Sitara Energy : Transmission of Quarterly Report for the Period Ended 30.09.2023

SITARA ENERGY LIMITED

SEPTEMBER, 2023

QUARTERLY REPORT

(UNAUDITED)

CONTENTS

Sitara Energy Limited

	Company Information	02
	Director Report	03
	Condensed Interim Statement of Financial Position	05
	Condensed Interim Statement of Profit or Loss Account	06
	Condensed Interim Statement of Comprehensive Income	07
	Condensed Interim Statement of Changes in Equity	08
	Condensed Interim Statement of Cash Flows	09
	Condensed Interim Notes to Financial Statements	10

Consolidated Accounts

(Sitara Energy Ltd and Its Subsidiary Company)

Condensed Interim Consolidated Statement of Financial Position	14
Condensed Interim Consolidated Statement of Profit or Loss Account	15
Condensed Interim Consolidated Statement of Comprehensive Income	16
Condensed Interim Consolidated Statement of Changes in Equity	17
Condensed Interim Consolidated Statement of Cash Flows	18
Condensed Interim Consolidated Notes to Financial Statements	19

Unaudited First Quarter Accounts 2023 01

COMPANY INFORMATION

BOARD OF DIRECTORS		AUDIT COMMITTEE
Ms. Noureen Javed	(Chairperson)	Mr. Shahid Hameed Sheikh	(Chairman)
Mr. Javed Iqbal	(Chief Executive Ofcer)	Mr. Sheikh Javaid Islam
Mr. Shahid Hameed Sheikh	Mr. Mubashir Ahmed Zareen
Mr. Tahir Ibraheem		HUMAN RESOURCE &
Ms. Haniah Javed
Mr. Mubashir Ahmed Zareen	REMUNERATION COMMITTEE
Mr. Sheikh Javaid Islam		Mr. Mubashir Ahmed Zareen	(Chairman)
		Mr. Javed Iqbal
CHIEF FINANCIAL OFFICER		Mr. Sheikh Javaid Islam
Mr. Ijaz A. Babar - FCA		AUDITORS
COMPANY SECRETARY		RSM Avais Hyder Liaquat Nauman
Mr. Mazhar Ali Khan		(Chartered Accountants)
LEGAL ADVISOR		BANKERS
Sahibzada Muhammad Arif	Standrad Chartered Bank (Pak) Limited
		Albaraka Bank (Pakistan) Limited
SHARE REGISTRAR		National Bank of Pakistan
THK Associates (Private) Limited	First Women Bank Limited
Plot No. 32-C, Jami Commercial Street 2,	Bank Alfalah Limited
D.H.A. Phase VII, Karachi		Faysal Bank Limited
UAN : [phone]	The Bank of Punjab
E-mail: [e-mail]		MCB Bank Limited
REGISTERED OFFICE		United Bank Limited
	Meezan Bank Limited
601-602 Business Centre, Mumtaz	Allied Bank Limited
Hassan Road, Karachi 74000	Silk Bank Limited
		Askari Bank Limited
		Summit Bank Limited
		Habib Bank Limited
PLANT		WEB SITE
33 K.M., Sheikhupura Road, Faisalabad	http://www.sitara.pk

02 Unaudited First Quarter Accounts 2023

DIRECTORS' REVIEW

The Board of Directors of Sitara Energy Limited (the Company) is pleased to present their report together with the Condensed Interim Financial Information and its subsidiary for the first quarter ended September 30, 2023.

Financial Results:

The financial results for the first quarter of the current financial year, in comparison with the first quarter of the last year, are as under: -

Financial Highlights	July - September	July - September
	2023	2022
	Rupees in thousand
Sales - net	7,902	189,300
Cost of generation	25,162	188,420
Gross (loss) /profit	(17,260)	880
(Loss) after tax	(68,036)	(51,463)
(Loss) per share - Basic & diluted (Rs.)	(3.56)	(2.70)

The sales revenue of the Company decreased to Rs. 7.902 Mln during the first quarter of the current financial year in comparison with Rs. 189.300 Mln during the first quarter of the last financial year due to lower demand by our Bulk Power Consumers (BPCs). Resultantly, company's gross profit converted into gross loss of Rs. 17.260 Mln during the first quarter of the current financial year in comparison with gross profit of Rs. 0.880 Mln during the first quarter of the last financial year.

Accordingly, the net loss for the first quarter of the current financial year increased to Rs. 68.036 Mln in comparison with Rs 51.463 Mln during the first quarter of the last financial year inspite of decrease in operating expenses and finance cost, as a result of rescheduling of financing facilities at cost of fund.

The profitability of the company for the remaining period of current financial year 2023-24 will be dependent upon viable operation based on affordable prices of fuels (RLNG & RFO), increase in load demand by our BPCs.

We extend our heartiest gratitude to all our lenders and suppliers for their continuous support in difficult time and dedicated work by the management and all the employees in the larger interest of the Company.

By order of the board

Javaid Islam	Javed Iqbal
Director	Chief Executive Officer
	Faisalabad:
	October 30, 2023

Unaudited First Quarter Accounts 2023 03

DIRECTORS' REVIEW

04 Unaudited First Quarter Accounts 2023

Condensed Interim Statement of Financial Position (Unaudited)

As at September 30, 2023

	(Un-audited)	(Audited)		(Un-audited)	(Audited)
	September 30,	June 30,		September 30,	June 30,
Note	2023	2023	Note	2023	2023
-----------Rupeesin '000'----------------	-----------Rupeesin '000'-------------

SHARE CAPITAL AND RESERVES
Authorised capital
30,000,000 ordinary shares
of Rs. 10/- each
Issued, subscribed
and paid up capital
Capital reserve - share premium
Revenue reserves	3

300,000

190,920

143,190

727,621

1,061,731

	NON-CURRENT ASSETS
	Property, plant and equipment	5
	Investment property	6
300,000	Investment in subsidiary
	Long term loan
190,920	Long term deposits
143,190
795,657
1,129,767

658,736

653,281

50,000

1,000

1,511

1,364,528

661,978

403,756

50,000

1,000

1,511

1,118,245

NON-CURRENT LIABILITIES

Long term financing

Deferred interest / markup

CURRENT LIABILITIES

Trade and other payables

Unclaimed dividend

Interest / mark up payable

Short term bank borrowings

Current portion of:

Long term financing

Provision for taxation - income tax

CONTINGENCIES AND

COMMITMENTS4

36,557

22,769

59,326

759,908

3,703

574,001

883,951

29,167

2,032

2,252,762

-

43,749

21,894

65,643

	CURRENT ASSETS
	Stores, spares and loose tools
753,378
3,703	Stock of oil and lubricants
533,063	Trade debts
883,951	Loans and advances
	Deposits and prepayments
29,167	Other receivables
	Tax refunds due from Government
1,626	Cash and bank balances	7

2,204,888

-

277,656

83,487

495,573

620,118

29,918

134,239

69,844

298,456

2,009,291

277,810

100,846

674,357

619,235

26,692

205,164

74,546

303,403

2,282,053

3,373,819

3,400,298

3,373,819

3,400,298

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

Chief Executive Officer

Director

Chief Financial Officer

Unaudited First Quarter Accounts 2023 05

Condensed Interim Statement of Profit or Loss Account (Unaudited)

For The First Quarter Ended September 30, 2023

	Quarter ended	Quarter ended
	September 30,	September 30,
Note	2023	2022
--------------------- Rupees in '000'--------------------

Sales - net	8
Cost of generation	9

Gross profit

Other operating income

Operating expenses

Finance cost

(Loss) for the period before taxation Provision for taxation

(Loss) for the period

(Loss) per share - Basic and diluted

7,902

25,162

(17,260)

1,877

(15,383)

10,261

41,986

52,247

(67,630)

406

(68,036)

(3.56)

189,300

188,420

880 `

2,654

3,534

11,613

42,985

54,598

(51,064)

399

(51,463)

(2.70)

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

Chief Executive Officer

Director

Chief Financial Officer

06 Unaudited First Quarter Accounts 2023

Condensed Interim Statement of Comprehensive Income (Unaudited)

For The First Quarter Ended September 30, 2023

(Loss) for the period

Other comprehensive income for the period Total comprehensive (loss) for the period

Quarter ended	Quarter ended
September 30,	September 30,
2023	2022

----------------Rupees in '000'------------

(68,036)	(51,463)
-	-
(68,036)	(51,463)

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

Chief Executive Officer

Director

Chief Financial Officer

Unaudited First Quarter Accounts 2023 07

Condensed Interim Statement of Changes in Equity (Unaudited)

For The First Quarter Ended September 30, 2023

Balance as at July 01, 2022

Total comprehensive (loss) for the period

(Loss) for the period

Other comprehensive income

Balance as at September 30, 2022

Total comprehensive (loss) for the period

(Loss) for the period

Other comprehensive income

Balance as at June 30, 2023

Total comprehensive (loss) for the period

(Loss) for the period

Other comprehensive income

Balance as at September 30, 2023

	Issued,	Capital				Revenue reserve
	reserve
	subscribed								Total
	Share		General		Unappropriated
	and paid up				Sub total
	capital	premium		reserve		profit
	--------------------------------------				Rupees in '000'-------------------------------------------
190,920		143,190	970,000	(71,061)	898,939	1,233,049
	-		-	-	(51,463)	(51,463)	(51,463)
	-		-		-		-		-		-
-		-		-		(51,463)		( 51,463)		(51,463)
	190,920		143,190	970,000	(122,524)	847,476	1,181,586
	-		-	-	(51,819)	(51,819)	(51,819)
	-		-		-		-		-		-
-		-		-		(51,819)		( 51,819)		(51,819)
	190,920		143,190	970,000	(174,343)	795,657	1,129,767
	-		-	-	(68,036)	(68,036)	(68,036)
	-		-		-		-		-		-
-		-		-		(68,036)		( 68,036)		(68,036)
	190,920		143,190	970,000	(242,379)	727,621	1,061,731
-		-			-			-

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

Chief Executive Officer

Director

Chief Financial Officer

08 Unaudited First Quarter Accounts 2023

Condensed Interim Statement of Cash Flow Statement (Unaudited)

For The First Quarter Ended September 30, 2023

	Quarter ended	Quarter ended
	September 30,	September 30,
	2023			2022
a) CASH FLOWS FROM OPERATING ACTIVITIES	-------------Rupees in '000'-------------
(Loss) for the period before taxation	(67,630)			(51,064)
Adjustments for :
Depreciation of property, plant and equipment	3,284			4,265
Depreciation of investment property	475			527
Provision for staff retirement benefits	252			208
Finance cost	41,986			42,985
Operating cash flows before working capital changes
(21,633)			(3,079)
Changes in working capital
(Increase) / Decrease in current assets
Stores, spares and loose tools	154			388
Stock of oil and lubricants	17,359			72,581
Trade debts	178,784			(97,575)
Loans and advances	(869)			6,734
Deposits and prepayments	(3,226)			(5,853)
Other receivables	70,926			2,607
Sales Tax refunds due from government	4,702			30,346
Increase in current liabilities
Trade and other payables	6,500			6,069
	274,330			15,297
Cash generated from operating activities	252,697			12,218
Income tax paid	(14)			(742)
Staff retirement benefits paid	(221)			(154)
Finance cost paid	(174)			(1,179)
Net cash generated from operating activities
252,288			10,143
b) CASH FLOWS FROM INVESTING ACTIVITIES
Additions in property, plant and equipment	(43)	-
Additions in Investment Property	(250,000)	-
Net cash (used in) / generated from investing activities
(250,043)	-
c) C SH FLOWS FROM FINANCING ACTIVITIES
Repayment of:
Long term financing	(7,192)	(4,167)
Net cash (used in) financing activities		(7,192)		(4,167)
Net (decrease) / increase in cash and cash equivalents (a+b+c)	(4,947)	5,976
Cash and cash equivalents at the beginning of the period	303,403		299,163
Cash and cash equivalents at the end of the period
	298,456			305,139
The annexed notes form an integral part of this condensed interim financial information.

Chief Executive Officer

Director

Chief Financial Officer

Unaudited First Quarter Accounts 2023 09