FIRST QUARTERLYREPORT

2016FOR THE PERIOD ENDED MARCH 31,

1st Quarterly Report 2016 1

02 CompanyProfile04 Directors’Report10 CondensedInterimBalanceSheet12 CondensedInterimProfitandLossAccount andOtherComprehensiveIncome13 CondensedInterimCashFlowStatement14 CondensedInterimStatementofChangesinEquity15 SelectedNotestotheCondenseInterimFinancialInformation

CONTENTS

2 PAKGEN POWER LIMITED

COmpaNy prOfilE

THE COMPANY Pakgen Power Limited (“theCompany”) was incorporated inPakistan on 22 June 1995 underthe Companies Ordinance, 1984.The registered office is situated at53-A,LawrenceRoad,Lahore.Theprincipal activitiesof theCompanyare to own, operate and maintainan oil fired power station (“theComplex”) having gross capacityof 365 MW in Mehmood Kot,Muzaffargarh,Punjab,Pakistan.

BOARD OF DIRECTORS MianHassanMansha Chairman Mr.GhazanfarHussainMirza ChiefExecutiveOfficer Mr.ShahidMalik Dr.ArifBashir Mr.AurangzebFeroz Mr.KamranRasool Mr.MuhammadYounas Mr.MahmoodAkhtar

AUDIT COMMITTEE Mr.AurangzebFeroz Chairman Mr.ShahidMalik Mr.KhawajaMuhammadYounus CHIEF FINANCIAL OFFICER Mr.KhalidQadeerQureshi COMPANY SECRETARY Mr.KhalidMahmoodChohan BANKERS OF THE COMPANY HabibBankLimited TheBankofPunjab SilkBankLimited UnitedBankLimited AlliedBankLimited NationalBankofPakistan BankAlfalahLimited FaysalBankLimited AskariBankLimited HabibMetropolitanBankLimited NIBBankLimited MCBBankLimited BankIslamiPakistanLimited KASBBankLimited AlBarakaBank(Pakistan)Limited AUDITOR OF THE COMPANY RiazAhmad&Co. CharteredAccountants

1st Quarterly Report 2016 3

LEGAL ADVISOR OF THE COMPANY Mr.M.AurangzebKhan AdvocateHighCourt REGISTERED OFFICE 53-A,LawrenceRoad, Lahore-Pakistan UAN:042-111-11-33-33 HEAD OFFICE 1-B,AzizAvenue,Gulberg-V, Lahore-Pakistan Tel:042-35717090-96 Fax:042-35717239 SHARE REGISTRAR CentralDepositoryCompanyofPakistanLimited CDCHouse,99-B,Block-B,S.M.C.H.S Shahra-e-Faisal,Karachi-74400 Tel:(92-21)111-111-500 Fax:(92-21)34326053 PLANT MehmoodKot,Muzaffargarh, Punjab-Pakistan.

4 PAKGEN POWER LIMITED

DirECTOrS’ rEpOrT

TheDirectorsofPakgen Power Limited “the Company”arepleasedtopresenttheirreporttogetherwithoperationalandfinancialresultsofyourCompanyfortheperiodended31March2016.

Wereportthatduringtheperiodunderreviewpowerplantbyachievingalltheoperatingstandardsdispatched329,853MWHofelectricityascomparedwith245,200MWHdispatchedduringthecorrespondingthreemonthsofthepreviousfinancialyear.Resultantlythecapacityfactorremainedat43.15%asagainst16.13%demonstrated in thecomparable threemonthsof thepreviousfinancialyear.

Financial Results:

ThefinancialresultsoftheCompanyforperiodended31March2016areasfollows:

PERIOD ENDED Financial Highlights 31 March 31March 2016 2015

Revenue(Rs‘000’) 2,941,520 3,319,444Gross(Loss)/profit(Rs‘000’) (66,751) 579,424Gross(Loss)/profitratiotorevenue(%) (2.27) 17.45%Aftertax(Loss)/profit(Rs‘000’) (248,250) 450,372Aftertax(Loss)/profitratiotorevenue(%) (8.44) 13.57%(Loss)Earningspershare(Rs) (0.67) 1.21

TheCompanyhaspostedaftertaxlossofRupees(248.250)millionasagainstRs450.372millionearnedinthecomparativeperiod.ThenetprofitsoftheCompanydemonstratedthelossperShareofRs.(.67)asagainstRs.1.21earnedpershareinthecorrespondingpreviousperiod.

Reasonforvariationinnetprofit/(Loss)forperiodended31stMar2016incomparisonwithperiodended31stMar2015isdecreasedindeltalossbyRupees25.942Million.Mainreasonofthedecreaseindeltalossisdecreaseinfuelprice.

Operational Results:

OurcustomerWAPDAremainsunabletomeetitsobligationstotheCompanyinaccordancewiththePowerPurchaseAgreement(PPA)whicharesecuredunderasovereignguaranteeofGOP.Ason31March2016anamountofRupees11.65billionisoutstandingagainstWAPDAofthisRupees1.822billionisclassifiedoverdue.Despitefrequentfollow-upwiththeconcernedministryofgovernmentofPakistanitisregrettedtherehasbeennoimprovementinthesituationandthishasresultedinirregularsupplyoffuelwhichhasaffectedplantoperations.

OPERATIONS AND SIGNIFICANT EVENTS:

Plantoperation restoredonJanuary29,2016aftera long intrupptionasa resultofGeneratorStepup(GSU)TransformerfailureonFebruary7,2015.Plantremainedinoperationmostofthetimeinthisquarterfrom29Januaryonward.Loadfactorremainedlowduringthequarterascomparedtopreviousyearsinthesamequarter.LowloadfactorconsumedpartofthefuelsavingswhichcomesasaresultofturbineretrofitinDecember2015.

TheCompany’slossofgrossprofitandcostsforreplacementoftransformerduetothisforcedoutageareadequatelycoveredundertheinsurancepolicyexceptfordeductibleperiodandamountasperinsurancepolicy.Theestimatedlossofgrossprofit,propertydamageandrestorationcostsof theComplexamountingtoRupees3,087.730millionoutofwhichpartialpaymentofclaimamountingtoRupees1,230millionhasbeenreceivedfromtheinsurancecompanyuptothisperiod.

1st Quarterly Report 2016 5

Theassessmentoftotallossduetothisforcedoutage,settlementofclaimfromtheinsurancecompanyisstillundernegotiation.Wehopefullyfinalisedtheclaimfrominsurancecompanyinnextquarterofcurrnetyear.

Corporate Objective:

Beingaresponsibleandreliableenergycompany,weaimtofacilitatethenationinreducingitscostofenergy.ToaccomplishthisobjectiveMOU(MemorandumofUnderstanding)hasbeensignedbetweenGovernmentofPakistanandthecompanytoconvertitsoilfiredplantintocoalon28June2013.Conversionisexpectedtotakeplacewithinthreeyears.

Lalpir Solar Power (Pvt) Limited:

DuringtheyearBoardofDirectorsoftheCompanyhasapprovedinvestmentintheLalpirSolarPower(Pvt)Limited(LPSL).TheprincipalactivityofLSPLwillbetobuild,own,operateandmaintainorinvestinasolarpowerprojecthavinggrosscapacityupto20MWpwithnetestimatedgenerationcapacityofapprox19MWpatprojectsitelocatedatMehmoodKot,Dist.MuzaffarGarh. NishatGroupCompanies&Associates (Nishat) has submittedExpressionof Interest (EOI) toPunjabPowerDevelopmentBoard (PPDB)/ Alternate EnergyDevelopmentBoard (AEDB) toconductfeasibilitystudy.SubsequenttoapprovalfromPPDBand/orAEDBNishatwillsubmitaperformanceguaranteeinfavourofPPDB/AEDBtoshowthecommitmentandagreetocompletethefeasibilitystudywithinstipulatedtimeframe.

Consortiummembers(LalpirPowerLimited,PakgenPowerLimitedandNishatpowerLimitedandanyotherappropriateinvestor)cansharetheequitystakesubsequently.Theconsortiummembersshallcollectivelyholdatleast51%(fifty-onepercent)ofthetotalissuedandpaidupsharecapitalofLalpirSolar,untilthesixth(6th)anniversaryofsuccessfulcommissioningoftheProject.

Themanagement hasdecided to continuewith solar project despite adownward revisionofupfronttariffbyNEPRA.

TheCompanycontinuedtoremainproactiveinmaintainingandexpandingitscorporateSocialResponsibilityprogram.OurfocushadbeentosupporthealthandeducationprogramparticularlyintheareaswhereourplantsarelocatedintheprovinceofPunjab.

Acknowledgement:

Theboardappreciatesthemanagementforestablishingamodernandmotivatingworkingclimateandpromotinghighlevelsofperformanceinallareasofthepowerplant.Wealsoappreciatetheeffortsofthecompany’sworkforcefordeliveringremarkableresultsandwewishfortheirlongliferelationshipwiththeCompany.

For and on behalf of the Board of Directors

(Ghazanfar Hussain Mirza)ChiefExecutiveOfficerLahore:23April2016

6 PAKGEN POWER LIMITED

1st Quarterly Report 2016 7

8 PAKGEN POWER LIMITED

1st Quarterly Report 2016 9

10 PAKGEN POWER LIMITED

Un-audited Audited 31 March 31December Note 2016 2015 (Rupees in thousand)

EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorizedsharecapital 400,000,000(2015:400,000,000) ordinarysharesofRupees10each 4,000,000 4,000,000 Issued,subscribedandpaidupsharecapital 3,720,816 3,720,816Capitalreserve 116,959 116,959Revenuereserve-un-appropriatedprofit 11,175,626 11,423,876 Total Equity 15,013,401 15,261,651 LIABILITIES NON-CURRENT LIABILITY Long-termfinance-secured 1,114,563 1,226,019 CURRENT LIABILITIES Tradeandotherpayables 4,160,931 3,474,597Accruedmark-up 79,291 60,489Short-termborrowings 6,235,828 5,080,859Currentportionoflong-termfinance 5 445,825 445,825

10,921,875 9,061,770

Total liabilities 10,921,875 10,287,789 CONTINGENCIES AND COMMITMENTS 6 TOTAL EQUITY AND LIABILITIES 27,049,839 25,549,440 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CONDENSED iNTErim BalaNCE SHEETas at 31 march 2016

CHIEF ExECUTIVE

1st Quarterly Report 2016 11

Un-audited Audited 31 March 31December Note 2016 2015 (Rupees in thousand) ASSETS NON-CURRENT ASSETS Property,plantandequipment 7 9,839,329 10,018,982Longterminvestment 969 969long-termsecuritydeposits 300 300 9,840,598 10,020,251

CURRENT ASSETS Stores,sparepartsandotherconsumables 822,851 836,161Fuelstock 243,930 186,875Tradedebts 12,682,908 10,833,800Advancesandshort-termprepayments 2,154,837 297,907Otherreceivables 80,039 2,286,015Salestaxrecoverable 1,197,837 1,087,628Cashandbankbalances 26,839 803

17,209,241 15,529,189

TOTAL ASSETS 27,049,839 25,549,440

DIRECTOR

12 PAKGEN POWER LIMITED

CONDENSED iNTErim prOfiT aND lOSS aCCOUNT fOr THE qUarTEr ENDED 31 marCH 2016 (UN-aUDiTED)

Quarter Ended 31 March 31March Note 2016 2015 (Rupees in thousand) REVENUE 2,941,520 3,319,444COSTOFSALES 8 (3,008,271) (2,740,020) GROSS(LOSS)/PROFIT (66,751) 579,424 ADMINISTRATIVEEXPENSES (48,484) (36,214)OTHEROPERATINGEXPENSES (493) (568)

(115,728) 542,642OTHEROPERATINGINCOME 578 4,215 (LOSS)/PROFITFROMOPERATIONS (115,150) 546,857FINANCECOST (133,100) (96,485) (LOSS)/PROFITBEFORETAXATION (248,250) 450,372TAXATION - - (LOSS)/PROFITAFTERTAXATION (248,250) 450,372 OTHERCOMPREHENSIVE(LOSS)/INCOMEFORTHEPERIOD - - TOTALCOMPREHENSIVE(LOSS)/INCOMEFORTHEPERIOD (248,250) 450,372 (LOSS)/EARNINGSPERSHARE-BASICANDDILUTED(RUPEES) (0.67) 1.21 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CHIEF ExECUTIVE DIRECTOR

1st Quarterly Report 2016 13

CONDENSED iNTErim CaSH flOW STaTEmENTfOr THE qUarTEr ENDED 31 marCH 2016 (UN-aUDiTED)

31 March 31March Note 2016 2015 (Rupees in thousand)CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations 9 (894,286) 532,497 Financecostpaid (114,298) (148,076)Interestincomereceived 158 3,817Incometaxpaid (4,205) (1,382)Gratuitypaid (2,936) (2,741) Net cash generated from operating activities (1,015,567) 384,115 CASH FLOWS FROM INVESTING ACTIVITIES Capitalexpenditureonproperty,plantandequipment (1,783) 141,351 Net cash used in investing activities (1,783) 141,351 CASH FLOWS FROM FINANCING ACTIVITIES Proceedsfromlong-termfinance (111,456) -Dividendspaid (127) (43) Net cash used in financing activities (111,583) (43) Net increase / (decrease) in cash and cash equivalents (1,128,933) 525,423 Cash and cash equivalents at beginning of the period (5,080,056) (3,775,350) Cash and cash equivalents at end of the period (6,208,989) (3,249,927) CASH AND CASH EQUIVALENTS Cashinhand 239 353Cashatbanks 26,600 254,188Short-termborrowings (6,235,828) (3,504,468) (6,208,989) (3,249,927)

Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CHIEF ExECUTIVE DIRECTOR

14 PAKGEN POWER LIMITED

CONDENSED iNTErim STaTEmENT Of CHaNGES iN EqUiTyfOr THE qUarTEr ENDED 31 marCH 2016 (UN-aUDiTED)

RESERVES SHARE Capital Revenue

TOTAL CAPITAL Retained Un- EQUITY payments appropriated reserve profit ( - - - - - - - - - -- - -Rupees in thousand - - - - - - - -- - - ) Balance as at 01 January 2015 (Audited) 3,720,816 116,959 10,570,31414,408,089 Transactionswithowners-Finaldividendfortheyearended31December2014@Rupees1pershare - - (372,082) (372,082)

Profitforthequarterended31March2015 - - 450,372 450,372Othercomprehensiveincomeforthequarterended31March2015 - - - -Totalcomprehensiveincomeforthequarterended31March2015 - - 450,372 450,372 Balance as at 31 March 2015 - (Un-audited) 3,720,816 116,959 10,648,60414,486,379 Balanceasat01January2016(Audited) 3,720,816 116,959 11,423,87615,261,651 Transactionswithowners-Finaldividendfortheyearended31December2015@Rupees1pershare - - - - (Loss)forthequarterended31March2016 - - (248,250) (248,250)Othercomprehensiveincomeforthequarterended31March2016 - - - -Totalcomprehensiveincome/(loss)forthequarterended31March2016 - - (248,250) (248,250) Balance as at 31 March 2016 - (Un-audited) 3,720,816 116,959 11,175,62615,013,401 Theannexednotesformanintegralpartofthiscondensedinterimfinancialinformation.

CHIEF ExECUTIVE DIRECTOR

1st Quarterly Report 2016 15

SElECTED NOTES TO THE CONDENSED iNTErim fiNaNCial iNfOrmaTiONfOr THE qUarTEr ENDED 31 marCH 2016 (UN-aUDiTED)

1. THECOMPANYANDITSOPERATIONS PakgenPowerLimited (“theCompany”)was incorporated inPakistanon22June1995

undertheCompaniesOrdinance,1984.TheregisteredofficeoftheCompanyissituatedat53-A,LawrenceRoad,Lahore.TheordinarysharesoftheCompanyarelistedonPakistanStockExchange.TheprincipalactivitiesoftheCompanyaretoown,operateandmaintainanoilfiredpowerstation(“theComplex”)havinggrosscapacityof365MWinMehmoodKot,Muzaffargarh,Punjab,Pakistan.

2. BASISOFPREPARATION This condensed interim financial information is unaudited and is being submitted to

shareholdersasrequiredbytheSection245oftheCompaniesOrdinance,1984.ThiscondensedinterimfinancialinformationoftheCompanyforthequarterended31March2016hasbeenprepared in accordancewith requirementsof InternationalAccountingStandard (IAS)34“InterimFinancialReporting”andprovisionsofanddirectives issuedundertheCompaniesOrdinance,1984.Incasewhererequirementsdiffer,theprovisionsofordirectivesissuedundertheCompaniesOrdinance,1984havebeenfollowed.ThiscondensedinterimfinancialinformationshouldbereadinconjunctionwiththeprecedingauditedannualfinancialstatementsoftheCompanyfortheyearended31December2015.

3. ACCOUNTINGPOLICIES Theaccountingpoliciesandmethodsofcomputationadoptedforthepreparationofthis

condensed interim financial information are sameas applied in thepreparation of theprecedingannualpublishedfinancialstatementsoftheCompanyfortheyearended31December,2015.

4. CRITICALACCOUNTINGESTIMATESANDJUDGMENTS Thepreparationofthiscondensedinterimfinancialinformationinconformitywithapproved

accounting standards requires the useof certain critical accounting estimates. It alsorequiresmanagementtoexerciseitsjudgmentintheprocessofapplyingtheCompany’saccountingpolicies.Estimatesandjudgmentsarecontinuallyevaluatedandarebasedonhistoricalexperienceandother factors, includingexpectationsof futureeventsthatarebelievedtobereasonableunderthecircumstances.

Duringpreparationofthiscondensedinterimfinancialinformation,thesignificantjudgments

madebythemanagementinapplyingtheCompany’saccountingpoliciesandkeysourcesofestimationanduncertaintywerethesameasthosethatappliedintheprecedingauditedannualpublishedfinancialstatementsoftheCompanyfortheyearended31December,2015.

4.1 Standrad and amendments to published approved standreads that are effective

in current year and are relevant to the copamny Thefollowingstandardsandamendmentstopublishedapprovedstandardsaremandatory

fortheCompany’saccountingperiodsbeginningonorafter01January2015:

IFRS12‘DisclosuresofInterestsinOtherEntities’(effectiveforannualperiodsbeginningonorafter01January2015).Thisstandardincludesthedisclosurerequirementsforallformsofinterestsinotherentities,includingjointarrangements,associates,specialpurposevehiclesandotheroff-balancesheetvehicles.Thisstandarddoesnothavesignificantimpactonthesefinancialstatements,exceptforcertainadditionaldisclosures.

IFRS13‘FairvalueMeasurement’(effectiveforannualperiodsbeginningonorafter01January 2015). This standard aims to improve consistency and reduce complexity byprovidingaprecisedefinitionoffairvalueandasinglesourceoffairvaluemeasurementand

16 PAKGEN POWER LIMITED

disclosurerequirementsforuseacrossIFRSs.Therequirements,whicharelargelyalignedbetweenIFRSsandUSGAAP,donotextendtheuseoffairvalueaccountingbutprovideguidanceonhowitshouldbeappliedwhereitsuseisalreadyrequiredorpermittedbyotherstandardswithinIFRSsorUSGAAP.Thisstandarddoesnothavesignificantimpactonthesefinancialstatements,exceptforcertainadditionaldisclosures.

On 12December 2013, IASB issuedAnnual Improvements to IFRSs: 2010 – 2012Cycle, incorporatingamendments tosix IFRSsmorespecifically in IFRS13 ‘FairValueMeasurement’andIAS24‘RelatedPartyDisclosures’,whichareconsideredrelevanttotheCompany’sfinancialstatements.Theseamendmentsareeffectiveforannualperiodsbeginningonorafter01July2014.TheseamendmentsareunlikelytohaveasignificantimpactontheCompany’sfinancialstatements.

On 12December 2013, IASB issuedAnnual Improvements to IFRSs: 2011 – 2013Cycle,incorporatingamendmentstofourIFRSsmorespecificallyinIFRS13‘FairValueMeasurement’,whichisconsideredrelevanttotheCompany’sfinancialstatements.Theseamendmentsareeffectiveforannualperiodsbeginningonorafter01July2014.TheseamendmentsareunlikelytohaveasignificantimpactontheCompany’sfinancialstatements.

4.2 Standard and amendments to published approved accounting standards that are

effective in current year but not relevant to the company There are standards and amendments to published standards that aremandatory for

accountingperiodsbeginningonorafter01January2015butareconsiderednottoberelevantordonothaveanysignificantimpactonthecompanies’condensedinterimfinancialinformation.

Un-audited Audited 31 March 31December 2016 2015 (Rupees in thousand)5. FROMBANKINGCOMPANY-SECURED Longtermloan 1,560,388 1,671,844 Less:Currentportionshownundercurrentliabilities 445,825 445,825 1,114,563 1,226,019

6. CONTINGENCIESANDCOMMITMENTS 6.1 Contingencies Thereisnochangeinthecontingenciesdisclosedintheprecedingauditedannualfinancial

statementsoftheCompanyfortheyearended31December2015.

6.2 Commitment 6.2.1 TheCompanyhasenteredintoacontractforaperiodofthirtyyearsforpurchaseoffuel

fromPakistanStateOilCompanyLimited(PSO).UnderthetermsofFuelSupplyAgreement(FSA),theCompanyisnotrequiredtobuyanyminimumquantityoffuelfromPSO.

6.2.2CommitmentsforcapitalexpenditureasatreportingdateareamountingtoRupees111.123

million(31Dec2015:Rupees285.284million).

1st Quarterly Report 2016 17

Un-audited Audited 31 March 31December 2016 2015 (Rupees in thousand)7. PROPERTY,PLANTANDEQUIPMENT Operatingfixedassets(Note7.1) 9,042,083 9,223,337 Capitalwork-in-progress 797,246 795,645 9,839,329 10,018,982 7.1 Operating fixed assets OpeningBookvalue 9,223,337 7,358,455 Add:CostofAdditionsduringtheperiod/ year(Note7.1.1) 182 2,829,923 Less:Bookvalueofdeletionsduringthe period/year(7.1.2) - 372,778 Less:Depreciationchargedduringtheperiod/year 181,436 592,263 9,042,083 9,223,337 7.1.1 Cost of additions BuildingsonFreeholdLand - 214,751 PlantandMachinery - 2,614,656 Furnitureandfittings - 49 OfficeEquipment 182 306 Electricequipmentandappliances - 161 182 2,829,923 7.1.2 Book value of Deletions - 372,778

Quarter Ended 31 March 31March 2016 2015 (Rupees in thousand)8. COSTOFSALES Fuelconsumed 1,895,058 2,349,629 Operationandmaintenancecosts 80,927 75,772 Insurancecost 112,294 82,298 Liquidateddamages 745,791 105,367 Depreciation 172,917 126,954 Others 1284 - 3,008,271 2,740,020

18 PAKGEN POWER LIMITED

Quarter Ended 31 March 31March 2016 2015 (Rupees in thousand)9. CASHGENERATEDFROMOPERATIONS (Loss)beforetaxation (248,250) 450,372 Adjustmentfornon-cashchargesandotheritems: Depreciation 181,436 130,065 Provisionforgratuity 2,936 2,741 Interestincome (158) (3,817) Financecost 133,100 96,485 Cash flows from operating activities before working capital changes 69,064 675,846

(Increase)/decreaseincurrentassets: Stores,sparepartsandotherconsumables 13,310 4,624 Fuelstock (57,055) 278,336 Tradedebts (1,849,108) 262,933 Advancesandshort-termprepayments (1,852,725) (305,060) Otherreceivables 2,205,976 187,464 Salestaxrecoverable (110,209) 10,628 (1,649,811) 438,925 (Decrease)/increasetradeandotherpayables 686,461 (582,274) (894,286) 532,497

10. TRANSACTIONSWITHRELATEDPARTIES TherelatedpartiesoftheCompanycompriseofassociatedundertakings,otherrelated

group companies and keymanagement personnel. Transactionswith related partiesincludeexpenseschargedbetweenthesecompanies.TheCompanyinthenormalcourseofbusinesscarriesouttransactionswithvariousrelatedparties.Detailoftransactionswithrelatedpartiesotherthanthosewhichhavebeenspecificallydisclosedelsewhereinthesefinancialstatementsareasfollows:

1st Quarterly Report 2016 19

Quarter Ended 31 March 31March 2016 2015 (Rupees in thousand) Associated company Nature of transaction

AdamjeeInsurance CompanyLimited Insurancepremium 89 98 SecurityGeneralInsurance CompanyLimited Insurancepremium 130,083 93,813 LalpirPowerLimited Shareofexpenses 77,066 72,586 Shareofrentalincome 419 398 Nishat(AzizAvenue)hotels andpropertiesLimited Rent 1,570 1,570 PakistanAviatorsandAviation (Private)Limited Flyingservices 13,673 13,251 STAFF RETIREMENT BENEFIT PLANS Providentfund Contributionmade 3,709 3,293 Gratuityfund Contributionmade 2,936 2,741 KEY MANAGEMENT PERSONNEL Remuneration 2,507 2,319

10.1 TheCompanysharespremises,employeesandothercommoncostswithitsassociatedcompany,LalpirPowerLimitedonfifty-fiftybasis inaccordancewith “SharedFacilitiesAgreement”.

11. FINANCIALRISKMANAGEMENT TheCompany’sfinancialriskmanagementobjectivesandpoliciesareconsistentwiththose

disclosedintheprecedingauditedannualfinancialstatementsoftheCompanyfortheyearended31December2015.

Riskmanagement is carriedoutby theCompany’s financedepartment underpolicies

approvedby theBoard ofDirectors (theBoard). TheCompany’s financedepartmentevaluates and hedges financial risks. The Board provides principles for overall riskmanagement,aswellaspoliciescoveringspecificareassuchascurrencyrisk,otherpricerisk,interestraterisk,creditrisk,liquidityriskandinvestmentofexcessliquidity.Alltreasuryrelatedtransactionsarecarriedoutwithintheparametersofthesepolicies.

20 PAKGEN POWER LIMITED

12. CORRESPONDINGFIGURES InordertocomplywiththerequirementsofInternationalAccountingStandard34“Interim

FinancialReporting”,thecondensedinterimbalancesheetandcondensedinterimstatementof changes in equity have been comparedwith balances of audited annual financialstatementsofprecedingfinancialyear,whereas, thecondensed interimprofitand lossaccount,condensedinterimcashflowstatementhavebeencomparedwiththebalancesofcomparableperiodofimmediatelyprecedingfinancialyear.

Correspondingfigureshavebeen re-arranged,wherevernecessary, for thepurposeof

comparisonhowever,nosignificantre-arrangementshavebeenmade. 13. DATEOFAUTHORISATIONFORISSUE Thiscondensedinterimfinancialinformationwasauthorizedforissueon23April2016by

theBoardofDirectorsoftheCompany. 14. GENERAL FigureshavebeenroundedofftothenearestthousandRupees.

CHIEF ExECUTIVE DIRECTOR

53-A, Lawrence Road, LahoreTel : 042-36367812-16

Fax: 042-36367414UAN: 042-111-11-33-33