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Financial Highlights Our Vision Our Mission Business Review Core Values Corporate Strategy Quality Policy Statement Code of Conduct Environment, Health & Safety Policy Chairman’s Review Governance Board of Directors Board Committees and Corporate Information 21 Board & Management Committees and their Terms of Reference Awards and Achievements Calendar of Major Events Directors’ Report Pattern of Shareholding Review Report on Statement of Compliance with the Code of Corporate Governance 46 22 24 25 26 42 20 6 7 9 10 15 18 2 4 5 Statement of Compliance with the Code of Corporate Governance Financial Analysis Six Years at a Glance Vertical Analysis Horizontal Analysis Statement of Value Added Financial Statements Auditor’s Report to the Members Balance Sheet Profit and Loss Account Statement of Comprehensive Income Cash Flow Statement Statement of Changes in Equity Notes to and forming part of the Financial Statements 66 Annual General Meeting Notice of Annual General Meeting 96 59 60 62 63 64 65 50 54 56 58 47
Glossary 99 Proxy Form
Attock Petroleum Limited
Annual Report 2012
Net Sales Revenue Gross Profit Operating Profit
Attock Petroleum Limited
Annual Report 2012
Profit After Tax Earnings Per Share Cash Dividend Attock Petroleum Limited Annual Report 2012 3 .
offering Value added quality and environment friendly products and services to its customers in Pakistan and beyond. customer focused.Our Vision To become a world class. Oil Marketing Company. Liberty Filling Station. fully integrated. Lahore . professionally managed.
Our Mission To continuously provide quality and environment friendly petroleum products and related services to industrial. and exceeding their expectations through reliability. . commercial and retail consumers. end user gratification. employees’ motivation and shareholders value. We are committed to benefiting the community and ensuring the creation of a safe. economy and quality of products and services. responsible and innovative environment geared to client satisfaction.
actively engaging in activities and initiatives to meet this objective. 6 Attock Petroleum Limited Annual Report 2012 . Maximum Stakeholder Return Through our streamlined business processes and commitment to total quality management we seek to ensure maximum company performance and rewards for shareholders and stakeholders alike. demanding both personal and professional dedication towards the realization of these values and principles. At APL we foster an environment of solid teamwork and professionalism to ensure that our employees engage in both personal and professional development. Environment Consciousness We believe that it is our responsibility to safeguard our natural resources for future generations and actively engage in environment friendly practices. Commitment and Cooperation Two core fundamentals for the success of any business are complete employee commitment and cooperation. policies and management techniques.Core Values Ethical Principles and Moral Values We promote a commitment to the highest moral values and ethical principles. Corporate Social Citizenship We strongly believe in the promotion of societal well-being and awareness within ones community.
people and the environment. social and ecological responsibility. Our objective is to successfully deliver premium quality products and services. implementation of lean production methods and a commitment to Total Quality and Environment Management. Beyond the technical excellence of our products. implementation and execution. Business Review Governance Financial Analysis Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 7 . we intend to set an example in all dimensions of our entrepreneurial activities.Corporate Strategy To enable APL to attain new heights of success through investment in human capital. which means not only economic success but also conscientious interaction with our employees. with the help of Almighty Allah. which will translate into maximum customer satisfaction. We see ourselves committed to the self-defined models of economic. we plan. to further expand our existing retail network and penetrate untapped markets with pro-active measures and effective planning.
Quality Assurance Unit to ensure delivery of premium quality products to customers Quality Van at Rawalpindi Bulk Oil Terminal (RBT) 8 Attock Petroleum Limited Annual Report 2012 .
and stakeholders that the requirements for quality are being fulfilled and maintained and that quality improvement is continuously taking place. APL management has set the following quality objectives: 1 The primary objective of the Quality Management System is to ensure conformance to product specifications of all goods shipped to customers. operations and quality management system. Business Review Governance Financial Analysis 4 To develop measurement techniques to gauge performance for improving effectiveness of our services. Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 9 . our employees. 5 Fulfill all quality system requirements stated in our Quality Manual.Quality Policy Statement To further enhance its commitment towards Quality. With this vision we want to create a culture of continuous quality improvement at APL. to develop a way of working to meet and exceed the expectations of customers. clients. 3 Provide confidence to management. including the requirements of ISO 9001:2000. 2 Clearly identify and understand our internal and external customers stated and hidden needs. 6 To be a trustworthy and leading oil marketing organization for providing consistent high quality products and services in the market.
This statement in general is in accordance with Company goals and principles that must be interpreted and applied within the framework of laws and customs in which the Company operates. accurate. Employees or directors who have complaints or concerns regarding accounting. is responsible for ensuring compliance with applicable laws. Employees must notify their direct supervisor of any actual or potential conflict of interest situation and obtain a written ruling as to their individual case. Respect. internal accounting control or auditing matters are expected to report such complaints or concerns in accordance with the procedures established by the Company’s Board of Directors. profession or position is unethical and may also be a violation of law. or otherwise submits to. Honesty and Integrity Directors and employees are expected to exercise honesty. Rules and Regulations The Company is committed to comply. In case of directors. rules and regulations of state or local jurisdiction in which the Company conducts business. Prevent Conflict of Interest Directors and employees. and in all other public communications made by the Company. with all applicable laws. any governmental authorities in the applicable jurisdiction. This code will be obligatory for each director and employee to adhere to. and understandable disclosure. Every director and employee. The use of such non-public or “inside” information about the Company other than in the normal performance of one’s work. Inside Information Directors and employees may become aware of information about Company that has not been made public. Trading in Company Shares Trading by directors and employees in the Company shares is possible only in accordance with the more detailed guidelines issued from time to time by corporate management in accordance with applicable laws. Directors and employees becoming aware 3.Code of Conduct Attock Petroleum Limited has committed itself to conduct its business in an honest. 5. as they are the ones who are at the forefront of Company’s affairs with the outside world. The Company wants to be seen as a role model in the community by its conduct and business practices. Every member of the Company has to be familiar with his / her obligations in this regard and has to conduct him / her accordingly. in compliance with all applicable laws and regulations. furnishes to 10 Attock Petroleum Limited Annual Report 2012 . Compliance with Laws. and will be disclosed to the shareholders. objectivity and due diligence in the performance of their duties and responsibilities. Full and Fair Disclosure Directors and employees are expected to help the Company in making full. All this depends on the Company’s personnel. They are also directed to perform their work with due professionalism. must avoid conflict of interest situations between their direct or indirect (including members of immediate family) personal interests and the interest of the Company. irrespective of their function. grade or standing. 1. financial reporting. timely. 2. ethical and legal manner. no matter what position he or she holds. such ruling can only be given by the Board. 6. in all reports and documents that the Company files with. and take all reasonable actions for compliance. fair. 4.
acquisitions. who will deliberate on the need for public disclosure. or position for personal gains. financial details released to the media should never exceed the level of detail provided in quarterly and annual reports or official statements issued at the presentation of these figures. Attock Petroleum Limited Annual Report 2012 11 .Business Review of information which might be price sensitive with respect to the Company’s shares have to make sure that such information is treated strictly confidentially and not disclosed to any colleagues or to third parties other than on a strict need-to-know basis. Corporate Opportunities Directors and Employees are expected not to: a) take personal use of opportunities that are discovered through the use of Company property. joint ventures and major investments. As regards topics such as financial performance. Employees should not make statements that might make third parties capable of “insider trading” on the stock market. use Company property. information or position. Only the Management will decide on such disclosure. divestments. In case of doubt. Potentially price sensitive information pertaining to shares must be brought promptly to the attention of the management. information. seek contact with the CFO. Governance 7. Annual General Meeting b) Directors and employees are expected to put aside their personal interests in favor of the Company interests. Financial Statements 8. no information should be released to the press without prior consultation with the Management. Media Relations and Disclosures Financial Analysis To protect commercially sensitive information.
or personal behavior not conducive to a productive work climate. Protect Health. 12. Record Keeping The Company is committed to compliance with all applicable laws and regulations that require the Company to maintain proper records and accounts which accurately and fairly reflect the Company’s transactions. However. The Company also encourages constructive reasonable criticism by the employees of the management and its policies. possessing trade secret information that was obtained without the owner’s consent. Equal Employment Opportunity The Company believes in providing equal opportunity to everyone around. and other employees. or any other unfair practice. age. national origin. Records must always be retained or destroyed according to the Company’s record retention policies. No harassment or discrimination of any kind will be tolerated. Any commission payment should be justified by a clear and traceable service rendered to the Company. The Company is committed to selling its products and services honestly and will not pursue any activity that requires to act unlawfully or in violation of this Code. In response the Company expects consummate employee allegiance to the Company and due diligence in his job. The remuneration of agents. timely and accurately on the Company’s books. free from harassment. healthy and open work environment. Each director and employee is expected to deal fairly with Company’s customers. artificial or misleading transactions or entries shall be reflected or made in the books or records of the Company for any reason. kickbacks. No one is to take unfair advantage of anyone through manipulation. The Company laws in this regard have to be complied with and no discrimination upon race. Such an atmosphere can only be encouraged in an environment free from any prospects of retaliation due to the expression of honest opinion. suppliers. No false. competitors. Bribes. distributors and commissioners cannot exceed normal business rates and practices. intimidation. 11. 13. or inducing such disclosures by past or present employees of other companies is prohibited.Code of Conduct 9. or disability is acceptable. It is essential that all transactions be recorded and described truthfully. gratuity or hospitality may be offered if such act is customary and is not illegal under applicable law. The Company is highly committed to providing its employees and directors with a safe. Work Environment All employees are to be treated with respect. religion. 10. Competition and Fair Dealing The Company seeks to outperform its competition fairly and honestly. gender. Safety and Security The Company intends to provide each director and employee with a safe work environment and comply with all applicable health and safety laws. All such expenses should be reported and recorded in the Company’s books of account. abuse of privileged information. Stealing proprietary information. Employees and directors should avoid violence and threatening behavior and report to work in fair condition to perform their duties. and other improper payments shall not be made on behalf of the Company in connection with any of its businesses. directors and employees need to adhere standards with regard to child labor and forced labor. tip. 12 Attock Petroleum Limited Annual Report 2012 .
both during and after their employment. designs. carelessness and waste have a direct and negative impact on the Company’s profitability. Protection of Privacy and Confidentiality All directors and employees.Business Review 14. Theft. its customers. must respect the exclusivity and trade secrets of the Company. vendors or anyone doing or seeking to do business with the Company. data. However. Financial Statements Annual General Meeting 16. Governance Financial Analysis 15. Gift Receiving Directors and employees will not accept gifts or favors from existing or potential customers. Corporate funds and assets will be utilized solely for lawful and proper purposes in line with the Company’s objectives. All the Company’s assets (processes. etc) are considered as certified information of the Company. suppliers and other colleagues and may not disclose any such information unless the individual or firm owning the information properly authorizes the release or disclosure. The use. All the Company assets should be used for legitimate business purposes only. Any disclosure will be considered as grounds. directly or indirectly. not only for termination of services/employment. but also for criminal prosecution. this does not preclude giving or Attock Petroleum Limited Annual Report 2012 13 . legal action or other legal remedies available during or after employment with the Company to recover the damages and losses sustained. of Company funds for political contributions to any organization or to any candidate for public office is strictly prohibited. Protection and Proper use of Company Assets / Data Each director and employee is expected to be the guardian of the Company’s assets and should ensure its efficient use.
Information Technology facilities which have been provided to employees should never be used for personal gain or profit. The Company encourages the traveler and his/her supervisor to exercise good judgment when determining whether travel to a high-risk area is necessary and is for the Company’s business purposes. 14 Attock Petroleum Limited Annual Report 2012 . should be accurate. 18. Communication All communications. Disclosure or dissemination of confidential or proprietary information regarding the Company. Internet use / Information Technology As a general rule. It is not permitted to combine business trips with a vacation or to take along spouse. provided that no obligation could be. and termination of employment. The Company strongly believes in personnel development and employeetraining programs are arranged regularly. or its customers outside the official communication structures is strictly prohibited. Compliance with Business Travel Policies The safety of employees while on a business trip is of vital importance to the Company. relative or friend without the prior written authorization from Management. 21. confidential. Compliance It is the responsibility of each director and employee to comply with this code. and remain the property of the Company. whether internal or external. Failure to do so will result in appropriate disciplinary action. suspension. including possible warning issuance. 17. The Company strongly believes in a clean desk policy. should not be misused during work time.Code of Conduct receiving gifts or entertainment which are customary and proper in the circumstances. and expects its employees to adhere to it not only for neatness but also security purposes. Employee Retention High quality employee’s attraction and retention is very important. or be perceived to be. 19. forthright and where ever required. legal action and reimbursement to the Company for any losses or damages resulting from such violation. The Company will offer competitive packages to the deserving candidates. Any person meeting with difficulties in the application of this code should refer to the management. its products. expected in connection with the gifts or entertainment. The Company is committed to conduct business in an open and honest manner and provide open communication channels that encourage candid dialogue relative to employee concerns. all Information Technology related resources and facilities are provided only for internal use and/or business-related matters. 20. Compliance also includes the responsibility to promptly report any apparent violation of the provisions of this code.
In order to achieve this objective… Business Review Governance We embrace a comprehensive policy on the Environment. 5. 6. experienced and competent to perform his or her duties. objectives and targets to our Retail Outlets. Distributors. 2. Financial Analysis Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 15 . Health & Safety Policy Attock Petroleum Limited’s overriding objective is to ensure that none of our activities harm our employees. and seen to be performed safely. 3. the public or the environment. We will apply our EHS policy. 7. Dealers and Contractors. Safety and Health that includes:1. We will ensure that all our operations are performed. We consider that none of our activities are more important than health and safety of any individual or protection of environment. 4. We will encourage a pro-active safety culture and ensure that each employee is trained.Environment. standards. We will strive to continually improve performances in all areas of EHS performance and priorities on the basis of risk. As a minimum we will comply with all relevant legislation and any other requirements to which we subscribe. We will strive to remove all causes of accidents and events and to minimize the consequences of such if they occur.
F-11.Model Filling Station. Islamabad 16 Attock Petroleum Limited Annual Report 2012 .
Attock Petroleum Limited Annual Report 2012 17 Business Review Governance Financial Analysis Financial Statements Annual General Meeting .
We believe corporate social responsibility and sustainability are integrated business platforms that build long-term shareholders value.437 million M. 109. This is reflection of our commitment and focus on operational excellence. 4. I would also like to place on record my appreciation of the contributions made by the outgoing Board and Board Committees. These economic conditions forced annual oil industry trade for petroleum products to decline by 4% from 20.61 (2010-11: Rs.1% from 7.843 million (2010-11: Rs. Our management and key decision makers starting with our CEO under the guidance of the Board maintained the focus. which continued to suffer from the consequences of a number of factors like increased prices of petroleum products. risk management and principles of good corporate governance. Based on the foregoing analysis. improve environmental performance and strengthen our employees’ relationships with our customers. power and gas shortages and unstable law and order situation. We increased our cash flows from operations. 18 Attock Petroleum Limited Annual Report 2012 . suppliers and communities. 59. Ban on export of petroleum products during the year not only adversely impacted the profitability of the Company and the industry as a whole but also deprived the Country of the valuable foreign exchange.334 million M.395 million) and profit after tax of Rs. drive operational efficiency. Despite all the challenges. the commitment and the determination. provided attractive return to the shareholders and maintained a strong balance sheet.Chairman’s Review It gives me immense pleasure to welcome you to the 17th Annual General Meeting of the Company and to present Company’s annual report and audited financial statements for the year ended June 30. Tons to 19.257 million) translated into earnings per share of Rs. 61. These platforms foster innovation. 2012. 4. I welcome the newly elected Board and recently appointed various Board Committees and hope that with their in-depth knowledge and vast relevant experience. Company will not only continue its momentum and pace of growth but will also lead to the new horizons. financial discipline. Your Company performed well against tough fiscal challenges and unstable economy of the Country.9% of last year due to its targeted and pro-active marketing strategy. your Company recorded sales revenue of Rs. un-resolved problem of mounting circular debt.58). The Company’s fundamentals remained strong. your Company managed to increase its overall market share to 9.120 million (2010-11: Rs. Tons during the year under review. 152.
Business Review From a strategic standpoint. We will be better positioned to compete based on our strengths and better equipped to respond to the evolving needs of our consumers. I firmly believe that APL is on the right track to translate its achievements into equally outstanding performance for its stakeholders. We believe that directions of the Board with strong vision will position your Company to deliver consistent above-average returns over the long term. As we move forward. Oil and Gas Regulatory Authority and other Government organizations and business partners. 2012 Annual General Meeting Attock Petroleum Limited Annual Report 2012 19 . we will be critically focused on consumerdriven innovation in services and products as the primary driver of organic growth. Ghaith R. I wish to place on record my appreciation and gratitude for the support received from Ministry of Petroleum & Natural Resources. I want to assure you that we are committed to making our investors’ interests our foremost priority. Pharaon Chairman Dubai. in the years to come. UAE. driven by sustainable profitable growth. Governance Financial Analysis Financial Statements Dr. In conclusion. you will see us creating a Company with a broader and stronger agenda for growth. September 15.
Malik Chief Executive Officer & Alternate Director to Dr. Ghaith R. Rehmat Ullah Bardaie Company Secretary & Alternate Director to Mr.Board of Directors Mr. Abdus Sattar Independent Non Executive Director Mr. Pharaon Non Executive Director Mr. Wael G. Pharaon Executive Director Mr. Pharaon Non Executive Director Mr. Iqbal A. Pharaon Executive Director 20 Attock Petroleum Limited Annual Report 2012 . Pharaon Chairman Non Executive Director Mr. Khwaja Alternate Director to Mr. M. Babar Bashir Nawaz Non Executive Director Mr. Laith G. Ghaith R. Wael G. Adil Khattak Non Executive Director Mr. Shuaib A. Laith G. Pharaon Non Executive Director Dr.
Financial Statements Legal Advisor Ali Sibtain Fazli Associates Mall Mansion. Khwaja Business Review Bankers Allied Bank Limited Faysal Bank Limited Habib Bank Limited JS Bank Limited National Bank of Pakistan Standard Chartered Bank The Bank of Khyber The Bank of Punjab The Bank of Tokyo Mitsubishi United Bank Limited Governance Human Resource and Remuneration Committee Mr. Iqbal A.com.com.apl. F. Ferguson & Co. Pakistan. Babar Bashir Nawaz Mr. Morgah Rawalpindi. 30-The Mall.pk Website: www. State Life Building-3 Dr. Lahore.Board Committees and Corporate Information Audit Committee Mr. Abdus Sattar Chairman Mr. Adil Khattak Mr. Share Registrar THK Associates (Pvt. Ziauddin Ahmed Road. Tel: +92-51-5127250-55 Fax: +92-51-5127272 Email: contact@apl. Malik Correspondence Address Attock House.pk Financial Analysis Auditors A.) Limited Ground Floor. Chartered Accountants Registered Office Attock House. Shuaib A. Babar Bashir Nawaz Chairman Mr. Karachi. M. Tel: +92-21-111-000-322 Fax: +92-21-35655595 Annual General Meeting Attock Petroleum Limited Annual Report 2012 21 . Pakistan. Morgah Rawalpindi.
The Audit Committee reviews the periodical statement of the Company before their respective presentation to the Board and ensures implementation of relevant controls for the integrity of the information. investigating any violations thereof and ensuring coordination between internal and external auditors are also the main responsibilities of the Audit Committee. Besides this. It assists the Board in discharge of its 22 Attock Petroleum Limited Annual Report 2012 . monitoring compliance with the best practices of corporate governance. The Committee recommends to the Board of Directors the appointment of external auditors and discusses major observations with the external auditors arising from interim review and final audit. the system of internal control. Committee also reviews the management letter issued by the external auditors and management’s response thereto. The following Board Committees have been formed to assist the Board in fulfilling its responsibilities. Keeping in view the requirements of new Code of Corporate Governance issued on 10th April. 2012 the Board has revised the terms of reference of Audit Committee and established Human Resource and Remuneration Committee.Board & Management Committees and their Terms of Reference Board Committees The management is committed to follow the principles of good Corporate Governance and being a responsible corporate entity it believes in transparency of system for effective monitoring and to enhance governance process. management of risk and the internal and external audit processes. fiduciary responsibilities. The Audit Committee ensures that the Company has a sound system of internal financial and operational controls. In doing so. The Committee also goes through the legal matters which may significantly impact the financial statements and ensure compliance with relevant statutory requirements. Audit Committee The Audit Committee reviews the financial and internal reporting processes.
Pricing Committee Reviews and recommends the pricing of deregulated products on regular intervals. formulating the annual budget and forecasts and reviewing analysis of actual performance with those budgeted/forecasted.Business Review Human Resource and Remuneration Committee The Board has established Human Resource and Remuneration Committee which is responsible for recommending human resource management policies. The Committee also keeps an eye on the developments and trends in the industry to assist the Board in planning for future capital intensive investments and growth of the Company. they meet regularly to coordinate the activities. The Committee is also responsible for recommending the selection. Safety And Technical Committee Reviews and monitors. evaluation. Budget Committee The Committee comprises of three directors and their responsibility is to assist the Board in Financial Analysis Management Committees Executive Committee Consist of all departmental heads and chaired by the CEO. Budget Committee Reviews and recommends the annual budget proposals and discusses deviations with the departmental heads. health and environment matters for safe operations and better environment and matters relating to technological problems and operational risks affecting the business. compensation (including retirement benefits) of key management personnel and for consideration and approval on recommendations of Chief Executive Officer on such matters for key management positions who report directly to Chief Executive Officer. Retail Outlet Development Committee Responsible for recommending proposals for setting up retail outlets and reviewing progress. the safety. Financial Statements Information Technology Committee Responsible for automation of process and system in line with latest technology and developments. issuance of new shares and related legal and regulatory requirements. accomplishments and other pertinent issues. Annual General Meeting Attock Petroleum Limited Annual Report 2012 23 . Governance Share Transfer Committee The Committee consists of three directors and is responsible for dealing with matters relating to the shares of the Company like transfers.
24 Attock Petroleum Limited Annual Report 2012 .2009 Amongst Top Twenty Five Companies Organised by Karachi Stock Exchange.Awards and Achievements Jointly organised by the Institute of Chartered Accountants of Pakistan and the Institute of Cost and Management Accountants of Pakistan. Best Corporate Report Award-2009 2nd Position in Fuel and Energy Sector Top Companies Award.
2012: March 30. 2012: Installed floating screen in PMG tank at Machike Bulk Oil Terminal to minimize the product losses and to save environment APL ’s market share in the bunker segment for Furnace Fuel Oil reached more than 61%. 2012: Applied Cathodic Protection system for pigable pipeline from PARCO to APL Terminal at Machike Entered into Agreement with vendor for Construction of Calibration Gantries at Machike & Karachi Bulk Oil Terminals Business Review Governance January 25. 2012: June 16. 2012: April 26. 2012: May 15.Calendar of Major Events July 25. better blending plant for production of higher quality lubricants Highest number of outlets commissioned since 1999. 2012: May 15. 2011: January 04. Tons February 28. 2012: Attock Petroleum Limited Annual Report 2012 25 . 2012: March 31. a total of 44 outlets were commissioned Annual General Meeting June 30. 2012: Secured HSD and PMG supplies contract of Pakistan Air Force for the financial year 2012-13 March 15. 2012: April 06. Tons storage capacity at Rawalpindi Bulk Oil Terminal Entered into agreement with vendor for installation of Smart Signage (LED Lit) at retail outlets thereby decreasing the electricity consumption Upgraded flow metering system thereby increasing operational efficiency at Rawalpindi Bulk Oil Terminal Entered into blending agreement with a new. 2012: April 14.000 M. 2012: April 30. making it number one (01) Lahore Flagship outlet commissioned – Liberty Filling Station Commenced HSD supplies to the fisheries segment Commissioning of First Multi-Fuel retail outlet in Joint Venture with Askari Welfare Trust Commissioned 350th retail outlet of the Company Financial Analysis Financial Statements Secured Jet Fuel (JP-1) supplies contract of Pakistan Army for financial year 2012-13 Commissioned three tanks of total 11. 2012: Commissioned two tanks at Machike Bulk Oil Terminal enhancing storage capacity by 10. 2012: May 30.000 M.
which is half of the level of Pakistan’s long-term trend potential and is lower than what would be required for sustained increases in employment and income and a reduction in poverty. Light Diesel Oil and Lubricants. Recession has only compounded problems and made the situation unstable for investors around The year under review was quite challenging for the Country too and it has also been not far from the predicament and therefore faced high unemployment rate. The decrease was due to restriction on export of petroleum products to Afghanistan and less 26 Attock Petroleum Limited Annual Report 2012 . Tons which is 4% less than last year. Premier Motor Gasoline (PMG). High Speed Diesel (HSD). serious energy constraints. The Oil industry operates under the regulations framed by the Government of Pakistan (GoP) through Ministry of Petroleum and Natural Resources (MP&NR) and Oil and Gas Regulatory Authority (OGRA). Gross Domestic Product (GDP) growth has been stuck at a level.4 million M. the world.Directors’ Report The Board of Directors of Attock Petroleum Limited (APL) is pleased to present the annual report on the performance and progress of the Company together with the audited financial statements of the Company for the year ended June 30. high security risks. Domestic MARKET AND INDUSTRY REVIEW Global Economy around the world has been under pressure during the year under review. The recovery is gaining strength but unfortunately several geo-political and macro-economic risks continue to strike the emerging market economies. Industries have also been facing quite turbulence in the context of ever rising macro-economic risks. Major products marketed are Furnace Oil (FO). OGRA regulates prices of some of the petroleum products whereas prices of other products are deregulated and announced by the Company as per its own internal mechanism. Notwithstanding above Pakistan has been able to withstand the pressures and improve its performance in some key areas and the economy is now showing signs of modest recovery. NATURE OF BUSINESS APL commenced its operations in 1998 as an Oil Marketing Company (OMC) and is engaged in the downstream petroleum sector’s business with main objective to distribute petroleum products in the market. low investment and severe economic conditions. Industry Overview Total industry trade of oil products was 19. Asphalt. Policymakers are struggling to find ways to manage the present economic challenges while preparing their economies to perform well in an increasingly complex global landscape. 2012. Kerosene Oil.
2012 have been summarized below: Rs.948 Appropriations during the year: Transfer to special reserve by associated companies 27 Final cash dividend for the year 2010-11 @ 300% (Rs. 10/.246 9. 61. are taken to implement the change management keeping in view long term perspective. 17. MANAGEMENTS OBJECTIVES AND STRATEGIES The ultimate objectives of the Company’s management are to come upto the expectations of all the stakeholders and adopt a balanced approach in this regard. On the other hand.395 million).527 Profit after taxation 4. the Company reported net sales revenue of Rs. in Million Profit before taxation 5.843 million. representing 40% increase over last year (2010-11: Rs. decisions Financial Analysis Financial Statements Financial results and appropriations for the year ended June 30. The priorities for action are set and reviewed at regular intervals to grab the available opportunities and minimise the risks and threats arising due to change in the internal and external environment. 59. sale of PMG has shown sharp increase due to excessive Compressed Natural Gas (CNG) load shedding and use in generators. the Company earned profit after tax of Rs.637 Subsequent Effects: Final cash dividend for the year 2011-12 @ 325% (Rs. FINANCIAL PERFORMANCE For the year 2011-12. 2011 10. However. 30/per share of Rs.50 per share of Rs. stiff competition and ban on export of petroleum products to Afghanistan during the year led to the decrease in the profitability of the Company. 152.each) 2. 109.210 3.each) 1. 4.828 Profit available for appropriation 14.Price Trend Analysis Business Review Governance consumption of fuel by Power sector due to its inability to settle the dues on time.120 million (2010-11: Rs. price decrease in last quarter of the year. 32.311 Balance as at June 30. This was result of higher international oil prices in first three quarters of the year and increase in volume sold.50 per share of Rs.120 Add: un-appropriated profit as at July 1.61 (2010-11: Rs.58). Accordingly. 10/. 2012 11.074 Interim cash dividend for the year 2011-12 @ 175% (Rs. which is also reflected precisely in the corporate strategy and the core values.647 Less: Provision for taxation 1.391 Attock Petroleum Limited Annual Report 2012 27 Annual General Meeting .each) 2. Consequently. 4.257 million) and earnings per share of Rs. 10/.
The aggressive approach of the sales and marketing department enabled your Company to increase its aggregate market share from 7. 18. APL due to its aggressive and exceptional marketing strategies entailing expansion of network has successfully managed to increase its sales volume for PMG and HSD which increased by 34% and 36% respectively.0% to 6. At the end of the year.7% due to circular debt issue. representing expenditure on enhancement of storage capacities and construction of retail outlets.468 million. Net current assets increased by Rs. 694 million. 32. This has only been possible by critically analyzing the risks. 10/. 2. sharing inter-departmental knowledge-base and taking strategic decisions.899 million towards national ex-chequer in the form of taxes and levies and earned precious foreign exchange of US$ 58 million through export of products.051 million compared with June 30.9% to 9.214 million. it is important that the sales and marketing play a pivotal role.6% to 10.6% for PMG and from 7. legislation amendments and a multitude of other uncertain variables.50 per share of Rs. 6.each). competitor activities. Contribution towards the Economy The Company contributed Rs. APL sales decreased by 3.054 million representing increase in receivable balance from Power Producers owing to circular debts issue and also contributed corresponding increase in trade payables.5% for HSD.214 million and used Rs.531 million and total liabilities increased by Rs. to Rs. In FO. Consequently. 17. 6. 6. 31.each) already declared and paid to the shareholders thereby making a total of 500% for the year 2011-12. 30.1%. The main objectives revolve around understanding the customers and their needs. Cash flow The Company generated cash from operating activities amounting to Rs. 4. to Rs. 10/. 3. 10. to Rs. increased by 235 million to Rs. Non current assets MARKETING AND OPERATIONS REVIEW For a successful business.435 million in investing and financing activities. 2011. technical know-how and improving the earning capacities of the residents. the future trends.148 million.2% as total industry sales declined by 7.328 million due to cash inflow from the operations. APL ’s market share also increased from 6. The management does not envisage any future financial problem in a year ahead. This is in addition to interim cash dividend @ 175% (Rs. The Company is providing premier quality petroleum products even in remote areas particularly the northern areas and interior Sindh through its network of retail outlets and distributors contributing to the development of the local labour force thus promoting employment.50 per share of Rs.Directors’ Report Dividend The directors have recommended a final cash dividend @ 325% (Rs. the Company had cash and cash equivalents of Rs.814 million and is well positioned to meet its future commitments and development plans. Trade debts increased by Rs. 5. 28 Attock Petroleum Limited Annual Report 2012 . Significant changes in financial position Total assets increased by Rs.
The Company recognizes the importance of improving and expanding infrastructure for sustaining economic development and gaining the competitive edge. based on its reputation of reliability and premium quality products was able to convince two diesel-based power plants to rely on us for all their petroleum needs for power generation. access to better infrastructure and larger storages. your Company witnessed the highest number of retail outlet development in a year. your Company also penetrated its HSD supplies in the industrial sector.000 M. APL has further enhanced its storage capacity by 1. Subsequently. During this year. competitive pricing and seamless product supplies. Moreover. enabled your Company to take on some of the largest client organizations within Pakistan this year. By the end of the year under review. APL was successfully managing a network of 362 retail outlets across the country. enhancement in storage capacities and increase in retail network Governance Financial Analysis Financial Statements Annual General Meeting Source: Oil Companies Advisory Committee (OCAC) Attock Petroleum Limited Annual Report 2012 29 . careful analysis of market behaviours. The development of infrastructure. APL. Tons. Tons and also has hospitality arrangements for storage upto the extent of 16. all acted as catalyst which has resulted in your Company’s ever growing market share. the future fuels requirements and the over-all growth in your Company’s market share. So despite stiff investment conditions in the Country.5 times totalling upto approx 36. a staggering 44 outlets were commissioned as a result of the untiring efforts of the management. This is mainly to cater the ever rising needs originated as a result of the expansion of our retail network. we were also able to win a contract for HSD and PMG supplies to Pakistan Air Force. After a successful first year and winning the contract for Pakistan Army supplies for the second consecutive year. The well coordinated utilization of resources. being the preferred suppliers in the defence and industrial sectors due to our reliability.000 M.Business Review Efficient supply planning. your Company has managed to endure several projects and invest in this sector significantly. By virtue of terminalrevamping project.
duties and subsidies. Machike Bulk Oil Terminal is being upgraded and is expected to be fully operational by first half of 2012-13. GoP has demonstrated a strong commitment and taken a number of steps to deregulate the Oil and Gas sector in line with the overall vision of a liberalized economy. in turn. Factors that influence demand and supply include economic conditions. services and human resources. other levies and revision in 30 Attock Petroleum Limited Annual Report 2012 . the Company enjoys the support of refineries under proper agreements. Prices are the key drivers of an OMC’s profitability. natural disasters. laws and regulations can affect our operations. are dependent upon the availability of crude oil from the gulf region. the Company’s management is well placed to compete effectively in this increasingly competitive industry. In addition to this. The Company continues to focus on efficient mix of products maintaining sustainability and generating growth. Refineries. imposition / enhancement of duties. wars. Lately. international conflicts. operational issues. which uses indigenous crude oil. Calibration facility was also established and made operative at Machike Bulk Oil Terminal. Intense Competition: The Company operates in a very challenging business environment and faces competition to access market. Political instability in the region is a risk that may cause a disruption in the supply of petroleum products thereby affecting Company operations negatively. the quality assurance laboratory at pricing formula of products remain a possibility. Further. Higher prices translate into increased revenues and vice versa. Conducting all activities in light of the Health. GoP also controls oil prices through implementation and adjustment of levies. civil unrest. Geo-political and Security Risk: Development in politics. the oil sector has been the focus of deregulatory reforms that have been undertaken by the GoP which inturn paved the way for fierce competition compelling OMCs to adopt better marketing practices in order to retain market share. With aggressive retail outlets rollout plan and increased marketing efforts. The operations of the Company are dependent on timely availability of the petroleum products provided by the refineries. it is the Company’s goal to ensure quality of the product delivered to its customers and in this regard. The Company is a member of the only fully integrated group in Pakistan with upstream and downstream operations. weather. political instability and conflicts or actions by major oil-exporting countries. In order to mitigate this risk and ensure smooth supplies of petroleum products. except for Attock Refinery Limited. Potential developments include import and export restrictions. RISK MANAGEMENT Volatility in International Oil Prices and regulatory risk: Oil prices are directly affected by its global supply and demand. unfavourable law and order situation that threaten the safe operations of the Company. Furthermore.Directors’ Report has ultimately augmented operations throughput significantly over last year. taxes. Safety and Environment Standards and adoption of Best-Business Practices have also been emphasized over the period under review. The domestic oil market is becoming more competitive by each passing day due to new entrants and changing operational dynamics.
Loss of personnel or our inability to attract quality human resources could affect our operational performance and growth strategy. present its state of affairs Attock Petroleum Limited Annual Report 2012 31 Annual General Meeting . Safety and Environment: The Company is subject to various local. The Company offers a variety of compensation packages in line with the market and enabling environment ensuring retention of quality man power. safety and the environment. prepared by the management. Specific statements are being given hereunder: 1) The financial statements. Governance Financial Analysis Financial Statements CORPORATE GOVERNANCE The Company is fully compliant with the Code of Corporate Governance as per the requirements of the Listing Regulations. Safety and Environment policy and related practices ensuring full commitment from all employees and contractual workers towards the preservation of environment and propagation of health and safety procedures to mitigate this risk and support safe and secure execution of all critical operating activities. Information technology failures: The Company maintains a central database environment where online transactions are entered in real time. Compromising on these laws and regulations could result in increased costs of compliance as well as penalties for non-compliance. Further.Business Review Human Resource: The Company’s key human resources are essential for the smooth functioning of its operations. incremental and monthly backups are generated and maintained on hard drives and data tapes. An automated procedure generates a daily data backup at midnight. Health. national and international laws and regulations relating to health. The Company has an effective and comprehensive Health. An offsite backup mechanism is also in place as an additional measure to safeguard data integrity.
Quality Filling Station. Islamabad 32 Attock Petroleum Limited Annual Report 2012 . H-8.
Attock Petroleum Limited Annual Report 2012 33 Business Review Governance Financial Analysis Financial Statements Annual General Meeting .
cash flows and changes in equity. 34 Attock Petroleum Limited Annual Report 2012 . 8) Key operating and financial data of last six years in summarized form is annexed with the Report. competence. Chief Executive Officer and five non-executive directors of whom one is independent director. 2012 are as follows: Employees’ Gratuity fund Rs. 7) Significant deviations from the last year’s operating results have been disclosed in this Report. have been cleared subsequent to the year-end. 10. as applicable in Pakistan. 6) There are no significant doubts upon the Company’s ability to continue as a going concern. 2012. A separate statement of compliance signed by the Chief Executive Officer is included in this Annual Report. 4) International Financial Reporting Standards.Directors’ Report fairly. The newly elected Board possesses necessary skills. the result of its operations. The Chairman of the Board is a non-executive director. 2012. The new Board comprises of the Chairman. 9) All major Government levies in the normal course of business. 2012 along with necessary disclosures as required under the Code of Corporate Governance is annexed. 2012 was 2. 11) The value of investments in employee retirement funds based on the latest audited accounts as of June 30. 10) The Company does not envisage corporate restructuring or discontinuation of its operations in the foreseeable future. the election of directors was held on March 5. payable as at June 30. 2012 and new directors assumed offices effective March 10. 8. 3) Appropriate accounting policies have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. Board of Directors structure.360. 2) Proper books of account have been maintained. knowledge and experience to deal with various business issues. its Committees and meetings On completion of statutory terms of three years. have been followed in preparation of financial statements.748 million Employees’ Provident fund Rs. The pattern of shareholding as at June 30. 5) The system of internal control is sound in design and has been effectively implemented and monitored.220 million 12) The total number of Company’s shareholders as at June 30.
Name Number of Number of No. Khwaja Attock Petroleum Limited Annual Report 2012 35 Annual General Meeting . Ghaith R. Abdus Sattar was elected in place of Mr. Pharaon. Governance Financial Analysis Financial Statements Audit Committee The Audit Committee was re-constituted by the newly elected Board of Directors. the Board of Directors met five times for review and consideration of significant and routine matters including those referred to it by Board committees. Wael G. meetings meetings attended eligible to attend 1 Dr. Munaf Ibrahim 3 3 8 Mr. The number of meetings attended by each director during the year is shown below: Sr. Mr. Name Number of Number of No. M. Wael G. Mr. Pharaon. Shuaib A. Pharaon 5 5 5 5 3 Mr. Munaf Ibrahim. Shuaib A. Iqbal A. The Chairman of the committee is an independent director. M. Malik. Malik 5 5 5 Mr. 2 Mr. Attendance by each member is as follows.Business Review During the year. Babar Bashir Nawaz were re-elected. Pharaon 4 Mr. meetings meetings attended eligible to attend 1 Mr. M. The Audit Committee met four times during the year and these meetings were held prior to the Board meetings. Babar Bashir Nawaz 4 4 3 Mr. Adil Khattak 3 3 4 4 4 Mr. Mr. Sr. Mr. Abdus Sattar 2 2 Overseas directors attended the meetings either in person or through alternate directors 1 Dr. Babar Bashir Nawaz 5 5 7 Mr. Pharaon. Pharaon 5 5 2 Mr. Laith G. The Committee consists of three members comprising of nonexecutive directors including the Chairman having relevant expertise and experience. Ghaith R. Laith G. Abdus Sattar 1 1 2 Mr. Adil Khattak and Mr. Adil Khattak 5 5 6 Mr.
36 Attock Petroleum Limited Annual Report 2012 .
Attock Petroleum Limited Annual Report 2012 37 Business Review Governance Financial Analysis Financial Statements Annual General Meeting .
thus achieving a stronger economic performance. The Company continuously strives to create systems and for developing a conducive environment through training and development. Health.Directors’ Report Human Resource and Remuneration Committee The Board has established Human Resource and Remuneration Committee comprising of two non-executive directors and Chief Executive Officer in June 2012. with flawless safe work practices and conditions throughout our operations. proactive role for social welfare and development of human capital. Moreover Company comes across at human assets/ employees with honesty and equality and by offering good pay and benefits. Human Resource and Organizational Development: Continuous human resource development on both technical and behavioural skills result in highly trained work force which ultimately is a promise of not only higher productivity levels but also helps in keeping the staff turn over to lowest possible stages. continuous training and development. but also increase Company’s productivity. This will ensure and effectively achieve not only a number of performance related gains. The Trust also provides health and other welfare assistance to the needy staff members. Company management systems provide a framework for setting targets. thus employing these systems to achieve continual improvement in our overall health and safety performance. health and environmental compliance issues extremely important. Corporate Social Responsibility: The Company remains steadfast in its role to promote corporate social activities and has always desired to play a 38 Attock Petroleum Limited Annual Report 2012 . measuring performance and reporting results. profitability and competitive advantage. the Company awards educational scholarships to employees’ children based on financial need and academic excellence. CORPORATE SUSTAINABILITY Training. Safety and Environment Consciousness and protection measure: Our goal is an accident and injury free workplace. Through the APL Employees Welfare Trust (Trust). reviewing and improving HSE performance so that our activities can continue without interruption. which promote professional capabilities enabling employees to deliver optimum results. APL considers safety. The Company makes appropriate training instruction and supervision for personnel to enable them to attain the knowledge and skill levels necessary to perform their work incident free and maintaining appropriate contingency arrangements and continually monitoring. Further. in order to pass on the benefit of success we have set up number of outlets in the rural and deprived areas to provide employment and improving quality of life of the local populace. security.
Chartered Accountants. sharing of resources and other similar green-activities. Financial Statements FUTURE PLANS AND PROJECTS Considering the exponential growth of your Company. Governance Financial Analysis AUDITORS The present auditors Messrs A. employees are encouraged through on-going awareness programmes to conserve the use of electricity. Similarly..7KW) only. Our historic growth patterns necessitate continuous improvements in all facets of the business operations. Variable Speed Drive System has been introduced and functioning properly at Machike Bulk Oil Terminal which is saving around 40%60% of energy. F. Ferguson and Co. The Board has recommended for the re-appointment of the retiring auditors for the year ending June 30. 2013. In addition. Before taking this step. gas and water. Some of the major projects currently under progress are as follows: Attock Petroleum Limited Annual Report 2012 39 Annual General Meeting . Furthermore. as suggested by the audit committee. retire and offer themselves for reappointment. Your Company is currently undergoing a number of daunting tasks and up-gradations. the team is consistently generating breakthrough ideas and emphasizes on out-of-the-box proactive thinking which is the only probable direction towards a stable and successful business growth and thus. ensure compatibility with the future.Business Review Energy Conservation: The Company has taken number of steps to optimise energy consumption at its various locations across the country by introducing energy efficient processes like installing LEDs (Light Emitting Diodes) in signages at retail outlets. one spreader consumed 440W of electricity which has now been reduced to 36W only. Emphasis is also made on minimum use of paper (for printing purposes) unless really needed. a single pylon used to consume 1978W (2KW) of electricity which is now reduced to 700W (0. in order to be one-step ahead of the unforeseen.
Gatti . 2012 40 Attock Petroleum Limited Annual Report 2012 . The new Green Signage Systems will result in energysavings upto almost 70% as compared to conventional lighting systems. September 15. On behalf of the Board Shuaib A. Enhancement of storage facilities in-line with the forecasted demand in the future shall enable smooth supplies to our valuable clientele. customers and other stakeholders. • To ensure quality of products. • Further upgradation of our ERP system to incorporate better controls and real-time reports for management’s review and decision-making. ACKNOWLEDGEMENT We would like to take this opportunity to express our deep appreciation and gratitude to our esteemed shareholders. • Striving for continuous improvements in everything that we do. Government of Pakistan and regulatory bodies for their continuing cordial relationship and candid support towards the Company’s progress. UAE. Malik Chief Executive Dubai. The results of your Company are a reflection of the trust and confidence placed by all stakeholders in the Company. In this regard. a quality laboratory at Rawalpindi Bulk Oil Terminal shall be established to guarantee the right-product and also enhance customer’s satisfaction. The Board also appreciates the dedication. • Commissioning of the calibration facility at our Karachi Bulk Oil Terminal to ensure correctness of measurements and quantity. Automated Tank Gauges (ATG) on all its storage tanks will be undertaken. • Further upgradation of our vehicle and fleet management systems. the Company also intends to upgrade its terminals even further.Faisalabad and Shikarpur.E. resulting in real-time accurate measurements/ data for all products. resulting in better controls and optimum performance of all carriages and higher safety and health standards.D based lighting systems) to ensure its contribution towards a better and greener environment for the community. Introduction of the Variable Speed Drive Systems to further reduce electricity consumption are all little steps towards achieving higher efficiencies in all operational activities. • Upgradation of all retail outlets (over the next few years) towards the Green Signage Program (the smart and energy efficient L. • Enter into the high-street distribution channel for its lubricants division in order to penetrate further into new business segments. commitment and contributions of employees.Directors’ Report • Finalization of land procurement plans for erecting state-of-the-art Bulk Oil Terminals at strategic locations of Mehmood Kot Multan.
Attock Petroleum Limited Annual Report 2012 41 Business Review Governance Financial Analysis Financial Statements Annual General Meeting .
109 136.001 95.00 2.000 225.67 7.38 100.89 0.001 925.351 4.36 0.000 5.513 99.117 215.624 86.120.001 115.000 215.16 1.958 248.001 90.000 4.79 0.360.001 60.001 1.001 195.76 0.125.000 95.528 239.20 0.02 0.001 170.001 55.000 815.11 0.35 0.542 251.000 42 Attock Petroleum Limited Annual Report 2012 .001 15.001 20.001 65.120.27 0.973 614.001 645.36 0.000 135.000 547.20 6.77 0.360 69.000 10.355.190 389.000 235.000 648.765.000 30.17 1.29 0.43 0.97 2.001 125.323 937.001 45.994 145.000 115.000 1.000 15.000 175.525.18 0.481 234.001 35.000 200.34 0.662 741.001 265.21 0.000 65.000 535.000 1.501 124.001 30.000 Shares Held 13.38 0.55 0.001 100 500 1.34 0.000 50.000 310.956 75.000 4.001 305.23 0.32 0.56 0.640 4.855.474 183.126 1.001 230.001 5.348 15.456 Percentage 0.529 172.000 55.000 15.000 150.000 80.865.34 1.31 0.400 268.359.33 0.12 0.001 130.750 112.001 23.001 220.000 40.000 930.115 23.000 100.001 4.000 45.116 264 53 20 13 11 4 7 5 2 8 3 3 2 2 1 2 1 2 1 2 2 1 2 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 101 501 1.850.16 0.001 25.863.000 4.17 0.001 530.520.031 231.840 264.000 120.001 1.001 110.000 575.001 10.001 15.000 70.000 145.050 810.500 532.04 21.179 926.587 232.760.001 810.456 182.35 0.000 250.615.000 228.001 545.001 245.496 4.497 240.25 0.850.551 575.36 0.120.801 159.001 4.000 650. Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Number of Having Shares Shareholders From To 374 435 1.520.001 40.000 297.001 50.120 111.94 1.001 140.779 308.88 34.612.000 745.07 1.000 224.001 740.83 0.001 145.875 524.246 197.26 0.001 75.860.000 23.001 4.399 378.39 0.000 270.Pattern of Shareholding As on June 30.000 130.000 35.917 1.000 550.02 7.610. 2012 Corporate Universal Identification Number: 0035831 Sr.000 20.001 210.763.016 118.45 0.34 0.001 570.14 0.000 25.000 60.
2012 Sr. CHIEF EXECUTIVE OFFICER. DEVELOPMENT FINANCE INSTITUTIONS.27 5.052. Categories No.Business Review Categories of Shareholders As on June 30.571 Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 43 . UNDERTAKINGS 5 50.32 0.055 AND RELATED PARTIES NATIONAL INVESTMENT TRUST & INDUSTRIAL 1 114.197.848 1. NON-BANKING FINANCIAL INSTITUTIONS INSURANCE COMPANIES MODARABAS & MUTUAL FUNDS FOREIGN COMPANIES TRUSTS AND FUNDS JOINT STOCK COMPANIES 11 7 31 8 53 63 2.98 1. 1 2 3 4 5 6 7 8 9 Number of Shares Shareholders Held Percentage 6.122.496 Governance 72.688.26 Financial Analysis 10 GENERAL PUBLIC (LOCAL) 11 GENERAL PUBLIC (FOREIGN) 12 SHAREHOLDERS HOLDING 10% OR MORE SHARES 2 38.883.52 3.367 36.51 0.736 THEIR SPOUSES & MINOR CHILDREN ASSOCIATED COMPANIES.399 2.061.779 2. 9 4.118.78 DIRECTORS.15 2.143 29 3.882 1.132 3.52 1.616 CORPORATION OF PAKISTAN BANKS.05 56.17 4.177.73 1.690 875.674.
l.120. Fund 1 CDC .348 4. Attock Refinery Limited Attock Petroleum Limited Employees Welfare Trust Pakistan Oilfields Limited The Attock Oil Company Limited Number of Shares Shareholders Held 1 1 1 1 1 5 23.242 11.Trustee HBL PF Equity Sub Fund 1 CDC .506 118.Trustee Meezan Capital Protected Fund 1 CDC .Trustee MCB Dynamic Stock Fund 1 CDC .Trustee AKD Index Tracker Fund 1 CDC .542 92.589 44 Attock Petroleum Limited Annual Report 2012 .115 4.500 20.950 19.740 174.292 13.Trustee Pakistan Stock Market Fund 1 CDC .293 69.a.Trustee ABL Stock Fund 1 CDC .Trustee Askari Equity Fund 1 MC FSL .900 6.Trustee HBL Stock Fund 1 CDC .863.117 50.060.Pattern of Shareholding Information Required Under Code of Corporate Governance Categories ASSOCIATED COMPANIES.700 4.366 56.Equity Sub Fund 1 CDC .Trustee Pakistan Capital Market Fund 1 CDC .Trustee Nafa Islamic Multi Asset Fund 1 30 547.Trustee JS KSE-30 Index Fund 1 CDC .000 17.Trustee Nafa Multi Asset Fund 1 CDC .384 56.000 19.Trustee Pak Strategic Alloc.Trustee PICIC Energy Fund 1 CDC .050 3.Trustee KSE Meezan Index Fund 1 Trustee .800 43.958 174.897 14.456 15.Trustee PICIC Investment Fund 1 CDC .Trustee Meezan Tahaffuz Pension Fund 1 CDC .118.520.Trustee Nafa Stock Fund 1 CDC .551 268.779 231.Trustee IGI Stock Fund 1 CDC .Trustee JS Islamic Pension Savings Fund-Equity Account 1 CDC .Trustee HBL Multi .Trustee Lakson Equity Fund 1 CDC .Trustee Meezan Islamic Fund 1 CDC .496 1.Trustee HBL IPF Equity Sub Fund 1 CDC .000 13.055 MUTUAL FUNDS CDC .640 50.Trustee PICIC Growth Fund 1 CDC .221 1.Pakistan Pension Fund .Asset Fund 1 CDC .599 23.Trustee Al Meezan Mutual Fund 1 CDC .085 2.850.Trustee HBL Islamic Stock Fund 1 CDC .163 808 50 2. UNDERTAKINGS AND RELATED PARTIES Pharaon Investment Group Limited Holding s.763.000 1.096 4.Trustee NIT-Equity Market Opportunity Fund 1 CDC .Trustee Pakistan Premier Fund 1 CDC .
377 11. Pharaon Mr.115 Attock Petroleum Limited Employees Welfare Trust 1 4.496 Mr. TAKAFUL. INSURANCE COMPANIES. Ghaith R.612.000 or more.351 5 53. Chief Financial Officer.080 35.351 500 1 29.348 Pakistan Oilfields Limited 1 4.209.612.424 4. Wael G. Shuaib A.a. THEIR SPOUSES AND MINOR CHILDREN Dr. Laith G. Shuaib A. Executives* and their spouses and minor children during 2011-12. Pharaon Mr. M.832 PUBLIC SECTOR COMPANIES AND CORPORATIONS 2 363. Iqbal A.850.l. Rehmat Ullah Bardaie Number of Shares Shareholders Held 1 1 1 1 1 1 1 1 1 9 1 1 1 4. Iqbal A. NON-BANKING FINANCIAL INSTITUTIONS.766 Trade in shares by Directors. Abdus Sattar Mr. Pharaon Mr. Company Secretary and other employees of the Company who are drawing an annual basic salary of Rupees 500.000 36. Babar Bashir Nawaz Mr. Malik 1 4.736 EXECUTIVES 5 54. Chief Operating Officer.632.120. Malik Mr. MODARABAS AND PENSION FUNDS 33 5. Khwaja Mr.Business Review Categories DIRECTORS. Malik Mr.763. 1 23.456 Attock Refinery Limited 1 15.284 Financial Analysis Financial Statements SHAREHOLDERS HOLDING 5% OR MORE VOTING RIGHTS Pharaon Investment Group Limited Holding s. Head of Internal Audit.” Attock Petroleum Limited Annual Report 2012 45 .688. Name Mr.863.001 NIL Annual General Meeting Governance *“EXECUTIVE means Chief Executive Officer. Adil Khattak Mr. Shuaib A. Khwaja Number of Shares Number of Shares Purchased Sold NIL 1.016 BANKS. DEVELOPMENT FINANCE INSTITUTIONS.
2012. A review is limited primarily to inquiries of the Company personnel and review of various documents prepared by the Company to comply with the Code. I. Pakistan. 1. P .O. Canal Bank. the Code requires the company to place before the audit committee. Box 3021. 2012 Engagement partner: M. Street No. before the board of directors for their review and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm’s length transactions and transactions which are not executed at arm’s length price recording proper justification for using such alternate pricing mechanism. Chundrigar Road. FERGUSON & CO.O. 1-C. 3. nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Company’s compliance. Gulberg V. P . Fax: +92 (42) 35715872 Kabul: House No. +93 (799) 315320 46 Attock Petroleum Limited Annual Report 2012 . Tel: +92 (42) 35715864-71. Darulaman Road. to the extent where such compliance can be objectively verified. P . Ayoub Khan Meina. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm’s length price or not. Kabul. The responsibility for compliance with the Code of Corporate Governance (the Code) is that of the Board of Directors of the Company. Pakistan Tel: +92 (51) 2273457-6o/ 2870045-8. Islamabad-44000. Based on our review. with the best practices contained in the Code of Corporate Governance as applicable to the Company for the year ended June 30. F. 3rd Floor.I. Fazl-ul-Haq Road. Tel: +93 (779) 315320. Lahore-54660. Box 39. Review Report to the Members on Statement of Compliance with best practices of Code of Corporate Governance We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of Attock Petroleum Limited. Box 4716. FERGUSON & CO. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach.. F.A. a member firm of the PwC network PIA Building. Aziz Avenue. to comply with the Listing Regulations of the Karachi Stock Exchange Limited where the Company is listed. Fax: +92 (51) 2277924. We are not required to consider whether the Board’s statement on internal control covers all risks and controls. Tel: +92 (21) 32426682-5/32426711-5. Karachi-74000. the Company’s corporate governance procedures and risks. Afghanistan. Chartered Accountants. and upon recommendation of the audit committee. lmtiaz Aslam A. or to form an opinion on the effectiveness of such internal controls. Pakistan.pwc. whether the Statement of Compliance reflects the status of the Company’s compliance with the provisions of the Code and report if it does not. Our responsibility is to review. Fax: +92 (21) 32415007 Lahore: 23-C. Opposite Ayoub Khan Mosque. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the board of directors upon recommendation of the audit committee. 49 Blue Area.O. Further.com/pk> Karachi: State Life Building No. in all material respects. Chartered Accountants lslamabad September 15. < www.
were circulated at least seven days before the meetings. The Company encourages representation of independent non-executive directors and directors representing minority interests on its Board of Directors. Annual General Meeting 7. Babar Bashir Nawaz Mr. The Board has developed vision and mission statements.Statement of Compliance with the Code of Corporate Governance for the Year Ended June 30. 2. Attock Petroleum Limited Financial Statements 4. including appointment and determination of remuneration and terms and conditions of employment of the Chief Executive Officer. 8. M. The directors have confirmed that none of them is serving as a director on more than seven listed companies. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained. or being a member of a stock exchange. whereby a listed company is managed in compliance with the best practices of corporate governance. along with agenda and working papers. Shuaib A. which would be applicable from next election of directors. Pharaon Mr. The Company has prepared a ‘Code of Conduct’ and has ensured that appropriate steps have been taken to disseminate it throughout the Company along with its supporting policies and procedures. Written notices of Board meetings. Abdus Sattar Dr. Rehmat Ullah Bardaie (Alternate Director) Governance Financial Analysis *The independent director meets the criteria of independence under clause i (b) of the Code 2002 since the present Board was elected in March 2012. Khwaja (Alternate Director) Mr. other executive and non-executive directors. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company. Pharaon Mr. has been declared as a defaulter by that stock exchange. Ghaith R. The Company has applied the principles contained in the Code in the following manner: 1. The meetings of the Board were presided over by the Chairman and in his absence. Laith G. Malik Mr. 5. Adil Khattak Mr. Pharaon Mr. 2012 Business Review This statement is being presented to comply with the Code of Corporate Governance (the Code) contained in regulation No. have been taken by the Board. 6. No casual vacancy occurred in the Board during the year. The Code 2012 requires atleast one independent director as per the definition of independent director. Wael G. a Development Finance Institution or a Non-Banking Financial Institution. Iqbal A. by a director elected by the Board for this purpose and the Board met at least once in every quarter. overall corporate strategy and significant policies of the Company. All the powers of the Board have been duly exercised and decisions on material transactions. At present the Board includes: Category • Independent Director* • Non Executive Directors • Executive Directors Names Mr. prior to issuance of the revised Code in April 2012. Annual Report 2012 47 . The minutes of the meetings were appropriately recorded and circulated. 3. 35 xl of the Listing Regulations of the Karachi Stock Exchange for the purpose of establishing a framework of good governance.
The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the Listing Regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. was determined and intimated to directors. 22. We confirm that all other material principles enshrined in the Code have been complied with. It comprises of three members. Chief Executive Officer and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding. of whom two members including the Chairman are non-executive directors. The Directors’ Report for the year has been prepared in compliance with the requirements of the Code and fully describes the salient matters required to be disclosed. The Company has complied with all the corporate and financial reporting requirements of the Code. including their remuneration and terms and conditions of employment. 10. No such program was arranged during 2011-12. their spouses and minor children do not hold shares of the Company and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan. The terms of reference of the Committee have been formed and advised to the Committee for compliance. The financial statements of the Company were duly endorsed by Chief Executive Officer and Chief Financial Officer before approval of the Board. Shuaib A. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the quality control review program of the Institute of Chartered Accountants of Pakistan. 2012 48 Attock Petroleum Limited Annual Report 2012 . The Board has approved appointment of Chief Financial Officer. The directors. Material/price sensitive information has been disseminated among all market participants at once through stock exchange. UAE. which may materially affect the market price of Company’s securities. 11. 15. 19. employees and stock exchange. Malik Chief Executive Dubai. 12. 14. 16. The meetings of the Audit Committee were held at least once every quarter prior to approval of the interim and final results of the Company as required by the Code. The Board has formed an Audit Committee. prior to the announcement of interim/final results. September 15. that they or any of the partners of the firm. The ‘closed period’. The Board has formed a Human Resource and Remuneration Committee. 21. It comprises three members of whom all are non-executive directors and the chairman of the committee is an independent director.Statement of Compliance 9. 17. 13. Most of the Directors meet the exemption requirements of the Directors’ training program and one of the Directors completed this program during the year 2010-11. 18. 20. and business decisions. The Board has set up an effective internal audit function. 23. Company Secretary and Head of Internal Audit.
Attock Petroleum Limited Annual Report 2012 49 Business Review Governance Financial Analysis Financial Statements Annual General Meeting .
791.374.739 44.569 1.770 402. Non-current assets increased by 17% representing expenditure on enhancement of storage capacities and construction of retail outlets.977.081.728.660.034 Net sales revenue in 2012 increased by 40% from 2011 due to increase in average prices of products and volume sold.054.350 4.842.315 5.143 576.233 11.827 9.179 109.396 21.246 144.822.577 9.748.363.469.167 7.546 601.242.120.current liabilities Current assets Current liabilities Net current assets Property.248 4.397 293.200 10.529.082.008 11.607 61.735.017.236. Profitability decreased by 3% as compared to 2011 due to price decrease in last quarter.358.512.442.855.081 399.513.429.297 126.202 215.954 3.454.082.217 796.767 858.863.330 2.740 4.130.351 12.162.394.055.435.284 922.123 12.875 733.188 308.268 7.297 3. 50 Attock Petroleum Limited Annual Report 2012 .536 2.280.000 6.499.190. stiff competition and ban on export of petroleum products to Afghanistan during 2011-12.147.419 4.402.208 320.066 1.725 4.714.995.509 2.062.206.908 19.818 691.Six Years at a Glance Profit & Loss Summary Net sales Gross profit Operating profit Profit before tax Profit after tax Profit before interest. plant and equipment Other non-current assets Capital expenditure during the year Total assets Total liabilities Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand 691. 2012 2011 2010 2009 2008 2007 Balance Sheet Summary Share capital Reserves Shareholders’ equity Non.181.626 5.634 9.938.200 24.218 6.534 1.652 12.309 4.587.552 3.849 5.000 8.217.546.357.141 18.529.973.039.032 18.075 576.160 10.437 4.576 866.480.606 2.268 251.834 6.326 387.089 10.592.928 4.487 400.552 2.531.821 7.000 3.846.248 30.594. depreciation and amortization (EBITDA) Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand Rs thousand 2012 2011 2010 2009 2008 2007 152.511 6.606.759.649 2.152 3.396 12.917.884 4.641.853 6.130.621 709.198 15.819 5.535.164 480.247. Net current assets increased by 7% due to cash inflows from operations.327.408.795 17.200 11.383.983.659.323 412.309 3.195 5.044.506.934.849 135.646.881. taxes.053 53.971 2.767 5.577 288.918 3.470 Equity in 2012 increased by 7% over 2011 represented by profit retained in the business.316 22.601.419 3.350 3.633.587.000 5. Current assets increased by 26% representing increase in receivable balance from Power Producers owing to circular debts issue and also contributed corresponding increase in current liabilities.324 8.692.613.606 1.272.729 28.706 1.575 82.432 11.137 13.336 9.843.538 16.511 4.401 3.292.256.
213.470 783.505 1. At the end of the year.030.115) 911 2.434.814 million.165) (319.08 131.54 5.533.77 62.853 1.251 (5.70 3.98 4.944.05 48.01 7. Attock Petroleum Limited Annual Report 2012 51 .668.51) 75.437.92 EBITDA margin to sales % 3.066.63 Gross profit % Net profit to sales % 2.524 6.66 Operating leverage % (15.768) 4.674.809 Governance Financial Analysis In 2012.573) 623 2.995.86 Return on capital employed % 34.96 44.39 217.239.903 (3.05 48.32 5.943 9.307 849.86 58.082 6.317.107 (1.86 Financial Statements Annual General Meeting In 2012.Business Review 2012 2011 2010 2009 2008 2007 Cash Flow Summary Cash flows of operating activities Rs thousand Cash flows of investing activities Rs thousand Cash flows of financing activities Rs thousand Effect of exchange rate changes Rs thousand Net change in cash and cash equivalents Rs thousand Cash & cash equivalents at end of the year Rs thousand 4.647) 6.86 58.77 62.31 4.709 (155.77 5. 783 million due to increase in cash collection from the customers.81 5.779 318.644.96 44.051.611 (1. 2012 2011 2010 2009 2008 2007 Profitability and Operating Ratios 3.53 312.89 4.549) 966.34 4.311 (386.108) 1. 6.813.358.891 2. the Company generated net cash and cash equivalents of Rs.44 40.206 3.44 40.110.278.117.999. these ratios are less as compared to last year due to decrease in profitability despite increase in sales revenue.785.63 6.305) 124 1.730 (2.16 4.404) 1.51 Return on equity % 34.05 6.887) (3.00 4.910 2.025) (559.21 39. the Company had cash and cash equivalents of Rs.114 (1.96 3.019 7.905 4.
Cash flow from operations to sales is positive in 2012 due to cash generation from operations. these ratios are low compared to last year due to increase in current assets and current liabilities resulting from increasing circular debt issue.Six Years at a Glance In 2012. 52 Attock Petroleum Limited Annual Report 2012 . However these are still on higher side as compared to industry average and represent Company’s strong ability to meet its short term obligations.
72 36. .00 25.22 Basic and diluted EPS (restated) Rs 59. 96.00 Bonus shares issued Rs thousand .08 46.40 Dividend cover Times 1. .19 1. .33 86.96 115.00 20. Debt to equity 0:100 0:100 0:100 0:100 0:100 0:100 Interest cover . . .05 160.60 38. .36 122.03 43.480 1.000 1. .51 55.868.08 8.98 12.000 2.34 32.000 960.00 14. 2012 2011 2010 2009 2008 2007 Capital Structure Ratios Financial leverage .00 Break-up value per share Rs 179.00 .22 25.85 3.01 Price earning Times 7. 115.00 20.48 2.00 (Source: OCAC) Annual General Meeting Attock Petroleum Limited Annual Report 2012 53 .00 6.000 Cash dividend per share Rs 50.16 3.00 41. 20. Market Share % 9.08 2. .440.63 5.40 53.58 62.75 3. .09 Cash dividends Rs thousand 3. .200 .728.90 7.08 4.14 2. .88 67.39 48.10 7.51 Dividend payout % 83.96 6.50 30.58 52.61 61. .36 Market value per share Year end Rs 474 374 289 318 432 501 Highest (during the year) Rs 478 401 405 432 634 501 Lowest (during the year) Rs 316 281 275 130 404 295 Governance Financial Analysis Financial Statements Represent enhanced return rate to shareholders through dividend and appreciation in shares value.00 44. Weighted average cost of debt .94 7. .000 Bonus per share % .000 80.86 11.60 Dividend yield % 11.16 167.456.60 6.50 7.000 560. .61 61.Business Review 2012 2011 2010 2009 2008 2007 Investment / Market Ratios Basic and diluted EPS Rs 59. 20.61 9.
Vertical Analysis Balance Sheet Items Property.9 54 Attock Petroleum Limited Annual Report 2012 .2 320.646.531.6 3.480.576 866. (‘000) % 2011 Rs.511 4.0 4.7 2.7 109.357.255.437 100.584 97.089 58.853 6.834 6.5 24.120.351 100.6 412.141 100.188 5.017.315 3.729 1.9 30.795 91.827 51.507 95.3 2.3 17.587.0 Profit & Loss Items Net Sales Cost of Products Sold Gross Profit Operating Profit Profit Before Taxation Profit for the Year 152.0 22.396 90.0 104.0 148.0 Shareholders’ Equity Non.6 5.256.601.062.613.7 4.9 24.735.208 47.546.383.480.680.394.819 5.3 5.2 3.4 11.725 100. Plant and Equipment Other Non-Current Assets Current Assets Total Assets 2012 Rs.316 1.141 100.5 28.740 4.5 3.8 1.0 30.531.Current Liabilities Current Liabilities Total Shareholders’ Equity & Liabilities 12.770 5.081.511 4.374.0 12.247. (‘000) % 1.714.351 100.843.0 4.218 6.323 40.767 858.
233 5. (‘000) % 2008 Rs.621 709.082.3 89.9 5.0 42.954 3.9 Annual General Meeting Attock Petroleum Limited Annual Report 2012 55 .432 100.336 100.606 1.536 100.242.160 6.137 0.513.802 3.5 5.358.767 100.728.6 1.918 100.8 1.330 100.929 94.0 79.217 796.442.8 922.429.248 4.082.202 19.397 16.5 15.9 3.435.863.0 Financial Statements 82.326 387.842.7 90.7 3.995.408.350 3.3 61.552 5.432 100.509 2.4 15.195 6.272.181.9 6.419 94.272.6 601.791.292.5 5.5 3.0 89.309 95.081 5.0 53.649 38.1 1.9 5.767 100.884 4.9 4.5 4.0 18.034 3.748.3 5.442.552 2.535.606 95.0 21.4 4.280.Business Review 2010 Rs.4 60.3 55.9 5.587.0 44.217.309 3.419 3.938.297 126.0 8.0 18.821 5.577 288.246 7.032.0 50.971 2.0 8.8 2.881.634 89. (‘000) % Governance 1.044.849 35.759. (‘000) % 2009 Rs.652 100.085.983.152 100.9 4.565 2.130.513.493.2 6.570.130.917.538 10.594.454.908 11.7 4.5 1.659.236.3 6.6 7.7 135.167 43.875 733.4 59.0 13.1 9.350 63.626 38.104 3.641.652 100.928 4.336 100.6 5.268 251.2 4.846.529.0 21.7 5.6 4.402.983.0 Financial Analysis 9.0 58. (‘000) % 2007 Rs.
7 24.081.5 866. plant and equipment increased by 17% representing expenditure on enhancement of bulk oil storage capacities and construction of retail outlets.6 30.584 41.Horizontal Analysis Balance Sheet Items Property.247.2) (3.2) 109.9 12.613.315 (2.5 24.511 24.3 11.725 32.9 17.4 In 2012.141 24. This also contributed to corresponding increase in current liabilities.208 25.188 7.2 Profit & Loss Items Net Sales Cost of Products Sold Gross Profit Operating Profit Profit Before Taxation Profit for the Year 152. (‘000) % 1.735.7) 4.0 1.2 4.351 14.576 16.531. Property.6 4.740 4.770 1. 56 Attock Petroleum Limited Annual Report 2012 .218 25.8 412. Net sales revenue in 2012 increased by 40% from 2011 due to increase in average prices of products and volume sold.437 39.767 12.7 22. stiff competition and ban on export of petroleum products to Afghanistan during 2011-12.4 6.531.374.316 10.853 6.6 6.2 Shareholders’ Equity Non-Current Liabilities Current Liabilities Total Shareholders’ Equity & Liabilities 12.587.394.351 14.062.1 30. Profitability decreased by 3% as compared to 2011 due to price decrease in last quarter.1 104. Current assets increased by 26% due to increase in receivable resulting from increasing circular debts.0 320.255.480.546.396 14.141 24.795 26.480.357.089 40.507 32.714.9 858.646.601.511 18.834 32. (‘000) % 2011 Rs.8 28.843.256.323 7.383.680.729 28.120.5 4.827 5.7 148.5 (6.819 5.017. Shareholder’s equity increased by 7% represented by profit retained in the business. Plant and Equipment Other Non-Current Assets Current Assets Total Assets 2012 Rs.
408.493.875 733.442.971 2.297 126.513.626 17.863.8 12.350 15.652 30.032.280.1 73.881.435.908 11.9 (2.Business Review 2010 Rs.821 5.565 34.621 709.7 3.309 3.248 4.3 6.938.538 27.509 2.2) 22.1 Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 57 .954 3.272.552 20.2 16.3 18.082.326 387.130.928 4.272.1 17. (‘000) % 2007 Rs.1 11.1 Financial Analysis 8.748.9 52.4 16.7 601.606 8.8 5.202 19.7 53.529.6 72.641.130.160 17.1 Governance 18.0 44.759.9 21.3 18.6 44.8 922.3 16.2 72.8 2.791.606 1.358.6 82.336 60.085.536 20.442.995.432 82.4 83.397 22.842. (‘000) % 2009 Rs.4 9.9 7.6 3.767 68.429.2 25.918 79.236.9 25.137 9.454.246 7.217.652 7.2 24.846.6 39.242.6 3.268 251.1 7.513.292.2 17.8 8.402.802 14.432 9.4 18.587.767 15.6 1.570.983.233 21.195 8.649 8.9 10.104 3.552 2.330 50.659.577 288.4 14.419 16.0 19.217 796.8 61.728.181.167 21.917.081 13.0 42. (‘000) % 2008 Rs.350 3.152 34.044.9 13.535.419 3.884 4.849 135.4 13.309 33.983.4 54.929 2.082.9 58.2 16.6 36.6 8. (‘000) % 1.034 3.594.634 15.336 53.0 36.9 86.
00 28.670 0.000 6.80 210.14 437.456.487.425 4.94 WPPF & WWF 415.480 10.315 1.308.450 75.946 Cost of sales and operating expenses (143.74 Government as: Company taxation 1.47 2.000 9.00 Providers of finance as: Financial charges - - - - Retained in business: Depreciation 175.071.201 100.439 0.706 1.761.13 Society as: Donation - - 555 0.497.22 Sales tax and levies 29.00 58 Attock Petroleum Limited Annual Report 2012 .90 36.420 DISTRIBUTION Employee remuneration: 292.692 130.82 1.491) (101.965 1.10 21.201 28.308.526.526) Total value added 36.Statement of Value Added 2012 2011 Rs. (‘000) % Gross revenue and other income 180.388.48 145.55 Shareholders as: Dividends 3.868.031 4.064 0.51 Net earnings 664.900.18 1. (‘000) % Rs.763.420 100.956.387.387 82.487.134 0.
total comprehensive income. F. 1. evaluating the overall presentation of the above said statements. (c) in our opinion and to the best of our information and according to the explanations given to us. its cash flows and changes in equity for the year then ended. Tel: +93 (779) 315320. and (iii) the business conducted. P . as well as.A. An audit also includes assessing the accounting policies and significant estimates made by management. Islamabad-44000. and. evidence supporting the amounts and disclosures in the above said statements. (ii) the expenditure incurred during the year was for the purpose of the Company’s business. statement of comprehensive income. Tel: +92 (42) 35715864-71. proper books of account have been kept by the Company as required by the Companies Ordinance. Darulaman Road. and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance. P .O. Business Review Governance Financial Analysis Financial Statements Chartered Accountants lslamabad September 15. cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan.O. F. cash flow statement and statement of changes in equity together with the notes forming part thereof. Aziz Avenue. 1984. Fax: +92 (42) 35715872 Kabul: House No. a member firm of the PwC network PIA Building. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied. 2012 Engagement partner: M. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. for the year then ended and we state that we have obtained all the information and explanations which. Box 3021. FERGUSON & CO. 2012 and of the profit. Our responsibility is to express an opinion on these statements based on our audit. investments made and the expenditure incurred during the year were in accordance with the objects of the Company. in the manner so required and respectively give a true and fair view of the state of the Company’s affairs as at June 30.pwc. Chartered Accountants. the balance sheet. An audit includes examining on a test basis. 1-C. We believe that our audit provides a reasonable basis for our opinion and. we report that: (a) (b) in our opinion. Tel: +92 (21) 32426682-5/32426711-5. Karachi-74000. 1980 (XVIII of 1980). P . in our opinion (i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Companies Ordinance. Fax: +92 (51) 2277924. +93 (799) 315320 Attock Petroleum Limited Annual Report 2012 59 Annual General Meeting . was deducted by the Company and deposited in the Central Zakat Fund established under section 7 of that Ordinance. lmtiaz Aslam A. 2012 and the related profit and loss account. give the information required by the Companies Ordinance. Canal Bank. Pakistan. 1984. Auditor’s Report to the Members We have audited the annexed balance sheet of Attock Petroleum Limited as at June 30. statement of comprehensive income. 1984. 1984.I. Afghanistan. Ayoub Khan Meina. profit and loss account. Kabul. 3rd Floor. after due verification. were necessary for the purposes of our audit.com/pk> Karachi: State Life Building No. Lahore-54660. 3. Gulberg V. Box 4716. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. Street No. Fax: +92 (21) 32415007 Lahore: 23-C.O. Box 39. Chundrigar Road. lt is the responsibility of the Company’s management to establish and maintain a system of internal control. I. Pakistan Tel: +92 (51) 2273457-6o/ 2870045-8. Fazl-ul-Haq Road. FERGUSON & CO. Opposite Ayoub Khan Mosque. < www. and (d) in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance. to the best of our knowledge and belief. 49 Blue Area.. Pakistan.
827 CONTINGENCIES AND COMMITMENTS 11 30.407 Revenue reserve Unappropriated profit 11.323 10.637.000 Issued.601 11.500.546.208 NON CURRENT LIABILITIES Long term deposits 8 245.089 540.200 Reserves Special reserves 7 54.342 17.666.000 1.073.729 209.141 24.531.480. 2012 Note 2012 2011 Rupees (‘000) SHARE CAPITAL AND RESERVES Authorised capital 6 1.747 12.000 412.287 Provision for income tax 68.200 691.827.383.500.729 111.351 60 Attock Petroleum Limited Annual Report 2012 .316 Deferred income tax liability 9 167.316 CURRENT LIABILITIES Trade and other payables 10 17.000 320.735.864 27.Balance Sheet As at June 30.540 12.259 12. subscribed and paid up capital 6 691.613.
351.459.072 1.218.015.168 1.957 Long term prepayments 14 10.310 9.037 22.729 Financial Analysis Stock in trade 15 4. prepayments and other receivables 17 843.813.601.930 Cash and bank balances 19 6.576 1.037 842.231 CURRENT ASSETS Stores and spares 15.141 24.396 30.062.733 15.767 Governance Long term investments in associated companies 13 856.730 28.705 Trade debts 16 15.374.620 9. plant and equipment 12 1. Malik Chief Executive Abdus Sattar Director Attock Petroleum Limited Annual Report 2012 61 .Business Review NON CURRENT ASSETS Note 2012 2011 Rupees (‘000) Property. deposits.297.895 5.292 Advances.247.246. Shuaib A.531.703 Financial Statements Short term investments 18 873.165.480.351 Annual General Meeting The annexed notes 1 to 37 form an integral part of these financial statements.795 5.
437 109.427 26.000) 4.646.211 (437.659.315 Earnings per share .819 6.969.761.642.507) GROSS PROFIT 4.255.211.081.838 93.853 4.680.61 61.706) PROFIT BEFORE TAXATION 5.256.437 127.965) (682.725 Cost of products sold 21 (148.834 Finance cost Income on bank deposits and short term investments Share of profit of associated companies Other charges 24 25 13 26 (1.812.740 6.526.356) 1.394.Basic and diluted (Rupees) 28 59. Shuaib A.315) OPERATING PROFIT 6.714.120.587.584) (104.58 The annexed notes 1 to 37 form an integral part of these financial statements. 2012 Sales Note 2012 2011 Rupees (‘000) 20 176.047) 889. Malik Chief Executive Abdus Sattar Director 62 Attock Petroleum Limited Annual Report 2012 .978.241) Sales tax NET SALES 152.511 PROFIT FOR THE YEAR 4.017.425) (1.036.357.506 (415.000) (17.931 (611.966 (23.322 (889.511 Provision for taxation 27 (1.218 Other operating income Operating expenses 22 23 2.Profit and Loss Account For the year ended June 30.666) 962.843.
511 Business Review Governance Other comprehensive income - - TOTAL COMPREHENSIVE INCOME FOR THE YEAR 4.120. 2012 PROFIT FOR THE YEAR 2012 2011 Rupees (‘000) 4. Malik Chief Executive Abdus Sattar Director Attock Petroleum Limited Annual Report 2012 63 .256.256.315 4.315 4.511 The annexed notes 1 to 37 form an integral part of these financial statements. Financial Analysis Financial Statements Annual General Meeting Shuaib A.120.Statement of Comprehensive Income For the year ended June 30.
278.420) (110.709 (409.887) (308.866) 30. Shuaib A.Cash Flow Statement For the year ended June 30.900) 36.903 Cash used in financing activities Effect of exchange rate changes INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 783.107 CASH FLOW FROM FINANCING ACTIVITIES Dividends paid (3.200) 6.004 (155.331) 528.940 15.108) 1.570) (2.470 (1.944.623) 4.206 The annexed notes 1 to 37 form an integral part of these financial statements.993 966.813.248) 477 (11.578) (296. plant and equipment Proceeds from sale of property.786 317.408 (1.644.789 25.647) 9.108) (1.582.588 933.030.129 19.454) (348.413 (1.853 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 29 6.206 (3.030. 2012 CASH FLOW FROM OPERATING ACTIVITIES Note 2012 2011 Rupees (‘000) Cash 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 149.110 109.730 6.213.674.549) CASH FLOW FROM INVESTING ACTIVITIES Addition to property.141.933 - (143.944. 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 (402.278.524 6.332.768) 4.668. Malik Chief Executive Abdus Sattar Director 64 Attock Petroleum Limited Annual Report 2012 .434.782.942.768) (3.
256.000) Interim dividend @ 115% relating to year ended June 30.315 Financial Analysis Total transactions with owners BALANCE AS AT JUNE 30.283.200 691.200 .315 (794.364 (10.200) Total transactions with owners BALANCE AS AT JUNE 30.236.200 .209. 2010 115. 2011 Total comprehensive income for the year Transferred to special reserves by associated companies . 10.600) (3.200) 11.946. .827. 2012 Share capital 576. 2011 . . 54.152.600) Transaction with owners: Interim dividend @ 175% relating to year ended June 30. (1.577 4.880) (1. 2011 .457) Financial Statements Final dividend @ 300% relating to year ended June 30.511 9.880) (2.600) (2.511 Business Review BALANCE AS AT JUNE 30. 2012 .000) (1.364) - Transaction with owners: Bonus shares @ 20% relating to the year ended June 30. Shuaib A.259 (1.864 (1.200) - Final dividend @ 200% relating to year ended June 30. 115. (2. .457 (27.323 The annexed notes 1 to 37 form an integral part of these financial statements.080) 10.637.600) (3.643. 2010 Total comprehensive income for the year Transferred to special reserves by associated companies Governance . (115.043 - 8. 27. (794.283.062. 27.256.601 4.534 4.000 - Special reserves Unappropriated profit Total Rupees (‘000) 17. .546. .073. Malik Chief Executive Abdus Sattar Director Attock Petroleum Limited Annual Report 2012 65 . .120. 2010 .200 .880) 11. 2012 Annual General Meeting 12. 691.120.Statement of Changes in Equity For the year ended June 30.208 4.073.3220.127.116.117 .
2013 The management anticipate that.Notes to and forming part of the Financial Statements For the year ended June 30. except for the effects on the financial statements of amendments to IAS 19 “Employee Benefits”. Rawalpindi. 1984 shall prevail. Morgah. 2013 IAS 32 Financial instruments: Presentation (Amendments) January 1. 66 Attock Petroleum Limited Annual Report 2012 . 2013 IFRIC 20 Stripping costs in the production phase of a surface mine January 1. Plant and Equipment (Amendments) January 1. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. 2005. 2013 IAS 19 Employee benefits (Amendments) January 1. The principal activity of the Company is procurement.38% (2011: 34. 2013 & 2014 IAS 34 Interim Financial Reporting (Amendments) January 1. provisions of and directives issued under the Companies Ordinance. 2012 1. ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS Standards. the adoption of the above standards. The Company was listed on Karachi Stock Exchange on March 7.a. 1984. amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company: Effective date (annual reporting periods beginning on or after) IFRS 7 Financial instruments: Disclosures (Amendments) January 1. 1995 and it commenced its operations in 1998. Pakistan. 2013 IAS 12 Income Taxes (Amendments) January 1. 1984. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance. 2013 IAS 28 Investments in Associates and Joint Venture (Revised) January 1.l holds 34. The registered office of the Company is situated at Attock House. 2013 IAS 1 Presentation of financial statements (Amendments) July 1. Pharaon Investment Group Limited Holding s. 2. 3. 2012 IAS 16 Property.38%) shares of the Company. 2013 IAS 27 Separate Financial Statements (Revised) January 1. LEGAL STATUS AND OPERATIONS Attock Petroleum Limited (the Company) was incorporated in Pakistan as a public limited company on December 3. In case requirements differ. storage and marketing of petroleum and related products. 2012 & January 1. The Company is domiciled in Rawalpindi. the provisions or directives of the Companies Ordinance.
Annual General Meeting Attock Petroleum Limited Annual Report 2012 67 . Further. 2012. which are yet to be notified by the Securities and Exchange Commission of Pakistan. 2013 IFRS 11 Joint arrangements January 1. 2015 IFRS 10 Consolidated financial statements January 1. The details of the valuation are given in note 31. 2011.1 Basis of measurement These financial statements have been prepared under the historical cost convention except as otherwise disclosed in the respective accounting policies notes. the Company operates following staff retirement benefit funds: i) Approved defined benefit funded gratuity plan for all eligible employees. Past service cost in respect of vested benefits is recognised immediately as an expense whereas past service cost related to non-vested benefits is recognised as expense on a straight-line basis over the average period until such benefits become vested. 2012: IFRIC 4 Determining whether an arrangement contains lease IFRIC 12 Service concession arrangements 4. 2013 IFRS 13 Fair value measurement January 1. SIGNIFICANT ACCOUNTING POLICIES 4. Actuarial valuation is conducted periodically using the “Projected Unit Credit Method” and the latest valuation was carried out as at June 30. Net actuarial gains and losses are recognised over the expected remaining service life of the employees. the following new standards have been issued by the International Accounting Standards Board (IASB). will have no material impact on the financial statements other than in presentation / disclosures. 2013 The following interpretations issued by the IASB have been waived of by SECP effective January 16. for the purpose of their applicability in Pakistan: Effective date (annual periods beginning on or after) IFRS 1 First-time adoption of International Financial Reporting Standards July 1.2 Business Review Staff retirement benefits Effective July 01.amendments and interpretations in future periods. which cannot be presently quantified on the date of the statement of financial position. Governance Financial Analysis Financial Statements 4. 2013 IFRS 12 Disclosure of interests in other entities January 1. 2009 IFRS 9 Financial instruments January 1. The application of the amendments to IAS 19 would result in the recognition of cumulative unrecognized actuarial gains / losses in other comprehensive income in the period of initial application.
Notes to and forming part of the Financial Statements
For the year ended June 30, 2012
ii) Approved contributory provident fund for all employees for which contributions of Rs 4,185 thousand (2011: Rs Nil) are charged to income for the year. 4.3 Operating segments Operating segments 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 the Board of Directors views the Company’s operations as one reportable segment. 4.4 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. 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. 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. 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.
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.
Attock Petroleum Limited
Annual Report 2012
Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any, except for freehold land and capital work in progress which are stated at cost. Depreciation is charged to income on the straight line method to write off the cost of an asset over its estimated useful life at the rates specified in note 12.1. Depreciation on additions is charged from the month in which the asset is available for use and on disposals upto the preceding month of disposal. Maintenance and normal repairs are charged to income as and when incurred. Major renewals and improvements are capitalised and the assets so replaced, if any, are retired. Gains and losses on disposal of assets are included in income. 4.10 Impairment of non-financial assets Assets that have an indefinite useful life, for example land, are not subject to depreciation and are tested annually for impairment. Assets that are subject to depreciation are reviewed for impairment at each balance sheet date, or wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount for which the assets’ carrying amount exceeds its recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels, for which there are separately identifiable cash flows. Nonfinancial assets that suffered an impairment, are reviewed for possible reversal of the impairment at each balance sheet date. Reversals of the impairment loss are restricted to the extent that asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss has been recognised. An impairment loss or reversal of impairment loss is recognised in income for the year. 4.11 Investments in associated companies Investments in associated companies are accounted for using the equity method. Under this method the investments are stated at cost plus the Company’s equity in undistributed earnings and losses after acquisition, less any impairment in the value of individual investment. Unrealised gains on transactions between the Company and its associate are eliminated to the extent of the Company’s interest in the associate. 4.12 Stores and spares These are stated at moving average cost less any provision for obsolete and slow moving items. Governance Financial Analysis Financial Statements Annual General Meeting
Attock Petroleum Limited
Annual Report 2012
Notes to and forming part of the Financial Statements
For the year ended June 30, 2012
Stock in trade Stock in trade is valued at the lower of cost, calculated on a first-in first-out basis, and net realisable value. Charges such as excise duty and similar levies incurred on unsold stock of products are added to the value of the stock and carried forward. Net realisable value signifies the sale price in the ordinary course of business less costs necessary to make the sale. 4.14 Financial instruments Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and de-recognised when the Company loses control of the contractual rights that comprise the financial assets and in case of financial liabilities when the obligation specified in the contract is discharged, cancelled or expired. All financial assets and liabilities are initially recognised at fair value plus transaction costs for all financial assets and liabilities not carried at fair value through profit or loss. Financial assets and liabilities carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are charged to income for the year. These are subsequently measured at fair value, amortised cost or cost, as the case may be. Any gain or loss on derecognition of financial assets and financial liabilities is included in income for the year. 4.15 Financial Assets The Company classifies its financial assets in the following categories: investments at fair value through profit or loss, held-to-maturity investments, loans and receivables and available for sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognised on the trade date - the date on which the Company commits to purchase or sell the asset. 4.15.1 Investment at fair value through profit or loss Investments classified as investments at fair value through profit or loss are initially measured at cost being fair value of consideration given. At subsequent dates these investments are measured at fair value with any resulting gains or losses charged directly to income. The fair value of such investments is determined on the basis of prevailing market prices. The Company’s investments at fair value through profit or loss comprise “Short term investment in mutual funds”.
4.15.2 Held-to-maturity investments Investments with fixed payments and maturity that the Company has the intent and ability to hold to maturity are classified as held-to-maturity investments and are carried
Attock Petroleum Limited
Annual Report 2012
3 Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. except for maturities greater than 12 months after the balance sheet date.15. 4. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the balance sheet date.17 Offsetting Financial assets and liabilities are offset and the net amount is reported in the balance sheet if the Company has a legally enforceable right to set off the recognised amounts and the Company intends to settle on a net basis or realise the asset and settle the liability simultaneously. 4. the Company establishes fair value by using valuation techniques. The Company’s held to maturity investments comprise “Short term deposits” and “Short term investments”. Governance Financial Analysis Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 71 . 4. If the market for a financial asset is not active (and for unlisted securities). 4. Available-for-sale investments are initially recognised at cost and carried at fair value at the balance sheet date.16 Impairment The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired.4 Available-for-sale financial assets Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories. Adjustment arising from remeasurement of investment to fair value is recorded in other comprehensive income and taken to income on disposal of investment or when the investment is determined to be impaired. These are classified as non-current assets. “Advances. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. deposits and other receivables” and “Cash and bank balances” in the balance sheet. The Company’s loans and receivables comprise “Trade debts”.Business Review at amortised cost less impairment losses. Fair value of a quoted investment is determined in relation to its market value (current bid prices) at the balance sheet date. Loans and receivables are carried at amortized cost using the effective interest method. They are included in current assets.15.
Notes to and forming part of the Financial Statements
For the year ended June 30, 2012
Trade debts Trade debts are recognised initially at fair value and subsequently measured at cost less provision for doubtful debts. A provision for doubtful debts is established when there is objective evidence that Company will not be able to collect all amounts due according to the original terms of the trade debts. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default of delinquency in payments are considered indicators that the trade debt is doubtful. The provision for doubtful debts is charged to income for the year. When the trade debt is uncollectible, it is written off against the provision. Subsequent recoveries of amounts previously written off are credited to the income. Cash and cash equivalents For the purpose of cash flow statement, cash and cash equivalents comprise cash in hand, bank balances and highly liquid short term investments with original maturities of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Revenue recognition Sales are recorded on dispatch of goods to customers. Commission and handling income is recognised on shipment of products. Income on bank deposits and short term investments is recognised on time proportion basis using the effective yield method. Income on investments in associated companies is recognised using the equity method. Under this method, the Company’s share of post-acquisition profit or loss of the associated companies is charged to income, and its share of post-acquisition movements in reserves is recognised in reserves. Dividend distribution by the associated companies is adjusted against the carrying amount of the investment. Gains or losses resulting from re-measurement of investments at fair value through profit or loss are charged to income. Operating lease Lease in which significant portion of risk and reward of ownership are retained by the lessor are classified as operating leases. Payment made under operating leases are charged to income on straight line basis over the period of lease.
Attock Petroleum Limited
Annual Report 2012
4.22 Taxation Provision for current taxation is based on taxable income at the current rates of tax. Deferred income tax is accounted for using the balance sheet liability method in respect of all temporary differences arising between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilized. Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on the tax rates that have been enacted. Deferred tax is charged or credited to income except to the extent that it relates to items recognised in other comprehensive income or directly in the equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements in conformity with the approved accounting standards requires the use of certain accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are as follows: i) Estimate of recoverable amount of investments in associated companies - note 13; ii) Provision for taxation - note 27 iii) Estimated useful life of property, plant and equipment - note 12.1; and iv) Staff retirement benefits - note 31 Governance Financial Analysis Financial Statements Annual General Meeting
Attock Petroleum Limited
Annual Report 2012
Notes to and forming part of the Financial Statements
For the year ended June 30, 2012
6. SHARE CAPITAL AUTHORISED CAPITAL 150,000,000 ordinary shares of Rs 10 each (2011: 150,000,000 ordinary shares of Rs 10 each) 1,500,000 1,500,000 2012 2011 Rupees (‘000)
ISSUED, SUBSCRIBED AND PAID UP CAPITAL Shares issued for cash 5,000,000 ordinary shares of Rs 10 each (2011: 5,000,000 ordinary shares of Rs 10 each) 50,000 50,000
Shares issued as fully paid bonus shares 64,120,000 (2011: 64,120,000) ordinary shares 69,120,000 (2011: 69,120,000) ordinary shares of Rs 10 each 691,200 691,200 641,200 641,200
The associated company Attock Refinery Limited held 15,120,115 (2011: 15,120,115) ordinary shares at the year end.
Attock Petroleum Limited
Annual Report 2012
750 17.695 1.1 Accrued liabilities Advance from customers Retention money Worker’s welfare fund Unclaimed dividend 9.910 15. as a result of the directive of the Government to divert net profit after tax (if any) from refinery operations above 50 percent of paid-up capital as at July 1.594.608 thousand (2011: Rs 25.note 10. retailers and contractors and are refundable on cancellation of respective contracts or termination of related services.504.000) (32.000 143.Business Review 7.073. 2002 to offset against any future loss or to make investment for expansion or up gradation of refineries.855 90. 8.318 12.051 14.050. SPECIAL RESERVES Special reserves includes Rs 52.000 Financial Statements (31.416 1. The amount transferred to special reserve is not available for distribution to the shareholders.747 9. DEFERRED INCOME TAX LIABILITY Deferred tax liability arising due to accelerated tax depreciation of certain provisions 198.352 1.000) Deferred tax asset arising in respect 10. Reserve for expansion and modernisation represents the Company’s share of amount set aside as a special reserve by National Refinery Limited and Attock Refinery Limited. Maintenance reserve represents amount retained by Attock Gen Limited (an associate of Attock Refinery Limited) to pay for major maintenance expenses in terms of the Power Purchase Agreement.019 35. LONG TERM DEPOSITS These represent interest free security deposits received from distributors.053.800.629 11.159 Attock Petroleum Limited Annual Report 2012 75 .287 Annual General Meeting 231.526 54.666.000 TRADE AND OTHER PAYABLES Creditors Due to related parties (unsecured) .290 1. Governance Financial Analysis 2012 2011 Rupees (‘000) 9.064 118.340 thousand) for expansion and modernisation and Rs 2.256 thousand (2011: Rs 2.000 111. 167.170.067 thousand) on account of maintenance reserve.
010 Attock Cement Pakistan Limited - 142 APL Employees provident fund 2.616 Later than five years 1.444 7. 2.779 2.458 186.946 The Attock Oil Company Limited 15.433.594.Notes to and forming part of the Financial Statements For the year ended June 30.221.381. 2012 2012 2011 Rupees (‘000) 10.561 15.088 76 Attock Petroleum Limited Annual Report 2012 .745 11.101 2. as per show cause notices of tax department.028 Later than one year and not later than five years 311.391 638.796 1. 850.552 Pakistan Oilfields Limited 15.157 (iii) Guarantees issued by bank on behalf of the Company 78.306.348 883.695 11.013.772 14.2 COMMITMENTS (i) Capital expenditure commitments 323.1 CONTINGENCIES (i) Tax contingency related to proration of expenses against local and export sales for prior years. The Company has filed its response against the show cause notice and no further action has yet been taken by the department.004.459.356. CONTINGENCIES AND COMMITMENTS 11.352 9.304 40.045 Attock Refinery Limited 13.421 thousand (2011: Rs 859. 2012 amounting to Rs 1.572 35. Islamabad.371 286.800.732 thousand) payable as follows: Not later than one year 65.1 Due to related parties: National Refinery Limited 1.471 (ii) Commitments for rentals of assets under operating lease agreements as at June 30.709 (ii) Corporate guarantees and indemnity bonds issued by the Company to the Commissioner Inland Revenue.
(66.481 .844) 121.310 348.704 11.228 Accumulated depreciation Net book value 192.426) 11.395) 24. . 2012 Financial Statements Disposals As at June 30.704 29.345) 10.note 12.342.463 (32.038.444 .614 42.1 Operating assets Freehold land Buildings on Freehold land Lease hold land Pipelines. .052) 53.342. tanks Equipment .019.706) 128.228 1. . 2010 Cost Accumulated depreciation Net book value 192.010 (228.337 .447) 7. (7.468 506.170 (765) (11. .934 875.768) 174.157 1.444 136.220 (21. 2011 Cost Opening net book value Additions Cost Depreciation Depreciation charge Closing net book value 192. PROPERTY. 192.337 113.601. 192.769 13.000) 581.190 . .669 (21.938 (3.157 10.155 (12.927 (453.887 (15.498 1.636 (8.290 Capital work in progress . .129 86.226 10.203 (5.769 10. . .876 2. .199 (155.223) 10.887 (8.129 163.117 (280.466 (27.431 64. 192.180 (26.244) 11.431 75.198 (15.742 Furniture.038. (8.626. 5 5 10 20 10 10 20 20 192.289) 10. .671) 10.271 4.044 (67. .739 (717) (58.484 72.231 (503) 503 .038. .271 23.908) 2.181 111.278 (35.875 (294. (52) (6. 192.109 (179.439) 1.935) 1.934 353.444 121.046) 1. (6. . 2011 Opening net book value Additions Cost Depreciation 192.836 (5. .863 59.068) 191. 2012 Cost Accumulated depreciation Net book value Annual rate of Depreciation (%) .310 50.546) 25.477 1.859) 225. .853 1.374.529) 130.407) 581. . (5.603 293. (1. .746 13.481) 1. (71.778 (761.742 169.603 174.865 .468 191.246) 348.129) 25.258 46.643) 9. (4.889 (454) 454 .342. 2012 2011 Rupees (‘000) 12.note 12.208) 113.576 1. .446 (7.887 (23.898) 24.472.377 (1.673) 24.939 (4. (5.228 Annual General Meeting Attock Petroleum Limited Annual Report 2012 77 .101 (57.932) 9.310 582.659) 130.758) 113.203 1. fixture and equipment Computer and auxiliary equipment Motor vehicles Total Depreciation charge Closing net book value and meters Year ended June 30.407) 353.746 17.348 336. .767 Business Review Governance 12.444 .484 5.446 528.258 88.446 1.039) 191.510 (1.586) (145.226 18.337 90.550) 121.1 1.526 (47.853 11.746 7.914 . . Electrical and signage fire fighting equipment Rupees (‘000) As at July 1.290 479.467) 10.647) 86.157 26.550) 1.223) 90. .064) 1.290 Financial Analysis Disposals As at July 1.444 128.181 .614 104.498 2.185) 1.567 93.2 259.997) (51.511 .853 (55) (4. .283 .332) 53.682 (210.203 1.245) 225.424 (1.876 82.444 136.720) 46.120 (14.863 330.203 12. PLANT AND EQUIPMENT Operating assets .336 (588.935) 1.099) 353.269) 46.718 (6.876 24.444 .870) 86.444 .456) 3.603 401.290 Year ended June 30.935) 1.935 (175.103.444 - 192. .567 24. .034 (18. (11.614 74. pumps. .451) 42. (1.019. .873 (2.038.812 .789) 10.298 (52) .444 136.
998 336.957 765.283) (415. 2010 4. 12. 1984. tanks contractors and equipment Rupees (‘000) As at July 1.447 149.4 Property. 2011 37.172) (139.695 216.460) (17. plant and equipment held by dealers of retail outlets of the Company are as follows: 2012 2011 Rupees (‘000) Pipelines.586 Buildings 120.420 206.998 43.671 Electric and fire fighting equipment 12. 2011 37.640 55.434) (539.248 88. 2012 18.699 2.739 Investment in associated company 11.2 Capital work in progress Civil works Pipelines. Advances to Total pumps.666 46.270 Transfers during the year (3.348 12. 2012 2011 Rupees (‘000) 13.573 185.398 Transfers during the year (50.135 259. 2012 12.547 391.049) 26.777 Equipment .030 197.715) (14.004) (15. LONG TERM INVESTMENTS IN ASSOCIATED COMPANIES Balance at beginning of the year 842.527) Balance as at June 30.091 199.501 53. plant and equipment disposals: All the items of property. as required under Paragraph 5 of Part 1 of the 4th Schedule to the Companies Ordinance. pumps.475 Additions during the year 36.349 296.268) Balance as at June 30.161 384.3 Cost of Property.506 93.571 462.037 842.784 81.966 110.211 Dividend from associated companies (25.Notes to and forming part of the Financial Statements For the year ended June 30.477 As at July 1.000.signage 495.002 Due to large number of dealers it is impracticable to disclose the name of each person having possession of these assets.957 78 Attock Petroleum Limited Annual Report 2012 .477 Additions during the year 31.784 81.381) (157.260 Impairment loss related to investment in National Refinery Limited (50. plant and equipment disposed during the year had net book value below Rs 50.695 216.810) (73.993) Balance at end of the year 856.578 Share of profit of associated companies 76.998 336. tanks and meters 269.
000) fully paid ordinary shares of Rs 10 each including 222.712 Attock Refinery Limited .000) fully paid ordinary shares of Rs 10 each.342) (57. Governance Financial Analysis Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 79 .note 13.666 (2011:799.798 409.278) bonus shares of Rs 10 each.379 900.577 483.004 thousand (2011: Rs 8.865 thousand (2011: Rs 321. 2012: Rs 175.957 All associated companies are incorporated in Pakistan.000 (2011: 450.500 thousand (2011: Rs 4.924 thousand). Cost Rs 310.476 thousand) .278 (2011: 133.1 Share of profit of associated companies is based on the unaudited financial statements for the nine months ended March 31.865 thousand).127 Attock Information Technology Services (Private) Limited .035 thousand (2011: Rs 281. Cost Rs 4. 2012 Rs 9. Quoted market value as at June 30.690 thousand) . Quoted market value as at June 30.2 The Company’s interest in associated companies is as follows: 2012 2011 Rupees (‘000) National Refinery Limited . 13.839 Less: Impairment loss .note 13.502 thousand (2011: Rs 298.Quoted 1. 2012: Rs 185.432.000 thousand) 9.000) bonus shares of Rs 10 each.5 502.882) 856. 2012 (2011: unaudited financial statements for the nine months ended March 31.000 (2011: 222.000 (2011: 1.037 842. Cost Rs 321.950 thousand (2011: Rs 163.004 8.Unquoted 450.666) fully paid ordinary shares including 133.332.500 thousand).000 Carrying value on equity method 964.Business Review 13.Quoted 799.6 452. 2012 are not presently available. 2011) since the audited financial statements for the year ended June 30.National Refinery Limited (108. Value based on net assets as at March 31.
342 1. 2012 National Refinery Limited 632.227. terminal growth rate of 3.199 1. terminal growth rate of 3. 13.56 Attock Information Technology Services (Private) Limited 8.232) 10.16%).103 1.857 1.418.004 10.474 61.260 13.231 80 Attock Petroleum Limited Annual Report 2012 . Attock Refinery Limited and Attock Information Technology Services (Private) Limited.406 1.102.474 3.note 17 (5.839 1.394.235 47.333 4.5 The value of investment in National Refinery Limited as at June 30.040.095.3 The Company’s share in assets.548 110.514 1.4 Although the Company has less than 20 percent shareholding in National Refinery Limited.995 38.00 2.463 Less: Shown under current assets . 2011 National Refinery Limited 582. The recoverable amount has been estimated based on a value in use calculation.00 Attock Refinery Limited 1.334 334 3.105 1.926.15% (2011: 6.13% (2011: 20%). revenues and profit of associated companies based on the most recent available financial statements is as follows: Assets Liabilities Revenues Profit Holding after tax Rupees (‘000) % March 31.584.00 1. the recoverable amount of investment in Attock Refinery Limited exceeds its carrying amount.68 Attock Information Technology Services (Private) Limited 9.910 76.987 1.681. These calculations have been made on discounted cash flow based valuation methodology which assumes gross profit margin of 1.099 30.444 440 4.00 Attock Refinery Limited 1.893 37.911 385.733 15.883 354.037 1.488.090. These calculations have been made on discounted cash flow based valuation methodology which assumes an average gross profit margin of 5.6 Based on a valuation analysis carried out by the Company.966 March 31.13% (2011: 20%). these companies have been treated as associates since the Company has representation on their Board of Directors.638 1. liabilities.335.5% (2011: 4%) and capital asset pricing model based discount rate of 20.694 2.108 10.Notes to and forming part of the Financial Statements For the year ended June 30. 2012 13.5% (2011: 4%) and capital asset pricing model based discount rate of 20. 13. 2012 2011 Rupees (‘000) 14 LONG TERM PREPAYMENTS Prepaid rent 16.189 1.366) (15.673.79% (2011: 2.404.022 1.5%). The recoverable amount has been estimated based on a value in use calculation. 2012 is based on a valuation analysis carried out by an external investment advisor engaged by the Company.
unsecured 31.141 Attock Refinery Limited 791 702 13. 15.196.264 10.027 6.297.842.1 It includes the Company’s share of pipeline stock amounting to Rs 2.000 Provision for doubtful debts (31.777 14.899 Others 933.note 15.076.191.351. TRADE DEBTS Considered good Secured 1.602 thousand (2011: Rs 2.000) .890 6.2 This includes items costing Rs 4.027 6.705 15.310 9.895 5.352.225.559 5.676 15.292 Considered doubtful .039.151 thousand (2011: Nil) as a result of decline in the selling prices of certain petroleum products with effect from July 01.191.973. 15. STOCK IN TRADE Petroleum products .124.629 8.602 1.255. 2012 2011 Rupees (‘000) 16.681 1.208. 2012.724 Packing material 1.336 2.981 4.377.310 9.358 thousand (2011: Nil) which have been valued at net realisable value amounting to Rs 3.752 thousand (2011: Rs 1.377.212 thousand) and Rs 1.1 13.292 Governance Financial Analysis Financial Statements 16.2 18.104.22.1687.899 Annual General Meeting Business Review Attock Petroleum Limited Annual Report 2012 81 .501 Attock Cement Pakistan Limited 12.555 Pakistan Oilfields Limited 29.000 31.246.164. 2012 2011 Rupees (‘000) 15.1 and 15.226.note 16.000) (31.082 14.148.695 thousand) held by Pak-Arab Pipeline Company Limited and Pak Arab Refinery Limited respectively.220.351.1 Due from related parties Attock Gen Limited 13.616 Unsecured Due from related parties .
900 312.060) (318.247 41.100 7.622 Other receivables 28.940 1.100 82 Attock Petroleum Limited Annual Report 2012 .695 534.940 Balance at end of the year 46.100 Others .918 736.749 17.940 1.1 Workers’ profit participation fund Balance at beginning of the year 1. 181 419.900) Amount paid to Fund’s trustees 348.459.083 843. ADVANCES.119 1.904 72.970 Employees against expenses Executives 101 279 Other employees 1.528 47.Notes to and forming part of the Financial Statements For the year ended June 30.788 57.note 17.515 Accrued income on bank deposits 20. 332 Due from related parties .060 Amount allocated for the year .398 304.note 26 (303.1 46.044 Attock Cement Pakistan Limited 196 Workers’ profit participation fund .081 33. PREPAYMENTS AND OTHER RECEIVABLES Advances .868 Short-term prepayments 32.unsecured APL Gratuity fund 2.638 Price differential claim receivable from the Government Receivable from oil marketing companies under freight pool 339.155 54.115 Current account balances with statutory authorities in respect of: Sales tax 40. 936 1.703 17.072 1.208 787.considered good Suppliers 303.072 1.184 32.788 Claims receivable .) Ltd.551 27.368 Trade deposits and short-term prepayments Trade deposits 8. 2012 2012 2011 Rupees (‘000) 17.690 Attock Information Technology Services (Pvt. DEPOSITS.530 5.173 1.727 Federal excise duty and petroleum levy 17.522 532.
947 1.930 18.05% per annum (2011: 11.548 327.811. 2012 2011 Rupees (‘000) 18.1 Short term deposits of Rs 81.761 Later than six months but not later than one year 545.360 (2011: Nil) units 109. Attock Petroleum Limited Annual Report 2012 83 .607 (2011: Nil) units 109.060.320 Meezan Sovereign Fund 1.730 5.813. Annual General Meeting 19.503 545.015.1 Upto three months - 812.014 thousand (2011: Rs 68.467 6.169 Later than three months but not later than six months - 203.216.2 327.2 Balances in short term deposits and saving accounts earned interest/mark-up at weighted average rate of 11.015.274 thousand) 353.31% per annum (2011: Rs 12.218.037 19.74% per annum).633 UBL Liquidity plus Fund 1.859. 2011: US $ 2.017 (2011: Nil) units 54. 2011: US $ 103 thousand) 958.Business Review 2012 2011 Rupees (‘000) 18.168 1.000 3.1 Balance of short term investment in treasury bills e arned interest at weighted average rate of 12.717.564 (2011: Nil) units 54.468 6.500.000 On interest/mark-up bearing saving accounts (includes US $ 103 thousand.783 5.719 826.570 Bank balances On short term deposits 5.999 On current accounts (includes US $ 189 thousand.665 Governance Financial Analysis Financial Statements 19.07% per annum).064 672.Note 18. SHORT TERM INVESTMENTS Held to maturity investment in treasury bills at amortized cost .Note 18.089.503 1.665 873.930 Investment in mutual funds at fair value through profit or loss .515 thousand) were under lien with banks against letters of guarantees and letters of credits.2 Units of opened ended mutual funds NAFA Government Securities Liquid Fund 10. CASH AND BANK BALANCES Cash in hand 1.164 Askari Sovereign Cash Fund 540.
262 11.008 6.724.697 28.246.961 Donations .3 2.387 105.949 Subscription and fees 1.713 Repairs and maintenance 59.804 Export sales 5.808 3.705 993.200 Hospitality income 8.437 127.165.1 175.181.333 Legal and professional charges 7.315 84 Attock Petroleum Limited Annual Report 2012 .447 147.315.474 Travelling and staff transport 24. gas and water 16.458 6.337 Printing and stationery 12.956.812.579 90.659.766 Insurance 27.note 12.439 145.825 120.868 Mark-up on late payments 1.931 23. taxes and other fees .183) (284.597.468 2.036.507 22.174.956 Gain on sale of property.442 23.255.978.note 23.168 Depreciation . 82.774 3.321. OPERATING EXPENSES Salaries and benefits 292.064 Trade debts written-off during the year 642 Others 51.Notes to and forming part of the Financial Statements For the year ended June 30.292 Communication 7.670 210.815 7.322 1. SALES Local sales 172.536 Exchange gain .note 23.860 Auditor’s remuneration .307.2 .405 6.416 Electricity.405 20.895) (5.001 889.144.795 6.762 Petroleum levy 5.705) 148. COST OF PRODUCTS SOLD Opening stock 5.326.891 Rebates/discount (514. 555 Advertising and publicity 8.187.note 23.246.359 707.774 108.584 104.935 13.620 127.925) 176.721 Excise duty 30.805 Other income 18.1 171.160. OTHER OPERATING INCOME Commission and handling income 1.078. 2012 2012 2011 Rupees (‘000) 20.282 Purchase of petroleum products and packing material 141.933.746 78.134 Rent.001 Exchange loss 21.764.806 16. plant and equipment 477 1.966 21.356 611.098 Tender and joining fee 9.459 Transportation 8.176 1.558 42.680.214 11.011 3.211 1.087 Gross sales 177.930 Closing stock (4.
3 Auditor’s remuneration Annual audit 1.002 1.000 Attock Petroleum Limited Annual Report 2012 85 .760.100 1.526.060 318.047 682.000 1.2 Rent. taxes and other fees include Rs 79.806 415.425 1.845 Gain on re-measurement of fair value of open ended mutual fund units 27.706 Annual General Meeting 27.844 1.838 Governance Financial Analysis Financial Statements 26.574.1 23.000 .001 24.425 1. INCOME ON BANK DEPOSITS AND SHORT TERM INVESTMENTS Income on bank deposits 781. audit of staff funds and special certifications 422 358 Tax services 1. No director or his spouse had any interest in the donations made by the Company. FINANCE COST Bank charges 15.000 1.470.460 Out of pocket expenses 250 183 2.For the year 1.798 20.706 thousand) paid under operating lease agreements.468 873. OTHER CHARGES Workers’ profit participation fund 303.249 661.993 Income from short term investments measured at amortised cost 80.900 Workers’ welfare fund 112.822 Late payment charges 1.666 25.211.665 889.427 962.000 1.760.575) 1.965 437.For prior years (103. 2012 2011 Rupees (‘000) 23.774 3.294 88.195.000 Review of half yearly financial statements.364 thousand (2011: Rs 51.000 Deferred 56.Business Review 23. PROVISION FOR TAXATION Current tax .761.905 118.
037 Short term investments .12) Others (1.13) Average effective tax rate charged to income 27.206 86 Attock Petroleum Limited Annual Report 2012 .55) Tax effect of income exempt from tax (0. 812.33) (0.00 2.813.315 4.00 Effect of surcharge .169 6.120 Basic and diluted earnings per share (Rupees) 59.58 2012 2011 Rupees (‘000) 29. CASH AND CASH EQUIVALENTS Cash and bank balances 6.1 Reconciliation of tax charge for the year Applicable tax rate 35. Tax effect of income taxed under final tax regime (6.11 (7. 2011 % 35. 2012 2012 % 27.03 28.813.511 Weighted average number of ordinary shares in issue during the year (in thousand) 69.120.730 5.52) 29.030.26 EARNINGS PER SHARE Profit for the year (Rupees in thousand) 4.730 6.256.61 61.Notes to and forming part of the Financial Statements For the year ended June 30.120 69.17) Tax effect of share of profit of associated companies taxed on the basis of dividend income (0.218.
407. 2012 investments or loss Rupees (‘000) Financial Assets Maturity up to one year Trade debts 15.665 23.434 6.903. 16.045.162.602 Other financial liabilities Total Rupees (‘000) Financial Liabilities Maturity up to one year Trade and other payables 16.501.000 .576.732.500. - 777.194 Other financial liabilities Total Rupees (‘000) Financial Liabilities Maturity up to one year Trade and other payables 10. .930 Cash and bank balances 1.037 11.813.584 11.394 .729 16.297.221 16.935 .665 873.316 209. 15.309.313. 1.000 . . .394 Short term investments .730 17.503 327.316 11.407.221 Maturity after one year Long term deposits 245.268 10.112.218.310 . FINANCIAL INSTRUMENTS AND RISK MANAGEMENT 30.457.903.351.584 Attock Petroleum Limited Annual Report 2012 87 . deposits and other receivables 419.717.729 245. 1.351.950 16.084.037 3.930 . 545. deposits and other receivables 777.935 Short term investments . 419.168 Cash and bank balances 1.015. 5.503 327.930 .Business Review 30.730 5. 6.162.292 .1 Financial assets and liabilities Loans and Held to Fair value Total Receivables maturity through profit June 30. 9.112.292 Advance.268 Maturity after one year Long term deposits 209.950 Governance Financial Analysis Financial Statements Annual General Meeting Loans and Held to Fair value Total Receivables maturity through profit June 30. 2011 investments or loss Rupees (‘000) Financial Assets Maturity up to one year Trade debts 9.264 4.015.310 Advance.297.
783 5.602 1.015. liquidity risk and market risk (including currency risk.297.315 117.190. The Company’s overall risk management policy focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. 2012 30.197 Others 933.930 Bank balances A1+ 6.216.076.3 FINANCIAL RISK MANAGEMENT 30.842.377.015 A2 109.838 6.2 Credit quality of financial assets The credit quality of the Company’s financial assets have been assessed below by reference to external credit ratings of counterparties determined by The Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited (JCR-VIS).168 1.467 30.098.226.811.015.394 777.935 Short term investments Counterparties with external credit rating AA+ 273.503 1.351.Notes to and forming part of the Financial Statements For the year ended June 30.310 9.292 Advances.616 Due from related parties 13.202.548 Counterparties without external credit rating 545. The counterparties for which external credit ratings were not available have been assessed by reference to internal credit rating determined based on their historical information for any defaults in meeting obligations. 88 Attock Petroleum Limited Annual Report 2012 .681 1.930 873.629 A1 500.1 Financial risk factors The Company’s activities expose it to a variety of financial risks: credit risk.453 5.236 6. 2012 2011 Balance Balance Rating Rupees (‘000) Trade debts Counterparties with external credit rating A1+ 791 702 Counterparties without external credit rating Secured against bank guarantee 1. interest rate risk and price risk).3. deposits and other receivables Counterparties without external credit rating 419.777 15.117 AA 54.
551.980 18.268 - (a) Governance Financial Analysis Financial Statements Annual General Meeting Attock Petroleum Limited Annual Report 2012 89 .912 1.679. 209.635 thousand (2011: Rs 6. Less than Above 1 year 1 year Rupees (‘000) At June 30.679. 2012. As of June 30.903. The Company’s credit risk is primarily attributable to its trade debts and balances at banks. 2012 Long term deposits .221 At June 30.367 11. The Company manages liquidity risk by maintaining sufficient cash and cash equivalents.412.635 6.635 52.729 Trade and other payables 16.575.213.316 Trade and other payables 10.108 4. The credit risk on liquid funds is limited because counter parties are banks with reasonably high credit ratings.135 thousand) were past due but not impaired. 2011 Long term deposits .938.162.488 Above 9 months 71. The ageing analysis of these trade receivables is as follows: 2012 2011 Rupees (‘000) Up to 3 months 4. The amounts disclosed in the table are undiscounted cash flows.455 6 to 9 months 2. trade debts of Rs 11.412. The table below analyses the Company’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the maturity date.135 (b) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.825 3 to 6 months 4. 245.Business Review 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.669. Credit sales are primarily to related parties.
A 10% weakening of the functional currency against USD at June 30 would have had the equal but opposite effect of these amounts.480. If interest rates had been 1% higher/lower with all other variables held constant. The analysis assumes that all other variables remain constant.722 thousand (2011: Rs 20. Currency risk arises mainly from future commercial transactions or receivables and payables that exist due to transactions in foreign currencies.773 thousand) higher/ lower. Applicable interest rates for financial assets have been indicated in respective notes.Notes to and forming part of the Financial Statements For the year ended June 30. whether those changes are caused by factors specific to the individual financial instrument or its issuer.777 thousand (2011: Rs 11. The Company has no long term interest bearing financial assets and liabilities whose fair value or future cash flows will fluctuate because of changes in market interest rates.623 thousand) which are subject to interest rate risk. mainly as a result of higher/lower interest income from these financial assets.142 thousand) which were subject to currency risk. Other price risk Price risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk).026 thousand (2011: Rs 94.218 thousand (2011: Rs 201. profit after tax for the year would have been Rs 157.114 thousand).794. or factors affecting all similar financial instruments traded in the market. A 10% strengthening of the functional currency against USD at June 30 would have decreased profit and loss by Rs 2. Interest rate risk Interest rate risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Financial assets include Rs 27. At the year end the Company is not exposed to price risk since there are no financial instruments. 2012 (c) (i) Market risk Currency risk (ii) (iii) 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. 90 Attock Petroleum Limited Annual Report 2012 . whose fair value or future cash flows will fluctuate because of changes in market prices. Financial assets include balances of Rs 20.
Expense recognised in profit and loss account (8.320) Asset recognised in the balance sheet (2. In order to achieve the above objectives.748) Net liability 2. the Company may adjust the amount of dividends paid to shareholders. 31. STAFF RETIREMENT BENEFITS The latest acturial valuation of the defined benefit plan was conducted as at June 30. if required.804 Unrecognised actuarial gains 826 Unrecognised past service cost (6.1 The amounts recognised in the balance sheet: Present value of defined benefit obligations 13.30. maximize return of shareholders and optimize benefits for other stakeholders to maintain an optimal capital structure and to reduce the cost of capital. 2012 using the projected unit credit method.690 Governance Financial Analysis Financial Statements Annual General Meeting Business Review Attock Petroleum Limited Annual Report 2012 91 .552 Fair value of plan assets (10.748 Balance as at June 30. return capital to shareholders.690) 31.4 Fair value of financial assets and liabilities The carrying value of financial assets and liabilities approximate their fair value. issue new shares through bonus or right issue or sell assets to reduce debts or raise debts.2 Capital risk management The Company’s objectives when managing capital are to ensure the Company’s ability not only to continue as a going concern but also to meet its requirements for expansion and enhancement of its business. 30.3. 2.2 The amounts recognised in the balance sheet are as follows: Balance as at July 01. Since inception the gearing ratio of the Company is nil and the Company has financed all its projects and business expansions through only equity financing and never resorted to debt financing.058) Contributions made during the year 10. Details of the defined benefit plan are: 2012 Rupees (‘000) 31.
428 Expense recognised in profit and loss account 8.748 Acturial gain on obligation (826) Present value of defined obligation as at June 30.505 Past service cost 4.552 Fair value of plan assets (10.3 The amounts recognised in profit and loss account are as follows: Current service cost 2. 31.8 Deficit as at the year end is as follows: Present value of defined benefit obligation 13.482 thousand to its defined benefit gratuity plan.505 Current service cost 2.748 During the year 2012-13 the Company expects to contribute Rs 3.058 31. Interest cost 1.552 31.748) Deficit 2.4 Changes in the present value of defined benefit obligation are as follows: Present value of defined obligation as at July 01.804 31.125 Past service cost 10.243 92 Attock Petroleum Limited Annual Report 2012 . 2012 2012 Rupees (‘000) 31.125 Interest cost 1. wages and benefits as appearing in note 23 include amounts in respect of the following: Provident fund 4.058 12.25% Expected rate of increase in salaries 11% 2012 Rupees (‘000) 31.7 Significant acturial assumptions at the balance sheet date are as follows: Discount rate 13. 13.9 Salaries. 31. 10. Contributions during the year 10.6 Plan assets consist of balance held with bank on interest/mark-up bearing saving account.Notes to and forming part of the Financial Statements For the year ended June 30.185 Gratuity fund 8.748 Fair value of plan assets as at June 30.25% Expected rate of return on plan assets 13.5 Changes in fair value of plan assets are as follows: Fair value of plan assets as at July 01.
405 Sale of services 254 181 The Attock Oil Company Limited Purchase of services 40.392 472.383 Sale of services 2.791 63.841 Sale of petroleum products 9.609 13.123 3.131.060 318.513 Sale of petroleum products 17.127 Handling income 984.174 Pakistan Oilfields Limited Purchase of petroleum products 220.469 174.057 Attock Gen Limited Purchase of services .943 Mark-up earned on late payments 1.173 Other related parties Contribution to staff retirement benefits plans APL Employees provident fund 4.461 Purchase of services 77.709 6.510 Sale of petroleum products 253. were as follows: 2012 2011 Rupees (‘000) Associated companies Governance Attock Refinery Limited Purchase of petroleum products 41.900 Attock Petroleum Limited Financial Analysis Financial Statements Annual General Meeting Annual Report 2012 93 .294.491 19.517.169 Purchase of services 6.038 Commission and handling income 330.812 National Refinery Limited Purchase of petroleum products 75. other than remuneration to the chief executive.834.589.249 661. 184 Sale of petroleum products 18.Business Review 32.048.566 21.078 Sale of petroleum products 662.558 3.360.829 Purchase of services 16.195.058 Contribution to Workers’ profit participation fund 303. TRANSACTIONS WITH RELATED PARTIES Aggregate transactions with related parties.185 APL Gratuity fund 8.629 689.708 Attock Hospital (Private) Limited Purchase of medical services 2. directors and executives of the Company under their terms of employment disclosed in note-33.727 870.368 48.704 Attock Cement Pakistan Limited Purchase of services 4.737 Sale of services 949 Attock Information Technology Services (Private) Limited Sale of services 4.038 34.743 2.781 9.972 217.487 Late payment charges 1.485 290.035 1.
2012 SEGMENT REPORTING 33.402.089 1.595 6.006 27.498 7.010 2.1 As described in note 1 to these financial statements the Company markets petroleum products.231 Leave passage 716 650 223 193 450 338 29.656 15.667 1. Revenue from external customers for products of the Company are as follows: 2012 2011 Rupees (‘000) Product High Speed Diesel 83.Notes to and forming part of the Financial Statements For the year ended June 30.934 4.499 4. 34.638 1.298 9.286 1.282 37.518 176.419 Company’s contribution to provident. REMUNERATION OF CHIEF EXECUTIVE.229 65. pension and gratuity funds 2.042 876 11.158 5.812.862 12. 3.384.277 10.295.793.518 51.533 1.589.526 .988 No.036.129 38.2 Revenues of Rs 18. of person(s) 1 1 1 1 23 15 33.428.709 11.865 2.154 16.139 1.347 1.344 8.391.651 13.064 7.131 Housing and utilities 3.437 127.392 Others 9.772 Premier Motor Gasoline 22.966 33.428.574 2.048.943 thousand) are derived from a single external customer.668 Other perquisites and benefits 1.201 Bonus 13.347 Furnace Fuel Oil 48. DIRECTORS AND EXECUTIVES Chief Executive Director Executives 2012 2011 2012 2011 2012 2011 Rupees (‘000) Managerial remuneration 8.675.301.609 thousand (2011: Rs 13. 94 Attock Petroleum Limited Annual Report 2012 .596 2.937 Bitumen 13.278 20.747.
400 thousand for approval of the members in the Annual General Meeting to be held on October 17. Financial Statements Annual General Meeting Shuaib A. 36. 34. 2012. 2012. amounting to Rs. Executives were also provided with use of Company maintained cars and medical facilities as per Company policy. DATE OF AUTHORISATION These financial statements were authorised for issue by the Board of Directors of the Company on September 15. 2012 @ Rs. the information regarding capacity has no relevance.1 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. 2012 have proposed a final dividend for the year ended June 30. In addition.929 thousand). four non-executive directors of the Company were paid meeting fee aggregating Rs 2. Financial Analysis 37.012 thousand (2011: Rs 1.Business Review 34. 2.2 Governance 35.50 per share. NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE The Board of Directors in its meeting held on September 15. 32. Malik Chief Executive Abdus Sattar Director Attock Petroleum Limited Annual Report 2012 95 . CAPACITY AND PRODUCTION Considering the nature of the Company’s business.246.
to transact the following business: NOTES: PARTICIPATION IN THE ANNUAL MEETING: A member entitled to attend and vote at the meeting is entitled to appoint any other person/ representative as his/her proxy to attend and vote.e. 2000 issued by the Securities & Exchange Commission of Pakistan.each. 10/.e. the account holders or sub-account holders and/or the persons whose securities are in group account and their registration details are uploaded as per the regulations.m. Rawalpindi. ORDINARY BUSINESS 1. In case of individuals.50 per share of Rs. Proxies in order to be effective must be received at the Registered Office of the Company duly stamped and signed not less than 48 hours before the meeting. on October 17. To approve a final cash dividend of 325% i. ii. Morgah. the account holders or sub-account holders and/or the persons whose securities are in group account and their registration details are uploaded as per the regulations. BY ORDER OF THE BOARD A. FOR ATTENDING THE MEETING: i. 32. thus making a total of Rs. Morgah Rawalpindi September 26. the Board of Directors’ resolution/power of attorney with specimen signature of the nominees shall be produced (unless it has been provided earlier) at the time of the meeting.per share i. To receive. FOR APPOINTING PROXIES: i. Rs. shall authenticate their identity by showing their original Computerized National Identity Card (CNIC) or original passport at the time of attending the meeting. CDC Account Holders will further have to follow the under mentioned guidelines as laid down in Circular 1 dated January 26. In case of individuals. 175% already paid to the shareholders. 3.e. 2012. as recommended by the Board of Directors in addition to the interim dividend of Rs. Rehmat Ullah Bardaie Company Secretary Registered Office: Attock House. shall submit the proxy form as per the above requirements. 2013 and to fix their remuneration. 500% for the year ended June 30.Notice of the Annual General Meeting Notice is hereby given that the 17th Annual General Meeting (being 28th General Meeting) of the Company will be held at Morgah Club.50 per share i. 2012 at 10:00 a. 50/. 2012. 17. In case of corporate entities. 2012 B. To appoint auditors for the year ending June 30. 96 Attock Petroleum Limited Annual Report 2012 . 2. consider and adopt the audited financial statements of the Company together with Directors’ and Auditor’s Reports for the year ended June 30.
addresses and CNIC numbers shall be mentioned on the form. mounting circular debt and less than satisfactory growth and improvement in GDP and macro economic indicators respectively.Business Review ii. Members who may be seeking exemption from deduction of income-tax or are eligible for deduction at a reduce rate are requested to submit a valid tax certificate or necessary documentary evidence as the case may be. iii. State Life Building-3. Major change in financial position of investee companies since the date of last resolution Changes in financial position are as follows: Attock Petroleum Limited Annual Report 2012 97 . the Board of Directors resolution/power of attorney with specimen signature of the person nominated to represent and vote on behalf of the corporate entity. In case of corporate entities. Karachi at the close of business on October 09. CHANGE IN ADDRESS: Governance Members are requested to promptly notify any change of address to the Company’s Share Registrar. 2000. iv. Members desiring non-deduction of zakat are also requested to submit a declaration for nondeduction of zakat. The proxy form shall be witnessed by two persons whose names. Ground Floor. Ziauddin Ahmed Road. 1984 STATEMENT UNDER SRO 865 (1)/2000 DATED DECEMBER 6. Dr. Reasons for not having investment made Due to change in the Government policies. CLOSURE OF SHARE TRANSFER BOOKS: The Share Transfer Books of the Company will remain closed and no transfer of shares will be accepted for registration from October 10. Transfers received in order at the office of the Company’s Share Registrar. Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form. will be treated in time for the purpose of payment of final cash dividend if approved by the Shareholders. 2007 shareholders approved investment in following Associated Companies: National Refinery Limited Attock Refinery Limited Pakistan Oilfields Limited Attock Cement Pakistan Limited (NRL) (ARL) (POL) (ACPL) Except for ARL. shall be submitted (unless it has been provided earlier) along with proxy form to the Company. 2012 (both days inclusive). STATEMENT UNDER SECTION 160(1)(b) OF THE COMPANIES ORDINANCE. Necessary advice in either case must be submitted within not more than 15 days from the date of dividend entitlement. Financial Analysis In the AGM held on September 27. Financial Statements 1. no investment has been made in any other associated concern. 2012 Annual General Meeting 2. 2012 to October 17. THK Associates (Private) Limited. v. The proxies shall produce their original CNIC or original passport at the time of meeting.
Per Share 164.37 70.i.21 90. 2007 52.14 Rs. 2012* Rs. 98 Attock Petroleum Limited Annual Report 2012 .19 138. Break-up value per share: Name of the Company NRL ARL POL ACPL March 31. Earnings per share (restated): Name of the Company NRL ARL POL ACPL Year ended June 30.72 7.78 25.07 141.11 9.63 45.30 66. 2011 82.00 146.96 309.62 92.77 173.14 25.10 * The above figures are based on latest available financial statements.44 10.62 39.05 30. Per Share ii.56 8.30 44.18 Year ended June 30.52 308. 2011 March 31. 2012* 27.90 Nine Months ended March 31. 2007 June 30.
Depreciation and Amortization Environment. Health & Safety Earnings Per Share Enterprise Resource Planning Furnace Oil Gross Domestic Product Government of Pakistan High Speed Diesel Health. Safety and Environment International Federation of Accountants Khyber Pakhtunkhwa Kilo Watt Light Emitting Diode Metric Ton Ministry of Petroleum & Natural Resources National Refinery Limited Oil Companies Advisory Committee Oil and Gas Regulatory Authority Oil Marketing Company Overseas Oil Trading Company Pakistan Pak-Arab Refinery Company Premier Motor Gasoline Pakistan Oilfields Limited Pakistan State Oil Company Limited Private Rupees Shell Pakistan Limited Total-Parco Pakistan Limited United Arab Emirates United States Dollar Workers’ Profit Participation Fund Workers Welfare Fund Attock Petroleum Limited Governance Annual Report 2012 99 Financial Analysis Financial Statements Annual General Meeting .TON MP & NR NRL OCAC OGRA OMC OOTCL PARCO PMG POL PSOCL Pvt. SPL TPPL UAE US$ WPPF WWF Attock Cement Pakistan Limited Annual General Meeting Attock Petroleum Limited Attock Refinery Limited Automated Tank Gauge Byco Petroleum Pakistan Limited (Marketing) Bakri Trading Company Pakistan Limited Central Depository Company of Pakistan Chief Executive Officer Chief Financial Officer Computerized National Identity Card Compressed Natural Gas Chevron Pakistan Limited Earnings before Interest.Glossary Business Review ACPL AGM APL ARL ATG BPPL(MKTG) BTCPL CDC CEO CFO CNIC CNG CPL EBITDA EHS EPS ERP FO GDP GoP HSD HSE IFAC KPK KW LED M. Taxes. Rs.
. Rawalpindi and at any adjournment thereof. Five Rupees Revenue Stamp Signature of Shareholder (The signature should agree with the specimen registered with the Company) Dated this day of 2012 Signature of Proxy Witnesses: 1. For CDC Account Holders / Corporate Entities In addition to the above the following requirements have to be met. II./Passport No. Rawalpindi not less than 48 hours before the time of holding the meeting. Morgah. at Morgah Club. Morgah. Important: 1. Signature 2. duly completed and signed. III.m. No. Attested copies of CNIC or the passport of the shareholders and the proxy shall be provided with the proxy form. Signature Name Name Address Address CNIC/Passport No. CNIC No. This Proxy Form.D. 2012 at 10:00 a. The proxy shall produce his/her original CNIC or original passport at the time of the meeting. the Board of Directors resolution / power of attorney with specimen signature shall be submitted along with proxy form to the Company. 2. CNIC/Passport No. of being ordinary shares as per FORM OF PROXY a member(s) of Attock Petroleum Limited and holding hereby appoint or failing him/her as my/our proxy to vote and act for me/our behalf at the 17th Annual General Meeting of the Company to be held on October 17. I. must be received at the Registered Office of the Company at Attock House.17th Annual General Meeting ATTOCK PETROLEUM LIMITED I/We M/s Share Register Folio No. In case of a corporate entity. of of CDC Participant I.
The Secretary. Pakistan. Attock Petroleum Limited Attock House. . Morgah Rawalpindi.
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