Dawood Lawrencepur : Transmission of Quarterly Report for the Period Ended March 31, 2023

Quarterly Report March 2023

CONTENTS

Our Vision & Our Mission Company Information Directors' Review Report Directors' Review Report (Urdu)

Unconsolidated Condensed Interim Statement of Financial Position Unconsolidated Condensed Interim Statement of Profit or Loss Unconsolidated Condensed Interim Statement of other Comprehensive Income Unconsolidated Condensed Interim Statement of Changes In Equity Unconsolidated Condensed Interim Statement of Cash Flows

Notes To The Unconsolidated Condensed Interim Financial Statement Consolidated Condensed Interim Statement of Financial Position Consolidated Condensed Interim Statement of Profit or Loss Consolidated Condensed Interim Statement of other Comprehensive Income Consolidated Condensed Interim Statement of Changes In Equity Consolidated Condensed Interim Statement of Cash Flows

Notes To The Consolidated Condensed Interim Financial Statement

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Our Vision

To give our customers an energy abundant future by harnessing the potential of the environment in a safe and sustainable manner.

Our Mission

We aim to be the leading renewable energy solutions company of Pakistan, with a turnover exceeding Rs.50 billion by 2025. We will achieve this by resolutely following our Core Values and by:

Anticipating customer needs and consistently optimizing our products & services.

Building strategic partnerships with technology suppliers, vendors and financial institutions.

Becoming the employer of choice and developing a culture that inspires performance, excellence andteamwork.

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COMPANY INFORMATION

Board of Directors	Bankers
• Mr. Muhammad Jawaid Iqbal (Chairman)	•	Bank Al-Habib Limited
• Mr. Abdul Samad Dawood	• Standard Chartered Bank (Pakistan)
•	Ms. Sabrina Dawood		Limited
•	Mr. Shafiq Ahmed	•	Habib Bank Limited
•	Mr. Zamin Zaidi	• National Bank of Pakistan
•	Mr. Ruhail Muhammad	• Habib Metropolitan Bank Limited
• Mr. Mohammad Shamoon Chaudry	•	MCB Bank Limited

• Mr. Mujtaba Haider Khan (Chief Executive

Officer)	Legal Advisor
Board Audit Committee	• Zia Law Associates l7, Second Floor Shah
	Chiragh Chambers The Mall, Lahore
• Mr. Ruhail Muhammad (Chairman)	Share Registrar
• Mr. Shafiq Ahmed
• Mr. Mohammad Shamoon Chaudry
Human Resource and Remuneration	• Central Depository Company of Pakistan
Ltd.
Committee	CDC House, 99-B, Block B, S.M.C.H.S Main
	Shahra-e-Faisal Karachi - 74400
• Mr. Muhammad Jawaid Iqbal (Chairman)	Tel.: [phone]

• Mr. Abdul Samad Dawood

•	Mr. Zamin Zaidi	Registered I Head Office
Chief Financial Officer	• Dawood Centre M. T. Khan Road
		Karachi-75530
•	Ms. Nazia Hasan	Tel.: [phone]
Company Secretary	Fax: [phone]
E-mail:
		[e-mail]
•	Mr. lmran Chagani	Website: www.dawoodlawrencepur.com
Head of Internal Audit	Mills
•	Mr. Amjad Ali	• Dawoodabad Railway Station Road and
Auditors	Luddan Road, Chak 439, E.B, Tehsil
Burewala, District Vehari.
		Tel.: [phone]
• A. F. Ferguson & Co. (Chartered	Fax: [phone]
	Accountants)	DawoodPur

• G.T. Road, Faqirabad, District Attock. Tel.: [phone]
  Fax: [phone]

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DAWOOD LAWRENCEPUR LIMITED

DIRECTORS' REVIEW REPORT

FOR THE QUARTER ENDED March 31, 2023

The Directors are pleased to present their report together with the unaudited unconsolidated condensed interim financial statements of Dawood Lawrencepur Limited (the Company) and the unaudited consolidated condensed interim financial statements of the Group for the period ended March 31, 2023.

BUSINESS REVIEW

Renewable Energy Business

Due to flood damages, economic policy changes, and political instability in the country, Pakistan is still experiencing a massive economic fallout from the previous year. Many sectors in the country have been practically forced to halt production completely or bring down production capacity; prices have risen at rates never experienced in history and further inflation is on the cards on the back of continued weakness in local currency that has already seen 25.6pc devaluation during the quarter.

Reon Energy Limited (REL) experienced a moderate start in the first quarter of 2023. During this period, the total order intake amounted to 8 MWs, with an approximate value of PKR 1 billion. These orders signify a promising beginning for the company's operations in the current year. Furthermore, the company is actively engaged in negotiations with leading conglomerates - these ongoing discussions hold great potential to secure significant business opportunities and establish strategic partnerships. The Telco segment continued to witness strong growth in terms of margins and delivered sites in addition to expanding the overall portfolio of product offerings. Deliveries under the project are expected to kick start from Q2 2023. These developments signal consumer trust in REL,proving it to be the best choice for customers.

Wind Energy Project

The Wind Plant is operating satisfactorily and meeting expected targets for Availability and Balance of Plant (BOP) Loss. The BOP Loss for the reporting quarter was 3.11% against a target of 2.5%. This increase was due to very high curtailment during January and February. Availability was 98.01% against a target of 98.0%. Health Safety and Environment (HSE) remained a priority and 570,471 safe man-hours have been clocked since COD with zero injury rate and TRIR. The plant has been operating safely without injury for 2,103 days.

There was very high curtailment during January and February which was reduced in March. The curtailment NPMV for the reporting quarter was 9.74 GWh with an energy loss of 4.28 GWh. The total energy billed during the reporting quarter (19.40 GWh) is slightly lower than the P90 level (19.95 GWh) and is higher than the budget (18.95 GWh). The Plant experienced very good wind in January and February, but subsequently dropped in March.

The issue of high voltage is being experienced in the system due to the connection of the three Gharo plants in series and the long length of the Gharo-Jhimpir line which has been taken up with both NTDC and CPPA. However, resolution of the problem will require the connection of the Gharo plants in a loop, capability for which is currently not available with the NTDC. Steps have been taken at the relevant site to monitor voltage levels and liaise with RCC Jamshoro for resolution. Incidents of high voltage have reduced during the current quarter.

The Company, in coordination with neighboring Plants (HydroChina Dawood and Zephyr), has started discussions with CPPA and the Ministry of Energy to change our connection from NTDC to KE. This will provide a stable connection and reduce or eliminate curtailment. Both entities are amenable to the change, but procedural matters will affect the decision timeline.