Mr. Salahuddin
Qureshi
Chairman
Mr. Ardeshir
Cowasjee
Mr. Farooq
Rahmatullah
Mr. Hasnain
Moochhala
Mr.Hussain Dawood
Mr. Ijaz Ali Khan
Mr. Nadeem
N.Jafarey
Mr. Sabar Hussain
Mr. S. Ali Raza
Mr. Tariq Kirmani
Mr. Zafar Haleem
General Manager &
Chief Executive
Audit Committee
Mr. Nadeem
N.Jafarey
Chairman
Mr. Hasnain
Moochhala
Mr. Ijaz Ali Khan
Mr. Anwar Sadiq
Secretary
Human Resources
Committe
Mr.Tariq Kirmani
Chairman
Mr. Nadeem.
N.Jafarey
Strategic Projects
Committe
Mr.Hussain Dawood
Mr. Hasnain
Moochhala
Chairman
Company Secretary
Mr.Saleem Butt
Auditors
A. F. Ferguson & Co.
Chartered
Accountants
Registered Office
Korangi Creek
Road,Karachi
Web:www.prl.com.pk
Registrar and Share Registration Office
Ferguson Asociates
(Pvt.) Ltd
P.O Box 4716 State
Life Building 1-A,
Off.I.I Chundrigar
Road, Karachi74000
Directors' Review
The Directors of Pakistan Refinery Limited take pleasure in presenting unaudited
Financial Statements for the nine months ended March 31, 2005.
The Company achieved the highest ever after tax profit of Rs. 1,381 million during
the nine months period posting an increase of 113.6% over the corresponding
period last year. The rising earnings trend continued due to improved
topping/reforming refining margins and inventory gains, specifically during the
second and third quarter of the current financial year.
POL products demand in the Country continued its upward trend and was 19.7%
during the period to fuel the real GDP growth of over 7%. The Company optimized
its production level by increasing crude throughput to 1.59 MMT, a 6.9% change, to
meet growing local demand and to yield best out of favourable regional refining
environment.
During the quarter under review prices of benchmark crudes viz. Brent and Spot
Dubai reached unprecedented levels of $54.30/bbl and $45.47/bbl respectively.
Cold weather in late February and early March, China's growing oil demand, low
sulfur fuel requirements by India along with robust view of US economic growth are
some of the key contributing factors to this rising trend. Light Arab crude averaged
$46.78/bbl, an increase of 36.8% vs. the corresponding period last year thereby
adding to the oil bill of the Country, crude cost of the Company and domestic
product prices.
The Company has proudly achieved highest ever 8.0 million man-hours without Lost
Time Injury. We are pleased to inform you that after achieving record target of 8.0
million man-hours without Lost Time Injury the Company is now heading towards the
next target of 10 million. The Company moving towards achieving Quality
Management System Standard based on ISO 9001 across all functions.
The Board of Directors would like to thank the management, employees, customers
and other contributing stakeholders for the smooth & efficient operations of the
Company.
On behalf of the Board of Directors
Salahuddin Qureshi
Chairman
Karachi :April 21,2005
Zafar Haleem
Chief Executive
Balance Sheet as at March 31,
2005 (Unaudited)
Unaudited
Audited
March 31,
2005
June 30,
2004
Rupees(000)
Rupees(000)
(Restated)
ASSETS
Non-Current Assets
Operating fixed assets - Note 3
570,485
531,071
Capital work-in-progress
115,214
120,946
865
865
Long-Term Loans and Advances
7,262
8,321
Long-Term Deposits
3,074
3,074
12,085
15,923
708,985
680,200
Long-Term Investment - at cost
Deferred Taxation
Total Non-Current Assets
Current Assets
Stores, spares and chemicals
213,379
205,618
Stock-in-trade
3,360,846
2,441,440
Trade debts
3,801,800
2,441,397
Loans and advances
28,808
15,922
Trade deposits and short-term
prepayments
20,381
11,023
558,478
389,192
6,438
4,283
Other receivables
Cash and bank balances
7,990,130
5,508,875
270,904
692,812
4,961,432
3,692,784
414,519
155,287
Current Liablities
Short-term running finance
Trade and other payables
Taxation-provision less payments
Workers' profits participation fund
Workers' welfare fund
112,238
10,817
49,085
27,307
5,808,178
4,579,007
Net Current Assets
2,181,952
929,868
Net Assets
2,890,937
1,610,068
200,000
200,000
1,947
1,947
2,644,292
1,338,423
44,698
69,698
2,890,937
1,610,068
REPRESENTED BY :
Issued, subscribed and paid up capital
Reserves
Special Reserves - Note 1.3
Unappropriated profit
Shareholders' Equity
The annexed notes form an integral part of
these financial statements.
Salahuddin Qureshi
Chairman
Zafar Haleem
Chief Executive
Profit & Loss Account for the Nine months ended March 31, 2005
(Unaudited)
For the Quarter
Jan - Mar, 2005
Year to date
Jan - Mar, 2004
March 31 ,
2005
March 31 ,
2004
Rupees in '000
Sales
Less: Sales tax,
Excise duty and
development
surcharge
Reimbursement
to Government
12,236,271
8,827,164
35,073,434
23,345,429
1,480,165
1,285,378
4,223,137
3,072,916
10,756,106
7,541,786
30,850,297
20,272,513
(75,709)
(90,995)
(252,491)
(278,640)
7,450,791
30,597,806
19,993,873
6,937,670
28,314,534
18,863,049
513,121
2,283,272
1,130,824
25,726
21,945
74,819
72,412
546,467
491,176
2,208,453
1,058,412
23,750
4,361
53,960
570,217
495,537
2,262,413
3,940
2,418
17,681
10,680,397
Cost of
Sales
Gross
profit
Administrative
expenses
Operating
Profit
Other
income
Financial
charges
10,108,204
572,193
51,873
1,110,285
13,689
>
Workers'
profits
participation
fund
Workers'
welfare fund
Profit before
taxation
Taxation Current
Deferred
Profit after
taxation
Earnings per
share
566,277
493,119
2,244,732
1,096,416
28,314
10,482
24,656
8,741
112,239
39,608
54,962
19,675
38,796
33,397
151,847
74,637
527,481
459,722
2,092,885
1,021,779
189,204
(2,616)
171,496
479
708,178
3,838
353,750
21,544
186,588
171,975
712,016
375,294
340,893
287,747
1,380,869
646,485
Rs. 17.04
Rs. 14.39
Rs. 69.04
Rs. 32.32
The annexed notes form an integral part of these financial
statements.
SALAHUDDIN QURESHI
Chairman
ZAFAR HALEEM
Chief Executive
Statement of Changes in Equity
for the nine months ended March 31, 2005 (Unaudited)
Share
Capital
Reserves
Special
Reserve
Unappropriated
Profit
Total
Rupees in thousand
Balance
as at June
30, 2003
200,000
as
previously
reported
1,947
Change in
accounting
policy for
recogntion
of declared
dividend Note 2(ii)
-
-
Balance
as at June
30, 2003
200,000
as
restated
1,947
Profit for
the nine
months
ended
March 31,
2004
-
-
Transferred
-
-
704,895
-
704,895
-
571,485
19,698
926,540
50,000
50,000
69,698
976,540
646,485
646,485
(571,485)
-
to Special
Reserve
Final
dividend for
the year
ended
June 30,
2003
-
-
-
(50,000)
(50,000)
Interim
dividend for
the year
ending
June 30,
2004
-
-
-
(50,000)
(50,000)
Balance
as at
March 31,
2004
200,000
1,947
1,276,380
44,698
1,523,025
Balance
as at June
30, 2004
200,000
as
previously
reported
1,947
1,338,423
19,698
1,560,068
Change in
accounting
policy for
recogntion
of declared
dividend Note 2(ii)
-
-
50,000
50,000
1,338,423
69,698
1,610,068
Balance
-
200,000
1,947
as on
June 30,
2004 as
restated
Profit for
the nine
months
ended
March 31,
2005
-
-
-
Transferred
to Speical
Reserve
-
-
1,305,869
Final
dividend for
the year
ended
June 30,
2004
-
-
-
(50,000)
(50,000)
Interim
dividend for
the year
ending
June 30,
2005
-
-
-
(50,000)
(50,000)
Balance
as at
March 31,
2005
200,000
44,698
2,890,937
1,380,869
1,380,869
-
1,947
(1,305,869)
2,644,292
The annexed notes form an integral part of these financial statements.
Salahuddin Qureshi
Chairman
Zafar Haleem
Chief Executive
Cash Flow Statement for the nine months ended March 31,
2005(Unaudited)
Mar. 31,
2005
Mar. 31,
2004
Notes
Rupees
(000)
Rupees
(000)
4
1,038,922
1,157,537
(16,565)
(23,227)
(448,947)
(311,731)
1,059
(2,485)
(9,233)
(19,267)
-
100
565,238
800,927
(101,466)
2,802
1,517
4,252
(113,787)
2,690
4,672
2,551
(92,895)
(103,874)
-
(200,000)
(48,278,)
(49,250)
Net cash outflow from financing activities
(48,278)
(249,250)
Net increase in cash and cash equivalents
424,063
447,803
Cash Flow from Operating Activities
Cash generated from operations
Mark-up paid
Taxes paid
Loans and advances (net)
Payment for defined benefit retirement plans
Long - term deposits (net)
Net cash inflow from operating activities
Cash Flow from Investing Activities
Fixed capital expenditure
Proceeds from sale of fixed assets
Profit on deposits received
Dividends received
Net cash outflow frorn investing activities
Cash Flow from Financing Activities
Repayment of long-term finance
Dividend paid
Cash and cash equivalents at the beginning of
period
Cash and cash equivalents at the end of
period
5
(688,529)
(607,535)
(264,466)
(159,732)
The annexed notes form an integral part of these
financial statements.
Salahuddin Qureshi
Chairman
Zafar Haleem
Chief Executive
Notes to the Financial Statements for the nine months ended March 31,
2005 (unaudited)
1. BASIS OF PREPARATION
1.1 These financial statements have been prepared in accordance with the requirements of
International Accounting Standard No. 34, Interim Financial Reporting and are being
submitted to the shareholders as required by section 245 of the Companies Ordinance, 1984
and the listing regulations of the Karachi and Lahore Stock Exchanges.
1.2 The accounting policies and methods of computation adopted for the preparation of
these financial statements are the same as those applied in the preparation of the annual
financial statements of the Company for the year ended June 30, 2004, except as stated in
note 2(ii) below.
1.3 The Refineries were operating till June 30, 2002 under the 1992 Import Parity Pricing
formula whereby the rate of return on paid-up capital was limited to a range of 10 to 40%.
The price fixation of products under the above formula was handled by the Government until
it was handed over to Oil Companies Advisory Committee (OCAC) with certain
amendments, effective July 1, 2001.
The formula was further amended, effective July 1, 2002, for certain refineries including the
Company. Under this tariff protection formula the concerned refineries have been allowed to
charge a deemed duty on some of their products enabling them to run their operations on a
self-financing basis.
Profit after taxation above 50% of paid-up capital as at the date of applicability of the tariff
protection formula i.e. July 1, 2002, so generated, is to be transferred to a Special Reserve
Account to offset against future losses or to make investments for expansion or upgradation
of the respective refineries and is therefore not available for distribution.
2. REVISION OF FOURTH SCHEDULE TO
THE COMPANIES ORDINANCE 1984
In view of the applicability of revised fourth schedule to the Companies Ordinance, 1984, the
Company has prepared these financial statements in accordance with the relevant
requirements of the revised Fourth Schedule. This has resulted in following changes to the
corresponding information:
(i) Sales has been disclosed gross i.e. inclusive of sales tax, and
(ii) Dividend has been recognised as a liability from the date of declaration.
Rupees
(000)
3. OPERATING FIXED ASSETS
Following are the major additions to
operating fixed assets during the period:
Processing plant
85,460
Equipment including furniture, firefighting &
telecommunication system
13,574
Vehicles and other automotive equipment
11,414
110,448
4. CASH GENERATED FROM
OPERATIONS
Mar. 31,
2005
Mar. 31,
2004
Rupees
(000)
Rupees
(000)
2,092,885
1,021,779
Depreciation
67,607
60,374
Profit on disposal of fixed assets
(2,626)
(2,678)
Profit on deposits
(1,517)
(4,672)
Dividend income
(4,252)
(2,551)
Mark-up expense
15,962
13,869
11,679
9,906
(1,140,816)
61,510
1,038,922
1,157,537
Profit before taxation
Adjustments for non-cash charges and
other items:
Provision for defined benefit retirement
plans
Working capital changes -Note 4.1
4.1 WORKING CAPITAL CHANGES
Decrease/(Increase) in current assets
Stores, spares and chemicals
Stock-in-trade
(7,761)
(11,858)
(919,406)
62,034
(1,360,403)
(328,149)
(12,886)
(19,927)
(9,358)
16,340
(169,668)
63,188
Trade debts
Loans and advances
Trade deposits and short-term
prepayments
Other receivables
(2,479,482)
(218,372)
1,215,466
294,740
101,421
(11,333)
21,779
(3,525)
1,338,666
279,882
(1,140,816)
61,510
6,438
18,960
(270,904)
(178,692)
(264,466)
(159,732)
Increase/(Decrease) in current liabilities
Trade and other payables
Workers' profits participation fund
Workers' welfare fund
5. CASH AND CASH EQUIVALENTS
Cash and bank balances
Short-term running finance
6. TRANSACTIONS WITH RELATED PARTIES
Significant related party transactions are :
Transactions during the
period
Relationship
1. Associated
Companies
Nature of
transactions
Dividend
income
Sale of goods
Sale of
services
Purchase of
goods
2005
2004
4,252
2,551
26,179,287
17,605,638
13,771
31,564
15,327,498
5,500,292
Purchase of
services
Insurance claim
recovered
Crude
delivered
2. Entitites whose
directors and that of the
Company have
been
appointed by the same
person(s)
Sale of goods
11,177
6,599
-
656,146
1,993,572
-
1,827,215
-
There are no transactions with Key
Management Personnel other than under
their terms of employment.
7. DATE OF AUTHORIZATION
These financial statements were authorized for issue on April 21, 2005 by
the Board of Directors of the Company.
Salahuddin Qureshi
Chairman
Zafar Haleem
Chief Executive