Professional Documents
Culture Documents
Issued, subscribed and paid up capital Reserves Special reserve Revenue reserve Unappropriated profit
576,000
576,000
17,043
34,097
8,643,534 9,236,577
6,472,171 7,082,268
178,908
159,538
110,000 288,908
92,000 251,538
CURRENT LIABILITIES
10
11,554,057
10,730,633
363,110 11,917,167
207,993 10,938,626
11
21,442,652
18,272,432
54
Note
2009
12
1,217,217
1,130,875
13
765,739
733,397
14
30,463
CURRENT ASSETS
6,630
2,827
Stock in trade
15
993,282
141,507
Trade debts
16
7,602,060
7,835,521
18
831,754
19
9,275,603 19,429,233
7,434,910 16,408,160
21,442,652 The annexed notes 1 to 37 form an integral part of these financial statements.
18,272,432
Sales Sales tax NET SALES Cost of products sold GROSS PROFIT Other operating income Operating expenses OPERATING PROFIT Finance cost Income on bank deposits and short term investments Share of profit of associated companies Other charges PROFIT BEFORE TAXATION Provision for taxation PROFIT FOR THE YEAR
20
70,724,427 (8,861,275) 61,863,152 (58,570,802) 3,292,350 843,967 (477,069) 3,659,248 (28,992) 848,852 26,510 (225,199) 4,280,419 (1,198,000) 3,082,419
21
(79,032,034) 3,759,884
22 23
24 25 13 26
27
(1,252,000) 3,594,309
28
62.40
53.51
3,082,419
3,594,309
3,082,419
2010 Rupees ('000) CASH FLOW FROM OPERATING ACTIVITIES Receipts from customers Price differential claims received from Government Payments for purchase of products and operating expenses Other charges paid Long term deposits received Income tax paid Cash flow from operating activities 84,410,682 672,210 (80,318,170) (345,807) 19,370 (1,078,883) 3,359,402
CASH FLOW FROM INVESTING ACTIVITIES Fixed capital expenditure Proceeds from sale of property, plant and equipment Long term investments in associated companies Short term investments Income received on bank deposits and short term investments Dividend received from associated companies Cash flow from investing activities (215,396) 6,584 (386,014) 902,945 9,995 318,114 (293,032) 5,663 (22,679) 330,369 804,417 24,873 849,611
CASH FLOW FROM FINANCING ACTIVITIES Dividends paid Cash used in financing activities (1,437,573) (1,437,573) (1,533,404) (1,533,404)
2,239,943
1,317,019
7,434,910
6,117,891
CASH AND CASH EQUIVALENTS AT END OF THE YEAR (Note 29) The annexed notes 1 to 37 form an integral part of these financial statements.
9,674,853
7,434,910
Share capital
Special reserve
Unappropriated profit
Total
480,000 -
53,272 (19,175)
5,535,849 3,082,419 -
96,000
(960,000) (96,000)
(960,000) -
96,000 576,000 -
34,097 (17,054)
(864,000)
(864,000)
576,000
17,043
60
The management anticipates that adoption of above standards, amendments and interpretations in future periods will have no material impact on the Company's financial statements except for additional disclosures. 4. 4.1 SIGNIFICANT ACCOUNTING POLICIES Basis of measurement These financial statements have been prepared under the historical cost convention except as otherwise disclosed in the respective accounting policies notes. 4.2 Operating segment Operating segment are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decision. The management has determined that the Company has a single reportable segment as Board of Directors views the Company's operations as one reportable segment. 4.3 Functional and presentation currency Items included in the financial statements are measured using the currency of the primary economic environment in which the Company operates. The financial statements are presented in Pakistani Rupees, which is the Company's functional currency. 4.4 Foreign currency transactions and translations Transactions in foreign currencies are converted into Rupees at the rates of exchange ruling on the date of the transaction. All assets and liabilities denominated in foreign currencies are translated into functional currency at exchange rate prevailing at the balance sheet date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary items at year-end exchange rates, are charged to income for the year. 4.5 Trade and other payables Liabilities for creditors and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for the goods and/or services received whether or not billed to the Company. 4.6 Provisions Provisions are recognised when the Company has a legal or constructive obligation as a result of past events, when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. 4.7 Dividend distribution Final dividend distributions to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividends are approved by the Company's shareholders at the Annual General Meeting, while interim dividend distributions are recognised in the period in which the dividends are declared by the Board of Directors.
61
62
63
64
1,500,000
1,500,000
50,000
50,000
526,000
526,000
576,000
576,000
65
2010 9. DEFERRED INCOME TAX LIABILITY Deferred tax liability arising due to accelerated tax depreciation Deferred tax asset arising in respect of certain provisions Rupees ('000) 142,000 (32,000) 110,000
10.
TRADE AND OTHER PAYABLES Creditors Due to related parties (unsecured) - note 10.1 Accrued liabilities Advance from customers Retention money Worker's welfare fund Unclaimed dividend 2,159 9,393,768 628,211 1,410,407 14,687 96,279 8,546 11,554,057 88,994 8,649,446 625,080 1,329,180 31,814 6,119 10,730,633
10.1
Due to related parties: National Refinery Limited Attock Refinery Limited Pakistan Oilfields Limited Attock Cement Pakistan Limited Attock Hospital (Private) Limited Attock Sahara Foundation 2,704,554 6,670,647 18,414 153 9,393,768 4,788,411 3,849,134 11,612 141 100 48 8,649,446
11.
CONTINGENCIES AND COMMITMENTS (i) Tax contingency related to proration of expenses against local and export sales for prior years, as per show cause notices of tax department. Corporate guarantees and indemnity bonds issued by the Company to the Commissioner Inland Revenue, Islamabad. Guarantees issued by bank on behalf of the Company Capital expenditure commitments Commitments for rentals of assets under operating lease agreements as at June 30, 2010 amounting to Rs 215,756 thousand (2009: Rs 176,443) payable as follows: Not later than one year Later than one year and not later than five years Later than five years 20,282 78,540 116,934 16,826 65,405 94,212
894,813
(ii)
12.
PROPERTY, PLANT AND EQUIPMENT Operating assets - note 12.1 Capital work in progress - note 12.2 1,019,742 197,475 1,217,217 939,780 191,095 1,130,875
66
Freehold land
Equipment signage
Motor vehicles
Total
-------------------------------------------------------------------------------Rupees ('000)------------------------------------------------------------------------------As at July 1, 2008 Cost Accumulated depreciation Net book value Year ended June 30, 2009 Opening net book value Additions Disposals Cost Depreciation 192,444 192,444 19,337 113,116 (1,534) 130,919 38,424 48,689 (4,044) 83,069 164,596 188,123 (27,503) 325,216 73,349 85,679 (17,495) 15,383 (2,112) (34,236) 122,680 17,117 32,591 (3,201) 46,507 6,505 1,529 (1,072) 6,962 5,085 3,751 (2,045) 6,791 15,655 18,568 (2,337) 2,305 (32) (8,999) 25,192 532,512 492,046 (19,832) 17,688 (2,144) (82,634) 939,780
192,444 192,444
Depreciation charge Closing net book value As at July 1, 2009 Cost Accumulated depreciation Net book value Year ended June 30, 2010 Opening net book value Additions Disposals Cost Depreciation
192,444 192,444
192,444 192,444
Depreciation charge Closing net book value As at June 30, 2010 Cost Accumulated depreciation Net book value Annual rate of Depreciation (%)
192,444 192,444 -
12.2
------------------------------------------------------------------Rupees ('000)---------------------------------------------------------------------As at July 1, 2008 Additions during the year Transfers during the year Balance as at June 30, 2009 As at July 1, 2009 Additions during the year Transfers during the year Balance as at June 30, 2010 294,745 158,624 (309,354) 144,015 144,015 177,005 (171,022) 149,998 68,632 93,565 (161,012) 1,185 1,185 19,753 (16,491) 4,447 26,732 34,247 (15,084) 45,895 45,895 13,683 (16,548) 43,030 390,109 286,436 (485,450) 191,095 191,095 210,441 (204,061) 197,475
67
Due to large number of dealers it is impracticable to disclose the name of each person having possession of these assets, as required under Paragraph 5 of Part 1 of the 4th Schedule to the Companies Ordinance, 1984. 12.4 Property, plant and equipment disposals: The detail of property, plant and equipment disposal, having net book value in excess of Rs 50,000 is as follows:
Cost Accumulated depreciation Book value Sale proceeds Mode of disposals Particulars of purchaser
--------------------------Rupees ('000)----------------------
Equipment - signage
Trade in by negotiation Trade in by negotiation Trade in by negotiation Trade in by negotiation Trade in by negotiation
Metaflex - Lahore Digit & Bytes-Karachi Trade Vision - Lahore Hexagone Solutions-Karachi Vi Zone - Lahore
2010 Rupees ('000) 13. LONG TERM INVESTMENTS IN ASSOCIATED COMPANIES Balance at beginning of the year Investment in associated companies Share of profit of associated companies Impairment reversal of investment in National Refinery Limited Dividend from associated companies Balance at end of the year 13.1 733,397 37,302 5,035 42,337 (9,995) 765,739
2009
Share of profit of associated companies is based on the unaudited financial statements for the nine months ended March 31, 2010 (2009: unaudited financial statements for the nine months ended March 31, 2009) since the audited financial statements for the year ended June 30, 2010 are not presently available.
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2010 Rupees ('000) 13.2 The Company's interest in associated companies is as follows: National Refinery Limited - Quoted 799,666 (2009:799,666) fully paid ordinary shares including 133,278 (2009: 133,278) bonus shares of Rs 10 each Cost Rs 321,865 thousand (2009: Rs 321,865 thousand) Quoted market value as at June 30, 2010: Rs 146,219 thousand (2009: Rs 175,943 thousand) - note 13.5 Attock Refinery Limited - Quoted 1,332,000 (2009: 1,332,000) fully paid ordinary shares of Rs 10 each including 222,000 (2009: 222,000) bonus shares of Rs 10 each Cost Rs 298,924 thousand (2009: Rs 298,924 thousand) Quoted market value as at June 30, 2010: Rs 107,306 thousand (2009: Rs 166,220 thousand) - note 13.6 Attock Information Technology Services (Private) Limited - Unquoted 450,000 (2009: 450,000) fully paid ordinary shares of Rs 10 each Cost Rs 4,500 thousand (2009: Rs 4,500 thousand) Value based on net assets as at March 31, 2010 Rs 6,892 thousand (2009: Rs 5,642 thousand) Carrying value on equity method Less: Impairment loss - National Refinery Limited All associated companies are incorporated in Pakistan. 13.3
2009
438,067
421,599
361,613
352,024
The Company's share in assets, liabilities, revenues and profit of associated companies based on the most recent available financial statements is as follows:
Assets
Liabilities
Revenues
Profits
----------------------------------Rupees ('000)----------------------------March 31, 2010 National Refinery Limited Attock Refinery Limited Attock Information Technology Services (Private) Limited 501,496 964,717 7,254 1,473,467 318,296 730,708 362 1,049,366 969,948 1,218,803 3,952 2,192,703 26,463 9,589 1,250 37,302
March 31, 2009 National Refinery Limited Attock Refinery Limited Attock Information Technology Services (Private) Limited
69
13.5
13.6
15.
STOCK IN TRADE Petroleum products - note 15.1 Packing material 990,632 2,650 993,282 139,178 2,329 141,507
15.1
It includes Company's share of pipeline stock amounting to Rs 304,729 thousand (2009: Nil) and Rs 109,970 (2009: Nil) held by Pak-Arab Pipeline Company Limited and Pak Arab Refinery Limited respectively. 2010 2009
16.
TRADE DEBTS Considered good Secured Unsecured Due from related parties (unsecured) - note 16.1
Rupees ('000)
16.1
Due from related parties Attock Gen Limited Pakistan Oilfields Limited Attock Cement Pakistan Limited Attock Refinery Limited National Refinery Limited 5,799,693 10,787 13,296 791 5,824,567 2,400,566 7,425 5,479 1,076 446 2,414,992
70
2010 Rupees ('000) 17. ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES Advances - considered good Suppliers Employees against expenses Executives Other employees
Trade deposits and short-term prepayments Trade deposits Short-term prepayments Current account balances with statutory authorities in respect of: Sales tax Federal excise duty and petroleum development levy
Accrued income on bank deposits Other receivables Price differential claim receivable from the Government Receivable from oil marketing companies under freight pool Claims receivable Due from related parties - unsecured Staff Pension Fund Staff Provident Fund Attock Information Technology Services (Private) Limited The Attock Oil Company Limited Workers' profit participation fund - note 17.1 Others
47,638 116,238 844 10,700 522 615 232 7,060 355 184,204 719,904
17.1
Workers' profit participation fund Balance at beginning of the year Amount allocated for the year - note 26 Amount paid to Fund's trustees Balance at end of the year 9,801 (262,940) 260,199 7,060 1,634 (225,199) 233,366 9,801
18.
SHORT TERM INVESTMENTS Held to maturity investment in treasury bills 831,754 831,754 -
18.1
Balance in short term investment earned interest at weighted average rate of 12.17% per annum (2009: nil).
71
2010 19. CASH AND BANK BALANCES Cash in hand Bank balances On short term deposits On interest/mark-up bearing saving accounts (includes US $ 103 thousand; 2009: US $ 146 thousand) On current accounts (includes US $ 2,288 thousand; 2009: US $ Nil) Rupees ('000) 901
814
19.1
Short term deposits of Rs 53,405 thousand (2009: Rs 45,916 thousand) were under lien with banks against letters of guarantees and letters of credits. Balances in short term deposits and saving accounts earned interest/mark-up at weighted average rate of 11.27% per annum (2009: 13.02% per annum). 2010 2009
19.2
20.
Rupees ('000) 87,192,518 7,950,153 95,142,671 (244,805) 94,897,866 64,133,192 6,633,295 70,766,487 (42,060) 70,724,427
21.
COST OF PRODUCTS SOLD Opening stock Purchase of petroleum products and packing material Excise duty Petroleum levy Closing stock 141,507 73,914,394 82,887 5,886,528 79,883,809 (993,282) 79,032,034 299,092 53,793,461 83,112 4,536,644 58,413,217 (141,507) 58,570,802
22.
OTHER OPERATING INCOME Commission and handling income Mark-up on late payments Exchange gain Tender and joining fee Gain on sale of property, plant and equipment Hospitality income Other income 906,595 305,431 70,311 4,839 4,828 3,784 13,116 1,308,904 826,072 5,449 3,519 8,927 843,967
72
2010 23. OPERATING EXPENSES Salaries and benefits Rent, taxes and other fees Travelling and staff transport Repairs and maintenance Donation - note 23.1 Advertising and publicity Printing and stationery Electricity, gas and water Insurance Communication Legal and professional charges Subscription and fees Transportation Auditor's remuneration - note 23.2 Exchange loss Depreciation - note 12.1 Others Rupees ('000) 180,169 40,345 16,841 39,342 5,143 9,072 9,898 16,248 6,108 5,521 949 4,884 2,558 127,298 16,484 480,860
144,930 32,522 15,576 27,106 2,500 9,437 7,175 8,281 7,703 5,343 7,900 1,711 3,356 1,400 104,692 82,634 14,803 477,069
23.1
No director or his spouse had any interest in the donation made by the Company. 2010 2009
23.2
Auditor's remuneration Annual audit Review of half yearly financial statements, audit of staff funds and special certifications Tax services Out of pocket expenses
Rupees ('000) 1,000 353 1,036 169 2,558 750 443 110 97 1,400
24.
FINANCE COST Bank charges Late payment charges 27,276 292,589 319,865 28,992 28,992
25.
INCOME ON BANK DEPOSITS AND SHORT TERM INVESTMENTS Income on bank deposits Income from short term investments 934,246 46,490 980,736 840,761 8,091 848,852
73
26.
OTHER CHARGES Workers' profit participation fund Worker's welfare fund - for the year Worker's welfare fund - for prior year
225,199 225,199
27.
PROVISION FOR TAXATION Current Deferred 1,234,000 18,000 1,252,000 1,120,000 78,000 1,198,000
27.1
Reconciliation of tax charge for the year % Applicable tax rate Tax effect of income taxed under final tax regime Tax effect of income exempt from tax Tax effect of share of profit of associated companies taxed on the basis of dividend income Others Average effective tax rate charged to income 35.00 (8.91) (0.01) (0.29) 0.04 25.83 % 35.00 (6.89) (0.07) (0.16) 0.11 27.99
28.
EARNINGS PER SHARE Profit for the year (Rupees in thousand) Weighted average number of ordinary shares in issue during the year (in thousand) Basic and diluted earnings per share (Rupees) 3,594,309 3,082,419
29.
7,434,910 7,434,910
74
Total
---------------------------Rupees ('000)----------------------
Other financial Total liabilities ---------------Rupees ('000)---------Financial Liabilities Maturity up to one year Trade and other payables Maturity after one year Long term deposits
10,143,650
10,143,650
178,908 10,322,558
Held to Total maturity investments ---------------------------Rupees ('000)---------------------June 30, 2009 Financial Assets Maturity up to one year Trade debts Advance, deposits and other receivables Cash and bank balances
6,571,287 6,571,287
Other financial Total liabilities ---------------Rupees ('000)---------Financial Liabilities Maturity up to one year Trade and other payables Maturity after one year Long term deposits
9,401,453
9,401,453
159,538 9,560,991
159,538 9,560,991
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Trade debts Counterparties with external credit rating Counterparties without external credit rating Secured against letters of credit Due from related parties Others
A1+
791
1,522
Advances, deposits and other receivables Counterparties without external credit rating Short term investments Counterparties without external credit rating Bank balances A1+ A1 A2
232,743
104,075
831,754
7,434,073 23 7,434,096
30.3
30.3.1 Financial risk factors The Companys activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including currency risk, interest rate risk and price risk). The Companys overall risk management policy focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Companys financial performance. (a) Credit risk Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company's credit risk is primarily attributable to its trade debts and balances at banks. Credit sales are primarily to related parties. Receivable from WAPDA is secured against letter of credit. The credit risk on liquid funds is limited because counter parties are banks with reasonably high credit ratings.
76
Rupees ('000) Up to 3 months 3 to 6 months 6 to 9 months Above 9 months 3,635,243 1,803,712 908,071 6,347,026 2,866,943 121,063 3,320,036 6,432 6,314,474
(b)
Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Company manages liquidity risk by maintaining sufficient cash and cash equivalents. The table below analyses the Companys financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the maturity date. The amounts disclosed in the table are undiscounted cash flows. Less than 1 Above 1 Year year ---------------Rupees ('000)---------At June 30, 2010 Long term deposits Trade and other payables At June 30, 2009 Long term deposits Trade and other payables 9,401,453 159,538 10,143,650 178,908 -
(c) (i)
Market risk Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Currency risk arises mainly from future commercial transactions or receivables and payables that exist due to transactions in foreign currencies. Financial assets include Rs 200,427 thousand (2009: Rs 11,834 thousand) which were subject to currency risk. A 10% strengthening of the functional currency against USD at June 30 would have decreased profit and loss by Rs 20,043 thousand (2009: Rs 1,213 thousand). A 10% weakening of the functional currency against USD at June 30 would have had the equal but opposite effect of these amounts. The analysis assumes that all other variables remain constant.
77
78
2,817,930 -
19,467
770 16,597
5,115 167,103
3,824 153,094
3,314
2,254
810
976
79
32.2
Revenues of Rs 11,199,932 thousand (2009: Rs 2,817,930 thousand) are derived from a single external customer. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES Chief Executive Directors Executives
33.
2010
2009
2010
2009
2010
2009
------------------------------------------------Rupees ('000)-------------------------------------------Managerial remuneration Bonus Company's contribution to provident and pension funds Housing and utilities Other perquisites and benefits Leave passage 6,644 7,274 1,617 2,771 1,169 650 20,125 1 4,924 5,159 1,493 2,266 586 491 14,919 1 1,980 2,223 256 785 1,340 193 6,777 1 1,691 1,631 555 742 688 128 5,435 1 15,658 7,656 1,937 6,656 2,915 1,067 35,889 12 12,652 3,924 2,839 5,333 251 1,055 26,054 10
The above includes amounts charged by an associated company for share of chief executive's and one director's remuneration as approved by the Board of Directors of the Company. Executives were also provided with use of Company maintained cars and medical facilities as per Company policy. In addition, four non-executive directors of the Company were paid meeting fee aggregating Rs 1,974 thousand (2009: nil). CORRESPONDING FIGURES Following changes have been made during the year in corresponding figures to conform to current year's presentation: Rupees '000 2,077 28,992
33.2
34.
(i) Receivable from staff pension fund reclassified from 'Trade and Other Payables' to 'Advances, Deposits, Prepayments and Other Receivables' (ii) Bank charges reclassified from 'Operating expenses' to 'Finance cost'
80
35.
CAPACITY AND PRODUCTION Considering the nature of the Company's business, the information regarding capacity has no relevance.
36.
NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE The Board of Directors in its meeting held on September 29, 2010 has proposed a final dividend for the year ended June 30, 2010 @ Rs 20 per share, amounting to Rs 1,152,000 thousand and bonus issue @ 20% i.e. one share for every five shares held for approval of the members in the Annual General Meeting to be held on October 29, 2010.
37.
DATE OF AUTHORISATION These financial statements were authorised for issue by the Board of Directors of the Company on September 29, 2010.
81
Form of Proxy
15th Annual General Meeting
I/We of holder of being a member of Attock Petroleum Limited and ordinary Shares as per Share Register Folio No.
For beneficial owners as per CDC List CDC Participant I.D. No. CNIC No. hereby appoint or failing him/her or Passport No. of of
as my/our proxy to vote and act for me/our behalf at the 15th Annual General Meeting of the Company to be held on October 29, 2010 at 10:00 am at Islamabad Club, Islamabad and at any adjournment thereof. Please affix rupees five revenue stamp (Signatures should agree with the specimen signature registered with the Company)
2.
Name: Address: Name: Address:
CNIC/Passport:
CNIC/Passport:
Signature:
Signature:
Note: Proxies, in order to be effective, must be received at the Registered Office of the Company at 6, Faisal Avenue, F-7/1, Islamabad not less than 48 hours before the meeting. CDC Shareholders and their proxies are each requested to attach an attested photocopy of their Computerised National Identity Card or Passport with the proxy form before submission to the Company.