SUBMITTED BY:

● SYEDA FATIMA USMAN (65236)

● HUNAIN IMRAN (65368)
● HANIYA BATOOL (65282)
● HURAIBAH BATOOL (65283)

COURSE TITLE : FINANCIAL ACCOUNTING

COURSE INSTRUCTOR: M. SIKANDAR IQBAL
 FINAL TERM REPORT
TASK GIVEN:
● Visit the assigned company and gather the latest financial report, accounts vouchers and
details about the working accounts department.
● Prepare summary of financial results and accounting policies given in notes.
● Mention the accounting software used by the company.
 PAKISTAN PETROLEUM LIMITED
INTRODUCTION:
● PPL has been a pioneer of oil and natural gas , and a frontline player in the
energy sector since the mid-1950s.

● Its operations span across various regions in Pakistan, including Sindh,

Balochistan, Punjab, and Khyber Pakhtunkhwa.

● PPL contributes over 20% of the country's total natural gas supplies.

● PPL has a diverse portfolio of assets, including producing fields, exploration

blocks, and development projects.
 VISION
To achieve energy self-sufficiency for
Pakistan by becoming the most successful
and efficient discoverer and producer of oil
and gas.
MISSION
To serve the people of Pakistan in an area critical to
their economic development by employing, training
and developing the best people available and
empowering them to deliver extraordinary results .
 STRATEGIC GOALS ACCOUNTING SOFTWARE

● PPL relies on SAP ( Systems, Applications &

● Promote leadership, empowerment, and
Products in Data Processing) for all operation of
accountability while pursuing the highest Financial Accounting (FI), Controlling (CO).
standards of integrity.

● Advocate teamwork aligned with business

objectives, promote innovation and value
creation, and ensure excellence in all spheres
of performance.

● Minimize carbon footprint and contribute to

a sustainable environment.
 STATEMENT OF FINANCIAL POSITION :
2020 2021
ASSETS
NON-CURRENT ASSETS
Fixed assets 137,840,377 146,583,654
Property plant and equipment 113,116 211,183
Intangible assets 137,953,493 146,794,837
Long-term investments 5,975,953 7,992,419
Deposit with GoP for equity stake in Reko Diq 34,106,250 -
Long-term loans 61,689 53,159
Long-term deposits 7,676 7,676
178,105,061 154,848,091
CURRENT ASSETS 5,495,842 4,568,484
Stores and spares

Trade debts 365,791,716 282,284,931

Loans and advances 558,389 698,991
Trade deposits and short-term prepayments 287,196 258,088
Interest accrued 264,349 514,133
Current maturity of long-term loans 27,929 22,714
Current maturity of long-term deposits 1,505,250 1,205,357
Current maturity of long-term receivables 122,051 138,560
Other receivables 2,656,717 3,089,296
Short-term investments 66,407,345 85,012,018
Cash and bank balances 3,723,282 4,242,627
446,840,066 382,035,201
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Share capital 27,209,836 27,209,836
Reserves 407,664,863 363,317,888
NON-CURRENT LIABILITIES 434,874,699 390,527,724
Provision for decommissioning obligation 32,650,443 26,928,206
Deferred liabilities 3,328,024 3,082,550
Deferred taxation – net 28,780,165 29,830,059
CURRENT LIABILITIES 64,758,632 59,840,815
Trade and other payables 87,026,658 65,962,634
Unclaimed dividends 1,001,150 521,910
Current maturity of lease liabilities 1,434,170 433
Taxation net 35,849,818 20,029,776
125,311,796 86,514,753
TOTAL LIABILITIES 190,070,428 146,355,568
TOTAL EQUITY AND LIABILITIES 624,945,127 536,883,292
STATEMENT OF FINANCIAL POSITION :
 STATEMENT OF FINANCIAL POSITION :

ASSETS:
Total assets have increased from RS.
536,883,292 to RS.624,945,127

LIABILITIES AND EQUITY:

Total liabilities and equity has also increased from
RS. 536,883,292 to RS. 624,945,127.
 STATEMENT OF PROFIT OR LOSS
2022 2021

Revenue from contracts with customers 202,199,183 148,428,824

Operating expenses -40,090,655 -40,077,127
Royalties and other levies -30,500,334 -22,057,220
-70,590,989 -62,134,347
Gross profit 131,608,194 86,294,477
Exploration expenses -23,734,886 -10,227,085
Administrative expenses -4,600,662 -3,741,451
Finance costs -1,248,823 -1,107,072
Reversal of provision for doubtful debts – net 41,929 691,835
Share of loss of associate -2,607,077 -
Other charges -15,471,835 -7,384,799
83,986,840 64,525,905
Other income 14,143,911 4,055,713
Profit before taxation 98,130,751 68,581,618
Taxation -44,584,587 -16,150,218
Profit after taxation 53,546,164 52,431,400
STATEMENT OF PROFIT OR LOSS
 STATEMENT OF PROFIT OR LOSS

REVENUE:
Total revenue have increased from RS. 148,428,824 in
2021 to RS.202,199,183 in 2022

EXPENSES:
Total expenses increased from RS.-40,077,127 in 2021 to
RS.-40,090,655 in 2022.

PROFIT AFTER TAXATION:

Total Profit after taxation has increased from RS.
52,431,400 in 2021 to RS.53,546,164 in 2022.
 STATEMENT OF CASH FLOW
CASH FLOWS FROM OPERATING
ACTIVITIES 2022 2021

Receipts from customers 153,527,157 160,761,862

Receipts of other income 6,084,381 245,256

Payment to suppliers / service providers and

employees - net -27,895,670 -36,515,992

Payment of indirect taxes and Government

levies including royalties -60,485,350 -53,310,893

Income tax paid -29,814,439 -17,459,889

Payment of decommissioning obligation -121,079 -159,251

Finance costs paid -39,338 -957

Long-term loans – net -13,745 -14,233

Net cash generated from operating

activities 41,241,917 53,545,903
CASH FLOWS FROM INVESTING
ACTIVITIES 2022 2021
Capital expenditure -22,062,642 -13,514,628

Proceeds from sale of property plant and

equipment 82,223 33,865

Investments - net -13,033,925 13,305,561

Capital contribution in POOL -4,161,250 -
Capital contribution in PPLA -1,593,138 -336,819

Deposit with GoP for equity stake in Reko

Diq -34,106,250 -
Long-term deposits -299,893 -30,107
Long-term receivables 16,509 56,186
Finance income received 6,034,422 3,723,689

Net cash (used in) / generated from

investing activities -69,123,944 3,237,747
CASH FLOWS FROM FINANCING
ACTIVITIES 2022 2021

Payment of lease liabilities -53,552 -19,342

Dividends paid -9,044,197 -6,580,461

Net cash used in financing activities -9,097,749 -6,599,803

Net (decrease) / increase in cash and

cash equivalents -36,979,776 50,183,847

Cash and cash equivalents at the

beginning of the year 69,909,652 19,725,805

Cash and cash equivalents at the end of

the year 32,929,876 69,909,652
 STATEMENT OF CASH FLOW

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash flow from operating activities has witnessed a
decrease from RS. 53,545,903 in 2021 to RS. 41,241,917 in
2022.

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash flow from investing activities has witnessed a
increase from RS.3,237,747 in 2021 to RS.-69,123,944 in
2022.

CASH FLOWS FROM FINANCING ACTIVITIES:

Cash flow from financing activities has witnessed a
decrease from RS. 69,909,652 in 2021 to RS.32,929,876 in
2022
 SIGNIFICANT ACCOUNTING POLICIES
4.1 Property, plant and equipment
OWNED ASSETS
Owned assets, including property, plant, and equipment, are recorded at cost less accumulated depreciation
and impairment losses. Freehold land and leasehold land are stated at cost, while capital work-in-progress is
transferred to property, plant, and equipment upon completion. The cost of assets includes acquisition costs,
direct labor, and other directly attributable expenses.Assets are assessed in groups known as Cash Generating
Units (CGUs), which generate independent cash inflows. Impairment losses may be reversed if there is a
change in estimates, up to the carrying amount without impairment.

4.2 Lease liability and Right-of-use asset (ROUA)

● The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the interest rate implicit in the lease, or if that rate cannot be
readily determined, the Group's incremental borrowing rate.
● Leases that have terms of less than twelve months or leases on which the underlying asset is of low
value are recognised as an expense in the statement of profit or loss when incurred.
4.10 Financial assets and financial liabilities

Financial assets Classification

Financial assets are classified in the following categories: at amortized cost, at fair value through other
comprehensive income and at fair value through profit or loss. The classification depends on the purpose for
which the financial assets were acquired. The management determines the classification of its financial assets at
initial recognition and, where allowed and appropriate, re-evaluates the designation at each date of statement of
financial position.

- Financial assets covered under IFRS 9

● The Group recognizes an allowance for expected credit losses (ECL) for debt instruments not held at fair
value through profit or loss.
● ECL is based on the difference between contractual cash flows and expected cash flows, considering
collateral and credit enhancements.
● ECL is recognized in two stages: a 12-month ECL for credit exposures with no significant increase in risk,
and a lifetime ECL for exposures with increased risk. Trade debts have a simplified approach based on
lifetime ECL. Default is considered at 90 days past due or when unlikely to receive full amounts. Financial
assets are written off when recovery is not expected.
4.11 Financial Liabilities:

Financial liabilities are recognized when the Group becomes involved in a contractual agreement. A liability
is derecognized when it is discharged, canceled, or expired. If a liability is replaced or substantially modified,
it is treated as derecognition of the original liability and recognition of a new liability, with the difference in
carrying amounts recorded in the profit or loss.

4.12 Trade debts and other receivables

Trade debts and other receivables are recognised initially at the amount of consideration that is unconditional,
unless they contain a significant financing component in which case such are recognised at fair value. The
Group holds the trade debts with the objective of collecting the contractual cash flows and therefore measures
the trade debts subsequently at amortized cost using the effective interest method.
4.20 Trade and other payables

Liabilities for trade and other amounts payable are carried at cost at the date of statement of financial position, which
is the fair value of the consideration to be paid in future for goods and services received, whether or not billed to the
Group.

4.21 Revenue recognition

Revenue from sale of petroleum products & barytes (the Products) is recognised when the Group satisfies a
performance obligation by transferring promised Products to customer. Products are transferred when the customer
obtains their control.

4.25 Functional and presentation currency

These consolidated financial statements are presented in Pakistani Rupee, which is the Holding Company's
functional currency.
PROXY FORM
 CONCLUSION

REPORTING PERIOD VISITING CARD

Pakistan Petroleum Limited’s reporting period is
from July 1st of the previous year to June 30 th of
the current year.
 FUTURE OVERVIEW
1. PPL aims to maintain its position as a leading Exploration and Production
company.
2. Enhancing goodwill, stake, and ownership regarding PPL's operations,
business plan, performance, and milestones.
3. Utilizing various platforms for communication with different target
audiences.
THANK YOU