Sitara Energy : Transmission of Quarterly Report for the Period Ended 31.03.2024

SITARA ENERGY LIMITED

MARCH, 2024

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 Flow Statement	09
Condensed Interim Notes to Financial Information	10

Consolidated Accounts

(Sitara Energy Ltd and Its Subsidiary Company)

Condensed Interim Consolidated Statement of Financial Position	17
Condensed Interim Consolidated Statement of Profit or Loss Account	18
Condensed Interim Consolidated Statement of Changes in Equity	19
Condensed Interim Consolidated Statement of Comprehensive Income	20
Condensed Interim Consolidated Statement of Cash Flow Statement	21
Consolidated Condensed Interim Notes to Financial Information	22

01	Unaudited Third Quarter Accounts 2024

Company Informationn

BOARD OF DIRECTORS
Ms. Noureen Javed	(Chairperson)
Mr. Javed Iqbal	(Chief Executive Ofcer)

Mr. Shahid Hameed Sheikh

Ms. Haniah Javed

Mr. Mubashir Ahmed Zareen

Mr. Sheikh Javaid Islam

Mr. Tahir Ibraheem

CHIEF FINANCIAL OFFICER

Mr. Ijaz A. Babar - FCA

COMPANY SECRETARY

Mr. Mazhar Ali Khan

LEGAL ADVISOR

Sahibzada Muhammad Arif

SHARE REGISTRAR

THKAssociates (Private) Limited

Plot No. 32-C, Jami Commercial Street 2, D.H.A. Phase VII, Karachi

UAN : [phone]

E-mail: [e-mail]

REGISTERED OFFICE

601-602 Business Centre, Mumtaz Hassan Road, Karachi 74000

PLANT

33 K.M., Sheikhupura Road, Faisalabad

AUDIT COMMITTEE
Mr. Shahid Hameed Sheikh	(Chairman)
Mr. Sheikh Javaid Islam
Mr. Mubashir Ahmed Zareen
HUMAN RESOURCE &
REMUNERATION COMMITTEE
Mr. Mubashir Ahmed Zareen	(Chairman)
Mr. Javed Iqbal
Mr. Sheikh Javaid Islam

AUDITORS

RSM Avais Hyder Liaquat Nauman (Chartered Accountants)

BANKERS

Standrad Chartered Bank (Pak) Limited

Albaraka Bank (Pakistan) Limited

National Bank of Pakistan

First Women Bank Limited

Bank Alfalah Limited

Faysal Bank Limited

The Bank of Punjab

MCB Bank Limited

United Bank Limited

Meezan Bank Limited

Allied Bank Limited

Askari Bank Limited

Bank Makramah Limited

Habib Bank Limited

WEBSITE

http://www.sitara.pk

Unaudited Third Quarter Accounts 2024

02

Director Review

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 3rd quarter ended on March 31, 2024.

Operational Financial Results:

The financial results for nine (9) months of the current financial year as compared with nine (9) months of the last financial year are as under: -

Financial Highlights	July - March	July - March
	2024	2023
	Rupees in thousand	Rupees in thousand
Sales - net	442,355	750,601
Cost of generation	454,115	725,696
Gross (loss) / profit	(11,760)	24,905
Gross (loss) / profit ratio to revenue	(2.66)%	3.32%
(Loss) after tax	(72,582)	(102,617)
(Loss) per share - Basic & diluted (Rupees)	(3.80)	(5.37)

The sales revenue of the Company decreased to Rs. 442.355 Mln during nine (9) months of current financial year in comparison with Rs 750.601 Mln during corresponding nine (9) months of last financial year due to substantial decrease in demand by our Bulk Power Consumers (BPCs). Accordingly, the Company incurred gross loss Rs 11.760 Mln during nine (9) months of current financial year as compared with gross profits Rs 24.905 Mln during corresponding nine (9) months of last financial year.

The net loss of the company decreased to Rs. 72.582 Mln during nine (9) months of current financial year in comparison with net loss of Rs 102.617 Mln during corresponding nine (9) months of last financial year due to disposal of land and capital gain thereon and repayments against rescheduled credit facilities by the banks. In spite of rescheduling of credit facilities at cost of funds of the respective banks, finance cost of the company is still higher due to rise in cost of funds of the banks on account of costly deposits of the banks and historically highest SBP policy rate.

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) and 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.

Faisababad	SHEIKH JAVAID ISLAM	JAVED IQBAL
April 25, 2024	Director	Chief Executive Officer

03	Unaudited Third Quarter Accounts 2024

2024

2023	2024
47,284	442,355
80,061	454,115
(32,777)	(11,760)
(69.32%)	(2.66%)
(43,597)	(72,582)
(2.28)	(3.80)

2024

Unaudited Third Quarter Accounts 2024

04

Statement of Financial Position

SITARA ENERGY LIMITED

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION (UN-AUDITED)

AS AT MARCH 31, 2024

	(Un-audited)		(Audited)			(Un-audited)		(Audited)
	March 31,		June 30,			March 31,		June 30,
	2024	2023			2024	2023
Note---	-----------Rupees in '000'-----------	--	Note---	-----------Rupeesin '000'-------------
EQUITY AND LIABILITIES				ASSETS
SHARE CAPITAL AND RESERVES				NON-CURRENT ASSETS
				Property, plant and equipment	6	644,869		661,978
Authorised capital				Investment property	7	579,254		403,756
30,000,000 ordinary shares				Investment in subsidiary		50,000		50,000
of Rs. 10/- each.	300,000	300,000	Long term loan		1,000		1,000
				Long term deposits		1,511		1,511
						1,276,634	1,118,245
Issued, subscribed
and paid up capital	190,920		190,920
Capital reserve - Share premium	143,190		143,190
Revenue reserves	723,075		795,657
	1,057,185	1,129,767

NON-CURRENT LIABILITIES

Long term financing	3
Deferred interest / markup	3.3
CURRENT LIABILITIES
Trade and other payables
Unclaimed dividend
Interest / mark up payable
Short term bank borrowings	4
Current portion of
Long term financing	3
Provision for taxation - income tax	13

188,800		43,749
150,289		21,894
339,089	65,643
			CURRENT ASSETS
743,938		753,378	Stores, spares and loose tools
3,703		3,703	Stock of oil and lubricants	8
480,068		533,064	Trade debts
594,250		883,951	Loans and advances
			Deposits and prepayments
103,367		29,167	Other receivables	9
			Tax refunds due from
			Government
1,290		1,626	Cash and bank balances	10
1,926,616	2,204,888

285,693

108,852

495,043

617,091

35,769

160,368

61,023

282,417

2,046,256

277,810

100,846

674,357

619,235

26,692

205,164

74,546

303,403

2,282,053

CONTINGENCIES

5

-

-

3,322,890

3,400,298

3,322,890

3,400,298

The annexed notes 1 to 16 form an integral part of this condensed interim financial statements.

CHIEF EXECUTIVE OFFICER	DIRECTOR	CHIEF FINANCIAL OFFICER
	05 Unaudited Third Quarter Accounts 2024

SITARA ENERGY LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UN-AUDITED)

FOR THE NINE MONTHS ENDED MARCH 31, 2024

	Nine month ended	Quarter ended
		March 31,		March 31,
	2024	2023	2024	2023
Note ---------------------------	Rupees in '000'-------------------------

Sales - net	11
Cost of generation	12

Gross (loss) / profit

Other income

Operating expenses

Finance cost

(Loss) for the period before taxation

Provision for taxation

13

(Loss) for the period

(Loss) per share -

Basic and diluted (Rupees)

442,355

454,115

(11,760)

116,471

104,711

51,624

124,379

176,003

(71,292)

1,291

(72,582)

(3.80)

750,601

725,696

24,905

30,803

55,708

33,963

123,061

157,024

(101,316)

1,301

(102,617)

(5.37)

395,071		534,839
374,054		503,533
21,017	`	31,306
9,532		2,095
30,549		33,401
19,335		11,326
39,725		42,116
59,060		53,442
(28,511)		(20,041)

475488

(28,985) (20,529)

(1.52)(1.08)

The annexed notes 1 to 16 form an integral part of this condensed interim financial statements.

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

Unaudited Third Quarter Accounts 2024

06

SITARA ENERGY LIMITED

CONDENSED INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME (UN-AUDITED)

FOR THE NINE MONTHS ENDED MARCH 31, 2024

	Nine month ended		Quarter ended
	March 31,		March 31,
	2024	2023	2024			2023
	--------------------------	Rupees in '000'--------------------------
(Loss) for the period	(72,582)	(102,617)	(28,985)			(20,529)
Other comprehensive income	-	-	-			-
Total comprehensive (loss) for the period
(72,582)	(102,617)	(28,985)		(20,529)

The annexed notes 1 to 15 form an integral part of this condensed interim financial statements.

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

07 Unaudited Third Quarter Accounts 2024

SITARA ENERGY LIMITED

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)

FOR THE NINE MONTHS ENDED MARCH 31, 2024

Balance as at July 01, 2022 (Audited) Total comprehensive (loss) for the period

(Loss) for the period

Other comprehensive income

Balance as at March 31, 2023 - (Un-audited) Total comprehensive (loss) for the period

(Loss) for the period

Other comprehensive income Balance as at June 30, 2023 - (Audited) Total comprehensive (loss) for the period

(Loss) for the period

Other comprehensive income

Balance as at March 31, 2024 - (Un-audited)

	Issued,	Capital				Revenue reserves
	reserve
	subscribed									Total
	Share		General		Unappropriated
	and paid up			Sub total
			profit / (loss)
	capital	premium		reserve
	--------------------------------------				Rupees in '000'-------------------------------------------
190,920		143,190	970,000	( 71,061)			898,939	1,233,049
	-		-	-	(102,617)		(102,617)	(102,617)
	-		-		-		-			-		-
-		-		-		( 102,617)			(102,617)		(102,617)
	190,920		143,190	970,000	( 173,678)			796,322	1,130,432
	-		-	-	(665)			(665)	(665)
	-		-		-					-		-
-		-		-		( 665)			(665)		(665)
	190,920		143,190	970,000	( 174,343)			795,657	1,129,767
	-		-	-	(72,582)			(72,582)	(72,582)
	-		-		-		-			-		-
-		-		-		( 72,582)			(72,582)		(72,582)
	190,920		143,190	970,000	( 246,925)			723,075	1,057,185

The annexed notes 1 to 16 form an integral part of this condensed interim financial statements.

CHIEF EXECUTIVE OFFICER	DIRECTOR	CHIEF FINANCIAL OFFICER
		Unaudited Third Quarter Accounts 2024 08

SITARA ENERGY LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED)

FOR THE NINE MONTHS ENDED MARCH 31, 2024

1. CASH FLOWS FROM OPERATING ACTIVITIES (Loss) for the period before taxation Adjustments for :
   Depreciation of property, plant and equipment Depreciation of investment property Provision for staff retirement benefits
   (Gain) on disposal of investment property Balance written back
   Finance cost
   Operating cash flows before working capital changes

Changes in working capital (Increase) / decrease in current assets

Stores, spares and loose tools Stock of oil and lubricants Trade debts

Loans and advances Deposits and prepayments Other receivables

Tax refunds due from Government

Increase / (decrease) in current liabilities

Trade and other payables

Cash (used in) /generated from operating activities

Staff retirement benefits paid Finance cost paid

Income tax paid

Net cash (used in) / generated from operating activities

1. CASH FLOWS FROM INVESTING ACTIVITIES Additions in property, plant and equipment Proceeds from disposal of investment property

Net cash generated from investing activities

c) CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing paid

Net cash (used in) financing activities

Net (decrease) in cash and cash equivalents (a+b+c) Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

Nine month ended

March 31,

2024	2023
-------------Rupees in '000'-------------
(71,292)	(101,316)
17,151	17,700
16,008	1,582

700696

(57,467)-

(45,363) (24,033)

124,379 123,061

(15,884) 17,690

(7,883)	(22)
(8,006)	27,123
(6,466)	(76,505)
1,867	5,066
(9,077)	(1,352)
(19,424)	(570)
13,426	34,187

(9,432) 19,204

(44,995) 7,131

(60,879) 24,821

1. (611)
   (3,616) (2,427)
   (1,251) (1,121)

(66,455) 20,662

1. -
   115,962-

115,919-

(70,450) (28,125)

(70,450) (28,125)

(20,986) (7,463)

303,403 299,163

282,417 291,700

The annexed notes 1 to 16 form an integral part of this condensed interim financial statements.

CHIEF EXECUTIVE OFFICER	DIRECTOR	CHIEF FINANCIAL OFFICER
	09 Unaudited Third Quarter Accounts 2024