Investor Presentaiton

ANNUAL REPORT PP Private Power and Infrastructure Board ANNUAL REPORT 14.2.9 Re-measurements recognized in other comprehensive income during the year: Remeasurement gain on obligation Remeasurement loss on plan assets 14.2.10 Sensitivity analysis Discount Rate + 1% Discount Rate -1% Salary growth rate +1% Salary growth rate - 1% 14.2.11 Plan assets 2020 2019 (Rupees in thousand) 25,817 (11,056) 14,761 12,021 (2,237) 9,784 328,512 297,592 389,074 351,198 388,759 350,934 328,266 297,384 Private Power and Infrastructure Board 16 17 PPIB FUND As per the requirement of Section 14 of the PPIB Act (Act No. VI of 2012), the accumulated surplus and Government fund available on the PPIB balance sheet as at 1 March 2012 were converted into PPIB Fund. The PPIB Fund is to be administered and controlled by PPIB. The PPIB Fund is to be funded through various sources as specified in Section 14 of the PPIB Act and expended for operations of PPIB for the objects and purposes as specified in Section 15 of the PPIB Act. At the end of each financial year, a balance sheet and income and expenditure account is required to be prepared and any profit / loss is to be transferred to the PPIB Fund. CONTINGENCIES AND COMMITMENTS 17.1 Contingent liabilities Certain sponsors of power projects have filed suits against Government of Pakistan (GOP)/PPIB for aggregate claims against damages of Rupees 113,457 million (2019: Rupees 113,457 million) and USD 58 million (2019: USD 58 million). Also, claims have been lodged against the performance guarantees encashed amounting USD 0.2 million (2019: USD 0.2 million). These law suits are currently being defended by PPIB. At this stage, either it is not possible to determine the expected outcome of these litigations or favorable results to PPIB are probable. All the cases are pending in the courts of law so the expected timing of outflow of resources cannot be ascertained. Bond 91.32% 0.0% Equity 1.09% 1.7% Cash and/or deposits 7.59% 98.3% 14.2.12 Expected benefit payments for the next 10 years and beyond FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 9,256 47,805 45,780 12,304 37,834 30,048 17,576 40,634 13,005 133,518 17.2 Commitments Commitments against capital expenditure 2020 2019 NOTE (Rupees in thousand) 25,671 25,671 18 INCOME FROM OPERATIONS Registration fee 95 Request for quotation fee 42 42 Project processing fee 7,990 6,940 FY 2031 onwards The average duration of the defined benefit obligation i 14.2.13 Risk associated with defined benefit plans Investment risk: The risk arises when the actual performance of the investment is lower than expectation and thus creating a shortfall in the funding objectives. Longevity risks: 1,492,690 Issuance of LOI/LOS fee 45,822 8 Years Extension in LOI/LOS fee 419,905 401,900 Proposal processing fee solicited projects 7,915 Fee for achievement of financial close 51,150 70,170 Fee for design change 23,340 Fee for change in shareholding 55,304 12,584 603,606 499,593 19 INCOME FROM FINANCIAL ASSETS The risk arises when the actual lifetime of retirees is longer than expectation. This risk is measured at the plan level over the entire retiree population. Return on bank deposits 15,754 8,810 Return on short term investments 110,468 73,566 Salary increase risk: The most common type of retirement benefit is one where the benefit is linked with final salary. The risk arises when the actual increases are higher than expectation and impacts the liability accordingly. Withdrawal risk: The risk of actual withdrawals varying with actuarial assumptions can impose a risk to the benefit obligation. The movement of the liability can go either way. Interest on loans to employees 6,651 3,439 20 20 Dividend income Exchange gain - net SALARIES AND BENEFITS Salaries and allowances Bonus 2,393 3,537 14,685 135,063 149,951 224,415 15 ACCRUED AND OTHER LIABILITIES Accrued expenses Audit fee payable Retention money Other payables Provident fund payable 15.1 Movement of provision for provident fund is as follows: Balance at the beginning Provision for the year Interest for the year 169 Payments made during the year Balance at the end 2020 2019 NOTE (Rupees in thousand) 12,551 763 14,953 1,056 710 710 7,588 2,519 15.1 72,550 48,113 94,162 67,351 48,113 25,281 21,534 22,328 24 24 2,903 2,669 (2,165) 72,550 48,113 352,570 362,337 69,719 35,074 Provision for staff gratuity 14.2.2 32,482 32,218 Provision for leave encashment PPIB Contribution towards EOBI Provident fund contribution Other benefits 14.1 16,588 16,382 1,152 3,819 9,892 10,114 13,335 19,383 495,738 479,327 21 REPAIR AND MAINTENANCE Vehicle running and maintenance Office repair, maintenance and renovation Computer repair Equipment repair Furniture repair 4,125 4,705 802 683 847 320 396 369 23 53 6,193 6,130 170

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