LALPIR POWER kIMITED
LPL-PSX/ August 29, 2025
The General Manager,
Pakistan Stock Exchange Limited, Stock Exchange Building,
Stock Exchange Road, KARACHI.
sua:
Dear Sir,
TRANSMISSION OF QUARTERLY REPORT FOR THk PERIOD kNDED JUNE 30, 2025
We have to inform you the Quarterly Report of Lalpir Power Limited for the period ended June 30, 2025 have been transmitted through PUCARS and is also available on Company's website.
You may please inform the TRF Certificate Holders of the Exchange accordingly. Thanking you,
Yours truly,
KHALID IYIAH COMPANY SEC
HEAD OFFICE : 1•B, AMZ AVENUE, CANAL BANK, GULBERG V, LAI40RE. TEL: +92-42•35717090•96, 35717159•63, FAX: 92•42-35717239 Website: https://www.laIpir.com E-NAIL: lalpil@lalpir.com
REGISTERED 0FFIOE - *!SHATHOUSE, S3Ih, LAWRENCE ROAD, LAHORETEL: 111-113-333 FAX: +92•424636741J
POLITER S7â7i0 /S : LALPIR THERI¥IAL POWER STATIONS, P.O. BOX N0.89, NUZAFfiARGARH. PC•34200, PAKISTAN. TEL: +92-66-2300030 FAX: +92-66•2300260 https://www.IaIpir.com
LALPIR POWER LIMITED
HALF YEARLY
Report 20FOR THE HALF YEAR ENDED JUNE 30,
25LALPIR POWER LIMITED
CONTENTS
02 Company Profile
03 Directors' Report
06 Directors' Report (Urdu)
09 Auditors' Report to the Members on Review of Condensed Interim Financial Information
10 Statement of Financial Position
TABLE OF
Statement of Profit or Loss and Other Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows Statements
Notes to the Financial Statements
Half Yearly Report 2025
1
COMPANY PROFILE
THE COMPANY
Lalpir Power Limited ("the Company") was incorporated in Pakistan on 8 May 1994 under the repealed Companies Ordinance, 1984 (now the Companies Act, 2017). The registered office is situated at 53-A, Lawrence Road, Lahore. The principal activities of the Company are to own, operate and maintain an oil fired power station ("the Complex") having gross capacity of 362 MW in Mehmood Kot, Muzaffargarh, Punjab, Pakistan.
BOARD OF DIRECTORS
Mian Hassan Mansha Chairman Mr. Zaheer Ahmad Ghanghro
Mr. Mahmood Akhtar Mr. Muhammad Azam Mr. Inayat Ullah Niazi Mrs. Hajra Arham
Mr. Amir Mahmood
CHIEF EXECUTIVE OFFICER
Mr. Mahmood Akhtar
AUDIT COMMITTEE
Mr. Zaheer Ahmad Ghanghro Chairman Mr. Inayat Ullah Niazi
Mrs. Hajra Arham
HUMAN RESOURCE & REMUNERATION (HR &R) COMMITTEE
Mian Hassan Mansha
Mrs. Hajra Arham Chairman Mr. Inayat Ullah Niazi
CHIEF FINANCIAL OFFICER
Mr. Awais Majeed Khan
COMPANY SECRETARY
Mr. Khalid Mahmood Chohan
BANKERS OF THE COMPANY
Habib Bank Limited The Bank of Punjab United Bank Limited Allied Bank Limited
National Bank of Pakistan Bank Alfalah Limited Faysal Bank Limited Askari Bank Limited
Habib Metropolitan Bank Limited MCB Bank Limited
Bank Islami Pakistan Limited
Standard Chartered Bank (Pakistan) Limited Al Baraka Bank (Pakistan) Limited
Meezan Bank Limited Silk Bank Limited
AUDITOR OF THE COMPANY
Riaz Ahmad & Co. Chartered Accountants
LEGAL ADVISOR OF THE COMPANY
Mr. M. Aurangzeb Khan Advocate High Court
REGISTERED OFFICE
53-A, Lawrence Road, Lahore-Pakistan UAN:+92 42-111-11-33-33
+92 42 36367414
SHARE REGISTRAR
CDC Share Registrar Services Limited CDC House,99-B, Block-B, S.M.C.H.S
Shahra-e-Faisal, Karachi - 74400 Tel: (92-21) 111-111-500
Fax: (92-21) 34326053
HEAD OFFICE
B, Aziz Avenue, Gulberg-V, Lahore -Pakistan
Tel: +92 42-35717090-96
Fax: +92 42-35717239
PLANT
Mehmood Kot, Muzaffargarh, Punjab - Pakistan.
LALPIR POWER LIMITED
2
DIRECTORS' REPORT
The Directors of Lalpir Power Limited ("the Company") are pleased to present their report together with the Condensed Interim Financial Information for the half year ended June 30, 2025.
The Power Purchase Agreement (PPA) was terminated, during previous year w.e.f. October 01, 2024. For further details, please see note 1.2 of the annexed condensed interim financial statements.
Despite the termination of PPA, the company is in a sound financial position and there are sufficient funds available to meet the day to today expenditure, including plant preservation & maintenance costs. As on June 30, 2025 the Company's investments in Mutual Funds & saving accounts, stand at Rs. 10,537 million.
We are hopeful that the Company shall participate in the upcoming Competitive Trading Bilateral Contracts Market (CTBCM) once it is implemented by the Government of Pakistan (GoP), which will allow the Company to sell electricity as a Merchant Plant to Bulk Consumers / Distribution Companies (DISCOs) through wheeling arrangements.
OPERATIONAL FINANCIAL RESULTS:
The financial results of the Company for period ended June 30, 2025 are as follows:
PERIOD ENDED
Financial Highlights 30 June 30 June
2025
2024
Revenue (Rs '000') | - | 13,462,797 |
Gross profit (Rs '000') | - | 3,964,359 |
After tax (loss) / profit (Rs '000') | (694,821) | 3.051,312 |
(Loss) / earnings per share (Rs) | (1.83) | 8.03 |
The Company has posted after tax loss of Rs 694.821 million as against after tax profit Rs 3,051.312 million earned in the comparative period. The net loss of the Company demonstrated the loss per share of Rs 1.83 as against earnings per share of Rs 8.03 in the comparable previous period.
As explained in Note 1.2 to the condensed interim financial statements, the Company has taken several cost reduction measures, including but not limited to rationalization of workers and employees through Voluntary Severance Scheme (VSS) and reduction / optimization of plant maintenance costs, to mitigate the financial impacts arising due to termination of the PPA, consequently, the Power Plant is being kept in preservation mode to ensure that the Power Plant
Half Yearly Report 2025
3
is readily available if the offtake of electricity is required in near future. The Company is fully determined to explore other avenues of income generation including establishment of new businesses, which are under discussions, using funds available with the Company and the same will be placed before the shareholders of the Company for formal approval after the recommendation by the Board of Directors.
COMPOSITION OF BOARD:
Total number of Directors: | |
(a) Male | 6 |
(b) Female | 1 |
Composition: | |
(i) Independent Directors | 2 |
(ii) Other Non-executive Directors | 4 |
(iii) Executive Director | 1 |
COMMITTEES OF THE BOARD:
Audit Committee of the Board:
Sr. # Name of Members |
1. Mr. Zaheer Ahmad Ghanghro (Member/ Chairman) |
2. Mr. Inayat Ullah Niazi (Member) |
3. Mrs. Hajra Arham (Member) |
Human Resource & Remuneration (HR&R) Committee:
Sr. # Name of Members |
1. Mrs. Hajra Arham (Member/ Chairperson) |
2. Mian Hassan Mansha (Member) |
3. Mr. Inayat Ullah Niazi (Member) |
LALPIR POWER LIMITED
DIRECTORS' REMUNERATION:
The company does not pay remuneration to its non-executive directors including independent directors except for meeting fee. Aggregate amount of remuneration paid to executive and non-executive directors have been disclosed in Note 9 of the annexed financial statements.
ACKNOWLEDGEMENT:
The board appreciates the management for establishing a modern and motivating working climate and promoting high levels of performance in all areas of the power plant. We also take this opportunity to thank our executives and staff members for their consistent support, hard-work and commitment for delivering remarkable, under extra ordinary circumstances.
For and on behalf of the Board of Directors
Mr. Mahmood Akhtar Mian Hassan Mansha
Chief Executive Officer Chairman
Lahore: 29 August 2025
Half Yearly Report 2025
J 2024J 30 | J 2025Jy30 | ||
13,462,797 | |||
3,964,359 | |||
3,051,312 | (694,821) | ||
8.03 | (1.83) |
LALPIR POWER LIMITED
Half Yearly Report 2025
LALPIR POWER LIMITED
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF LALPIR POWER LIMITED REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTSIntroduction
We have reviewed the accompanying condensed interim statement of financial position of LALPIR POWER LIMITED as at 30 June 2025 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the condensed interim financial statements for the half year then ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Emphasis of matter
We draw attention to note 1.2 in these condensed interim financial statements, which describes the matter relating to early termination of Power Purchase Agreement with the Power Purchaser and early termination of Implementation Agreement and the Guarantee by the Government of Pakistan. As stated in note 1.2 to these condensed interim financial statements, these events or conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.
Other Matter
Pursuant to the requirement of section 237(1)(b) of the Companies Act, 2017, only cumulative figures for the half year, presented in second quarter accounts are subject to a limited scope review by the statutory auditors of the company. Accordingly, the figures of the condensed interim statement of profit or loss and other comprehensive income for the three months period ended 30 June 2025 have not been reviewed by us.
The engagement partner on the review resulting in this independent auditor's review report is Mubashar Mehmood.
RIAZ AHMAD & COMPANY
Chartered Accountants Lahore
Date: 29 August 2025
UDIN: RR202510158ZDMjm7dOy
Half Yearly Report 2025
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025 (UN-AUDITED)
Note EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized share capital 500,000,000 (31 December 2024: 500,000,000) ordinary shares of Rupees 10 each | Un-audited 30 June 2025 (Rupees in 5,000,000 | Audited 31 December 2024 thousand) 5,000,000 | ||
Issued, subscribed and paid-up share capital 379,838,732 (31 December 2024: 379,838,732) ordinary shares of Rupees 10 each Capital reserve Revenue reserve - un-appropriated profit | 3,798,387 -10,338,367 | 3,798,387 107,004 10,926,184 | ||
Total equity | 14,136,754 | 14,831,575 | ||
LIABILITIES | ||||
NON-CURRENT LIABILITY Employee benefit - gratuity | 25,831 | 18,823 | ||
CURRENT LIABILITIES | ||||
Trade and other payables | 167,183 | 178,848 | ||
Accrued mark-up / profit | - | 39,045 | ||
Unclaimed dividend | 11,132 | 11,665 | ||
178,315 | 229,558 | |||
Total liabilities | 204,146 | 248,381 | ||
CONTINGENCIES AND COMMITMENTS | 4 | |||
TOTAL EQUITY AND LIABILITIES | 14,340,900 | 15,079,956 | ||
The annexed notes form an integral part of these condensed interim financial statements.
CHIEF EXECUTIVE
LALPIR POWER LIMITED
Note ASSETS NON-CURRENT ASSETS Fixed assets 5 Long term investment Long term loans to employees Long term security deposits | Un-audited 30 June 2025 (Rupees in 2,448,111 -1,768 350 | Audited 31 December 2024 thousand) 2,972,235 -14,615 1,850 | |
CURRENT ASSETS | 2,450,229 | 2,988,700 | |
Stores, spare parts and other consumables | 659,363 | 667,278 | |
Fuel stock | 29,349 | 526,558 | |
Loans, advances and short term prepayments | 17,895 | 36,817 | |
Other receivables | 548,083 | 828,800 | |
Accrued interest | 220 | 2,513 | |
Advance income tax and levy - net | 98,333 | 254,897 | |
Short term investment | 10,471,224 | 9,087,720 | |
Cash and bank balances | 66,204 | 686,673 | |
11,890,671 | 12,091,256 | ||
TOTAL ASSETS | 14,340,900 | 15,079,956 |
DIRECTOR CHIEF FINANCIAL OFFICER
Half Yearly Report 2025
11
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Half Yea 30 June 2025 - - | r Ended 30 June 2024 (Rupees in 13,462,797 (9,498,438) | Quarter 30 June 2025 thousand) - - | Ended 30 June 2024 4,660,330 (2,567,597) | |||
- | 3,964,359 | - | 2,092,733 | |||
(1,086,725) | - | (392,222) | - | |||
(69,532) | (119,678) | (60,340) | (63,657) | |||
(1,861) | (2,774) | (1,046) | (1,303) | |||
624,185 | 10,837 | 347,449 | 2,346 | |||
(533,933) | 3,852,744 | (106,159) | 2,030,119 | |||
(142) | (801,432) | (61) | (426,068) | |||
(534,075) | 3,051,312 | (106,220) | 1,604,051 | |||
(31,698) | - | (31,698) | - | |||
(565,773) | 3,051,312 | (137,918) | 1,604,051 | |||
(129,048) | - | (94,287) | - | |||
(694,821) | 3,051,312 | (232,205) | 1,604,051 | |||
- | - | - | - | |||
- | - | - | - | |||
- | - | - | - | |||
(694,821) | 3,051,312 | (232,205) | 1,604,051 | |||
(1.83) | 8.03 | (0.61) | 4.22 | |||
For the Half Year Ended 30 June 2025 (Un-audited)
Note
REVENUE FROM CONTRACT WITH CUSTOMER
COST OF SALES 6
GROSS PROFIT
PLANT MAINTENANCE AND PRESERVATION COSTS 7
ADMINISTRATIVE EXPENSES OTHER EXPENSES
OTHER INCOME
(LOSS) / PROFIT FROM OPERATIONS
FINANCE COST
(LOSS) / PROFIT BEFORE LEVY AND TAXATION
LEVY
(LOSS) / PROFIT BEFORE TAXATION TAXATION
(LOSS) / PROFIT AFTER TAXATION
OTHER COMPREHENSIVE INCOME:
ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS
ITEMS THAT MAY BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE PERIOD
(LOSS) / EARNINGS PER SHARE -BASIC AND DILUTED (RUPEES)
The annexed notes form an integral part of these condensed interim financial statements.
CHIEF EXECUTIVE
DIRECTOR
CHIEF FINANCIAL OFFICER
LALPIR POWER LIMITED
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
For the Half Year Ended 30 June 2025 (Un-audited)
SHARE CAPITAL | RESERVES | |
Capital | Revenue | |
Retained payments reserve | Un-appropriated profit | |
TOTAL EQUITY
( - - - - - - - - - -Rupees in thousand )
Balance as at 31 December 2023 - audited | 3,798,387 | 107,004 | 11,934,073 | 15,839,464 |
Transaction with owners - First interim dividend for the quarter ended 31 March 2024 @ Rupees 2.00 per share | - | - | (759,677) | (759,677) |
- | - | 3,051,312 | 3,051,312 |
- | - | - | - |
Profit for the half year ended 30 June 2024 Other comprehensive income for the half year
ended 30 June 2024
(2,586,522) | (2,586,522) |
46,675 | 46,675 |
Total comprehensive income for the half year
ended 30 June 2024 | - | - | 3,051,312 | 3,051,312 | |
Balance as at 30 June 2024 - un-audited | 3,798,387 | 107,004 | 14,225,708 | 18,131,099 | |
Transaction with owners: Second interim dividend for the half year ended 30 June 2024 @ Rupees 2.00 per share | - | - | (759,677) | (759,677) | |
Loss for the half year ended 31 December 2024 Other comprehensive income for the half year ended 31 December 2024 | - - | - - | |||
Total comprehensive loss for the half year ended | |||||
31 December 2024 | - | - | (2,539,847) | (2,539,847) | |
Balance as at 31 December 2024 - audited | 3,798,387 | 107,004 | 10,926,184 | 14,831,575 | |
Transfer of 'retained payments reserve' to 'un-appropriated profit' | - | (107,004) | 107,004 | - | |
- | - | (694,821) | (694,821) |
- | - | - | - |
Loss for the half year ended 30 June 2025 Other comprehensive income for the half year
ended 30 June 2025
Total comprehensive loss for the half year
ended 30 June 2025 - - (694,821) (694,821)
3,798,387 - 10,338,367 14,136,754
Balance as at 30 June 2025 - un-audited
The annexed notes form an integral part of these condensed interim financial statements.
CHIEF EXECUTIVE
DIRECTOR
CHIEF FINANCIAL OFFICER
Half Yearly Report 2025
CONDENSED INTERIM STATEMENT OF CASH FLOWS
For the Half Year Ended 30 June 2025 (Un-audited)
30 June | 30 June |
2025 | 2024 |
(Rupees in | thousand) |
254,899 | 308,108 |
(39,187) | (619,024) |
1,500 | - |
12,847 | (29,014) |
(4,182) | (1,626) |
225,877 | (341,556) |
- | (27,006) |
12,048 | - |
(38,395,718) | - |
37,532,510 | 849,995 |
5,086 | 6,858 |
261 | - |
(845,813) | 829,847 |
(533) | (759,325) |
(533) | (759,325) |
(620,469) | (271,034) |
686,673 | (4,847,550) |
66,204 | (5,118,584) |
1,201 | 554 |
65,003 | 1,439,728 |
- | (6,558,866) |
66,204 | (5,118,584) |
Half Year Ended
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 8
Finance cost paid
Net decrease in long term security deposits
Net decrease / (increase) in long term loans to employees Income tax paid
Net cash generated from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure on fixed assets
Proceeds from disposal of operating fixed assets Short term investments made
Proceeds from disposal of short term investment Profit on bank deposits received
Profit on term deposit receipt received
Net cash (used in) / from investing activities CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period CASH AND CASH EQUIVALENTS
Cash in hand Cash at banks
Short term borrowings
The annexed notes form an integral part of these condensed interim financial statements.
CHIEF EXECUTIVE
DIRECTOR
CHIEF FINANCIAL OFFICER
LALPIR POWER LIMITED
SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the Half Year Ended 30 June 2025 (Un-audited)
THE COMPANY AND ITS OPERATIONS
Lalpir Power Limited ("the Company") was incorporated in Pakistan on 08 May 1994 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The registered office of the Company is situated at 53-A, Lawrence Road, Lahore. Head office of the Company is situated at 1-B, Aziz Avenue, Canal Road, Gulberg V, Lahore. The ordinary shares of the Company are listed on Pakistan Stock Exchange Limited. The principal activities of the Company are to own, operate and maintain a fuel fired power station ("the Complex") having gross capacity of 362 MW in Mehmood Kot, Muzaffargarh, Punjab, Pakistan. The Company had a Power Purchase Agreement (PPA) with its sole customer, Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) for 30 years which commenced from 06 November 1997. As per the terms of PPA amendment agreement dated 20 April 2021, the agreement year that ended on 25 March 2021 was extended by 248 days to 28 October 2021.
Impact on going concern assumption due to early termination of PPA
The PPA of the Company was initially for a term of 30 years and was scheduled to expire on 28 November 2028. However, during the year ended 31 December 2024, the Company entered into negotiations with the National Task Force on Structural Reforms (Task Force) constituted by the Prime Minister of Pakistan. After several round of discussions with the Task Force, the Company consented the early termination of existing PPA with the Power Purchaser with effect from 01 October 2024. The Company also consented the early termination of Implementation Agreement (IA) entered into with the President of Islamic Republic of Pakistan and Guarantee issued by the President of Islamic Republic of Pakistan, for and on behalf of the Government of Pakistan (GoP) with effect from 01 October 2024. As a result, following terms have been agreed and taken place:
The original term of the Agreements (PPA and IA) and Guarantee was 30 years and the Agreements were scheduled to expire on 28 November 2028, now the Agreements have been terminated with effect from 01 October 2024;
Power Purchaser has paid Rupees 12,351.725 million payable as on 01 October 2024 comprising Capacity Purchase Price, Energy Purchase Price, General sales tax and Pass-Through items as full and final settlement by 31 December 2024;
In case the appeal regarding apportionment of input sales tax imposed on the Capacity Purchase Price, pending before the Apex courts as more fully explained in note 10.1(ii) to the annual preceding audited financial statements of the Company, is decided finally in favor of Federal Board of Revenue (FBR), and the Company is required to make payment to the FBR after exhausting all legal remedies, the Power Purchaser shall be obliged to reimburse the payment to the Company within 30 days of the invoice, after making the payment by the Company;
The Company shall invoice and the Power Purchaser shall make payment of Workers' Profit Participation Fund (WPPF) and Workers' Welfare Fund (WWF) accrued till 30
Half Yearly Report 2025
September 2024 on prorated based on the Company's profit.
The Company has agreed to waive off all of its rights or claims relating to delayed payment markup and the same have been written off;
The Power Purchaser and GoP shall not be liable to pay any compensation in any matter of PPA, IA or Guarantee;
The Company forfeits, waives and relinquish all or any rights, or claims it have, under the Guarantee; and
The Company will retain the ownership of the Complex, including site;
The above terms given by the Task Force were placed before the Board of Directors of the Company in their meeting held on 09 October 2024 and the Board of Directors placed the matter of early termination and the terms thereof for the approval of shareholders of the Company. On 14 November 2024, shareholders of the Company accorded approval for early termination of the PPA, IA and the Guarantee and adoption of the terms placed before the shareholders. These terms have been formally approved and the Agreements stand terminated with effect from 01 October 2024.
The termination of PPA indicates the existence of material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern and, therefore, it may be unable to realize its assets and discharge its liabilities in the normal course of business.
However, the management of the Company believes that it will be able to continue as a going concern basis, based on the following factors:
There is no impediment in the ability of the Company to generate electricity, subject to certain regulatory and formal legal formalities;
The management of the Company shall participate in the Competitive Trading Bilateral Contracts Market (CTBCM) once it is implemented by the Government of Pakistan (GoP), which will allow the Company to sell electricity as a Merchant Plant to Bulk Consumers / Distribution Companies (DISCOs) through wheeling arrangements;
The Company has taken several cost reduction measures, including but not limited to rationalization of workers and employees through Voluntary Severance Scheme (VSS) [note 7 to these financial statements] and reduction / optimization of plant maintenance costs, to mitigate the financial impacts arising due to termination of the Agreements;
The Company has Rupees 10,537.428 million surplus funds available as on 30 June 2025 which are invested in mutual funds, term deposit receipt and cash and banks to generate sufficient income to support the operations of the Company;
The management of the Company is fully determined to explore other avenues of income generation including establishment of new businesses, which are under discussions, using funds available with the Company and the same will be placed before the shareholders of the Company for formal approval after the recommendation by the Board of Directors of the Company.
LALPIR POWER LIMITED
Notwithstanding, as elaborated above, the Company has sound financial position and as per the management's forecasts, the Company has enough liquidity and reserves to meet the operational expenditures and discharge its liabilities for the foreseeable future. Therefore, the management is confident that the Company will continue as a going concern in the foreseeable future. Thus, these condensed interim financial statements have been prepared on a going concern basis and consequently, do not require adjustment relating to the realization of its assets and liquidation of liabilities.
The management has assessed the accounting implications of the aforementioned developments in relation to the impairment of tangible fixed assets under IAS 36 'Impairment of Assets'. However, according to management's assessment, there is no impact of impairment on these condensed interim financial statements.
BASIS OF PREPARATION
These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.
These condensed interim financial statements do not include all the information and disclosures required in annual financial statements and should be read in conjunction with the annual audited financial statements of the Company for the year ended 31 December 2024. These condensed interim financial statements are un-audited, however, have been subjected to limited scope review by the auditors and are being submitted to the shareholders as required by the Listed Companies (Code of Corporate Governance) Regulations, 2019 and Section 237 of the Companies Act, 2017.
MATERIAL ACCOUNTING POLICY INFORMATION
The material accounting policy information and methods of computations adopted for the preparation of these condensed interim financial statements are same as applied in the preparation of the preceding audited annual published financial statements of the Company for the year ended 31 December 2024.
Critical accounting estimates and judgments
The preparation of these condensed interim financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Half Yearly Report 2025
During preparation of these condensed interim financial statements, the significant judgments made by the management in applying the Company's accounting policies and key sources of estimation and uncertainty were the same as those that applied in the preceding audited annual published financial statements of the Company for the year ended 31 December 2024.
CONTINGENCIES AND COMMITMENTS
Contingencies
There is no significant change in the status of contingencies as disclosed in the preceding audited annual published financial statements of the Company for the year ended 31 December 2024 except for the following:
On 16 August 2024, Deputy Commissioner Inland Revenue (DCIR) passed an order under section 11 of the Sales Tax Act, 1990 for tax periods from August 2022 to June 2023 whereby sales tax demand of Rupees 10.969 million has been raised on account of inadmissible input sales tax on various goods and services along with default surcharge and penalty against the Company. Being aggrieved with the order of DCIR, the Company filed an appeal before Appellate Tribunal Inland Revenue (ATIR) on 23 September 2024. On 01 January 2025, ATIR has deleted the disallowance of input sales tax amounting to Rupees 7.138 million. However, input sales tax amounting to Rupees 3.831 million including the default surcharge has been remanded back to the assessing officer for fresh consideration. Based on tax advisor's opinion, there exists reasonable grounds to defend the Company's stance. Hence, no provision has been made in these condensed interim financial statements.
On 04 February 2020, DCIR passed an order under section 11 of the Sales Tax Act, 1990 whereby input sales tax on various furnace oil invoices was disallowed and sales tax refund amounting to Rupees 58.489 million was rejected. Being aggrieved with the order of DCIR, the Company filed appeal before Commissioner Inland Revenue (Appeals) [CIR(A)] on 20 February 2020. On 28 April 2020, CIR(A) remanded back the case to assessing officer for fresh consideration. DCIR reinitiated the remand back proceedings and passed an order on 04 June 2020 whereby partial relief to the Company was granted and sales tax refund of Rupees 34.507 million was rejected. Being aggrieved with the remand back proceedings of DCIR, the Company filed an appeal before CIR(A) on 11 June 2020. On 02 June 2021, CIR(A) passed an order whereby the decision of DCIR regarding rejection of sales tax refund of Rupees 34.507 million was upheld. Being aggrieved with the order of CIR(A), the Company filed an appeal before ATIR on 13 July 2021. On 28 April 2025, ATIR has decided the appeal in favour of the Company. On 26 May 2025, the Company has received Refund Payment Order (RPO) of full amount under section 11 of the Sales Tax Act, 1990.
On 03 November 2017, the Company challenged before the Honorable Lahore High Court (the Court), the legality of enhancement of canal water rates from Rupees 86.52 per 10,000 cubic feet to Rupees 100 per 1,000 cubic feet as notified by the Punjab Irrigation Department (the Department). On 27 March 2018, the said notification of the Department was set aside by the Court. Against the order of the Court, the Department filed an appeal before a division bench of Honorable Lahore High Court, Lahore on 13 January 2021. On 19 June 2025, the Honorable Lahore High Court, Lahore decided the appeal in favor of the Department. Being aggrieved with the order of the Honorable Lahore High Court, Lahore, the Company is in the process of filing appeal before Supreme Court of Pakistan. However, as a matter of prudence, the management has
LALPIR POWER LIMITED
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