 1500000 NESTLE PAKISTAN LTD, EMPLOYEES GRATUITY FUND 170628
CLSA GLOBAL MARKETS PTE. LTD. 1400000 PREMIER INSURANCE LIMITED 165470
CDC - TRUSTEE ATLAS STOCK MARKET FUND 1335000 TRUSTEES HOMMIE&JAMSHED NUSSERWANJEE C.T 150000
VANGUARD FTSE ALL-WORLD EX-US SMALL CAP INDEX FUND 1328108 TRUSTEE PAKISTAN PETROLEUM NON EXECUTIVE STAFF PENSION FUND 145000
MACKENZIE EMERGING MARKETS CLASS 1294500 CDC - TRUSTEE JS PENSION SAVINGS FUND - EQUITY ACCOUNT 130500
DOUBLE RIVER INVESTMENTS LIMITED 1250000 PITC EMPLOYEES TRUST (PENSION) FUND 130000
CDC - TRUSTEE NBP MAHANA AMDANI FUND - MT 1228500 CDC - TRUSTEE LAKSON TACTICAL FUND 128326
NATIONAL INSURANCE COMPANY LIMITED 1181944 RELIANCE INSURANCE COMPANY LTD. 125000
EMPLOYEES OLD AGE BENEFITS INSTITUTION 1151400 MERCHANT CONSTRUCTION CO.(PVT) LIMTIED 125000
THE AGA KHAN UNIVERSITY FOUNDATION 1146530 A. H. M. SECURITIES (PRIVATE) LIMITED 125000
J HOLDINGS (PRIVATE) LIMITED 1125000 CDC - TRUSTEE FIRST HABIB STOCK FUND 123000
CDC - TRUSTEE NBP STOCK FUND 1099500 MOHAMMAD MUNIR MOHAMMAD AHMED KHANANI SECURITIES LTD. - MF 122500
ISMAIL IQBAL SECURITIES (PVT) LTD. 1044500 TRUSTEES OF HAJI MOHAMMED WELFARE TRUST 110000
MC FSL - TRUSTEE JS GROWTH FUND 1044000 TRUSTEES OF SAMAD CHARITABLE TRUST 110000
CDC - TRUSTEE LAKSON EQUITY FUND 1040463 AMIN FEROZ & CO (PRIVATE) LIMITED 109500
ADAMJEE LIFE ASSURANCE COMPANY LIMITED 1012000 CDC - TRUSTEE AKD INDEX TRACKER FUND 108779
ARROWSTREET (CANADA) GLOBAL WORLD ALPHA EXTENSION FUND I 959500 ABA ALI HABIB SECURITIES (PVT) LIMITED - MF 103000
MACKENZIE EMERGING MARKETS SMALL CAP FUND 959000 EFU LIFE ASSURANCE LIMITED 100000
GLOBAL X FUNDS-GLOBAL X MSCI PAKISTAN ETF 840321 CDC - TRUSTEE NIT INCOME FUND - MT 100000
HABIB INSURANCE CO.LIMITED 800000 CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 100000
WESTBURY (PRIVATE) LTD 735000 NASEEM ENTERPRISES & TRADING (PRIVATE) LIMITED 100000
MRA SECURITIES LIMITED - MF 731000 TRUSTEES MCB EMPLOYEES FOUNDATION 100000
CDC - TRUSTEE ALLIED FINERGY FUND 654500 TAHAFFUZ (PRIVATE) LIMITED 100000
J.P. MORGAN SECURITIES PLC 634184 KODVAWALA TRUST 100000
AHSAM SECURITIES (PVT) LIMITED 621000 LAKHANI SECURITIES (PVT) LTD. 100000
AGVEN (PVT.) LIMITED 620000 TRUSTEE PAKISTAN PETROLEUM SENIOR PROVIDENT FUND 100000
BANK ALFALAH LIMITED 600000 PAKISTAN HUMAN DEVELOPMENT FUND 98000
CDC - TRUSTEE HBL ENERGY FUND 579000 TRUSTEE OF PTC STAFF PENSION FUND 91977
AL-ABBAS EDUCATIONAL AND WELFARE SOCIETY 573000 CDC - TRUSTEE ALFALAH GHP VALUE FUND 90000
CDC - TRUSTEE UBL GROWTH AND INCOME FUND 571500 M. N. TEXTILES (PRIVATE) LIMITED 90000
ARROWSTREET (CANADA) GLOBAL WORLD FUND I 555000 TRUSTEES AL-BADER WELFARE TRUST 87000
MACKENZIE EMERGING MARKETS OPPORTUNITIES FUND 539000 128 SECURITIES (PVT) LTD. 85000
CDC - TRUSTEE NIT STATE ENTERPRISE FUND 526284 ANAM FABRICS (PVT) LTD. 80500
MACKENZIE EMERGING MARKETS SMALL CAP MASTER FUND (CAYMAN) LP 516500 ISMAILIA YOUTH SERVICES 80000
VANGUARD TOTAL WORLD STOCK INDEX FUND 514500 CUMBERLAND (PVT) LIMITED 80000
PAK LIBYA HOLDING COMPANY (PVT.) LIMITED 500000 VANGUARD ESG INTERNATIONAL STOCK ETF 77500
LUCKY TEX PAKISTAN (PVT.) LIMITED 500000 GPH SECURITIES (PVT.) LTD. 75500
CDC - TRUSTEE ALFALAH GHP STOCK FUND 495000 CDC - TRUSTEE APF-EQUITY SUB FUND 75000
SURAJ COTTON MILLS LTD. 475000 CDC - TRUSTEE AWT INCOME FUND 73500
CDC - TRUSTEE NBP INCOME OPPORTUNITY FUND - MT 474500 ADAMJEE LIFE ASSURANCE COMPANY LTD. EMPLOYEES GRATUITY FUND 71000

Excellence
CORPORATE HOLDING 10,000
SHARES AND ABOVE
As on June 30, 2021
MEMBERS NAME NO OF SHARES MEMBERS NAME NO OF SHARES

BIPL SECURITIES LIMITED - MF 70500 AL-RAHIM TRADING COMPANY (PRIVATE) LIMITED 25000
TRUSTEES OF PHILIP MORRIS (PAKISTAN) LIMITED E.C.P.F TRUST 69500 FDM CAPITAL SECURITIES (PVT) LIMITED 25000
MRA SECURITIES LIMITED 67000 THE AL-MALIK CHARITABLE TRUST 25000
PEARL ENGINEERING (PVT) LTD 66000 HAMID ADAMJEE TRUST 25000
TRUSTEES OF PAKISTAN HUMAN DEVELOPMENT FUND 66000 N. U. A. SECURITIES (PRIVATE) LIMITED - MF 25000
CDC - TRUSTEE FIRST CAPITAL MUTUAL FUND 60000 MONEYLINE SECURITIES (PRIVATE) LIMITED 22000
NAEL CAPITAL (PVT) LIMITED 60000 TRUSTEES S.M.SOHAIL TRUST 21500
MUHAMMAD TARIQ MOTI SECURITIES (PVT) LTD. 59000 CDC-TRUSTEE NITIPF EQUITY SUB-FUND 20000
CDC - TRUSTEE ABL PENSION FUND - EQUITY SUB FUND 58000 THE PAKISTAN MEMON WOMEN EDUCATIONAL SOCIETY 20000
TRUSTEES OF GHORI TRUST 57000 ORIENTAL SECURITIES (PVT) LTD. 20000
TRUSTEES OF PAKISTAN MOBILE COMMUNICATION LTD-PROVIDENT FUND 57000 MULTILINE SECURITIES LIMITED 20000
TRUSTEE PAKISTAN PETROLEUM JUNIOR PROVIDENT FUND 55000 GROWTH SECURITIES (PRIVATE) LIMITED - MF 20000
MERRILL LYNCH INTERNATIONAL 54500 WAH NOBEL (PRIVATE) LIMITED MANAGEMENT STAFF PENSION FUND 20000
M/S RANG COMMODITIES (PVT) LTD 53500 TRUSTEES TREET CORP LTD-GROUP EMPLOYEES SUPERANNUATION FUND 20000
TRUSTEE OF PTC MANAGEMENT PROVIDENT FUND 52909 THAL LIMITED EMPLOYEES PROVIDENT FUND 19000
ZAHID LATIF KHAN SECURITIES (PVT) LTD. 52500 ASDA SECURITIES (PVT.) LTD. 18500
FIKREES (PRIVATE) LIMITED 51000 DOSSA COTTON & GENERAL TRADING (PVT) LIMITED 17500
KIRAN FOUNDATION 50500 TRUSTEE CHERAT CEMENT CO.LTD.EMP.PRO.FND 15000
GHAF LIMITED 50000 THE PAKISTAN MEMON WOMEN EDUCATIONAL SOC 15000
TRUSTEES SAEEDA AMIN WAKF 50000 TERMINAL ONE LIMITED 15000
FAWAD YUSUF SECURITIES (PVT.) LIMITED 50000 BEGUM AISHA AHMED AND LATIF BAWANY FOUNDATION 15000
FIVE RIVERS TECHNOLOGIES (PVT.) LIMITED 50000 FDM CAPITAL SECURITIES (PVT) LIMITED 15000
MRC TEXTILES (PRIVATE) LIMITED 50000 TRUSTEE KARACHI PARSI ANJUMAN TRUST FUND 15000
SURAJ COTTON MILLS LIMITED 50000 BROADAXIS TECHNOLOGIES (PRIVATE) LIMITED 15000
ARSHAD TEXTILE MILLS LIMITED 50000 TRUSTEES OF MIRPURKHAS SUGAR MILLS LIMITED EMP GRATUITY FUND 15000
MERCHANT INVESTMENTS (PRIVATE) LIMITED 50000 TRUSTEES OF ZENSOFT (PVT) LTD EMPL. PROVIDENT FUND 15000
TRUSTEES OF MIRPURKHAS SUGAR MILLS LTD EMP PROVIDENT FUND 50000 ENGRO FERTILIZERS LIMITED NON-MPT EMPLOYEES GRATUITY FUND 15000
WELLCOME PAKISTAN LIMITED PROVIDENT FUND 50000 TREET CORPORATION LIMITED-GROUP EMPLOYEES PROVIDENT FUND 15000
FATIMA FERT LIMITED MANAGEMENT STAFF PROVIDENT FUND 50000 BACKERS & PARTNERS (PRIVATE) LIMITED - MF 14835
EFG HERMES PAKISTAN LIMITED - MF 46500 PAKISTAN HERALD PUBLICATIONS (PVT) LTD. STAFF PENSION FUND 14000
TRUSTEE PAKISTAN PETROLEUM NON EXECUTIVE STAFF GRATUITY FUND 45500 CDC-TRUSTEE NITPF EQUITY SUB-FUND 13000
MOHAMAD AMIN BROS (PVT) LIMITED 45000 SUNRAYS TEXTILE MILLS LIMITED 13000
HAMID ADAMJEE TRUST 45000 HABIB EDUCATION TRUST STAFF PROVIDENT FUND 13000
BAWA SECURITIES (PVT) LTD. - MF 45000 TRUSTEES MOOSA LAWAI FOUNDATION 12500
NISHAT CHUNIAN LIMITED EMPLOYEES PROVIDENT FUND 44000 AL-FARAN MULTIPURPOSE COOPERATIVE SOCIETY LIMITED 12300
ONTEX PAKISTAN (PRIVATE) LIMITED EMPLOYEES GRATUITY FUND 40500 TRUST SECURITIES & BROKERAGE LIMITED - MF 12000
ALASKA PERMANENT FUND CORPORATION 40500 TRUSTEE-ANPL MANAGEMENT STAFF GRATUITY FUND 12000
AIMNAZ (PRIVATE) LIMITED 40000 HH MISBAH SECURITIES (PRIVATE) LIMITED 11000
TRUSTEES OF ARL MANAGEMENT STAFF PENSION FUND 40000 INA SECURITIES (PVT) LTD 11000
SHAKOO (PVT) LTD. 39500 TRUSTEE-MILLAT TRACTORS LTD. EMPLOYEES PENSION FUND 11000
RAFI SECURITIES (PRIVATE) LIMITED 39450 JUBILEE LIFE INSURANCE COMPANY LIMITED 10500
CDC - TRUSTEE NBP SAVINGS FUND - MT 38500 ZAFAR MOTI CAPITAL SECURITIES (PVT) LTD. 10100
FLOAT SECURITIES (PVT) LIMITED 38000 PAKISTAN MEMON EDUCATIONAL & WELFARE SOC 10000
CDC - TRUSTEE FAYSAL MTS FUND - MT 37500 SIKANDER (PVT) LIMITED 10000
QUADRIA WELFARE TRUST 37000 TRUSTEES OF FAROUKH&ROSHEN KARANI TRUST 10000
TOPLINE SECURITIES LIMITED - MF 37000 BANDENAWAZ (PVT) LTD 10000
CENTURY INSURANCE COMPANY LTD. 36799 TECHNOLOGY LINKS (PVT.) LIMITED 10000
TRUSTEES OF PHILIP MORRIS (PAKISTAN) LIMITED EMPL G.F TRUST 36000 MERIN (PRIVATE) LIMITED 10000
CDC - TRUSTEE FIRST HABIB ASSET ALLOCATION FUND 35500 DALAL SECURITIES (PVT) LTD. 10000
INTERMARKET SECURITIES LIMITED - MF 35000 TRUSTEES OF AL-MUSTAFA TRUST 10000
TRUSTEES PAKISTAN PETROLEUM EXECUTIVE STAFF GRATUITY FUND 35000 NOOR AUTOMOBILES (PVT.) LIMITED 10000
TRUSTEE-FAR EASTERN IMPEX (PRIVATE) LIMITED EMP. PROV. FUND 35000 TRUSTEE-TREET CORPORATION LTD.-GROUP EMP.SUPERANNUATION FUND 10000
RIAZ AHMED SECURITIES (PVT) LTD. 34500 DARSON SECURITIES LIMITED 10000
TRUSTEE-THE KOT ADDU POWER CO. LTD. EMPLOYEES PENSION FUND 34000 PERIDOT PRODUCTS (PVT) LIMITED 10000
TRUSTEES OF KHATIJA ADAMJEE FOUNDATION 33000 BANDENAWAZ (PVT) LTD. 10000
HRSG OUTSOURCING (PVT) LIMITED EMPLOYEES GRATUITY FUND 32000 MUHAMMAD SALIM KASMANI SECURITIES (PVT.) LTD. 10000
AKY SECURITIES (PVT) LTD. 32000 CMA SECURITIES (PVT) LIMITED 10000
TRUSTEE PAK. PETROLEUM EXEC. STAFF PEN. FUND DC CONVENTIONAL 32000 THE TRUSTEES, ZOROASTRIAN CO-OP. HOUSING SOCIETY 10000
TRUSTEE OF PTC EMPLOYEES PROVIDEND FUND 30600 AMIN AGENCIES (PRIVATE) LIMITED 10000
PAKISTAN REINSURANCE COMPANY LIMITED 30000 FAWAD YUSUF SECURITIES (PRIVATE) LIMITED - MF 10000
B & B SECURITIES (PRIVATE) LIMITED 30000 GREAVES PAKISTAN (PRIVATE) LIMITED, EMPLOYEES PROVIDENT FUND 10000
TRUSTEE - FEROZE AND SHERNAZ BHANDARA CHARITABLE TRUST 30000 TRUSTEE-ANPL MANAGEMENT STAFF PENSION FUND 10000
TRUSTEES LEINER PAK GELATINE LTD EMPLOYEES PROVIDENT FUND 30000 TRUSTEES TREET CORP LIMITED-GROUP EMPLOYEES PROVIDENT FUND 10000
FIRST CREDIT & INVESTMENT BANK LIMITED 29500 TRUSTEES TREET CORP LIMITED-GROUP EMPLOYEES GRATUITY FUND 10000
CDC-TRUSTEE UBL INCOME OPPORTUNITY FUND 28000 TRUSTEE - SEAGOLD (PRIVATE) LIMITED EMPLOYEES PROVIDENT FUND 10000
LSE FINANCIAL SERVICES LIMITED - MT 26500 TRUSTEE - GREAVES PAKISTAN (PVT) LTD. - STAFF GRATUITY FUND 10000
YOUSUF YAQOOB KOLIA AND COMPANY (PRIVATE) LIMITED 25500 FATIMA FERT LIMITED WORKERS GRATUITY FUND 10000
ABRIS (PVT) LTD 25000

Excellence
HIGHLIGHTS ORGANIZATIONAL
STRUCTURE*
Complex Net Output - GWh Generation By Fuel % BOARD OF
Actual v Forecast 2020-21
DIRECTORS
4.2
2.4
0.7
0.7
0.5
0.9
0.5
0.4
0.2
0.7
6.9
7.9
9.7
1.5
0.6
2.5
2.4
3.5
3.3
3.2
1.0
0.3
0.2
3.3
9,000 100
13.4
20.9
8,000 90
27.5
62.6
42.4
28.7
27.2
31.8
80
7,000 AUDIT COMMITTEE HR COMMITTEE
33.7
48.3
70
6,000
54.4
41.2
46.6
46.6
47.8
43.3
60
5,000
50
4,000 3,562
40
CHIEF EXECUTIVE
3,000 3,500 30
2,000
81.9
83.5
90.5
92.5
94.4
92.8
84.2
80.9
41.4
56.4
52.7
52.7
51.7
55.8
72.1
86.2
78.9
65.6
44.8
34.2
56.6
71.0
72.6
64.8
20
1,000 10
08-09 10.2
14-15 12.3
15-16 15.8
09-10 6.8
10-11 8.0
11-12 6.9
12-13 3.1
13-14 4.8
0 0
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
16-17
17-18
18-19
19-20
20-21
Actual Forecast
Gas FO HSD
GM Finance GM GM Legal /
/ CFO Engineering Company Secretary
Thermal Efficiency %
Senior Manager
45 Financial Senior Manager
44.4 44.5 Business
44.0
44.2
44.0 44.0 Controller Operations
44 43.7 43.7
44.0 Development
43.3 43.3 43.5 43.5
43.1 43.2
43.0 42.9 Head of Internal Audit
43
42.2 42.2
Internal Auditors (EY)
42.0 42.0 41.8
42 41.6 Senior Manager Senior Manager
Contracts & Commercial &
41
40.2 Procurement Performance
40
39 38.5
38 Senior Manager Senior Manager

HR & CS Maintenance Block - I
37
36
35
Senior Manager
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
Maintenance Block - II
NOP GWh Plant Utilisation % Senior Manager

Maintenance Block - III
85.5
10,000 90
83.4
8,863
80.9
80.4
78.1
9,000
8,292
80
8,135
75.7
8,183
73.6
74.0
7,767
7,545
7,437
69.0
68.7
68.2
8,000
7,335
70
65.0
6,934
62.6
61.2
6,583
6,479
60.2
7,000
6,328
57.6
57.6
58.1
6,117
6,065
56.4
60
56.1
5,899
5,698
52.9
5,688
5,603
51.2
5,521
5,368
6,000
5,089
4,961
4,880
46.0
50
5,000
40 Functional Reporting
35.4
3,562
33.2
3,477
4,000
30 Administrative Reporting
3,000
2,000 20 * Board of Directors’ and Senior Management of the Company.
1,000 10
0 0
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21

Excellence
Sitting From Left to Right
M. Rabnawaz Anjum | Khalid Pervaiz Bajwa | Lt General Muzammil Hussain (Retd.)
Aftab Mahmood Butt | A. Anthony Rath
EXECUTIVE &
MANAGEMENT
COMMITTEES
Executive Committee:
The Executive Committee consists of the Departmental Heads and is chaired by the Chief Executive. Its function include
formulating, reviewing, communicating and managing the delivery of the Company’s strategy; agreeing and recommending
the Business Plan to the Board of Directors; and managing the delivery of the agreed Business Plan. The Executive Committee
meets from time to time to coordinate activities and to take up any matters/issues. Mr. Khalid Pervaiz Bajwa
GM Engineering
Management Committee:
The Management Committee consists of the Departmental Heads and the Senior Managers and is chaired by the Chief
Executive. Its function include in-depth Departmental reviews so as to create synergies within the Company. The Management
Committee meets regularly.
Mr. A. Anthony Rath

GM Legal / Company Secretary
Mr. Aftab Mahmood Butt

Chief Executive
Mr. M. Rabnawaz Anjum

GM Finance / Chief Financial Officer

Excellence
STATEMENT OF COMPLIANCE
WITH LISTED COMPANIES
(Code of Corporate Governance) Regulations, 2019
Name of Company
Audit Committee 16. The statutory auditors of the Company have confirmed
that they have been given a satisfactory rating under
Kot Addu Power Company Limited Mr. Hafiz Muhammad Yousaf Chairman the quality control review programme of the Institute of
Year Ended Chartered Accountants of Pakistan and registered with
Mr. Naveed Asghar Chaudhry Member
Audit Oversight Board of Pakistan; that they and all their
June 30, 2021 Mr. Saad Iqbal Member partners are in compliance with International Federation
Mr. Jamil Akhtar Member of Accountants (IFAC) guidelines on code of ethics
as adopted by the Institute of Chartered Accountants
The Company has complied with the requirements of 6. All the powers of the Board have been duly exercised
of Pakistan and that they and the partners of the firm
the Listed Companies (Code of Corporate Governance) and decisions on relevant matters have been taken by HR Committee involved in the audit are not close relatives (spouse,
Regulations, 2019 (the “Regulations”) in the following the Board/shareholders as empowered by the relevant
parent, dependent and non-dependent children) of the
manner: provisions of the Companies Act, 2017 (the “Act”), the Mr. Aqeel Ahmed Nasir Chairman
Chief Executive, Chief Financial Officer, Head of Internal
Company’s Articles of Association and the Regulations. Mr. Aftab Mahmood Butt Member/Chief Executive
1. The total number of directors are eight (8) as per the Audit, Company Secretary or Directors of the Company.
following: 7. The meetings of the Board were presided over by the Mr. Naveed Asghar Chaudhry Member
17. The statutory auditors or the persons associated with
Chairman and, in his absence, by a Director elected by
a) Male: Seven (7) them have not been appointed to provide other services,
the Board for this purpose. The Board has complied LDS Committee except in accordance with the Act, the Regulations or
with the requirements of Act and the Regulations with
b) Female: One (1) any other regulatory requirements and the auditors have
respect to frequency, recording and circulating minutes Mr. Aqeel Ahmed Nasir Chairman
confirmed that they have observed IFAC Guidelines in
2. The composition of the Board of Directors (the “Board”) of meetings of the Board.
Mr. Aftab Mahmood Butt Member/Chief Executive this respect.
is as follows:
8. The Board has a formal policy and transparent procedure Mr. Saad Iqbal Member
18. We confirm that all requirements of the regulations 3, 6,
for remuneration of Directors in accordance with the Act
Category Names 7, 8, 27, 32, 33 and 36 of the Regulations have been
Independent • Mr. Aqeel Ahmed Nasir
and the Regulations.
Special Committee complied with.
Directors • Mr. Hafiz Muhammad Yousaf 9. Training programmes were arranged for the following
Mr. Naveed Asghar Chaudhry Chairman
• Mr. Saad Iqbal directors:
Mr. Aftab Mahmood Butt Member/Chief Executive For and on behalf of the Board
• Ms. Zunaira Azhar
• Mr. Naveed Asghar Chaudhry
Mr. Aqeel Ahmed Nasir Member
Executive • Mr. Aftab Mahmood Butt (Non-Executive Director)
Directors (Chief Executive)
• Mr. Jamil Akhtar 13. The terms of reference of the Board Committees have
Non-Executive • Lt. General Muzammil Hussain (Retd) (Non-Executive Director)
been formed, documented and advised to members for
Directors • Mr. Naveed Asghar Chaudhry
• Ms. Zunaira Azhar compliance.
• Mr. Jamil Akhtar
(Non-Executive Director) Aftab Mahmood Butt Lt. General Muzammil Hussain (R)
14. The frequency of Board Committee (year ended June
3. The Directors have confirmed that none of them is serving Chief Executive Chairman, Board of Directors
10. The Board has approved the appointment of the Chief 30, 2021) meetings are as follows:
as a director on more than seven listed companies,
including the Company. Financial Officer and Head of Internal Audit including August 17, 2021
Audit Committee Seven (7)
their remuneration and terms and conditions of Lahore
HR Committee Three (3)
4. The Company has prepared a “Code of Conduct’’ and employment and complied with relevant requirements of
LDs Committee Four (4)
has ensured that appropriate steps have been taken to the Regulations. The Company Secretary was appointed
Special Committee One (1)
disseminate it throughout the Company along with its prior to the listing of the Company.
supporting policies and procedures.
11. The Chief Executive and Chief Financial Officer duly 15. The Board has outsourced the internal audit function
5. The Board has developed a vision/mission statement, endorsed the financial statements before approval by to EY Ford Rhodes, Chartered Accountants who are
overall corporate strategy and significant policies of the Board. considered suitably qualified and experienced for
the Company. A complete record of particulars of the purpose and are conversant with the policies and
significant policies along with the dates on which they 12. The Board has formed Board Committees comprising of procedures of the Company.
were approved or amended has been maintained by the following:
Company.

Excellence
INDEPENDENT AUDITOR’S
REVIEW REPORT
To the members of Kot Addu Power Company Limited
Review Report on the Statement of Compliance contained in Listed
Companies (Code of Corporate Governance) Regulations, 2019
INDEPENDENT AUDITOR’S
INDEPENDENT REVIEW REPORT
AUDITOR’S REPORT Review Report on the Statement of Compliance contained in Listed Companies
(Code of Corporate Governance) Regulations, 2019
Report on the Audit of the Financial Statements 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 Kot Addu Power Company Limited 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 Director’s 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
Chartered Accountants
Name of engagement partner: Amer Raza Mir
Lahore
Date: September 24, 2021
A.F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network
23-C, Aziz Avenue, Canal Bank, Gulberg-V, P.O.Box 39, Lahore-54660, Pakistan
Tel: +92 (42) 3571 5868-71 / 3577 5747-50 Fax: +92 (42) 3577 5754 www.pwc.com/pk
KARACHI LAHORE ISLAMABAD
Years of 61
Excellence
INDEPENDENT Following are the key audit matters:
S. No. Key audit matters How the matter was addressed in our audit
AUDITOR’S REPORT (i) Amendment to the Power Purchase Agreement

(Refer notes 2.2 and 8.1 to the financial statements)
Our audit procedures included the following:
• Obtained the Agreements and checked approvals of the
To the members of Kot Addu Power Company Limited relevant authorities (Board of Directors of the Company,
The Power Purchase Agreement (PPA) of the Company was shareholders of the Company, Power Purchaser and
Report on the Audit of the Financial Statements initially for a term of 25 years and due to expire on June 26, Government of Pakistan);
2021.
• Inspected the minutes of the meetings of Board of
Opinion Basis for Opinion However, during the year ended June 30, 2021, the Company
Directors during and subsequent to the year ended June
30, 2021;
signed the Third Amendment to the PPA and Master Agreement
We have audited the annexed financial statements of Kot Addu We conducted our audit in accordance with International (the Agreements) with the Power Purchaser, whereby, the • Examined the letter of understanding signed by the
Power Company Limited (the Company), which comprise the Standards on Auditing (ISAs) as applicable in Pakistan. Our outages due to fuel shortage during the period 2008 to 2016 Power Purchaser and the Company with respect to the
has been treated as Other Force Majeure Event (‘OFME’) transaction;
statement of financial position as at June 30, 2021, and the responsibilities under those standards are further described
under the PPA and consequently, existing Term of PPA has • Matched the amount of revenue recorded as advance
statement of profit or loss, the statement of comprehensive in the Auditor’s Responsibilities for the Audit of the Financial been extended by 485 days, till October 24, 2022. with the underlying supporting documentation;
income, the statement of changes in equity, the statement of Statements section of our report. We are independent of
cash flows for the year then ended, and notes to the financial the Company in accordance with the International Ethics Based on the understanding of both the parties, it has been • Obtained and examined correspondence with relevant
agreed that the amount of Rs 19,287 million representing authorities pertaining to further extension of PPA;
statements, including a summary of significant accounting Standards Board for Accountants’ Code of Ethics for
Capacity Purchase Price (CPP) of the OFME period (485 days) • Obtained the projections for the next 12 months
policies and other explanatory information, and we state that Professional Accountants as adopted by the Institute of
already received will be treated as advance against future CPP. and discussed the underlying assumptions with the
we have obtained all the information and explanations which, Chartered Accountants of Pakistan (the Code) and we have Accordingly, this advance will be adjusted, and the related management of the Company;
to the best of our knowledge and belief, were necessary for fulfilled our other ethical responsibilities in accordance revenue recorded, over the period June 27, 2021 to October
the purposes of the audit. with the Code. We believe that the audit evidence we have 24, 2022 upon satisfaction of the underlying performance • Checked approval of the projection by the Board of
obligation i.e. ensuring the availability of the Plant. Directors of the Company;
obtained is sufficient and appropriate to provide a basis for
In our opinion and to the best of our information and our opinion. • Obtained written representations from the management
Furthermore, as per the Master Agreement the Power regarding their business plans underlying the projection;
according to the explanations given to us, the statement of Purchaser has agreed to extend the PPA for an additional term and
financial position, statement of profit or loss, the statement
of comprehensive income, the statement of changes in
Key Audit Matters following the expiry of the extended term, subject to agreement
of terms and conditions. Moreover, the Company will also
• Assessed the appropriateness of the accounting
treatment and related disclosures in the financial
equity and the statement of cash flows together with the have the option to sell to Bulk Power Consumers under the
Key audit matters are those matters that, in our professional umbrella of a competitive power market which the Government
statements as per applicable accounting and financial
notes forming part thereof conform with the accounting and judgment, were of most significance in our audit of the reporting framework.
of Pakistan intends to create.
reporting standards as applicable in Pakistan and give the financial statements of the current period. These matters
information required by the Companies Act, 2017 (XIX of were addressed in the context of our audit of the financial Signing of the above-mentioned Agreements is a significant
2017), in the manner so required and respectively give a true statements as a whole, and in forming our opinion thereon, event during the year and the evaluation of its impact involves
and fair view of the state of the Company’s affairs as at June significant management judgement, therefore, we considered
and we do not provide a separate opinion on these matters. this as a key audit matter.
30, 2021 and of the profit and other comprehensive income,
the changes in equity and its cash flows for the year then (ii) Contingent Taxation Liabilities Our audit procedures included the following:
ended. (Refer note 12.1.1 and 12.1.2 to the financial statements) • Obtained and examined details of the pending tax
matters and discussed the same with the Company’s
The Company has contingent liabilities in respect of various management;
income and sales tax matters, which are pending adjudication
• Circularized confirmations to the Company’s external tax
before the taxation authorities and the Courts of law.
counsels for their views on open tax assessments and
matters. Furthermore, examined prior years’ precedents
Contingencies require management to make judgments and
of outcomes in favor of the Company at various forums
estimates in relation to the interpretation of laws, statutory
related to matters under consideration which support the
rules, regulations and the probability of outcome and financial
Company’s stance;
impact, if any, on the Company for disclosure and recognition
and measurement of any provision that may be required • Examined correspondence of the Company with the
against such contingencies. relevant authorities including judgements or orders
passed by the competent authorities in relation to the
Due to significance of amounts involved, inherent uncertainties issues involved or matters which have similarities with the
with respect to the outcome of matters and use of significant issues involved;
management judgments and estimates to assess the same • Involved in-house tax specialists to assess management’s
including related financial impacts, we considered contingent conclusion on contingent tax matters and to evaluate the
A.F. FERGUSON & CO., Chartered Accountants, a member firm of the PwC network liabilities relating to income and sales tax, a key audit matter. consistency of such conclusions with the views of the
23-C, Aziz Avenue, Canal Bank, Gulberg-V, P.O.Box 39, Lahore-54660, Pakistan
management and external tax advisors engaged by the
Tel: +92 (42) 3571 5868-71 / 3577 5747-50 Fax: +92 (42) 3577 5754 www.pwc.com/pk
Company; and
• Assessed the adequacy and appropriateness of the
KARACHI LAHORE ISLAMABAD related disclosures in the financial statements.

Excellence
Information Other than the Auditor’s Responsibilities attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are
Report on Other Legal and
Financial Statements and for the Audit of the Financial inadequate, to modify our opinion. Our conclusions are Regulatory Requirements
based on the audit evidence obtained up to the date of
Auditor’s Report Thereon Statements our auditor’s report. However, future events or conditions Based on our audit, we further report that in our opinion:
may cause the Company to cease to continue as a
Management is responsible for the other information. The Our objectives are to obtain reasonable assurance about a) proper books of account have been kept by the
going concern.
other information comprises the information included in the whether the financial statements as a whole are free from Company as required by the Companies Act, 2017 (XIX
annual report, but does not include the financial statements material misstatement, whether due to fraud or error, • Evaluate the overall presentation, structure and content of 2017);
and our auditor’s report thereon. and to issue an auditor’s report that includes our opinion. of the financial statements, including the disclosures,
b) the statement of financial position, the statement of
Reasonable assurance is a high level of assurance, but is and whether the financial statements represent the
profit or loss, the statement of comprehensive income,
Our opinion on the financial statements does not cover not a guarantee that an audit conducted in accordance with underlying transactions and events in a manner that
the statement of changes in equity and the statement of
the other information and we do not express any form of ISAs as applicable in Pakistan will always detect a material achieves fair presentation.
cash flows together with the notes thereon have been
assurance conclusion thereon. misstatement when it exists. Misstatements can arise from
drawn up in conformity with the Companies Act, 2017
fraud or error and are considered material if, individually We communicate with the board of directors regarding,
(XIX of 2017) and are in agreement with the books of
In connection with our audit of the financial statements, our or in the aggregate, they could reasonably be expected to among other matters, the planned scope and timing of the
account and returns;
responsibility is to read the other information and, in doing influence the economic decisions of users taken on the basis audit and significant audit findings, including any significant
so, consider whether the other information is materially of these financial statements. deficiencies in internal control that we identify during our c) investments made, expenditure incurred and guarantees
inconsistent with the financial statements or our knowledge audit. extended during the year were for the purpose of the
obtained in the audit or otherwise appears to be materially As part of an audit in accordance with ISAs as applicable in Company’s business; and
misstated. If, based on the work we have performed, we Pakistan, we exercise professional judgement and maintain We also provide the board of directors with a statement d) zakat deductible at source under the Zakat and Ushr
conclude that there is a material misstatement of this other professional skepticism throughout the audit. We also: that we have complied with relevant ethical requirements Ordinance, 1980 (XVIII of 1980), was deducted by the
information, we are required to report that fact. We have regarding independence, and to communicate with them Company and deposited in the Central Zakat Fund
nothing to report in this regard. • Identify and assess the risks of material misstatement of all relationships and other matters that may reasonably be established under section 7 of that Ordinance.
the financial statements, whether due to fraud or error, thought to bear on our independence, and where applicable,
design and perform audit procedures responsive to related safeguards.
Responsibilities of Management those risks, and obtain audit evidence that is sufficient
Other Matter
and Board of Directors for the and appropriate to provide a basis for our opinion. The From the matters communicated with the board of directors, The financial statements of the Company for the year ended
June 30, 2020 were audited by another firm of auditors whose
risk of not detecting a material misstatement resulting we determine those matters that were of most significance
Financial Statements from fraud is higher than for one resulting from error, in the audit of the financial statements of the current period report, dated September 17, 2020, expressed an unmodified
as fraud may involve collusion, forgery, intentional and are therefore the key audit matters. We describe these opinion on those financial statements.
Management is responsible for the preparation and fair
omissions, misrepresentations, or the override of internal matters in our auditor’s report unless law or regulation
presentation of the financial statements in accordance The engagement partner on the audit resulting in this
control. precludes public disclosure about the matter or when, in
with the accounting and reporting standards as applicable independent auditor’s report is Amer Raza Mir.
extremely rare circumstances, we determine that a matter
in Pakistan and the requirements of Companies Act, 2017 • Obtain an understanding of internal control relevant
should not be communicated in our report because the
(XIX of 2017) and for such internal control as management to the audit in order to design audit procedures that
adverse consequences of doing so would reasonably be
determines is necessary to enable the preparation of financial are appropriate in the circumstances, but not for the
expected to outweigh the public interest benefits of such
statements that are free from material misstatement, whether purpose of expressing an opinion on the effectiveness
communication.
due to fraud or error. of the Company’s internal control.
• Evaluate the appropriateness of accounting policies
In preparing the financial statements, management is used and the reasonableness of accounting estimates
responsible for assessing the Company’s ability to continue and related disclosures made by management. A. F. Ferguson & Co
as a going concern, disclosing, as applicable, matters
• Conclude on the appropriateness of management’s use Chartered Accountants
related to going concern and using the going concern basis
of the going concern basis of accounting and, based Lahore
of accounting unless management either intends to liquidate
on the audit evidence obtained, whether a material Date: September 24, 2021
the Company or to cease operations, or has no realistic
uncertainty exists related to events or conditions that
alternative but to do so.
may cast significant doubt on the Company’s ability
to continue as a going concern. If we conclude that a
Board of directors are responsible for overseeing the
material uncertainty exists, we are required to draw
Company’s financial reporting process.

Excellence
FINANCIAL
STATEMENTS
For the year ended June 30, 2021
STATEMENT OF
FINANCIAL POSITION
As at June 30, 2021
2021 2020 2021 2020
Note (Rupees in thousand) Note (Rupees in thousand)
EQUITY AND LIABILITIES ASSETS

CAPITAL AND RESERVES NON-CURRENT ASSETS
Authorised capital Property, plant and equipment 13 3,068,225 4,106,460
3,600,000,000 (2020: 3,600,000,000) ordinary Intangible assets 14 3,529 7,235
shares of Rs 10 each 36,000,000 36,000,000 Right of use assets 15 7,455 19,064
Issued, subscribed and paid up capital Long term loans and deposits 16 6,419 12,508
880,253,228 (2020: 880,253,228) ordinary Staff retirement benefits 17 435,286 –
shares of Rs 10 each 5 8,802,532 8,802,532 3,520,914 4,145,267
Capital reserve 6 444,451 444,451
Unappropriated profit 55,976,628 51,103,528
65,223,611 60,350,511
NON-CURRENT LIABILITIES CURRENT ASSETS
Lease liabilities 7 3,443 11,065 Stores and spares 18 3,181,423 3,855,364
Contract liability 8 4,613,061 – Stock-in-trade 19 5,921,887 2,700,672
Deferred liabilities 9 9,223,790 8,505,835 Trade debts 20 104,622,431 119,903,511
13,840,294 8,516,900 Investments at fair value 21 25,670,360 –
CURRENT LIABILITIES Income tax due from government 1,504,400 1,540,711
Current portion of lease liabilities 7 7,105 14,288 Loans, advances, deposits, prepayments
Current portion of contract liability 8 14,515,237 – and other receivables 22 6,528,658 1,542,408
Finances under mark-up arrangements - secured 10 36,257,334 44,062,195 Cash and bank balances 23 1,283,523 835,246
Trade and other payables 11 17,177,916 20,784,614 148,712,682 130,377,912
Unpaid dividend 4,401,266 –
Unclaimed dividend 810,833 794,671
73,169,691 65,655,768
CONTINGENCIES AND COMMITMENTS 12
152,233,596 134,523,179 152,233,596 134,523,179
The annexed notes from 1 to 42 form an integral part of these financial statements.
Aftab Mahmood Butt M. Rabnawaz Anjum Hafiz Muhammad Yousaf Aftab Mahmood Butt M. Rabnawaz Anjum Hafiz Muhammad Yousaf
Chief Executive Officer Chief Financial Officer Director Chief Executive Officer Chief Financial Officer Director

STATEMENT OF STATEMENT OF
PROFIT OR LOSS COMPREHENSIVE INCOME
For the year ended June 30, 2021 For the year ended June 30, 2021
2021 2020 2021 2020
Note (Rupees in thousand) (Rupees in thousand)
Sales 24 69,636,395 71,543,299 Profit for the year 10,229,424 23,613,193

Adjustment to Capacity Purchase Price 8.1 (19,287,369) –
Net sales 50,349,026 71,543,299 Items that will not be reclassified subsequently to profit or loss:
Cost of sales 25 (45,098,016) (50,065,134) - Re-measurement of net defined benefit obligation - net of tax 365,322 (462,689)
Gross profit 5,251,010 21,478,165
Other comprehensive income / (loss) for the year - net of tax 365,322 (462,689)
Administrative expenses 26 (952,620) (872,749)
Other income 27 13,220,591 20,806,245 Total comprehensive income for the year 10,594,746 23,150,504
Operating profit 17,518,981 41,411,661
Finance cost 28 (3,108,239) (8,457,417)
Profit before tax 14,410,742 32,954,244
Taxation 29 (4,181,318) (9,341,051)

Profit for the year 10,229,424 23,613,193
Earnings per share - basic and diluted Rupees 38 11.62 26.83

STATEMENT OF STATEMENT OF
CHANGES IN EQUITY CASH FLOWS
For the year ended June 30, 2021 For the year ended June 30, 2021
Share Capital Un- Total 2021 2020
capital reserve appropriated Note (Rupees in thousand)
profit
(Rupees in thousand) Cash flows from operating activities
Cash generated from operations 35 47,246,717 30,342,443
Balance as at June 30, 2019 8,802,532 444,451 31,914,164 41,161,147 Finance cost paid (8,420,290) (11,222,512)
Transactions with owners: Taxes paid (3,269,487) (5,032,077)
Final dividend for the year ended Staff retirement benefits paid (549,891) (27,626)
June 30, 2019 - Rs 3.00 per share – – (2,640,760) (2,640,760) Net cash generated from operating activities 35,007,049 14,060,228
Profit for the year – – 23,613,193 23,613,193
Other comprehensive loss:
Cash flows from investing activities
- Re-measurement of net defined benefit
Fixed capital expenditure including acquisition of intangible assets (25,433) (28,726)
obligation - net of tax – – (462,689) (462,689)
Income on bank deposits received 252,055 75,746
Total comprehensive income for the year – – 23,150,504 23,150,504
Net decrease in long term loans and deposits 6,089 12,887
Investments acquired during the year (25,670,360) –
Transactions with owners:
Proceeds from sale of property, plant and equipment 2,761 7,386
Interim dividend for the year ended
Net cash (used in) / generated from investing activities (25,434,888) 67,293
June 30, 2020 - Rs 1.50 per share – – (1,320,380) (1,320,380)
Balance as at June 30, 2020 8,802,532 444,451 51,103,528 60,350,511
Cash flows from financing activities
Profit for the year – – 10,229,424 10,229,424 Repayment of lease liabilities (14,805) (12,729)
Other comprehensive income: Dividend paid (1,304,218) (4,511,369)
- Re-measurement of net defined benefit Net cash used in financing activities (1,319,023) (4,524,098)
obligation - net of tax – – 365,322 365,322 Net increase in cash and cash equivalents 8,253,138 9,603,423
Total comprehensive income for the year – – 10,594,746 10,594,746 Cash and cash equivalents at beginning of the year (43,226,949) (52,830,372)
Cash and cash equivalents at the end of the year 36 (34,973,811) (43,226,949)
Transactions with owners:
Interim dividend for the year ended The annexed notes from 1 to 42 form an integral part of these financial statements.
June 30, 2021 - Rs 1.50 per share – – (1,320,380) (1,320,380)
Interim dividend for the year ended declared
June 30, 2021 - Rs 5.00 per share – – (4,401,266) (4,401,266)
Balance as at June 30, 2021 8,802,532 444,451 55,976,628 65,223,611

NOTES TO THE
FINANCIAL STATEMENTS
1 Legal status and nature of business due and payable during the OFME Period Extension. However, during this extended period, the Company will receive
Kot Addu Power Company Limited (the Company or KAPCO), was incorporated in Pakistan on April 25, 1996 as Energy Payments and other pass-through items.
a public limited company under the Companies Ordinance, 1984 (now Companies Act, 2017). The Company
was listed on April 18, 2005 on Pakistan Stock Exchange Limited. The principal activities of the Company are The Company will also receive its outstanding receivables amounting to Rs 99,002 million due from Power Purchaser
to own, operate and maintain a multi-fuel fired power station with fifteen generating units with a nameplate as on November 30, 2020 in two tranches. Accordingly, pursuant to these Agreements, the Company received Rs
capacity of 1,600 MW in Kot Addu, District Muzaffargarh, Punjab, Pakistan and to sell the electricity produced 39,601 million as the 1st tranche (40%) on June 04, 2021. The remaining amount is expected to be recovered within
therefrom to a single customer, Pakistan Water and Power Development Authority (WAPDA) under a Power six months from the date of the first tranche as per the terms of the Agreements. Further, the Company has provided
Purchase Agreement (PPA) which has been extended by 16 months during the current year and is due to expire a tariff reduction of 11% in escalable portion of CPP between June 04, 2021 and June 26, 2021. The tariff reduction of
on October 24, 2022. WAPDA has irrevocably transferred all of its rights, obligations and liabilities under the 11% will also apply to Variable Operations and Maintenance portion of Energy Purchase Price (EPP) invoicing starting
PPA to Central Power Purchasing Agency Guarantee Limited (CPPA-G) (Power Purchaser) thereunder via from the date of receipt of 1st tranche i.e. June 04, 2021.
Novation Agreement which became effective on May 21, 2021 after approval from the relevant authorities.
Furthermore, as per the Agreements, both the parties will approach the International Chamber of Commerce (ICC)
The Company has a plant site, a corporate office and a registered office. The Company has a plant Tribunal for withdrawal of their respective claims and counter claims relating to the pending liquidated damages
site at Kot Addu, a corporate office located in Lahore and registered office located in Islamabad. disputes. Accordingly, during the year, the Company and CPPA-G filed a joint application before the ICC Tribunal for
withdrawal of claims and counterclaims and termination of the Liquidated Damages Arbitration Proceedings.
2 Basis of preparation In line with the Agreements referred above, the existing PPA will now expire on October 24, 2022. Furthermore, the
2.1 These financial statements have been prepared in accordance with the accounting and reporting standards as Company’s generation license with NEPRA is also due to expire on September 21, 2021.
applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:
However, the management of the Company strongly believes that the PPA will be extended for an additional term
– International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board following the expiry of the extended term since as per the terms of the Master Agreement, the Power Purchaser has
(IASB) as are notified under the Companies Act, 2017; agreed to consent to this, subject to terms and conditions to be mutually agreed. Accordingly, the management has
taken up this matter with the relevant Authorities and initiated the legal formalities in this regard including those required
– Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan for renewal of generation license. The recent correspondences with such Authorities indicate a strong likelihood for
(ICAP) as notified under the Companies Act, 2017; and extension of the PPA beyond the extended term as well as renewal of generation license.
– Provisions of and directives issued under the Companies Act, 2017. The other factors which supports the management’s stance for extension of the PPA and renewal of generation license
are as follows:
Whenever the requirements of the Companies Act, 2017 or the directives issued by the SECP differ with the requirements
of IFRS or IFAS, the requirements of the Companies Act, 2017 and the said directives, shall prevail. • its significance to the Power Purchaser due to its certain distinct capabilities such as being a multi-fuel power
plant, having a black start facility, providing an extensive fuel storage facility and its contribution to the national
2.2 PPA expiry and going concern assumption power grid;
The existing PPA which was initially for a term of 25 years was due to expire on June 26, 2021. In line with terms and
• its strategic location in mid of the country and being a major feeding source for distribution companies of central
conditions of the PPA, the Company had taken-up the matter for renewal / extension or revision of PPA with the Water
and lower Punjab; and
and Power Development Authority (WAPDA) and other relevant quarters of the Government of Pakistan (GoP).
• the remaining useful life of the plant is at least 10 years as per the life assessment study carried out by an
On June 03, 2020, the Government formed a negotiation committee (the Committee) to initiate discussion with
independent foreign consultant in the month of June 2021.
Independent Power Producers (IPPs) on various matters, which inter alia, included tariff concessions and other terms
and conditions of respective PPAs and also to coordinate with other GoP institutions, including Ministry of Energy,
Furthermore, the GoP intends to create a competitive power market. As per the terms of the Master Agreement,
CPPA-G, WAPDA, National Electric Power Regulatory Authority (NEPRA), National Transmission and Dispatch Company
the Company shall actively support and participate in the competitive trading arrangement when it is implemented
(NTDC) etc. for this purpose. After several discussions with the Committee, a Memorandum of Understanding (MoU)
and becomes fully operational. Under this arrangement, the Company will also have the option to sell electricity to
was signed between the Committee and the Company on August 19, 2020.
other Bulk Power Consumers through wheeling arrangements. The Company is currently in discussion with certain
Bulk Power Consumers for supply of electricity. The Company has also shared the technical evaluation of remaining
Subsequent to the MoU, the GoP through notification dated October 7, 2020 constituted the Implementation Committee
useful life of the plant, carried out by an independent foreign consultant referred above with one of the Bulk Power
to finalize the binding agreement based on the MoU referred above. After several discussions with the Implementation
Consumers who is currently evaluating the same.
Committee, WAPDA signed the Third Amendment to the PPA and Master Agreement (the Agreements) on February
11, 2021. Thereafter, these Agreements were approved by the Shareholders of the Company vide an Extra Ordinary
Accordingly, the management believes that the Company will continue as a going concern in the foreseeable future.
General Meeting on March 24, 2021. Furthermore, the required amendments to the Facilitation Agreement and GoP
Therefore, these financial statements have been prepared on a going concern basis.
Guarantee were approved by the Federal Government on May 21, 2021 after which these Agreements were binding
on the relevant parties.
2.3 New accounting standards / amendments and IFRS interpretations that are effective for the year ended June 30, 2021
Pursuant to the terms of these Agreements, the outages due to fuel shortage during the period 2008-2016 have Certain standard amendments and interpretations to approved accounting standards are effective for the accounting
been treated as Other Force Majeure Event (OFME) under the PPA and consequently, existing Term of PPA has been periods beginning on or after July 1, 2020 but are considered not to be relevant or to have any significant effect on the
extended by 485 days (16 months). During this extended period of 16 (sixteen) months (OFME Period Extension), the Company operations and are, therefore, not detailed in these financial statements.
Company has waived and foregone any right to receive payment for any portion of the Capacity Purchase Price (CPP)

NOTES TO THE
2.4 New accounting standards / amendments and IFRS interpretations that are not yet effective 2021 2020
The following standards, amendments and interpretations are only effective for accounting periods, beginning on (Rupees in thousand)
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 De-recognition of property, plant and equipment (2,269,112) (4,023,152)
statements other than certain additional disclosures. Recognition of lease debtor – 2,339,110
Decrease in deferred tax liability 659,741 315,824
2.4.1 Standards or interpretations with no significant impact Effective date (annual period
beginning on or after) Decrease in un-appropriated profit at the beginning of the year (241,153) (3,335,319)
(Decrease) / Increase in profit for the year (1,368,218) 1,967,101
Amendments to IFRS 9 ‘Financial Instruments interest rate benchmarks’ January 01, 2021 Decrease in un-appropriated profit at the end of the year (1,609,371) (1,368,218)
Amendments to IAS 16 ‘Property, Plant and Equipment’, prohibiting

2.5.3 IFRS 2 (Amendment), ‘Share-based Payment – Group Cash-settled Share-based Payment Transactions’ effective for
a company from deducting from the cost of property, plant and
equipment amounts received from selling items produced while the company annual periods beginning on or after January 1, 2010.
is preparing the asset for its intended use. January 01, 2022
The IASB amended IFRS 2 whereby an entity receiving goods or services is to apply this IFRS in accounting for group
cash-settled share-based payment transactions in its financial statements when that entity has no obligation to settle
Amendments to IAS 37 ‘Provisions, Contingent Liabilities and Contingent the share-based payment transaction.
Assets’ regarding the costs to include when assessing whether a contract is onerous. January 01, 2022
On August 14, 2009, the GoP launched Benazir Employees’ Stock Option Scheme (“the Scheme”) for employees of
Annual Improvements 2018-2020 January 01, 2022 certain State Owned Enterprises (SOEs) and non-State Owned Enterprises (non-SOEs) where GoP holds significant
investment. The Scheme is applicable to permanent and contractual employees who were in employment of these
Narrow scope amendments to IFRS 3 January 01, 2022 entities, on the date of launch of the scheme, subject to completion of five years vesting period by all contractual
employees and by permanent employees in certain instances.
Classification of liabilities as current or non-current (Amendments to IAS 1). January 01, 2023
The Scheme provides for a cash payment to employees on retirement or termination based on the price of shares of
Amendments to IAS 8 ‘Accounting policies, changes in accounting estimates and errors’ January 01, 2023 respective entities. To administer this Scheme, GoP transferred 12% of its investment in such SOEs and non-SOEs
to a Trust Fund created for the purpose by each of such entities. The eligible employees would be allotted units by
Other than the aforesaid standards, interpretations and amendments, the IASB has also issued the following standards each Trust Fund in proportion to their respective length of service. On retirement or termination such employees would
which have not been adopted locally by the Securities and Exchange Commission of Pakistan (SECP): be entitled to receive such amounts from Trust Fund in exchange for the surrendered units as would be determined
based on market price for listed entities or breakup value for non-listed entities. The shares relating to the surrendered
IFRS 1 – First Time Adoption of International Financial Reporting Standards
units would be transferred back to GoP.
IFRS 17 – Insurance Contracts
The Scheme also provides that 50% of dividend related to shares transferred to the respective Trust Fund would be
2.5 Standards, amendments and interpretations to existing standards that are not yet effective but applicable / relevant to distributed amongst the unit-holder employees. The balance 50% dividend would be transferred by the respective
the Company’s operations. Trust Fund to Central Revolving Fund managed by the Privatization Commission of Pakistan for payment to employees
2.5.1 The Securities and Exchange Commission of Pakistan (SECP) through S.R.O. 229 (I) / 2019 dated February 14, 2019 against surrendered units. The deficit, if any, in Trust Fund to meet the re-purchase commitments would be met by
notified that the standard IFRS 9, ‘Financial Instruments’ would be effective for reporting period / year ending on or GoP.
after June 30, 2019. However, SECP through S.R.O. 985 (I) / 2019 dated September 30, 2019 granted exemption from
applying expected credit loss based impairment model to financial assets due from the Government till June 30, 2021. The Scheme, developed in compliance with stated GoP Policy of empowerment of employees of SOEs need to be
The management of the Company believes that the application of this standard subsequent to June 30, 2021 will not accounted for by the covered entities, including the Company, under the provisions of amended IFRS 2. However,
have any material impact on the Company. keeping in the view the difficulties that may be faced by entities covered under the scheme, the SECP on receiving
representations from some of entities covered under the Scheme and after having consulted the Institute of Chartered
2.5.2 The Securities and Exchange Commission of Pakistan (SECP) through S.R.O. 24 (I) / 2012 dated January 16, 2012, as Accountants of Pakistan (ICAP), has granted exemption to such entities from the application of IFRS 2 to the Scheme
modified by S.R.O. 986 (I) / 2019 dated September 2, 2019, granted exemption from the application of IFRS 16 ‘Leases’ as per S.R.O. 587 (I) / 2011 dated June 7, 2011.
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. Had the exemption not been granted, the staff costs of the Company for the year would have been higher by Rs 1,032
million (2020: Rs 250 million), profit after taxation would have been lower by Rs 660 million (2020: Rs 160 million),
Under IFRS - 16, the consideration required to be made by lessee CPPA-G for the right to use the asset is to be retained earnings would have been lower by Rs 660 million (2020: Rs 160 million) and earnings per share would have
accounted for as lease under IFRS - 16 ‘Leases’. If the Company were to follow IFRS - 16, the effect on the financial been lower by Rs 0.75 per share (2020: Rs 0.18 per share).
statements would be as follows:
During the year ended June 30, 2021, the Company received letter from GoP dated June 9, 2021, advising the
Company to close-off the Scheme in light of the order / judgement of Honorable Supreme Court of Pakistan. The

NOTES TO THE
detailed order / judgement of Honorable Supreme Court of Pakistan are awaited to proceed for closure of the current tax also includes adjustments, where considered necessary, to provision for tax made in previous years arising
Scheme. As per the management, there will be no material impact of the order on the financial statements of the from assessments framed during the year for such years. Such judgements are reassessed whenever circumstances
Company. have changes or there is new information that affects the judgements. Where, at the assessment stage, the taxation
authorities have adopted a different tax treatment and the Company considers that the most likely outcome will be in
3 Basis of measurement favour of the Company, the amounts are shown as contingent liabilities.
These financial statements have been prepared under the historical cost convention unless otherwise specifically
Previously, income of the Company derived from the power station up to June 27, 2006 was exempt from income tax
stated.
under clause 138 of the Part I of the Second Schedule to the Income Tax Ordinance, 2001. The Company was also
exempt from minimum tax under clause 13(A) of Part IV of the Second Schedule to the Income Tax Ordinance, 2001
The Company’s significant accounting policies are stated in note 4. Some of these significant policies may require the
for the period it continued to be entitled to exemption under clause 138 of the Part I of the Second Schedule i.e. up to
management to make difficult, subjective or complex judgments or estimates. The following is intended to provide an
June 27, 2006. Thereafter, the income of the Company is taxable under the provisions of the Income Tax Ordinance,
understanding of the policies the management considers critical because of their complexity, judgment of estimation
2001.
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
Deferred
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 Deferred tax is accounted for using the liability method in respect of all temporary differences arising from differences
or areas where assumptions and estimates are significant to the financial statements are as follows: between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases
used in the computation of the taxable profit.
a) Staff retirement benefits
Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
The Company uses the valuation performed by an independent actuary as the present value of its retirement benefit
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary
obligations. The valuation is based on assumptions as mentioned in note 4.2.
differences, unused tax losses and tax credits can be utilised.
b) Provision for taxation
Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on
Where there is uncertainty in income tax accounting i.e. when it is not probable that the tax authorities will accept tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is charged or credited to
the treatment, the impact of the uncertainty is measured using either the most likely amount or the expected value the statement of profit or loss, except in the case of items charged or credited to other comprehensive income / equity
method, depending on which method better predicts the resolution of the uncertainty as explained in note 4.1. in which case it is included in other comprehensive income or in the statement of changes in equity as the case may
be.
c) Useful life and residual values of property, plant and equipment
The Company reviews the useful lives, residual values and indicators for impairment of property, plant and equipment 4.2 Staff retirement benefits
on regular basis. Any change in estimates in future years might affect the carrying amounts of the respective items of The main features of the schemes operated by the Company for its employees are as follows:
property, plant and equipment with a corresponding effect on the depreciation charge and impairment.
a) The Company operates an approved funded defined benefit pension scheme for all eligible employees with a qualifying
d) Provision for obsolescence of stores and spares service period of ten years. Monthly contribution is made to the fund on the basis of actuarial recommendation. The
The Company reviews stores and spares inventory items based on the technical evaluation(s) conducted in-house by latest actuarial valuation was carried out as at June 30, 2021. The actual return on plan assets during the year is Rs
the technical team. Provision is recognized against items determined to be obsolete and / or not expected to be used 563 million (2020: Rs 344 million). The actual return on plan assets represents the difference between the fair value of
up till the expiry of PPA term. 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.
e) Investments at fair value
The future contribution rate includes allowances for deficit and surplus. Projected unit credit method, using the
The carrying values of all financial assets and liabilities reflected in these financial statements approximate their fair
following significant assumptions, is used for valuation of the scheme:
values. Fair value is determined on the basis of objective evidence at each reporting date.
– Discount rate: 10.00 percent per annum (2020: 9.25 percent per annum).
4 Significant accounting policies
– Expected rate of increase in salary level: 9.50 percent per annum (2020: 8.75 percent per annum).
The significant accounting policies adopted in the preparation of these financial statements are set out below. These – Expected rate of increase in pension: 5.00 percent per annum (2020: 5.00 percent per annum).
policies have been consistently applied to all the years presented, unless otherwise stated. – Average duration of the plan: 8.75 years (2020: 10.77 years).
– Mortality rates: SLIC 2001 - 2005 Setback 1 Year.
4.1 Taxation
Current Plan assets include long-term Government bonds, term finance certificates of financial institutions, investment in mutual
funds and term deposits with banks. Return on Government bonds and debt is at fixed and floating rates.
Provision of current tax is based on the taxable income for the year determined in accordance with the prevailing law
for taxation of income. The charge for current tax is calculated using prevailing tax rates or tax rates expected to apply The trustees are managing the pension and provident funds as per applicable Trust Deeds, Rules and Regulations
to profit for the year if enacted after taking into account tax credits, rebates and exemptions, if any. The charge for applicable to the fund.

NOTES TO THE
b) The Company also operates an approved funded contributory provident fund for all employees. Equal monthly The Company assesses at each reporting date whether there is any indication that property, plant and equipment may
contributions are made by both the Company and the employees to the fund. be impaired. If such indication exists, the carrying amounts of such assets are reviewed to assess whether they are
recorded in excess of their recoverable amount. Where carrying values exceed the respective recoverable amount,
c) The Company provides medical facilities to its retired employees and eligible dependent family members along with assets are written down to their recoverable amounts and the resulting impairment loss is recognised in income
free electricity. Provisions are made annually to cover the obligation on the basis of actuarial valuation and are charged currently. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Where an
to income. The latest actuarial valuation was carried out as at June 30, 2021. impairment loss is recognised, the depreciation charge is adjusted in the future periods to allocate the asset’s revised
carrying amount over its estimated useful life.
Projected unit credit method, using the following significant assumptions, is used for valuation of these
schemes: Major plant modifications and improvements are capitalised. Overhauls, maintenance and repairs are charged to profit
or loss as and when incurred. The gain or loss on disposal or retirement of an asset, represented by the difference
– Discount rate: 10.00 percent per annum (2020: 9.25 percent per annum). between the sale proceeds and the carrying amount of the asset, is recognised as an income or expense.
– Expected rate of increase in medical cost: 7.75 percent per annum (2020: 7.00 percent per annum).
– Expected rate of increase in electricity benefit:10.00 percent per annum (2020: 9.25 percent per annum). Blades for Gas Turbines are considered a separate category of assets. All blades are depreciated at the annual rate
– Average duration of the plan: 16.10 years (2020: 16.65 years). as mentioned in note 13 regardless of whether they are in use or not. Refurbishment costs are accrued and charged
– Mortality rates: SLIC (2001-05)-1. to profit or loss account.
d) The Company has other long term employee benefits which includes the encashment of frozen leaves for eligible 4.3.1 Change in accounting estimate - useful life of assets
employees and a lumpsum amount payable to staff under Charter of Demand settlement. Frozen leaves can be As described in note 2.2 to the financial statements, the PPA of the Company has been extended for a period of 16
encashed upto 180 days at the time of retirement. Lumpsum amount is payable to staff members at the rate of Rs months, therefore the remaining useful lives of all assets have been revised during the year so that the depreciable
450,000 or Rs 510,000 per person according to the grade of respective staff member at the time of retirement. The amount of assets is written off over the economic life or the extended term of PPA, whichever is lower. Such a change
liability is calculated in present value terms by taking into account the expected date of retirement of employees, the has been accounted for as a change in an accounting estimate in accordance with IAS 8 ‘Accounting Policies,
available balance of frozen leaves and/or the expected salary at the date of retirement. Changes in Accounting Estimates and Errors’.
Retirement benefits are payable to all regular employees on completion of prescribed qualifying period of service Had these useful lives not been changed, the depreciation / amortisation for the year would have been higher by Rs
under these schemes. 1,156 million and profit after tax for the year would have been lower by Rs 821 million (EPS impact – Rs 0.93 per share).
Future profits before tax would increase by Rs 1,156 million as at that date.
The Company’s policy with regard to actuarial gains/losses is to immediately recognise all actuarial losses and gains
in other comprehensive income under IAS 19, ‘Employee Benefits’. 4.4 Intangible assets
4.3 Property, plant and equipment Expenditure incurred to acquire computer software are capitalised as intangible assets and stated at cost less
accumulated amortization and any identified impairment loss. Intangible assets are amortized using the straight
Property, plant and equipment except freehold land are stated at cost less accumulated depreciation and any identified line method so as to write off the depreciable amount of an asset over its estimated useful life at the annual rates
impairment loss. Freehold land is stated at cost less any identified impairment loss. Cost represents the acquisition mentioned in note 14.
price of assets transferred to the Company in accordance with the Transfer Agreement signed between WAPDA and
the Company on June 26, 1996 based on a valuation by M/s Stone and Webster using depreciated replacement cost Research and development expenditure that do not meet the criteria mentioned above are recognised as an expense
basis. as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent
period. Such expenses are charged to ‘cost of sales’ and ‘administrative expenses’ in the statement of profit or loss,
Depreciation on all property, plant and equipment is charged to profit or loss account on the straight line method so as as and when incurred.
to write off the depreciable amount of an asset over the economic useful life or the remaining term of PPA, whichever
is lower, using the annual rates mentioned in note 13 after taking their residual values into account. Amortization on additions to intangible assets is charged from the month in which an asset is acquired or capitalised,
while no amortization is charged for the month in which the asset is disposed off.
The assets’ residual values and estimated useful lives are reviewed at each financial year end and adjusted if impact
on depreciation is significant. For change in accounting estimate for the year ended June 30, 2021, as referred to in The Company assesses at each reporting date whether there is any indication that intangible asset may be impaired.
note 4.3.1, the Company has revised it’s useful lives of assets due to extension of the PPA. The residual values have If such indication exists, the carrying amount of such assets are reviewed to assess whether they are recorded in
been determined based on the expected selling prices of items at the end of the useful lives or expiry of the PPA, excess of their recoverable amount. Where carrying values exceed the respective recoverable amount, assets are
whichever is earlier. written down to their recoverable amounts and the resulting impairment loss is recognised in income currently. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Where an impairment loss
Depreciation on additions to property, plant and equipment is charged from the month in which an asset is acquired is recognised, the amortization charge is adjusted in the future periods to allocate the asset’s revised carrying amount
or capitalised while no depreciation is charged for the month in which the asset is disposed off. over its estimated useful life.

NOTES TO THE
4.5 Capital work-in-progress the Company changes its assessment of whether it will exercise a purchase, extension or termination option. The
corresponding adjustment is made to the carrying amount of the right-to-use asset, or is recorded in profit and loss if
Capital work-in-progress is stated at cost less any identified impairment loss.
the carrying amount of right-to-use asset has been reduced to zero.
4.6 Leases
4.6.3 Lessor accounting
The Company is a lessee for lease contracts related to motor vehicles.
Lease income from operating leases where the Company is a lessor is recognized in income on a straight-line basis
over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the
4.6.1 Right of use assets
underlying asset and recognized as expense over the lease term on the same basis as lease income. The respective
The Company recognises right of use assets at the commencement date of the lease (i.e., the date the underlying asset leased assets are included in the statement of financial position based on their nature.
is available for use). Right of use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount 4.7 Ijarah contracts
of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement
The Company has entered in to Ijarah contracts under which it obtains usufruct of an asset for an agreed period for
date less any lease incentives received. The right of use asset is depreciated on a straight line method over the
an agreed consideration. The Ijarah contracts are undertaken in compliance with the Shariah essentials for such
lease term as this method most closely reflects the expected pattern of consumption of future economic benefits.
contracts prescribed by the State Bank of Pakistan.
The right of use asset is reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease
liability.
Company accounts for its Ijarah contracts in accordance with the requirements of IFAS 2 ‘Ijarah’. Accordingly,
Company as a Mustaj’ir (lessee) in the Ijarah contract recognises the Ujrah (lease) payments as an expense in the
4.6.2 Lessee accounting
profit and loss on straight line basis over the Ijarah term.
At inception of a contract, the Company assesses whether a contract is, or contains, a lease based on whether
the contract conveys the right to control the use of an identified asset for a period of time in exchange for 4.8 Stores and spares
consideration.
Usable stores and spares are valued principally at weighted average cost. Impairment provision is recognised against
items determined to be obsolete and / or not expected to be used up till the expiry of PPA. Items in transit are valued
The lease liability is initially measured at the present value of the future lease payments at the commencement date.
at cost comprising invoice value plus other charges paid thereon.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined,
which is generally the case for leases of the Company, the lessee’s incremental borrowing rate is used, being the rate
Refurbishable items are valued at the lower of cost and net realisable value. Cost of refurbishment is charged to
that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the
the profit or loss account as it is incurred. The item is charged to the profit or loss account when, upon inspection,
right of use asset in a similar economic environment with similar terms, security and conditions.
it cannot be refurbished. Provision is made in the financial statements for obsolete and slow moving stock-in-trade
based on management’s best estimate.
To determine the incremental borrowing rate, the Company:
4.9 Stock-in-trade
– where possible, uses the recent third party financing received by the Company as a starting point, adjusted to
reflect the changes in financing conditions since third party financing was received; Stock-in-trade except for those in transit are valued at lower of cost based on First In First Out (FIFO) and net realisable
value.
– uses expected terms of third party financing based on correspondence with the third party financial institutions,
where third party financing was not received recently; and Materials in transit are stated at cost comprising invoice value plus other charges paid thereon.
– makes adjustments specific to the lease e.g. terms and security. Net realisable value signifies the estimated selling price in the ordinary course of business less costs necessarily to be
incurred in order to make a sale. Provision is made in the financial statements for obsolete and slow moving stock-in-
Lease payments include fixed payments, variable lease payment that are based on an index or a rate, amounts trade based on management’s best estimate.
expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option if the
lessee is reasonably certain to exercise that option, payments of penalties for terminating the lease, if the lease term 4.10 Financial instruments
reflects the lessee exercising that option, less any lease incentives receivable. 4.10.1 Financial assets
In determining the lease term, management considers all facts and circumstances that create an economic incentive In accordance with the requirements of IFRS 9 ‘Financial Instruments’, the Company classifies its financial assets at
to exercise an extension option or not to exercise a termination option. Extension options (or periods covered by amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of the
termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not Company’s business model for managing the financial assets and the contractual cash flow characteristics of the
terminated). While making this assessment, the Company considers significant penalties to terminate (or not extend) financial asset.
as well as the significant cost of business disruption.
a) Financial assets at amortised cost
The lease liability is subsequently measured at amortised cost using the effective interest rate method. It is remeasured Financial assets at amortised cost are held within a business model whose objective is to hold financial assets in order
when there is a change in future lease payments arising from a change in fixed lease payments or an index or rate, to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if flows that are solely payments of principal and interest on the principal amount outstanding. Interest income from these

NOTES TO THE
financial assets, impairment losses, foreign exchange gains and losses, and gain or loss arising on derecognition are ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit
recognised directly in statement of profit or loss. risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within
the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in
As at the reporting date, the Company carries cash and cash equivalents, trade debts, due from related parties and credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the
employees’ advances at amortised cost. exposure, irrespective of the timing of the default (a lifetime ECL).
b) Financial assets at fair value through other comprehensive income For debt instruments at amortised cost (other than trade receivables and contract assets) and fair value through
OCI, the Company applies the low credit risk simplification. At every reporting date, the Company evaluates whether
Financial assets at fair value through other comprehensive income are held within a business model whose objective
the debt instrument is considered to have low credit risk using all reasonable and supportable information that is
is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of
available without undue cost or effort. In making that evaluation, the Company reassesses the internal credit rating of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on
the debt instrument. In addition, the Company considers that there has been a significant increase in credit risk when
the principal amount outstanding.
contractual payments are more than 30 days past due.
As at reporting date, the Company does not hold any debt instruments classified as fair value through other
The Company writes off financial assets when there is information indicating that the amount is not recoverable due
comprehensive income.
to the conflict in invoices with customer. Financial assets written-off may still be subject to enforcement activities
under the Company’s recovery procedures, taking into account legal advice where appropriate. Any recoveries made
c) Financial assets at fair value through profit or loss
against financial assets written-off are recognised in profit or loss.
Financial assets at fair value through profit or loss are those financial assets which are either designated in this
category or not classified in any of the other categories. A gain or loss on debt investment that is subsequently 4.10.3 Financial liabilities
measured at fair value through profit or loss is recognised in statement of profit or loss in the period in which it
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, and
arises.
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.
Financial assets are initially measured at cost, which is the fair value of the consideration given and received
respectively. These financial assets and liabilities are subsequently remeasured to fair value, amortized cost or cost
The Company’s financial liabilities include trade and other payables and loans and borrowings including running
as the case may be. Any gain or loss on the recognition and derecognition of the financial assets and liabilities is
finance facilities.
included in the statement of profit or loss for the period in which it arises.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. Where
As at the reporting date, the Company classifies the investments relating to Pakistan Investment Bond (PIB) and GoP
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
Ijarah Sukuk as fair value through profit or loss.
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
Equity instrument financial assets / mutual funds are measured at fair value at and subsequent to initial recognition.
in the statement of profit or loss.
Changes in fair value of these financial assets are normally recognised in statement of profit or loss. Dividends
from such investments continue to be recognised in statement of profit or loss when the Company’s right to receive
4.11 Offsetting of financial assets and liabilities
payment is established. Where an election is made to present fair value gains and losses on equity instruments in
other comprehensive income there is no subsequent reclassification of fair value gains and losses to statement of Financial assets and liabilities are offset and the net amount is reported in the financial statements only when there is
profit or loss following the derecognition of the investment. a legally enforceable right to set off the recognised amount and the Company intends either to settle on a net basis or
to realise the assets and to settle the liabilities simultaneously.
Financial assets are derecognised when the rights to receive cash flows from the assets have expired or have been
transferred and the Company has transferred substantially all risks and rewards of ownership. Assets or liabilities that 4.12 Long term loans and deposits
are not contractual in nature and that are created as a result of statutory requirements imposed by the Government Loans and deposits are non-derivative financial assets with fixed or determinable payments that are not quoted in an
are not the financial instruments of the Company. active market. They are included in non-current assets for having maturities greater than 12 months after the reporting
date. Initially they are recognised at fair value and subsequently stated at amortized cost.
4.10.2 Impairment of financial assets
The Company recognises an allowance for expected credit losses (ECLs) on financial assets, except for financial 4.13 Trade debts
assets due from Government. ECLs are based on the difference between the contractual cash flows due in accordance Trade debts are carried at a value to be received less an estimate made for loss allowance based on a review of all
with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the outstanding amounts at the year end. Bad debts are written off when identified. Furthermore, the Company holds
original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other the trade debts with the objective of collecting the contractual cashflows and therefore measures the trade debts
credit enhancements that are integral to the contractual terms. The Company performs impairment testing of trade subsequently at amortised cost using the effective interest rate method.
debts relating to Government receivables, using the incurred loss method in accordance with the requirements of IAS
39 ‘ Financial Instruments - Recognition and Measurement’.

NOTES TO THE
4.14 Cash and cash equivalents 4.21 Segment reporting
Cash and cash equivalents are carried in the statement of financial position at cost. For the purpose of cash flow Operating segments are reported in a manner consistent with the internal reports issued to the chief operating decision-
statement, cash and cash equivalents comprise cash in hand, demand deposits, other short term highly liquid maker. The Chief Executive Officer has been identified as the ‘chief operating decision-maker’, who is responsible for
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of allocating resources and assessing performance of the operating segments. Currently the Company is functioning as
change in value and finances under mark-up arrangements. In the statement of financial position, finances under a single operating segment.
mark-up arrangements are included in current liabilities.
4.22 Revenue recognition
4.15 Borrowings Revenue on account of energy is recognised on transmission of electricity to CPPA-G, whereas revenue on account
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently of capacity is recognised when due, using the ‘performance obligation satisfied over time’ approach under IFRS 15
stated at amortized cost, any difference between the proceeds (net of transaction costs) and the redemption value is as the customer simultaneously receives and consumes the benefits provided by the Company’s performance. There
recognised in the profit or loss account over the period of the borrowings using the effective interest method. Finance is no significant financing component attached to the receivables from the customer. Company submits invoices of
costs are accounted for on an accrual basis and are reported under accrued finance costs to the extent of the amount energy and capacity on monthly basis in arrears and have credit period of 25 days.
remaining unpaid.
The true-up income on CPP is recognised upon the receipt of the underlying CPP invoices, wholly or partially as
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of provided in clause 13.4(iv) of Part II of Schedule 6 to the PPA. The true-up income contains ‘Variable Consideration’ as
the liability for at least twelve months after the reporting date. it is subject to significant uncertainties attributable to certain factors. These factors include but not limited to the timing
of receipt of underlying CPP invoices, PKR / USD parity at the time of receipts etc. Since the amount of consideration
4.16 Trade and other payables is highly susceptible to factors outside the Company’s influence, therefore the true-up income is recognised only to
the extent of firmed up consideration.
Liabilities for creditors and other amounts payable are carried at cost which is the fair value of the consideration to be
paid in the future for the goods and / or services received, whether or not billed to the Company.
Interest income is accrued on a time basis, by reference to the amounts outstanding and effective interest rate
applicable.
4.17 Foreign currencies
a) Functional and presentation currency 4.23 Contract liabilities
Items included in the financial statements of the Company are measured using the currency of the primary economic A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
environment in which the Company operates (the functional currency). The financial statements are presented in consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Pak Rupees (PKR), which is the Company’s functional and presentation currency. Figures have been rounded off to Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or
nearest thousand of Rupees, unless otherwise stated. the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs
under the contract.
b) Transactions and balances
Foreign currency transactions are translated into PKR using the exchange rates prevailing at the dates of the 4.24 Contingent liabilities
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the A contingent liability is disclosed when the Company has a possible obligation as a result of past events, whose
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are existence will be confirmed only by the occurrence or non-occurrence, of one or more uncertain future events not
recognised in the profit or loss account. wholly within the control of the Company; or the Company has a present legal or constructive obligation that arises
from past events, but it is not probable that an outflow of resources embodying economic benefits will be required to
4.18 Borrowing costs settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability.
Mark-up, interest and other charges on borrowings are capitalised up to the date of commissioning of the related
property, plant and equipment, acquired out of the proceeds of such borrowings. All other mark-up, interest and other
charges are charged to income.
4.19 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 can be made of the amount of the obligation. Provisions are reviewed periodically and adjusted to
reflect the current best estimates.
4.20 Dividend
Dividend distribution to the Company’s shareholders is recognised as a liability in the period in which the dividends
are declared.

NOTES TO THE
5 Issued, subscribed and paid up capital 7.2. Minimum lease payments have been discounted at an implicit interest rate ranging from 8.5 percent to 17.1 percent
2021 2020 2021 2020 (2020: 12.1 percent to 17.1 percent) per annum to arrive at their present values. The lessee has the option to purchase
(Number of shares) (Rupees in thousand) the assets after expiry of the lease term. Taxes, repairs, replacements and insurance costs are to be borne by the lessee.
253,000 253,000 Ordinary shares of Rs 10 each The amount of future payments of the lease and the period in which these payments will become due are as follows:
fully paid in cash 2,530 2,530
Ordinary shares of Rs 10 each Minimum Future Present value
issued as fully paid for lease finance of lease
880,000,228 880,000,228 consideration other than cash 8,800,002 8,800,002 payment charge liability
880,253,228 880,253,228 8,802,532 8,802,532 (Rupees in thousand)
5.1 There has been no movement in the ordinary share capital of the Company during the year. 2021
Not later than one year 7,660 555 7,105
Ordinary shares of the Company held by associated undertakings are as follows: Later than one year and not later than five years 3,586 143 3,443
2021 2020 11,246 698 10,548
(Number of shares)
2020
Pakistan Water and Power Development Authority (WAPDA) 354,311,133 354,311,133 Not later than one year 15,543 1,255 14,288
KAPCO Employees Empowerment Trust Later than one year and not later than five years 11,614 549 11,065
[Formed under Benazir Employees’ Stock Option Scheme (BESOS)] 48,252,429 48,252,429 27,157 1,804 25,353
402,563,562 402,563,562
2021 2020
5.2 All ordinary shares rank equally with regard to the Company’s residual assets. Holders of these shares are entitled to Note (Rupees in thousand)
dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company.
8
Contract liability
6 Capital reserve Adjustment to CPP 8.1 19,287,369 –
Less: amount recognised as revenue during the year 24 (159,071) –
This represents the value of fuel stock taken over by the Company at the time of take over of Kot Addu Gas Turbine
19,128,298 –
Power Station from WAPDA. The value of stock was not included in the valuation of assets at the time of take over.
Less: current portion of contract liability (14,515,237) –
2021 2020 4,613,061 –
Note (Rupees in thousand)
8.1 Adjustment to CPP
7
Lease liabilities
As described in note 2.2, the Company signed a Master agreement and the Third Amendment to the Power Purchase
Present value of minimum lease payments 7.2 10,548 25,353
Agreement on February 11, 2021 which later became binding on May 21, 2021. Pursuant to the terms and approval
Less: Current portion shown under current liabilities (7,105) (14,288)
of these Agreements, the outages due to fuel shortage during the period 2008 to 2016 have been treated as Other
3,443 11,065
Force Majeure Event (OFME) under the PPA and consequently, existing Term of PPA has been extended by 485 days
(approximately 16 months). Pursuant to a letter of understanding signed by both parties on March 30, 2021, it has
7.1 Reconciliation of carrying amount
been agreed that the amount of Rs 19,287 million representing Capacity Purchase Price (CPP) of the OFME period
The Company has obtained motor vehicles on lease. Reconciliation of the carrying amount is as follows: (485 days) already received will be treated as advance against future CPP. During the OFME extension period, no
2021 2020 CPP invoices will be raised. Accordingly, this advance will be adjusted, and the related revenue will be recorded over
(Rupees in thousand) the period from June 27, 2021 to October 24, 2022 upon satisfaction of the underlying performance obligation i.e.
ensuring the availability of the Plant.
Opening balance 25,353 38,082 2021 2020
Additions during the year – – Note (Rupees in thousand)
Interests on lease liability 1,542 4,133
Payments made during the year (16,347) (16,862) 9
Deferred liabilities
Lease liability as at June 30 10,548 25,353 Deferred taxation 9.1 8,285,535 7,260,685
Current portion shown under current liabilities (7,105) (14,288) Staff retirement benefits 9.2 938,255 1,245,150
Long term lease liability as at June 30 3,443 11,065 9,223,790 8,505,835

NOTES TO THE
2021 2020 Post retirement Post retirement
Note (Rupees in thousand) medical free electricity
2021 2020 2021 2020
9.1
Deferred taxation (Rupees in thousand)
The liability for deferred taxation comprises
of timing differences relating to: The movement in the present
Accelerated tax depreciation 32,655 200,119 value of defined
Provision for store obsolescence (533,033) (533,348) benefit obligation is as follows:
Provision for doubtful debts (86,554) (55,841)
Write back of unpaid liabilities (16,115) (15,397) Present value of defined benefit
Provision for other staff benefits (51,212) (18,937) obligation as at July 1 192,764 175,061 567,338 563,106
Unrealized true-up income 2,068,737 3,025,057 Current service cost 4,054 4,094 11,388 12,899
Unrealized interest income on late payment to CPPA-G 6,797,347 6,846,125 Interest cost for the year 17,905 25,086 52,760 80,821
Unrealized gain on investments 76,769 – Benefits paid during the year (6,633) (4,104) (8,164) (6,924)
Lease liabilities (3,059) (7,352) Remeasurement loss / (gain)
Alternative corporate tax (ACT) – (2,179,741) recognised in other
8,285,535 7,260,685 comprehensive income 4,400 (7,373) (78,560) (82,564)
Present value of defined benefit
obligation as at June 30 212,490 192,764 544,762 567,338
9.1.1 Movement in deferred taxation
Opening balance 7,260,685 958,245
The present value of defined benefit obligation, the fair value of plan assets and the surplus or deficit of post retirement
Credited to statement of profit or loss 1,024,850 6,491,422
medical is as follows:
Credited to other comprehensive income – (188,982)
Post retirement medical
Closing balance 8,285,535 7,260,685
2021 2020 2019 2018 2017
9.2
Staff retirement benefits (Rupees in thousand)
These are composed of:
Pension 17.1 – 402,319 As at June 30
Medical 9.2.1 212,490 192,764 Present value of defined
Free electricity 9.2.1 544,762 567,338 benefit obligations 212,490 192,764 175,061 157,161 141,430
Other long term benefits 9.2.2 181,003 82,729 Fair value of plan assets – – – – –
938,255 1,245,150 Deficit 212,490 192,764 175,061 157,161 141,430
9.2.1 Post retirement Post retirement Experience adjustment

medical free electricity on obligation - loss / (gain) 4,400 (7,373) 1,537 1,154 (12,882)
2021 2020 2021 2020
(Rupees in thousand) The present value of defined benefit obligation, the fair value of plan assets and the surplus or deficit of post retirement
free electricity is as follows:
The amounts recognised are as follows: Post retirement free electricity
Present value of defined benefit 2021 2020 2019 2018 2017
obligation as at June 30 212,490 192,764 544,762 567,338 (Rupees in thousand)
Liability as at July 1 192,764 175,061 567,338 563,106 As at June 30

Charge to profit and loss account 21,959 29,180 64,148 93,720
Present value of defined
Benefits paid during the year (6,633) (4,104) (8,164) (6,924)
benefit obligations 544,762 567,338 563,106 510,575 538,693
(Gain) / loss due to change in
Fair value of plan assets – – – – –
financial assumptions (342) 2,416 1,059 (7,605)
Deficit 544,762 567,338 563,106 510,575 538,693
Loss / (gain) due to change in
experience adjustments 4,742 (9,789) (79,619) (74,959) Experience adjustment
Liability as at June 30 212,490 192,764 544,762 567,338 on obligation - gain (78,560) (82,564) (4,355) (86,535) (9,778)

NOTES TO THE
Year end sensitivity analysis on present value of defined benefit obligation: 2021 2020
Post retirement Post retirement
medical free electricity 9.2.4 Medical and electricity benefits recognised during the year
2021 2020 2021 2020 Amount recognised in profit or loss:
(Rupees in thousand) - Loss on medical recognised 21,959 29,180
- Loss on electricity recognised 64,148 93,720
Discount rate + 0.50% 196,339 177,341 500,910 520,109 Amount recognised in other comprehensive income:
Discount rate - 0.50% 230,361 209,590 594,325 620,845 - Loss / (gain) on medical recognised 4,400 (7,373)
Increase in medical cost / - Gain on electricity recognised (78,560) (82,564)
electricity benefit + 0.50% 215,283 195,410 553,440 577,147
Increase in medical cost / 10Finances under mark-up arrangements - secured
electricity benefit - 0.50% 209,784 189,695 536,382 557,883 - Under conventional finances 21,705,523 20,545,528
Maturity profile of the defined - Under Islamic finances 14,551,811 23,516,667
benefit obligation 10.1 36,257,334 44,062,195
1. Weighted average duration 10.1 Finances under mark-up arrangements available from various commercial banks amount to Rs 29,967 million (2020:
of the benefit (Years) 15.20 15.75 16.10 16.65 Rs 30,572 million) and finances available under musharika and murabaha arrangements amount to Rs 20,400 million
(2020: Rs 24,587 million). The rate of mark-up ranges from 7.0 percent to 10.6 percent (2020: 8.8 percent to 15.1
2. Distribution of timing of benefit percent) per annum on the balances outstanding. In the event, the Company fails to pay the balances on the expiry
payments (time in years) of the quarter, year or earlier demand, mark-up is to be computed at the rate of 20 percent to 24 percent (2020: 20
1 2,236 1,879 5,541 5,160 percent to 24 percent) per annum on the balances unpaid.
2 5,235 4,294 12,875 11,712 10.2 Letters of credit and bank guarantees
3 6,491 5,261 15,666 14,166
Of the aggregate facility of Rs 240 million (2020: Rs 227 million) for opening letters of credit and Rs 2,504 million (2020:
4 7,941 6,477 18,785 17,246
Rs 4 million) for guarantees, the amounts utilised as at June 30, 2021 were Rs 108 million (2020: Rs 83 million) and
5 9,649 7,806 22,211 20,601
Rs 2,504 million (2020: Rs 4 million) respectively.
6 to 10 75,009 62,345 174,329 164,148
10.3 The aggregate running finances, short term finances and letters of credit and guarantees are secured by joint pari
9.2.2 Movement of other long term benefits passu charge over current assets up to a limit of Rs 90,792 million (2020: Rs 90,792 million) and ranking charge over
current assets up to a limit of Rs 1,334 million (2020: Rs 1,334 million).
July 1, Charge for Payments during June 30,
10.4 The finances under mark-up arrangements include Nil (2020: Rs 527 million) payable to Samba Bank Limited, a
2020 the year the year 2021
related party.
(Rupees in thousand)
2021 2020
Other long term benefits: Note (Rupees in thousand)
Provision for leave encashment 65,299 34,697 (11,270) 88,726
Provision for lumpsum payment 11
Trade and other payables
to employees 17,430 87,867 (13,020) 92,277 Trade creditors 11.1 1,619,081 705,209
82,729 122,564 (24,290) 181,003 Accrued liabilities 11.2 670,282 514,915
Liquidated damages payable to CPPA-G 55,025 55,025
Mark-up accrued on:
9.2.3 Risk exposure
- Finances under mark-up arrangements - secured 563,274 1,253,959
Since the scheme is unfunded, consequently exposure of the funds related to medical and electricity benefits are - Lease liabilities 88 147
similar to the risks faced by the Company. - Credit supplies of raw material 9,889,243 14,510,551
10,452,605 15,764,657
Deposits - interest free repayable on demand 11.3 561 1,066
Workers’ Welfare Fund 11.4 378,099 659,091
Differential payable to CPPA-G 11.5 3,938,209 2,800,765
Provident fund payable 11,934 12,264
Others 52,120 271,622
17,177,916 20,784,614

NOTES TO THE
11.1 Trade creditors include payable to Pakistan State Oil Company Limited (PSO) amounting to Nil (2020: Rs 473 million) 2019 for deciding the matter afresh after addressing the question of law involved there. The cumulative tax impact of
and Sui Northern Gas Pipelines Limited (SNGPL) amounting to Rs 1,557 million (2020: Rs 200 million). this issue is approximately Rs 2,263 million.
11.2 Accrued liabilities include Rs 9 million (2020: Rs 5 million) to CPPA-G, an associated undertaking, against purchase (ii) Additional Commissioner Inland Revenue (ACIR) amended the assessment of tax year 2016 and issued order dated
of electricity. October 13, 2017 by disallowing certain expenses and created a demand of Rs 1,162 million which was later reduced
to Rs 1,077 million through rectification order. The Company filed an appeal before CIR(A), which was partially decided
11.3 These represent security deposits received against rent and utility charges of shops rented out in colony. None of in favour of the Company vide order dated January 04, 2018 and the demand was reduced to Rs 779 million.
these deposits is utilisable for Company for other purpose. This amount is kept in separate bank account especially
maintained for such purpose in accordance with the provisions of section 217 of the Companies Act, 2017. Being aggrieved, both the Department and the Company filed appeals before the ATIR. The ATIR proceeded to
uphold the order passed by the learned CIR(A). Being aggrieved both the Department and the Company filed appeals
2021 2020 before the LHC. The LHC remanded the case back to ATIR for fresh proceedings vide order dated February 13, 2019.
(Rupees in thousand) The ATIR partially decided the case in favor of the Company vide order dated December 16, 2020. Being aggrieved,
the Company filed an appeal in LHC which is pending adjudication.
11.4
Movement in Workers’ Welfare Fund is as follows:
Opening balance 659,091 397,052 (iii) ACIR amended the assessment of tax year 2018 vide order dated May 28, 2019 and created a demand of Rs 277
Provision made during the year 378,099 659,091 million by disallowing certain expenses. The Company filed an appeal before CIR(A) against the said order, which
1,037,190 1,056,143 was partially decided in favor of the Company vide order dated July 23, 2019. Being aggrieved, the Company filed an
Payment made during the year (659,091) (182,030) appeal before ATIR, which is pending adjudication.
Adjustment – (215,022)
Closing balance 378,099 659,091 (iv) ACIR re-initiated proceedings for the tax year 2018 and created a demand of Rs 1,121 million by charging tax on true-
up income on accrual basis instead of receipt basis. The Company filed an appeal before CIR(A), which was decided
11.5 This represents income tax differential payable to the Power Purchaser in accordance with clause 6.7 and 6.15(a) of against the Company vide order dated May 28, 2020. Consequently, the Deputy Commissioner Inland Revenue
Part I of Schedule 6 of PPA on account of difference in income tax rate as provided for in the PPA and the current tax issued recovery notice. Being aggrieved, the Company filed appeal before ATIR, which is pending fixation along with
rate as applicable to the Company. the stay of demand.
12 Contingencies and commitments (v) ACIR amended the assessment of tax year 2019 vide order dated March 05, 2020 and created a demand of Rs
2,203 million on account of chargeability of tax on true-up income, late payment income from Power Purchaser and
12.1 Contingencies
inadmissibility of certain deductions and tax credits under section 65B. The Company filed an appeal before CIR(A),
12.1.1 Income Tax which was partially decided in favor of the Company vide order dated May 28, 2020 and the demand was reduced to
Following are the various contingencies relating to Income Tax matters: Rs 1,604 million. Being aggrieved, the Company filed an appeal before ATIR which is pending adjudication.
(i) Income tax returns of the Company for tax years 2003 to 2007 were filed, wherein, only normal tax depreciation was (vi) ACIR amended the assessment of tax year 2020 vide order dated February 01, 2021 and created a demand of Rs
claimed. However, the aforesaid returns were revised thereby depreciation and initial allowance earlier claimed in 6,121 million on account of chargeability of tax on true-up income, late payment income from Power Purchaser and
respect of assets in the original income tax returns for tax periods upto June 27, 2006 were not claimed being the date inadmissibility of few deductions by disallowing certain expenses. Being aggrieved, the Company filed an appeal in
upto which the Company was exempt from levy of income tax. CIR(A) against the said order, which is pending fixation.
Tax depreciation in income tax return for tax year 2008 was also claimed with resultant written down value carried (vii) The Deputy Commissioner Inland Revenue (DCIR) issued an order dated June 10, 2021 for non-payment of third
forward from tax year 2007, as computed in the revised return of income in accordance with position explained quarter advance tax under section 147 of the Income Tax Ordinance, 2001 by creating a demand of Rs 1,510 million.
above. Such return and revised returns for tax year 2003 to 2007 were amended by Tax Authorities by restoring the DCIR rejected KAPCO’s filed estimate of the taxable income on the premise that expense claimed as result of third
earlier position and were also endorsed by Commissioner Inland Revenue (Appeals) ‘CIR(A)’. The Company preferred amendment to PPA amounting to Rs 19,287 million is a penalty and hence disallowed. Being aggrieved, Company
appeal before Appellate Tribunal Inland Revenue (ATIR) against the decision of CIR(A) which was decided in the filed an appeal before CIR(A), which is pending fixation.
Company’s favor on April 14, 2012.
The management and taxation expert of the Company believes that there are meritorious grounds to defend the
Subsequently, the Tax Department (Department) filed miscellaneous application for rectification before ATIR which above mentioned demands relating to the respective cases, consequently, no provision for current taxation has been
was decided against the Company. Being aggrieved, the Company filed reference with the Honorable Lahore High recorded in these financial statements with respect to the above matters.
Court (LHC) against this order. LHC proceeded to set aside the miscellaneous applications and declared the same
to be pending before ATIR vide order dated November 12, 2018. Being aggrieved, the Company applied for leave of
appeal from the Honorable Supreme Court of Pakistan, which was remanded back to LHC vide order dated August 9,

NOTES TO THE
12.1.2 Sales Tax Certain amendments were introduced in Finance Act 2006, to relax the conditions of payment of interest and penalty
for companies defaulting in creating a Fund under the Act. If it is established that Workers’ Profit Participation Fund
Following are the various contingencies relating to Sales Tax matters:
(WPPF) is applicable to the Company and Company makes the principal payment on or before the date which is yet
(i) The Department issued a sales tax order against the Company for the financial period from June 2008 to June 2013
to be decided by the Federal Government, no such penalty may be imposed and the Company may not be liable to
and created a demand of Rs 10,102 million by apportioning input sales tax between CPP invoices and EPP invoices
pay interest.
and allowed input sales tax allocated to EPP invoices only. Against the foregoing order, the Company filed an appeal
before CIR(A) which was partially decided against the Company. However, CIR(A) instructed the Department to rectify
In view of the foregoing, the Company did not make any provision for Workers’ Profit Participation Fund and interest
the demand by deleting the sales tax liability in respect of tax periods beyond five years, resulting in reduction of
thereon in the financial statements up to June 30, 2006.
demand by Rs 1,481 million. Being aggrieved, the Company filed an appeal before ATIR against the CIR(A) order
which was also decided against the Company. The Company filed petition with LHC against ATIR decision.
Subsequent to the amendments in Finance Act 2006, the Company had established the KAPCO Workers’ Profit
Participation Fund in March 2008 to allocate the amount of annual profits stipulated by the Act for distribution amongst
The Department also created a demand of Rs 2,933 million for the financial period July 2013 to June 2014 pertaining
workers eligible to receive such benefits under the Act. Accordingly, contributions to WPPF were duly made up to the
to aforementioned issue of apportionment of input tax. The Company filed an appeal before CIR(A) who remanded
year ended June 30, 2015.
back the demand of Rs 2,933 million till adjudication of petition from LHC on inadmissibility of input tax on Capacity
invoices.
In 2017, the Honorable Supreme Court of Pakistan decided that amendments in Workers’ Welfare Fund Ordinance,
1971 and Companies Profit (Workers Participation) Act, 1968 cannot be introduced through Finance Act, thereby, the
The LHC vide its judgement dated October 31, 2016 decided the case in favor of the Company and Company has
said amendments made through the Finance Act 2006 are void ab initio. Subsequently, the Commissioner Inland
received the refund from Federal Board of Revenue (FBR) out of the refunds which were withheld by the Department
Revenue (Peshawar) filed a review petition in the Honorable Supreme Court of Pakistan against the said decision in
due to above mentioned apportionment issue. The Department has filed civil petition for leave to appeal (CPLA) in the
case of another company, which is pending adjudication.
Honorable Supreme Court of Pakistan against the decision of LHC, which is pending adjudication.
Pursuant to the 18th Amendment to the Constitution of Pakistan, the matter of WPPF is now a devolved subject and
(ii) DCIR issued an assessment order dated August 05, 2020 by rejecting the credit notes claimed by the Company
under provincial jurisdiction.
during the tax period from October 2014 to November 2016 and created a demand of Rs 1,100 million. KAPCO filed
an appeal before CIR(A). Consequently, the matter was remanded back to CIR for fresh adjudication. CIR finalized the
Accordingly, in the year ended June 30, 2018, the Government of Punjab issued Companies Profits (Workers’
remand back proceedings and confirmed the aforesaid demand vide order dated June 30, 2021. Subsequent to the
Participation) (Amendment) Ordinance 2018 and accordingly the Company made contribution to WPPF for the year
year end, the Company has filed an appeal with CIR(A).
ended June 30, 2018. During the year ended June 30, 2019, this Ordinance expired and no further enactment has
been made by the Government of Punjab till date. Keeping in view this, the contribution of WPPF for the year ended
(iii) For tax year 2004-2009, a show cause notice was issued by the DCIR in 2015 rejecting KAPCO’s deferred refund
June 30, 2018 amounting to Rs 790 million was refunded to the Company by the Fund / Trust during the year ended
amounting to Rs 61 million. The Company filed an appeal before CIR(A) who vide its order dated January 30, 2020
June 30, 2019. Further, no contribution has been made for the years ended June 30, 2020 and June 30, 2021.
remanded the case back to DCIR for fresh verification of all the documents pertaining to refund. Subsequently, DCIR
issued an assessment order dated June 25, 2021 wherein all the deferred refunds of the Company were rejected
In case the liability materializes, the cumulative principal amount of WPPF for the year ended June 30, 2016 upto
along with imposition of penalty. Being aggrieved, the Company has filed an appeal with CIR(A) against the said
the year ended June 30, 2021 would amount to Rs 5,362 million (2020: Rs 4,642 million). If it is established that the
order.
scheme is applicable to the Company and the Company is liable to pay contribution to the Workers’ Welfare Fund,
then these amounts would be recoverable from the Power Purchaser as a pass-through item under the provisions of
The management and taxation expert of the Company believe that there are meritorious grounds to defend the above
PPA.
mentioned demands relating to the respective cases, consequently, no provision has been recorded in these financial
statements with respect to the above matters.
(ii) Sui Northern Gas Pipelines Limited (SNGPL) has raised claims of late payment surcharge amounting to Rs 766 million
(2020: Rs 775 million). The management is of the view that these claims are not as per the underlying agreements,
12.1.3 Others
therefore such claims have been disputed.
(i) Before introduction of amendments in Finance Act 2006, the Company had not established Workers’ Profit Participation
Fund under the Companies Profit (Workers’ Participation) Act, 1968 (the Act) based on the opinion of the legal advisor The management and the legal advisor of the Company believe that there are meritorious grounds available to defend
that it did not employ any person who fell under the definition of Worker as defined in the Act. the foregoing claims. Consequently, no provision has been recorded in these financial statements.
Further, the question whether a company to which the Act and its scheme applies but which does not employ any (iii) The Company has provided bank guarantees in favor of SNGPL on account of payment of dues against gas sales
worker is nevertheless obliged to establish and pay contributions into the Fund under the Act and thereafter transfer etc., amounting to Rs 2,504 million (2020: Rs 4 million).
the same to the Fund established under the WWF Ordinance, 1971 is subjudice before the Sindh High Court, as the
Supreme Court of Pakistan accepted the petition of another company and remanded the case to the Sindh High Court
for fresh decision in accordance with its order.

NOTES TO THE
12.2 Commitments 13.1 The depreciation charge for the year has been allocated as follows:
(i) Contracts for capital expenditure are Rs 4 million (2020: Rs 21 million). 2021 2020
(ii) Letters of credit other than for capital expenditure are Rs 108 million (2020: Rs 88 million).
(iii) Contracts for car ijarah are Rs 47 million (2020: Rs 54 million). The future aggregate payments under Ijarah arrangement Cost of sales 25 1,030,686 2,169,153
are as follows: Administration expenses 26 36,694 85,923
2021 2020 1,067,380 2,255,076
13.2 Disposal of property, plant and equipment of book value exceeding Rs 500,000
Not later than one year 17,147 15,308
Later than one year and not later than five years 29,851 38,989 2021
Later than five years – – Accumulated Sale Gain /
46,998 54,297 Particulars of assets Sold to Cost depreciation Book value proceeds (Loss) Mode of disposal
13 Property, plant and equipment

Employee
Freehold Buildings on Plant and Gas Auxiliary Office Fixtures Vehicles Total Honda City Aspire Mr. Naubahar Shah 1,844 (1,135) 709 1,298 589 Company Policy
land freehold machinery turbine plant and equipment and
land blading machinery fittings 2020
(Rupees in thousand) Employee
Toyota Corolla GLI Mr. Khalid Naseem 2,093 (963) 1,130 1,738 608 Company Policy
Net carrying value basis
Year ended June 30, 2021
2021 2020
Opening net book value (NBV) 100,773 85,536 3,237,713 607,087 46,531 11,247 136 17,437 4,106,460
(Area in kanals)
Additions (at cost) – – – 23,024 345 2,064 – – 25,433
Transfers from leased assets at NBV – – – – – – – 5,957 5,957
13.3 Description Location
Disposals / adjustments (at NBV) – (45) – – (28) – (1) (2,171) (2,245)
Plant site Kot Addu, District Muzaffargarh, Pakistan 3,081 3,081
Depreciation charge – (36,637) (626,393) (381,745) (14,991) (7,557) (57) – (1,067,380)
Corporate office Lahore, Pakistan 2 2
Closing net book value (NBV) 100,773 48,854 2,611,320 248,366 31,857 5,754 78 21,223 3,068,225
Land (Plot) Islamabad, Pakistan 1 1
Gross carrying value basis
As at June 30, 2021
2021 2020
Cost 100,773 893,386 35,513,576 9,085,875 427,631 148,604 17,843 112,350 46,300,038
Accumulated depreciation – (844,532) (32,902,256) (8,837,509) (395,774) (142,850) (17,765) (91,127) (43,231,813)
Net book value (NBV) 100,773 48,854 2,611,320 248,366 31,857 5,754 78 21,223 3,068,225
Depreciation rate % per annum – 4 - 29.3 4 - 17.65 10 - 46.15 20 - 46.15 20 - 60.0 20 - 27.27 25 - 31.6
13.4
Assets not in possession
of the Company
Net carrying value basis
Description Party
Year ended June 30, 2020
Gas turbine rotor GE Energy Manufacturing
Opening net book value (NBV) 100,773 171,083 4,699,747 1,278,234 47,933 20,736 294 18,295 6,337,095
Technology Centre, Saudi Arabia 61,650 –
Additions (at cost) – – – 2,184 22,716 2,897 – – 27,797
Blades & vanes Ethos Energy Italia, Italy – 275,132
Transfers from leased assets at NBV – – – – – – – 3,174 3,174
61,650 275,132
Disposals / adjustments (at NBV) – – – (2,229) (199) (126) - (3,976) (6,530)
Depreciation charge – (85,547) (1,462,034) (671,102) (23,919) (12,260) (158) (56) (2,255,076)
Closing net book value (NBV) 100,773 85,536 3,237,713 607,087 46,531 11,247 136 17,437 4,106,460
Gross carrying value basis
As at June 30, 2020
Cost 100,773 893,661 35,513,576 9,062,852 427,853 146,663 18,075 93,421 46,254,822
Accumulated depreciation - (808,125) (32,275,863) (8,455,765) (381,322) (135,416) (17,939) (75,984) (42,148,362)
Net book value (NBV) 100,773 85,536 3,237,713 607,087 46,531 11,247 136 17,437 4,106,460
Depreciation rate % per annum – 4 - 48.0 4 - 29.3 10 - 80.0 20 - 92.3 20 - 92.3 20 - 42.9 25 - 31.6
The cost of fully depreciated assets which are still in use as at June 30, 2021 is Rs 5,039 million (2020: Rs 4,269 million).

NOTES TO THE
2021 2020 2021 2020
(Rupees in thousand) Note (Rupees in thousand)
14 Intangible assets 16
Long term loans and deposits
Net carrying value basis of computer software Loans to employees - considered good 16.1 509 10,647
Year ended June 30 Security deposits 10,646 13,223
Opening net book value (NBV) 7,235 4,252 11,155 23,870
Additions (at cost) – 5,916 Less: Receivable within one year (4,736) (11,362)
Adjustment (696) – 6,419 12,508
Amortisation charge (3,010) (2,933)
Closing net book value 3,529 7,235 16.1 These represent unsecured loans to non-executive employees for the purchase of plot, car, construction of house
etc. and are repayable in monthly installments over a maximum period of 120 months. These loans carry interest of 9
Gross carrying value basis of computer software percent per annum (2020: 9 percent per annum). Included in loans to employees are loans amounting to Nil (2020:
Cost 65,841 66,537 Rs 0.03 million) given to employees who were victims of flood. These are interest free and repayable up to 10 years.
Accumulated amortisation (62,312) (59,302)
Net book value 3,529 7,235 2021 2020
Amortisation rate % per annum 20 - 41.38 20 - 92.3 Note (Rupees in thousand)
14.1 Amortisation charge for the year has been allocated to cost of sales. 17 Post retirement benefits
Pension asset / (liability) 17.1 435,286 (402,319)
14.2 The cost of intangible assets as on June 30, 2021 include fully amortised assets which are still in use amounting to
Rs 55 million (2020: Rs 53 million). 17.1 Pension
The amounts recognised are as follows:
14.3 The intangible assets primarily comprise of computer software and systems purchased that have been implemented
to integrate the different functions of the Company. Fair value of plan assets 3,846,875 2,974,569
Present value of defined benefit obligation (3,411,589) (3,376,888)
2021 2020 Asset / (liability) as at June 30 435,286 (402,319)
(Asset) / liability as at July 1 (402,319) 348,784
15 Right of use assets Charge to profit or loss account (111,383) (13,331)
Net carrying value basis Contribution paid by the Company 508,496 3,839
Year ended June 30 Remeasurement gain / (loss) recognised in other comprehensive income 440,492 (741,611)
Opening net book value (NBV) 19,064 34,721 Asset / (liability) as at June 30 435,286 (402,319)
Additions (at cost) – –
Transfers / disposals (at NBV) (5,957) (3,174) The movement in the present value of defined benefit obligation is as follows:
Depreciation charge (5,652) (12,483)
Closing net book value 7,455 19,064 Present value of defined benefit obligation as at July 1 3,376,888 2,475,094
Gross carrying value basis Current service cost 73,060 59,830
Cost 29,796 57,883 Interest cost for the year 307,430 344,338
Accumulated depreciation (22,341) (38,819) Benefits paid during the year (198,930) (197,197)
Net book value 7,455 19,064 (Gain) / loss due to change in financial assumptions (130,178) 681,491
Depreciation rate % per annum 25 25-34.3 (Gain) / loss due to change in experience adjustments (16,681) 13,332
Present value of defined benefit obligation as at June 30 3,411,589 3,376,888
15.1 Depreciation charge for the year has been allocated to administrative expenses.
15.2 The cost of fully depreciated assets which are still in use as at June 30, 2021 is Rs 15 million (2020: Rs 10 million).
15.3 The lease contracts that the Company has are related to motor vehicles.

NOTES TO THE
2021 2020 2021 2020
(Rupees in thousand) (Rupees in thousand)
The movement in fair value of plan assets is as follows: Maturity profile of the defined benefit obligation
Fair value as at July 1 2,974,569 2,823,878 1. Weighted average duration of the benefit (Years) 8.75 10.77
Expected return on plan assets 269,107 390,837
Contribution paid by the Company 508,496 3,839 2. Distribution of timing of benefit payments (time in years)
Benefits paid during the year (198,930) (197,197) 1 164,991 182,121
Remeasurement gains / (losses) on plan assets 293,633 (46,788) 2 427,594 199,633
Fair value as at June 30 3,846,875 2,974,569 3 295,091 521,224
4 343,329 289,198
2021 2020 5 312,875 328,331
6 to 10 1,931,473 1,812,450
Plan assets are comprised as follows:
Mutual funds 42% 42% 17.2 Funding
Interest bearing instruments 56% 51%
The pension plan is fully funded by the Company. The funding requirements are based on the pension fund’s actuarial
Other 2% 7%
measurement framework set out in the funding policies of the plan. The funding is based on a separate actuarial
100% 100%
valuation for funding purposes for which the assumptions may differ from the assumptions used in determining
defined benefit liability. Employees are not required to contribute to the plan.
The present value of defined benefit obligation, the fair value of plan assets and the surplus or deficit of pension fund
is as follows:
17.3 Expected future costs
2021 2020 2019 2018 2017
(Rupees in thousand) Expected future contributions for the year ending June 30, 2021 is Nil (2020: Rs 402 million).
As at June 30 17.4 The sensitivity analysis is prepared using same computation model and assumptions as used to determine defined
Fair value of plan assets 3,846,875 2,974,569 2,823,878 2,819,945 2,939,808 benefit obligation based on Projected Credit Unit Method.
Present value of defined
benefit obligations (3,411,589) (3,376,888) (2,475,094) (2,938,507) (2,880,932) 17.5 Risk Exposure
Surplus / (deficit) 435,286 (402,319) 348,784 (118,562) 58,876 Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:
Experience adjustment
on obligation - (gain) / loss (146,859) 694,823 (683,418) (135,521) 42,297 Interest rate risk - The present value of the defined benefit plan is calculated using a discount rate determined by
Experience adjustment reference to the market yields at the end of the reporting period on high quality corporate bonds, or where there is no
on plan assets - gain / (loss) 293,633 (46,788) (173,364) (246,426) 120,149
deep market in such bonds, by reference to market yields on government bonds. Currencies and terms of bond yields
used must be consistent with the currency and estimated term of the post-employment benefit obligations being
Year end sensitivity analysis on present value of defined benefit obligation:
discounted. A decrease in bond interest rates will increase the liability, and vice versa.
2021 2020
Salary rate risk - The present value of the defined benefit plan is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the liability and vice versa.
Discount rate + 0.50% 3,262,351 3,195,036
Discount rate - 0.50% 3,574,086 3,527,190
Pension rate risk - The present value of the defined benefit plan is calculated after taking into account the future
Increase in salary level + 0.50% 3,428,720 3,373,126
pension growth of plan participants. As such, an increase in the pension growth rate of the plan participants will
Increase in salary level - 0.50% 3,394,940 3,334,754
increase the liability and vice versa.
Increase in pension + 0.50% 3,525,293 3,472,032
Increase in pension - 0.50% 3,306,417 3,244,523
Withdrawal rate risk - The present value of the defined benefit plan is calculated by reference to the best estimate
of the withdrawal rate / attrition rate of plan participants. As such, an increase in the withdrawal rate may increase /
decrease the liability and vice versa depending on the age-service distribution of the exiting employees.

NOTES TO THE
Mortality rate risk - The present value of the defined benefit plan is calculated by reference to the best estimate of 20.1 Trade debts include an overdue amount of Rs 81,260 million (2020: Rs 99,362 million) receivable from CPPA-G, an
the mortality of plan participants during employment. An improvement in the mortality rates of the participants may associated undertaking. The maximum aggregate amount outstanding during the year was Rs 132,903 million (2020:
increase the liability. Rs 129,750 million).
2021 2020 The trade debts are Pakistan rupee denominated and secured by sovereign guarantee from the Government of
Note (Rupees in thousand) Pakistan under the Facilitation Agreement. These are in the normal course of business and are interest free, however,
a late payment surcharge of SBP discount rate plus 4 percent per annum is charged in case the amounts are not paid
17.6 Defined benefit obligation recognised during the year within due dates (25~30 days from invoice date) as prescribed in the PPA i.e. default by the Power Purchaser in timely
Gain recognised in profit or loss 111,383 13,331 payment.
Gain / (loss) recognised in other comprehensive income 440,492 (741,611)
Aging analysis of trade debts is given in note 39.1(b). Due to delays in settlement by the Power Purchaser, the
18
Stores and spares Company has financed the trade debts via short term financing arrangements (Note 10), trade creditors (Note 11) and
Stores and spares 18.2 5,019,467 5,694,495 from own sources.
Provision for store obsolescence 18.3 (1,838,044) (1,839,131) 2021 2020
3,181,423 3,855,364 (Rupees in thousand)
18.1 Stores and spares include items which may result in fixed capital expenditure but are not distinguishable. 20.2
Provision for doubtful debts
Opening balance as at July 1 192,555 229,102
18.2 Stores and spares include items in transit amounting to Rs 16 million (2020: Rs 146 million) and items valuing Nil Provision for the year 106,276 –
(2020: Rs 60 million) which are being held by the following suppliers for inspection / refurbishment purposes. 298,831 229,102
Reversal of provision – (33,358)
2021 2020 Trade debts written off (369) (3,189)
Note (Rupees in thousand) Closing balance as at June 30 298,462 192,555
GE Energy Manufacturing Technology Centre, Saudi Arabia – 1,297 21 Investments at fair value
GE Middle East, UAE – 2,208 2021 2020
MJB International, UAE – 56,113 Cost Carrying Cost Carrying
– 59,618
18.3
Provision for store obsolescence
Opening balance as at July 1 1,839,131 1,863,504 Fair value through profit or loss -
Add: Provision for the year 14,996 – Government Securities
1,854,127 1,863,504 Pakistan Investment Bond 12,738,300 12,780,336 – –
Less: Stores written off against provision (16,083) (24,373) GoP Ijarah Sukuk 12,762,400 12,890,024 – –
Closing balance as at June 30 1,838,044 1,839,131 25,500,700 25,670,360 – –
19
Stock-in-trade Particulars of debt securities are as follows:
Furnace oil 4,613,907 1,865,809 Maturity Effective Yield 2021 2020
Diesel 1,288,401 822,199
Coal 19,579 12,664
5,921,887 2,700,672
Pakistan Investment Bond 18-Jun-30 7.868% 12,780,336 –
GoP Ijarah Sukuk 09-Dec-25 7.084% 12,890,024 –
20
Trade debts
25,670,360 –
Trade debts 20.1 104,920,893 120,096,066
Less: Provision for doubtful debts 20.2 298,462 192,555
21.1 These instruments pertain to the first tranche payment received in lieu of the Third Amendment to the PPA where an
104,622,431 119,903,511
amount of Rs 39,605 million (2020: Nil) was received in the current period out of which Rs 25,500 million (2020: Nil)
comprised of financial instruments as shown above.

NOTES TO THE
2021 2020 24.1 Sales recognised during the period include CPP which is recorded over time and EPP which is recorded at a point
Note (Rupees in thousand) in time in accordance with the Company’s policy of revenue recognition. Sales recorded represent contracts with
customers only.
22
Loans, advances, deposits, prepayments and
other receivables 24.2 The Company’s net revenue disaggregated by pattern of revenue recognition is as follows:
Loans to employees - considered good 509 8,809
2021 2020
Advances to suppliers - considered good 22.1 4,629,236 25,312
Sales tax claims recoverable from Government 1,402,430 821,408
Prepayments 8,477 5,229
Revenue recognised at a point in time - Energy Purchase Price 41,693,748 45,893,697
Accrued profit from investments 95,058 –
Revenue recognised over time - Capacity Purchase Price 27,942,647 25,649,602
Claims recoverable from CPPA-G as pass through items:
69,636,395 71,543,299
Workers’ Welfare Fund 22.2 378,099 659,091
Security deposits 22.3 5,848 4,024
25
Cost of sales
Other receivables 9,001 18,535
Fuel cost 40,320,627 44,709,841
6,528,658 1,542,408
Salaries, wages and benefits 25.1 2,049,372 1,856,299
22.1 Advances to suppliers include amounts due for more than a year from WAPDA, an associated undertaking, amounting Plant maintenance 199,397 189,692
to Rs 1 million (2020: Rs 1 million). These are in the normal course of business and are interest free. Gas turbines overhauls 606,136 870,916
Repair and renewals 873,792 266,300
22.2 Under section 14.2(a) of Part III of Schedule 6 to Power Purchase Agreement (PPA) with the Power Purchaser, payments Depreciation on property, plant and equipment 13.1 1,030,686 2,169,153
to Workers’ Welfare Fund is recoverable from the Power Purchaser as pass through items. Amortization on intangible assets 14.1 3,010 2,933
Provision for store obsolescence 14,996 –
22.3 All the security deposits are non-interest bearing. 45,098,016 50,065,134
2021 2020
Note (Rupees in thousand) 25.1 Salaries, wages and benefits
Salaries, wages and benefits include following in
23Cash and bank balances respect of retirement benefits;
At banks on:
- Current accounts 181,584 195,144 Pension
- Savings accounts 475,309 639,874 Current service cost 73,060 59,830
23.1 656,893 835,018 Net interest income / (cost) for the year 38,323 (46,499)
In hand: 111,383 13,331
- Cash 218 228
- Banker’s cheque 626,412 – Medical
1,283,523 835,246 Current service cost 4,054 4,094
Net interest cost for the year 17,905 25,086
23.1 Included in these are total restricted funds of Rs 2 million (2020: Rs 2 million) held by banks under lien as margin
21,959 29,180
against letters of credit. The balances in savings accounts are placed under mark-up arrangements and bear mark-up
ranging from 5.50 percent to 6.50 percent (2020: 6.30 percent to 11.50 percent) per annum.
Free electricity
Current service cost 11,388 12,899
2021 2020
Net interest cost for the year 52,760 80,821
64,148 93,720
24
Sales
In addition to above, salaries, wages and benefits also include Rs 49 million (2020: Rs 49 million) in respect of
Energy Purchase Price under the PPA 24.1 48,737,102 53,663,274
provident fund contribution by the Company and other long term benefits amounting to Rs 123 million (2020: Rs 30
Sales tax (7,043,354) (7,769,577) million).
Net Energy Purchase Price 41,693,748 45,893,697
Capacity Purchase Price for the year under PPA 24.1 27,942,647 25,649,602 25.2 Cost of sales include Rs 791 million (2020: Rs 144 million) for stores and spares consumed.
24.2 69,636,395 71,543,299

NOTES TO THE
25.3 Provident Fund 2021 2020
The Company operates provident fund for its managers and other employees. The following information pertains to Note (Rupees in thousand)
the KAPCO Employees Provident Fund:
2021 2020 26.1
Auditors’ remuneration
(Rupees in thousand) The charges for auditors’ remuneration include the following:
Statutory audit 4,269 3,880
Size of the fund (total equity) 1,141,355 1,044,860 Half yearly review 1,500 1,364
Percentage of investments made 89% 84% Workers’ Profit Participation Fund audit, Employees Provident and
Fair value of investments 1,011,134 879,790 Pension Fund audit, special reports and certificates 861 756
Out of pocket expenses 910 567
25.3.1 Break-up of investments in terms of amount and percentage of the size of the provident fund are as follows: 7,540 6,567
2021 2020
Investments Investments Investments Investments 27
Other income
as % of net (Rs. 000) as % of (Rs. 000) Income from financial assets
assets assets Income on bank deposits 31,453 75,746
(Rupees in thousand) Reversal of provision – 33,358
Exchange gain 1,363 2,119
Pakistan Investments Bonds 37% 417,542 39% 408,474 Interest on loans to employees 327 1,529
Term Finance Certificates 5% 52,834 5% 53,484 Interest on PIBs and Sukuks 145,999 –
Mutual Funds 41% 468,850 35% 367,832 Fair value gain on investments at fair value 169,660 –
Debt Instrument 6% 71,908 5% 50,000 True-up income 27.1 3,891,748 7,786,900
1,011,134 879,790 Interest on late payment - CPPA-G 8,908,920 12,856,239
13,149,470 20,755,891
25.3.2 The investments by the provident fund in collective investment schemes, listed equity and debts securities have been made Income from non-financial assets
in accordance with the conditions specified in section 218 of the Companies Act, 2017 and rules specified thereunder.
Colony electricity 8,644 8,970
Provisions and unclaimed balances written back 1,127 –
25.3.3 The figures for 2021 are based on the un-audited financial statements of the provident fund (2020: audited figures).
Profit on disposal of property, plant and equipment 516 856
2021 2020 Scrap sales 24,971 406
Note (Rupees in thousand) House rent recovery 12,846 13,641
Others 23,017 26,481
26
Administrative expenses
71,121 50,354
Travelling 8,980 8,745
13,220,591 20,806,245
Motor vehicles running 55,604 57,169
Postage, telephone and telex 10,157 8,132
27.1 It represents true-up income resulting from change in US Dollar - Pak Rupee exchange rate exceeding the threshold
Legal and professional charges 57,588 54,175
defined in PPA, compared to the rates used for indexation calculation of relevant CPP invoices, under section 13.4 (iv)
LDs arbitration cost 412,639 390,342
of Part II of Schedule 6 to PPA.
Computer charges 17,975 21,260
Auditors’ remuneration 26.1 7,540 6,567 2021 2020
Printing, stationery and periodicals 10,804 9,705 Note (Rupees in thousand)
Repairs and maintenance 69,460 68,136
Training expenses 4,781 11,302 28
Finance cost
Rent, rates and taxes 21,897 19,429 Interest and mark up including commitment charges on
Depreciation on property, plant and equipment 13.1 36,694 85,923 - finances under mark-up arrangements - secured 2,855,993 7,007,070
Depreciation on right of use assets 15.1 5,652 12,483 - finances under mark-up arrangements - unsecured 28.1 201,463 –
Facility running cost 39,757 42,227 - credit supplies of raw material 30,499 1,422,235
Education fee 28,494 29,318 - car ijarah 13,718 14,308
Provision for doubtful debts 106,276 –
- lease liabilities 6,005 10,141
Bad debts written off 2,059 –
Bank and other charges 561 3,663
Other expenses 56,263 47,836
3,108,239 8,457,417
952,620 872,749

NOTES TO THE
28.1 On December 8, 2020, the Company issued privately placed unsecured Sukuk certificates based on musharakah 30 Remuneration of Chief Executive, Directors and Executives
amounting to Rs 5,000 million at a mark-up of 0.70% per annum above three-month KIBOR. The mark-up on the Sukuk 30.1 The aggregate amount charged in the financial statements for the year for remuneration including certain benefits to
was payable on quarterly basis in arrears. The entire amount of the Sukuk has been repaid as on June 8, 2021. the chief executive and executives of the Company is as follows:
2021 2020 Chief Executive Executives

(Rupees in thousand) Note 2021 2020 2021 2020
29
Taxation
Current tax Managerial remuneration 61,875 61,302 370,078 359,211
- Current year 3,267,140 5,602,276 Bonus 30,938 30,938 98,707 96,002
- Prior year (110,672) (2,752,647) Reimbursable expenses 2,120 1,836 27,893 29,882
3,156,468 2,849,629 Contribution to provident
Deferred tax 1,024,850 6,491,422 & pension funds and
4,181,318 9,341,051 other retirement benefit
plans 6,188 6,130 56,988 23,823
2021 2020 Leave passage 5,156 5,156 20,707 19,521
% age % age Other perquisites 30.1.1 5,012 7,119 22,787 23,974
111,289 112,481 597,160 552,413
29.1 Tax charge reconciliation Number of persons 1 1 61 60
Numerical reconciliation between the applicable tax rate
and the average effective tax rate 30.1.1 This includes Company transport, education of children, club charges, house loan subsidy, security and utilities
Tax at applicable rate 29.00 29.00 provided to the employees as per Company policy.
Effect of prior period tax – (0.66)
Others 0.02 – 30.2 Remuneration to other directors
Average effective tax rate 29.02 28.34
Aggregate amount charged in the financial statements for the year for fee to 7 directors (2020: 7 directors) is Rs 34
million (2020: Rs 21 million). No other perquisite is provided to other directors.
2021 2020
31 Transactions with related parties
29.2
Tax recognised directly in other comprehensive income The related parties comprise associated undertakings, key management personnel, directors and post retirement
Defined benefit obligation 149,329 (188,985) benefit plans. The Company in the normal course of business carries out transactions with various related parties.
149,329 (188,985) Amounts due to / from related parties are shown under payables and receivables and remuneration of the key
management personnel, including directors, is disclosed in note 30. Other significant transactions with related parties
are as follows:
Relationship with Percentage of Nature of 2021 2020

the Company shareholding transaction (Rupees in thousand)
i. Associated undertakings
CPPA-G 0% Sale of electricity 69,636,395 71,543,299

CPPA-G 0% Purchase of electricity 232,560 204,570
WAPDA 40% Purchase of services 3,970 1,975
CPPA-G 0% Interest income on late payment 8,908,920 12,856,239
CPPA-G 0% True-up income 3,891,748 7,786,900
CPPA-G 0% Bad debts recovered – 33,358
CPPA-G 0% Provision for doubtful debts 106,276 –
CPPA-G 0% Contract liability 19,287,369 –

NOTES TO THE
Relationship with Percentage of Nature of 2021 2020 year ended June 30, 2021, the ICC Tribunal issued a Consent Order dated July 13, 2021. As per the order, all the
the Company shareholding transaction (Rupees in thousand) claims and counterclaims are withdrawn as per the terms of the Agreements signed between the Company and
CPPA-G and the Arbitration Proceedings are hereby terminated. Thereafter, the ICC vide letter dated August 5, 2021,
CPPA-G 0% Debts written off 369 3,189 acknowledged the withdrawal of all claims under Arbitration Proceedings by both parties.
WAPDA 40% Dividend paid 531,467 2,125,867
WAPDA 40% Unpaid dividend 1,771,555 – 32.3 There are no other significant events that have occurred subsequent to the reporting date, other than those mentioned
KAPCO Employees elsewhere in these financial statements.
Empowerment Trust 5% Dividend paid 72,379 217,136 2021 2020
KAPCO Employees MWh MWh
Empowerment Trust 5% Unpaid dividend 241,262 –
Central Depositary
33 Capacity and production
Company 0% Purchase of services 2,090 1,592
Annual dependable capacity [based on 8,760 hours (2020: 8,784 hours)] 11,756,064 11,788,128
Samba Bank Limited 0% Financial charges 23,667 108,619
Actual energy delivered 3,562,244 3,476,675
Pakistan Institute of
Corporate
Capacity for the power plant taking into account all the planned scheduled outages is 10,581,044 MWh (2020:
Governance 0% Purchase of services 431 100
10,793,034 MWh). Actual energy delivered by the plant is dependent on the load demanded by the Power Purchaser
and the plant availability.
ii. Post retirement benefit plans
KAPCO Employees
34 Rates of exchange
pension fund trust 0% Contributions paid 508,496 3,839
KAPCO Employees Liabilities in foreign currencies as on June 30, 2021 have been translated into Rupees at USD 0.6317 (2020: USD
provident fund trust 0% Contributions paid 49,400 48,657 0.5926), EURO 0.5299 (2020: EURO 0.5271) and GBP 0.4560 (2020: GBP 0.4815) equal to Rs 100.
Sale and purchase transactions with related parties are carried out on mutually agreed terms. 2021 2020
31.1 Following are the associated undertakings / companies and post retirement benefits plans along with basis of their
relationship with the Company with whom the Company had entered into transactions during the current year; 35 Cash generated from operations
Profit before tax 14,410,742 32,954,244
Name of related parties Direct shareholding Relationship Adjustments for:
- Depreciation on property, plant and equipment 1,067,380 2,255,076
WAPDA 40.0% Associated undertaking - Amortisation on intangible assets 3,010 2,933
KAPCO Employees Empowerment Trust 5.0% Common management - Depreciation on right of use assets 5,652 12,483
CPPA-G N/A Common control - Gain on disposal of property, plant and equipment (516) (856)
Central Depositary Company N/A Common directorship - Interest income on investments at fair value (145,999) –
Samba Bank Limited N/A Common directorship - Income on bank deposits (31,453) (75,746)
Pakistan Institute of Corporate Governance N/A Common directorship - Adjustments / write-off of fixed assets 696 –
Post retirement benefit plans: - Bad debts written off 2,059 –
- KAPCO Employees pension fund trust N/A Post employment benefits plan - Provision for doubtful debts 106,276 –
- KAPCO Employees provident fund trust N/A Post employment benefits plan - Liabilities written back (1,127) –
- Provision for store obsolescence 14,996 –
32 Subsequent events after the reporting date - Staff retirement benefits accrued 322,362 165,907
- Finance cost 3,108,239 8,457,417
32.1 The Board of Directors of the Company have proposed a final dividend for the year ended June 30, 2021 of Rs 3.5 - Fair value gain on investments at fair value (169,660) –
(2020: Nil) per share amounting to Rs 3,081 (2020: Nil) at their meeting held on August 17, 2021 for approval of - Adjustment to CPP 19,128,298 –
members at the Annual General Meeting to be held on October 22, 2021. These financial statements do not reflect Profit before working capital changes 37,820,955 43,771,458
this proposed dividend.
32.2 As referred to in note 2.2, the Company and CPPA-G filed a joint application before ICC Tribunal for withdrawal of
claims and counterclaims and termination of the Liquidated Damages Arbitration Proceedings. Subsequent to the

NOTES TO THE
2021 2020 39 Financial risk management
Note (Rupees in thousand) 39.1 Financial risk factors
Effect on cash flow due to working capital changes: The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, other price risk
- Decrease / (increase) in stores and spares 658,945 (390,283) and interest rate risk), credit risk and liquidity risk. The Company’s overall risk management program focuses on the
- (Increase) / decrease in stock-in-trade (3,221,215) 6,765,784 unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.
- Decrease / (increase) in trade debts 15,173,296 (4,105,124)
- (Increase) / decrease in loans, advances, deposits, prepayments Risk management is carried out by the management in accordance with the Financial Risk Management Policy
and other receivables (4,891,743) 889,557 approved by the Board of Directors. This policy covers specific areas such as foreign exchange risk, interest rate risk,
- Increase / (decrease) in trade and other payables 1,706,479 (16,588,949) credit risk and investment of excess liquidity. All treasury related transactions are carried out within the parameters of
9,425,762 (13,429,015) this policy.
47,246,717 30,342,443
(a) Market risk
36 Cash and cash equivalents (i) Currency risk
Cash and bank balances 23 1,283,523 835,246 Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
Finances under mark-up arrangements - secured 10 (36,257,334) (44,062,195) changes in foreign exchange rates. Currency risk arises mainly from future commercial transactions or receivables
(34,973,811) (43,226,949) and payables that exist due to transactions in foreign currencies.
37 Reconciliation of liabilities arising from financing activities The Company is exposed to currency risk arising from various currency exposures, primarily with respect to the United
July 1, Accruals / Payments June 30, States Dollar (USD), Great Britain Pound (GBP) and Euro. Currently, the Company’s foreign exchange risk exposure
2020 Dividend declared 2021 is restricted to the amounts receivable/payable from/to the foreign entities. The Company’s exposure to currency risk
is as follows:
Lease liabilities:
-current lease liabilities 14,288 – (7,183) 7,105 2021 2020
-non current lease liabilities 11,065 – (7,622) 3,443
Unclaimed dividend 794,671 1,320,380 (1,304,218) 810,833 Trade and other payables - USD (136,634) (158,211)
Unpaid dividend – 4,401,266 – 4,401,266
Trade and other payables - GBP (4,630) –
38 Earnings per share
Trade and other payables - Euro (1,358,395) (173,213)
38.1 Basic earnings per share
Profit for the year Rupees in thousand 10,229,424 23,613,193 The following exchange rates were applied during the year:
Weighted average number Rupees per USD
of ordinary shares Numbers 880,253,228 880,253,228 Average rate 160.40 158.94
Earnings per share Rupees 11.62 26.83 Reporting date rate 158.30 168.75
38.2 Diluted earnings per share Rupees per GBP

Average rate 216.42 200.30
Diluted earnings per share has not been presented as the Company does not have any convertible instruments in
Reporting date rate 219.28 207.68
issue as at June 30, 2021 and June 30, 2020 which would have any effect on the basic earnings per share.
Rupees per Euro

Average rate 191.83 175.91
Reporting date rate 188.71 189.73

NOTES TO THE
If the functional currency, at reporting date, had fluctuated by 5% against the USD, GBP and Euro with all other (b) Credit risk
variables held constant, the impact on profit after taxation for the year would have been Rs 10 million (2020: Rs 2 Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the other party by
million) respectively lower/higher, mainly as a result of exchange gains/losses on translation of foreign exchange failing to discharge an obligation. Company’s credit risk is primarily attributable to its trade debts, investments at fair
denominated financial instruments. Currency risk sensitivity to foreign exchange movements has been calculated on value and its balances at banks. The carrying amount of financial assets represents the maximum credit exposure.
a symmetric basis. The maximum exposure to credit risk at the reporting date is as follows:
(ii) Interest rate risk 2021 2020

Interest rate risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate (Rupees in thousand)
because of changes in market interest rates.
Long term loans and deposits 6,419 12,508
The Company’s interest rate risk arises from investments at fair value and short term financing. Borrowings obtained Trade debts 104,622,431 119,903,511
at variable rates expose the Company to cash flow interest rate risk. Investments at fair value 25,670,360 –
Loans, advances, deposits, prepayments and other receivables
At the reporting date, the interest rate profile of the Company’s interest bearing financial instruments is: Loans to employees - considered good 509 8,809
Claims recoverable from CPPA-G as pass through items:
2021 2020 - Workers’ Welfare Fund 378,099 659,091
(Rupees in thousand) Security deposits 5,848 4,024
Other receivables 4,989 17,660
Financial assets Balances with banks 656,893 835,018
Fixed rate instruments 131,345,548 121,440,621
Staff loans 509 10,647
Floating rate instruments The credit risk on liquid funds is limited because the counter parties are banks with reasonably high credit ratings.
Bank balances - savings accounts 475,309 639,874 The Company believes that it is not exposed to major concentration of credit risk and the risk attributable to trade
Investments at fair value 25,670,360 – debts and Workers’ Welfare Fund and Worker’s Profit Participation Fund receivable from Power Purchaser mitigated
Financial liabilities by guarantee from the Government of Pakistan under the Facilitation Agreement. Age analysis of trade receivable
Floating rate instruments balances is as follows:
Lease liabilities 10,548 25,353 2021 2020
Finances under mark-up arrangements - secured 36,257,334 44,062,195 (Rupees in thousand)
36,267,882 44,087,548
Not yet due 23,661,617 20,733,750
Fair value sensitivity analysis for fixed rate instruments Due past 30 to 90 days 17,994,197 13,670,923
Due past 91 to 180 days 16,824,782 19,589,950
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Due past 181 to 365 days 29,106,393 22,591,717
Therefore, a change in interest rate at the reporting date would not affect profit or loss of the Company.
Due past 365 days 17,333,904 43,509,726
104,920,893 120,096,066
Cash flow sensitivity analysis for variable rate instruments
Provision for doubtful debts (298,462) (192,555)
If interest rates on late payments, lease liabilities and finances under mark-up arrangements, at the year end date, 104,622,431 119,903,511
fluctuate by 1% higher / lower with all other variables held constant, profit after taxation for the year would have been
Rs 283 million (2020: Rs 108 million) higher / lower, mainly as a result of higher / lower interest expense on floating rate
borrowings.
(iii) 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 equity price risk since there are no investments in
equity securities.

The credit quality of bank balances that are neither past due nor impaired can be assessed by reference to external The following are the contractual maturities of financial liabilities as at June 30, 2020:
credit ratings (if available) or to historical information about counterparty default rate:
Carrying Less than One to five More than
Rating Rating 2021 2020
amount one year years five years
Short term Long term Agency (Rupees in thousand)
-National Bank of Pakistan A-1+ AAA VIS 87 98
-Habib Bank Limited A-1+ AAA VIS 299,266 820,490 Lease liabilities 25,353 14,288 11,065 –
-MCB Bank Limited A1+ AAA PACRA 75 73 Finances under mark-up
-Habib Metropolitan Bank Limited A1+ AA+ PACRA 42,864 1,676 arrangements - secured 44,062,195 44,062,195 – –
-Allied Bank Limited A1+ AAA PACRA 262,658 11 Trade and other payables 20,125,523 20,125,523 – –
-Samba Bank Limited A-1 AA VIS 1 – Unclaimed dividend 794,671 794,671 – –
-Askari Bank Limited A1+ AA+ PACRA 102 – Unpaid dividend – –
-Meezan Bank Limited A-1+ AAA VIS 4 – 65,007,742 64,996,677 11,065 –
-Bank Al Habib A1+ AAA PACRA 51,836 –
-Standard Chartered Bank 39.2 Fair values of financial assets and liabilities
(Pakistan) Limited A1+ AAA PACRA – 12,658 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at measurement date. Underlying the definition of fair value is the presumption that the
-Al Baraka Bank (Pakistan) Limited A1 A PACRA – 3 Company is a going concern without any intention or requirement to curtail materially the scale of its operations or to
-Citibank N.A. F1 A Fitch Rating – 9 undertake a transaction on adverse terms. The carrying values of all financial assets and liabilities reflected in these
656,893 835,018 financial statements approximate their fair values. Fair value is determined on the basis of objective evidence at each
reporting date.
Due to the Company’s long standing business relationships with these counterparties and after giving due consideration
to their strong financial standing, management does not expect non-performance by these counter parties on their Specific valuation techniques used to value financial instruments include:
obligations to the Company. Accordingly, the credit risk is minimal.
– Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
(c) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. – Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices) (level 2).
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 borrowing limits available from financial – Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
institutions at Rs 52,900 million (2020: Rs 55,159 million), out of this the total unavailed amount is Rs 14,110 (2020:
Rs 11,124) and Rs 1,283 million (2020: Rs 835 million) in cash and bank balances. The Company follows an effective The following is categorization of assets which are disclosed at fair value as at June 30, 2021:
cash management and planning policy to ensure availability of funds and to take appropriate measures for new
requirements. Level 1 Level 2 Level 3 Total
The following are the contractual maturities of financial liabilities as at June 30, 2021: Assets:
Investments at fair value 25,670,360 – – 25,670,360
Carrying Less than One to five More than
amount one year years five years There were no investments held by the Company for the year ended June 30, 2020. There were no transfer of financial
(Rupees in thousand) assets between level 1, 2 and 3.
Lease liabilities 10,548 7,105 3,443 –

Finances under mark-up
arrangements - secured 36,257,334 36,257,334 – –
Trade and other payables 16,799,817 16,799,817 – –
Unclaimed dividend 810,833 810,833 – –
Unpaid dividend 4,401,266 4,401,266
58,279,798 58,276,355 3,443 –

Financial assets at amortized cost The ratio is calculated as long term debt divided by total capital. Debt is calculated as total long term borrowings. Total
capital is calculated as ‘equity’ shown in the statement of financial position plus long term debt. The gearing ratios as
2021 2020
at year ended June 30, 2021 and June 30, 2020 are as follows:
2021 2020
39.3
Financial instruments by categories
Financial assets as per statement of financial position
Total equity 65,223,611 60,350,511
Long term loans and deposits 6,419 12,508
Total long term debt – –
Trade debts 104,622,431 119,903,511
Total capital 65,223,611 60,350,511
Loans, advances, deposits, prepayments and
Gearing ratio Percentage 0% 0%
other receivables 509 8,809
- Loans to employees - considered good
40 Number of employees
- Workers’ Welfare Fund receivable from Power Purchaser 378,099 659,091
- Security deposits 5,848 4,024 Total number of employees at year end and average number of employees during the year are 535 (2020: 587) and
- Other receivables 4,989 17,660 564 (2020: 588) respectively.
Cash and bank balances 1,283,523 835,246
106,301,818 121,440,849 41 Corresponding figures
Corresponding figures have been re-arranged, wherever necessary, for the purposes of comparison. However, no
Financial liabilities at amortized cost significant reclassifications have been made.
2021 2020
(Rupees in thousand) 42 Date of authorisation for issue
These financial statements were authorised for issue on August 17, 2021 by the Board of Directors of the
Financial liabilities as per statement of financial position Company.
Lease liabilities 10,548 25,353
Finances under mark-up arrangements - secured 36,257,334 44,062,195
Trade and other payables 16,799,817 20,125,523
Unclaimed dividend 810,833 794,671
Unpaid dividend 4,401,266 –
58,279,798 65,007,742
39.3.1 Financial assets at fair value have been shown under note 39.2.
39.4 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 gearing ratio.
Aftab Mahmood Butt M. Rabnawaz Anjum Hafiz Muhammad Yousaf

Chief Executive Officer Chief Financial Officer Director

NOTES NOTES
NOTES PROXY FORM
I/We of
being a Member of Kot Addu Power Company Limited (the ‘‘Company’’) holding shares
hereby appoint of and in case of his / her absence
of who is also a Member of the Company, as my/our proxy to vote for me/us, and on my/our
behalf at the 25th Annual General Meeting of the Company to be held on Friday, October 22, 2021 at 10:00 am at
Islamabad Serena Hotel and any adjournment thereof.
Signed this day of 2021
Folio No. CDC Account No.

Participant I.D. Account No.
Witnesses:
1. Signature
Name: Revenue Stamp
CNIC: Rs 5/-
Address:
2. Signature
Name:
The Signature should agree with the
CNIC: Specimen signature registered with
the Company
Address:
Note:
1. This Proxy, duly completed, signed and witnessed, must be deposited at the offices of the Company’s Registrar,
THK Associates (Private) Limited, Plot No. 32-C, Jami Commercial Street 2, Phase-VII, DHA, Karachi 75400,
Pakistan not later than forty-eight (48) hours before the time appointed for the Meeting.
2. No person shall act as proxy, if he is not a Member of the Company (except that a corporation may appoint a
person who is not a Member).
3. If a member appoints more than one proxy and more than one instruments of proxy are deposited by a Member
with Company’s Registrar, all such instruments or proxies shall be regarded invalid.
4. The Proxy shall produce his/her original CNIC or original passport at the time of Meeting.
5. Attested copy of CNIC or passport of the beneficial owners and the proxy shell be provided with the proxy form.
6. ln case of a corporate entity, the Board of Directors Resolution/Power of Attorney with specimen signature of the
nominee shall be submitted alongwith the Proxy (unless it has been provided earlier).
25
AFFIX
CORRECT
POSTAGE
25
10:00 � 2021 22
THK Associates (Private) Limited

Plot No. 32-C, Jami Commercial
Street 2, Phase-VII, DHA 2021
Tel: +92 (0)21 111 000 322
Fax: +92 (0)21 35310190
AFFIX
CORRECT
POSTAGE
THK Associates (Private) Limited

Plot No. 32-C, Jami Commercial
Street 2, Phase-VII, DHA
Tel: +92 (0)21 111 000 322
Fax: +92 (0)21 35310190

Kapco Ar 2021

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CONTENTS

RS. 5,251 RS. 50,349

Profit after Tax Earnings per Share

RS. 10,229 RS. 11.62

The Company arranged USD 45 Million KIBOR to LIBOR SWAPs in

Issuance of first Short Term Islamic Sukuk in Power Sector of Pakistan

KAPCO was awarded “Partner in Excellence Award” by FBR in 2006.

04 Annual Report 2021 Years of 05

Mr. Naveed Asghar Chaudhry Registered Office

HR Committee Head of Internal Audit Askari Bank Limited-IBD

06 Annual Report 2021 Years of 07

08 Annual Report 2021 Years of 09

GENERAL Suhrawardy, Islamabad and through video

5. To transact any other business with the permission of the Chairman.

By Order of the Board

Lahore A. Anthony Rath

10 Annual Report 2021 Years of 11

12 Annual Report 2021 Years of 13

Mr. Aftab Mahmood Butt | Chief Executive

Mr. Aqeel Ahmed Nasir | Director

Mr. Hafiz Muhammad Yousaf | Director

16 Annual Report 2021 Years of 17

18 Annual Report 2021 Years of 19

20 Annual Report 2021 Years of 21

Cumulative Load Factor Electricity Sold

30.3% 3,562 GWh and sewage treatment plant.

A Reverse Osmosis Plant was installed for availability of water for

Lost Time Accident

22 Annual Report 2021 Years of 23

24 Annual Report 2021 Years of 25

Mr. Hafiz Muhammad Yousaf 7 Mr. Aqeel Ahmed Nasir 3

Mr. Naveed Asghar Chaudhry 7 Mr. Aftab Mahmood Butt 2

Mr. Saad Iqbal 7 Mr. Naveed Asghar Chaudhry 3

Mr. Jamil Akhtar1 2

26 Annual Report 2021 Years of 27

Company policies and procedures have been adopted/

REPORT The principal activities of the Company are the ownership,

32 Annual Report 2021 2

m) During the year, three (3) meetings of the HR Committee

Turnover PKR in Million 50,349 * 71,543 84,831 91,916 81,847 64,178

Assets PKR in Million 152,233 134,523 139,267 138,446 116,001 92,213

Dividends PKR in Million 5,722 3,961 5,546 8,010 7,966 7,922

Net Output GWh 3,562 3,477 4,961 7,437 7,335 6,583

Thermal Efficiency % 44.5 44.4 44.0 44.0 43.7 44.0

Load Factor % 30.3 29.5 42.2 63.3 62.4 55.8

Availability % 85.6 88.9 91.8 86.0 84.3 81.9

40 Annual Report 2021 Years of 41

No of Share Having Shares No of Share Having Shares

681 1 100 30881 0.0035 3 290001 295000 876500 0.0996

42 Annual Report 2021 Years of 43

No of Share Having Shares Particulars No of Folio Balance Shares Percentage

44 Annual Report 2021 Years of 45

46 Annual Report 2021 Years of 47

MEMBERS NAME NO OF SHARES MEMBERS NAME NO OF SHARES

48 Annual Report 2021 Years of 49

MEMBERS NAME NO OF SHARES MEMBERS NAME NO OF SHARES

50 Annual Report 2021 Years of 51

38 Senior Manager Senior Manager

NOP GWh Plant Utilisation % Senior Manager

52 Annual Report 2021 Years of 53