CONTENTS
COMPANY INFORMATION & MANAGEMENT REVIEW
Company Information | 2 |
Directors' Review | 3 |
CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
Independent Auditor's Review Report | 4 |
Condensed Interim Statement of Financial Position | 5 |
Condensed Interim Statement of Profit or Loss | 6 |
Condensed Interim Statement of Comprehenisve Income | 7 |
Condensed Interim Statement of Changes in Equity | 8 |
Condensed Interim Statement of Cash Flows | 9 |
Selected Explanatory Notes to the Condensed Interim | 10-12 |
Financial Statements |
CONDENSED INTERIM FINANCIAL REPORT
2
COMPANY INFORMATION
BOARD OF DIRECTORS
Mr. Mirza Javed Iqbal
(Non-Executive Director - Chairman)
Mr. Jamshed Iqbal
(Non-Executive Director)
Mr. Fahad Javaid
(Non-Executive Director)
Mrs. Jahanara Sajjad Ahmad
(Independent, Non-Executive Director)
Mr. Muhammad Aslam Bhatti
(Independent Non-Executive Director)
Mr. Muhammd Mateen Jamshed
(Non-Executive Director)
Mr. Khurram Javaid
(CEO / Director)
AUDIT COMMITTEE
Mr. Muhammad Aslam Bhatti (Chairman)
Mr. Mirza Javed Iqbal (Member)
Mr. Muhammd Mateen Jamshed (Member)
HUMAN RESOURCE & REMUNERATION COMMITTEE
Mr. Muhammad Aslam Bhatti (Chairman)
Mr. Mirza Javed Iqbal (Member)
Mr. Jamshed Iqbal (Member)
SHARE REGISTRAR & TRANSFER AGENT Digital Custodian Company Limited Pardesi House, 4th Floor Old Queen Road, Karachi, Pakistan.
Tel: +92-21-32419770, +92-21-3243085 UAN +92-31-111-322-229
E-mail: share.registrar@digitalcustodian.com
SHAREHOLDER COMPLAINT HANDLING CELL Incase of shareholder complaints/queries, Please Contact:
Mr. Zeeshan Ejaz
Tel : +92-42-35960841Ext:136
E-mail: fahadhafeez@mughalsteel.com
STATUTORY AUDITORS
Muniff Ziauddin & Company Chartered Accountants
(A member of BKR International)
LEGAL ADVISOR
Mr. Muhammad Atif Butt
CHIEF OPERATING OFFICER Mr. Shakeel Ahmad Mughal Tel: +92-42-35960841 Ext:154
E-mail: shakeel.ahmad@mughalsteel.com
CHIEF FINANCIAL OFFICER Mr. Muhammad Zafar Iqbal Tel: +92-42-35960841 Ext:138
E-mail: zafariqbal@mughalsteel.com
COMPANY SECRETARY
Mr. Muhammad Fahad Hafeez Tel: +92-42-35960841 Ext:155
E-mail: fahadhafeez@mughalsteel.com
BANKERS / INSTITUTIONS
Bank Makramah Limited
Habib Bank Limited
MCB Bank Limited
Meezan Bank Limited
Faysal Bank Limited
United Bank Limited
MCB Islamic Bank Limited
Soneri Bank Limited
First Women Bank Limited
Askari Bank Limited
The Bank of Punjab
Pair Investment Company Limited
Parwaaz Financial Services Limited
GEOGRAPHICAL PRESENCE
Registered Office
31-A Shadman 1
Lahore, Pakistan
Tel: +92-42-35960841-3
Fax: +92-42-35960846
Plant site
17-Km Sheikhupura Road,
Lahore, Pakistan
Tel: +92-42-35960841-3
Fax +92-42-35960846
Company Website:
The Company is operating website www.mughalenergy.com.pk containing updated information regarding the Company.
Note: MEL's Annual & Interim Financial Statements are also available at the above website.
DIRECTORS' REVIEW
Dear Valued Shareholders,
On behalf of the Board of Directors of MUGHAL ENERGY LIMITED, we are pleased to present the un-audited condensed interim financial statements of the Company for the six months' period ended December 31, 2024, the financial results of which are summarized below:
(Rs. in Millions)
Six months ended December 31,
2024 | 2023 | ||
Loss for the period | (7.178) | (18.758) | |
Loss per share - Basic and Diluted (Rs.) | (0.04) | (0.11) |
Business, financial & operational Review
The Company is yet to commence its commercial operations and therefore posted loss for the period ended December 31, 2024, which was mainly on account of salaries and various routine expenses. However, the Company expects profitable results post achieving commercial operations.
The Company is currently in process of installation of a 36.50 MW captive hybrid power plant project, with civil works completed. The commissioning will commence post the month of Ramzan with CoD expected in last Quarter of FY 2025.
Future outlook
Going forward, the Company remains committed to successful and timely achievement of commencement of operations of its 36.50 MW captive hybrid power plant.
Acknowledgement
The Board remains committed to provide sustained returns to our shareholders, in addition to maintaining our reputation for good governance. Lastly, we would like to thank all stakeholders for their patronage and look forward to their continued support.
For and on behalf of the Board of Directors
Mirza | Khurram Javaid |
Chairman / Director | Chief Executive Officer / Director |
Date: February 11, 2025 | |
Place: Lahore |
3
MUGHAL ENERGY LIMITED
INDEPENDENT AUDITOR'S REVIEW REPORT
To the members of Mughal Energy Limited
Report on review of Condensed Interim Financial Statements
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Mughal Energy Limited as at December 31, 2024 and related condensed interim statement of profit or loss, condensed interim statement of 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 six-month period 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. The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-month period ended December 31, 2024 and December 31, 2023 have not been reviewed, as we are required to review only the cumulative figures for the six-month period ended December 31, 2024.
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
4 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.
The engagement partner on the review resulting in this independent auditor's review report is Arqum Naveed.
Muniff Ziauddin & Company Chartered Accountants
A member of BKR International Date: February 11, 2025
UDIN: RR2024101234vKGtPjmk
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 2024
Rupees | Note | December 31, | June 30, |
2024 | 2024 | ||
(Unaudited) | (Audited) |
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Long-term security deposits
CURRENT ASSETS
Advances
Due from the government
Cash and bank balances
Total assets
EQUITY AND LIABILITIES
SHARE CAPITAL & RESERVES
Authorized share capital
Issued, subscribed and paid-up capital Share premium
Revaluation surplus on property, plant and equipment Accumulated loss
Equity contribution / loan from Directors
LIABILITIES
NON-CURRENT LIABILITIES
Long-term financing- secured
CURRENT LIABILITIES
Trade and other payables Accrued markup
Short-term borrowings - unsecured Short-term loans from Directors - unsecured Current portion of long-term financing
Total equity and liabilities
5. 4,922,391,756
87,500
4,922,479,256
16,932,019
501,819,232
18,955,082
537,706,333
5,460,185,589
2,500,000,000
2,166,732,420
116,365,179
1,064,174,125
(112,630,773)
214,666,792
3,449,307,743
402,746,598
52,628,485
27,328,881
790,772,162
666,583,497
70,818,223
1,608,131,248
5,460,185,589
4,464,549,751
87,500
4,464,637,251
13,047,000
459,095,089
205,656,677
677,798,766
5,142,436,017
2,500,000,000
2,166,732,420
116,365,179
1,064,174,125
(105,452,774)
214,666,792
3,456,485,742
388,182,140
83,140,623
33,054,027
770,772,162
376,983,463
33,817,860
1,297,768,135
5,142,436,017
5
MUGHAL ENERGY LIMITED
CONTINGENCIES AND COMMITMENTS | 6. |
The annexed notes, from 1 to 13, form an integral part of these condensed interim financial statements.
Khurram Javaid | Muhammad Zafar Iqbal | FAHAD JAVAID | ||
Chief Executive Officer/Director | Chief Financial Officer | Director |
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2024 (UNAUDITED)
Three months ended | Six months ended | |||
Rupees | December 31, | December 31, | December 31, | December 31, |
Note | 2024 | 2023 | 2024 | 2023 |
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) |
INTERIM FINANCIAL REPORT
Revenue
Cost of revenue
GROSS PROFIT / (LOSS)
Administrative expenses
Other charges
Other income
Finance cost
LOSS BEFORE TAXATION
-
-
-
(6,768,361)
(105,000)
963,555
(1,161)
(5,910,967)
(5,910,967)
-
-
-
(8,882,324)
43,710
878,952
(1,773)
(7,961,435)
(7,961,435)
-
-
-
(8,947,340)
(157,500)
1,929,019
(2,178)
(7,177,999)
(7,177,999)
-
-
-
(20,438,404)
(75,000)
1,757,484
(1,804)
(18,757,724)
(18,757,724)
CONDENSED
Taxation | - | - | - | - | |||
LOSS FOR THE PERIOD | (5,910,967) | (7,961,435) | (7,177,999) | (18,757,724) |
6 | LOSS PER SHARE - BASIC & DILUTED | 7. | (0.03) | (0.05) | (0.04) | (0.11) |
The annexed notes, from 1 to 13, form an integral part of these condensed interim financial statements.
Khurram Javaid | Muhammad Zafar Iqbal | FAHAD JAVAID | ||
Chief Executive Officer/Director | Chief Financial Officer | Director |
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2024 (UNAUDITED)
Three months ended | Six months ended | ||||||||||
Rupees | Note | December 31, | December 31, | December 31, | December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||
Loss for the period | (5,910,967) | (7,961,435) | (7,177,999) | (18,757,724) | |||||||
Other comprehensive income | - | - | - | - | |||||||
Total comprehensive loss for the period | (5,910,967) | (7,961,435) | (7,177,999) | (18,757,724) | |||||||
The annexed notes, from 1 to 13, form an integral part of these condensed interim financial statements.
7
MUGHAL ENERGY LIMITED
Khurram Javaid | Muhammad Zafar Iqbal | FAHAD JAVAID | ||
Chief Executive Officer/Director | Chief Financial Officer | Director |
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2024 (UNAUDITED)
Capital reserves | Revenue reserve | ||||||||||
Issued, | Revaluation | Equity | |||||||||
Rupees | subscribed | Share | surplus on | Accumulated | contribution / | Total | |||||
and | premium | property, plant | loss | loan from | equity | ||||||
paid-up capital | and equipment | Directors | |||||||||
REPORT
BALANCE AS AT JUNE 30, 2023-(audited)
Loss for the period
Other comprehensive income
Total comprehensive loss for the period
Contribution during the period
BALANCE AS AT December 31, 2023-(audited)
1,972,622,420
-
-
-
-
1,972,622,420
- | 1,064,174,125 | (86,282,493) | 130,860,574 | 3,081,374,626 | ||||
- | - | (18,757,724) | - | (18,757,724) | ||||
- | - | - | - | - | ||||
- | - | (18,757,724) | - | (18,757,724) | ||||
- | - | - | 400,979,975 | 400,979,975 | ||||
- | 1,064,174,125 | (105,040,217) | 531,840,549 | 3,463,596,877 | ||||
CONDENSED INTERIM FINANCIAL
8
BALANCE AS AT JUNE 30, 2024-(audited) | 2,166,732,420 | 116,365,179 | 1,064,174,125 | (105,452,774) | 214,666,792 | 3,456,485,742 | ||||||
Loss for the period | - | - | - | (7,177,999) | - | (7,177,999) | ||||||
Other comprehensive income | - | - | - | - | - | - | ||||||
Total comprehensive loss for the period | - | - | - | (7,177,999) | - | (7,177,999) | ||||||
BALANCE AS AT December 31, 2024-(unaudited) | 2,166,732,420 | 116,365,179 | 1,064,174,125 | (112,630,773) | 214,666,792 | 3,449,307,743 | ||||||
The annexed notes, from 1 to 13, form an integral part of these condensed interim financial statements.
Khurram Javaid | Muhammad Zafar Iqbal | FAHAD JAVAID | ||
Chief Executive Officer/Director | Chief Financial Officer | Director |
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS PERIOD ENDED DECEMBER 31, 2024 (UNAUDITED)
Rupees | 2024 | 2023 |
CASH FLOWS FROM OPERATING ACTIVITIES | (Unaudited) | (Audited) |
Loss before taxation | (7,177,999) | (18,757,724) |
Adjustments:
Profit on saving accounts
Finance cost
Loss before working capital changes
Working capital changes:
Decrease / (Increase) in current assets Advances
Deposits, prepayments and other receivables Due from the government
Increase / (Decrease) in current liabilities
Trade and other payables
Cash used in / generated from operations
Payment of income tax
Net cash used in / generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
(12,379)
2,178
(10,201)
(7,188,200)
(3,885,019)
-
(41,477,000)
(45,362,019)
(30,512,138)
(83,062,357)
(1,247,143)
(84,309,500)
(15,084)
1,804
(13,280)
(18,771,004)
(37,200,291)
9,492,345
(47,382,243)
(75,090,189)
100,721,306
6,860,113
(425,327)
6,434,787
9
MUGHAL
Payments for acquisition of property, plant and equipment | (334,528,214) | (315,622,504) | |
Profit received | 12,379 | 15,084 | |
Net cash used in investing activities | |||
(334,515,835) | (315,607,420) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net proceeds from long-term financing | 51,564,821 | - | |
Proceeds from short-term borrowings | 20,000,000 | - | |
Proceeds from short-term loans from Directors | 289,600,034 | - | |
Proceeds from equity contribution / loan from Directors | - | 400,979,975 | |
Payment of finance cost | (129,041,115) | (36,371,373) | |
Net cash generated from financing activities | 232,123,740 | 364,608,602 | |
NET DECREASE / INCREASE IN CASH AND CASH EQUIVALENTS | (186,701,595) | 55,435,968 | |
CASH AND CASH EQUIVALENTS AT THE BEGINNING | |||
OF THE PERIOD | 205,656,677 | 60,941,033 | |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | |||
18,955,082 | 116,377,001 |
The annexed notes, from 1 to 13, form an integral part of these condensed interim financial statements.
ENERGY LIMITED
Khurram Javaid | Muhammad Zafar Iqbal | FAHAD JAVAID | ||
Chief Executive Officer/Director | Chief Financial Officer | Director |
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