nisha ed 1 · 2019. 3. 26. · district kasur. bankers to the company: allied bank limited askari...

1 Nishat Chunian Limited


CONTENTS

03 CompanyInformation

04 Directors’ Report

05 Auditors’ Review Report

06 Condensed Interim Balance Sheet

07 CondensedInterimProfitandLossAccount

08 Condensed Interim Statement of Comprehensive Income

09 Condensed Interim Cash Flow Statement

10 Condensed Interim Statement of Changes in Equity

11 NotestotheCondensedInterimFinancialInformation

22 Consolidated Condensed Interim Balance Sheet

23 ConsolidatedCondensedInterimProfitandLossAccount

24 Consolidated Condensed Interim Statement Of

Comprehensive Income

25 Consolidated Condensed Interim Cash Flow Statement

26 Consolidated Condensed Interim Statement Of Changes

In Equity

27 Notes to the Consolidated Condensed Interim Financial

Information


Board of Directors:Mr. Shahzad Saleem (Chief Executive/Chairman)Ms. Farhat Saleem Mr. Yahya Saleem Mr.M.ImranRafiq (Nominee NIT)Mr.AftabAhmadKhanMr. Shahid A. Malik Mr.KamranRasool

AUDIT COMMITTEE:Mr.AftabAhmadKhan(Chairman)Mr. Shahzad Saleem (Member)Mr. Yahya Saleem (Member)

HR & R COMMITTEE:Mr. Yahya Saleem (Chairman)Mr. Shahzad Saleem (Member)Mr.KamranRasool(Member)

CFO / Company Secretary: Mr.SaqibRiaz

Head of Internal Audit:Mr.IbraheemSaleem

Mills:Spinning 1, 4, 5, 7 & 849thKilometre,MultanRoad,Bhai Pheru, Tehsil Chunian,DistrictKasur.

Dyeing&Printing4thKilometre,MangaRoad,Raiwind.

Spinning 2, 3, 6 & Weaving49thKilometre,MultanRoad,Kamogal,TehsilPattoki,DistrictKasur.

Bankers to the Company:AlliedBankLimitedAskariBankLimitedAlBarkaBank(Pakistan)LimitedBankAlfalahLimitedBarclays Bank plc, PakistanBankIslamiPakistanLimitedBurjBankLimitedDubaiIslamicBankPakistanLimitedFaysalBankLimitedHabibBankLimitedHabibMetropolitanBankLimitedJSBankLimitedKASBBankLimitedMeezanBankLimitedNationalBankofPakistanNIBBankLimitedPakKuwaitInvestmentCompany(Private)LimitedStandardCharteredBankPakistanLimitedSAMBABankLimitedSoneriBankLimitedTheBankofPunjabUnitedBankLimited

Auditors: Riaz Ahmad & CompanyChartered Accountants

Registered & Head Office: 31-Q,Gulberg-II,Lahore,Pakistan.Phone : 35761730-39Fax : 35878696-97Web:www.nishat.net

Share Registrar: HameedMajeedAssociates(Pvt)Limited1st Floor, H.M. House7-BankSquare,LahorePh: 042 37235081-2 Fax: 042-37358817

COmpaNy INfOrmaTION


Dear ShareholdersThe Board of Directors is pleased to announce the unaudited results for the half year ended onDecember2014.

Operating Financial ResultsRevenuesearnedduring thishalfyearareRs.11.3billionascomparedtoRs.10.6billionduring the correspondingprevioushalf year, registeringan increaseof6.5%.Grossprofitfor this period is 8.5% as compared to 11.4% during the corresponding previous half year. NetprofitaftertaxforcurrentperiodisRs.325.5millioncomparedtonetprofitofRs.1,267million for the same period last year.Themarginswere adversely affected due to a general stagnation in the textile industry.However,thesituationhasimprovedinthesecondquarterascomparedtothefirstquarterof this year. Themajorfactorscontributingtonetprofitarethedividendincomeandtaxincentivesoncapital expenditures on plant & machinery in this period.

Financial HighlightsHalf Year ended December 2014 Increase / Decrease

%2014 2013

Sales (Rs.) 11,300,854,580 10,610,979,028 +6.50%

GrossProfit(Rs.) 956,693,242 1,204,762,327 -20.59%

Profitaftertax(Rs.) 325,499,234 1,266,642,089 -74.30%

GrossProfit% 8.47% 11.35%

Profitaftertax% 2.88% 11.94%

Earnings per share (Rs.) 1.63 6.33

Future ProspectsSpinning, Weaving and Home Textile divisions are facing low margins due to an overallslumpinthetextilebusiness.Themanagementistakingmeasurestofurthercontrolcostofproductiontocopewiththissituation.TheCompany’ssubsidiary,NishatChunianPowerLimitedhasannouncedinterimdividendofRs.2.0pershareinitsBODmeetingheldonFebruary24,2015.

Subsidiary Companies and Consolidated Financial Statements

NishatChunianUSAInc.,NCElectricCompanyLimitedandNishatChunianPowerLimitedaresubsidiarycompaniesoftheCompany.Therefore,theCompanyhasannexedconsolidatedcondensed interim financial information in addition to its separate condensed interimfinancial information, in accordance with the requirements of International FinancialReportingStandardsandapplicableprovisionsoftheCompaniesOrdinance1984.TheDirectorswishtoexpresstheirappreciationtothededicatedemployeeswhocontinuetoplayapivotalroleintheoperationsofcompany.

OnbehalfoftheBoardShahzad Saleem

Chairman24February2015

Lahore

DIrECTOrS’ rEpOrT


AUDITORS’ REPORT TO THE MEMBERSONREVIEWOFUNCONSOLIDATEDCONDENSEDINTERIMFINANCIALINFORMATION

Introduction

We have reviewed the accompanying unconsolidated condensed interim balance sheetof NISHAT (CHUNIAN) LIMITED as at 31 December 2014 and the related unconsolidatedcondensed interimprofit and loss account, unconsolidated condensed interim statementof comprehensive income, unconsolidated condensed interim cash flow statement,unconsolidated condensed interim statement of changes in equity and notes to the accounts forthehalfyearthenended(hereinafterreferredtoas“unconsolidatedcondensedinterimfinancial information”).Management is responsible for the preparation and presentationof this unconsolidated condensed interim financial information in accordance withapprovedaccountingstandardsasapplicableinPakistanforinterimfinancialreporting.Ourresponsibilityistoexpressaconclusiononthisunconsolidatedcondensedinterimfinancialinformation based on our review. The figures of the unconsolidated condensed interimprofitandlossaccountandunconsolidatedcondensedinterimstatementofcomprehensiveincomeforthequartersended31December2014and31December2013havenotbeenreviewed and we do not express a conclusion on them as we are required to review only the cumulativefiguresforthehalfyearended31December2014.

Scope of Review

WeconductedourreviewinaccordancewithInternationalStandardonReviewEngagements2410,“Reviewof InterimFinancial InformationPerformedby the IndependentAuditoroftheEntity”.Areviewofunconsolidatedcondensedinterimfinancialinformationconsistsofmakinginquiries,primarilyofpersonsresponsibleforfinancialandaccountingmatters,andapplyinganalyticalandotherreviewprocedures.AreviewissubstantiallylessinscopethananauditconductedinaccordancewithInternationalStandardsonAuditingandconsequentlydoesnotenableustoobtainassurancethatwewouldbecomeawareofallsignificantmattersthatmightbeidentifiedinanaudit.Accordingly,wedonotexpressanauditopinion.

Conclusion

Basedonourreview,nothinghascometoourattentionthatcausesustobelievethattheaccompanyingunconsolidatedcondensedinterimfinancialinformationasofandforthehalfyearended31December2014isnotprepared,inallmaterialrespects,inaccordancewithapprovedaccountingstandardsasapplicableinPakistanforinterimfinancialreporting.

RIAZ AHMAD & COMPANYChartered Accountants

Name of engagement partner:MubasharMehmood

24February2015Lahore

rEvIEw rEpOrT


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2014

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63,33

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24,13

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____

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Note 31 December 31 December 31 December 31 December2014 2013 2014 2013

SALES 11,300,854,580 10,610,979,028 5,990,733,830 5,445,421,283COST OF SALES 9 (10,344,161,338) (9,406,216,701) (5,440,144,792) (4,946,935,206) GROSS PROFIT 956,693,242 1,204,762,327 550,589,038 498,486,077

DISTRIBUTION COST (359,859,562) (296,668,289) (204,267,384) (142,599,451) ADMINISTRATIVE EXPENSES (91,742,908) (76,141,003) (51,984,372) (46,044,737) OTHER EXPENSES (44,531,178) (89,106,499) (43,382,178) (53,713,824)

(496,133,648) (461,915,791) (299,633,934) (242,358,012) 460,559,594 742,846,536 250,955,104 256,128,065

OTHER INCOME 686,481,712 1,152,759,043 773,540,057 1,070,328,447PROFIT FROM OPERATIONS 1,147,041,306 1,895,605,579 1,024,495,161 1,326,456,512

FINANCE COST (690,517,887) (621,469,352) (381,842,221) (327,225,118) PROFIT BEFORE TAXATION 456,523,419 1,274,136,227 642,652,940 999,231,394

TAXATION (131,024,185) (7,494,138) (78,666,564) 43,601,577 PROFIT AFTER TAXATION 325,499,234 1,266,642,089 563,986,376 1,042,832,971

EARNINGS PER SHARE - BASIC AND DILUTE 1.63 6.33 2.82 5.21

The annexed notes form an integral part of this unconsolidated condensed interim financial information.

_____________Director

---------------------------------- Rupees ------------------------------------

HALF YEAR ENDED QUARTER ENDED

Chief Executive_________________

UNCONSOLIDaTED CONDENSED INTErIm prOfIT aND LOSS aCCOUNT (UN-aUDITED)

FOR THE HALF YEAR ENDED 31 DECEMBER 2014


UNCONSOLIDaTED CONDENSED INTErIm STaTEmENT Of COmprEHENSIvE INCOmE


31 December 31 December 31 December 31 December2014 2013 2014 2013

PROFIT AFTER TAXATION 325,499,234 1,266,642,089 563,986,376 1,042,832,971

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to profit or loss - - - - Items that may be reclassified subsequently to profit or loss - - - -

Other comprehensive income for the period - - - -

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 325,499,234 1,266,642,089 563,986,376 1,042,832,971


__________________Chief Executive

------------------------- Rupees -------------------------

______________Director


(UN-aUDITED)


31 December 31 December Note 2014 2013

Rupees RupeesCASH FLOWS FROM OPERATING ACTIVITIES

Cash utilized in operations 10 (1,460,859,304) (3,697,286,430) Finance cost paid (654,076,816) (542,983,105) Income tax paid (196,336,149) (228,984,411) Net decrease / (increase) in long term loans to employees 1,668,411 (390,300) Net decrease / (increase) in long term security deposits 388,227 (50,000) Net cash utilized in operating activities (2,309,215,631) (4,469,694,246)

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment (318,305,854) (1,899,262,759) Proceeds from sale of property, plant and equipment 14,249,600 446,901 Short term investments made 18,142,282 1,053,122 Investment in subsidiary company (515,914,476) - Dividend received from subsidiary company 656,550,370 771,446,685 Interest income received 928,598 3,213,761 Net cash used in investing activities (144,349,480) (1,123,102,290)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long term financing - 1,658,000,000 Repayment of long term financing and redeemable capital (945,525,057) (1,016,358,386) Short term borrowings - net 3,643,246,640 5,111,117,237 Dividend paid (195,127,099) (357,947,325) Net cash from financing activities 2,502,594,484 5,394,811,526

Net increase / (decrease) in cash and cash equivalents 49,029,373 (197,985,010)

Cash and cash equivalents at the beginning of the period 18,238,675 259,237,529

Cash and cash equivalents at the end of the period 67,268,048 61,252,519


_________________ Chief Executive Director

HALF YEAR ENDED

_____________

UNCONSOLIDaTED CONDENSED INTErIm CaSH fLOw STaTEmENT (UN-aUDITED)



FOR

TH

E H

AL

F Y

EA

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ND

ED

31

DE

CE

MB

ER

201

4

NIS

Ha

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Balan

ce as

at 30

June

2013

(Aud

ited)

1,819

,860,2

80

1,6

29,22

1,278

4,571

,189,8

91

6,2

00,41

1,169

8,020

,271,4

49

Tran

sacti

ons w

ith ow

ners:

Fina

l divi

dend

for th

e yea

r end

ed 30

June

2013

@ R

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s 2 pe

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-

(3

63,97

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(363

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57)

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Issue

of bo

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hare

s dur

ing th

e per

iod18

1,986

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(1

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6,020

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(181

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-

18

1,986

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-

(5

45,95

8,077

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(545

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77)

(3

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Profi

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ende

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-

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1,266

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66,64

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1,266

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89

Ot

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1 Dec

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3-

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1 Dec

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66,64

2,089

1,266

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1,2

66,64

2,089

Balan

ce as

at 31

Dec

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3 (Un

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2,001

,846,3

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1,6

29,22

1,278

5,291

,873,9

03

6,9

21,09

5,181

8,922

,941,4

81

Loss

for th

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ende

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-

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(505

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(5

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5,554

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(505

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-

-

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Total

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the h

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0 Jun

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(5

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Balan

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at 30

June

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(Aud

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2,001

,846,3

00

1,6

29,22

1,278

4,786

,528,3

49

6,4

15,74

9,627

8,417

,595,9

27

Tran

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Fina

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for th

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@ R

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(2

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4,630

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(200

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(2

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4,630

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Profi

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ende

d 31 D

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014

-

-

325,4

99,23

4

325,4

99,23

4

325,4

99,23

4

Othe

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or th

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ende

d 31 D

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-

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Total

com

preh

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ome f

or th

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ende

d 31 D

ecem

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-

-

325,4

99,23

4

325,4

99,23

4

325,4

99,23

4

Balan

ce as

at 31

Dec

embe

r 201

4 (U

n-au

dited

)2,0

01,84

6,300

1,629

,221,2

78

4,9

11,84

2,953

6,541

,064,2

31

8,5

42,91

0,531

The a

nnex

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tes fo

rm an

integ

ral p

art o

f this

unco

nsoli

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cond

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d inte

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l infor

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____

____

____

____

___

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1. THE COMPANY AND ITS OPERATIONS

Nishat(Chunian)Limited(“theCompany”)isapubliclimitedcompanyincorporatedinPakistanundertheCompaniesOrdinance,1984andislistedontheLahore,KarachiandIslamabadStockExchanges.Itsregisteredofficeissituatedat31-Q,GulbergII,Lahore.TheCompanyisengagedinthebusinessofspinning,weaving,dyeing,printing,stitching,processing,doubling,sizing,buying,sellingandotherwisedealinginyarn,fabricandmade-upsmadefromrawcotton,syntheticfiberandcloth,andtogenerate,accumulate,distribute,supplyandsellelectricity.

2. BASIS OF PREPARATION

Thisunconsolidatedcondensedinterimfinancialinformationisun-auditedbutsubjecttolimitedscope review by the statutory auditors and is being submitted to shareholders as requiredby section 245 of the Companies Ordinance, 1984. This unconsolidated condensed interimfinancial information of the Company for the half year ended 31 December 2014 has beenprepared inaccordancewith the requirementsof the InternationalAccountingStandard (IAS)34 ‘InterimFinancialReporting’ andprovisionsof anddirectives issuedunder theCompaniesOrdinance,1984.Incasewhererequirementsdiffer,theprovisionsofordirectivesissuedunderthe CompaniesOrdinance, 1984 have been followed. This unconsolidated condensed interimfinancialinformationshouldbereadinconjunctionwiththeprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended30June2014.

3. ACCOUNTINGPOLICIES

The accounting policies and methods of computations adopted for the preparation of thisunconsolidated condensed interim financial information are the same as applied in thepreparationoftheprecedingauditedannualpublishedfinancialstatementsoftheCompanyforthe year ended 30 June 2014.

4. CRITICALACCOUNTINGESTIMATESANDJUDGMENTS

Thepreparationof thisunconsolidatedcondensed interimfinancial information in conformitywith the approved accounting standards requires the use of certain critical accountingestimates.ItalsorequiresthemanagementtoexerciseitsjudgmentintheprocessofapplyingtheCompany’saccountingpolicies.Estimatesandjudgmentsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.

During preparation of this unconsolidated condensed interim financial information, thesignificantjudgmentsmadebythemanagementinapplyingtheCompany’saccountingpoliciesandthekeysourcesofestimationanduncertaintywerethesameasthosethatappliedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended30June 2014.

NOTES TO THE UNCONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)





Un-audited Audited31 December 30 June

2014 2014Rupees Rupees

5 LONG TERM FINANCING

From banking companies / financial institutions - secured

Long term loans (Note 5.1) 3,550,202,178 4,416,031,413 Long term musharaka (Note 5.2) 217,500,000 275,000,000

3,767,702,178 4,691,031,413

5.1 Long term loans

Opening balance 6,020,373,190 4,875,089,955

Add: Obtained during the period / year - 2,658,000,000

Less: Repayments during the period / year 785,525,057 1,512,716,765

Closing balance 5,234,848,133 6,020,373,190

Less: Current portion shown under current liabilities 1,684,645,955 1,604,341,777 3,550,202,178 4,416,031,413

5.2 Long term musharaka

Opening balance 470,000,000 665,000,000

Add: Obtained during the period / year - -

Less: Repayments during the period / year 97,500,000 195,000,000

Closing balance 372,500,000 470,000,000

Less: Current portion shown under current liabilities 155,000,000 195,000,000 217,500,000 275,000,000




6 REDEEMABLE CAPITAL

Privately placed term finance certificates - secured

Opening balance 156,250,000 281,250,000

Less: Repayments during the period / year 62,500,000 125,000,000

Closing balance 93,750,000 156,250,000

Less: Current portion shown under current liabilities 93,750,000 125,000,000 - 31,250,000

7 CONTINGENCIES AND COMMITMENTS

Contingencies

i)

ii)

iii)

iv)

v)

The Company is in appeal before CIR(A) against the order of ACIR. ACIR has passed an order under section 122(5A) of theIncome Tax Ordinance, 2001 for tax year 2012 whereby a demand of Rupees 125.162 million has been raised. Noprovision against the demand has been made in this condensed interim financial information as the Company is hopeful ofa favourable outcome of appeal based on opinion of the tax advisor.

There is no significant change in the status of contingencies as disclosed in the preceding audited annual publishedfinancial statements of the Company for the year ended 30 June 2014 except for the following:

Post dated cheques have been issued to custom authorities in respect of duties amounting to Rupees 312.129 million (30June 2014: Rupees 292.511 million) on imported material availed on the basis of consumption and export plans. In theevent the documents of exports are not provided on due dates, cheque issued as security shall be encashable.

The Company is in appeal before Commissioner Inland Revenue [CIR(A)] against the order of Additional CommissionerInland Revenue (ACIR). ACIR has passed an order under section 122(5A) of the Income Tax Ordinance, 2001 for tax year2013 whereby a demand of Rupees 27.845 million has been raised. No provision against the demand has been made inthis condensed interim financial information as the Company is hopeful of a favourable outcome of appeal based onopinion of the tax advisor.

Guarantees of Rupees 314.130 million (30 June 2014: Rupees 269.059 million) have been issued by the banks of the Company to Sui Northern Gas Pipelines Limited against gas connections, Shell Pakistan Limited against purchase of furnace oil and Lahore Electric Supply Company Limited against electricity connection.

The Company has impugned selection its tax affairs for audit in terms of section 214C of the Income Tax Ordinance, 2001 for tax year 2013. The matter has been raised before the Member Inland Revenue Taxpayers Audit for exclusion of the Company’s name from list of cases selected for audit.




Commitments

i)ii)

iii)



8 FIXED ASSETS

Property, plant and equipment:

Operating fixed assets (Note 8.1) 8,980,355,070 8,512,710,263 Capital work-in-progress (Note 8.2) 334,509,479 860,189,843

9,314,864,549 9,372,900,106 Intangible asset:

Computer software (Note 8.3) 7,668,239 9,106,034 9,322,532,788 9,382,006,140



8.1 Operating fixed assets

Opening book value 8,512,710,263 5,986,747,224 Add: Cost of additions during the period / year (Note 8.1.1) 843,986,218 3,143,607,044 Less: Book value of deletions during the period / year (Note 8.1.2) 7,171,495 4,737,776 Less: Depreciation charged during the period / year 369,169,916 612,906,229 Closing book value 8,980,355,070 8,512,710,263

8.1.1 Cost of additions during the period / year

Freehold land 38,377,128 16,331,538 Buildings on freehold land 260,801,473 654,202,667 Plant and machinery 372,823,359 2,148,057,522 Standby equipment - 2,845,255 Electric installations 117,763,953 227,233,720 Factory equipment 27,053,078 48,812,684 Furniture, fixtures and equipment 10,464,199 8,990,058 Office equipment 3,860,944 10,361,431 Motor vehicles 12,842,084 26,772,169

843,986,218 3,143,607,044

Contracts for capital expenditure are amounting to Rupees 283.412 million (30 June 2014: Rupees 128.530 million).Letters of credit other than for capital expenditure are amounting to Rupees 372.106 million (30 June 2014: Rupees269.393 million) Outstanding foreign currency forward contracts of Rupees 960.762 million (30 June 2014: Rupees 2,874.933 million).




8.1.2 Book value of deletions during the period / year

Cost of deletionsOffice equipment 43,000 374,142 Furniture, fixtures and equipment 201,036 - Electric installations - 3,876,413 Motor vehicles 18,297,927 8,576,652

18,541,963 12,827,207 Less: Accumulated depreciation 11,370,468 8,089,431 Book value of deletions during the period / year 7,171,495 4,737,776

8.2 Capital work-in-progress

Civil works on freehold land 232,161,834 172,681,787 Plant and machinery - 258,722,704 Mobilization advances 3,709,609 8,030,572 Letters of credit 94,669,568 16,384,824 Advances for capital expenditures 3,968,468 30,066,886 Unallocated expenditures - 374,303,070

334,509,479 860,189,843

8.3 Intangible asset - Computer software

Opening book value 9,106,034 566,431

Add: Cost of additions during the period / year - 9,585,298

Less: Amortization charged during the period / year 1,437,795 1,045,695 Closing book value 7,668,239 9,106,034




9 COST OF SALES

Raw materials consumed 6,862,776,805 6,706,759,679 3,689,668,384 3,598,568,578 Packing materials consumed 332,227,685 308,755,028 182,015,895 174,183,362 Stores, spare parts and loose tools consumed 492,622,342 567,534,143 208,781,394 324,359,424 Salaries, wages and other benefits 925,206,485 716,105,874 504,462,683 401,312,542 Fuel and power 1,563,866,151 1,528,626,045 833,138,599 778,970,746 Insurance 20,948,584 19,366,276 10,633,919 10,519,612 Postage and telephone 3,705,742 241,156 255,945 121,180 T ravelling and conveyance 10,987,511 10,566,302 5,363,302 4,664,787 Vehicles' running and maintenance 12,850,905 12,248,941 6,823,260 6,672,921 Entertainment 3,395,046 2,716,237 1,275,848 1,114,978 Depreciation on operating fixed assets 365,933,520 236,310,721 187,701,592 117,220,333 Repair and maintenance 128,195,504 10,774,065 121,962,527 7,624,701 Other factory overheads 37,930,785 22,682,255 28,665,568 7,363,990

10,760,647,065 10,142,686,722 5,780,748,916 5,432,697,154 Work-in-process:

Opening stock 507,370,103 376,405,750 575,142,405 528,035,858

Closing stock (555,432,408) (678,704,918) (555,432,408) (678,704,918) (48,062,305) (302,299,168) 19,709,997 (150,669,060)

Cost of goods manufactured 10,712,584,760 9,840,387,554 5,800,458,913 5,282,028,094

Finished goods and waste - opening stocks:

Finished goods 695,735,249 478,795,009 699,445,158 596,007,735

Waste 39,999,009 54,134,534 44,398,401 35,999,773 735,734,258 532,929,543 743,843,559 632,007,508

11,448,319,018 10,373,317,097 6,544,302,472 5,914,035,602 Finished goods and waste - closing stocks:

Finished goods (1,053,775,036) (921,564,243) (1,053,775,036) (921,564,243)

Waste (50,382,644) (45,536,153) (50,382,644) (45,536,153) (1,104,157,680) (967,100,396) (1,104,157,680) (967,100,396)

10,344,161,338 9,406,216,701 5,440,144,792 4,946,935,206


UN-AUDITEDHALF YEAR ENDED QUARTER ENDED

-------------------------------------------- R u p e e s ---------------------------------------




31 December 31 December2014 2013

Rupees Rupees10 CASH UTILIZED IN OPERATIONS

Profit before taxation 456,523,419 1,274,136,227

Adjustments for non-cash charges and other items:

Depreciation on operating fixed assets 369,169,916 241,678,826 Amortization on intangible asset 1,437,795 566,431 Gain on sale of property, plant and equipment (7,078,105) (299,020) Return on bank deposits (928,598) (3,213,761) Finance cost 690,517,887 621,469,352 Dividend income (656,550,370) (1,031,722,010) Working capital changes (Note 10.1) (2,313,951,248) (4,799,902,475)

(1,460,859,304) (3,697,286,430)

10.1 Working capital changes

(Increase) / decrease in current assets:

Stores, spare parts and loose tools (18,747,085) (279,312,986) Stock-in-trade (3,348,890,279) (6,258,999,347) T rade debts 452,655,744 145,093,571 Loans and advances (677,334,937) (474,422,204) Short term prepayments (23,271,747) (5,380,060) Other receivables 346,178,621 234,528,569

(3,269,409,683) (6,638,492,457) Increase in current liabilities:

T rade and other payables 955,458,435 1,838,589,982

(2,313,951,248) (4,799,902,475)

11 SEGMENT INFORMATION

11.1

Spinning: Production of different quality of yarn using natural and artificial fiber.Weaving: Production of different quality of greige fabric using yarn.Processing and Home Textile:

Power Generation: Generation and distribution of power.

The Company has four reportable operating segments. The following summary describes the operation in each of theCompany's reportable segments:

UN-AUDITED

Processing of greige fabric for production of printed and dyed fabric andmanufacturing of home textile articles.

HALF YEAR ENDED




11.2

.SEG

MEN

T IN

FORM

ATI

ON

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

31-D

ec-14

31-D

ec-13

Sale

sEx

tern

al- E

xpor

t2,

575,

517,

786

3,11

7,15

5,10

31,

221,

160,

555

253,

830,

720

200,

900,

857

-

55

6,95

3,73

468

8,84

5,10

126

3,50

9,64

528

8,02

2,19

02,

770,

154,

760

3,41

1,99

6,17

5-

-

-

-

7,

588,

197,

337

7,75

9,84

9,28

9- L

ocal

589,

930,

463

567,

259,

637

1,24

5,23

2,09

11,

527,

100,

118

1,15

7,35

8,01

7-

558,

256,

728

530,

105,

955

-

-

161,

789,

260

226,

664,

029

90,6

84.0

0

-

-

-

3,71

2,65

7 ,24

32,

851,

129,

739

3,16

5,44

8,24

93,

684,

414,

740

2,46

6,39

2,64

61,

780,

930,

838

1,35

8,25

8,87

4-

1,11

5,21

0,46

21,

218,

951,

056

263,

509,

645

288,

022,

190

2,93

1,94

4,02

03,

638,

660,

204

90,6

84.0

0

-

-

-

11,3

00,8

54,5

8010

,610

,979

,028

- In

ter-

segm

ent

43,5

19,8

3821

2,02

9,13

91,

012,

251,

567

797,

633,

427

5,00

1,90

5-

1,60

7,72

5,60

22,

134,

077,

885

-

-

2,13

2,90

8,32

4-

1,55

2,70

5,71

51,

084,

581,

702

(6,3

54,1

12,9

51)

(4,2

28,3

22,1

53)

-

-

3,20

8,96

8,08

73,

896,

443,

879

3,47

8,64

4,21

32,

578,

564,

265

1,36

3,26

0,77

9-

2,72

2,93

6,06

43,

353,

028,

941

263,

509,

645

288,

022,

190

5,06

4,85

2,34

43,

638,

660,

204

1,55

2,79

6,39

91,

084,

581,

702

(6,3

54,1

12,9

51)

(4,2

28,3

22,1

53)

11,3

00,8

54,5

8010

,610

,979

,028

Cost

of s

ales

(2,9

65,0

86,5

12)

(3,4

04,0

57,6

31)

(3,1

65,5

66,2

34)

(2,2

69,3

71,7

54)

(1,2

90,4

91,0

01)

-

(2

,663

,869

,236

)(3

,192

,361

,565

)(2

57,7

93,5

07)

(274

,221

,006

)(4

,967

,017

,795

)(3

,382

,788

,937

)(1

,388

,450

,004

)(1

,111

,737

,961

)6,

354,

112,

951

4,22

8,32

2,15

3(1

0,34

4,16

1,33

8)(9

,406

,216

,701

)G

ross

profit

/ (lo

ss)

243,

881,

575

492 ,

386,

248

313,

077,

979

309,

192,

511

72,7

69,7

78-

59,0

66,8

2816

0,66

7,37

65,

716,

138

13,8

01,1

8497

,834

,549

255,

871,

267

164,

346,

395

(27,

156,

259)

-

-

956,

693,

242

1,20

4,76

2,32

7

Dist

ribu�

on co

st(7

5,49

4,93

3)(6

6,72

6,13

9)(4

3,68

9,65

2)(6

1,59

3,36

0)(1

4,13

4,82

0)-

(40,

991,

510)

(31,

719,

345)

(3,9

66,9

16)

(2,7

24,6

63)

(162

,895

,347

)(1

33,9

04,7

82)

-

-

-

-

(341

,173

,177

)(2

96,6

68,2

89)

Adm

inis

tra�

ve e

xpen

ses

(11,

379,

444)

(10,

999,

143)

(11,

420,

681)

(14,

580,

260)

(11,

503,

156)

-

(1

7,09

6,05

6)(1

4,20

7,94

2)(1

,654

,455

)(1

,220

,450

)(5

1,08

3,92

3)(3

2,82

7,50

5)(6

,291

,578

)(2

,305

,703

)-

-

(1

10,4

29,2

93)

(76,

141,

003)

(86,

874,

376)

(77,

725,

283)

(55,

110,

333)

(76,

173,

619)

(25,

637,

976)

-

(5

8,08

7,56

6)(4

5,92

7,28

7)(5

,621

,371

)(3

,945

,113

)(2

13,9

79,2

70)

(166

,732

,287

)(6

,291

,578

)(2

,305

,703

)-

-

(4

51,6

02,4

70)

(372

,809

,292

)

Profi

t / (l

oss)

bef

ore

taxa�o

n an

d un

allo

cate

d in

com

e an

d ex

pens

es15

7,00

7,19

841

4,66

0,96

525

7,96

7,64

623

3,01

8,89

247

,131

,803

-

97

9,26

211

4,74

0,08

994

,767

9,85

6,07

1(1

16,1

44,7

21)

89,1

38,9

8015

8,05

4,81

7(2

9,46

1,96

2)-

-

50

5,09

0,77

283

1,95

3,03

5

Una

lloca

ted

inco

me

and

expe

nses

Oth

er e

xpen

ses

(44,

531,

178)

(89,

106,

499)

Oth

er in

com

e68

6,48

1,71

2

1,

152,

759,

043

Fi

nanc

e co

st

(690

,517

,887

)

(6

21,4

69,3

52)

Taxa�o

n(1

31,0

24,1

8 5)

(7,4

94,1

38)

Pr

ofit a

�er t

axa�

on32

5,49

9,23

41,

266,

642,

089

Half

Year

End

edHa

lf Ye

ar E

nded

Zone

- 1

Zone

- 2

Zone

- 3

Unit-

1Un

it-2

Half

Year

End

edHa

lf Ye

ar E

nded

Half

Year

End

edHa

lf Ye

ar E

nded

(Un-

audi

ted)

Spin

ning

We

avin

gPr

oces

sing

and

Hom

e Tex

tile

Powe

r Gen

erati

onEl

imin

ation

of i

nter

-segm

ent

trans

actio

nsTo

tal -

Com

pany

(Un-

audi

ted)

(Un-

audi

ted)

(Un-

audi

ted)

(Un-

audi

ted)

(Un-

audi

ted)

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - -

R u

p e e

s - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - -


11.2

Tran

sacti

ons a

mon

g the

oper

ating

segm

ents

are r

ecor

ded a

t arm

's len

gth pr

ices u

sing a

dmiss

ible v

aluati

on m

ethod

s. Int

er se

gmen

t sale

s and

purc

hase

s hav

e bee

n elim

inated

from

the t

otal.

31 D

ecem

ber

2014

31 D

ecem

ber

2013

31 D

ecem

ber

2014

31 D

ecem

ber

2013

31 D

ecem

ber

2014

31 D

ecem

ber

2013

31 D

ecem

ber

2014

31 D

ecem

ber

2013

31 D

ecem

ber

2014

31 D

ecem

ber

2013

31 D

ecem

ber

2014

31 D

ecem

ber

2013

Sales

:Ex

terna

l6,9

90,09

9,769

5,4

65,34

5,578

1,3

78,72

0,107

1,5

06,97

3,246

2,9

31,94

4,020

3,6

38,66

0,204

90

,684

-

-

-

11

,300,8

54,58

0

10,61

0,979

,028

Int

er-se

gmen

t1,0

60,77

3,310

1,0

09,66

2,566

1,6

07,72

5,602

2,1

34,07

7,885

2,1

32,90

8,324

-

1,552

,705,7

15

1,084

,581,7

02

(6,35

4,112

,951)

(4

,228,3

22,15

3)

-

-

8,050

,873,0

79

6,475

,008,1

44

2,986

,445,7

09

3,641

,051,1

31

5,064

,852,3

44

3,638

,660,2

04

1,552

,796,3

99

1,084

,581,7

02

(6,35

4,112

,951)

(4

,228,3

22,15

3)

11

,300,8

54,58

0

10,61

0,979

,028

Co

st of

sales

(7,42

1,143

,747)

(5

,673,4

29,38

5)

(2,92

1,662

,743)

(3

,466,5

82,57

1)

(4,96

7,017

,795)

(3

,382,7

88,93

7)

(1,38

8,450

,004)

(1

,111,7

37,96

1)

6,354

,112,9

51

4,228

,322,1

53

(1

0,344

,161,3

38)

(9

,406,2

16,70

1)

Gros

s pro

fit / (l

oss)

629,7

29,33

2

80

1,578

,759

64,78

2,966

17

4,468

,560

97,83

4,549

25

5,871

,267

164,3

46,39

5

(2

7,156

,259)

-

-

95

6,693

,242

1,2

04,76

2,327

Distr

ibutio

n cos

t(1

33,31

9,404

)

(1

28,31

9,499

)

(4

4,958

,426)

(34,4

44,00

8)

(1

62,89

5,347

)

(1

33, 90

4,782

)

-

-

-

-

(341

,173,1

77)

(296

,668,2

89)

Adm

inistr

ative

expe

nses

(34,3

03,28

1)

(2

5,579

,403)

(18,7

50,51

1)

(1

5,428

,392)

(51,0

83,92

3)

(3

2,827

,505)

(6,29

1,578

)

(2,30

5,703

)

-

-

(1

10,42

9,293

)

(7

6,141

,003)

(167

,622,6

85)

(153

,898,9

02)

(63,7

08,93

7)

(4

9,872

,400)

(213

,979,2

70)

(166

,732,2

87)

(6,29

1,578

)

(2,30

5,703

)

-

-

(4

51,60

2,470

)

(3

72,80

9,292

)

Profi

t / (lo

ss) b

efore

taxa

tion a

nd

unall

ocate

d inc

ome a

nd ex

pens

es46

2,106

,647

647,6

79,85

7

1,0

74,02

9

124,5

96,16

0

(1

16,14

4,721

)

89

,138,9

80

158,0

54,81

7

(2

9,461

,962)

-

-

50

5,090

,772

83

1,953

,035

Unall

ocate

d inc

ome a

nd ex

pens

es:

Othe

r ope

ratin

g exp

ense

s(4

4,531

,178)

(8

9,106

,499)

Othe

r ope

ratin

g inc

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12 TRANSACTIONS WITH RELATED PARTIES

i. Transactions


Subsidiary companies

Sale of goods 616,030,863 785,085,120 317,928,888 635,250,873 Dividend income 656,550,370 1,031,722,010 375,171,640 1,031,722,010 Common facilities cost charged 9,000,000 9,000,000 4,500,000 4,500,000 Investment made 615,551,980 - 505,748,728 -

Associated undertakings

Insurance premium paid 53,003,172 38,153,247 18,320,739 6,001,160 Insurance claims received 6,279,445 1,780,349 4,140,380 646,140 Donation paid 1,848,000 21,480,000 1,848,000 21,480,000 Purchase of operating fixed asset - 925,000 - 925,000

Other related parties

Purchase of goods 5,408,635 29,787,300 1,763,758 24,948,675 Sale of goods 429,184,184 82,286,256 172,099,789 52,109,046 Dividend paid 33,303,285 60,551,432 33,303,285 60,551,432 Contribution to employee's provident fund 37,647,396 13,589,374 28,847,958 6,439,663 Remuneration of key management personnel 70,875,300 51,535,438 70,875,300 51,535,438

ii. Period end balances Subsidiary companies

Associated companies


Total

Trade and other payables - 11,355,712 - 11,355,712 Long term investment 2,502,233,181 - - 2,502,233,181 T rade debts 450,007,161 - 22,694,461 472,701,622 Loans and advances - - 2,341,165 2,341,165 Other receivables 13,259,056 1,885,835 - 15,144,891 Short term borrowing - 26,816,215 - 26,816,215

---------------------------- Rupees ---------------------------


Related parties comprise subsidiary companies, associated undertakings, other related parties, key managementpersonnel and post employment benefit plan. The Company in the normal course of business carries out transactions withvarious related parties. Details of transactions with related parties are as follows:

-------------------------------------------- R u p e e s ---------------------------------------

UN-AUDITED

As at 31 December 2014 (Un-audited)




Subsidiary companies

Associated companies


Total

Trade and other payables - 1,438,593 - 1,438,593 Long term investment 1,986,318,705 - 1,986,318,705 T rade debts 613,576,538 - 32,500,266 646,076,804 Loans and advances - - 3,178,353 3,178,353 Other receivables 281,378,730 103,060 3,179,649 284,661,439 Bank balances - 5,993,000 - 5,993,000

13 FINANCIAL RISK MANAGEMENT

14 CORRESPONDING FIGURES

15 DATE OF AUTHORIZATION FOR ISSUE

As at 30 June 2014 (Audited)

Corresponding figures have been re-arranged, wherever necessary, for the purpose of comparison, however, no significantre-arrangements have been made.

This unconsolidated condensed interim financial information was approved by the Board of Directors and authorized forissue on Feb 24, 2015.

In order to comply with the requirements of International Accounting Standard (IAS) 34 'Interim Financial Reporting', theunconsolidated condensed interim balance sheet and unconsolidated condensed interim statement of changes in equityhave been compared with the balances of annual audited financial statements of preceding financial year, whereas, theunconsolidated condensed interim profit and loss account, unconsolidated condensed interim statement ofcomprehensive income and unconsolidated condensed interim cash flow statement have been compared with thebalances of comparable period of immediately preceding financial year.

Director _____________

The Company's financial risk management objectives and policies are consistent with those disclosed in the precedingaudited annual published financial statements of the Company for the year ended 30 June 2014.

---------------------------- Rupees ---------------------------

Chief Executive__________________




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Rupees Rupees Rupees Rupees

SALES 24,861,767,905 24,439,155,968 12,610,237,261 12,643,346,999 COST OF SALES (20,983,399,074) (21,070,494,208) (10,435,303,358) (11,009,915,420) GROSS PROFIT 3,878,368,830 3,368,661,760 2,174,933,902 1,633,431,579

- DISTRIBUTION COST (418,476,335) (340,096,973) (227,452,775) (166,042,524) ADMINISTRATIVE EXPENSES (166,761,124) (135,993,334) (91,967,588) (80,274,433) OTHER OPERATING EXPENSES (82,476,130) (151,016,268) (71,374,651) (59,246,573)

(667,713,589) (627,106,575) (390,795,014) (305,563,530) 3,210,655,241 2,741,555,185 1,784,138,888 1,327,868,049

OTHER OPERATING INCOME 49,275,699 159,891,916 127,565,311 70,225,872 - PROFIT FROM OPERATIONS 3,259,930,940 2,901,447,101 1,911,704,199 1,398,093,921

FINANCE COST (1,762,988,214) (1,492,376,325) (915,275,034) (777,152,411)

PROFIT BEFORE TAXATION 1,496,942,726 1,409,070,776 996,429,165 620,941,510

TAXATION (131,024,185) (7,501,054) (78,666,564) 43,594,661

PROFIT AFTER TAXATION 1,365,918,541 1,401,569,722 917,762,601 664,536,171

PROFIT ATTRIBUTABLE TO:

EQUITY HOLDERS OF THE HOLDING COMPANY 528,608,210 816,566,828 NON-CONTROLLING INTEREST 837,310,331 585,002,894

1,365,918,541 1,401,569,722 917,762,601

EARNINGS PER SHARE - BASIC & DILUTED 2.64 4.08 2.11 1.66

The annexed notes form an integral part of this consolidated condensed interim financial information.

__________________ ____________CHIEF EXECUTIVE DIRECTOR

Half Year Ended Quarter Ended

422,222,821 331,470,464 495,539,780 333,065,707

664,536,171

CONSOLIDaTED CONDENSED INTErIm prOfIT aND LOSS aCCOUNT (UN-aUDITED)




Rupees Rupees Rupees Rupees

PROFIT AFTER TAXATION 1,365,918,541 1,401,569,722 917,762,601 664,536,171

OTHER COMPREHENSIVE INCOME 330,442 - 127,985 114,472

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,366,248,983 1,401,569,722 917,890,586 664,650,643

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

EQUITY HOLDERS OF THE HOLDING COMPANY 528,938,652 816,566,828 NON-CONTROLLING INTEREST 837,310,331 585,002,894

1,366,248,983 1,401,569,722 -

The annexed notes form an integral part of this consolidated condensed interim financial information.

__________________ ____________CHIEF EXECUTIVE DIRECTOR

Half Year Ended Quarter Ended

CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of COmprEHENSIvE INCOmE (UN-aUDITED)



31 December 31 DecemberNote 2014 2013

Rupees Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from opera�ons 6 2,453,687,649 (4,284,302,807) Net increase in long term security deposits 388,227 (50,000) Finance cost paid (1,781,900,430) (1,486,414,057) Income tax paid (196,336,149) (229,536,945) Long term loans to employees (5,404,212) (25,710)

Net cash (used in) / from opera�ng ac�vi�es 470,435,085 (6,000,329,519)

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment (341,511,842) (2,157,692,800) Proceeds from sale of property, plant and equipment 16,172,500 446,901 Short term investments made 12,110,294 1,053,122 Profit on bank deposits received 2,061,751 3,717,681

Net cash used in inves�ng ac�vi�es (311,167,297) (2,152,475,096)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long term financing - 1,658,000,000 Repayment of long term financing (1,538,834,546) (1,526,998,964) Short term borrowings - net 2,405,319,170 8,816,530,703 Dividend paid to non-controlling interest (893,061,988) - Dividends paid (195,127,099) (1,073,152,531)

Net cash from / (used in) financing ac�vi�es (221,704,463) 7,874,379,208

Net decrease in cash and cash equivalents (62,436,675) (278,425,407)

Impact of exchange transla�on 330,442 770,503

Cash and cash equivalents at the beginning of the year 1,067,350,401 540,719,734

Cash and cash equivalents at the end of the year 1,005,244,169 263,064,830 -

The annexed notes form an integral part of this consolidated condensed interim financial informa�on.

___________________ ____________ CHIEF EXECUTIVE DIRECTOR

Half Year Ended

CONSOLIDaTED CONDENSED INTErIm CaSH fLOw STaTEmENT (UN-aUDITED)



Capi

tal re

serv

e

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ce as

at 30

June

2013

- (au

dited

)1,8

19,86

0,280

56,55

5

1,6

29,22

1,278

6,3

84,26

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8,0

13,48

6,278

9,833

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13

3,552

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88

13

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73,90

1

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d 31

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r 201

3-

77

0,503

-

81

6,566

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816,5

66,82

8

817,3

37,33

1

585,0

02,89

4

1,402

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25

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ende

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@ R

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-

-

(36

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-

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-

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29,22

1,278

6,6

54,87

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8,2

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6,768

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3,148

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5

Total

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30 Ju

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83

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6,954

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- (au

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01,84

6,300

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7)

1,6

29,22

1,278

6,4

78,72

7,828

8,1

07,94

9,106

10,10

9,738

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3,443

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18

13

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26,66

7

ende

d 31

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r 201

4-

33

0,442

-

52

8,608

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528,6

08,21

0

528,9

38,65

2

837,3

10,33

1

1,366

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83

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t-

-

-

-

-

-

(62

9,100

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(629,1

00,00

0)

Final

divide

nd fo

r the

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CONSOLIDaTED CONDENSED INTErIm STaTEmENT Of CHaNGES IN EQUITy (UN-aUDITED)



SELECTED NOTES TO THE CONSOLIDaTED CONDENSED INTErIm fINaNCIaL INfOrmaTION (UN-aUDITED)


1. GROUP INFORMATION

The Group consists of: HoldingCompany - Nishat(Chunian)Limited

SubsidiaryCompanies - NishatChunianPowerLimited - Nishat Chunian USA Inc. - NCElectricCompanyLimited

Nishat(Chunian)Limited Nishat(Chunian)Limited(“theHoldingCompany”)isapubliclimitedCompanyincorporatedin

PakistanundertheCompaniesOrdinance,1984andislistedontheKarachi,LahoreandIslamabadStock Exchanges. Its registered office is situated at 31-Q,Gulberg II, Lahore. The Company isengagedinbusinessofspinning,weaving,dyeing,printing,stitching,processing,doubling,sizing,buying, selling and otherwise dealing in yarn, fabrics andmade-ups made from raw cotton,syntheticfibreandclothandtogenerate,accumulate,distribute,supplyandsellelectricity.

NishatChunianPowerLimited

Nishat Chunian Power Limited (“the Subsidiary Company”) is a public limited CompanyincorporatedinPakistanundertheCompaniesOrdinance,1984andlistedontheLahoreStockExchange(Guarantee)Limited,KarachiStockExchange(Guarantee)LimitedandIslamabadStockExchange (Guarantee) Limited. The principal activity of the Subsidiary Company is to build,own, operate andmaintain a fuel fired power station having gross capacity of 200MW andnetcapacityof195.722MWatJamberKalan,TehsilPattoki,DistrictKasur,Punjab,Pakistan.Itsregisteredofficeissituatedat31-Q,GulbergII,Lahore.TheSubsidiaryCompanyhascommencedcommercialoperationsfrom21July2010andthetwentyfiveyearstermofthePowerPurchaseAgreement (PPA)withNational Transmission andDespatch Company Limited starts from thisdate.

NishatChunianUSAIncorporation NishatChunianUSAInc.isaforeignsubsidiaryincorporatedundertheBusinessCorporationLaws

of theStateofNewYork.TheregisteredofficeofNishatChunianUSA Inc. issituatedatSuiteNo.639,7West,34thStreetNewYork,NY10001,USA.TheprincipalbusinessoftheSubsidiaryCompanyistoimporthometextileproductsanddistributetolocalretailer.

Nishat Chunian Electric Company

NCElectricCompanyLimitedisapubliclimitedcompanyincporporatedinPakistanon18April2014 under the Companies Ordinance, 1984. The Company is a wholly owned subsidiary ofNishat(Chunian)Limited.Itsregisteredofficeissituatedat31-Q,GulbergII,Lahore.TheprincipalobjectsoftheCompanyaretodevelop,design,construct,ownandacquirecoalpoweredpowergenerationcomplexesand thermal , hydel, solar andwindenergyprojects inPakistanand tocarryonthebusinessofelectricitygeneration,transmissionanddistributioninPakistan.

2. BASIS OF PREPARATION Thisconsolidatedcondensedinterimfinancialinformationisun-auditedandisbeingsubmitted

toshareholdersasrequiredbysection245oftheCompaniesOrdinance,1984.Thisconsolidatedcondensed interim financial information of the Group for the quarter ended 30 September2014hasbeenprepared inaccordancewiththerequirementsoftheInternationalAccountingStandard(IAS)34“InterimFinancialReporting”andprovisionsofanddirectivesissuedundertheCompaniesOrdinance,1984. Incasewhererequirementsdiffer,theprovisionsofordirectivesissuedundertheCompaniesOrdinance,1984havebeenfollowed.Thisconsolidatedcondensedinterimfinancial informationshouldbereadinconjunctionwiththeauditedannualpublished


financialstatementsoftheGroupfortheyearended30June2014.

3. ACCOUNTINGPOLICIES The accounting policies and methods of computations adopted for the preparation of this

consolidatedcondensedinterimfinancialinformationarethesameasappliedinthepreparationoftheprecedingauditedannualpublishedfinancialstatementsoftheGroupfortheyearended30 June 2014.

4. CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS Thepreparationofthisconsolidatedcondensedinterimfinancialinformationinconformitywith

theapprovedaccountingstandardsrequirestheuseofcertaincriticalaccountingestimates. Italso requires the management to exercise its judgment in the process of applying the Group’s accounting policies. Estimates and judgments are continually evaluated and are based onhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.

Duringpreparationofthisconsolidatedcondensedinterimfinancialinformation,thesignificantjudgmentsmadebythemanagement inapplying theGroup’saccountingpoliciesandthekeysources of estimation and uncertaintywere the same as those that applied in the precedingauditedannualpublishedfinancialstatementsoftheGroupfortheyearended30June2014.

5. CONTINGENCIES AND COMMITMENTS

Holding Company

Contingencies

Thereisnosignificantchangeinthestatusofcontingenciesasdisclosedintheprecedingauditedannual financial statements of theCompany for the year ended30 June2014except for thefollowing:

i) Postdatedchequeshavebeenissuedtocustomauthorities inrespectofdutiesamountingtoRupees 312.129 million (30 June 2014: Rupees 292.511 million) on imported material availed onthebasisofconsumptionandexportplans. Intheeventthedocumentsofexportsarenotprovidedonduedates,chequeissuedassecurityshallbeencashable.

ii) GuaranteesofRupees314.130million(30June2014:Rupees269.059million)havebeenissuedbythebanksoftheCompanytoSuiNorthernGasPipelinesLimitedagainstgasconnections,ShellPakistan Limited against purchaseof furnaceoil and Lahore Electric Supply Company Limitedagainstelectricityconnection.

TheCompany is in appeal beforeCommissioner InlandRevenue [CIR(A)] against theorder ofAdditionalCommissionerInlandRevenue(ACIR).ACIRhaspassedanorderundersection122(5A)oftheIncomeTaxOrdinance,2001fortaxyear2013wherebyademandofRupees27.845millionhas been raised.Noprovision against thedemandhas beenmade in this condensed interimfinancial informationas theCompany ishopefulofa favourableoutcomeofappealbasedonopinion of the tax advisor.

TheCompany is in appealbeforeCIR(A) against theorderofACIR.ACIRhaspassedanorderundersection122(5A)oftheIncomeTaxOrdinance,2001fortaxyear2012wherebyademandofRupees125.162millionhasbeenraised.NoprovisionagainstthedemandhasbeenmadeinthiscondensedinterimfinancialinformationastheCompanyishopefulofafavourableoutcomeofappealbasedonopinionofthetaxadvisor.




TheCompanyhas impugned selection its taxaffairs foraudit in termsof section214Cof the

IncomeTaxOrdinance,2001fortaxyear2013.ThematterhasbeenraisedbeforetheMemberInland Revenue Taxpayers Audit for exclusion of the Company’s name from list of cases selected for audit

Commitments

i) Contracts for capital expenditure are amounting to Rupees 283.412 million (30 June 2014:Rupees 128.530 million).

ii) LettersofcreditotherthanforcapitalexpenditureareamountingtoRupees372.106million(30June 2014: Rupees 269.393 million).

iii) Outstanding foreign currency forward contracts of Rupees 960.762 million (30 June 2014: Rupees 2,874.933 million).

SubsidiaryCompany

Contingencies

(i)NationalElectricPowerRegulatoryAuthority(‘NEPRA’)issuedanorderdated8thFebruary,2013throughwhichithasraisedademandofRs243.702millionpayablebythecompanytoNTDCfortheperioduptoJune30,2011inrespectofCalorificValue(‘CV’)adjustmentonfuelconsumedforpowergenerationasperthetermsofthePPAandvariousCVadjustmentmechanismsprescribedbyNEPRA.ThefirstsuchCVadjustmentmechanismwasannouncedbyNEPRAinMarch2009and as per this mechanism, the company has already made a provision of Rs 81.211 million in its financialstatementsfortheaboveCVadjustment.InJuly2011,NEPRAreviseditsCVadjustmentmechanism and directed all Independent Power Producers (‘IPPs’) to maintain consignment-wise CVrecordofthefuelreceivedandconsumedforpowergeneration.Consequently,thecompanystartedmaintainingsuchCVrecordaftersuchdirectionwasreceivedfromNEPRA.

NEPRAdirectedthecompanytosubmitconsignment-wiserecordofCVfortheperioduptoJune30,2011.Thecompanydisputedsuchdirectionasitwasnotrequiredtomaintainconsignment-wiserecordprior to July2011.However,NEPRAcomputedretrospectivelyanddeterminedRs243.702millionpayablebythecompanytoNTDCfortheperioduptoJune30,2011inrespectofCVadjustmentonthebasisofthemechanismdirectedbyitinJuly2011.ThecompanyfiledaMotion for Leave for Review before NEPRA requesting it to reconsider its decision, whichwasdecidedagainstthecompany.Consequently, thecompanyfiledawritpetitionbeforetheIslamabadHighCourtagainstNEPRA’sdecisionon thegrounds that change inCVadjustmentmechanisminJuly2011cannotbeappliedretrospectivelyandcredibleinformationisalsonotavailable fromanysourceuponwhichCVadjustmentcomputationscanbemade.Thecase ispendingadjudicationbeforeIslamabadHighCourt.

Based on the advice of the company’s legal counsel, management feels that there are meritorious grounds to support the company’s stance and the aforesaid NEPRA’s decision is likely to berevoked.Underthesecircumstances,noprovisionofthebalanceamountofRs162.491millionhasbeenmadeinthiscondensedinterimfinancialinformation.

(ii) During the previous year, a sales tax demand of Rs 1,161.548 million was raised against the companythroughorderdatedNovember28,2013bytheAssistantCommissionerInlandRevenue(‘ACIR’)bydisallowinginputsalestaxforthetaxperiodsfromJuly2010toJune2012.Suchamountwasdisallowedonthegroundsthattherevenuederivedbythecompanyonaccountof‘capacitypurchaseprice’wasagainstanon-taxablesupplyandthus,theentireamountofinputsalestaxclaimedbythecompanywasrequiredtobeapportionedwithonlytheinputsalestaxattributableto other revenue stream i.e. ‘energy purchase price’ admissible to the company. Against the




aforesaid order, the company preferred an appeal before the Commissioner Inland Revenue(Appeals)(‘CIR(A)’)whovacatedtheACIR’sorderontheissueregardingapportionmentofinputsales tax. However, the CIR(A) did not adjudicate upon the company’s other grounds of appeal. Consequently,thecompanypreferredanappealbeforetheAppellateTribunalInlandRevenue(‘ATIR’)ontheissuesnotadjudicateduponbytheCIR(A)andtheDepartmentalsopreferredasecondappealbeforetheATIRagainsttheCIR(A)’sorder,whicharebothpendingadjudication.

Furthermore, during the current period, the Deputy Commissioner Inland Revenue (‘DCIR’) issueda showcausenoticedatedNovember11, 2014,whereby intentionshavebeen shownto raisea sales taxdemandofRs1,093.262millionbydisallowing input sales tax claimedbythecompanyforthetaxperiodsfromJuly2010toJune2012ontheabovementionedgroundsoftheACIR.Aggrievedbythisshowcausenotice,thecompanyfiledawritpetitionbeforetheLahoreHighCourt(‘LHC’),wherebytheLHCthroughitsordersdatedDecember2,2014providedinterimrelieftothecompanytotheextentthatnofinalordershallbepassedbytheDCIRuntilthenexthearing.Subsequenttoperiodend,hearingwasheldonJanuary21,2015whichhasbeenadjournedtillMarch31,2015andtheLHCthroughitsorderdatedJanuary21,2015hasprovidedthattheinterimreliefshallcontinuetillthedateofnexthearing.”

Based on the advice of the company’s legal counsel, management believes that there aremeritoriousgrounds todefendthecompany’sstance in respectof theabovementioned inputsalestaxclaimedbythecompany.Consequently,noprovisionhasbeenmadeinthiscondensedinterimfinancialinformation.

(iii) Thebankshaveissuedthefollowingonbehalfofthecompany:

(a) Irrevocable standby letter of credit in favour of Wartsila Pakistan (Private) Limited for Rs45,000,000(June30,2014:Rs45,000,000)asrequiredunderthetermsoftheOperationsandMaintenance Agreement.

(b) LettersofguaranteeofRs6,031,988(June30,2014:Rs5,031,988)infavourofDirector,Exciseand Taxation, Karachi under direction of Sindh High Court in respect of suit filed for levy ofinfrastructure cess.

(c) Standby letterofcredit in favourof IndustrialandCommercialBankofChinaLimited,KarachiBranchforNil (June30,2014:781,357,500) inordertosecurepaymentagainst liabilityoftheCompanytowardsHascolPetroleumLimitedinrespectofimportofFurnaceOil.ThesaidStandbyLetterofCreditwascancelledon20August2014afterthedischargeofliabilityoftheCompanytowardsHascolPetroleumLimited.

(d) LetterofguaranteeofRs65,076,000(June30,2014:Rs65,076,000)infavourofPunjabPowerDevelopment Board, Energy Department, Government of the Punjab, Lahore, in respect ofissuanceofLetterof Interesttothecompanytosetupa660MWImportedCoalFiredPowerPlantatRahimYarKhan,Punjab.




Un-audited AuditedDecember 31, June 30,

2014 2014Commitments in respect of Rupees Rupees

Le�ers of credit and contracts other than for capital expenditure 58,168,974 262,653,932

Un-audited Un-audited Half year ended Half year ended

31 December 31 December2014 2013

Rupees Rupees6. CASH USED IN OPERATIONS

Profit before taxa�on 1,496,942,726 1,409,070,776 Adjustment for non cash charges and other items: Deprecia on on opera ng assets 953,919,665 832,646,700 Amor za on on intangible assets 1,676,295 804,932 Gain on sale of opera ng fixed assets (8,637,527) (299,019) Interest on bank deposits (1,659,740) (3,555,829) Unrealised loss on deriva ve financial instrument 1,714,617 3,347,892 Finance costs 1,762,988,214 1,492,376,325

4,206,944,250 3,734,391,777

(Increase) / decrease in current assets- Stores, spare parts and loose tools (198,630,414) (443,789,794) - Stock in trade (3,574,790,099) (6,802,571,922) - Trade debts 2,184,132,310 (3,221,102,254) - Loans and advances (1,003,706,100) (288,715,507) - Short term deposits and prepayments (102,122,109) (104,240,806) - Other receivables 53,061,688 326,614,918 Increase in current liabili�es - - Trade and other payables 888,798,123 2,515,110,781

(1,753,256,601) (8,018,694,584) Cash generated from opera�ons 2,453,687,649 (4,284,302,807)

Cash flows from opera�ng ac�vi�es before working capital changes

7. TRANSACTIONSWITHRELATEDPARTIES

Therelatedpartiescompriseassociatedcompanies,otherrelatedcompanies,keymanagementpersonnelandpostemploymentbenefitplan.TheGroupinthenormalcourseofbusinesscarriedouttransactionswithvariousrelatedparties.Detailsoftransactionswithrelatedparties,otherthanthosewhichhavebeenspecificallydisclosedelsewhereinthisfinancialinformationareasfollows:




Un-audited Un-audited 31 December 31 December


Associated companyInsurance premium paid 138,867,931 136,626,339 Insurance claims received 6,279,445

-

-

1,780,349 Purchase of Fixed Assets 925,000

Other related par�esPurchase of goods 5,408,635 29,787,300 Sale of goods 429,184,184 82,286,256 Contribu�on to employees' provident fund 20,374,110 14,792,078 Divedend paid to other related par�es 33,303,285 60,551,432 Remunera�on paid to key management personnel 96,829,927 77,898,406 Dona�on to related par�es 28,696,000 63,328,000

Un-audited Audited Quarter ended Year ended31 December 30 June


Period end balances

Bank balances with related party 1,577,915 5,993,381 Due from related par�es 25,035,626 5,535,814 Due to related par�es 462,089

8. EVENTSAFTERBALANCESHEETDATE

TheBoardofDirectors’ofNishatChunianPowerLimited(theSubsidiaryCo)attheirmeetingheldonFebruary24,2015haddeclaredinterimcashdividendofRupess2perordinaryshare(30June2014:Rupees2)forthehalfyearendedDecember31,2014.

9. CORRESPONDING FIGURES

Correspondingfigureshavebeenrearranged/regroupedwherevernecessaryforthepurposeofcomparison.However,nosignificantrearrangements/regroupingshavebeenmade.

10. DATE OF AUTHORIZATION FOR ISSUE

ThisconsolidatedcondensedinterimfinancialinformationwasapprovedandauthorizedforissueonFebruary24,2015bytheBoardofDirectors.

_______________ _______________

ChiefExecutive Director



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