Quetta Electric Supply Corporation Financial Improvement

Group Term Report

Financial Accounting and Information System

Analysis of Financial Statements of

Quetta Electric Supply Company (QESCO)

Instructor : Mr. Muhammad Saleem Umer

Submitted by Yousuf Shah Khan ERP 4892

Aqueel Ahmed Awan ERP 5734

Analysis of Financial Statements of

Quetta Electric Supply Company (QESCO)

Introduction of the Company

1. Quetta Electric Supply Company Limited ("the Company") is a public limited company incorporated in Pakistan. The company was incorporated on 13 May 1998 and commenced commercial operation on 1 July 1998. Its head office is located at Zarghoon Road, Quetta. The Company took over the properties, rights, assets, obligations and liabilities of Quetta Area Electricity Board owned by Pakistan Water and Power Development Authority ("WAPDA") and other assets and liabilities. The principal activity of the company is of a public electricity distributor and supplier. Electricity is mainly purchased from National Transmission and Dispatch Company Limited ("NTDC"). However, limited generation is through own resources. The Company has distribution license from National Electric Power Regulatory Authority ("NEPRA").

Analysis of Balance Sheet (As at 30 June 2012)

2. Details are as under:-

a. Equity

(1) Authorized Share Capital- Rs 50 bn

(2) 1000 Shares issued for cash - Rs 10,000 (Rs 10 per share)

(3) Total Loss - Rs 51.44 bn (Out of which 38.7 bn loss is of last year and 12.7 bn loss of this year)

(4) Deposit for Shares - Rs 12.4 bn

(5) Revaluation of Property Plant and Equipment - Rs 37.6 bn (M/s G3 Engineering consultant and a firm of chartered accounts have revalued on 30 June 2009. In 2009 the amount of surplus was Rs 40 bn, however, by incremental depreciation of Rs 3.4 bn, existing value is Rs 37.6 bn)

b. Non Current Liabilities (Rs 34.2 Bn)

(1) Long Term Financing - Rs 25.2 bn (It comprises of Foreign Direct Loan, Foreign Relent Loan, Cash Development Loans, Loan from Power Holding (Private) Limited).

(2) Long...