| Attock Refinery Ltd - 2006 |
================================================================================================== BALANCE SHEET AS AT JUNE 30, 2006 ================================================================================================== 2006 2005 Notes Rupees Rupees ================================================================================================== SHARE CAPITAL AND RESERVES SHARE CAPITAL: Authorised 3 1,000,000,000 1,000,000,000 Issued, subscribed and paid-up 3 454,896,000 349,920,000 Reserves and surplus 4 2,574,783,836 2,376,053,808 3,029,679,836 2,725,973,808 Surplus on revaluation of property, plant and equipment 5 1,923,338,591 1,923,338,591 4,953,018,427 4,649,312,399 LONG TERM AND DEFERRED LIABILITIES: Long term loans 6 3,410,250,000 - Liability against assets subject to finance lease 7 - - Provision for gratuity 75,800,000 64,914,876 3,486,050,000 64,914,876 CURRENT LIABILITIES AND PROVISIONS: Current maturity of long term loans 6 1,136,750,000 - Liability against assets subject to finance lease 7 - 30,000,000 Short term finance 8 - - Trade and other payables 9 18,772,869,711 12,463,959,543 Provision for taxation 747,596,998 1,159,651,469 20,657,216,709 13,653,611,012 Contingencies and commitments 10 29,096,285,136 18,367,838,287 PROPERTY, PLANT AND EQUIPMENT: Operating assets 11 2,945,709,003 3,184,476,164 Capital work-in-progress 12 220,546,344 121,522,653 Stores and spares held for capital expenditure 77,695,655 48,725,851 3,243,951,002 3,354,724,668 Long term investments 13 8,622,91 3,930 2,408,984,371 Long term loans and deposits 14 11,613,726 12,040,441 Deferred taxation 15 137,805,949 92,650,033 CURRENT ASSETS: Stores, spares and loose tools 16 585,992,163 540,409,389 -in-trade 17 3,523,807,730 2,100,624,318 Trade debts 18 4,675,133,457 4,187,571,290 Loans, advances, deposits, prepayments and other receivables 19 263,473,099 190,252,121 Cash and bank balances 20 8,031,594,080 5,480,581,656 17,080,000,529 12,499,438,774 39,096,285,136 18,367,838,287 ================================================================================================== ================================================================================================== PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2006 ================================================================================================== 2006 2005 Notes Rupees Rupees ================================================================================================== Sales 21 55,828,138,010 41,606,173,715 Reimbursement due from the Government under import parity pricing formula 22 234,236,228 133,460,123 56,062,374,238 41,739,633,838 Less Cost of sales 23 55,490,680,059 39,190,425,372 Gross Profit 571,694,179 2,549,208,466 Less Administration expenses 24 183,298,609 166,626,064 Distribution cost 25 13,779,850 162,208,916 Finance cost 26 498,424,775 30,050,343 Other charges 27 67,912,109 218,869,860 763,415,343 577,755,183 (191,721,164) 1,971,453,283 Other income 29 627,082,965 218,087,666 Profit before taxation from refinery operations 435,361,801 2,189,540,949 Provision for taxation 30 354,844,084 1,040,443,612 Profit after taxation from refinery operations 80,517,717 1,149,097,337 Income from non-refinery operations less applicable charges and taxation 31 223,188,311 73,498,104 Net profit for the year after taxation 303,706,028 1,222,595,441 Earnings per share 36.1 6.68 26.88 ================================================================================================== ==================================================================================================
CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2006
==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from - customers 69,286,514,375 47,916,736,064
- others 131,684,336 94,755,736
69,418,198,711 48,011,491,800
Cash paid for operating costs (52,412,273,161) (37,295,951,074)
Cash paid to Government
for duties, taxes and other levies (12,089,104,107) (5,722,535,556)
Income tax paid (824,721,231) (277,267,722)
Net cash inflow from operating activities 4,092,100,212 4,715,737,448
CASH FLOWS FROM INVESTING ACTIVITIES:
Addition to property, plant and equipment (230,284,848) (169,673,342)
Proceeds from sale of property, plant and equipment 2,309,505 2,444,533
Long term investments (6,213,929,559) (2,399,734,371)
Long term loans and deposits 426,715 584,825
Income on bank deposits received 501,987,969 153,260,626
Gain on sale of shares - 62,926,104
Dividend received 253,335,200 12,000,000
Net cash outflow from investing activities (5,686,155,018) (2,338,191,625)
CASH FLOWS FROM FINANCING ACTIVITIES:
Long term loans 4,547,000,000 -
Repayment of principal portion of finance lease (30,000,000) (60,000,000)
Financial charges paid (374,917,154) (30,713,664)
Dividends paid (8,606) 116,388,085)
Net cash inflow/ (outflow) from financing activities 4,142,074,240 (207,101,749)
Effect of exchange rate changes 2,992,990 1,418,698
Increase in cash and cash equivalents 2,551,012,424 2,171,862,772
Cash and cash equivalents at the beginning of the year 5,480,581,656 3,308,718,884
Cash and cash equivalents at the end of the year 8,031,594,080 5,480,581,656
==================================================================================================
============================================================================================================================================================
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED JUNE 30, 2006
============================================================================================================================================================
Reserve for Surplus on
Share Capital expansion/ General Un-appropriated revaluation of
capital reserve modernisation reserve Profit fixed assets Total
Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Balance at June 30, 2004 291,600,000 5,948,506 1,184,330,910 55,000 138,083,951 1,923,338,591 3,543,356,938
============================================================================================================================================================
Final dividend @ 40% related
to the year ended
June 30, 2004 - - - -(116,640,000) - (116,640,080)
Profit for the year - - 1,222,595,441 - 1,222,595,441
Bonus shares @ 20% 58,320,000 - - - (58,320,000) - -
Transfer to reserve for
expansion/modernisation - - 1,003,297,337 - (1,003,297,337) - -
Balance at June 30, 2005 349,920,000 5,948,506 2,187,628,247 55000 182,422,055 1,923,338,591 4,649,312,399
Bonus shares @ 30% related to the year ended
June 30, 2005 104,976,000 - - - (104,976,000) - -
Profit for the year - - - 303,706,028 - 303,706,028
Transfer to reserve for
expansion/modernisation - - - - - - -
Balance at June 30, 2006 454,896,000 5,948,506 2,187,628,247 55,000 381,152,083 1,923,338,591 4,953,018,421
============================================================================================================================================================NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 20061. LEGAL STATUS AND OPERATIONS The Company was incorporated in Pakistan on November 8, 1978 as a private limited company and was converted into a public limited company on June 26, 1979. The registered office of the company is situated at Margah, Rawalpindi. Its shares are quoted on the Karachi, Lahore and Islamabad Stock Exchanges in Pakistan. It is principally engaged in the refining of crude oil. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1. BASIS OF PRESENTATION OF FINANCIAL STATEMENTS These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984 (the Ordinance). Approved accounting standards comprise of such International Accounting Standards as notified under the provisions of the Ordinance. Wherever, the requirements of the Ordinance or directives issued by the Securities and Exchange Commission of Pakistan differ with the requirements of these standards, the requirements of the Ordinance or the requirements of the said directives take precedence. 2.2. BASIS OF MEASUREMENT These financial statements have been prepared under the historical cost convention modified by revaluation of freehold land referred to in note 2.5 and certain other modifications as required by International Accounting Standards referred to in the accounting policies given below. 2.3. DIVIDEND APPROPRIATION Dividend is recognised as a liability in the financial statements in the period in which it is declared. 2.4. TAXATION Provision for current taxation is based on taxable income at the current rates of taxation or half percent of turnover, whichever is higher. 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 utilised. 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 in the case of items credited or charged to equity in which case it is included in equity. 2.5. PROPERTY, PLANT AND EQUIPMENT (a) Cost Operating fixed assets except freehold land are stated at cost less accumulated depreciation. Freehold land is stated at revalued amount. Capital work-in-progress and stores held for capital expenditure are stated at cost. Cost in relation to certain plant and machinery items includes borrowing cost related to the financing of major projects during construction phase and exchange differences referred to in note 2.10. (b) Depreciation Depreciation is charged to income on straight line method to write off the cost of an asset over its estimated useful life at the rates specified in note 11. Capitalised exchange differences are depreciated in annual instalments so as to write them off over the remaining estimated useful life of the asset. The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that carrying value may not be recoverable. If any such indication exists and where the carrying value exceeds the estimated recoverable amount, the assets are written down to recoverable amount. (c) Repairs and maintenance Maintenance and normal repairs, including minor alterations, are charged to income as and when incurred. Renewals and improvements are capitalised and the assets so replaced, if any, are retired. (d) Gains and losses on deletion Gains and losses on deletion of assets are included in income currently. 2.6. FINANCE LEASES Assets subject to finance lease are stated at the lower of present value of minimum lease payments under the lease agreement and the fair value of the assets acquired on lease. Outstanding obligations under the lease less finance charges allocated to future periods are shown as a liability. Value of leased assets is depreciated on the useful life of the asset using the straight line method at the rate given in note 11. Depreciation on leased assets is charged to income. 2.7. INVESTMENTS (a) Investments in subsidiary and associated companies These investments are initially valued at cost. At subsequent reporting dates, the Company reviews the carrying amount of the investment to assess whether there is any indication that such investments have suffered an impairment loss. If any such indication exists, the recoverable amount is estimated in order to determine the extent of the impairment loss, if any. (b) Available for sale investments Investment securities held by the Company which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices are classified as available for sale. These investments are initially recognised at cost and subsequently re-measured at fair value. Unrealised gains and losses arising from changes in the fair value in respect of exchange differences of available for sale investments are treated as referred to in note 2.10. 2.8. STORES, SPARES AND LOOSE TOOLS These are valued at moving average cost less allowance for obsolete items. Items in transit are stated at invoice value plus other charges paid thereon. 2.9. STOCK-IN-TRADE Stock-in-trade is valued at the lower of cost and net realisable value. Crude oil in transit is valued at cost comprising invoice value. Cost in relation to crude oil is determined on the basis of annual average cost of purchases during the year on the principles of import parity and in relation to semi-finished and finished products it represents the cost of crude oil and refining charges consisting of direct expenses and appropriate production overheads. Direct expenses are arrived at on the basis of average cost for the year per barrel of throughput. Production overheads, including depreciation, are allocated to throughput proportionately on the basis of nameplate capacity. Net realisable value in relation to finished product represents selling prices in the ordinary course of business less costs necessarily to be incurred for its sale, as applicable, and in relation to crude oil represents replacement cost at the balance sheet date. 2.10. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are converted into rupees at the rates of exchange ruling on the date of the transaction. All monetary assets and liabilities denominated in foreign currencies at the year end are translated at exchange rate prevailing at the balance sheet date. Exchange differences are dealt with through the profit and loss account. 2.11. REVENUE RECOGNITION Revenue from sales is recognised on delivery of products ex-refinery to the customers with the exception that Naphtha export sales are recognised on the basis of products shipped to customers. The company is operating under the import parity pricing formula, as modified from time to time, whereby it is charged the cost of crude on 'import parity' basis and is allowed product prices equivalent to the 'import parity' price, calculated under agreed parameters. Under the pricing formula the Company was entitled to a net of tax return on its paid-up capital with a guaranteed minimum of 10% and allowable maximum of 40% in respect of its refinery operations. Effective July 1, 2002, the Government has further modified the pricing formula applicable to the company. Under this modified formula the Refinery shall not claim from the Government any shortfall in profitability and net profit after tax (if any) above 50% of paid-up capital, is required to be diverted to a special reserve to offset any future loss or make investment for expansion or upgradation of Refinery. However, the Company has contested the abolition of minimum rate of return of 10% and represented to the Government to modify the already existing agreement for guaranteed return with mutual consent of both the parties. The profits and losses of subsidiary and associated companies are carried forward in the financial statements of the subsidiary and associated company and are not dealt with in or for the purpose of the financial statements of the company except to the extent of dividend declared by the subsidiary and associated companies. Income on short-term investments and bank deposits is proportionately accrued upto the balance sheet date. 2.12. RELATED PARTY TRANSACTIONS The transactions with related parties in respect of petroleum products, the prices of which are regulated and notified by the Government, and crude oil purchases, the prices of which are determined in accordance with the agreed pricing formula as approved by the Government, are recorded at the prices so notified or determined. In case of deregulated products, the transactions are made at Company notified prices for all its customers. In certain cases, reduced price is allowed on commercial considerations. All other transactions are carried out on commercially negotiated terms. 2.13. BORROWING COST Borrowing cost related to the financing of major projects during construction phase is capitalised. All other borrowing costs are expensed as incurred. 2.14. STAFF RETIREMENT BENEFITS The main features of the schemes operated by the Company for its employees are as follows: (i) Defined benefit plans A pension plan for its Management Staff and a gratuity plan for its Non-Management Staff. The pension plan is invested through an approved trust fund while the gratuity plan is book reserve plan. Contributions are made in accordance with actuarial recommendation. Actuarial valuations are conducted annually using projected unit credit method. The obligation is measured at the present value of the estimated future cash outflows. Unrealised net gains and losses are being amortised over the expected remaining service of current members. (ii) Defined contribution plans Approved contributory provident fund for all employees to which equal monthly contribution is made both by the Company and the employee at the rate of 10% of basic salary. 2.15. EMPLOYEES COMPENSATED ABSENCES The company also provides for compensated absences for all employees in accordance with the rules of the company. 2.16. FINANCIAL INSTRUMENTS Financial assets and financial 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 asset and in case of financial liability when the obligation specified in the contract is discharged, cancelled or expired. The particular measurement methods adopted are disclosed in the individual policy statements associated with each item as shown below: (a) Trade and other payables Liabilities for trade and other amounts payable including amounts payable to related parties are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received. (b) Provisions Provisions are recognised when a Company has a legal or constructive obligation as a result of past event if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. (c) Trade and other receivables Trade and other receivables are recognised and carried at original invoice amount/cost less an allowance for any uncollectible amounts. (d) Cash and cash equivalents Cash in hand and at banks are carried at fair value. For the purpose of cash flow statement, cash and cash equivalents consist of cash in hand, balances in banks and highly liquid short term investments. 3. SHARE CAPITAL ==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
AUTHORISED:
100,000,000 (2005: 100,000,000)
ordinary shares of Rs 10 each 1,000,000,000 1,000,000,000
Issued, subscribed and paid up
Shares issued for cash
8,000,000 ordinary shares of Rs 10 each 80,000,000 80,000,000
Shares issued as fully paid bonus shares
37,489,600 (2005: 26,992,000)
ordinary shares of Rs 10 each 374,896,000 269,920,000
45,489,600 (2005: 34,992,000) ordinary shares of Rs 10 each 454,896,000 349,920,000
==================================================================================================The Attock Oil Company Limited held 23,882,040 (2005: 18,370,800) ordinary shares at the year's end.4. RESERVES AND SURPLUS ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
CAPITAL RESERVE:
Liabilities taken over from
The Attock Oil Company Limited
no longer required 4,799,955 4,799,955
Capital gain on sale of building 653,906 653,906
Insurance and other claims realised relating
to pre-incorporation period 494,645 494,645
5,948,506 5,948,506
REVENUE RESERVE:
Reserve for expansion / modernisation 4.1
Additional revenue under processing fee formula
related to 1990-91 and 1991-92 32,929,000 32,929,000
Surplus profits under the import parity pricing formula 2,154,699,247 2,154,699,247
2,187,628,247 2,187,628,247
General reserve 55,000 55,000
Surplus - unappropriated profit 4.2 381,152,083 182,422,055
2,568,835,330 2,370,105,302
2,574,783,836 2,376,053,808
==================================================================================================4.1. Represents amounts retained as per the stipulations of the Government under the pricing formula and is available only for offsetting any future loss or make investment in expansion or upgradation of the refinery.4.2. An issue of bouns share in the proportion of one share for every four shares held i.e. 25% has been proposed to be declared out of unappropriated profit at the Board of Directors meeting held on August 28, 2006. These financial statements do not reflect the transfer of Rs 113.724 million to reserve for issue of bonus shares. 5. SURPLUS ON REVALUATION OF PROPERTY, PLANT AND EQUIPMENT This represents surplus over book value resulting from revaluation of freehold land as referred to in note 11.1. 6. LONG TERM LOANS - SECURED ==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
Syndicate Financing Facility (SFF) 3,597,000,000 -
Morabaha Financing Facility (MFF) 950,000,000 -
4,547,000,000 -
LESS: CURRENT PORTION:
Syndicate Financing Facility (SFF) 899,250,000 -
Morabaha Financing Facility (MFF) 237,500,000 -
1,136,750,000 -
3,410,250,000 -
==================================================================================================6.1. The company has obtained a long term syndicate financing facility of Rs 3,597 million from a consortium of banks under the lead of Faysal Bank Limited and a separate Morabaha financing facility from Faysal Bank Limited of Rs 950 million.These facilities are repayable in eight half yearly equal instalments commencing July 2006 and carry profit at base rate (six month KIBOR) plus 2.05% per annum upto January 1, 2006 and thereafter at base rate plus 1 .90% per annum for the remaining period of facilities. These facilities are secured by first pari passu charge by way of hypothecation over all present and future current and movable fixed assets of the Company and mortgage over immovable property. The facility agreements provide a prepayment option that allows the Company to terminate the facility at any time before the expiry date without additional charge / penalty. 7. LIABILITY AGAINST ASSETS SUBJECT TO FINANCE LEASE ==================================================================================================
2006 2005
Note Rupees Rupees
==================================================================================================
Faysal Bank Limited 7.1 - 30,000,000
Less: Current maturity shown under current liabilities - 30,000,000
- -
==================================================================================================7.1. Balance at June 30, 2005 represented plant and machinery acquired under Ijara financing from Faysal Bank Limited which has been fully repaid in August 2005.The financing carried a finance charge of 1.5% plus the rate fixed by the Bank from time to time on the deposit account in which the Company had placed a deposit equal to the liability outstanding against this facility. The financing rate used as the discounting factor was 7% (2005: 3.65% to 7.00%) per annum. The ownership of the assets has been transferred to the Company during the year. 8. SHORT TERM FINANCE The company has short term finance facility under mark-up arrangements aggregating Rs 70 million (2005: Rs 70 million) available from Muslim Commercial Bank Limited which is unutilised at the year end. This facility is secured by a joint hypothecation by way of first registered charge over stocks and book debts. The mark-up applicable to the facility at the rate of three month KIBOR plus 0.5% (2005: three month KIBOR plus 0.5%) per annum and the purchase price covered by the arrangement is payable on December 31, 2006. 9. TRADE AND OTHER PAYABLES ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
Creditors 9.1 14,121,151,457 8,494,256,054
Due to The Attock Oil Company
Limited - Holding Company 432,891,332 259,615,778
Due to associated companies
Pakistan Oilfields Limited 1,471,797,733 948,796,714
Attock Petroleum Limited 21,113,426 46,853,464
Attock Cement Pakistan Limited - 485,448
Attock Information Technology
Services (Private) Limited - 4,692,068
Accrued liabilities and provisions 223,933,625 2 80,017,990
Due to the Government under
pricing formula 9.2 2,049,511,951 2,118,292,929
Advance payments from customers 10,518,689 2,890,174
Sales tax payable 127,011,850 39,867,929
ACCRUED MARK-UP:
/ interest on long term loans
and finance lease obligations 124,1 33,100 625,479
Workers' welfare fund 103,033,871 93,566,819
Workers' profit participation fund 9.3 36,869,261 118,649,647
Staff provident fund 54,127 -
Staff pension fund - 971,188
Deposits from customers adjustable against freight
and Government levies payable on their behalf 1,018,470 1,603,304
Security deposits 48,861,150 51,796,283
Unclaimed dividends 969,669 978,275
18,772,869,711 12,463,959,543
==================================================================================================9.1. Includes an amount of Rs 1,500,835,702 in respect of price differential over and above US$ 50 per barrel withheld by the Company, pending finalisation of discount thereon, from payments made to suppliers for purchase of local crude oil as per the directive of Ministry of Petroleum & Natural Resources (the Ministry).Further, as per directive of the Ministry dated May 31, 2006, the Company is required to make payments alongwith the mark-up generated after the final discount rates over and above the price of US$ 50 per barrel are decided between the parties. 9.2. The amount due to the Government under pricing formula is net of Rs 4,209 million (2005 : Rs 2,688 million) price differential claim as referred to in note 21.1 with a corresponding effect in creditors. 9.3. WORKERS' PROFIT PARTICIPATION FUND ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
Balance at the beginning of the year 118,649,647 42,899,967
Add: Interest on fund utilised
in the Company's business 26 2,168,584 2,605,418
120,818,231 45,505,385
Less: Amount paid to Fund's trustees 120,541,846 45,345,084
276,385 160,301
Add: Amount allocated for the year 27 & 31 36,592,876 118,489,346
36,869,261 118,649,647
==================================================================================================10. CONTINGENCIES AND COMMITMENTS==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
CONTINGENCIES:
(i) Claims for local taxes and land compensation
contested by the Company 14,683,893 14,126,231
(ii) Price adjustment related to crude oil purchases as
referred to in note 23.1, the amount of which
can not be presently quantified
(iii) Guarantees issued by banks on behalf of the company 250,000 59,612,266
COMMITMENTS OUTSTANDING:
(i) Capital expenditure 41,868,873 108,787,459
(ii) Letters of credit other than for capital expenditure 33,659,700 143,687,835
(iii) Purchase of shares of a listed company - 5,887,917,502
(iv) Rentals due not later than one year under operating lease
agreements, in respect of vehicles - 670,314
==================================================================================================11. OPERATING ASSETS11.1. THE FOLLOWING IS A STATEMENT OF OPERATING ASSETS =============================================================================================================================================================================================================
COST DEPRECIATION' Book value Annual
At July 1, Additions / At June 30, At July 1, Charge for the At June 30, at rate of
2005 (deletions) 2006 2005 year/(on deletions) 2006 June 30, 2006 depreciation
%
=============================================================================================================================================================================================================
Freehold land 1,927,250,000 - 1,927,250,000 - - - 1,927,250,000 -
Buildings on freehold land 69,815,152 541,110 70,356,262 25,475,882 3,162,722 28,638,604 41,717,658 5
Plant and machinery 3,711,648,064 84,352,647 3,795,900,711 2,558,643,971 319,613,278 2,878,157,249 917,743,462 10
(100,000) (100,000)
Computers 50,260,000 3,248,604 51,876,985 35,545,197 5,753,320 39,805,617 12,071,368 14.3
(1,631,619) (1,492,900)
Furniture, fixtures and equipment 57,144,771 4,187,145 60,606,799 28,424,465 4,959,392 33,116,976 27,489,823 10
(725,117) (266,881)
Vehicles 53,664,457 9,961,847 62,634,694 37,216,765 6,920,835 43,198,002 19,436,692 20
(991,610) (939,648)
Total Rupees 5,869,782,444 102,291,353 5,968,625,451 2,685,306,280 340,409,597 3,022,916,448 2,945,709,003
(3,448,346) (2,799,429)
2005 Rupees 5,811,122,614 59,691,477 5,869,782,444 2,346,748,021 339,268,475 2,685,306,280 3,184,476,164
(1,031,647) (710,216)
============================================================================================================================================================================================================= Note: The cost of freehold land includes revaluation surplus of Rs 1,923,338,591 arising from revaluation of freehold land in January 2001.11.2. ==================================================================================================
Sale
Original cost Book value proceeds
Rupees Rupees Rupees
==================================================================================================
Fixed assets disposed off during
the year with individual book
value exceeding Rs 50,000 are as follows:
Furniture, fixtures and equipment
By Tender- M. Irshad Rana 385,200 359,083 43,285
COMPUTERS:
By Tender-M. Irshad Rana 940,126 87,915 1,628
2006 2005
Rupees Rupees
==================================================================================================11.3. THE DEPRECIATION CHARGE FOR THE YEAR HAS BEEN ALLOCATED AS FOLLOWS==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
Cost of sales 328,326,550 327,705,428
Administration expenses 10,875,215 10,349,415
Distribution cost 575,332 581,132
Desalter operating cost 632,500 632,500
340,409,597 339,268,475
==================================================================================================12. CAPITAL WORK-IN-PROGRESS==================================================================================================
2006 2005
Note Rupees Rupees
==================================================================================================
Civil works 11,725,973 2,469,998
Plant and machinery 161,182,102 87,910,537
Pipeline project 27,964,992 25,686,404
Power plant project 12.1 19,673,277 5,455,714
220,546,344 121,522,653
==================================================================================================12.1. Represents costs incurred by the company for setting up a power plant.A separate company in the name of Attock Gen Limited has been incorporated during the year for this purpose. 13. LONG TERM INVESTMENTS =============================================================================================================================
2006 2005
% age Amount % age Amount
holding Rupees holding Rupees
=============================================================================================================================
ASSOCIATED COMPANIES
QUOTED:
National Refinery Limited (NRL) 25 8,046,635,100 - -
16,659,700 fully paid ordinary shares of Rs 10 each
Market value as at June 30, 2006 : Rs 4,448 million
Attock Petroleum Limited 20.91 569,778,830 17.40 243,766,773
8,363,300 (2005 : 6,961,000 )fully paid ordinary
shares including 3,500,000 (2005: 3,500,000)
bonus shares of Rs 10 each
Market value as at June 30, 2006: Rs 2,701 million
(June 30, 2005 : Rs 1,100 million)
UNQUOTED:
Attock Information Technology Services (Private) Limited 10 4,500,000 10 4,500,000
450,000 (2005: 450,000)
fully paid ordinary shares of Rs 10 each
Value based on net assets as at June 30, 2006:
Rs 4.62 million (June 30, 2005 : Rs 4.46 million)
8,620,913,930 248,266,773
SUBSIDIARY COMPANY
UNQUOTED:
Attock Hospital (Private) Limited 100 2,000,000 1 00 2,000,000
200,000 (2005: 200,000)
fully paid ordinary shares of Rs 10 each
Value based on net assets as at June 30, 2006:
Rs 7.261 million (2005: Rs 7.166 million)
Advance against purchase of shares - 2,158,717,598
8,622,913,930 2,408,984,371
=============================================================================================================================13.1. Based on a valuation analysis carried out by an external investment advisor engaged by the Company, the recoverable amount of investment in NRL exceeds its carrying amount.The recoverable amount has been estimated based on a value in use calculation. These calculations have been made on discounted cash flow based valuation methodol which assumes gross profit margin of 6.30%, terminal growth rate of 5% and capital assets pricing model ased discount rate of 13.40%. 14. LONG TERM LOANS AND DEPOSITS ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
LOANS TO EMPLOYEES:
- considered good 14.1 20,748,226 18,613,384
Less: Amounts due within
twelve months shown under
current assets 19 (9,999,521) (7,777,064)
10,748,705 10,836,320
Security deposits 865,021 1,204,121
11,613,726 12,040,441
==================================================================================================14.1. Loans to employees are for purchase of car, refrigerator and for other purposes which are recoverable in 36, 24 and 60 equal monthly instalments respectively and are secured by a charge on the asset purchased and/or amount due to the employee against provident fund or a third party guarantee.Loans to employees for refrigerator and other purposes are interest free while loans for purchase of car carry interest rates ranging from 3% to 15% (2005 : 3% to 15%) per annum. These do not include any amount outstanding for more than three years. These include an amount of Rs 2,232,870 (2005: Rs 283,000) receivable from Executives of the Company and does not include any amount receivable from Directors or Chief Executive. The maximum amount due from the Executives of the Company at the end of any month during the year was Rs 2,493,776 (2005: Rs 343,210). 14.2. RECONCILIATION OF CARRYING AMOUNT OF LOANS TO EXECUTIVES ==========================================================================================================================
Opening Disbursements Repayments Closing
balance during the during the balance
==========================================================================================================================
as at year year as at
July 1, 2005 June 30, 2006
Rupees Rupees Rupees Rupees
Executives 283,000 3,044,644 1,094,774 2,232,870
==========================================================================================================================15. DEFERRED TAXATION==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
DEBIT BALANCES ARISING ON:
Provisions for slow moving stores,
doubtful debts and gratuity 39,315,681 34,980,888
Accelerated depreciation allowances 130,284,153 94,641,054
Credit balance arising on finance lease arrangements (31,793,885) (36,971,909)
137,805,949 92,650,033
==================================================================================================16. STORES, SPARES AND LOOSE TOOLS==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
STORES (INCLUDING ITEMS IN TRANSIT:
Rs 82.54 million; 2005: Rs 42.11 million) 410,806,882 375,068,022
Spares 208,976,739 197,733,409
Loose tools 708,542 607,958
620,492,163 573,409,389
Less: Provision for slow moving items 34,500,000 33,000,000
85,992,163 540,409,389
==================================================================================================17. STOCK-IN-TRADE==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
Crude oil - in stock 1,310,846,837 426,293,026
- in transit 173,356,867 130,756,941
1,484,203,704 557,049,967
Semi-finished products 278,876,166 174,528,868
Finished products 1,760,727,860 1,369,045,483
3,523,807,730 2,100,624,318
==================================================================================================Finished products include stocks carried at net realisable value of Rs 334 million (2005: Rs 537 million).18. TRADE DEBTS All debts are unsecured and considered good. Aggregate amount receivable from associated companies at June 30, 2006 was Rs 1,062,120,659 (2005: Rs 542,839,502). Increase in this balance was on account of higher products prices and volumes. 19. LOANS, ADVANCES, DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES ==================================================================================================
2006 2005
Note Rupees Rupees
==================================================================================================
LOANS AND ADVANCES - CONSIDERED GOOD:
Current portion of long-term loans to employees 14 9,999,521 7,777,064
Advances to suppliers 34,916,588 29,067,934
Advances to employees 1,683,662 3,625,595
46,599,771 40,470,593
Deposits, prepayments and current account
balances with statutory authorities
Trade deposits 285,673 304,858
Short term prepayments 14,269,925 10,514,601
Current account balances
with statutory authorities in
respect of petroleum development levy,
excise duty and sales tax 23,725 1,362,172
14,579,323 12,181,631
OTHER RECEIVABLES:
Due from Subsidiary Company
Attock Hospital (Private) Limited 1,668,749 3,365,200
Due from associated companies
Attock Information Technology
Services (Private) Limited 139,817 -
National Cleaner Production
Centre Foundation 522,052 880,058
Attock Industrial Products Limited
(net of provision of
Rs 3,015,145; 2005 : Rs 3,015,145) - -
Due from Staff pension fund 1,697, 890 -
Income accrued on bank deposits 39,199,241 13,989,192
Crude oil freight recoverable through
inland freight equalisation margin 150,71 6,052 108,885,908
Other receivables 8,350,204 10,479,539
202,294,005 137,599,897
263,473,099 190,252,121
==================================================================================================Loans to employees include Rs 1,289,790 (2005 : Rs 114,000) due from the executives of the Company and does not include any amount receivable from Directors or the Chief Executive.20. CASH AND BANK BALANCES ==================================================================================================
2006 2005
Note Rupees Rupees
==================================================================================================
Cash in hand 541,946 649,305
WITH BANKS:
On current accounts 4,654,915 3,914,650
On interest / mark-up bearing
saving accounts
(including US $ 643,379; 2005 : US $ 957,833)
20.2 8,026,397,219 5,476,017,701
8,031,594,080 5,480,581,656
==================================================================================================20.1. The balances in savings accounts earn interest / mark-up ranging from 0.75% to 11 .85% (2005: 0.75% to 7.50%) per annum.20.2. Balances with banks include Rs 48,861,150 (2005: Rs 51,796,283) in respect of security deposits received and Rs 1,500,835,702 (2005: Nil) in respect of amounts with held from suppliers, as explained in note 9.1. 21. SALES ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
Gross sales 21.1 61,254,050,216 43,984,757,731
Naphtha export sales 8,512,982,645 4,946,808,814
Less: Cost of Naphtha purchased
from third parties and related handling charges 1,761,308,376 1,571,615,903
6,751,674,269 3,375,192,911
Less: Duties, taxes and levies 21.2 12,177,586,475 5,753,776,927
55,828,138,010 41,606,173,715
==================================================================================================21.1. Under the products import parity pricing formula, effective July 1, 2000, the Government had imposed a cap on an element of pricing of Premium Motor Gasoline (PMG) which has not been accepted by the company.The company has strongly urged the Government to remove this cap. The sales revenue to the extent of related aggregate price differential claim of Rs 4,209 million (including Rs 2,688 million for prior years) is not being reflected in sales till this matter is resolved. 21.2. DUTIES, TAXES AND LEVIES ==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
Development surcharge 3,858,634,023 271,616,911
Sales tax 7,810,481,336 5,300,627,617
Custom duties and other levies 508,471,116 181,532,399
12,177,586,475 5,753,776,927
==================================================================================================22. REIMBURSEMENT DUE FROM THE GOVERNMENT UNDER IMPORT PARITY PRICING FORMULAThis represents amount due from the Government of Pakistan on account of shortfall in ex-refinery prices under the import parity pricing formula. 23. COST OF SALES ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
Opening stock of semi-finished products 174,528,868 148,604,539
Crude oil consumed 23.1 53,529,997,346 37,859,212,380
Transportation and handling charges 1,042,847,253 911,485,561
Salaries, wages and other benefits 23.2 238,350,857 204,885,899
Printing and stationery 2,208,099 1,618,360
Chemicals consumed 375,038,860 340,975,739
Fuel and power 232,635,418 139,572,832
Rent, rates and taxes 5,644,009 4,914,076
Telephone and telex charges 2,309,376 2,216,997
Professional charges for technical services 2,849,672 2,659,032
Insurance 36,578,388 38,708,318
Repairs and maintenance
(including stores and spares consumed
Rs 79,543,503; 2005: Rs 69,614,337) 144,410,627 128,468,695
Staff transport and travelling 23.3 12,187,347 11,578,775
Cost of receptacles 24,775,920 19,514,378
Research and development 8,550,012 15,034,437
Depreciation 11.3 328,326,550 327,705,428
56,161,238,602 40,157,155,446
Closing stock of semi-finished products (278,876,166) (174,528,868)
55,882,362,436 39,982,626,578
Opening stock of finished products 1,369,045,483 576,844,277
Closing stock of finished products (1,760,727,860) (1,369,045,483)
(391,682,377) (792,201,206)
55,490,680,059 39,190,425,372
==================================================================================================23.1. CRUDE OIL CONSUMED==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
Stock at the beginning of the year 557,049,967 1,013,183,885
Purchases 54,457,151,083 37,403,078,462
55,014,201,050 38,416,262,347
Stock at the end of the year (1,484,203,704) (557,049,967)
53,529,997,346 37,859,212,380
==================================================================================================Certain crude purchases have been recorded based on provisional prices notified by the Government and may require subsequent adjustment.23.2. Salaries, wages and other benefits under cost of sales, administration expenses, distribution cost and income from crude desalter operations include Company's contribution to provident fund amounting to Rs 10,682,306 (2005: Rs 8,920,864). 23.3. STAFF TRANSPORT AND TRAVELLING Staff transport and travelling under cost of sales, administration expenses and distribution cost include lease, rentals amounting to Rs 764,819 (2005 : Rs 2,909,030) related to 11 (2005 : 19) motor vehicles used during the year under terminable lease agreements. 24. ADMINISTRATION EXPENSES ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
Salaries, wages and other benefits 23.2 90,619,295 76,202,180
Directors' fees - 2,000
Staff transport, travelling and entertainment 23.3 13,600,784 14,157,846
Telephone and telex charges 1,893,125 2,267,737
Electricity, gas and water 4,023,580 2,572,811
Printing and stationery 2,408,355 3,020,348
AUDITORS REMUNERATION AND EXPENSES:
Statutory audit 300,000 270,000
Special certifications, half yearly review, audit of
consolidated accounts and staff funds 483,500 461,000
Out of pocket expenses 91,540 113,080
875,040 844,080
Legal and professional charges 7,951,800 19,565,426
Repairs and maintenance 24,795,439 20,552,503
Subscription 5,444,940 4,700,743
Publicity 4,029,913 5,380,213
Scholarship scheme 1,398,801 1,411,000
Rent, rates and taxes 1,677,635 1,949,664
Insurance 794,336 387,461
Donations* 10,275,147 331,675
Training expenses 2,389,783 2,641,453
Other expenses 245,421 289,509
Depreciation 11.3 10,875,215 10,349,415
183,298,609 166,626,064
================================================================================================== * No director or his spouse had any interest in the donee institutions.25. DISTRIBUTION COST ==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
Salaries, wages and other benefits 23.2 8,512,176 8,576,976
Staff transport, travelling and entertainment 23.3 661,935 587,526
Telephone and telex charges 174,908 168,851
Electricity, gas, fuel and water 1,341,193 1,002,685
Printing and stationery 70,976 570,322
Repairs and maintenance including packing
and other stores consumed 1,911,219 5,136,478
Rent, rates and taxes 263,096 272,596
Legal and professional charges 216,285 495,000
Cost of samples 52,730 -
Depreciation-note 11.3 575,332 581,132
Product handling charges - 144,817,350
13,779,850 162,208,916
==================================================================================================Distribution costs have decreased since the direct exports of Jet fuel are no longer being handled by the company.26. FINANCE COSTS ==================================================================================================
2006 2005
Note Rupees Rupees
==================================================================================================
Interest / mark-up on Long term loans 493,541,346 -
Workers' Profit Participation Fund 9.3 2,168,584 2,605,418
Financial charges on liability against
assets subject to finance lease 346,028 2,141,968
Bank and other charges 2,368,817 25,302,957
498,424,775 30,050,343
==================================================================================================27. OTHER CHARGES==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
EMPLOYEES' RETIREMENT BENEFITS:
Staff gratuity benefits 28 15,378,909 11,083,589
Staff pension benefits 28 7,008,130 7,989,660
Less: charged to subsidiary company (852,696) (709,276)
6,155,434 7,280,384
Contribution to employees old age benefits scheme 1,717,248 1,259,915
23,251,591 19,623,888
Provision for slow moving stores 1,500,000 31,000,000
Workers' profit participation fund 9.3 23,926,116 117,889,346
Workers' welfare fund 19,234,402 50,356,626
67,912,109 218,869,860
==================================================================================================28. DEFINED BENEFIT PLANSThe latest actuarial valuation of the pension and gratuity plans was carried out as at June 30, 2006. Annual expected rate of return on investments and discount rate for the valuation is 10.8% (2005: 11.6%). Annual increase in salary levels and pensions are assumed to average 8.7% (2005: 9.5%) and 5.5% (2005: 6.3%) respectively in the long term. Actual return on plan assets during the year was Rs 55.251 million (2005: Rs 29.106 million). ========================================================================================================
Pension Gratuity
(funded) (unfunded)
2006 2005 2006 2005
Rupees Rupees Rupees Rupees
========================================================================================================
COMPANY'S LIABILITY:
Balance payable at July 1 (971,188) (1,303,707) (64,914,876) (58,539,000)
Expense (7,008,130) (7,989,660) (15,378,909) (11,083,589)
Contribution / benefits paid 9,677,208 8,322,179 4,493,785 4,707,713
Balance receivable / (payable) at June 30 1,697,890 (971,1 88) (75,800,000) (64,914,876)
RECONCILIATION:
Fair value of plan assets 280,495,084 225,120,520 - -
Present value of defined
benefit obligations (263,054,407) (215,382,051) (96,057,559) (88,577,526)
17,440,677 9,738,469 (96,057,559) (88,577,526)
Unrecognised actuarial (gain) / loss (15,742,787) (10,709,657) 20,257,559 23,662,650
Asset / (liability) recognised
in the accounts 1,697,890 (971,188) (75,800,000) (64,914,876)
EXPENSE FOR THE YEAR:
Current service cost 9,579,615 9,473,921 2,996,315 2,748,417
Interest cost 24,541,741 14,911,750 10,064,728 6,267,964
Expected return on plan assets (26,233,559) (15,717,980) - -
Recognition of (gain) / loss (718,769) (519,631) 2,317,866 2,067,208
Contribution from an associated company (160,898) (158,400) - -
7,008,130 7,989,660 15,378,909 11,083,589
========================================================================================================29. OTHER INCOME==================================================================================================
2006 2005
Note Rupees Rupees
==================================================================================================
INCOME FROM FINANCIAL ASSETS:
Income on bank deposits 527,198,018 162,004,000
Income on other balances 2,029 17,527
Exchange gain 2,992,990 1,418,698
530,193,037 163,440,225
INCOME FROM NON-FINANCIAL ASSETS:
Income from crude decanting 8,835,527 7,807,323
Income from crude desalter operations 29.1 10,541,984 11,460,288
Insurance agency commission 2,206,024 820,592
Rental income 2,003,552 1,604,311
Sale of scrap 6,957,758 9,750,288
Profit on sale of fixed assets 1,660,588 2,123,102
Calibration charges 3,996,300 4,585,600
Handling and service charges 21,419,332 13,159,204
Registration charges from carriage contractors 20,941,563 -
Penalties from carriage contractors 15,070,661 -
Old liabilities written back 2,603,288 -
Miscellaneous 653,351 3,336,733
96,889,928 54,647,441
627,082,965 218,087,666
==================================================================================================29.1. INCOME FROM CRUDE DESALTER OPERATIONS==================================================================================================
2006 2005
Notes Rupees Rupees
==================================================================================================
Income 49,598,239 53,674,158
LESS: OPERATING COSTS:
Salaries, wages and other benefits 23.2 867,969 939,298
Chemicals consumed 1,874,813 2,028,883
Fuel and power 31,455,203 34,040,151
Repairs and maintenance 4,225,770 4,573,038
Depreciation 11.3 632,500 632,500
39,056,255 42,213,870
10,541,984 11,460,288
==================================================================================================30. PROVISION FOR TAXATION==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
Current - for the year 400,000,000 926,900,000
- for prior years - 150,000,000
400,000,000 1,076,900,000
Deferred - for the year (45,155,916) (36,456,388)
354,844,084 1,040,443,612
Numerical reconciliation
between the average effective tax rate
and the applicable tax rate %
Applicable tax rate 35.00 35.00
TAX EFFECT OF:
Permanent differernce - 0.52
Income chargeable to tax at special rate 46.51 5.15
Average effective tax rate charged
to profit and loss account. 81.51 40.7
==================================================================================================31. INCOME FROM NON-REFINERY OPERATIONS LESS APPLICABLE CHARGES AND TAXATION==================================================================================================
2006 2005
Note Rupees Rupees
==================================================================================================
DIVIDEND INCOME FROM ASSOCIATED COMPANY:
Attock Petroleum Limited 70,078,500 12,000,000
National Refinery Limited 183,256,700 -
253,335,200 12,000,000
LESS: RELATED CHARGES:
Workers' profit participation fund 9.3 12,666,760 600,000
Workers' welfare fund 4,813,369 228,000
Taxation 12,666,760 600,000
30,146,889 1,428,000
223,188,311 10,572,000
Capital gain on sale of shares of an associated company - 62,926,104
223,188,311 73,498,104
==================================================================================================32. RELATED PARTY TRANSACTIONSAttock Oil Company Limited holds 52.50% (2005: 52.50%) shares of the company at the year's end. Therefore all subsidiaries and associated undertakings of Attock Oil Company Limited are related parties of the company. The related parties comprise of directors, major shareholders, key management personnel, entities over which the directors are able to exercise influence and employees' funds. Amount due from and due to these undertakings are shown under receivables and payables. The remuneration of Chief Executive, Directors and Executive is disclosed in note 33 to the financial statements. ==================================================================================================
2006 2005
Rupees Rupees
==================================================================================================
ASSOCIATED COMPANIES:
Sale of goods 15,315,597,351 8,174,831,948
Sale of services 46,784,718 12,073,976
15,362,382,069 8,186,905,924
Purchase of goods 9,016,821,119 5,071,408,314
Purchase of services 296,693,858 344,995,613
9,313,514,977 5,416,403,927
Purchase of shares of an associated company - 341,880,000
24,675,897,046 13,945,189,851
HOLDING COMPANY:
Purchase of goods 1,997,891,103 1,213,000,857
Purchase of services 3,771,792 3,755,295
2,001,662,895 1,216,756,152
SUBSIDIARY COMPANY:
Sale of goods 541,408 424,001
Sale of services 16,601,311 14,734,933
17,142,719 15,158,934
Purchase of goods - -
Purchase of services 18,504,737 17,654,856
18,504,737 17,654,856
35,647,456 32,813,790
EMPLOYEES' BENEFITS FUNDS:
Payments made during the year 14,170,993 13,029,892
==================================================================================================33. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVESThe aggregate amounts charged in the accounts for remuneration, including benefits and perquisites, were as follows: =============================================================================================================================
Chief Executive Directors Executives
2006 2005 2006 2005 2006 2005
Rs Rs Rs Rs Rs Rs
=============================================================================================================================
Managerial remuneration/honorarium 2,482,256 3,255,004 1,215,792 1,265,792 18,528,616 9,436,508
Company's contribution to
provident and pension funds 574,200 655,348 - - 3,994,086 1,859,393
Housing and utilities 834,960 1,153,237 - - 8,768,688 4,338,024
Leave passage 298,356 445,450 - - 2,034,140 952,530
4,189,772 5,509,039 1,215,792 1,265,792 33,325,530 16,586,455
No of Persons 1 2 3 3 18 10
=============================================================================================================================33.1. In addition, the Chief Executive and 17 (2005: 8) Executives were provided with limited use of the Company's cars.The Chief Executive and all Executives were provided with medical facilities and 7 (2005: 5) Executives were provided with unfurnished accommodation in the Company owned bungalows. Limited residential telephone facility was also provided to the Chief Executive and 7 (2005: 7) Executives. Fee paid to directors during the year was Rs nil (2005 : Rs 2,000) 34. FINANCIAL INSTRUMENTS 34.1. FINANCIAL ASSETS AND LIABILITIES ==============================================================================================================================================================
2006 2005
Interest/ Non-interest/ Total Interest/ Non-interest/ Total
mark-up bearing mark.up bearing mark-up bearing mark-up bearing
Rupees Rupees Rupees Rupees Rupees Rupees
==============================================================================================================================================================
FINANCIAL ASSETS
MATURITY UP TO ONE YEAR:
Trade debts - 4,675,133,457 4,675,133,457 - 4,187,571,290 4,187,571,290
Loans, advances, deposits and
other receivables - 214,262,861 214,262,861 25,672 149,281,742 149,307,414
CASH AND BANK BALANCES:
Foreign currency - US $ 38,667,078 201,063 38,868,141 56,848,680 314,812 57,163,492
Local currency 7,987,730,141 4,995,798 7,992,725,939 5,419,169,021 4,249,143 5,423,418,164
MATURITY AFTER ONE YEAR:
Long term investments - 8,622,913,930 8,622,913,930 - 2,408,984,371 2,408,984371
Long term Loans and deposits - 11,613,726 11,613,726 - 12,040,441 12,040,441
8,026,397,219 13,529,120,835 21,555,518,054 5,476,043,373 6,762,441,799 12,238,485,172
FINANCIAL LIABILITIES:
Maturity upto one year
Long term loans and lease obligations
Local currency 1,136,750,000 - 1,136,750,000 30,000,000 - 30,000,000
Short term finance - - - - - -
Trade and other payables - 18,494,417,570 18,494,417,570 - 12,207,381,670 12,207,381,670
Maturity after one year
LONG TERM LOANS AND LEASE OBLIGATIONS:
Local currency 3,410,250,000 - 3,410,250,000 - - -
Staff gratuity - 75,800,000 75,800,000 - 64,914,876 64,914,876
4,547,000,000 18,570,217,570 23,117,217,570 30,000,000 12,272,296,546 12,302,296,546
OFF BALANCE SHEET ITEMS:
Commitments (other than letters of credit) - 41,868,873 41,868,873 - 5,997,375,275 5,997,375,275
Letters of credit - 33,659,700 33,659,700 - 143,687,835 143,687,835
Bank guarantees - 250,000 250,000 - 59,612,266 59,612,264
- 75,778,573 75,778,573 - 6,200,675,376 6,200,675,376
==============================================================================================================================================================34.2. CONCENTRATION OF CREDIT RISKThe company's credit risk is primarily attributable to its trade debts and placements with banks. The sales are essentially to five oil marketing companies and reputable foreign customers. The company's placement are with reputable banks. Due to the high credit worthiness of corresponding parties the credit risk is considered minimal. 34.3. CURRENCY RISK Currency risk is the risk of loss through changes in foreign currency rates. The exchange risk against foreign currency liabilities has been hedged by the Company through foreign currency deposits. 34.4. INTEREST RATE RISK The effective interest / mark up rates for the monetary financial assets and liabilities are mentioned in respective notes to the financial statements. 34.5. LIQUIDITY RISK Liquidity risk reflects an enterprise's inability in raising funds to meet commitments. The company follows an effective cash management and planning policy to ensure availability of funds and to take appropriate measures for new requirements. 34.6. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES The carrying value of financial assets and liabilities approximates their fair value except for long term investments, which are stated at cost. 35. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements in conformity with the approved accounting standards requires the use of certain critical accounting estimates. It also requires the management to exercise its judgement in the process of applying the company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience, including expectations of future events that are believed to be reasonable under the circumstances. The areas where assumptions and estimates are significant to the company's financial statements are: (a) revaluation surplus on freehold land (note 11.1(b)) the estimate of recoverable amount of investment in associated companies (note 13.1) 36. GENERAL 36.1. EARNINGS PER SHARE ==================================================================================================
2006 2005
==================================================================================================
Profit for the year after taxation 303,706,028 1,222,595,441
Number of ordinary shares outstanding during the year 45,489,600 45,489,600
Earnings per share Rs 6.68 Rs 26.88
==================================================================================================Basic earning per share for the year 2005 reported in the previous year was Rs 34.94.This has been restated on account of 10,497,600 bonus shares issued without consideration during the year ended June 30, 2006. There is no dilutive effect on the basic earnings per share of the company for the year ended June 30, 2006. 36.2. CAPACITY AND PRODUCTION Against the designed annual refining capacity of 14,280,000 (2005: 13,387,500) US barrels the actual throughput during the year was 14,567,216 (2005: 14,539,300) US barrels. 36.3. NUMBER OF EMPLOYEES Total number of employees at the end of the year was 684 (2005: 668). 36.4. CORRESPONDING FIGURES Corresponding figures have been rearranged and / or reclassified, wherever necessary, for the purpose of comparison. 36.5. DATE OF AUTHORISATION These financial statements have been authorised for issue by the Board of Directors of Company on August 28, 2006. |