03 Vision 04 Mission 05 Corporate Information 07 Zero Harm Charter 10 Corporate Objectives, Business Strategy 15 Chairman’s Review 17 Directors’ Report 21 Pattern of Shareholding 25 Six Years’ Key Operational and Financial Data 26 Notice of AGM 31 Statement of Compliance with the Code of Corporate Governance
Contents 34 Review Report to the Members on Statement of Compliance with the Code of Corporate Governance
37 Auditors’ Report to the Members on Unconsolidated Financial Statements 39 Unconsolidated Financial Statements 44 Notes to the Unconsolidated Financial Statements 80 Auditors’ Report to the Members on Consolidated Financial Statements 81 Consolidated Financial Statements 86 Notes to the Consolidated Financial Statements 121 Form of Proxy
To develop a robust foundation of an Oil Marketing Company, with Company, an Oil Marketing of foundation a robust develop To of ways using innovative brand, and a reputed respected a well and our practices business with best in alignment doing businesses Harm Charter". "Zero Vision
Annual Report - 2015
HASCOL 03
HASCOL Annual Report - 2015 04 Mission for gaining recognition industry our oil within compete ethically To on competitors outperforming recognition, and innovation product excellence operational sustainability, environmental of basis the oil the highly competitive in human resources and valuing industry. marketing
(Chairman) (Member) (Member) Human Resource Committee Human Resource Najmus Saquib Hameed Mr. Ali Liaquat Mr. Auditors Anjum Rahman Thornton Grant Accountants Chartered Mr. Mumtaz Hasan Khan Mr. (Chairman) (Member) (Member) (Chairman) (Member)
(Member) (Member) Audit Committee Audit Sohail Hasan Mr. Mr. Liaquat Ali Liaquat Mr. Najmus Saquib Hameed Mr. Committee Strategy Khan Rahmatullah Farooq Mr. Mumtaz Hasan Khan Mr. Ali Liaquat Mr. Saleem Butt Mr.
Company Secretary Company Ul Haq Zeeshan Mr. Directors Directors Akhtar Hasan Khan Dr. Khan Rahmatullah Farooq Mr. Ali Liaquat Mr. Najmus Saquib Hameed Mr. Saleem Butt Mr. Sohail Hasan Mr. Chairman & C.E.O Mumtaz Hasan Khan Mr. Corporate Information Corporate
Annual Report - 2015
HASCOL 05 HASCOL Annual Report - 2015 06 Share Registrar Share Limited of Pakistan Company Depository Central Advisor Legal & Co. Mohsin Tayebaly Consultants & Legal Advocate O ce Registered 105 - 106 No. Suite Forum, The Clifton Khayaban-e-Jami, Floor, 1st Pakistan Karachi, Block - 9, Phone : 92-21-35301343-50 : 92-21-35301351 Fax : 111-757-757 UAN E-mail : [email protected] www.hascol.com Website: Bankers Bankers Allied Bank Limited Bank Limited Askari Limited Bank Al Falah Bank Al Habib Limited Limited Bank Islami Pakistan Bank of Punjab Limited Burj Bank Limited Bank Limited Women First Bank Limited Habib Metropolitan Habib Bank Limited Bank of China Limited and Commercial Industrial JS Bank Limited MCB Bank Limited Bank Limited Meezan Bank of Pakistan National NIB Bank Limited Samba Bank Limited Silkbank Limited Sindh Bank Limited Soneri Bank Limited Limited Bank (Pakistan) Chartered Standard Summit Bank Limited Bank of Khyber The Bank Limited United
Hascol Petroleum Limited has initiated a Zero Harm a Zero has initiated Limited Petroleum Hascol with its health, safety, in compliance approach within the scope sustainability commitments environmental spirit of our The of our legal and regulatory obligations. and other contractors, employees, that ensure is to initiative and emphasis attitude a common stakeholders share and even work at — whether safety health and towards home. has Limited Petroleum Hascol our commitment achieve To the guiding principles throughout set up the following Harm charter. our Zero demonstrate business to Zero Harm Charter Zero
Annual Report - 2015
HASCOL 07 HASCOL Annual Report - 2015 08 Hascol supports Hascol safety health and by proactively with its communicating implement people and that programs specific addresses faced hazards in our industry. A progressive attitude A progressive which acknowledges injuries all workplace that preventable; or disease are encouraged are employees to an incident report near misses; and any is miss a near where defined as a situation have which could consequences adverse if circumstances prevailed. Employees have a have Employees to responsibility any identify and isolate during tasks, hazards or out be it in the o ce and our in operations; on the job continuous are program training achieving for pivotal this mission. Benchmark our HSEQ with our strategic policy partners and competitors in our value add to and continually standards achieve them to review industry exceed or even standards. Our initiative has Our initiative obliged us to contingency prepare any counter plans to event/threat adverse can potentially that disrupt our operations. In conclusion, our In conclusion, belief is based on a that obligation moral we contribution any sets the today make our future; for tone be to strive so we for accountable the best. achieving Ongoing risk assessment of our operations management actively where from seeks feedback as employees our operational occurs. growth Our actions have consequential a direct the to a ect aim to so we environment; our carbon monitor and other foot-print contaminations/pollutant in the span of occurs that and our operations them. mitigate Respect local and Respect so that law international in set a prime example we and the industry; in our operation formulate any avoid to order thus breaches; potential setting an image of a organization. responsible
10 HASCOL Annual Report - 2015
Our business strategy is devised in a manner that manner that in a is devised strategy Our business needs in an fulfilling energy ensures viable and socially responsible environmentally our Limited, Petroleum Hascol At conduct. of a high standard attain to is aspiration as as well profitability with robust performance position in the competitive market strengthening closely liaise with our customers, We environment. fulfill everyone's to partners and policy-makers needs.
good governance and fair play. and fair good governance place, customers give it recognition for international standards, standards, international for it recognition give customers place, A reputation is not built overnight. But when core values are in are values when core But is not built overnight. A reputation The objective of Hascol Petroleum Limited is to to is Limited Petroleum Hascol of objective The the fuel needs of its catering network a retail create reaching the country; base throughout customer and to consumption domestic for areas remote clients in the industrial needs of all the energy cater Hascol manner. an e cient and profitable oil and gas as an recognizes Limited Petroleum needs for future to integral resource energy of world this era in development economic globalization. right. is driven by our long-standing commitment to doing what is what doing to commitment long-standing our by is driven At HASCOL, our focus on sustainability healthy ethics plan ethics healthy sustainability on focus our HASCOL, At and Business Strategy Business and Corporate Objectives Corporate work and regular appraisals based on performance based on performance appraisals and regular work use to means which we some of the few are use of the and best the development promote that recognize We talents of our employees. depends on the full success commercial of all employees. commitment seek to dealers and suppliers with whom we which is mutually beneficial. The business transact will e ectively principles these promote to ability into enter in the decision to be an important factor in such relationship. or remain corporate as responsible our business conducting with applicable comply to members of the society, fundamental support to regulations, and laws of role human rights in line with the legitimate health, to regard proper give and to business, security and the environment. safety, • • the contractors, are stakeholders external The • in believes Limited Petroleum Hascol Overall, General Principles, Business, Compliance and Ethics and Compliance Principles, Business, General and review constant is subject to Charter Harm Zero seek We requirements. as per our business updated and of stakeholders a variety from feedback continuous as the dynamic and unpredictable group interest vested be demands us to business of the oil marketing nature proactive. ensure that all employees are aware of these principles, principles, these of aware are employees all that ensure of this spirit with the in accordance behave and is principles of these application The statement. set of assurance a comprehensive by underpinned our that sure make designed to which are procedures that and confirm the principles understand employees As part of the with them. in accordance act they of responsibility the also it is system, assurance and with safe employees provide to management and report concerns raise to channels confidential the is it return, In non-compliance. of instances suspected report to the employees of responsibility management. the to Principles Business the of breaches how to been fundamental Principles have Business The is crucial to them by and living business our conduct we success. our continued competitive long-term return; benchmarking other return; long-term competitive as industry in the oil marketing leading companies name; and supplement a brand create as to well FUCHS. brand of its a liate growth which services and products providing by base and safety quality, of price, in terms value o er expertise and commercial environmental positive in of Hascol loyalty brand a create thereby products possible the best o ering by customers and services. rights, good and safe respect, utmost receive them commensurate and to conditions working of and conditions terms with competitive hard and innovation appreciate We employment. • and provide investment, shareholders' Protect • customer and maintaining a staunch Developing • and they important assets our most are Employees regular recipients of our donations. Employees can in can Employees donations. our of recipients regular volunteer appropriate time o for given some instances registered. legitimate to and can also refer work Responsibilities its responsibilities recognizes Limited Petroleum Hascol management is The all the stakeholders. towards these priorities and assess continuously to responsible These them on the basis of its assessment. discharge pertain to: responsibilities Business based on our Principles on our based Business discipline coupled and faith unity, of values core Hascol's the are people for and respect integrity with honesty, of our the foundation do and are we all the work basis for all transactions, rules apply to These Principles. Business of every expected behavior the basis of the and are Our all times. at Limited Petroleum in Hascol employee if be upheld will actions and it our is based on reputation the Business and with the law act in accordance we follow partners to our business encourage Principles. We to employees persuade our We principles. these and teamwork, accountability leadership, demonstrate the overall to contribute to behaviors, these and through the It is Limited. Petroleum of Hascol success to example, lead by to of the management responsibility negative manner. negative provided. improper influence. improper company. • in any relationship business Should not a ect • be to or asked been requested Should not have • get to or payo a bribe, as serve to intended Not • and policies of other parties’ the laws Not against Information Sharing Information suppliers and with external sharing information Unless business or our standard the law is against customers shall encourage Limited Petroleum Hascol practise, the quality or improve when it may sharing information memos and on internal Passing use of our products. is strictly / paperwork documentation confidential is given information proprietary if Hascol forbidden; a written that be ensured it has to outside the company, is agreement and non-disclosure confidentiality to established are controls proper and that prepared, the Otherwise, of information. manage the flow of the business is in serious breach employee concerned prosecution. ethics and subject to Public Relation General public as the general considers Limited Petroleum Hascol and in products brilliance our ambassador; its brand thus allow of competitors; outshine that must services optimal level. our desired rise at to share our market for about competitors Dispelling rumors and misinforming the public is highly prohibited to and services products indulges in such activities must that competitor and any OGRA and by be dealt with the guidelines prescribed ethics Our business and legislation. other regulations and comparisons unnecessary avoid guide us to of performance benchmarking of retrospective competitors. Communities Society and Local friend best be society’s aims to Limited Petroleum Hascol within our communities. relationships healthy and foster impacts of the actions we possible monitor Our aim is to facilities recreational create we that pursue and ensure food of fast outlets with provision our retail to adjacent our by an idea provisioned was chains. This franchise a means of light provide to team marketing In addition, Hascol the local residents. to entertainment in interest constructive a takes Limited Petroleum our to related or indirectly directly societal matters social causes are for payments and donation business charities are well-renowned basis. Two made on a regular person who receives it. Employees may accept or give or give accept may it. Employees person who receives the following subject to and entertainment gifts, favors criteria: Meetings and Engagements regular that recognizes Limited Petroleum Hascol is our stakeholders dialogue and engagement with our reporting to committed are We essential. reliable and relevant providing by performance parties; subject to interested legitimately to information confidentiality business of considerations overriding any partners business with employees, in our interactions and listen to endeavour We and local communities. honestly feedback and provide their concerns to respond stringent a also follow Our employees and responsibly. and not to relations work formal rule of having on principles. compromise Compliance of the and regulations all applicable laws with comply We Any operate. we where of Pakistan Islamic Republic and immediate scrutiny of prompt is a matter breach our organization, Within the perpetrators. against action as just which are procedures also internal have we Management our daily tasks. General important for of conduct our code to adhere employees that ensures Our taken. and no short-cuts are procedures and work material disposal of hazardous the safe ensure sites retail pollution. cause environmental and other elements that the contribution and importance our workforce provides provides workforce our importance and the contribution any address to encouraged are Employees growth. in our a on Resource Human the to concerns personal is that facing are they issues any for basis confidential is required, counseling any If their performance. a ecting Hascol is duly notified. management the general critical as these matters prioritises Limited Petroleum for and targets sets standards activities, business and reports appraises and measures, improvement, externally. performance Economics is essential profitability that recognized It is universally and prosperity goals, business achieving for both in It is a measure, growth. future for sustainability will customers that value and brand of e ciency terms showing Limited; Petroleum on Hascol place eventually business The and services. in our products confidence manner; in an economical is conducted foot-print resources corporate the necessary developing whereby to profits and guaranteeing our investment recouping for our supplies for energy future and produce develop our resources reallocate and invest We base. customer from ranging factors all the relevant in view keeping and on a micro social and environmental economic, our decisions making process justify as to so level; macro and their outcome.
favors. the value shall represent Limited Petroleum Hascol Hascol provided. of the goods or services its maximum shall ensure Limited Petroleum who using suppliers from refrain ability to activities: in the following participate prices. the by if requested is only allowed specifications or regulation by or permitted customer, practice. commercial and standards all applicable government regulations. • or services. products Supply unsafe • or regulations. laws Break • Hidden deals and unscrupulous commitments.
• of or exchange agreements reciprocal Avoid • by services and goods for paid price or fee The • • claims about our competitors. false not make Will / blending or change in alteration Product • meet that and services products Only supply safe • and services products, any not misrepresent Will Gifts, favor or entertainment should not be accepted or should not be accepted or entertainment Gifts, favor the obligate or appear to if it will obligate provided Entertainment & Gifts Entertainment Hascol Petroleum Limited shall ensure all procurement all procurement shall ensure Limited Petroleum Hascol a and us by received value on best based are decisions Base the be conducted. needs to supplier analysis only on the merits of of goods and services purchase suitability. and performance quality, price, Supplier Relation Hascol Petroleum Limited will compete for business business for will compete Limited Petroleum Hascol oil in the competitive and honestly aggressively itself in the and shall constrict industry, marketing ways: following Customer Relation Customer Ethics Guideline Ethics the name of by Ethics Charter a Business have We & ETHICS GUIDELINE that COMPLIANCE BUSINESS, highlighting and dealing fair to commitment our dictates entity in the oil marketing as a professional ourselves events consequential any avoid is to Our initiative sector. legislation of local and foreign non-conformance due to General Apart from penal scrutiny. to and be subjected placed has Limited Petroleum Hascol Principles; Business engagement its operational this additional guideline for stakeholders. with the relevant Business Compliance, & Compliance, Business Hascol Petroleum Limited has a positive approach to to approach positive a has Limited Petroleum Hascol management security and environmental health, safety, performance continuous achieve to in order around Harm Charter” revolves Our “Zero improvement. Safeguarding the Human Capital Safeguarding Integrity and Honesty Integrity its operations undertakes Limited Petroleum Hascol in all aspects of and fairness integrity based on honesty, and contractors suppliers, be its customers, the business, the same in our partnerships, and expects external facilitation o er, or indirect direct The interactions. form in any of bribes soliciting or acceptance payments, avoid to expected are Employees is unacceptable. activities and their private between of interest conflicts Insider business. of company their part in the conduct is information company on sensitive and passing trading on behalf of transactions All business forbidden. strictly accurately be reflected must Limited Petroleum Hascol in company of the financial statements in the fairly and subject and are procedures with established accordance auditors. statutory the external audit by to Hascol Petroleum Limited supports the practical supports the practical Limited Petroleum Hascol the amongst competition and fair of free implementation ethically abiding compete seek to members. We industry and within the legislation the local and international by in the relevant laws of applicable competition framework practice business honest is that jurisdiction. Our motto sustainability. business in the long run for rewards reaps Competitive Environment Competitive
objective are stated below: stated are objective a set of share employees Limited’s Petroleum Hascol Faith - Unity, father our founding by beliefs as prescribed of trust, the importance value strongly We and Discipline. great take and professionalism, and teamwork openness, constant places HPL also do business. we pride in how of a high level demonstrate to emphasis on employees of a culture and establish discipline in their role provide to welcome people are ingenuity; where the Management and Human to feedback/suggestion Resource. Principles; for which the which for Principles; Values Hascol on the following Business Business the following on transacts its business based business its transacts Hascol Petroleum Limited Limited Petroleum Hascol
11 HASCOL Annual Report - 2015 12 HASCOL Annual Report - 2015 conducting our business as responsible corporate corporate as responsible our business conducting with applicable comply to members of the society, fundamental support to regulations, and laws of role human rights in line with the legitimate health, to regard proper give and to business, security and the environment. safety, dealers and suppliers with whom we seek to seek to dealers and suppliers with whom we beneficial. The which is mutually business transact will e ectively principles these promote to ability into enter in the decision to be an important factor in such relationship. or remain work and regular appraisals based on performance based on performance appraisals and regular work use to means which we some of the few are use of the and best the development promote that recognize We talents of our employees. depends on the full success commercial of all employees. commitment • in believes Limited Petroleum Hascol Overall, • • the contractors, are stakeholders external The General Principles, Business, Compliance and Ethics and Compliance Principles, Business, General and review constant is subject to Charter Harm Zero seek We requirements. as per our business updated and of stakeholders a variety from feedback continuous as the dynamic and unpredictable group interest vested be demands us to business of the oil marketing nature proactive. ensure that all employees are aware of these principles, principles, these of aware are employees all that ensure of this spirit with the in accordance behave and is principles of these application The statement. set of assurance a comprehensive by underpinned our that sure make designed to which are procedures that and confirm the principles understand employees As part of the with them. in accordance act they of responsibility the also it is system, assurance and with safe employees provide to management and report concerns raise to channels confidential the is it return, In non-compliance. of instances suspected report to the employees of responsibility management. the to Principles Business the of breaches how to been fundamental Principles have Business The is crucial to them by and living business our conduct we success. our continued competitive long-term return; benchmarking other return; long-term competitive as industry in the oil marketing leading companies name; and supplement a brand create as to well FUCHS. brand of its a liate growth which services and products providing by base and safety quality, of price, in terms value o er expertise and commercial environmental positive in of Hascol loyalty brand a create thereby products possible the best o ering by customers and services. rights, good and safe respect, utmost receive them commensurate and to conditions working of and conditions terms with competitive hard and innovation appreciate We employment. COUNTRY POLITICS COUNTRY a. Of Companies of of the Islamic Republic and statutes pursues its activities within the laws Limited Petroleum Hascol of Triple initiatives The objectives. our commercial accomplish legitimately our aim is to whereby Pakistan the pillars of focus where of Pakistan, circles among the corporate evolving gradually are Reporting Bottom principle general our Throughout Responsibility. Social Corporate and Planet and Profit People, are Limited Petroleum Hascol charter. of the TBR implementation of practical will be extracts there statement, their a liates or to political parties or organization, to payments as a rule of thumb does not make with a airs external/internal part in any not take does Company The whatsoever. /representatives However, do so. us to permits instruction arises or authorized issue compliance bodies unless regulatory matters on any our position known make has the right to Limited Petroleum with such dealings, Hascol in which we or the local communities our shareholders our customers, us, our employees, which a ect of our company. practices and the best with our ethical values in a manner which is in accordance operate, Of Employees b. and identified the deal environment the need of a friendly work has encouraged Limited Petroleum Hascol explicitly has been Harassment with all stakeholders. interaction and culture workplace a decent for conduct actions about a and other unwelcome insults, threats, includes: jokes, is unacceptable and what stated is strictly background or educational status social or economic ancestry, religion, age, gender, race, person’s upsets that himself/herself conduct or physically verbally eligible to employee Nor is any forbidden. has Limited Petroleum Hascol environment. work or hostile a fearful creating performance another’s work Charter”. we Harm Also, in the “Zero based on our statements environment working safe provide to ensured shall be violating and employees premises work at or use of illegal substance intoxication discourage engage in political activities in the community, wish to individuals disciplinary action. Where to subjected this is do so where the opportunity to will be given they public o ce, election to for including standing particular scenario. of that the specific circumstances in view keeping appropriate • and provide investment, shareholders' Protect • customer and maintaining a staunch Developing • and they important assets our most are Employees Hascol Petroleum Limited recognizes its responsibilities its responsibilities recognizes Limited Petroleum Hascol management is The all the stakeholders. towards these priorities and assess continuously to responsible These them on the basis of its assessment. discharge pertain to: responsibilities Responsibilities regular recipients of our donations. Employees can in can Employees donations. our of recipients regular volunteer appropriate time o for given some instances registered. legitimate to and can also refer work Business based on our Principles on our based Business discipline coupled and faith unity, of values core Hascol's the are people for and respect integrity with honesty, of our the foundation do and are we all the work basis for all transactions, rules apply to These Principles. Business of every expected behavior the basis of the and are Our all times. at Limited Petroleum in Hascol employee if be upheld will actions and it our is based on reputation the Business and with the law act in accordance we follow partners to our business encourage Principles. We to employees persuade our We principles. these and teamwork, accountability leadership, demonstrate the overall to contribute to behaviors, these and through the It is Limited. Petroleum of Hascol success to example, lead by to of the management responsibility negative manner. negative provided. improper influence. improper company. • in any relationship business Should not a ect • be to or asked been requested Should not have • get to or payo a bribe, as serve to intended Not • and policies of other parties’ the laws Not against Meetings and Engagements regular that recognizes Limited Petroleum Hascol is our stakeholders dialogue and engagement with our reporting to committed are We essential. reliable and relevant providing by performance parties; subject to interested legitimately to information confidentiality business of considerations overriding any partners business with employees, in our interactions and listen to endeavour We and local communities. honestly feedback and provide their concerns to respond stringent a also follow Our employees and responsibly. and not to relations work formal rule of having on principles. compromise Compliance of the and regulations all applicable laws with comply We Any operate. we where of Pakistan Islamic Republic and immediate scrutiny of prompt is a matter breach our organization, Within the perpetrators. against action as just which are procedures also internal have we Management our daily tasks. General important for of conduct our code to adhere employees that ensures Our taken. and no short-cuts are procedures and work material disposal of hazardous the safe ensure sites retail pollution. cause environmental and other elements that Economics is essential profitability that recognized It is universally and prosperity goals, business achieving for both in It is a measure, growth. future for sustainability will customers that value and brand of e ciency terms showing Limited; Petroleum on Hascol place eventually business The and services. in our products confidence manner; in an economical is conducted foot-print resources corporate the necessary developing whereby to profits and guaranteeing our investment recouping for our supplies for energy future and produce develop our resources reallocate and invest We base. customer from ranging factors all the relevant in view keeping and on a micro social and environmental economic, our decisions making process justify as to so level; macro and their outcome. the contribution and importance our workforce provides provides workforce our importance and the contribution any address to encouraged are Employees growth. in our a on Resource Human the to concerns personal is that facing are they issues any for basis confidential is required, counseling any If their performance. a ecting Hascol is duly notified. management the general critical as these matters prioritises Limited Petroleum for and targets sets standards activities, business and reports appraises and measures, improvement, externally. performance Information Sharing Information suppliers and with external sharing information Unless business or our standard the law is against customers shall encourage Limited Petroleum Hascol practise, the quality or improve when it may sharing information memos and on internal Passing use of our products. is strictly / paperwork documentation confidential is given information proprietary if Hascol forbidden; a written that be ensured it has to outside the company, is agreement and non-disclosure confidentiality to established are controls proper and that prepared, the Otherwise, of information. manage the flow of the business is in serious breach employee concerned prosecution. ethics and subject to Public Relation General public as the general considers Limited Petroleum Hascol and in products brilliance our ambassador; its brand thus allow of competitors; outshine that must services optimal level. our desired rise at to share our market for about competitors Dispelling rumors and misinforming the public is highly prohibited to and services products indulges in such activities must that competitor and any OGRA and by be dealt with the guidelines prescribed ethics Our business and legislation. other regulations and comparisons unnecessary avoid guide us to of performance benchmarking of retrospective competitors. Communities Society and Local friend best be society’s aims to Limited Petroleum Hascol within our communities. relationships healthy and foster impacts of the actions we possible monitor Our aim is to facilities recreational create we that pursue and ensure food of fast outlets with provision our retail to adjacent our by an idea provisioned was chains. This franchise a means of light provide to team marketing In addition, Hascol the local residents. to entertainment in interest constructive a takes Limited Petroleum our to related or indirectly directly societal matters social causes are for payments and donation business charities are well-renowned basis. Two made on a regular person who receives it. Employees may accept or give or give accept may it. Employees person who receives the following subject to and entertainment gifts, favors criteria: prices. the by if requested is only allowed specifications or regulation by or permitted customer, practice. commercial and standards all applicable government regulations. favors. the value shall represent Limited Petroleum Hascol Hascol provided. of the goods or services its maximum shall ensure Limited Petroleum who using suppliers from refrain ability to activities: in the following participate • or services. products Supply unsafe • or regulations. laws Break • Hidden deals and unscrupulous commitments. • and services products, any not misrepresent Will • • claims about our competitors. false not make Will / blending or change in alteration Product • meet that and services products Only supply safe • of or exchange agreements reciprocal Avoid • by services and goods for paid price or fee The Hascol Petroleum Limited undertakes its operations its operations undertakes Limited Petroleum Hascol in all aspects of and fairness integrity based on honesty, and contractors suppliers, be its customers, the business, the same in our partnerships, and expects external facilitation o er, or indirect direct The interactions. form in any of bribes soliciting or acceptance payments, avoid to expected are Employees is unacceptable. activities and their private between of interest conflicts Insider business. of company their part in the conduct is information company on sensitive and passing trading on behalf of transactions All business forbidden. strictly accurately be reflected must Limited Petroleum Hascol in company of the financial statements in the fairly and subject and are procedures with established accordance auditors. statutory the external audit by to the Human Capital Safeguarding to approach positive a has Limited Petroleum Hascol management security and environmental health, safety, performance continuous achieve to in order around Harm Charter” revolves Our “Zero improvement. Hascol Petroleum Limited Limited Petroleum Hascol based business its transacts Business the following on the which for Principles; below: stated are objective Values Hascol a set of share employees Limited’s Petroleum Hascol Faith - Unity, father our founding by beliefs as prescribed of trust, the importance value strongly We and Discipline. great take and professionalism, and teamwork openness, constant places HPL also do business. we pride in how of a high level demonstrate to emphasis on employees of a culture and establish discipline in their role provide to welcome people are ingenuity; where the Management and Human to feedback/suggestion Resource. Environment Competitive supports the practical Limited Petroleum Hascol the amongst competition and fair of free implementation ethically abiding compete seek to members. We industry and within the legislation the local and international by in the relevant laws of applicable competition framework practice business honest is that jurisdiction. Our motto sustainability. business in the long run for rewards reaps and Honesty Integrity Business Compliance, & Compliance, Business Guideline Ethics the name of by Ethics Charter a Business have We & ETHICS GUIDELINE that COMPLIANCE BUSINESS, highlighting and dealing fair to commitment our dictates entity in the oil marketing as a professional ourselves events consequential any avoid is to Our initiative sector. legislation of local and foreign non-conformance due to General Apart from penal scrutiny. to and be subjected placed has Limited Petroleum Hascol Principles; Business engagement its operational this additional guideline for stakeholders. with the relevant Relation Customer business for will compete Limited Petroleum Hascol oil in the competitive and honestly aggressively itself in the and shall constrict industry, marketing ways: following Supplier Relation all procurement shall ensure Limited Petroleum Hascol a and us by received value on best based are decisions Base the be conducted. needs to supplier analysis only on the merits of of goods and services purchase suitability. and performance quality, price, & Gifts Entertainment or should not be accepted or entertainment Gifts, favor the obligate or appear to if it will obligate provided work and regular appraisals based on performance performance on based appraisals regular and work to use we which means few the of some are of the use best and development the promote that recognize We employees. of our talents full on the depends success commercial all employees. of commitment to seek whom we and suppliers with dealers The is mutually beneficial. which business transact will e ectively principles these promote to ability into enter to in the decision be an important factor relationship. in such or remain corporate as responsible our business conducting with applicable comply to members of the society, fundamental support to regulations, and laws of role line with the legitimate human rights in health, to regard proper give and to business, security and the environment. safety, • • contractors, the are stakeholders external The • in believes Limited Petroleum Hascol Overall, General Principles, Business, Compliance and Ethics and and Compliance Business, Principles, General and review constant is subject to Charter Harm Zero seek We requirements. business as per our updated and of stakeholders a variety from feedback continuous as the dynamic and unpredictable group interest vested be us to demands business oil marketing of the nature proactive. ensure that all employees are aware of these principles, these of aware are employees all that ensure with the spirit of this in accordance and behave of these principles is application The statement. set of assurance a comprehensive underpinned by our that sure make to designed which are procedures that the principles and confirm understand employees them. As part of the with act in accordance they of the responsibility also it is system, assurance and with safe employees provide management to and report concerns raise channels to confidential the is it return, In non-compliance. of instances suspected report to of the employees responsibility management. the to Principles Business the of breaches how been fundamental to Principles have Business The is crucial to them by and living business our conduct we success. our continued competitive long-term return; benchmarking other benchmarking return; long-term competitive as industry oil marketing in the leading companies name; and supplement a brand create as to well FUCHS. brand of its a liate growth which services and products providing by base and safety quality, price, of in terms value o er expertise and commercial environmental positive in of Hascol loyalty brand a create thereby products possible the best o ering by customers and services. safe rights, good and respect, utmost receive them commensurate and to conditions working of conditions and terms with competitive hard and innovation appreciate We employment. • and provide investment, shareholders' Protect • customer and maintaining a staunch Developing • and they important assets our most are Employees regular recipients of our donations. Employees can in can Employees donations. our of recipients regular volunteer appropriate o for time given instances some registered. legitimate to can also refer and work Responsibilities its responsibilities recognizes Limited Petroleum Hascol is management The the stakeholders. all towards priorities and these assess continuously to responsible These its assessment. them on the basis of discharge to: pertain responsibilities Business based on our Principles Business coupled and discipline faith of unity, values core Hascol's the people are for and respect integrity with honesty, of our the foundation do and are we all the work basis for all transactions, rules apply to Principles. These Business of every expected the basis of the behavior and are all times. Our at Limited Petroleum in Hascol employee be upheld if will our actions and it is based on reputation and the Business with the law act in accordance we follow to partners our business encourage Principles. We to employees our persuade principles. We these and teamwork, accountability leadership, demonstrate overall the to contribute to these behaviors, and through It is the Limited. Petroleum of Hascol success to example, lead by to of the management responsibility negative manner. negative provided. improper influence. improper company. • in any relationship business Should not a ect • be to or asked been requested have Should not • get to or payo a bribe, as serve to intended Not • parties’ other policies of and laws the against Not Information Sharing Information suppliers and with external information sharing Unless business or our standard the law is against customers shall encourage Limited Petroleum Hascol practise, the quality or improve it may when sharing information memos and on internal Passing use of our products. is strictly / paperwork documentation confidential is given information proprietary if Hascol forbidden; a written that be ensured has to it outside the company, is agreement and non-disclosure confidentiality to established are controls proper and that prepared, the Otherwise, of information. manage the flow of the business is in serious breach employee concerned prosecution. ethics and subject to Public Relation General public as the general considers Limited Petroleum Hascol and in products brilliance our ambassador; its brand allow thus of competitors; outshine that must services optimal level. our desired at rise to share our market for about competitors Dispelling rumors and misinforming the public is highly prohibited to and services products indulges in such activities must that competitor and any OGRA and by be dealt with the guidelines prescribed ethics Our business and legislation. other regulations and comparisons unnecessary avoid guide us to of performance benchmarking of retrospective competitors. Communities Society and Local friend best be society’s to aims Limited Petroleum Hascol within our communities. relationships healthy and foster the actions we impacts of possible monitor Our aim is to facilities recreational create we that pursue and ensure food of fast outlets with provision our retail to adjacent our by an idea provisioned was chains. This franchise a means of light provide to team marketing Hascol In addition, the local residents. to entertainment in interest constructive a takes Limited Petroleum our to related or indirectly directly societal matters social causes are for payments and donation business charities are well-renowned basis. Two made on a regular person who receives it. Employees may accept or give give or accept may Employees it. receives who person following the to subject entertainment and favors gifts, criteria: Meetings and Engagements regular that recognizes Limited Petroleum Hascol is our stakeholders dialogue and engagement with our reporting to committed are We essential. reliable and relevant providing by performance parties; subject to interested legitimately to information confidentiality business of considerations overriding any partners business with employees, in our interactions and listen to endeavour We and local communities. honestly feedback and provide their concerns to respond a stringent also follow Our employees and responsibly. and not to relations work formal rule of having on principles. compromise Compliance of the and regulations with all applicable laws comply We Any operate. we where of Pakistan Islamic Republic and immediate scrutiny of prompt is a matter breach our organization, Within the perpetrators. against action as just which are procedures also internal have we Management our daily tasks. General important for of conduct our code to adhere employees that ensures Our taken. and no short-cuts are procedures and work material disposal of hazardous safe the ensure sites retail pollution. cause environmental that and other elements the contribution and importance our workforce provides provides our workforce and importance the contribution any address to encouraged are Employees in our growth. a on Resource Human the to concerns personal is that facing are they issues any basis for confidential is required, counseling If any their performance. a ecting management is duly notified. Hascol the general as critical prioritises these matters Limited Petroleum for and targets activities, sets standards business and reports appraises and measures, improvement, externally. performance Economics is essential profitability that recognized It is universally and prosperity goals, business achieving for both in It is a measure, growth. future for sustainability will customers that value and brand of e ciency terms showing Limited; Petroleum on Hascol place eventually business The and services. our products in confidence manner; in an economical is conducted foot-print resources corporate the necessary developing whereby to profits and guaranteeing our investment recouping for our supplies for energy future produce and develop our resources reallocate and invest We base. customer from ranging factors all the relevant in view keeping and on a micro social and environmental economic, process our decisions making justify so as to level; macro and their outcome.
favors. the value shall represent Limited Petroleum Hascol Hascol provided. of the goods or services its maximum shall ensure Limited Petroleum using suppliers who from refrain ability to activities: in the following participate prices. the by if requested is only allowed specifications or regulation by or permitted customer, practice. commercial and standards all applicable government regulations. • services. or products Supply unsafe • or regulations. laws Break • Hidden deals and unscrupulous commitments.
• of or exchange agreements reciprocal Avoid • by services and goods for paid price or fee The • • claims about our competitors. false make not Will / blending or change in alteration Product • meet that and services products Only supply safe • and services products, any not misrepresent Will Gifts, favor or entertainment should not be accepted or should not be accepted entertainment or Gifts, favor the obligate or appear to if it will obligate provided Entertainment & Gifts Entertainment Hascol Petroleum Limited shall ensure all procurement all procurement shall ensure Limited Petroleum Hascol a and us by received value on best based are decisions the Base conducted. be to needs supplier analysis only on the merits of of goods and services purchase and suitability. performance quality, price, Supplier Relation Hascol Petroleum Limited will compete for business business for will compete Limited Petroleum Hascol oil in the competitive and honestly aggressively in the itself and shall constrict industry, marketing ways: following Customer Relation Customer Ethics Guideline Ethics the name of by Charter Ethics a Business have We that & ETHICS GUIDELINE COMPLIANCE BUSINESS, highlighting and dealing fair to commitment our dictates entity in the oil marketing as a professional ourselves events consequential any avoid is to Our initiative sector. legislation and foreign of local non-conformance due to General Apart from penal scrutiny. to and be subjected placed has Limited Petroleum Hascol Principles; Business engagement its operational for this additional guideline stakeholders. with the relevant Business Compliance, & Compliance, Business Hascol Petroleum Limited has a positive approach to to approach positive a has Limited Petroleum Hascol management security and environmental health, safety, performance continuous achieve to in order around Harm Charter” revolves Our “Zero improvement. Safeguarding the Human Capital the Human Safeguarding Hascol Petroleum Limited undertakes its operations its operations undertakes Limited Petroleum Hascol in all aspects of and fairness integrity based on honesty, and contractors suppliers, be its customers, the business, the same in our and expects partnerships, external facilitation o er, or indirect direct The interactions. form of bribes in any acceptance soliciting or payments, avoid to expected are Employees is unacceptable. activities and their private between of interest conflicts Insider business. of company their part in the conduct is information company on sensitive and passing trading of on behalf transactions business All forbidden. strictly accurately be reflected must Limited Petroleum Hascol in company of the financial statements in the fairly and subject and are procedures with established accordance auditors. statutory the external by audit to Integrity and Honesty Integrity Hascol Petroleum Limited supports the practical supports the practical Limited Petroleum Hascol the amongst competition and fair of free implementation ethically abiding compete seek to members. We industry and within the legislation the local and international by in the relevant laws of applicable competition framework practice business honest is that jurisdiction. Our motto sustainability. business in the long run for rewards reaps Competitive Environment Competitive objective are stated below: stated are objective a set of share employees Limited’s Petroleum Hascol Faith - Unity, father our founding by beliefs as prescribed of trust, the importance value strongly We and Discipline. great and take and professionalism, teamwork openness, constant HPL also places do business. we pride in how of a high level demonstrate to emphasis on employees of a culture and establish discipline in their role provide to welcome people are ingenuity; where the Management and Human to feedback/suggestion Resource. Principles; for which the Principles; for Values Hascol on the following Business Business on the following transacts its business based its business transacts Hascol Petroleum Limited Limited Petroleum Hascol
13 HASCOL Annual Report - 2015 14 HASCOL Annual Report - 2015 Mumtaz Hasan Khan Chairman & Chief Executive conducting our business as responsible corporate corporate as responsible our business conducting with applicable comply to members of the society, fundamental support to regulations, and laws of role line with the legitimate human rights in health, to regard proper give and to business, security and the environment. safety, dealers and suppliers with whom we seek to to seek whom we and suppliers with dealers The is mutually beneficial. which business transact will e ectively principles these promote to ability into enter to in the decision be an important factor relationship. in such or remain work and regular appraisals based on performance performance on based appraisals regular and work to use we which means few the of some are of the use best and development the promote that recognize We employees. of our talents full on the depends success commercial all employees. of commitment • in believes Limited Petroleum Hascol Overall, • • contractors, the are stakeholders external The General Principles, Business, Compliance and Ethics and and Compliance Business, Principles, General and review constant is subject to Charter Harm Zero seek We requirements. business as per our updated and of stakeholders a variety from feedback continuous as the dynamic and unpredictable group interest vested be us to demands business oil marketing of the nature proactive. ensure that all employees are aware of these principles, these of aware are employees all that ensure with the spirit of this in accordance and behave of these principles is application The statement. set of assurance a comprehensive underpinned by our that sure make to designed which are procedures that the principles and confirm understand employees them. As part of the with act in accordance they of the responsibility also it is system, assurance and with safe employees provide management to and report concerns raise channels to confidential the is it return, In non-compliance. of instances suspected report to of the employees responsibility management. the to Principles Business the of breaches how been fundamental to Principles have Business The is crucial to them by and living business our conduct we success. our continued competitive long-term return; benchmarking other benchmarking return; long-term competitive as industry oil marketing in the leading companies name; and supplement a brand create as to well FUCHS. brand of its a liate growth which services and products providing by base and safety quality, price, of in terms value o er expertise and commercial environmental positive in of Hascol loyalty brand a create thereby products possible the best o ering by customers and services. safe rights, good and respect, utmost receive them commensurate and to conditions working of conditions and terms with competitive hard and innovation appreciate We employment. • and provide investment, shareholders' Protect • customer and maintaining a staunch Developing • and they important assets our most are Employees has to be brought to our attention. to be brought has to Limited with any clarification and constructive feedback they deem they feedback and constructive clarification with any Limited General Principles and overall this report to present Hascol Petroleum Petroleum Hascol present to report this Principles and overall General I welcome the sincere initiatives of any respective reader of our reader respective of any initiatives the sincere I welcome Hascol Petroleum Limited recognizes its responsibilities its responsibilities recognizes Limited Petroleum Hascol is management The the stakeholders. all towards priorities and these assess continuously to responsible These its assessment. them on the basis of discharge to: pertain responsibilities Responsibilities regular recipients of our donations. Employees can in can Employees donations. our of recipients regular volunteer appropriate o for time given instances some registered. legitimate to can also refer and work Business based on our Principles Business coupled and discipline faith of unity, values core Hascol's the people are for and respect integrity with honesty, of our the foundation do and are we all the work basis for all transactions, rules apply to Principles. These Business of every expected the basis of the behavior and are all times. Our at Limited Petroleum in Hascol employee be upheld if will our actions and it is based on reputation and the Business with the law act in accordance we follow to partners our business encourage Principles. We to employees our persuade principles. We these and teamwork, accountability leadership, demonstrate overall the to contribute to these behaviors, and through It is the Limited. Petroleum of Hascol success to example, lead by to of the management responsibility negative manner. negative provided. improper influence. improper company. • in any relationship business Should not a ect • be to or asked been requested have Should not • get to or payo a bribe, as serve to intended Not • parties’ other policies of and laws the against Not Meetings and Engagements regular that recognizes Limited Petroleum Hascol is our stakeholders dialogue and engagement with our reporting to committed are We essential. reliable and relevant providing by performance parties; subject to interested legitimately to information confidentiality business of considerations overriding any partners business with employees, in our interactions and listen to endeavour We and local communities. honestly feedback and provide their concerns to respond a stringent also follow Our employees and responsibly. and not to relations work formal rule of having on principles. compromise Compliance of the and regulations with all applicable laws comply We Any operate. we where of Pakistan Islamic Republic and immediate scrutiny of prompt is a matter breach our organization, Within the perpetrators. against action as just which are procedures also internal have we Management our daily tasks. General important for of conduct our code to adhere employees that ensures Our taken. and no short-cuts are procedures and work material disposal of hazardous safe the ensure sites retail pollution. cause environmental that and other elements Economics is essential profitability that recognized It is universally and prosperity goals, business achieving for both in It is a measure, growth. future for sustainability will customers that value and brand of e ciency terms showing Limited; Petroleum on Hascol place eventually business The and services. our products in confidence manner; in an economical is conducted foot-print resources corporate the necessary developing whereby to profits and guaranteeing our investment recouping for our supplies for energy future produce and develop our resources reallocate and invest We base. customer from ranging factors all the relevant in view keeping and on a micro social and environmental economic, process our decisions making justify so as to level; macro and their outcome. the contribution and importance our workforce provides provides our workforce and importance the contribution any address to encouraged are Employees in our growth. a on Resource Human the to concerns personal is that facing are they issues any basis for confidential is required, counseling If any their performance. a ecting management is duly notified. Hascol the general as critical prioritises these matters Limited Petroleum for and targets activities, sets standards business and reports appraises and measures, improvement, externally. performance Information Sharing Information suppliers and with external information sharing Unless business or our standard the law is against customers shall encourage Limited Petroleum Hascol practise, the quality or improve it may when sharing information memos and on internal Passing use of our products. is strictly / paperwork documentation confidential is given information proprietary if Hascol forbidden; a written that be ensured has to it outside the company, is agreement and non-disclosure confidentiality to established are controls proper and that prepared, the Otherwise, of information. manage the flow of the business is in serious breach employee concerned prosecution. ethics and subject to Public Relation General public as the general considers Limited Petroleum Hascol and in products brilliance our ambassador; its brand allow thus of competitors; outshine that must services optimal level. our desired at rise to share our market for about competitors Dispelling rumors and misinforming the public is highly prohibited to and services products indulges in such activities must that competitor and any OGRA and by be dealt with the guidelines prescribed ethics Our business and legislation. other regulations and comparisons unnecessary avoid guide us to of performance benchmarking of retrospective competitors. Communities Society and Local friend best be society’s to aims Limited Petroleum Hascol within our communities. relationships healthy and foster the actions we impacts of possible monitor Our aim is to facilities recreational create we that pursue and ensure food of fast outlets with provision our retail to adjacent our by an idea provisioned was chains. This franchise a means of light provide to team marketing Hascol In addition, the local residents. to entertainment in interest constructive a takes Limited Petroleum our to related or indirectly directly societal matters social causes are for payments and donation business charities are well-renowned basis. Two made on a regular person who receives it. Employees may accept or give give or accept may Employees it. receives who person following the to subject entertainment and favors gifts, criteria: prices. the by if requested is only allowed specifications or regulation by or permitted customer, practice. commercial and standards all applicable government regulations. favors. the value shall represent Limited Petroleum Hascol Hascol provided. of the goods or services its maximum shall ensure Limited Petroleum using suppliers who from refrain ability to activities: in the following participate • services. or products Supply unsafe • or regulations. laws Break • Hidden deals and unscrupulous commitments. • and services products, any not misrepresent Will • • claims about our competitors. false make not Will / blending or change in alteration Product • meet that and services products Only supply safe • of or exchange agreements reciprocal Avoid • by services and goods for paid price or fee The Hascol Petroleum Limited’s employees share a set of share employees Limited’s Petroleum Hascol Faith - Unity, father our founding by beliefs as prescribed of trust, the importance value strongly We and Discipline. great and take and professionalism, teamwork openness, constant HPL also places do business. we pride in how of a high level demonstrate to emphasis on employees of a culture and establish discipline in their role provide to welcome people are ingenuity; where the Management and Human to feedback/suggestion Resource. Environment Competitive supports the practical Limited Petroleum Hascol the amongst competition and fair of free implementation ethically abiding compete seek to members. We industry and within the legislation the local and international by in the relevant laws of applicable competition framework practice business honest is that jurisdiction. Our motto sustainability. business in the long run for rewards reaps and Honesty Integrity its operations undertakes Limited Petroleum Hascol in all aspects of and fairness integrity based on honesty, and contractors suppliers, be its customers, the business, the same in our and expects partnerships, external facilitation o er, or indirect direct The interactions. form of bribes in any acceptance soliciting or payments, avoid to expected are Employees is unacceptable. activities and their private between of interest conflicts Insider business. of company their part in the conduct is information company on sensitive and passing trading of on behalf transactions business All forbidden. strictly accurately be reflected must Limited Petroleum Hascol in company of the financial statements in the fairly and subject and are procedures with established accordance auditors. statutory the external by audit to Capital the Human Safeguarding to approach positive a has Limited Petroleum Hascol management security and environmental health, safety, performance continuous achieve to in order around Harm Charter” revolves Our “Zero improvement. Hascol Petroleum Limited Limited Petroleum Hascol based its business transacts Business on the following which the Principles; for below: stated are objective Values Hascol Business Compliance, & Compliance, Business Guideline Ethics the name of by Charter Ethics a Business have We that & ETHICS GUIDELINE COMPLIANCE BUSINESS, highlighting and dealing fair to commitment our dictates entity in the oil marketing as a professional ourselves events consequential any avoid is to Our initiative sector. legislation and foreign of local non-conformance due to General Apart from penal scrutiny. to and be subjected placed has Limited Petroleum Hascol Principles; Business engagement its operational for this additional guideline stakeholders. with the relevant Relation Customer business for will compete Limited Petroleum Hascol oil in the competitive and honestly aggressively in the itself and shall constrict industry, marketing ways: following Supplier Relation all procurement shall ensure Limited Petroleum Hascol a and us by received value on best based are decisions the Base conducted. be to needs supplier analysis only on the merits of of goods and services purchase and suitability. performance quality, price, & Gifts Entertainment or should not be accepted entertainment or Gifts, favor the obligate or appear to if it will obligate provided
terms of volumes. of volumes. terms amongst the top four oil marketing companies of the country in of the country companies oil marketing four the top amongst exceeded the targets both in volumes and profitability. We are now now are We profitability. and both in volumes the targets exceeded targets for the management and I am pleased to report that we we that report the management and I am pleased to for targets the company. As you are aware, the Board had set very ambitious had set very the Board aware, are As you the company. I am delighted to report that 2015 was another outstanding year for for year outstanding another was 2015 that report to I am delighted Chairman’s Review Chairman’s
15 HASCOL Annual Report - 2015 16 HASCOL Annual Report - 2015 Mumtaz Hasan Khan Chairman & Chief Executive The credit for the superb performance performance superb the for credit The all and management senior the to goes the executed who have the employees a in the company plan of business manner. and e cient diligent was the company of Tax After the Net Profit During the year %. 77.05 of increase an reflecting million 1,133 Rs. reported an all time reached of volumes sales in terms our Similarly, of 39%. an increase MT reflecting high of 1,273,388 has rating our credit performance, of the excellent In view Bonds, Sukuk floated recently our in further and improved –” (Double A Minus). “AA was of the instrument the rating has also been steadily the company of price share The of performance the outstanding and reflecting increasing the company. and installation our Daulatpur completed we In 2015, and Taru in Sahiwal installations new land for acquired and a new Mehmood Kot at has also started Jabba. Work of 26,900 MT has capacity storage Keamari at terminal Machike The and commissioned. been completed 2,500 MT of full with additional tankage now is installation planned on additional has been installation of Mogas. A new demand meet the increased to of land in order acres fifteen in this location. our will improve facilities storage in all these investment The on our impact positive supply chain management and have and profitability. volumes I am confident that the future growth of the company is now assured and the Board and the senior management will and the Board assured is now of the company growth the future that I am confident handsome dividends. with the shareholders reward to continue Finally, I would like to thank the Board for their guidance in pursing an aggressive business strategy and in making strategy business in pursing an aggressive their guidance for thank the Board to like I would Finally, of the management the e orts on record place to also like I would governance. our corporate in improving suggestions the ambitious and exceeding of the company plan the business e ciently executing for and all employees team the Board. set by targets The another major event in 2015, was the decision by Vitol, the largest independent oil trading group in the world, to to in the world, group oil trading independent the largest Vitol, the decision by was in 2015, another major event The 12 next within the 10% more take the option to have They share. of Rs. 162 per a price at in Hascol 15% shares acquire notice. short and at competitively import products will be able to we as one of our shareholders, Vitol months. With of is also a vote in Hascol investment Vitol’s profitability. and impact on our volumes a positive should have This prospects. and its future and in the management of Hascol destination, as an investment both in Pakistan confidence, In 2015, your company was awarded the 20 years lease to manage all the retail outlets on the Islamabad and Lahore outlets on the Islamabad and Lahore manage all the retail lease to the 20 years awarded was company your In 2015, been have of the motorists the comfort for facilities and new modernized been completely outlets have The Motorway. in Punjab especially and increased the country all over image of Hascol brand a positive in has resulted This installed. considerably. our sales volumes Directors’ Report The Directors of your Company are pleased to present the Annual Report of the Company along with audited standalone and consolidated financial statements and auditors’ report thereon for the year ended 31st December 2015.
Financial Results
The profit for the year ended 31st December 2015 after providing for administrative, marketing and distribution expenses, financial and other charges amounts to: Rupees in '000 Profit before taxation 1,196,721 Taxation 63,484 Profit for the year 1,133,237 (Rupees) Earnings per share 9.39
Appropriations and movement in reserves have been disclosed in the Statement of Changes in Equity on page 43 of the Annual Report. 18 HASCOL Annual Report - 2015 April 2016. This This April 2016. th 2 5 5 5 5 4 4 Meetings Attended Director’s Name Director’s 1 Mumtaz Hasan Khan(Chairman) Mr. 7 Saleem Butt Mr. 2 Akhtar Hasan Khan Dr. 5 Sohail Hasan Mr. 3 Khan Rahmatullah Farooq Mr. 6 Ali Liaquat Mr. 4 Najmus Saquib Hameed Mr. significant deviations in operating results of the Company from last year have been discussed in the been discussed have year last from of the Company results in operating significant deviations on page 15. Review Chairman’s detailed in the listing regulations. detailed in the listing regularly reviewed and monitored. reviewed regularly preparation of financial statements and any departure therefrom has been adequately disclosed and has been adequately therefrom departure and any of financial statements preparation explained. and any changes in accounting policies have been disclosed in the financial statements. The accounting accounting The the financial statements. been disclosed in policies have changes in accounting and any and prudent judgment. based on reasonable are estimates the result of its operations, cash flows and changes in equity. and changes in cash flows of its operations, the result S. No. S. No. given below: given interim cash dividend of Rs. 1.50 per share i.e. 15% and 20% bonus shares, already paid. The total dividend for dividend for total paid. The already 15% and 20% bonus shares, i.e. Rs. 1.50 per share cash dividend of interim the for members the of approval The 20% bonus shares. and cash dividend 50% to amount will 2015 year the be held on 28 to Meeting of the Company Annual General the at dividend will be obtained (h) The on page 25 of the Annual Report. has been given six years of last and financial data operating key The (f) as a going concern. continue ability to doubts upon the Company’s no significant are There (g) as Governance, of Corporate of Code practices the best from departure no material has been There (e) (e) and implemented which has been e ectively control of internal maintains a sound system Company The (d) (d) in the been followed have as applicable in Pakistan Standards Financial Reporting International (b) (b) been maintained. have of the Company books of account Proper (c) of financial statements applied in preparation been consistently policies have accounting Appropriate with the best practices. As required under the Code of Corporate Governance, the directors are pleased to pleased to are the directors Governance, of Corporate under the Code As required practices. with the best as follows: state (a) fairly, a airs of state its present Company the of management the by prepared statements financial The approach remains in line with our commitment to provide consistent returns to our shareholders. our to returns consistent provide to in line with our commitment remains approach
is of each Director held and the attendance were of Directors (5) meetings of the Board five During the year, 4. HELD DURING THE YEAR 2015 AND MEETINGS OF THE BOARD OF DIRECTORS BOARD
with the together 35%, i.e. of Rs. 3.50 per share a final cash dividend recommend to is pleased Board The 2. DIVIDENDS 2. The standalone EPS for the year is Rs. 9.39 which is 60% higher than the last year EPS of Rs.5.89. Rs.5.89. EPS of year than the last is 60% higher which is Rs. 9.39 year the EPS for standalone The Despite the challenges faced by the Company due to decline in crude and product prices, your Company has Company your prices, product and crude in decline to due Company the by faced challenges the Despite with of 39% a growth has achieved the Company the year During momentum. growth the maintained successfully of Tax after a Profit generating %, thereby 39.38 by also improved have Profits Gross The MT. 1,273,388 at sales volume of 77.05%. an increase showing year, million of previous Rs. 640.06 to in comparison billion Rs. 1.13 and complying governance corporate good to is committed Limited Petroleum management of Hascol The 3. GOVERNANCE OF CORPORATE WITH THE CODE COMPLIANCE
1 1 1 1 3 3 3 3 4 4 Meetings Attended Meetings Meetings Attended Meetings Attended December 2015 are as follows: are 2015 December st Director’s Name Director’s Director’s Name Director’s Name Director’s July 2015, JCR-VIS Credit Rating Company Limited has re-a rmed the entity ratings of the Company at at of the Company the entity ratings has re-a rmed Limited Company Rating Credit JCR-VIS July 2015, 1 Sohail Hasan (Chairman) Mr. 1 Khan (Chairman) Rahmatullah Farooq Mr. 1 Saquib Hameed (Chairman) Najmus Mr. 2 Saquib Hameed Najmus Mr. 2 Mumtaz Hasan Khan Mr. 2 Mumtaz Hasan Khan Mr. 3 Ali Liaquat Mr. 3 Ali Liaquat Mr. 3 Ali Liaquat Mr. 4 Butt Saleem Mr. th S. No. S. No. S. No. S. No. S. No. S. No. gratuity funds on the basis of audited financial statements as at 31 as at financial statements on the basis of audited funds gratuity bring diversity to the Board and constitute a mix of independent and non-executive directors. The overall overall The directors. a mix of independent and non-executive and constitute the Board to bring diversity of the evaluation. aligned with the results members are is good and the board of the Board performance ‘A+/A-1’ (Single A Plus/A-One). Outlook on ratings is Stable. Outlook on ratings (Single A Plus/A-One). ‘A+/A-1’ education, health and environment through various philanthropic e orts. During the current year the Company the Company year During the current e orts. philanthropic various through and environment health education, hospitals and charitable institutions, educational various million to Rs. 6.35 amounting to paid donations organizations. Directors is as follows: Directors follows: follows: follows: 6. CREDIT RATINGS On 7 and of provident of investments value The its employees. benefit plans for maintains retirement Company The 9. 9. FUNDS AND GRATUITY OF PROVIDENT OF INVESTMENT VALUE Governance. of Corporate with the Code of Compliance in the Statement been provided Details have 8. PROGRAMME TRAINING DIRECTORS e ectively members Board The during the year. evaluated was Company of your of the Board performance The 7. 7. OF THE BOARD PERFORMANCE EVALUATION of areas in the support to Responsibility Social Corporate to respect with roadmap a has Company Your 10. 10. SOCIAL RESPONSIBILITY CORPORATE Gratuity 99,090 Gratuity Fund Provident 54,856 Rupees in '000 of the record attendance (3) meetings. The held three Committee the Human Resources During the year, is as of the Directors record attendance held one (1) meeting. The Committee the Strategy During the year, is as of the Directors record attendance (4) meetings. The held four Committee the Audit the year, During 5. THE YEAR DURING HELD MEETINGS COMMITTEE BOARD
19 HASCOL Annual Report - 2015 HASCOL Annual Report - 2015 20 April 2016. th Mumtaz Hasan Khan Chairman & Chief Executive December 2015 is given on page 21 of the report. is given 2015 December st Thanking you all. you Thanking On behalf of the Board forthcoming annual general meeting and being eligible o ered themselves for the re-appointment. for themselves meeting and being eligible o ered general annual forthcoming held on 28 be to AGM upcoming at approval Shareholders’ subject to 2016, year the for Company account of import duties, general sales tax, income tax and other government levies. levies. government tax and other income sales tax, general of import duties, account contribution of each and every employee of the Company. We would also like to express our thanks to our our thanks to express to also like would We Company. of the employee of each and every contribution their support and for our shareholders to grateful also are We in our products. shown the trust for customers in our management. confidence 31 as at of Shareholding of Pattern statement The 13. OF SHAREHOLDING PATTERN of the the conclusion at will retire Accountants Rahman, Chartered Anjum Thornton Grant Messrs auditors The of the Auditors Anjum Rahman as Thornton Grant the appointment of Messrs has recommended Board The 12. AUDITORS EXTERNAL on exchequer the national billion to of Rs. 29.44 contribution a total has made Company your the year During 11. ECONOMY AND EXCHEQUER THE NATIONAL TO CONTRIBUTION on page 15. Review in the Chairman’s is discussed prospects of future indication A reasonable 15. FUTURE OUTLOOK the acknowledge directors The of the Company. growth behind the sustained drivers the key Our people are 14. ACKNOWLEDGEMENT 14. 1.31 0.11 0.11 0.11 0.11 3.31 0.17 0.17 0.12 0.12 0.15 0.15 0.18 0.18 0.10 0.10 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.74 0.74 3.38 9.38 9.38 0.22 0.22 0.33 0.33 0.62 0.62 0.24 0.24 0.93 0.93 0.39 0.39 0.07 0.07 0.02 0.02 0.03 0.03 0.48 0.48 0.08 0.08 0.08 0.08 0.08 0.04 0.04 0.04 0.04 0.04 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13.44 36.92 36.92
5 5 63 63 95 95 98 80 114 393 393 88,610 88,610 37,898 37,898 15,000 15,000 125,217 53,280 53,280 10,000 10,000 10,000 10,000 10,000 10,000 50,985 50,985 93,042 93,042 127,878 127,878 93,500 93,500 135,337 135,337 217,443 217,443 50,000 50,000 30,000 747,495 747,495 139,850 139,850 179,600 179,600 287,650 287,650 579,426 579,426 1,116,874 1,116,874 476,482 476,482 898,544 898,544 100,000 100,000 209,308 209,308 266,406 1,582,145 1,582,145 400,000 400,000 11,322,526 11,322,526 4,078,406 4,078,406 16,218,049 16,218,049 3,996,006 3,996,006 44,558,818
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 8 16 Shareholders Shareholders Held Shares Percentage CDC - Trustee Faysal Islamic Asset Allocation Fund Fund Allocation Islamic Asset Faysal CDC - Trustee CDC - Trustee NAFA Islamic Principal Protected Fund - II Islamic Principal Protected NAFA CDC - Trustee Fund Equity Value PIML CDC - Trustee CDC - Trustee NAFA Islamic Stock Fund Islamic Stock NAFA CDC - Trustee CDC - Trustee PIML Islamic Equity Fund Islamic Equity PIML CDC - Trustee CDC - Trustee First Habib Stock Fund Habib Stock First CDC - Trustee Fund Equity Askari CDC - Trustee CDC - Trustee KSE Meezan Index Fund Index Meezan KSE CDC - Trustee Fund Habib Islamic Balanced First CDC - Trustee Fund ABL Islamic Stock MCBFSL - Trustee Fund Multi Asset Strategic PIML CDC - Trustee CDC - Trustee First Capital Mutual Fund First CDC - Trustee CDC - Trustee Alfalah GHP Alpha Fund Alfalah CDC - Trustee Fund Stock ABL CDC - Trustee Fund Allocation Islamic Asset Askari MCFSL - Trustee CDC - Trustee Alfalah GHP Stock Fund GHP Stock Alfalah CDC - Trustee CDC - Trustee Alfalah GHP Value Fund Fund GHP Value Alfalah CDC - Trustee Mutual Fund Al Meezan CDC - Trustee Islamic Fund Meezan CDC - Trustee CDC - Trustee Faysal Balanced Growth Fund Growth Balanced Faysal CDC - Trustee Fund Allocation Asset Faysal CDC - Trustee CDC - Trustee NAFA Stock Fund Stock NAFA CDC - Trustee Fund Allocation Asset Askari CDC - Trustee CDC - Trustee Alfalah GHP Islamic Stock Fund GHP Islamic Stock Alfalah CDC - Trustee Fund Allocation Islamic Asset NAFA CDC - Trustee Saleem Butt Khan Rahmatullah Farooq Mumtaz Hasan Khan Categories of Shareholders of Shareholders Categories and minor children and their spouse(s) Directors Ali Liaquat Najmus Saqib Hameed Najmus Saqib Hameed Sohail Hasan Akhtar Hasan Khan Dr. Najmus Saquib Hameed Mutual funds Nazia Malik parties undertakings and related companies, Associated Marshal Gas (Pvt) Limited Executives and corporations companies Public sector institutions, finance Banks, development companies, non-banking finance and pension funds modarabas takaful, companies, insurance Fund Cap. JS Large CDC - Trustee Fund Islamic Stock MCB Pakistan CDC - Trustee Fund Balanced Meezan CDC - Trustee Fossil Energy (Private) Limited Limited (Private) Energy Fossil 1.16 1.16 2.65 2.40 20.61 20.61
61,031 61,031 88,610 88,610 413,110 413,110 119,041 119,041 411,374 411,374 156,136 156,136 618,142 618,142 188,015 188,015 494,711 494,711 275,187 275,187 143,160 143,160 378,195 378,195 218,478 218,478 695,261 695,261 431,245 431,245 316,856 519,483 519,483 236,160 236,160 103,363 103,363 747,495 747,495 680,612 680,612 319,680 319,680 357,666 357,666 179,600 179,600 301,980 301,980 965,222 376,569 376,569 579,426 579,426 1,116,874 1,116,874 664,375 664,375 334,263 334,263 486,247 486,247 476,482 476,482 465,353 465,353 522,466 522,466 333,666 680,552 680,552 326,095 326,095 1,471,184 1,471,184 435,205 435,205 799,206 799,206 752,800 752,800 924,630 924,630 898,544 898,544 208,250 278,600 278,600 305,700 305,700 555,000 555,000 1,752,913 1,752,913 293,000 293,000 1,582,145 1,582,145 1,625,199 1,625,199 240,000 240,000 1,659,213 1,659,213 403,600 403,600 1,186,945 1,186,945 500,000 500,000 300,000 300,000 400,000 400,000 1,091,200 1,091,200 2,338,752 2,338,752 11,322,526 11,322,526 2,235,240 2,235,240 4,065,294 4,065,294 16,218,049 16,218,049 3,996,006 3,996,006 2,499,000 2,499,000 44,558,818 1,404,707 1,404,707 2,895,579 2,895,579 120,679,200 120,679,200 3,203,420 3,203,420 24,868,866 24,868,866 Total Shares Held Shares Total
2 4 66
8671 8671 120,679,200 100.00 8533 8533 100 Shareholders Shareholders Held Shares Percentage
1 to 101 101 to 500 501 501 to 1000 1001 1001 to 5000 5001 5001 to 10000 15001 15001 to 20000 10001 10001 to 15000 75001 75001 to 80000 25001 25001 to 30000 35001 35001 to 40000 55001 55001 to 60000 85001 85001 to 90000 95001 95001 to 100000 65001 65001 to 70000 45001 45001 to 50000 70001 70001 to 75000 20001 20001 to 25000 50001 50001 to 55000 30001 30001 to 35000 115001 115001 to 120000 80001 80001 to 85000 60001 60001 to 65000 90001 90001 to 95000 40001 40001 to 45000 110001 110001 to 115000 175001 175001 to 180000 215001 215001 to 220000 125001 125001 to 130000 135001 135001 to 140000 155001 155001 to 160000 315001 315001 to 320000 185001 185001 to 190000 165001 165001 to 170000 145001 145001 to 150000 120001 120001 to 125000 105001 105001 to 110000 1115001 1115001 to 1120000 130001 130001 to 135000 160001 160001 to 165000 140001 140001 to 145000 575001 575001 to 580000 275001 275001 to 280000 100001 100001 to 105000 745001 745001 to 750000 475001 475001 to 480000 235001 235001 to 240000 245001 245001 to 250000 265001 265001 to 270000 395001 395001 to 400000 895001 895001 to 900000 965001 965001 to 970000 205001 205001 to 210000 550001 550001 to 555000 305001 305001 to 310000 1185001 1185001 to 1190000 290001 290001 to 295000 300001 300001 to 305000 Shareholdings' Slab Shareholdings' 400001 400001 to 405000 1625001 1625001 to 1630000 1470001 1470001 to 1475000 1580001 1580001 to 1585000 2235001 2235001 to 2240000 1090001 1090001 to 1095000 2495001 2495001 to 2500000 3995001 3995001 to 4000000 16215001 16215001 to 16220000 11320001 11320001 to 11325000 44555001 44555001 to 44560000 1 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 1 1 8671 1 2 2 1 2 1 10 10 2 3 3 1 2 34 22 16 18 10 10 3 5 4 3 5 2 3373 3373 1924 132 51 1 5 3 1390 1390 1333 240 7 1 3 3 No. of Shareholders No.
a. Local a. Local Categories of Shareholders of Shareholders Categories General Public General Foreign b. As at December 31, 2015 December As at Foreign companies companies Foreign Totals Totals
Others Pattern of Shareholding of Pattern
21 HASCOL Annual Report - 2015 Annual Report - 2015
22 HASCOL 1.31 0.11 0.11 0.11 0.11 3.31 0.17 0.17 0.12 0.12 0.15 0.15 0.18 0.18 0.10 0.10 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.74 0.74 3.38 9.38 9.38 0.22 0.22 0.33 0.33 0.62 0.62 0.24 0.24 0.93 0.93 0.39 0.39 0.07 0.07 0.02 0.02 0.03 0.03 0.48 0.48 0.08 0.08 0.08 0.08 0.08 0.04 0.04 0.04 0.04 0.04 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13.44 36.92 36.92
5 5 63 63 95 95 98 80 114 393 393 88,610 88,610 37,898 37,898 15,000 15,000 125,217 53,280 53,280 10,000 10,000 10,000 10,000 10,000 10,000 50,985 50,985 93,042 93,042 127,878 127,878 93,500 93,500 135,337 135,337 217,443 217,443 50,000 50,000 30,000 747,495 747,495 139,850 139,850 179,600 179,600 287,650 287,650 579,426 579,426 1,116,874 1,116,874 476,482 476,482 898,544 898,544 100,000 100,000 209,308 209,308 266,406 1,582,145 1,582,145 400,000 400,000 11,322,526 11,322,526 4,078,406 4,078,406 16,218,049 16,218,049 3,996,006 3,996,006 44,558,818
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 8 16 Shareholders Shareholders Held Shares Percentage
CDC - Trustee Faysal Islamic Asset Allocation Fund Fund Allocation Islamic Asset Faysal CDC - Trustee CDC - Trustee NAFA Islamic Principal Protected Fund - II Islamic Principal Protected NAFA CDC - Trustee CDC - Trustee NAFA Islamic Stock Fund Islamic Stock NAFA CDC - Trustee CDC - Trustee PIML Value Equity Fund Equity Value PIML CDC - Trustee CDC - Trustee PIML Islamic Equity Fund Islamic Equity PIML CDC - Trustee CDC - Trustee First Habib Stock Fund Habib Stock First CDC - Trustee CDC - Trustee Askari Equity Fund Equity Askari CDC - Trustee CDC - Trustee KSE Meezan Index Fund Index Meezan KSE CDC - Trustee Fund Habib Islamic Balanced First CDC - Trustee MCBFSL - Trustee ABL Islamic Stock Fund ABL Islamic Stock MCBFSL - Trustee CDC - Trustee PIML Strategic Multi Asset Fund Multi Asset Strategic PIML CDC - Trustee CDC - Trustee First Capital Mutual Fund First CDC - Trustee CDC - Trustee Alfalah GHP Stock Fund GHP Stock Alfalah CDC - Trustee CDC - Trustee Alfalah GHP Alpha Fund Alfalah CDC - Trustee Fund Stock ABL CDC - Trustee MCFSL - Trustee Askari Islamic Asset Allocation Fund Allocation Islamic Asset Askari MCFSL - Trustee CDC - Trustee Faysal Balanced Growth Fund Growth Balanced Faysal CDC - Trustee CDC - Trustee Alfalah GHP Value Fund Fund GHP Value Alfalah CDC - Trustee Mutual Fund Al Meezan CDC - Trustee Islamic Fund Meezan CDC - Trustee CDC - Trustee Faysal Asset Allocation Fund Allocation Asset Faysal CDC - Trustee Fund Stock NAFA CDC - Trustee Fund Allocation Asset Askari CDC - Trustee CDC - Trustee Alfalah GHP Islamic Stock Fund GHP Islamic Stock Alfalah CDC - Trustee Fund Allocation Islamic Asset NAFA CDC - Trustee
Directors and their spouse(s) and minor children and minor children and their spouse(s) Directors Ali Liaquat Mumtaz Hasan Khan As at December 31, 2015 December As at of Shareholders Categories Najmus Saqib Hameed Najmus Saqib Hameed Sohail Hasan Akhtar Hasan Khan Dr. Saleem Butt Khan Rahmatullah Farooq Najmus Saquib Hameed Najmus Saquib Hameed Nazia Malik parties undertakings and related companies, Associated Executives and corporations companies Public sector institutions, finance Banks, development companies, non-banking finance and pension funds modarabas takaful, companies, insurance Mutual funds Fund Islamic Stock MCB Pakistan CDC - Trustee
Marshal Gas (Pvt) Limited Limited (Private) Energy Fossil Fund Cap. JS Large CDC - Trustee Fund Balanced Meezan CDC - Trustee Pattern of Shareholding of Pattern 1.16 1.16 2.65 2.40 20.61 20.61
1,404,707 1,404,707 2,895,579 2,895,579 3,203,420 3,203,420 24,868,866 24,868,866
2 4 66 8671 8671 120,679,200 100.00 8533 8533 Shareholders Shareholders Held Shares Percentage a. Local a. Local Categories of Shareholders of Shareholders Categories Public General Foreign b. Foreign companies companies Foreign Others Totals 1.31 0.11 0.11 0.11 0.11 3.31 0.17 0.17 0.12 0.12 0.15 0.15 0.18 0.18 0.10 0.10 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.74 0.74 3.38 9.38 9.38 0.22 0.22 0.33 0.33 0.62 0.62 0.24 0.24 0.93 0.93 0.39 0.39 0.07 0.07 0.02 0.02 0.03 0.03 0.48 0.48 0.08 0.08 0.08 0.08 0.08 0.04 0.04 0.04 0.04 0.04 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13.44 36.92 36.92
5 5 63 63 95 95 98 80 114 393 393 88,610 88,610 37,898 37,898 15,000 15,000 125,217 53,280 53,280 10,000 10,000 10,000 10,000 10,000 10,000 50,985 50,985 93,042 93,042 127,878 127,878 93,500 93,500 135,337 135,337 217,443 217,443 50,000 50,000 30,000 747,495 747,495 139,850 139,850 179,600 179,600 287,650 287,650 579,426 579,426 1,116,874 1,116,874 476,482 476,482 898,544 898,544 100,000 100,000 209,308 209,308 266,406 1,582,145 1,582,145 400,000 400,000 11,322,526 11,322,526 4,078,406 4,078,406 16,218,049 16,218,049 3,996,006 3,996,006 44,558,818
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 8 16 Shareholders Shareholders Held Shares Percentage CDC - Trustee Faysal Islamic Asset Allocation Fund Allocation Islamic Asset Faysal CDC - Trustee CDC - Trustee NAFA Islamic Principal Protected Fund - II Protected Islamic Principal NAFA CDC - Trustee Fund Equity PIML Value CDC - Trustee CDC - Trustee NAFA Islamic Stock Fund Islamic Stock NAFA CDC - Trustee CDC - Trustee PIML Islamic Equity Fund PIML Islamic Equity CDC - Trustee CDC - Trustee First Habib Stock Fund Stock Habib First CDC - Trustee Fund Equity Askari CDC - Trustee CDC - Trustee KSE Meezan Index Fund Index Meezan KSE CDC - Trustee Fund Islamic Balanced Habib First CDC - Trustee Fund ABL Islamic Stock MCBFSL - Trustee Fund Multi Asset PIML Strategic CDC - Trustee CDC - Trustee First Capital Mutual Fund Capital First CDC - Trustee CDC - Trustee Alfalah GHP Alpha Fund Alfalah CDC - Trustee Fund ABL Stock CDC - Trustee Fund Allocation Islamic Asset Askari MCFSL - Trustee CDC - Trustee Alfalah GHP Stock Fund GHP Stock Alfalah CDC - Trustee CDC - Trustee Alfalah GHP Value Fund Fund GHP Value Alfalah CDC - Trustee Mutual Fund Al Meezan CDC - Trustee Islamic Fund Meezan CDC - Trustee CDC - Trustee Faysal Balanced Growth Fund Growth Balanced Faysal CDC - Trustee Fund Allocation Asset Faysal CDC - Trustee CDC - Trustee NAFA Stock Fund Stock NAFA CDC - Trustee Fund Allocation Asset Askari CDC - Trustee CDC - Trustee Alfalah GHP Islamic Stock Fund GHP Islamic Stock Alfalah CDC - Trustee Fund Allocation Islamic Asset NAFA CDC - Trustee Saleem Butt Khan Rahmatullah Farooq Mumtaz Hasan Khan Categories of Shareholders of Shareholders Categories and minor children and their spouse(s) Directors Ali Liaquat Najmus Saqib Hameed Sohail Hasan Akhtar Hasan Khan Dr. Najmus Saquib Hameed Nazia Malik parties related undertakings and companies, Associated Mutual funds Marshal Gas (Pvt) Limited Executives and corporations companies Public sector institutions, finance Banks, development companies, non-banking finance and pension funds modarabas takaful, companies, insurance Fund Cap. JS Large CDC - Trustee Fund Islamic Stock MCB Pakistan CDC - Trustee Fund Balanced Meezan CDC - Trustee Fossil Energy (Private) Limited Limited (Private) Energy Fossil 1.16 1.16 2.65 9.38 9.38 2.40 20.61 20.61 13.44 36.92 36.92
1,404,707 1,404,707 2,895,579 2,895,579 11,322,526 11,322,526 3,203,420 3,203,420 16,218,049 16,218,049 44,558,818 24,868,866 24,868,866 Shares Held Shares Percentage
2 4 66 8671 8671 120,679,200 100.00 8533 8533 Shareholders Shareholders Held Shares Percentage a. Local a. Local General Public General Foreign b. Categories of Shareholders Shareholders of Categories Foreign companies companies Foreign Marshal Gas (Pvt) Limited Others Totals holding 5% or more Shareholders Mumtaz Hasan Khan Limited (Private) Energy Fossil
Annual Report - 2015
23 HASCOL HASCOL Annual Report - 2015 24 1.31 0.11 0.11 0.11 0.11 3.31 0.17 0.17 0.12 0.12 0.15 0.15 0.18 0.18 0.10 0.10 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.74 0.74 3.38 9.38 9.38 0.22 0.22 0.33 0.33 0.62 0.62 0.24 0.24 0.93 0.93 0.39 0.39 0.07 0.07 0.02 0.02 0.03 0.03 0.48 0.48 0.08 0.08 0.08 0.08 0.08 0.04 0.04 0.04 0.04 0.04 0.04 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13.44 36.92 36.92
5 5 63 63 95 95 98 80 114 393 393 88,610 88,610 37,898 37,898 15,000 15,000 125,217 53,280 53,280 10,000 10,000 10,000 10,000 10,000 10,000 50,985 50,985 93,042 93,042 127,878 127,878 93,500 93,500 135,337 135,337 217,443 217,443 50,000 50,000 30,000 747,495 747,495 139,850 139,850 179,600 179,600 287,650 287,650 579,426 579,426 1,116,874 1,116,874 476,482 476,482 898,544 898,544 100,000 100,000 209,308 209,308 266,406 1,582,145 1,582,145 400,000 400,000 11,322,526 11,322,526 4,078,406 4,078,406 16,218,049 16,218,049 3,996,006 3,996,006 44,558,818
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 8 16 Shareholders Shareholders Held Shares Percentage Gross Margin Gross Rs. 2.84 billion Profit After Tax After Profit billion Rs. 1.13 Revenue (Gross) Revenue billion Rs. 94.07 Financial Achievements 2015 CDC - Trustee Faysal Islamic Asset Allocation Fund Allocation Islamic Asset Faysal CDC - Trustee CDC - Trustee NAFA Islamic Principal Protected Fund - II Protected Islamic Principal NAFA CDC - Trustee CDC - Trustee NAFA Islamic Stock Fund Islamic Stock NAFA CDC - Trustee CDC - Trustee PIML Value Equity Fund Equity PIML Value CDC - Trustee CDC - Trustee PIML Islamic Equity Fund PIML Islamic Equity CDC - Trustee CDC - Trustee First Habib Stock Fund Stock Habib First CDC - Trustee CDC - Trustee Askari Equity Fund Equity Askari CDC - Trustee CDC - Trustee KSE Meezan Index Fund Index Meezan KSE CDC - Trustee Fund Islamic Balanced Habib First CDC - Trustee MCBFSL - Trustee ABL Islamic Stock Fund ABL Islamic Stock MCBFSL - Trustee CDC - Trustee PIML Strategic Multi Asset Fund Multi Asset PIML Strategic CDC - Trustee CDC - Trustee First Capital Mutual Fund Capital First CDC - Trustee CDC - Trustee Alfalah GHP Stock Fund GHP Stock Alfalah CDC - Trustee CDC - Trustee Alfalah GHP Alpha Fund Alfalah CDC - Trustee Fund ABL Stock CDC - Trustee MCFSL - Trustee Askari Islamic Asset Allocation Fund Allocation Islamic Asset Askari MCFSL - Trustee CDC - Trustee Faysal Balanced Growth Fund Growth Balanced Faysal CDC - Trustee CDC - Trustee Alfalah GHP Value Fund Fund GHP Value Alfalah CDC - Trustee Mutual Fund Al Meezan CDC - Trustee Islamic Fund Meezan CDC - Trustee CDC - Trustee Faysal Asset Allocation Fund Allocation Asset Faysal CDC - Trustee Fund Stock NAFA CDC - Trustee Fund Allocation Asset Askari CDC - Trustee CDC - Trustee Alfalah GHP Islamic Stock Fund GHP Islamic Stock Alfalah CDC - Trustee Fund Allocation Islamic Asset NAFA CDC - Trustee
Liaquat Ali Liaquat Mumtaz Hasan Khan Najmus Saquib Hameed Nazia Malik Directors and their spouse(s) and minor children and minor children and their spouse(s) Directors Sohail Hasan Akhtar Hasan Khan Dr. Saleem Butt Khan Rahmatullah Farooq parties related undertakings and companies, Associated Executives and corporations companies Public sector institutions, finance Banks, development companies, non-banking finance and pension funds modarabas takaful, companies, insurance Mutual funds Fund Islamic Stock MCB Pakistan CDC - Trustee Categories of Shareholders of Shareholders Categories Najmus Saqib Hameed Marshal Gas (Pvt) Limited Limited (Private) Energy Fossil Fund Cap. JS Large CDC - Trustee Fund Balanced Meezan CDC - Trustee 1.16 1.16 2.65 2.40 20.61 20.61
1,404,707 1,404,707 2,895,579 2,895,579 3,203,420 3,203,420 24,868,866 24,868,866
2 4 66 8671 8671 120,679,200 100.00 8533 8533 Shareholders Shareholders Held Shares Percentage a. Local a. Local Categories of Shareholders Shareholders of Categories Public General b. Foreign Foreign b. Foreign companies companies Foreign Others Totals 21 (3)
19 82 (275) 43 (282) 311 576
311 145 (111) 1.18 1.18 1.48 (0.04) 617 617 218
93 93 296 281 (257) 281 376 205 302 0.11 0.11 0.15 0.06 0.02 1.10 1.10 1.56 1.53 (0.81)
0.74 0.25 0.65 0.23 1.35 0.36 1.53 0.33 1.72 0.19 (2.76) (2.47)
2015 2014 2013 2012 2011 2010 % 0.20 0.15 % % % 3.02 1.20 1.90 2.06 0.65 1.28 2.37 0.68 3.35 0.73 3.57 0.42 2.27 (2.98) Rs 47.94 34.21 22.01 16.11 7.01 3.22 Rs Rs 9.39 37.53 5.89 30.67 5.97 16.54 3.33 10.07 1.94 6.71 (6.70) 2.72 Ratio Ratio Ratio 0.88:1 0.47:1 0.91:1 0.62:1 0.88:1 0.47:1 0.85:1 0.65:1 0.67:1 0.49:1 0.62:1 0.25:1 Rs/mn Rs/mn Rs/mn Rs/mn Rs/mn 17,916 20,171 8,703 10,975 662 12,059 4,642 6,557 7,630 459 2,798 2,595 3,067 1,913 1,136 1,686 1,214 966 1,549 1,016 Rs/mn Rs/mn 1,133 Rs/mn Rs/mn 640 1,207 8,470 392 906 3,474 656 3,154 656 656 410 Rs/mn Rs/mn Rs/mn Rs/mn 94,065 Rs/mn 76,774 Rs/mn 74,018 Rs/mn 99,061 2,839 84,856 1,630 82,877 57,469 1,197 49,820 2,037 48,506 29,775 1,237 25,992 865 1,360 24,996 19,584 17,094 579 16,394 425 996 9,202 7,947 393 7,738 292 699 257 209 (119) revaluation of fixed assets assets of fixed revaluation Ratios / Market Investment per share Earning / (loss) without surplus per share value Breakup assets of fixed on revaluation with surplus on per share value Breakup Cost / Income ratio ratio / Income Cost on equity Return Liquidity Ratios ratio Current Quick ratio sales to operations from Cash flows liabilities current Cash to % 5.68 0.85 1.90 Cash flows from investing activities investing from Cash flows financing activities from Cash flows Rs/mn during the year Net cash flows Rs/mn Information Investor (2,290) Rs/mn Ratios Profitability 104 ratio profit Gross (1,793) ratio Net profit margin EBITDA 2,178 1,367 (642) 296 (214) (322) (117) (143) Surplus on revaluation of fixed assets assets of fixed Surplus on revaluation Rs/mn statements Summary of cash flow activities operating from Cash flows Rs/mn 1,257 4,364 321 722 358 948 396 307 253 Current assets assets Current liabilities Current assets Non current liabilities Non current Profit/ (loss) after tax after (loss) Profit/ interest, before Earnings / (loss) and amortisation depreciation taxes, Rs/mn Sheet Balance Capital Share 1,788 plant and equipment Property, Inventory Rs/mn 1,264 6,278 633 3,291 464 2,436 300 1,724 (74) 877 782
Six Years’ Key Operational and Financial Data Data Financial and Operational Key Years’ Six Account and Loss Profit (Gross) Revenue (net) Revenue of good sold Cost profit Gross / (loss) profit Operating tax before / (loss) Profit
Annual Report - 2015
25 HASCOL Six Years’ Key Operational and Financial Data Notice of 14th Annual General Meeting March 2016 determined the fee to be paid to be paid to to the fee determined 2016 March th December 2015. December st Fee to be paid to Non-Executive directors and Independent directors for attending Board and Committee and Committee Board attending for and Independent directors directors Non-Executive to be paid to Fee Meetings the to guidance and providing stewardship their significant time in the overall devoting who are experience strategies of e ective of formulation in the form of the Company the a airs senior management in conducting the year for of the Company financial results the outstanding from plans which is also evident and business ended 31 Non-Executive directors and Independent directors for attending Board and Committee meetings. The need The meetings. and Committee Board attending for and Independent directors directors Non-Executive time and assuming sparing their valuable them for compensate fairly is to in their fee revision upward for of all stakeholders. in the interest additional responsibilities in its meeting held on 30 the board of the foregoing, In view members with diversified profile high of competent, is comprised Limited Petroleum of Hascol Board The
st th th Zeeshan Ul Haq Zeeshan April 2015. By Order of the Board Order By th December 2015 is also 2015 December st December 2016. The retiring auditors, auditors, retiring The 2016. December st September 2014 has permitted companies to to companies has permitted 2014 September th July 2012 require that the dividend warrant(s) should bear the dividend warrant(s) that require July 2012 th Annual General Meeting of the Company held on 29 of the Company Meeting Annual General th April 2013 has issued instructions so that the shareholders can get their dividend the shareholders so that instructions has issued April 2013 th Annual General Meeting of Hascol Petroleum Limited will be held on Thursday, 28 will be held on Thursday, Limited Petroleum Hascol Meeting of Annual General Annual General Meeting General Annual th th Annual General Meeting of the Company. Annual General th April 2016 2016 April th Deduction of Income Tax from Dividend for Filer and Non-Filer Dividend for from Tax Deduction of Income on the basis of respectively ‘Filer’ for will be deducted and ‘Non-Filer’income @ 12.5% and 17.5% shareholders the FBR, to (FBR). According of Revenue Board of Federal on the website available (ATL) List Taxpayers Active based on ‘Filer / Non-Filer’ of the status separately will be determined withholding tax in case of joint accounts proportions. based on their shareholding of the joint holder(s) as the status as well principal shareholder of the proportions the shareholding provide to requested are with joint shareholders hold shares Members that Messrs Registrar, our Share them to held by of shares in respect and the joint holder(s) principal shareholder to is not provided information the required case in writing. In Limited of Pakistan Company Depository Central shareholder the principal by in equal proportion held are the shares that it will be assumed Registrar our Share and the joint holder(s). circulate Annual Audited Financial Statements along with Notice of Annual General Meeting to its members Meeting to of Annual General along with Notice Financial Statements Annual Audited circulate and e-mail their consent convey to requested hereby members are this facility, avail to e-mail. In order through Meeting through of Annual General and Notice Financial Statements Annual Audited receiving for address to www.hascol.com, website the Company’s at is available Letter) (Consent Form Request e-mail. A Standard Registrar. Share the Company’s to of his / her CNIC / Passport be sent along with copy Committee meetings of the Company, be and is hereby approved as follows: approved be and is hereby meetings of the Company, Committee Independent directors for attending Board and Committee meetings and in that connection to pass the pass to connection meetings and in that and Committee Board attending for Independent directors addition or deletion: with or without modification, resolution, ordinary as an resolution, following Messrs. Grant Thornton Anjum Rahman, Chartered Accountants, being eligible, have o ered themselves for for themselves o ered have being eligible, Accountants, Anjum Rahman, Chartered Thornton Grant Messrs. re-appointment. 8(4)/SM/CDC-2008 dated 5 dated 8(4)/SM/CDC-2008 CNIC number of the registered member or the authorized person, except in case of minor(s) and corporate and corporate in case of minor(s) person, except member or the authorized CNIC number of the registered CNIC or NTN in case of of their valid copy submitted not yet members who have members. Accordingly, In case of Registrar. Share the Company’s submit the same to to requested entities are corporate till regulator to under intimation of dividend warrants withhold dispatch may the Company non-compliance, of their CNIC as per law. copy the valid provide such time they transacted at the 14 at transacted Registrar, Messrs Central Depository Company of Pakistan Limited, CDC House, 99-B, Block-B, S.M.C.H.S., S.M.C.H.S., 99-B, Block-B, CDC House, Limited, of Pakistan Company Depository Central Messrs Registrar, Karachi. Shahra-e-Faisal, available on the Company’s website www.hascol.com. website on the Company’s available January 2014 read with SRO 831(1)/2012 dated 5 dated with SRO 831(1)/2012 read January 2014 credited in their respective bank accounts electronically without any delay. The members may therefore therefore members may The delay. without any electronically bank accounts in their respective credited by dividend declared all future for their bank account to the dividend directly credit to the Company authorize the details to send their bank account to requested all non-CDC members are Accordingly, the Company. of Company Depository / Central with Participant shares Members who hold Registrar. Share Company’s Depository / Central Broker Stock the concerned to the mandate provide advised to are Limited Pakistan website the Company’s from can be downloaded Form Dividend Mandate The Limited. of Pakistan Company www.hascol.com. December 2015, together with the Directors’ and Auditors’ Reports thereon. Reports and Auditors’ with the Directors’ together 2015, December already dividend and 20% bonus shares, 15% cash the interim cash dividend is in addition to final The Directors. the shareholders. paid to
10 dated SRO 19(1)/2014 (SECP) vide its notification of Pakistan Commission Securities and Exchange The withholding tax on dividend 2015, Act and Finance 2001 Ordinance, Tax 150 of the Income Section Pursuant to (Mandatory) CNIC Copy of Valid Submission
Karachi Company Secretary Company Karachi 1. the 13 of minutes the confirm To Ordinary Business Ordinary Notice is hereby given that the 14 that given is hereby Notice the transact to Karachi, Clifton Avenue, Accountants Chartered Auditorium, the ICAP a.m. at 9:30 at April 2016 business: following Notice of 14 of Notice 2. 2. 31 ended the year for of the Company Statements Financial and adopt the Audited consider receive, To ended 31 the year for Financial Statements the Annual Audited that Please note 6. meeting: Board Attending meeting: Committee Attending of the Chair. with the permission other business Any PKR 100,000/- PKR 100,000/- and Board attending for and Independent directors directors of Non-Executive the fee that RESOLVED 5. and directors Non-Executive be paid to to the fee approve and, if deemed appropriate, consider To 6 Special Business Special Business no. e cient, SECP vide its Circular of cash dividend more of payment the process make to In order (Optional) Dividend Mandate ORDINANCE, 1984 OF THE COMPANIES UNDER SECTION 160 (1) (b) STATEMENT be 5 to no. agenda item at listed Special Business the concerning facts sets out the material statement This Share the Company’s to address change in their registered notify any immediately to requested Members are Change of Address 8 dated 787(1)/2014 S.R.O. its Notification SECP through Email: through of Annual Financial Statements Transmission 3. of the Board by as recommended 35%, i.e. cash dividend of Rs. 3.50 per share of final payment approve To 4. ending 31 the year for and fix their remuneration appoint auditors To
Annual Report - 2015 27 HASCOL HASCOL Annual Report - 2015 28
th May May rd April 2016, are are April 2016, st April 2016 (both April 2016 th May 2016 (both days days (both 2016 May th April 2016 to 28 to April 2016 nd May 2016 to 10 to 2016 May th March 2016 determined the fee to be paid to be paid to to the fee determined 2016 March th April 2016 will be treated in time for attending the Annual General Meeting to be held on 28 be Meeting to the Annual General attending in time for will be treated April 2016 st December 2015. December st signature of the nominee shall be produced (unless it has been provided earlier) at the time of the earlier) at it has been provided (unless of the nominee shall be produced signature Meeting. the shall submit uploaded as per the CDC regulations, details are their registration account ingroup requirement; as per the above form proxy be mentioned on the form; form; proxy entity shall be on behalf of the corporate and vote represent to nominated of the person signature the Company. to form along with the proxy earlier) it has been provided (unless submitted in group account and their registration details are uploaded as per CDC regulations, shall authenticate shall authenticate uploaded as per CDC regulations, details are and their registration account in group or original (CNIC) Identity Card National / her original Computerized his showing his / her identity by the meeting; and the time of attending at passport January 2000 issued by the Securities and Exchange Commission of Pakistan (SECP): of Pakistan Commission the Securities and Exchange by January 2000 issued th (ii) with specimen of attorney / power resolution of directors’ the board entity, In case of a corporate B. Appointing Proxies For (i) the person whose securities are holder and/or holder or sub-account In case of individuals, the account (ii) and CNIC numbers shall (2) persons whose names, addresses, two by shall be witnessed form proxy The (iii) the with furnished be shall proxy the and owners beneficial of passport the or CNIC of copies Attested (iv) the time of the Meeting; and at his / her original CNIC or original passport shall produce proxy The (v) with specimen of attorney / power resolution of directors’ the board entity, In case of a corporate A. the Meeting Attending For (i) the person whose securities are holder and/or holder or sub-account account In case of individuals, the Closure of Share Transfer Books Transfer of Share Closure experience who are devoting their significant time in the overall stewardship and providing guidance to the to guidance and providing stewardship their significant time in the overall devoting who are experience strategies of e ective of formulation in the form of the Company the a airs senior management in conducting the year for of the Company financial results the outstanding from plans which is also evident and business ended 31 Fee to be paid to Non-Executive directors and Independent directors for attending Board and Committee and Committee Board attending for and Independent directors directors Non-Executive to be paid to Fee Meetings Non-Executive directors and Independent directors for attending Board and Committee meetings. The need The meetings. and Committee Board attending for and Independent directors directors Non-Executive time and assuming sparing their valuable them for compensate fairly is to in their fee revision upward for of all stakeholders. in the interest additional responsibilities days inclusive). Transfers received in order at the Company’s Share Registrar, Messrs Central Depository Depository Central Messrs Registrar, Share the Company’s at order in received Transfers inclusive). days of close by Karachi, Shahra-e-Faisal, S.M.C.H.S., 99-B, Block-B, CDC House, Limited, of Pakistan Company on 21 business 2016 will be treated in time for the purpose of entitlement of 35% final cash dividend to the transferees. final cash dividend to of 35% the purpose of entitlement time for in will be treated 2016 inclusive). Transfers received in order at the o ce of our Share Registrar at the close of business on 3 on the close of business at Registrar of our Share the o ce at in order received Transfers inclusive). Meeting. the Annual General at and vote in, participate attend, entitled to be must be e ective to in order Proxies of him / her. instead and vote attend to person as his / her proxy the time of the Meeting and hours before than 48 not less Company of the o ce the registered at received signed and witnessed. be duly stamped, must Holders CDC Account Guidelines for 26 April 2016. 22 from closed shall remain Company Books of the Transfer Share The
NOTES: in its meeting held on 30 the board of the foregoing, In view members with diversified profile high of competent, is comprised Limited Petroleum of Hascol Board The
21 as on of members of the Company Only those persons, whose names appear in the register in the Meeting Participation appoint another Meeting may the Annual General at and vote attend entitled to A member of the Company dated No.1 Circular in as laid down guidelines with the following comply to required holders are CDC account 4 from be closed also shall Company the of Books Transfer Share The
th December 2015 is also 2015 December st September 2014 has permitted companies to to companies has permitted 2014 September th July 2012 require that the dividend warrant(s) should bear the dividend warrant(s) that require July 2012 th April 2013 has issued instructions so that the shareholders can get their dividend the shareholders so that instructions has issued April 2013 th Annual General Meeting of the Company. Annual General th Deduction of Income Tax from Dividend for Filer and Non-Filer Dividend for from Tax Deduction of Income on the basis of respectively ‘Filer’ for will be deducted and ‘Non-Filer’income @ 12.5% and 17.5% shareholders the FBR, to (FBR). According of Revenue Board of Federal on the website available (ATL) List Taxpayers Active based on ‘Filer / Non-Filer’ of the status separately will be determined withholding tax in case of joint accounts proportions. based on their shareholding of the joint holder(s) as the status as well principal shareholder of the proportions the shareholding provide to requested are with joint shareholders hold shares Members that Messrs Registrar, our Share them to held by of shares in respect and the joint holder(s) principal shareholder to is not provided information the required case in writing. In Limited of Pakistan Company Depository Central shareholder the principal by in equal proportion held are the shares that it will be assumed Registrar our Share and the joint holder(s). circulate Annual Audited Financial Statements along with Notice of Annual General Meeting to its members Meeting to of Annual General along with Notice Financial Statements Annual Audited circulate and e-mail their consent convey to requested hereby members are this facility, avail to e-mail. In order through Meeting through of Annual General and Notice Financial Statements Annual Audited receiving for address to www.hascol.com, website the Company’s at is available Letter) (Consent Form Request e-mail. A Standard Registrar. Share the Company’s to of his / her CNIC / Passport be sent along with copy CNIC number of the registered member or the authorized person, except in case of minor(s) and corporate and corporate in case of minor(s) person, except member or the authorized CNIC number of the registered CNIC or NTN in case of of their valid copy submitted not yet members who have members. Accordingly, In case of Registrar. Share the Company’s submit the same to to requested entities are corporate till regulator to under intimation of dividend warrants withhold dispatch may the Company non-compliance, of their CNIC as per law. copy the valid provide such time they 5 dated 8(4)/SM/CDC-2008 available on the Company’s website www.hascol.com. website on the Company’s available S.M.C.H.S., 99-B, Block-B, CDC House, Limited, of Pakistan Company Depository Central Messrs Registrar, Karachi. Shahra-e-Faisal, the 14 at transacted January 2014 read with SRO 831(1)/2012 dated 5 dated with SRO 831(1)/2012 read January 2014 credited in their respective bank accounts electronically without any delay. The members may therefore therefore members may The delay. without any electronically bank accounts in their respective credited by dividend declared all future for their bank account to the dividend directly credit to the Company authorize the details to send their bank account to requested all non-CDC members are Accordingly, the Company. of Company Depository / Central with Participant shares Members who hold Registrar. Share Company’s Depository / Central Broker Stock the concerned to the mandate provide advised to are Limited Pakistan website the Company’s from can be downloaded Form Dividend Mandate The Limited. of Pakistan Company www.hascol.com. withholding tax on dividend 2015, Act and Finance 2001 Ordinance, Tax of the Income Section 150 Pursuant to (Mandatory) CNIC Copy of Valid Submission 10 dated SRO 19(1)/2014 (SECP) vide its notification of Pakistan Commission Securities and Exchange The ended 31 the year for Financial Statements the Annual Audited that Please note (Optional) Dividend Mandate no. e cient, SECP vide its Circular of cash dividend more of payment the process make to In order Change of Address Share the Company’s to address change in their registered notify any immediately to requested Members are ORDINANCE, 1984 OF THE COMPANIES UNDER SECTION 160 (1) (b) STATEMENT be 5 to no. agenda item at listed Business the Special concerning facts sets out the material statement This Email: through of Annual Financial Statements Transmission 8 dated 787(1)/2014 S.R.O. its Notification SECP through March 2016 determined the fee to be paid to be paid to to the fee determined 2016 March th December 2015. December st Fee to be paid to Non-Executive directors and Independent directors for attending Board and Committee Committee and Board attending for directors Independent and directors Non-Executive paid to be to Fee Meetings the to guidance and providing stewardship time in the overall their significant devoting are who experience strategies of e ective formulation of the form in of the Company the a airs in conducting senior management the year for of the Company financial results the outstanding from which is also evident plans and business ended 31 Non-Executive directors and Independent directors for attending Board and Committee meetings. The need need meetings. The and Committee Board attending for directors and Independent directors Non-Executive time and assuming sparing their valuable for them compensate fairly is to fee in their revision upward for of all stakeholders. in the interest additional responsibilities members with diversified high profile competent, of is comprised Limited Petroleum Hascol of Board The meeting held on 30 in its the board of the foregoing, In view
th December 2015 is also 2015 December st September 2014 has permitted companies to to companies permitted has 2014 September th July 2012 require that the dividend warrant(s) should bear should bear the dividend warrant(s) that require July 2012 th April 2013 has issued instructions so that the shareholders can get their dividend the shareholders that so instructions has issued April 2013 th Annual General Meeting of the Company. Annual General th Deduction of Income Tax from Dividend for Filer and Non-Filer Filer and for Dividend from Tax Income of Deduction of on the basis respectively ‘Filer’ for will be deducted and ‘Non-Filer’income @ 12.5% and 17.5% shareholders the FBR, to (FBR). According of Revenue Board of Federal on the website available (ATL) List Taxpayers Active / Non-Filer’ based on ‘Filer the of status separately will be determined accounts tax in case of joint withholding proportions. their shareholding based on joint holder(s) of the as the status well as shareholder principal of the proportions the shareholding provide to requested are with joint shareholders hold shares that Members Messrs Registrar, Share our to them held by of shares in respect and the joint holder(s) principal shareholder to is not provided information case the required In in writing. Limited of Pakistan Company Depository Central the principal shareholder by held in equal proportion are shares the that it will be assumed Registrar our Share and the joint holder(s). circulate Annual Audited Financial Statements along with Notice of Annual General Meeting to its members Meeting to of Annual General with Notice along Financial Statements Annual Audited circulate and e-mail consent their convey to requested hereby members are this facility, avail to e-mail. In order through Meeting through of Annual General and Notice Financial Statements Annual Audited receiving for address to www.hascol.com, website the Company’s at is available Letter) (Consent Form Request e-mail. A Standard Registrar. Share the Company’s to of his / her CNIC / Passport be sent along with copy 8(4)/SM/CDC-2008 dated 5 dated 8(4)/SM/CDC-2008 CNIC number of the registered member or the authorized person, except in case of minor(s) and corporate and corporate case of minor(s) in person, except member or the authorized registered CNIC number of the in case of CNIC or NTN of their valid copy submitted not yet members who have members. Accordingly, In case of Registrar. Share the Company’s submit the same to to requested entities are corporate till regulator to under intimation of dividend warrants withhold dispatch may the Company non-compliance, of their CNIC as per law. copy the valid provide such time they transacted at the 14 at transacted Registrar, Messrs Central Depository Company of Pakistan Limited, CDC House, 99-B, Block-B, S.M.C.H.S., S.M.C.H.S., 99-B, Block-B, CDC House, Limited, of Pakistan Company Depository Central Messrs Registrar, Karachi. Shahra-e-Faisal, available on the Company’s website www.hascol.com. website on the Company’s available January 2014 read with SRO 831(1)/2012 dated 5 dated SRO 831(1)/2012 with read January 2014 credited in their respective bank accounts electronically without any delay. The members may therefore therefore members may The delay. any without electronically bank accounts in their respective credited by declared dividend all future for their bank account to the dividend directly credit to the Company authorize the details to account send their bank to requested are all non-CDC members Accordingly, the Company. of Company Depository Central / with Participant Members who hold shares Registrar. Share Company’s Depository / Central Broker Stock the concerned to mandate the provide to advised are Limited Pakistan website the Company’s from can be downloaded Form Dividend Mandate The Limited. of Pakistan Company www.hascol.com. 10 dated 19(1)/2014 SRO its notification (SECP) vide of Pakistan Commission Securities and Exchange The dividend withholding tax on 2015, Act and Finance 2001 Ordinance, Tax Income Section 150 of the Pursuant to (Mandatory) CNIC Copy of Valid Submission
ended 31 the year for Financial Statements the Annual Audited that Please note no. e cient, SECP vide its Circular of cash dividend more of payment the process make to In order (Optional) Dividend Mandate ORDINANCE, 1984 OF THE COMPANIES UNDER SECTION 160 (1) (b) STATEMENT be 5 to no. agenda item at listed the Special Business concerning facts sets out the material statement This Share the Company’s to address change in their registered notify any immediately to requested Members are Change of Address 8 dated 787(1)/2014 S.R.O. its Notification SECP through Email: through Financial Statements of Annual Transmission
Annual Report - 2015
HASCOL 29 HASCOL Annual Report - 2015 30 March 2016 determined the fee to be paid to be paid to to the fee determined 2016 March th December 2015. December st Fee to be paid to Non-Executive directors and Independent directors for attending Board and Committee Committee and Board attending for directors Independent and directors Non-Executive paid to be to Fee Meetings the to guidance and providing stewardship time in the overall their significant devoting are who experience strategies of e ective formulation of the form in of the Company the a airs in conducting senior management the year for of the Company financial results the outstanding from which is also evident plans and business ended 31 Non-Executive directors and Independent directors for attending Board and Committee meetings. The need need meetings. The and Committee Board attending for directors and Independent directors Non-Executive time and assuming sparing their valuable for them compensate fairly is to fee in their revision upward for of all stakeholders. in the interest additional responsibilities members with diversified high profile competent, of is comprised Limited Petroleum Hascol of Board The
meeting held on 30 in its the board of the foregoing, In view
th December 2015 is also 2015 December st September 2014 has permitted companies to to companies permitted has 2014 September th July 2012 require that the dividend warrant(s) should bear should bear the dividend warrant(s) that require July 2012 th April 2013 has issued instructions so that the shareholders can get their dividend the shareholders that so instructions has issued April 2013 th Annual General Meeting of the Company. Annual General th Deduction of Income Tax from Dividend for Filer and Non-Filer Filer and for Dividend from Tax Income of Deduction of on the basis respectively ‘Filer’ for will be deducted and ‘Non-Filer’income @ 12.5% and 17.5% shareholders the FBR, to (FBR). According of Revenue Board of Federal on the website available (ATL) List Taxpayers Active / Non-Filer’ based on ‘Filer the of status separately will be determined accounts tax in case of joint withholding proportions. their shareholding based on joint holder(s) of the as the status well as shareholder principal of the proportions the shareholding provide to requested are with joint shareholders hold shares that Members Messrs Registrar, Share our to them held by of shares in respect and the joint holder(s) principal shareholder to is not provided information case the required In in writing. Limited of Pakistan Company Depository Central the principal shareholder by held in equal proportion are shares the that it will be assumed Registrar our Share and the joint holder(s). circulate Annual Audited Financial Statements along with Notice of Annual General Meeting to its members Meeting to of Annual General with Notice along Financial Statements Annual Audited circulate and e-mail consent their convey to requested hereby members are this facility, avail to e-mail. In order through Meeting through of Annual General and Notice Financial Statements Annual Audited receiving for address to www.hascol.com, website the Company’s at is available Letter) (Consent Form Request e-mail. A Standard Registrar. Share the Company’s to of his / her CNIC / Passport be sent along with copy CNIC number of the registered member or the authorized person, except in case of minor(s) and corporate and corporate case of minor(s) in person, except member or the authorized registered CNIC number of the in case of CNIC or NTN of their valid copy submitted not yet members who have members. Accordingly, In case of Registrar. Share the Company’s submit the same to to requested entities are corporate till regulator to under intimation of dividend warrants withhold dispatch may the Company non-compliance, of their CNIC as per law. copy the valid provide such time they 5 dated 8(4)/SM/CDC-2008 available on the Company’s website www.hascol.com. website on the Company’s available S.M.C.H.S., 99-B, Block-B, CDC House, Limited, of Pakistan Company Depository Central Messrs Registrar, Karachi. Shahra-e-Faisal, the 14 at transacted January 2014 read with SRO 831(1)/2012 dated 5 dated SRO 831(1)/2012 with read January 2014 credited in their respective bank accounts electronically without any delay. The members may therefore therefore members may The delay. any without electronically bank accounts in their respective credited by declared dividend all future for their bank account to the dividend directly credit to the Company authorize the details to account send their bank to requested are all non-CDC members Accordingly, the Company. of Company Depository Central / with Participant Members who hold shares Registrar. Share Company’s Depository / Central Broker Stock the concerned to mandate the provide to advised are Limited Pakistan website the Company’s from can be downloaded Form Dividend Mandate The Limited. of Pakistan Company www.hascol.com. dividend withholding tax on 2015, Act and Finance 2001 Ordinance, Tax Income Section 150 of the Pursuant to (Mandatory) CNIC Copy of Valid Submission 10 dated 19(1)/2014 SRO its notification (SECP) vide of Pakistan Commission Securities and Exchange The ended 31 the year for Financial Statements the Annual Audited that Please note (Optional) Dividend Mandate no. e cient, SECP vide its Circular of cash dividend more of payment the process make to In order Change of Address Share the Company’s to address change in their registered notify any immediately to requested Members are ORDINANCE, 1984 OF THE COMPANIES (b) UNDER SECTION 160 (1) STATEMENT be 5 to no. agenda item at listed the Special Business concerning facts the material sets out statement This Email: through Financial Statements of Annual Transmission 8 dated 787(1)/2014 S.R.O. its Notification SECP through Statement of Compliance with the Code of Corporate Governance
12. The financial statements of the Company were duly endorsed by Chief Executive O cer and Chief Financial O cer before approval of the Board.
13. The Directors, Chief Executive O cer and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the CCG.
15. The Board has formed an Audit Committee. It comprises of three members, of whom two are non-executive directors and one is an independent director. The chairman of the audit committee is an independent director.
16. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Company and as required by the CCG. The terms of reference of the committee have been formed and advised to the committee for compliance.
17. The Board has formed a Human Resource Committee. It comprises of three members, of whom two are non-executive directors and one is an executive director. The chairman of the committee is a non-executive director.
18. The Board has set up an e ective internal audit function for the Company which was fully operational during the year.
19. 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 (ICAP), that they or any of the partners of the firm, 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 ICAP.
20. 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.
21. The ‘closed period’, prior to the announcement of interim / final results, and business decisions, which may materially a ect the market price of company’s securities, was determined and intimated to directors, employees and stock exchange.
22. Material / price sensitive information has been disseminated among all market participants at once through the stock exchange.
23. As stated above, we confirm that all other material principles enshrined in the CCG have been complied with. This statement is being presented to comply with the Code of Corporate Governance (the “CCG”) contained in Regulation No. 5.19 of listing regulations of the Pakistan Stock Exchange Limited for the purpose of establishing a framework of good governance, whereby a listed company is managed in compliance with the best practices of corporate governance.
The Company has applied the principles contained in the CCG in the following manner:
1. The Company encourages representation of independent non-executive directors and directors representing minority interests on its Board of Directors. At present the Board includes:
Category Names
Independent Director Mr. Sohail Hasan
Executive Directors Mr. Mumtaz Hasan Khan Mr. Saleem Butt
Non-Executive Directors Dr. Akhtar Hasan Khan Mr. Farooq Rahmatullah Khan Mr. Najmus Saquib Hameed Mr. Liaquat Ali
The independent director meets the criteria of independence envisaged under clause 5.19.1 (b) of the CCG.
2. The directors have confirmed that none of them is serving as a director on more than seven listed companies, including this Company.
3. 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, a Development Financial Institution or a Non-Banking Financial Institution, or being a member of a stock exchange, has been declared as a defaulter by that stock exchange.
4. No casual vacancy occurred on the Board of Directors of the Company during the year.
5. 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 supporting policies and procedures.
6. The Board has developed a Vision / Mission statement, overall corporate strategy and significant policies of the Company. A complete record of particulars of significant policies along with the dates on which they were approved or amended has been maintained.
7. All the powers of the Board have been duly exercised and decisions on material transactions, including 32 appointment and determination of remuneration and terms and conditions of employment of the Chief
Executive O cer and non-executive directors, have been taken by the Board. HASCOL
8. The meetings of the Board were presided over by the Chairman and the Board met at least once in every quarter. Written notices of the Board meetings, along with agenda and working papers, were circulated at least seven days before the meetings. The minutes of the meetings were appropriately recorded and circulated. Annual Report - 2015 9. During the year, one director attended the director’s training program conducted by Pakistan Institute of Corporate Governance (PICG).
10. There has been no new appointment for the positions of CFO, Company Secretary or Head of Internal Audit during the year.
11. The Directors’ Report has been prepared in compliance with the requirements of CCG and fully describes the salient matters required to be disclosed.
12. The financial statements of the Company were duly endorsed by Chief Executive O cer and Chief Financial O cer before approval of the Board.
13. The Directors, Chief Executive O cer and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the CCG.
15. The Board has formed an Audit Committee. It comprises of three members, of whom two are non-executive directors and one is an independent director. The chairman of the audit committee is an independent director.
16. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Company and as required by the CCG. The terms of reference of the committee have been formed and advised to the committee for compliance.
17. The Board has formed a Human Resource Committee. It comprises of three members, of whom two are non-executive directors and one is an executive director. The chairman of the committee is a non-executive director.
18. The Board has set up an e ective internal audit function for the Company which was fully operational during the year.
19. 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 (ICAP), that they or any of the partners of the firm, 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 ICAP.
20. 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.
21. The ‘closed period’, prior to the announcement of interim / final results, and business decisions, which may materially a ect the market price of company’s securities, was determined and intimated to directors, employees and stock exchange.
22. Material / price sensitive information has been disseminated among all market participants at once through the stock exchange.
23. As stated above, we confirm that all other material principles enshrined in the CCG have been complied with. 12. The financial statements of the Company were duly endorsed by Chief Executive O cer and Chief Financial O cer before approval of the Board.
13. The Directors, Chief Executive O cer and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the CCG.
15. The Board has formed an Audit Committee. It comprises of three members, of whom two are non-executive directors and one is an independent director. The chairman of the audit committee is an independent director.
16. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Company and as required by the CCG. The terms of reference of the committee have been formed and advised to the committee for compliance.
17. The Board has formed a Human Resource Committee. It comprises of three members, of whom two are non-executive directors and one is an executive director. The chairman of the committee is a non-executive director.
18. The Board has set up an e ective internal audit function for the Company which was fully operational during the year.
19. 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 (ICAP), that they or any of the partners of the firm, 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 ICAP.
20. 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.
21. The ‘closed period’, prior to the announcement of interim / final results, and business decisions, which may materially a ect the market price of company’s securities, was determined and intimated to directors, employees and stock exchange.
22. Material / price sensitive information has been disseminated among all market participants at once through the stock exchange.
23. As stated above, we confirm that all other material principles enshrined in the CCG have been complied with.
33 HASCOL
Karachi: March 30th, 2016 Mumtaz Hasan Khan Chairman & Chief Executive Annual Report - 2015 12. The financial statements of the Company were duly endorsed by Chief Executive O cer and Chief Financial O cer before approval of the Board.
13. The Directors, Chief Executive O cer and executives do not hold any interest in the shares of the Company other than that disclosed in the pattern of shareholding.
14. The Company has complied with all the corporate and financial reporting requirements of the CCG.
15. The Board has formed an Audit Committee. It comprises of three members, of whom two are non-executive directors and one is an independent director. The chairman of the audit committee is an independent director.
16. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Company and as required by the CCG. The terms of reference of the committee have been formed and advised to the committee for compliance.
17. The Board has formed a Human Resource Committee. It comprises of three members, of whom two are non-executive directors and one is an executive director. The chairman of the committee is a non-executive director.
18. The Board has set up an e ective internal audit function for the Company which was fully operational during the year.
19. 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 (ICAP), that they or any of the partners of the firm, 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 ICAP.
20. 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.
21. The ‘closed period’, prior to the announcement of interim / final results, and business decisions, which may materially a ect the market price of company’s securities, was determined and intimated to directors, employees and stock exchange.
22. Material / price sensitive information has been disseminated among all market participants at once through the stock exchange.
23. As stated above, we confirm that all other material principles enshrined in the CCG have been complied with.
34 HASCOL Annual Report - 2015 Annual Report - 2015
35 HASCOL Audited Unconsolidated Financial Statments for the year ended December 31, 2015
UNCONSOLIDATED BALANCE SHEET As At December 31, 2015
2015 2014 Note Rupees in '000 ASSETS
Non-current assets
Property, plant and equipment 5 6,277,928 3,290,784 Intangible 6 1,522 4,288 Long-term investments 7 1,955,310 781,542 Long-term deposits 8 228,631 56,489 Deferred taxation 9 240,096 509,075 Total non-current assets 8,703,487 4,642,178
Current assets Stock-in-trade 10 8,470,018 3,473,704 Trade debts 11 4,263,595 4,548,823 Advances 12 150,606 166,566 Deposits, prepayments and other receivables 13 959,829 1,024,954 Cash and bank balances 14 4,071,547 1,760,933 Total current assets 17,915,595 10,974,980
TOTAL ASSETS 26,619,082 15,617,158
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY Share capital 15 1,206,792 906,000 Reserves 16 3,322,311 1,872,813 Total shareholders' equity 4,529,103 2,778,813
Surplus on revaluation of fixed assets - net of tax 17 1,256,529 320,550
LIABILITIES
Non-current liabilities Long-term finances - secured 18 176,151 278,571 Liabilities against assets subject to finance lease 19 322,930 48,704 Long-term deposits 20 64,132 60,787 Deferred liability - gratuity 21 99,090 71,057 Total non-current liabilities 662,303 459,119
Current liabilities Trade and other payables 22 17,355,596 8,103,145 Mark-up accrued 23 54,311 59,877 Short-term running finances - secured 24 1,413,055 1,271,707 39 Current portion of long term finances - secured 18 285,636 289,309 Current maturity of liabilities against assets subject to finance lease 19 102,597 27,535
HASCOL Taxation 25 959,952 2,307,103 Total current liabilities 20,171,147 12,058,676
TOTAL LIABILITIES 20,833,450 12,517,795
TOTAL EQUITY AND LIABILITIES 26,619,082 15,617,158
Annual Report - 2015 CONTINGENCIES AND COMMITMENTS 26
The annexed notes 1 to 49 form an integral part of these unconsolidated financial statements.
Mumtaz Hasan Khan Najmus Saquib Hameed Chairman & Chief Executive Director UNCONSOLIDATED PROFIT AND LOSS ACCOUNT For The Year Ended December 31, 2015
2015 2014 Note Rupees in '000
Sales - net 27 94,065,297 99,061,496 Less: Sales tax (17,291,360) (14,205,042) Net sales 76,773,937 84,856,454
Other revenue 28 82,831 57,358 Net revenue 76,856,768 84,913,812
Cost of products sold 29 (74,017,815) (82,877,017)
Gross profit 2,838,953 2,036,795
Operating expenses Distribution and marketing 30 (1,053,474) (768,814) Administrative 31 (366,238) (329,387) (1,419,712) (1,098,201)
Other income 32 210,541 298,691
Operating profit 1,629,782 1,237,285
Finance cost 33 (349,652) (264,086) Other charges 34 (83,409) (108,456) (433,061) (372,542)
Profit before taxation 1,196,721 864,743
Taxation 35 (63,484) (224,686)
Profit for the year 1,133,237 640,057
(Restated) 2015 2014 Rupees
40 Earnings per share - basic and diluted 36 9.39 5.89
HASCOL
The annexed notes 1 to 49 form an integral part of these unconsolidated financial statements. Annual Report - 2015
Mumtaz Hasan Khan Najmus Saquib Hameed Chairman & Chief Executive Director UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For The Year Ended December 31, 2015
2015 2014 Note Rupees in '000
Profit for the year 1,133,237 640,057
Other comprehensive income:
Items that will never be reclassified to profit and loss account
Remeasurement of net defined benefit liability - net of tax 21.3 (7,464) (6,199)
Items that may be reclassified subsequently to profit and loss account
Unrealized gain/(loss) due to change in fair value of long- term investment classified as 'available-for-sale' - net of tax 690,662 (5,941) 683,198 (12,140)
Total comprehensive income 1,816,435 627,917
The annexed notes 1 to 49 form an integral part of these unconsolidated financial statements.
41 HASCOL Annual Report - 2015
Mumtaz Hasan Khan Najmus Saquib Hameed Chairman & Chief Executive Director UNCONSOLIDATED CASH FLOW STATEMENT For The Year Ended December 31, 2015
2015 2014 Note Rupees in '000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations 39 4,780,465 910,436 Finance cost paid (355,218) (222,210) Profit on bank deposits 139,662 70,486 Taxes paid (197,891) (36,926) Gratuity paid (3,359) - Net cash generated from operating activities 4,363,659 721,786
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditure incurred (1,735,953) (1,000,788) Proceeds from disposal of property, plant and equipment 2,272 17,683 Long-term investment made during the year (384,440) (827,579) Proceeds from disposal of long-term investment - 47,121 Long-term deposits (172,142) (29,376) Net cash used in investing activities (2,290,263) (1,792,939)
CASH FLOWS FROM FINANCING ACTIVITIES
Lease liability obtained/(repaid) - net 349,288 (18,763) Dividend paid (150,849) (289,920) Proceeds from issuance of shares - net - 1,317,528 Long-term finance (repaid)/obtained - net (106,093) 345,911 Long-term deposits 11,800 12,279 Net cash generated from financing activities 104,146 1,367,035
Net increase in cash and cash equivalents 2,177,542 295,882
Cash and cash equivalents at beginning of the year 480,950 185,068
Cash and cash equivalents at end of the year 40 2,658,492 480,950
The annexed notes 1 to 49 form an integral part of these unconsolidated financial statements. 42 HASCOL Annual Report - 2015
Mumtaz Hasan Khan Najmus Saquib Hameed Chairman & Chief Executive Director UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY For The Year Ended December 31, 2015 Capital Revenue reserve reserve Share Share Fair Unappropri- Total Capital premium value ated profit Rupees in '000
Balance as at January 01, 2014 656,000 3,300 - 426,162 1,085,462
Total comprehensive income for the year Profit for the year - - - 640,057 640,057
Other comprehensive income Remeasurement of net defined benefit liability - net of tax - - - (6,199) (6,199) Unrealized loss due to change in fair value of long-term investment classified as 'available-for-sale' - net of tax - - (5,941) - (5,941) Transferred from surplus on revaluation of fixed assets on account of incremental depreciation - net of tax - - - 37,826 37,826 - - (5,941) 671,684 665,743
Transaction with owners Share issued during the year 250,000 1,162,500 - - 1,412,500 Share issuance cost - (94,972) - - (94,972) First interim dividend at Rs. 1 per share - - - (90,600) (90,600) Second interim dividend at Rs. 1 per share - - - (90,600) (90,600) Third interim dividend at Rs. 1.2 per share - - - (108,720) (108,720) Total transaction with owners 250,000 1,067,528 - (289,920) 1,027,608
Balance as at December 31, 2014 906,000 1,070,828 (5,941) 807,926 2,778,813
Balance as at January 01, 2015 906,000 1,070,828 (5,941) 807,926 2,778,813
Total comprehensive income for the year Profit for the year - - - 1,133,237 1,133,237
Other comprehensive income Remeasurement of net defined benefit liability - net of tax - - - (7,464) (7,464) Unrealized gain due to change in fair value of long-term investment classified as 'available-for-sale' - net of tax - - 690,662 - 690,662 Transferred from surplus on revaluation of fixed assets on account of incremental depreciation - net of tax - - - 84,704 84,704 - - 690,662 1,210,477 1,901,139
Transaction with owners 43 Annual bonus @ 11% Dec 2014 99,660 - - (99,660) - Interim bonus @ 20% June 2015 201,132 - - (201,132) - HASCOL First interim dividend at Rs. 1.5 per share - - - (150,849) (150,849) Total transaction with owners 300,792 - - (451,641) (150,849)
Balance as at December 31, 2015 1,206,792 1,070,828 684,721 1,566,762 4,529,103
Annual Report - 2015 The annexed notes 1 to 49 form an integral part of these unconsolidated financial statements.
Mumtaz Hasan Khan Najmus Saquib Hameed Chairman & Chief Executive Director UNCONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS financial year beginning January 1, 2015 and are relevant to the Company: For The Year Ended December 31, 2015 - IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. 44 January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the HASCOL amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s Annual Report - 2015 - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. 45 January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the HASCOL amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s Annual Report - 2015 - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: 46 (b) Carried using cost model
HASCOL Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Annual Report - 2015 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: 47 (b) Carried using cost model
HASCOL Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Annual Report - 2015 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, 48 or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. HASCOL estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other
hedging instruments, are classified into the following categories upon initial recognition: Annual Report - 2015 comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, 49 or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. HASCOL estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: Annual Report - 2015 comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. 50 Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. HASCOL Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
Annual Report - 2015 4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. 51 Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. HASCOL Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
Annual Report - 2015 4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the 52 operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic HASCOL decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. Annual Report - 2015 The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
financial year beginning January 1, 2015 and are relevant to the Company:
- IFRS 13 ‘Fair value measurement’. The standard aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but 1 STATUS AND NATURE OF BUSINESS provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements. Hascol Petroleum Limited (the Company) was incorporated in Pakistan as a private limited Company on March 28, 2001. On September 12, 2007 the Company was converted into a public unlisted Company and on May 12, - IAS 27 (Revised) ‘Separate financial statements’. This standard replaces the current IAS 27 ‘Consolidated 2014 the Company was listed on the Karachi, Lahore and Islamabad Stock Exchanges of Pakistan (due to and Separate Financial Statements’ (as amended in 2008) and includes the provisions on separate financial demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The o ce of the Company is situated at Suite No. 105-106, The Forum, Khayaban-e-Jami, Clifton, Karachi. The Company's current accounting treatment is already in line with the requirements of this standard. principal activity of the Company are procurement, storage and marketing of petroleum and related products, for which the Company obtained oil marketing license from Ministry of Petroleum and Natural Resources in the - IAS 19 (Amendment) ‘Employee benefits’. The amendment applies to contributions from employees or year 2005. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment distinguishes between contributions that are linked to service only in the period in which they arise and 1.1 These unconsolidated financial statements are separate financial statements of the Company in which those linked to service in more than one period. The objective of the amendment is to simplify the investments in subsidiary are accounted for on the basis of direct interest rather than on the basis of reported accounting for contributions that are independent of the number of years of employee's service, for results. Consolidated financial statements are prepared separately. example employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those Subsidiary contributions over employee’s working lives. The amendment does not have any impact on the Company's financial statements. Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the company which is incorporated in Pakistan. - IAS 24 (Amendment) ‘Related party disclosures’. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent 2 BASIS OF PREPARATION of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting entity is required. The amendment does not have any impact on the Company's financial statements. 2.1 Statement of compliance b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not These unconsolidated financial statements have been prepared in accordance with the Approved Accounting relevant Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic The other new standards, amendments to published standards and interpretations that are mandatory for the Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies on the Company's financial reporting and operations. Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the Standards, amendments to published standards and interpretations that are not yet e ective and have not requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall been early adopted by the Company. prevail. The following new standards and amendments to published standards are not e ective for the financial year 2.2 Basis of measurement beginning on January 1, 2015 and have not been early adopted by the Company:
These unconsolidated financial statements have been prepared under the historical cost convention, except for - IAS 27 (Amendment) ‘Separate financial statements’ (e ective for annual periods beginning on or after certain assets and liabilities which are stated at revalued amount. January 1, 2016). The amendment allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the In these unconsolidated financial statements, except for the unconsolidated statement of cash flows, all the amendment will have any significant impact on the Company's financial statements. transactions have been accounted for on an accrual basis. Amendments to following standards as a result of annual improvements to International Financial 2.3 Functional and presentation currency Reporting Standards issued by IASB:
These unconsolidated financial statements are presented in Pakistani Rupees which is also the Company’s - IFRS 7 ‘Financial instruments: Disclosures’ (e ective for annual periods beginning on or after January 1, functional currency. 2016). There are two amendments:
2.4 Standards and amendments to published approved International Financial Reporting Standards not yet • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which e ective allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing involvement that the entity might still have in the transferred assets. The standard provides guidance Initial application of a Standard, Amendment or an Interpretation to an existing Standard about what is meant by continuing involvement. The amendment is prospective with an option to apply retrospectively. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
The following standards, amendments to published standards and interpretations are mandatory for the
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, ‘Disclosure – O setting financial assets and financial liabilities’ is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19, ‘Employee benefits’ (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep market in high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress. bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep market in high-quality corporate bonds in that currency, government bonds in the relevant currency should The Company accounts for property, plant and equipment acquired under finance leases by recording the be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It assets and the related liability. These amounts are determined at the inception of lease, on the basis of the is unlikely that the standard will have any significant impact on the Company's financial statements. lower of the fair value of the leased properties and the present value of minimum lease payments. Financial charges are allocated to the accounting period in a manner so as to provide a constant rate of charge on the - IAS 34, ‘Interim financial reporting’ (e ective for annual periods beginning on or after July 1, 2016). This outstanding liability. amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in the interim financial report’. The amendment also amends IAS 34 to require a cross-reference from the (b) Capital work-in-progress (CWIP) interim financial statements to the location of that information. The amendment is retrospective. It is unlikely that the standard will have any significant impact on the Company's financial statements. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction / installation period are carried to CWIP. These expenditures are There are number of other standards, amendments and interpretations to the published standards that are transferred to operating fixed assets as and when these are available for intended use. not yet e ective and are also not relevant to the Company and therefore, have not been presented here. Measurement subsequent to initial recognition 3 CRITICAL ASSUMPTIONS, ESTIMATES AND MEASUREMENT UNCERTAINITY (a) Carried using revaluation model The preparation of unconsolidated financial statements in conformity with approved accounting standards, as applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. application of accounting policies and reported amounts of assets and liabilities, income and expenses. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the - Building on lease hold land judgments about carrying values of assets and liabilities that are not readily apparent from other sources. - Tanks and pipelines Actual results may di er from these estimates. - Dispensing pumps The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting - Plant and machinery estimates are recognized in the period in which the estimates are revised, if the revision a ects only that - Electrical, mechanical and fire fighting equipments. period, or in the period of the revision and future periods if the revision a ects both current and future periods. Fair value is determined by external professional valuers with su cient regularity such that the carrying Accounting policies in respect of judgments made by management in the application of approved accounting amount does not di er materially from that which would be determined using fair value at the balance sheet standards, as applicable in Pakistan, that have significant e ect on the Company's unconsolidated financial date. statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: (b) Carried using cost model
Note Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and accumulated impairment losses. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 Depreciation c) Provisions 4.9 d) Taxation 4.12 Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for depreciation are applied to owned assets and assets acquired under finance lease. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at 4 SIGNIFICANT ACCOUNTING POLICIES the rates as disclosed in note 5.1.
The principal accounting policies applied in the preparation of these unconsolidated financial statements are Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. and improvements are capitalized and the assets so replaced, if any, are retired.
Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. described below. All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade Surplus on revaluation of fixed assets receivables which is presented within other expenses.
The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” Loans and receivables shown below equity in the unconsolidated balance sheet. Accordingly the Company has adopted the following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is - depreciation on assets which are revalued is determined with reference to the value assigned to such immaterial. The Company`s cash and bank balances fall into this category of financial instruments. assets on revaluation and depreciation charge for the year is taken to the unconsolidated profit and loss account; and Receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through Unconsolidated At fair value through profit or loss - held-for-trading Statement of Changes in Equity to record realization of surplus to the extent of the incremental depreciation charge for the year. Financial assets at fair value through profit or loss - held for trading include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through profit or 4.2 Intangible assets loss - held-for-trading upon initial recognition.
These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair accumulated impairment losses, if any. values of financial assets in this category are determined by reference to active market transactions or using a valuation technique where no active market exists. The Company do not currently have any asset in this Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated category. impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line method. HTM investments
Amortization on addition and deletion of intangible assets during the year is charged in proportion to the HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance other than loans and receivables. Investments are classified as HTM if the Company has the intention and sheet date. ability to hold them until maturity. The Company do not currently have any asset in this category.
Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the 4.3 Financial instruments financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Recognition, initial measurement and derecognition AFS financial assets Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs, AFS financial assets are non-derivative financial assets that are either designated to this category or do not except for those carried at fair value through profit or loss which are measured initially at fair value. qualify for inclusion in any of the other categories of financial assets. These are primarily those investments Subsequent measurement of financial assets and financial liabilities is described below. that are intended to be held for an undefined period of time or may be sold in response to the need for liquidity. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be derecognised when it is extinguished, discharged, cancelled or expires. estimated reliably. Impairment charges are recognised in profit or loss. All other AFS financial assets are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within Classification and subsequent measurement of financial assets the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign exchange di erences on monetary assets, which are recognised in unconsolidated profit or loss. When the For the purpose of subsequent measurement financial assets, other than those designated and e ective as asset is disposed of or is determined to be impaired, the cumulative gain or loss recognised in other hedging instruments, are classified into the following categories upon initial recognition: comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest method and dividends are recognised in profit or loss within finance income. • loans and receivables • at fair value through profit or loss (FVTPL) - held-for-trading Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments • held-to-maturity (HTM) investments impairment reversals are not recognised in profit loss and any subsequent increase in fair value is recognised • available-for-sale (AFS) financial assets. in other comprehensive income. The company does not currently have any other asset other than as provided in this category. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Di erent criteria to determine impairment are applied for each category of financial assets, which are
Classification and subsequent measurement of financial liabilities purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units). The Company financial liabilities include: An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss the carrying amount that would have been determined, if no impairment loss had been recognized. account are included within finance costs or finance income. 4.8 Cash and cash equivalents 4.4 O setting Cash and cash equivalents are carried in the unconsolidated balance sheet at cost. For the purposes of the Financial assets and liabilities are o set and the net amount is reported in the unconsolidated balance sheet unconsolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other if the Company has a legally enforceable right to o -set the transactions and also intends either to settle on a items of current asset and current liabilities which qualify as cash equivalent. net basis or to realize the asset and settle the liability simultaneously. 4.9 Provisions 4.5 Investments Provisions are recognized when the Company has a present legal or constructive obligation as a result of past (a) Investment in subsidiary events, 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. Provisions are reviewed at each balance sheet date and adjusted to Subsidiaries are those enterprises in which the parent Company directly or indirectly controls, beneficially reflect the current best estimate. owns or holds more than 50% of the voting securities or otherwise has the power to elect and appoint more than 50% of its Directors. 4.10 Lease
Investment in subsidiary company is stated at cost and the carrying amount is adjusted for impairment, if any, 4.10.1 Finance leases to the recoverable amounts of such investments. Leases in terms of which the Company has substantially all the risks and rewards of ownership are classified as (b) Other investments finance leases. Assets obtained under finance lease are accounted for in accordance with policy stated in note 4.1. The Company classifies its investment 'as available-for-sale', that do not fall under the held-for-trading or held-to-maturity. Unrealized surplus/deficit arising on revaluation of long term investment classified as The related rental obligations, net of finance costs are classified as current and long term depending upon the 'available-for-sale' is disclosed below the share holders' equity in the statement of unconsolidated financial timing of the payment. statement. Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in balance outstanding. The interest element of the rental is charged to income over the lease term. fair value reserve on the unconsolidated balance sheet below equity is removed there from and recognized in profit and loss. 4.10.2 Operating leases
4.6 Stock-in-trade Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the Stock-in-trade is valued at the lower of cost and net realizable value (NRV). lessor) are charged to the income statement on a straight-line basis over the period of lease.
Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is 4.10.3 Ijarah made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the unconsolidated profit and loss account. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the The cost of stock in trade is determined on moving weighted average basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to Provision is made for obsolete/slow moving stocks where necessary and recognized in the unconsolidated the profit and loss account on a straight line basis over the lease term. profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less estimated costs necessary to be incurred in order to make a sale. 4.11 Foreign currency translations
4.7 Impairment of non financial assets Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to unconsolidated any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An profit and loss account. impairment loss is recognized, as an expense in the unconsolidated profit and loss, for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the fair value less cost to sell and value in use. exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Value in use is ascertained through discounting of the estimated future cash flows using a discount rate that reflects current market assessments of the time value of money and the risk specific to the assets. For the
4.12 Taxation 4.15 Retirement and other service benefits
Taxation for the year comprises current and deferred tax. Taxation is recognized in the profit and loss account Unfunded gratuity scheme except to the extent that it relates to items recognized outside profit and loss account (whether in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized outside During the year ended 2013, the Company had changed its accounting policy in respect of post-retirement unconsolidated profit and loss account. defined benefits plan as required under International Accounting Standard (IAS) 19, "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other Comprehensive Income (OCI) in the 4.12.1 Current periods in which they occur. Amounts recorded in the unconsolidated profit and loss account are limited to current service and past service costs, gains or losses on settlements, and net interest income (expense). All The Company accounts for taxation on the basis of taxable income at the current rates of taxation as other changes in the net defined benefit obligation are recognized directly in other comprehensive income applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in with no subsequent recycling through the unconsolidated profit and loss account. accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. Contributory provident fund
4.12.2 Deferred The Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Company as well as the employee at the rate of 5.72% percent of the Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the basic salary. carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement 4.16 Borrowings and borrowing cost of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax asset is recognized only to the extent that it is probable that the future taxable profits will be available and Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently credits can be utilized. stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption value is recognized in the unconsolidated profit and loss account over the period of the borrowings using the Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, e ective interest method. based on the tax rates that have been enacted. The company takes into account the current income tax law and decisions taken by the taxation authorities. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Deferred tax is charged or credited in the profit and loss account, except in the case of items credited or charged to equity or unconsolidated statement of other comprehensive income, in which case it is included in Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to equity or statement of other comprehensive income as the case may be. prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred. 4.13 Revenue recognition 4.17 Dividend distribution Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration received or Final dividend distributions to the Company’s shareholders are recognised as a liability in the unconsolidated receivable on the following basis: 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 - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the dividends are declared by the Board of Directors. customers which coincides with dispatch of goods to customers. 4.18 Operating segments - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. Operating segments are reported in a manner consistent with the internal reporting provided to the chief - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the 53 operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and year in which they arise. assessing performance of the operating segments, has been identified as management that makes strategic HASCOL decisions. The management has determined that the Company has a single reportable segment as the Board - Dividend income is recognized when the Company's right to receive the dividend is established. of Directors views the Company’s operations as one reportable segment.
- Return on deposits and other services income is recognized on accrual basis. 4.19 Earning per share
- Handling, storage and other services income are recognized when the services have been rendered. Annual Report - 2015 The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted - Rental income is recognized on an accrual basis. average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares 4.14 Trade and other payables outstanding for the e ects of all dilutive potential ordinary shares.
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 not billed to the Company.
HASCOL Annual Report - 2015 54
5 PROPERTY, PLANT AND EQUIPMENT 2015 2014 Note Rupees in '000 Operating fixed assets 5.1 4,220,584 1,732,642 Capital work-in-progress 5.5 2,057,344 1,558,142 6,277,928 3,290,784
5.1 Operating fixed assets Owned assets Leased assets
Building on lease Electrical, Furniture, Electrical, Building Total hold land Tanks Plant mechanical o ce Tanks Plant mechanical Dispensing equipment Computer on Dispensing operating and and and fire Vehicles and and and fire Vehicles *O ce Pump Pumps and auxiliaries leasehold Pumps fixed pipelines machinery fighting other pipelines machinery fighting building building land assets equipment assets equipment
Rupees in '000 At January 1, 2015 Cost / revalued amount 338,643 358,558 193,621 98,481 25,095 105,298 65,997 14,474 28,908 209,477 154,281 311,550 115,379 22,065 23,969 2,065,796 Accumulated depreciation (35,481) (38,044) (9,984) (15,059) (1,569) (8,977) (42,789) (9,685) (16,074) (40,247) (22,064) (55,451) (15,512) (2,998) (19,220) (333,154) Net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642 Year ended December 31, 2015 Opening net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642 Addition/ transfer from CWIP 491,890 142,853 299,643 51,119 15,436 222,932 7,323 - 5,555 - - - - 10,247 - 1,246,998 Revaluation 139,396 519,206 86,043 154,171 11,780 97,905 - - - 68,396 54,315 288,526 52,623 7,280 - 1,479,641 Disposals Cost ------(4,026) ------(4,026) Accumulated depreciation ------4,026 ------4,026 ------Depreciation charge (34,831) (38,099) (20,129) (12,066) (1,875) (28,339) (8,095) (1,119) (8,286) (14,793) (11,702) (45,297) (8,806) (3,466) (1,794) (238,697) Closing net book value 899,617 944,474 549,194 276,646 48,867 388,819 22,436 3,670 10,103 222,833 174,830 499,328 143,684 33,128 2,955 4,220,584
At December 31, 2015 Cost / revalued amount 969,929 1,020,617 579,307 303,771 52,311 426,135 73,320 14,474 34,463 277,873 208,596 600,076 168,002 39,592 23,969 4,792,435 Accumulated depreciation (70,312) (76,143) (30,113) (27,125) (3,444) (37,316) (50,884) (10,804) (24,360) (55,040) (33,766) (100,748) (24,318) (6,464) (21,014) (571,851) Net book value 899,617 944,474 549,194 276,646 48,867 388,819 22,436 3,670 10,103 222,833 174,830 499,328 143,684 33,128 2,955 4,220,584 Depreciation rate - % 5 5 5 6.67 5 10 20 20 33.33 5 5 6.67 5 10 20
AtJanuary 1, 2014 Cost / revalued amount 68,563 329,070 32,600 70,911 18,996 5,073 51,860 15,811 22,939 209,477 154,281 295,920 110,871 3,961 31,268 1,421,601 Accumulated depreciation (21,178) (20,584) (1,996) (9,223) (726) (425) (35,324) (10,673) (9,317) (28,022) (12,438) (28,463) (8,629) (792) (27,256) (215,046) Net book value 47,385 308,486 30,604 61,688 18,270 4,648 16,536 5,138 13,622 181,455 141,843 267,457 102,242 3,169 4,012 1,206,555 Yearended December 31, 2014 Opening net book value 47,385 308,486 30,604 61,688 18,270 4,648 16,536 5,138 13,622 181,455 141,843 267,457 102,242 3,169 4,012 1,206,555 Addition/ transfer from CWIP 270,080 29,488 161,021 27,570 11,608 105,988 14,137 1,031 5,969 - - 15,630 4,508 18,104 7,343 672,477
Disposals/ transfers Cost - - - - (5,509) (5,763) - (2,368) ------(14,642) (28,282) Accumulated depreciation ------2,368 ------12,200 14,568 - - - - (5,509) (5,763) ------(2,442) (13,714) Depreciation charge for the year (14,303) (17,460) (7,988) (5,836) (843) (8,552) (7,465) (1,380) (6,757) (12,225) (9,626) (26,988) (6,883) (2,206) (4,164) (132,676) Closing net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642
AtDecember 31, 2014 Cost 338,643 358,558 193,621 98,481 25,095 105,298 65,997 14,474 28,908 209,477 154,281 311,550 115,379 22,065 23,969 2,065,796 Accumulated depreciation (35,481) (38,044) (9,984) (15,059) (1,569) (8,977) (42,789) (9,685) (16,074) (40,247) (22,064) (55,451) (15,512) (2,998) (19,220) (333,154) Net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642
Depreciation rate - % 5 5 5 6.67 5 10 20 20 33.33 5 5 6.67 5 10 20
* Running finance facility from Summit Bank Limited is secured on o ce building for the value of Rs. 500 million (2014: Rs. 400 million.) 5.2 Had there been no revaluation, the written down value of the following assets in the balance sheet would have been as follows: Written down value Cost Accumulated depreciation 2015 2014 Rupees in '000 Owned Assets Building on lease hold land 880,921 109,585 771,336 180,639 Dispensing units 61,613 7,055 54,558 7,549 Plant and machinery 19,767 3,369 16,398 2,939 Tanks and pipelines 312,423 18,777 293,646 9,624 Electrical mechanical and fire fighting euipment 224,202 22,859 201,343 831
Leased Assets Building on lease hold land 166,399 66,691 99,708 108,028 Dispensing units 137,419 69,068 68,351 77,517 Plant and machinery 66,850 25,951 40,899 44,242 Tanks and pipelines 90,260 38,985 51,275 55,788 Electrical mechanical and fire fighting equipment 14,351 3,764 10,587 1,775 1,974,205 366,104 1,608,101 488,932
5.3 The depreciation charged for the year has been allocated as follows: 2015 2014 Note Rupees in '000 Distribution expenses 30 226,599 120,166 Administrative expenses 31 12,098 12,510 238,697 132,676
5.4 During the year written down value of property, plant and equipment that have been disposed-o amount to Rs. nil (2014: Rs. 1.37 million).
5.5 Capital work in progress 2015 2014 Note Rupees in '000
O ce building 815,572 559,278 Petrol pump buildings 348,220 142,467 Plant and machinery 40,561 3,942 Tanks and pipe lines 261,069 302,354 55 Dispensing pumps 143,903 85,649
HASCOL Computer auxiliaries 7,740 1,819 Electrical, mechanical and fire fighting equipment 117,658 243,144 Furniture, o ce equipment and other assets 187,141 98,852 Borrowing cost capitalized 34,000 35,717 Advances to contractors 101,480 84,920 2,057,344 1,558,142 Annual Report - 2015 5.5.1 During the year additions amounting to Rs. 1,746.20 million (2014: 1,000.78 million) has been made in capital work in progress. This also includes borrowing cost capitalized during the year at the rate ranging from 9.58% - 13.18% (2014: 12.64% - 13.18%). 6 INTANGIBLE 2015 2014 Note Rupees in '000 Net book value
Net book value at beginning of the year 4,288 7,054 Amortisation charge for the year 31 (2,766) (2,766) Net book value at the end of the year 6.1 1,522 4,288
6.1 Net book value
Cost 8,299 8,299 Accumulated amortization (6,777) (4,011) Net book value 1,522 4,288 Rate of amortization - % 33.33 33.33
7 LONG-TERM INVESTMENTS
- Subsidiary - at cost 7.1 - - - Pakistan Refinery Limited 7.2 &7.3 1,955,310 781,542 1,955,310 781,542
Carrying value Cost Provision for impairment 2015 2014 Note Rupees in '000 7.1 Unquoted subsidiary company - at cost
Hascombe Lubricants (Private) Limited 7.1.1 30,604 (30,604) - -
Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the Company, incorporated in Pakistan under the Companies Ordinance, 1984. The Company holds 9.78 million ordinary shares (2014: 9.78 million) of Rs. 10 per share.
7.1.1 Movement in provision for impairment in long-term investment 2015 2014 Rupees in '000
Balance at beginning of the year 30,604 30,604 Provision made during the year - - 56
Balance at end of the year 30,604 30,604 HASCOL
7.2 Movement Carrying Cost Unrealised gain / (loss) value Annual Report - 2015 Rupees in '000
December 31, 2015 1,172,772 782,538 1,955,310
December 31, 2014 788,332 (6,790) 781,542 7.3 Investment in Pakistan Refinery Limited (quoted) amounts to Rs. 1,172.77 million (2014: Rs. 788.33 million) representing 13.72% (2014: 13.72%) shares in PRL as at December 31, 2015. During the year Company subscribed to 38.44 million right shares at Rs 10 each. The Company has 43.24 million shares (2014: 4.80 million shares) as at December 31, 2015.
8 LONG-TERM DEPOSITS 2015 2014 Note Rupees in '000
Lease deposits 52,819 18,780 Less: current portion of lease deposits 13 - (8,004) 52,819 10,776 Other deposits 8.1 175,812 45,713 228,631 56,489
8.1 Other deposits include amount of Rs. 39.72 million (2014: nil) and Rs. 8.20 million (2014: Rs. 8.20 million) with Motorway Operations & Rehabilitation Engineering Private Limited (MORE) for 10 petrol stations at Motorway and PAF Base Faisal for Hascol One petrol station, respectively, the Company's owned and operated sites.
9 DEFERRED TAXATION 2015 2014 Rupees in '000 This comprises the following:
Taxable temporary di erence arising in respect of : Accelerated depreciation (877,105) (251,938) Assets under finance lease (55,612) (169,948) Exchange gain (3,379) (6,570) Surplus on remeasurement on investment (97,817) 850
Deductible temporary di erence arising in respect of : Liabilities against assets subject to finance lease 132,751 24,080 Provision for: - retirement benefit 31,001 22,443 - doubtful debts 2,463 2,518 Investments in subsidiary 9,547 9,666 Carry forward tax losses - 60,675 Turnover tax 1,098,247 817,299 240,096 509,075
Deferred tax asset has been recognized based on the projections prepared by the management indicating reasonable probabilities that taxable profits will be available in the foreseeable future against which deferred 57 tax asset will be utilized.
HASCOL 9.1 Movement in deferred tax 2015 2014 Note Rupees in '000
Opening deferred tax 509,075 327,508
Annual Report - 2015 Deferred tax raised through profit and loss 35 287,302 177,855 Deferred tax raised through other comprehensive income (94,305) 3,712 Deferred tax raised through revaluation surplus (461,976) - Closing deferred tax 240,096 509,075
10 STOCK-IN-TRADE 2015 2014 Note Rupees in '000
Raw and packing materials 63,757 76,986 Finished goods - fuels 10.1 & 10.3 5,836,553 2,975,439 - lubricants 240,713 179,475 6,077,266 3,154,914 Stock of fuel in transit 10.3 2,328,995 241,804 8,470,018 3,473,704
10.1 Finished goods fuels include Rs. 239.88 million (2014: 104.23 million) of High Speed Diesel which has been maintained as line fill necessary for the pipeline to operate.
10.2 Stock in finished goods include High Speed Diesel amounting to Rs. nil (2014: Rs. 152.00 million) pledged as security with Sindh Bank Limited in respect of cash finance facility.
10.3 Stock-in-trade includes item costing Rs. 4,156.71 million (2014: Rs. 3,470.52 million) which have been valued at net realisable value amounting to Rs. 4,028.50 million (2014: 3,217.24 million) as a result of decline in selling prices of certain petroleum products with e ect from January 1, 2016.
11 TRADE DEBTS - Unsecured 2015 2014 Note Rupees in '000 Due from related party - Considered good - 157 - Considered doubtful 11.1 7,124 7,124 7,124 7,281 Due from others - Considered good 4,263,595 4,548,666 - Considered doubtful 849 849 4,264,444 4,549,515 4,271,568 4,556,796 Less: Provision for impairment 11.3 (7,973) (7,973) 4,263,595 4,548,823
11.1 The aging of above associated party balance at the balance sheet date is as follows:
Past due 1-30 days - 157 More than 365 days 7,124 7,124
11.2 This includes receivable from Hascombe Lubricants (Private) Limited (subsidiary company) amounting to Rs. 58 7.12 million (2014: Rs. 7.12 million). 2015 2014 HASCOL Rupees in '000 11.3 Movement of provision for impairment Opening balance 7,973 7,973 Provision made during the year - - Closing balance 7,973 7,973 Annual Report - 2015
12 ADVANCES - Considered good
Employees - against expenses 70,138 7,189 - against salary 15,006 14,828 Import - 4,342 Leasing companies 2,606 - Suppliers 62,856 140,207 150,606 166,566 13 DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES 2015 2014 Note Rupees in '000 Current portion of lease deposits 8 - 8,004 Prepaid rent 45,779 89,051 Prepaid insurance and others 36,147 18,565 Receivable from oil marketing companies 13.1 38,470 437,596 Receivable against regulatory duty 25,533 - Inland Freight Equalization Margin (IFEM) receivable 667,776 373,335 Franchise income receivable 81,946 65,503 Price Di erential Claims 13.2 5,083 5,083 Others 13.3 59,095 27,817 959,829 1,024,954
13.1 It represents amount receivable from various oil marketing companies (OMCs) on account of share of motor gasoline imported on their behalf.
13.2 This represents amount receivable from the Government of Pakistan (GoP) net of recovery as per fortnightly rates declared by the Ministry of Petroleum and Natural Resources (MPNR). The Company together with other oil marketing companies is actively pursuing the matter with the concerned authorities for the early settlement of above claim. The Company considers that the balance amount will be reimbursed by GoP in due course of time.
13.3 This includes Rs. 24.64 million (2014: Rs. 18.21 million) receivable from Sigma Motors (Private) Limited (an associated company).
14 CASH AND BANK BALANCES
2015 2014 Note Rupees in '000 Balances with banks: - in current account 14.1 382,458 146,742 - in deposit account 14.2 3,684,616 1,613,347 4,067,074 1,760,089 Cash in hand 4,473 844 4,071,547 1,760,933
14.1 This includes an amount of Rs. nil (2014: Rs 8.27 million) maintained with KASB Bank Limited which was held under restrictions imposed by the State Bank of Pakistan for six months, the restriction period expired during the current year.
59 14.2 These carry mark-up ranging from 5.5% to 6.5% per annum (2014: 6% to 8.5% per annum). HASCOL Annual Report - 2015 15 SHARE CAPITAL
15.1 AUTHORIZED SHARE CAPITAL
2015 2014 2015 2014 Number of shares Rupees in '000 150,000,000 150,000,000 1,500,000 1,500,000
15.2 ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL
2015 2014 2015 2014 Number of shares Note Rupees in '000 64,540,000 64,540,000 Ordinary shares of Rs. 10 each fully paid in cash 645,400 645,400
1,060,000 1,060,000 Ordinary shares of Rs. 10 each for consideration other than cash 15.3 10,600 10,600
25,000,000 25,000,000 Ordinary shares of Rs. 10 each fully paid in cash 250,000 250,000
9,966,000 - Annual bonus @ 11% Dec 2014 99,660 -
20,113,200 - Interim bonus @ 20% June 2015 201,132 -
120,679,200 90,600,000 1,206,792 906,000
15.3 These were issued on December 8, 2004 for consultancy, feasibility study, travel and other expenses.
16 RESERVES 2015 2014 Rupees in '000 Capital reserves Share premium reserve 1,070,828 1,070,828 Fair value reserve 684,721 (5,941) 1,755,549 1,064,887 Revenue reserve Unappropriated profit 1,566,762 807,926 3,322,311 1,872,813
17 SURPLUS ON REVALUATION OF FIXED ASSETS - net of tax
Opening balance 492,209 550,403 60
Gain on revaluation 1,479,641 - HASCOL Transfer in respect of incremental depreciation charged during the year (124,564) (58,194) 1,847,286 492,209 Related deferred tax Opening balance 171,659 192,027 Related deferred tax of gain on revaluation 473,112 - Annual Report - 2015 E ective rate adjustment (14,153) - Reversal of deferred tax liability on account of incremental depreciation charged during the year (39,860) (20,368) (590,757) (171,659)
1,256,529 320,550 17.1 During year ended 2012, the Company carried out revaluation of 160 petrol pumps through an independent valuer Asif Associates (Private) Limited. Revalued amount of assets was Rs. 1,172.00 million, resulting in surplus (net of deferred tax) amount to Rs. 387.00 million. Further, during current year the Company carried out revaluation of depots and petrol pumps through an independent valuer Asif Associates (Private) Limited. Revalued amount of assets is Rs. 4,153.90 million, resulting in surplus (net of deferred tax) amount to Rs. 1,006.52 million.
18 LONG TERM FINANCES - Secured 2015 2014 Note Rupees in '000
PAIR Investment Company Limited 18.1 96,429 139,286 First Women Bank Limited 18.2 - 90,909 Burj Bank Limited 18.3 187,922 297,785 Pak Oman Investment Company Limited 18.4 177,436 39,900 461,787 567,880 Current portion of long term finances PAIR Investment Company Limited 42,857 42,857 First Women Bank Limited - 90,909 Burj Bank Limited 187,922 148,893 Pak Oman Investment Company Limited 54,857 6,650 (285,636) (289,309) 176,151 278,571
18.1 This represents term finance facility from PAIR Investment Company Limited to finance the development of Machike storage facility. The sanctioned limit is Rs. 150 million and is secured against first pari passu charge on all present and future current and fixed assets of the Company with 25% margin, personal guarantee of Mr. Mumtaz Hasan Khan (CEO) as sponsor and post dated cheque covering the purchase price of facility. Mark-up rate is 3 months KIBOR plus a spread of 3%. The loan is repayable in 12 equal quarterly instalments starting from the end of six months from the date of first draw down with last repayment due on January 8, 2018.
18.2 This represents working capital finance from First Women Bank Limited for construction of retail outlet. The sanctioned limit was Rs. 200 million and was secured against specific charge on retail outlets worth Rs. 38 million, charge on Shikarpur installation worth Rs. 184 million and personal guarantee of Mr. Mumtaz Hasan Khan (CEO) as sponsor. Mark-up rate is 6 months KIBOR plus a spread of 3%. The loan was repaid on November 11, 2015.
18.3 This represents working facility of Diminishing Musharika arrangement from Burj Bank Limited to refinance capital expenditure incurred by the Company. The sanction limit is 300 million and is secured against movable fixed assets of the Company with 25% margin and pledge of shares of Pakistan Refinery Limited (PRL) with 40% margin to be maintained at all times. The Loan is repayable by the Company in 4 equal instalments starting from the 12 month of first draw down with the last repayment date of June 30, 2016.
61 18.4 This represents term finance facility obtained from Pak Oman Investment Company Limited to refinance the new storage setup of petroleum products at Daulatpur. The sanction limit is Rs. 192 million and is secured HASCOL against first pari passu charge on Company's land building and machinery located at Daulatpur along with 25% margin and personal guarantee of Mr. Mumtaz Hasan Khan (CEO) as sponsor. It carries mark-up rate of 6 months KIBOR plus a spread rate of 3%. The loan is repayable in 42 equal monthly instalments in arrears, with grace period of 6 months, from first draw down with last repayment due in November 30, 2018.
Annual Report - 2015 19 LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
The Company has entered into various lease agreements with various leasing companies for lease of various items of plant and machinery and other assets. Minimum lease payments, which are payable by the year 2020, have been discounted by using financing rates ranging from 8.43% to 14.03% (2014: 11.25% to 18.5% per annum). Title to the assets acquired under the leasing arrangements are transferable to the Company upon payment of entire lease obligations. The minimum lease payments for which the Company has committed to pay in future under the lease 21.2 Movement in liability recognized in balance sheet agreements are as follows:
2015 2014 Financial Present Financial Present Balance at the beginning of the year 71,057 47,054 Minimum charges value of Minimum charges value of Add: Charge for the year 21.4 20,416 14,942 lease allocated minimum lease allocated minimum Less: Payments to outgoing employees (3,359) - payments to future lease payments to future lease Remeasurements charged to Other Comprehensive Income 10,976 9,061 periods payments periods payments Balance at the end of the year 99,090 71,057 Rupees in '000
Not later than one year 137,086 34,489 102,597 34,337 6,802 27,535 21.3 Movement in present value of the defined benefit obligation Later than one year but not later than five years 365,040 42,110 322,930 56,632 7,928 48,704 Opening balance 71,057 47,054 502,126 76,599 425,527 90,969 14,730 76,239 Current service cost 12,454 8,516 Interest cost 7,962 6,426 20 LONG TERM DEPOSITS Benefit paid during the year (3,359) - 2015 2014 Remeasurement: Actuarial losses - net of tax 7,464 6,199 Note Rupees in '000 Impact of deferred tax 3,512 2,862 Remeasurement: Actuarial losses (gross amount) 10,976 9,061 Opening balance 103,151 90,872 Present value of defined benefit obligation at the end of year 99,090 71,057 Additions during the year 11,800 12,279 114,951 103,151 21.4 Amounts recognized in the profit and loss Imputed income on remeasurement Opening balance (42,364) - Current service cost 12,454 8,516 Additions during the year (9,799) (42,364) Net interest cost 7,962 6,426 (52,163) (42,364) Total gratuity expense for the year for unfunded obligation 20,416 14,942 Unwinding of imputed income Opening - - 21.5 Actuarial assumptions Additions during the year 1,344 - 1,344 - 20.1 64,132 60,787 The following significant assumptions were used in the valuation of these schemes: 20.1 This includes interest free security deposits from dealers in accordance with contract in writing and are repayable on termination or cancellation of dealership. - Expected long-term rate of increase in salary level 9.00% 10.50% - Discount rate 9.00% 10.50% 21 DEFERRED LIABILITY - Gratuity 22 TRADE AND OTHER PAYABLES The Company operates an unfunded gratuity scheme for employees who have completed the employment period of 5 years. Provision is created for the benefit of the scheme on the basis of actuarial recommendations. The actuarial valuations are carried out using the Projected Unit Credit Method. Trade creditors 12,069,319 6,442,108 2015 2014 Payable to cartage contractors 1,938,342 739,439 Note Rupees in '000 62 Advance from customers 2,553,327 269,577 Accrued liabilities 46,018 51,382 HASCOL Deferred liability - Gratuity 21.1 & 21.2 99,090 71,057 Other liabilities 748,590 600,639 17,355,596 8,103,145 The information provided in notes 21.1 to 21.5 have been obtained from the actuarial recommendations. 23 MARK-UP ACCRUED
21.1 Movement in liability recognized in balance sheet Mark-up accrued 54,311 59,877
Annual Report - 2015 2015 2014 23.1 As noted in note 18, 19 & 24, this represents mark-up payable on finances availed by the Company. Note Rupees in '000 Present value of defined benefit obligation as 24 SHORT TERM RUNNING FINANCES - Secured at the end of the year 21.3 99,090 71,057 Fair value of plan assets - -
Balance sheet liability 99,090 71,057 Financial institutions 24.1 1,413,055 821,707 Term finance certificates 24.2 - 450,000 1,413,055 1,271,707 21.2 Movement in liability recognized in balance sheet 2015 2014 Note Rupees in '000 Balance at the beginning of the year 71,057 47,054 Add: Charge for the year 21.4 20,416 14,942 Less: Payments to outgoing employees (3,359) - Remeasurements charged to Other Comprehensive Income 10,976 9,061 Balance at the end of the year 99,090 71,057
21.3 Movement in present value of the defined benefit obligation
Opening balance 71,057 47,054 Current service cost 12,454 8,516 Interest cost 7,962 6,426 20 LONG TERM DEPOSITS Benefit paid during the year (3,359) - Remeasurement: Actuarial losses - net of tax 7,464 6,199 Impact of deferred tax 3,512 2,862 Remeasurement: Actuarial losses (gross amount) 10,976 9,061 Opening balance 103,151 90,872 Present value of defined benefit obligation at the end of year 99,090 71,057 Additions during the year 11,800 12,279 114,951 103,151 21.4 Amounts recognized in the profit and loss Imputed income on remeasurement Opening balance (42,364) - Current service cost 12,454 8,516 Additions during the year (9,799) (42,364) Net interest cost 7,962 6,426 (52,163) (42,364) Total gratuity expense for the year for unfunded obligation 20,416 14,942 Unwinding of imputed income Opening - - 21.5 Actuarial assumptions Additions during the year 1,344 - 2015 2014 1,344 - % per annum 20.1 64,132 60,787 The following significant assumptions were used in the valuation of these schemes: 20.1 This includes interest free security deposits from dealers in accordance with contract in writing and are repayable on termination or cancellation of dealership. - Expected long-term rate of increase in salary level 9.00% 10.50% - Discount rate 9.00% 10.50% 21 DEFERRED LIABILITY - Gratuity 22 TRADE AND OTHER PAYABLES The Company operates an unfunded gratuity scheme for employees who have completed the employment 2014 period of 5 years. Provision is created for the benefit of the scheme on the basis of actuarial recommendations. 2015 Rupees in '000 The actuarial valuations are carried out using the Projected Unit Credit Method. Trade creditors 12,069,319 6,442,108 Payable to cartage contractors 1,938,342 739,439 63 Advance from customers 2,553,327 269,577
HASCOL Accrued liabilities 46,018 51,382 Deferred liability - Gratuity 21.1 & 21.2 99,090 71,057 Other liabilities 748,590 600,639 17,355,596 8,103,145 The information provided in notes 21.1 to 21.5 have been obtained from the actuarial recommendations. 23 MARK-UP ACCRUED
21.1 Movement in liability recognized in balance sheet Mark-up accrued 54,311 59,877 Annual Report - 2015 23.1 As noted in note 18, 19 & 24, this represents mark-up payable on finances availed by the Company.
Present value of defined benefit obligation as 24 SHORT TERM RUNNING FINANCES - Secured at the end of the year 21.3 99,090 71,057 2015 2014 Fair value of plan assets - - Note Rupees in '000
Balance sheet liability 99,090 71,057 Financial institutions 24.1 1,413,055 821,707 Term finance certificates 24.2 - 450,000 1,413,055 1,271,707 24.1 Short term running finance facilities are available from various commercial banks and development financial institutions (DFI), under mark-up arrangements, amounting to Rs. 1,413.05 million (2014: Rs. 821.71 million), which represents the aggregate of sale prices of all mark-up agreements between the Company and the bank and DFI. These facilities have various maturity dates up to November 2016. These arrangements are secured against pledge of stock with minimum 20% margin, hypothecation charge over Company's present and future current assets with minimum 25% margin, pledge of PRL share, with minimum 30% margin and personal guarantee of Mr. Mumtaz Hasan Khan (CEO) as sponsor along with equitable registered mortgage charge over the property situated at The Forum, Suite No. 105 - 106, First Floor, Khayaban-e-Jami Clifton, Karachi (2014: stock with minimum 20% margin, hypothecation charge over Company's present and future current assets with minimum 25% margin, pledge of PRL share, with minimum 30% margin and personal guarantee of Mr. Mumtaz Hasan Khan (CEO) as sponsor along with equitable registered mortgage charge over the property situated at The Forum, Suite No. 105 - 106, First Floor, Khayaban-e-Jami Clifton, Karachi).
These running finance facilities carry mark-up ranging from 1 year KIBOR plus 2.75% to 1 month KIBOR plus 3% per annum (2014: 1 month KIBOR plus 2.75% to 3 month KIBOR plus 3.5% per annum) calculated on a daily product basis, that is payable monthly/quarterly. The aggregate amount of these facilities which have not been availed as at the balance sheet date amounts to Rs. 200.00 million (2014: Rs. 228.00 million).
24.2 This represents privately placed term finance certificate of Rs. nil (2014: Rs. 450.00 million). The facility carries mark-up at the rate of 6 month KIBOR plus spread of 3% per annum payable at the end of every quarter. The loan was secured against ranking charge on present and future current assets of the Company with 25% margin.
25 TAXATION 2015 2014 Note Rupees in '000
Sales tax payable 92,988 1,591,492 Income tax payable 25.1 866,964 715,611 959,952 2,307,103
25.1 The Company has filed a constitutional petition in the Honourable High Court of Sindh against the chargeability of minimum tax and the Honourable Court has granted stay in this regard. The Management and its legal counsel is confident that eventual outcome of the matter will be in favour of the Company.
26 CONTINGENCIES AND COMMITMENTS
Contingencies
As per the deliberations of the main committee of the Oil Companies Advisory Committee (OCAC) held in their meeting number MCM-168 dated September 20, 2007, the financial costs on outstanding Price Di erential Claims (PDCs) should be worked and billed to the Government of Pakistan (GoP) through OCAC by the Oil Marketing Companies (OMCs) on a regular basis. Although the Company had billed Rs. 65.97 million to the GOP/ OCAC, the management had not accounted for its impact in these unconsolidated financial statements 64 as the inflow of economic benefits, though probable, is not virtually certain. HASCOL During the subsequent period, the Deputy Commissioner of Inland Revenue (DCIR) vide order dated February 16, 2016 imposed a sales tax liability amounting to Rs. 361.20 million as the Company supplied High Speed Diesel and Furnace Oil products to the various international ships and claimed zero rated export amounting to Rs. 2,142.70 million. The Company has contested the imposition on the ground that products are part of
provision and stores under section 24 of the Customs Act, 1969 and are treated as zero rated goods under Annual Report - 2015 section 4 of Sales Tax Act, 1990. The Management and the tax advisors are confident that good grounds exist to contest the case and believe that eventual outcome will be in favour of the Company. Hence no provision is required to be made in these financial statements. The case is pending for hearing before the Commissioner Inland Revenue (Appeals).
Commitments
The facility for opening letters of credit (LCs) acceptances as at December 31, 2015 amounted to Rs. 17,100.00 million (2014: Rs. 9,322.00 million) of which the amount remaining unutilized as at that date was Rs. 1,796.80 million (2014: Rs. 2,243.00 million). Commitments in respect of capital expenditure contracted for but not yet incurred are as follows: 2015 2014 Rupees in '000 Property, plant and equipment 427,701 346,760
Commitments for rental under operating lease agreements / ijarah contracts as at December 31, 2015 amounted to Rs. 1,9450.00 million (2014: Rs. 1,236.00 million) as follows: 2015 2014 Rupees in '000
Not later than one year 136,245 91,060 Later than one year but not later than five years 538,869 346,442 Later than five years 1,269,461 798,729 1,944,575 1,236,231
27 SALES - net
Sales 94,274,786 99,238,100 Less: Sales discount (209,489) (176,604) 94,065,297 99,061,496
28 OTHER REVENUE
Joining fee for petrol pump operators 9,600 10,130 Franchise fee 73,231 47,228 82,831 57,358
29 COST OF PRODUCTS SOLD 2015 2014 Note Rupees in '000
Opening stock of lubricants, raw and packing materials 256,461 258,447 Raw and packing materials purchased 784,019 821,160 Less: Closing stock of lubricants, raw and packing materials 10 (304,470) (256,461) Lubricants, raw and packing materials consumed 736,010 823,146
Opening stock - fuel 3,217,243 2,895,276 Fuel purchased 63,370,263 72,492,296 Storage and handling charges 328,558 361,273 Duties and levies 29.1 14,403,074 9,268,984 Less: Closing stock - fuel 10 (8,165,548) (3,217,243) 65 Inventory - write o 128,215 253,285 73,281,805 82,053,871 HASCOL 74,017,815 82,877,017
29.1 Duties and levies
Inland Freight Equalization Margin (IFEM) 2,399,895 1,574,144
Annual Report - 2015 Petroleum Development Levy 9,185,877 5,366,329 Freight 2,817,302 2,328,511 14,403,074 9,268,984
30 DISTRIBUTION AND MARKETING EXPENSES 2015 2014 Note Rupees in '000 Salaries, wages and other benefits 31.1 258,579 161,171 Traveling and conveyance 52,608 69,722 Rent, rates and taxes 174,723 126,726 Insurance 75,026 40,798 Depreciation 5.3 226,599 120,166 Entertainment 5,790 5,613 Printing and stationery 11,826 3,808 Communication 5,406 3,154 Repairs and maintenance 22,405 11,224 Utilities 27,718 11,366 Fees and subscription 4,847 2,850 Legal and professional charges 1,111 1,000 Commission 111,767 191,639 Royalty 43,603 - Advertising and publicity 30,756 16,269 Miscellaneous 710 3,308 1,053,474 768,814
31 ADMINISTRATIVE EXPENSES 2015 2014 Note Rupees in '000
Salaries, allowances and other benefits 31.1 149,545 143,442 Traveling and conveyance 35,072 25,182 Rent, rates and taxes 7,467 6,842 Insurance 20,093 19,097 Depreciation 5.3 12,098 12,510 Amortisation 6 2,766 2,766 Entertainment 3,860 3,592 Printing and stationery 7,884 5,250 Communication 3,604 8,212 Repairs and maintenance 11,176 7,119 Utilities 8,335 7,453 Fee and subscription 21,020 15,116 Advertising and publicity 18,582 6,575 Auditors' remuneration 31.2 2,545 2,219 Donation 31.3 6,345 6,004 Legal and professional charges 49,204 48,204 Ujrah payments 6,642 9,804 66 366,238 329,387 HASCOL
31.1 Salaries and other benefits relating to distribution and administrative expense include:
- Gratuity 21.4 20,416 14,942 - Contribution to provident fund 10,713 7,969 Annual Report - 2015 31.2 Auditors’ remuneration
Statutory audit 1,100 1,000 Half yearly review 366 275 Certifications 673 500 Consolidation 200 150 Out of pocket expenses 206 294 2,545 2,219 31.3 Donation include an amount of Rs. 0.15 million (2014: Rs. 1.00 million) paid to Layton Rahmatulla Benevolent Trust (LRBT), Mr. Najmus Saquib Hameed (Director) is also CEO of LRBT.
32 OTHER INCOME 2015 2014 Note Rupees in '000
Income from financial assets Profit on bank deposits 139,662 70,486 Gain on sale of investment - 7,874 139,662 78,360 Income from non-financial assets Promotional marketing fee 1,006 1,270 Scrap sales 569 3,891 Gain on disposal of operating fixed assets 2,272 3,969 Reversal of royalty - 62,963 Rent income 6,431 5,846 Storage and handling income 50,802 100,028 Imputed income on remeasurement 9,799 42,364 70,879 220,331 210,541 298,691
33 FINANCE COST
Mark-up on borrowings 166,041 104,985 LC charges 148,243 123,309 Lease finance charges 23,720 16,787 Bank charges 11,648 19,005 349,652 264,086
34 OTHER CHARGES
Workers' welfare fund 24,420 17,295 Exchange loss - net 58,989 91,161 83,409 108,456
35 TAXATION
Current 330,862 402,541 Prior 19,924 - Deferred 9.1 (287,302) (177,855) 63,484 224,686
67 35.1 Relationship between tax expense and accounting profit
HASCOL The relationship between tax expense and accounting profit has not been presented in these financial statements as the total income falls under minimum/ presumptive tax regime of the Income Tax Ordinance, 2001.
36 EARNINGS PER SHARE - Basic and diluted Annual Report - 2015 2015 2014 Rupees in '000 Profit for the year 1,133,237 640,057
Weighted average number of ordinary shares in thousand (2014: Restated) 120,679 108,728
Basic earning per share - Rupees (2014: Restated) 9.39 5.89 There is no dilutive e ect on basic earning per share as the Company has no potential ordinary shares outstanding at year end consequently diluted EPS equals basic EPS.
37 REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
2015 2014 Chief Chief Directors Executives Directors Executives Executive Executive Rupees in '000 Director's fee - 2,975 - - 1,830 - Managerial remuneration 19,080 30,751 151,722 16,375 20,686 114,205 Cost of living allowance 3,603 3,913 33,950 3,179 2,776 27,230 Reimbursement of medical expenses 2,322 778 12,450 1,398 371 7,026 Bonus - - - 8,148 18,101 16,643 Retirement benefits 1,087 1,616 8,010 911 1,056 4,888 26,092 40,033 206,132 30,011 44,820 169,992
Number of persons 1 6 126 1 6 112
37.1 The Chief Executive O cer and certain executives, as explained in note no. 37, are also provided with the free use of Company maintained cars and cellular connections. In addition, the Chief Executive O cer and a Director are provided with free security services in accordance with the terms of employment.
38 RELATED PARTY TRANSACTIONS AND BALANCES
Amount due to/ from and other significant transactions with related parties, other than those disclosed elsewhere in these financial statements, are as follows:
Nature of relationship Nature of transaction 2015 2014 Rupees in '000 Associated companies
Sigma Motors (Private) Limited Sale of fuels 1,693 8,098 O ce rent 6,432 5,846 Marshal Gas (Private) Limited Purchase of fuels - 6,657 Sta retirement benefits/ contribution funds Provident fund Contribution 10,713 7,969 Gratuity fund Contribution 20,416 14,942
Key management personnel Salaries and benefits 63,150 184,450 68
Director Fee Fee for attending meeting 2,975 - HASCOL
Other related parties Consultancy services 10,180 33,986 Expense reimbursement - 365 Balances
Associated companies Annual Report - 2015
Sigma Motors (Private) Limited Trade debtors - 134 Other receivable 24,643 18,211 Marshal Gas (Private) Limited Trade creditors - 94
Expenses recovered from/ charged by related parties are based on actual expense.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly. The Company considers its Executive Director and Executives to be key management personnel. 39 CASH GENERATED FROM OPERATIONS 2015 2014 Note Rupees in '000
Profit before taxation 1,196,721 864,743
Adjustment for: Depreciation and amortization 30 & 31 241,463 135,442 Provision for gratuity 21.4 20,416 14,942 Profit on bank deposits 32 (139,662) (70,486) Imputed income on remeasurement 32 (9,799) (42,364) Gain on sale of investment 32 - (7,874) Gain on disposal of operating fixed assets 32 (2,272) (3,969) Finance cost 33 349,652 264,086 Cash in bank account restricted during the year 14.1 - (8,276) Changes in working capital 39.1 3,123,946 (235,808) 4,780,465 910,436 39.1 Changes in working capital
Decrease/ (Increase) in current assets
Stock-in-trade (4,996,314) (319,981) Trade debts 285,228 (2,432,705) Advances 15,960 119,097 Deposits, prepayments and other receivables 65,125 (888,561) (4,630,001) (3,522,150) Increase in current liabilities
Trade and other payables 7,753,947 3,286,342 Changes in working capital 3,123,946 (235,808)
40 CASH AND CASH EQUIVALENTS
Cash and bank balance 14 4,071,547 1,760,933 Short-term running finances - secured 24 (1,413,055) (1,271,707) Restricted cash 14.1 - (8,276) 2,658,492 480,950
41 OPERATING SEGMENTS
- These financial statements have been prepared on the basis of a single reportable segment.
69 - Sales from petroleum product represent 99.92 % (2014: 99.92%) of total revenue of the Company.
HASCOL - Out of total sales of the Company, 100 % (2014: 100 %) related to customers in Pakistan.
- All non-current assets of the Company as at December 31, 2015 are located in Pakistan.
- The Company sells its product to dealers, governments agencies and autonomous bodies, independent
Annual Report - 2015 power project and other corporate customers. However, none of the customers exceeds 10% threshold.
42 FINANCIAL INSTRUMENTS BY CATEGORY 2015 2014 Financial assets Rupees in '000
Available for sale Long-term investments 1,955,310 781,542
At amortised cost Long-term deposits 228,631 64,493 Trade debts 4,263,595 4,548,823 Advances 15,006 14,828 Other receivables 852,370 881,517 Cash and bank balance 4,071,547 1,760,933 9,431,149 7,270,594 11,386,459 8,052,136 Financial liabilities
At amortised cost Long-term finances - secured 461,787 567,880 Liabilities against assets subject to finance lease 425,527 76,239 Long-term deposits 64,132 60,787 Trade and other payables 14,007,661 7,181,547 Mark-up accrued 54,311 59,877 Short-term running finances - secured 1,413,055 1,271,707 16,426,473 9,218,037
42.1 Fair values of financial instruments
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in arms length transaction.
a) Fair values versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows:
December 31 2015 December 31 2014 Carrying Fair Carrying Fair amount Value amount Value Rupees in '000 Financial Assets
Long term investments 1,955,310 1,955,310 781,542 781,542 70
Long term deposits 228,631 228,631 64,493 64,493 HASCOL Trade debts 4,263,595 4,263,595 4,548,823 4,548,823 Advances 15,006 15,006 14,828 14,828 Other receivables 852,370 852,370 881,517 881,517 Cash and bank balances 4,071,547 4,071,547 1,760,933 1,760,933 11,386,459 11,386,459 8,052,136 8,052,136 Annual Report - 2015 December 31, 2015 December 31, 2014 Carrying Fair Carrying Fair amount Value amount Value Rupees in '000 Financial Liability
Long-term finances - secured 461,787 461,787 567,880 567,880 Liabilities against assets subject to finance lease 425,527 425,527 76,239 76,239 Long-term deposits 64,132 64,132 60,787 60,787 Mark-up accrued 54,311 54,311 59,877 59,877 Trade and other payables 14,007,661 14,007,661 7,181,547 7,181,547 Short-term running finances - secured 1,413,055 1,413,055 1,271,707 1,271,707 16,426,473 16,426,473 9,218,037 9,218,037 b) Valuation of financial instruments
In case of equity instruments, the Company measures fair value using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
Level 1: Quoted market price (unadjusted) in an active market. Level 2: Valuation techniques based on observable inputs. Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data.
Fair values of financial assets that are traded in active markets are based on quoted market prices. For all other financial instruments the Company determines fair values using valuation techniques unless the instruments do not have a market/ quoted price in an active market and whose fair value cannot be reliably measured.
Valuation techniques used by the Company include discounted cash flow model. Assumptions and inputs used in valuation techniques includes risk-free rates, bond and equity prices, foreign currency exchange rates, equity and equity index prices. The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the balance sheet date that would have been determined by market participants acting at arm’s length.
Valuation models for valuing securities for which there is no active market requires significant unobservable inputs and a higher degree of management judgement and estimation in the determination of fair value. Management judgement and estimation are usually required for selection of the appropriate valuation model to be used, determination of expected future cash flows on the financial instrument being valued and selection of appropriate discount rates, etc.
The table below analyses equity instruments measured at fair value at the end of the reporting period by the level in the fair value hierarchy into which the fair value measurement is categorised: 71 HASCOL December 31, 2015 Level 1 Level 2 Level 3 Total Rupees in '000 Available-for-sale financial assets
Annual Report - 2015 Equity securities 19,55,310 - - 1,955,310
December 31, 2014 Level 1 Level 2 Level 3 Total Rupees in '000 Available-for-sale financial assets
Equity securities 781,542 - - 781,542 43 FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
43.1 Financial risk management
The Board of Directors (the Board) has overall responsibility for the establishment and oversight of the Company's risk management framework. The Board is responsible for developing and monitoring the Company's risk management policies.
The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company's activities. The Company through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Board oversee how management monitors compliance with the Company's risk management policies and procedures, and review the adequacy of risk management framework in relation to the risks faced by the Company.
The Company has exposure to the following risks from its use of financial instruments:
- Market risk ( Note 43.1.1) - Credit risk and concentration of credit risk (43.1.2) - Liquidity risk (43.1.3)
43.1.1 Market risk
The Company is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and certain other price risks, which result from both its operating and investing activities. The objective of market risk management is to manage and control market risk exposures within an acceptable range. The market risk includes:
(a) Currency risk
Currency risk is the risk that the value of financial asset or a liability will fluctuate due to a change in foreign exchange rates. It arises mainly where receivables and payables exist due to transactions entered into foreign currencies. The Company imports petroleum product and is thus exposed to currency risk in respect to foreign creditors, which at the year end amount to USD 50.37 million (2014: USD 35.58 million) having PKR equivalent amount of Rs. 5,287.17 million (2014: Rs. 3,586.96 million). The average rates applied during the year is Rs. 102.69 per USD (2014: Rs. 101.02 per USD) and the spot rate as at December 31, 2015 is Rs. 104.95 per USD (2014: Rs. 100.80 per USD). 72 The Company manages its currency risk by close monitoring of currency markets. Under regulatory
requirements, the Company cannot hedge its currency risk exposure. Consequently, the Company incurred HASCOL exchange loss amounting to Rs. 58.90 million (2014: Rs. 91.10 million) during the year.
Sensitivity analysis
As at December 31, 2015, if the Pakistani Rupees had weakened/strengthened by 10% against USD with all Annual Report - 2015 other variables held constant, profit for the year would have been lower/higher by Rs. 529.80 million (2014: Rs. 358.00 million).
(b) Interest rate risk
Interest rate risk is the risk that the fair value of the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Interest rate exposure arises due to long-term finances, liabilities against assets subject to finance lease and short term running finances. At the balance sheet date the interest rate profile of the Company's mark-up bearing financial instruments is summarized as follows:
Cash flow sensitivity for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/ (decreased) profit or loss before tax as shown below. This analysis assumes that all other variables, in particular foreign currency rates remain constant.
Cash flow sensitivity of variable rate instruments
Profit and loss Equity 100 bp 100 bp 100 bp 100 bp increase decrease increase decrease (Expense) / income Rupees in '000
As at December 31, 2015 (22,376) 22,376 (14,992) 14,992
As at December 31, 2014 (15,749) 15,749 (10,552) 10,552
E ective Exposed to yield/interest risk Non-interest bearing yield/ Maturity Maturity Sub- Total Maturity Maturity Sub- Total 2015 interest upto one after one upto one after one Total rate % year year year year Rupees in '000 Financial assets Long-term investments - - - - 1,955,310 1,955,310 1,955,310 Long-term deposits - - - - 228,631 228,631 228,631 Trade debts - - - 4,263,595 - 4,263,595 4,263,595 Advances - - - 15,006 - 15,006 15,006 Other receivables - - - 852,370 - 852,370 852,370 Cash and bank balances 5.5-6.5 p.a. 3,684,616 - 3,684,616 386,931 - 386,931 4,071,547 (a) 3,684,616 - 3,684,616 5,517,902 2,183,941 7,701,843 11,386,459
Financial liabilities Liabilities against assets subject to finance lease 8.43-13.26 p.a. 102,597 322,930 425,527 - - - 425,527 Long term finances - secured 9.41-13.19 p.a. 285,636 176,151 461,787 - - - 461,787 Long-term deposits - - - - 64,132 64,132 64,132 Trade and other payables - - - 14,007,661 - 14,007,661 14,007,661 Mark-up accrued - - - 54,311 - 54,311 54,311 Short-term running finances - secured 9.51-11.02 p.a. 1,413,055 - 1,413,055 - - - 1,413,055 (b) 1,801,288 499,081 2,300,369 14,061,972 64,132 14,126,104 16,426,473
73 On balance sheet gap (a)-(b) 1,883,328 (499,081) 1,384,247 (8,544,070) 2,119,809 (6,424,261) (5,040,014) HASCOL Annual Report - 2015 E ective Exposed to yield/interest risk Non-interest bearing yield/ Maturity Maturity Sub- Total Maturity Maturity Sub- Total 2014 interest upto one after one upto one after one Total rate % year year year year Rupees in '000 Financial assets
Long-term investments - - - - 781,542 781,542 781,542 Long-term deposits - - - - 64,493 64,493 64,493 Trade debts - - - 4,548,823 - 4,548,823 4,548,823 Advances - - - 14,828 - 14,828 14,828 Other receivables - - - 881,517 - 881,517 881,517 Cash and bank balances 6.0-8.5 p.a. 1,613,347 - 1,613,347 147,586 - 147,586 1,760,933 (a) 1,613,347 - 1,613,347 5,592,754 846,035 6,438,789 8,052,136
Financial liabilities
Liabilities against assets subject to finance lease 12.36-17.35 p.a. 27,535 48,704 76,239 - - - 76,239 Long term finances - secured 12.28-15.49 p.a. 289,309 278,571 567,880 - - - 567,880 Long-term deposits - - - - 60,787 60,787 60,787 Trade and other payables - - - 7,181,547 - 7,181,547 7,181,547 Mark-up accrued - - - 59,877 - 59,877 59,877 Short-term running finances - secured 13.18-15.49 p.a. 1,271,707 - 1,271,707 - - - 1,271,707
(b) 1,588,551 327,275 1,915,826 7,241,424 60,787 7,302,211 9,218,037
On balance sheet gap (a)-(b) 24,796 (327,275) (302,479) (1,648,670) 785,248 (863,422) (1,165,901)
(c) Price Risk
Price risk represents the risk that the fair value of a financial instrument will fluctuate because of changes in the market prices (other than those arising from interest/mark-up rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instruments or its issuers, or factors a ecting all or similar financial instruments traded in the market. The Company is exposed to equity price risk since it has investments in quoted equity securities amounting to Rs. 1,955.31 million (2014: Rs. 781.54 million) at the balance sheet date.
The Company manages price risk by monitoring exposure in quoted equity securities and implementing strict discipline in internal risk management and investment policies.
The value of investment subject to equity price risk are, in almost all instance, based on quoted market price as of the reporting date except for unquoted investments which are carried at cost. Market prices are subject 74 to fluctuation and consequently the amount realized as a result of subsequent sale of an investment may di er from the reported market value. Fluctuation in the market price of a security may result from perceived HASCOL changes in the underlying economic characteristics of the investee, the relative price of alternative investment and general market condition. Furthermore, the amount realized in the sale of a particular security may be a ected by the relative quantity of the security being sold.
Sensitivity analysis Annual Report - 2015
The table below summarizes the Company's equity price risk as of December 31, 2015 and 2014 and shows the e ects of a hypothetical 30% increase and a 30% decrease in market prices as at the year end. The selected hypothetical change does not reflect what could be considered to be the best or worst case scenarios. Accordingly, the sensitivity analysis prepared is not necessarily indication of the e ect on Company's net assets of future movement in the level of PSX 100 index. Estimated Hypothetical Hypothetical Hypothetical fair value increase / increase / Fair price change hypothetical (decrease) in (decrease) value at 30% after change shareholders in profit / in price equity (loss) Rupees in '000
December 31, 2015 1,955,310 Increase 2,541,903 586,593 - Decrease (2,541,903) (586,593) -
December 31, 2014 781,542 Increase 1,016,005 234,463 - Decrease (1,016,005) (234,463) -
(d) Other price risk
Other price risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer. The Company is not exposed to such price risk as there is no such type of financial instruments available to the Company.
43.1.2 Credit risk and concentration of credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Out of the total financial assets of Rs. 11,386.45 million (2014: Rs. 8,052.13 million), the financial assets which are subject to credit risk amounting to Rs. 5,359.60 million (2014: Rs. 5,509.66 million).
The credit quality of receivables can be assessed with reference to the historical performance with no or some defaults in recent history. The Company manages credit risk of receivables through the monitoring of credit exposures, limiting transactions with specific customers and continuous assessment of credit worthiness of its customers.
The carrying values of financial assets which are neither past due nor impaired are as under:
2015 2014 Rupees in '000
Long-term deposits 228,631 64,493 Trade debts 4,263,595 4,548,823 Advances 15,006 14,828 Other receivables 852,370 881,517 Cash and bank balance 4,071,547 1,760,933 75 9,431,149 7,270,594
HASCOL The credit risk for cash and cash equivalents is considered to be negligible, since the counterparties are reputable banks and institutes with high quality external credit ratings. The credit quality of bank balances that are neither past due nor impaired can be assessed with reference to external credit ratings as follows: Annual Report - 2015 Banks Rating Short Long Banks Rating Short Long Agency term term Agency term term
Allied Bank Limited PACRA A1+ AA+ Silkbank Limited JCR- VIS A1+ AA Askari Bank Limited JCR- VIS A1+ AA Sindh Bank Limited JCR- VIS A1+ AA Bank Al Falah Limited PACRA A1+ AA Soneri Bank Limited PACRA A1+ AA- Bank Al Habib Limited PACRA A1+ AA+ Standard Chartered Bank Islami Pakistan Limited PACRA A1 A Bank (Pakistan) Limited PACRA A1+ AAA Bank of Punjab Limited PACRA A1+ AA- Summit Bank Limited JCR- VIS A1 A Habib Metropolitan United Bank Limited JCR- VIS A1+ AA+ Bank Limited PACRA A1+ AA+ First Women Bank Limited PACRA A2 BBB+ Habib Bank Limited JCR- VIS A1+ AAA The Bank of Khyber JCR- VIS A1 A- JS Bank Limited PACRA A1 A+ Burj Bank Limited JCR- VIS A2 A- MCB Bank Limited PACRA A1+ AAA Industrial and Commercial Meezan Bank Limited JCR- VIS A1+ AA Bank of China Limited S&P A National Bank of Pakistan JCR- VIS A1+ AAA NIB Bank Limited PACRA A1+ AA- Samba Bank Limited JCR- VIS A1 AA
43.1.3 Liquidity risk
Liquidity risk reflects the Company's inability of raising funds to meet commitments. Management closely monitors the Company's liquidity and cash flow position. This includes maintenance of balance sheet liquidity ratios, debtors and creditors concentration both in terms of overall funding mix and avoidance of undue reliance on large individual customers.
As at December 31, 2015 the Company's financial liabilities have contractual maturities as summarised below:
Within one Over one Total year year Rupees in '000
Long-term finances - secured 285,636 176,151 461,787 Liabilities against assets subject to finance lease 102,597 322,930 425,527 Long-term deposits - 64,132 64,132 Trade and other payable 14,007,661 - 14,007,661 Mark-up accrued 54,311 - 54,311 Short-term running finances - secured 1,413,055 - 1,413,055 15,863,260 563,213 16,426,473
As at December 31, 2014 the Company's liabilities had contractual maturities as summarised below:
Within one Over one Total 76 year year Rupees in '000 HASCOL
Long-term finances - secured 289,309 278,571 567,880 Liabilities against assets subject to finance lease 27,535 48,704 76,239 Long-term deposits - 60,787 60,787 Trade and other payable 7,181,547 - 7,181,547 Annual Report - 2015 Mark-up accrued 59,877 - 59,877 Short-term running finances - secured 1,271,707 - 1,271,707 8,829,975 388,062 9,218,037 44 CAPITAL RISK MANAGEMENT OBJECTIVES AND POILCIES
The Board's policy is to maintain a strong capital base so as to maintain investors', creditors' and market's confidence and to sustain future development of the business, safeguard the Company's ability to continue as going concern in order to provide returns for shareholders and benefit for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Board monitor the return on capital, which the Company defines as net profit/(loss) after tax divided by total shareholders' equity. The Board also monitor the level of dividend to ordinary shareholders subject to the availability of funds.
The Company finances its operations through equity, borrowings and management of working capital with a view to maintain an appropriate mix between various sources of finance to minimize risk.
2015 2014 Rupees in '000
Total borrowings 2,300,369 1,915,826 Cash and bank balance (4,071,547) (1,760,933) Excess of net cash over debt/ net debt (1,771,178) 154,893 Total Equity 4,529,103 2,778,813 Total Capital 2,757,925 2,933,706 Gearing ratio 0.00% 5.28%
45 EMPLOYEES PROVIDENT FUND
The Company operates approved provident fund for its employees. Details of assets and investments of the fund is as follows: 2015 2014
Size of fund - total assets (Rupees in '000) 54,856 41,656
Cost of investments made (Rupees in '000) 52,662 35,955
Percentage of investments made 100% 100%
Fair value of investments (Rupees in '000) 54,856 41,656
The management, based on the un-audited financial statements of the fund, is of the view that the investments out of the provident fund have been made in accordance with the provision of section 227 of the Companies Ordinance, 1984 and the rules formulated for the purpose.
77 46 NUMBER OF EMPLOYEES HASCOL 2015 2014
Total number of employees at year-end 394 292
Average number of employees during the year 359 259 Annual Report - 2015 47 SUBSEQUENT EVENT
The Company issued 400,000 Privately Placed Sukkuk Units (PPSUs) having face value of Rs. 5,000.00 each. The issue resulted in cash receipts of subscription money amounting Rs. 2,000.00 million on January 07, 2016 form 23 participants. The Sukkuk certificates carry profit at the rate of 3 months KIBOR plus 1.5% with quarterly rental payments for a tenure of 6 years from the closing date with 1 year grace period. These certificates are raised to generate funds under Islamic mode of financing. 48 GENERAL
All amounts have been rounded to the nearest thousand.
The corresponding figures have been reclassified/re-arranged where considered necessary for the purpose of better presentation. However, no material reclassification/re-arrangement have been made in these financial statements.
49 DATE OF AUTHORISATION
These financial statements have been authorized for issue on March 30, 2016 by the Board of Directors of the Company.
78 HASCOL Annual Report - 2015
Mumtaz Hasan Khan Najmus Saquib Hameed Chairman & Chief Executive Director
HASCOL Annual Report - 2015 02
December 31, 2015 December for the year ended year the for Financial Statments Financial Consolidated Audited
2014
Rupees in '000 Rupees in 1,522 1,522 4,288 2015 8,703,487 4,642,178 17,916,051 10,975,436 26,619,538 15,617,614 4,528,197 2,778,057 662,303 459,119 20,172,509 12,059,888 20,834,812 12,519,007 26,619,538 15,617,614 7 1,955,310 781,542 5 6,277,928 3,290,784 8 228,631 56,489 6 9 240,096 509,075 11 4,263,595 4,548,823 17 1,256,529 320,550 12 150,606 166,566 21 99,090 71,057 13 959,829 1,024,954 15 1,206,792 906,000 18 176,151 278,571 18 285,636 289,309 16 3,321,405 1,872,057 19 322,930 48,704 19 102,597 27,535 14 4,072,003 1,761,389 10 8,470,018 3,473,704 22 17,356,958 8,104,357 25 959,952 2,307,103 23 54,311 59,877 24 24 1,413,055 1,271,707 26 20 64,132 60,787 Note Director Director Najmus Saquib Hameed Mumtaz Hasan Khan Chairman & Chief Executive assets Non-current and equipment plant Property, Intangible investments Long-term deposits Long-term taxation Deferred assets non-current Total assets Current Stock-in-trade debts Trade Advances and other receivables Deposits, prepayments Cash and bank balances assets current Total ASSETS TOTAL EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY capital Share Reserves equity shareholders' Total - net of tax assets of fixed Surplus on revaluation LIABILITIES liabilities Non-current - secured finances Long-term lease finance subject to assets Liabilities against deposits Long-term liability - gratuity Deferred liabilities non-current Total liabilities Current and other payables Trade accrued Mark-up - secured running finances Short-term - secured finances portion of long-term Current lease finance subject to assets of liabilities against maturity Current Taxation liabilities current Total LIABILITIES TOTAL EQUITY AND LIABILITIES TOTAL AND COMMITMENTS CONTINGENCIES financial statements. part of these consolidated an integral form 49 1 to notes annexed The ASSETS ASSETS As At December 31, 2015 December As At CONSOLIDATED BALANCE SHEET BALANCE CONSOLIDATED
81 HASCOL Annual Report - 2015 HASCOL Annual Report - 2015 82 2014 2014 Restated 9.39 9.39 5.88 Rupees in '000 Rupees in 2015 2015 (17,291,360) (14,205,042) 76,773,937 84,856,454 76,856,768 84,913,812 2,838,953 2,036,795 (1,419,862) (1,098,657) 1,629,632 1,236,829 (433,061) (372,542) 1,196,571 864,287 1,133,087 639,601 Rupees 31 (366,388) (329,843) 27 27 94,065,297 99,061,496 32 210,541 298,691 35 35 (63,484) (224,686) 33 (349,652) (264,086) 28 82,831 57,358 29 (74,017,815) (82,877,017) 36 34 (83,409) (108,456) 30 (1,053,474) (768,814) Note Director Director Najmus Saquib Hameed Mumtaz Hasan Khan Chairman & Chief Executive Less: Sales tax Less: Net sales Other revenue Net revenue sold of products Cost profit Gross expenses Operating and marketing Distribution Administrative Other income profit Operating cost Finance Other charges taxation before Profit Taxation the year for Profit - basic and diluted Earnings per share financial statements. part of these consolidated an integral form 49 1 to notes annexed The Sales - net CONSOLIDATED PROFIT AND LOSS ACCOUNT LOSS AND PROFIT CONSOLIDATED 31, 2015 December Ended Year The For 2014
Rupees in '000 Rupees in 2015 1,133,087 639,601 690,662 683,198 1,816,285 (5,941) (12,140) 627,461 21.3 (7,464) (6,199) Note Director Director Najmus Saquib Hameed Mumtaz Hasan Khan Chairman & Chief Executive income: Other comprehensive be reclassified will never that Items account and loss profit to of net defined benefit Remeasurement liability - net of tax subsequently be reclassified may that Items account loss and profit to investment of long- term value change in fair due to gain/(loss) Unrealized - net of tax as 'available-for-sale' classified income comprehensive Total financial statements. part of these consolidated an integral form 49 1 to notes annexed The year the for Profit CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME COMPREHENSIVE OF STATEMENT CONSOLIDATED 31, 2015 December Ended Year The For
Annual Report - 2015
HASCOL 83 HASCOL Annual Report - 2015 84 - 2014
- 1,317,528 - 47,121 Rupees in '000 Rupees in 2,272 2,272 17,683 2015 (106,093) 11,800 345,911 104,146 2,177,542 1,367,035 12,279 295,576 481,406 185,830 (2,290,263) (172,142) (1,792,939) (29,376) 349,288 (150,849) (289,920) (18,763) (384,440) (827,579) (355,218) 139,662 (222,210) (197,891) 4,363,659 (3,359) 70,486 (36,926) 721,480 (1,735,953) (1,000,788) 39 39 4,780,465 910,130 40 2,658,948 481,406 Note Director Director Najmus Saquib Hameed Mumtaz Hasan Khan Chairman & Chief Executive CONSOLIDATED CASH FLOW STATEMENT FLOW CASH CONSOLIDATED Long-term finance (repaid)/obtained - net (repaid)/obtained finance Long-term deposits Long-term financing activities from Net cash generated equivalents in cash and cash Net increase beginning of the year at Cash and cash equivalents end of the year at Cash and cash equivalents financial statements. part of these consolidated an integral form 49 1 to notes annexed The Long-term deposits Long-term activities Net cash used in investing FROM FINANCING ACTIVITIES FLOWS CASH - net liability obtained/(repaid) Lease Dividend paid - net of shares issuance from Proceeds Long-term investment made during the year made during the year investment Long-term investment disposal of long-term from Proceeds operations from Cash generated paid cost Finance on bank deposits Profit paid Taxes paid Gratuity activities operating from Net cash generated ACTIVITIES FROM INVESTING FLOWS CASH incurred Capital expenditure plant and equipment disposal of property, from Proceeds CASH FLOWS FROM OPERATING ACTIVITIES ACTIVITIES FROM OPERATING FLOWS CASH For The Year Ended December 31, 2015 December Ended Year The For - - Total
- (5,941) - (94,972) - 1,412,500 - 690,662 (6,199) (6,199) (6,199) 37,826 37,826 37,826 (7,464) (7,464) (7,464) 84,704 84,704 84,704 807,170 807,170 807,170 2,778,057 2,778,057 671,228 671,228 665,287 639,601 639,601 639,601 (201,132) (201,132) 425,862 1,085,162 (99,660) (99,660) (451,641) (451,641) (150,849) (90,600) (90,600) (90,600) (90,600) (90,600) reserve Revenue ated profit ated Unappropri-
(150,849) (150,849) ------(108,720) (108,720) - - - (289,920) 1,027,608 - 1,133,087 - 1,133,087 - - (5,941) (5,941) (5,941) (5,941) (5,941) (5,941) Fair value Director Director Rupees in '000
Capital ------690,662 - - 690,662 1,210,327 1,900,989 reserves 3,300 Najmus Saquib Hameed Share premium
------(94,972) - - - - - 201,132 201,132 99,660 99,660 300,792 300,792 656,000 656,000 250,000 250,000 1,162,500 250,000 250,000 1,067,528 906,000 906,000 906,000 1,070,828 1,070,828 1,206,792 1,206,792 1,070,828 684,721 1,565,856 4,528,197 Share Capital Mumtaz Hasan Khan Chairman & Chief Executive For The Year Ended December 31, 2015 December Ended Year The For Balance as at January 01, 2014 2014 01, January as at Balance year the for income comprehensive Total the year for Profit CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CHANGES OF STATEMENT CONSOLIDATED income Other comprehensive of long-term value change in fair due to loss Unrealized assets of fixed surplus on revaluation from Transferred with owners Transaction Remeasurement of net defined benefit of net defined Remeasurement liability - net of tax - net of tax 'available-for-sale' as classified investment - net of tax depreciation of incremental on account First interim dividend at Rs. 1 per share Rs. 1 per share dividend at interim First Rs. 1 per share dividend at interim Second 1.2 per share Rs. dividend at interim Third with owners transaction Total Share issuance cost cost issuance Share Share issued during the year during the year issued Share Transferred from surplus on revaluation of fixed assets assets of fixed surplus on revaluation from Transferred 31, 2014 December as at Balance 2015 January 01, as at Balance the year for income comprehensive Total the year for Profit income Other comprehensive of net defined benefit Remeasurement liability - net of tax of long-term value change in fair gain due to Unrealized - net of tax as 'available-for-sale' classified investment - net of tax depreciation of incremental on account with owners Transaction Annual bonus @ 11% Dec 2014 bonus @ 20% June 2015 Interim Rs. 1.5 per share dividend at Interim with owners transaction Total 31, 2015 December as at Balance financial statements. part of these consolidated an integral form 49 1 to notes annexed The
Annual Report - 2015
HASCOL 85 The assets and liabilities of subsidiary company have been consolidated on a line by line basis and the carrying CONSOLIDATED NOTES TO THE FINANCIAL STATEMENTS value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity For The Year Ended December 31, 2015 in these consolidated financial statements.
Inter-company transactions, balances and unrealised gains on transactions between the Group companies are 1 LEGAL STATUS AND OPERATIONS eliminated. Unrealised losses are also eliminated but considered an impairment indicator of the asset transferred. The 'Group' consist of: The financial statements of the subsidiary company are prepared for the same reporting year as the holding Holding Company company, using consistent accounting policies. - Hascol Petroleum Limited 2.3 Business combination Subsidiary Company - Hascombe Lubricants (Private) Limited The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair Hascol Petroleum Limited (the Holding Company) was incorporated in Pakistan as a private limited Company values of assets transferred, liabilities incurred and the equity interests issued by the Group, which includes the on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted fair value of any asset or liability arising from a contingent consideration arrangement, if any. Acquisition costs Company and on May 12, 2014 the Holding Company was listed on the Karachi, Lahore and Islamabad Stock are expensed as incurred. Exchanges of Pakistan (due to demutualization, all stock exchanges are integrated into Pakistan Stock Exchange Limited). The registered o ce of the Holding Company is situated at Suite No.105-106, The Forum, The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless Khayaban-e-Jami, Clifton, Karachi. The principal activity of the Holding Company are procurement, storage of whether they have been previously recognised in the acquiree’s financial statements prior to the acquisition. and marketing of petroleum and related products, for which the Holding Company obtained oil marketing Assets acquired and liabilities assumed are generally measured at their acquisition-date fair values. license from Ministry of Petroleum and Natural Resources in the year 2005. Goodwill, if any, is stated after separate recognition of identifiable intangible assets. It is calculated as the The Group include the Holding Company and the Subsidiary Company: excess of the sum of (a) fair value of consideration transferred, (b) the recognised amount of any non-controlling interest in the acquiree and (c) acquisition-date fair value of any existing equity interest in the Subsidiary Company Nature of business Holding acquiree, over the acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e. gain on a bargain purchase) is recognised in Hascombe Lubricants (Private) Limited Lubricant marketing 100% profit or loss immediately.
1.1 Hascombe Lubricants (Private) Limited is wholly owned subsidiary of the Holding Company, incorporated in 2.4 Basis of measurement Pakistan under the Companies Ordinance, 1984. The Holding Company holds 9.779 million ordinary shares (2014: 9.779 million) of Rs. 10 per share. The subsidiary company has ceased to be a going concern. The These consolidated financial statements have been prepared under the historical cost convention, except for financial statements of the subsidiary company have not been prepared on a going concern assumption. certain assets and liabilities which are stated at revalued amount.
2 BASIS OF PREPARATION In these consolidated financial statements, except for the consolidated statement of cash flows, all the transactions have been accounted for on an accrual basis. 2.1 Statement of compliance 2.5 Functional and presentation currency These consolidated financial statements have been prepared in accordance with the Approved Accounting Standards as applicable in Pakistan. Approved Accounting Standards comprise of such International Financial These consolidated financial statements are presented in Pakistani Rupees which is also the Holding Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) and Islamic Company’s functional currency. Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan (ICAP) 86 as are notified under the provisions of the Companies Ordinance, 1984, the requirements of the Companies 2.6 Standards and amendments to published approved International Financial Reporting Standards not yet Ordinance, 1984 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP). HASCOL e ective Where the requirements of the Companies Ordinance, 1984 or directives issued by the SECP di er with the requirements of IFRS, the requirements of and directives issued under the Companies Ordinance, 1984 shall Initial application of a Standard, Amendment or an Interpretation to an existing Standard prevail. a) Standards, amendments to published standards and interpretations e ective in 2015 and relevant
2.2 Basis of consolidation Annual Report - 2015 The following standards, amendments to published standards and interpretations are mandatory for the The consolidated financial statements includes the financial statements of Holding Company and its financial year beginning January 1, 2015 and are relevant to the Company: subsidiaries comprising together 'the Group'. - IFRS 13 'Fair value measurement'. The standard aims to improve consistency and reduce complexity by Subsidiary company providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRSs. The requirements do not extend the use of fair value accounting but The Holding Company can directly exercise control over Hascombe Lubricants (Private) Limited as it is 100% provide guidance on how it should be applied where its use is already required or permitted by other owned by the Holding Company. standards within IFRSs. The standard only a ects the disclosures in the Company's financial statements.
- IAS 27 (Revised) 'Separate financial statements'. This standard replaces the current IAS 27 'Consolidated bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial market in high-quality corporate bonds in that currency, government bonds in the relevant currency should statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10. The be used. The amendment is retrospective but limited to the beginning of the earliest period presented. It Company's current accounting treatment is already in line with the requirements of this standard. is unlikely that the standard will have any significant impact on the Company's financial statements.
- IAS 19 (Amendment) 'Employee benefits'. The amendment applies to contributions from employees or - IAS 34 'Interim financial reporting' (e ective for annual periods beginning on or after July 1, 2016). This third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in distinguishes between contributions that are linked to service only in the period in which they arise and the interim financial report'. The amendment also amends IAS 34 to require a cross-reference from the those linked to service in more than one period. The objective of the amendment is to simplify the interim financial statements to the location of that information. The amendment is retrospective. It is accounting for contributions that are independent of the number of years of employee service, for example unlikely that the standard will have any significant impact on the Company's financial statements. employee contributions that are calculated according to a fixed percentage of salary. Entities with plans that require contributions that vary with service will be required to recognise the benefit of those There are number of other standards, amendments and interpretations to the published standards that are contributions over employee’s working lives. The amendment does not have any impact on the Company's not yet e ective and are also not relevant to the Company and therefore, have not been presented here. financial statements. 3 Critical assumptions estimates and measurement uncertainty - IAS 24 (Amendment) 'Related party disclosures'. The standard has been amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent The preparation of consolidated financial statements in conformity with approved accounting standards, as of the reporting entity (the ‘management entity’). Disclosure of the amounts charged to the reporting applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the entity is required. The amendment does not have any impact on the Company's financial statements. application of accounting policies and reported amounts of assets and liabilities, income and expenses.
b) Standards, amendments to published standards and interpretations that are e ective in 2015 but not The estimates and associated assumptions are based on historical experience and various other factors that relevant are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The other new standards, amendments to published standards and interpretations that are mandatory for the Actual results may di er from these estimates. financial year beginning on January 1, 2015 are considered not to be relevant or to have any significant e ect on the Company's financial reporting and operations. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised, if the revision a ects only that Standards, amendments to published standards and interpretations that are not yet e ective and have not period, or in the period of the revision and future periods if the revision a ects both current and future periods. been early adopted by the Company. Accounting policies in respect of judgments made by management in the application of approved accounting The following new standards and amendments to published standards are not e ective for the financial year standards, as applicable in Pakistan, that have significant e ect on the Holding Company's consolidated beginning on January 1, 2015 and have not been early adopted by the Company: financial statements and estimates and assumptions with significant risk of material adjustment in the future period are included in the following notes: - IAS 27 (Amendment) 'Separate financial statements' (e ective for annual periods beginning on or after January 1, 2016). The amendment allows entities to use the equity method to account for investments in Note subsidiaries, joint ventures and associates in their separate financial statements. It is unlikely that the amendment will have any significant impact on the Company's financial statements. a) Fixed assets - depreciation and amortization 4.1 & 4.2 b) Net realizable value of stock-in-trade 4.6 - Amendments to following standards as a result of annual improvements to International Financial c) Provisions 4.9 Reporting Standards issued by IASB: d) Taxation 4.12 - IFRS 7 ‘Financial instruments: Disclosures' (e ective for annual periods beginning on or after January 1, 2016). There are two amendments: Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. • Servicing contracts – If an entity transfers a financial assets to a third party under conditions which allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing 4 SIGNIFICANT ACCOUNTING POLICIES involvement that the entity might still have in the transferred assets. The standard provides guidance about what is meant by continuing involvement. The amendment is prospective with an option to apply The principal accounting policies applied in the preparation of these consolidated financial statements are set retrospectively. out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Interim financial statements – the amendment clarifies that the additional disclosure required by the 4.1 Property, plant and equipment amendments to IFRS 7, 'Disclosure – O setting financial assets and financial liabilities' is not specifically required for all interim periods unless required by IAS 34. This amendment is retrospective. Initial recognition
• It is unlikely that the standard will have any significant impact on the Company's financial statements. (a) Operating fixed assets
- IAS 19 'Employee benefits' (e ective for annual periods beginning on or after January 1, 2016). The An item of property, plant and equipment is initially recognized at cost. amendment clarifies that, when determining the discount rate for post-employment benefit obligations, it is the currency that the liabilities are denominated in that is important, not the country where they arise. The assets which are available for intended use are capitalized as operating fixed assets. While assets under The assessment of whether there is a deep marketing high-quality corporate bonds is based on corporate construction are capitalized to capital work in progress.
The Group accounts for property, plant and equipment acquired under finance leases by recording the assets - depreciation on assets which are revalued is determined with reference to the value assigned to such and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss the fair value of the leased properties and the present value of minimum lease payments. Financial charges are account; and allocated to the accounting period in a manner so as to provide a constant rate of charge on the outstanding liability. - an amount equal to incremental depreciation for the year net of deferred taxation is transferred from “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through consolidated (b) Capital work-in-progress (CWIP) statement of changes in equity to record realization of surplus to the extent of the incremental depreciation charge for the year. CWIP is stated at cost less accumulated impairment losses, if any. All expenditure in connection with specific assets incurred during construction/ installation period are carried to CWIP. These expenditures are 4.2 Intangible assets transferred to operating fixed assets as and when these are available for intended use. These are recorded initially at cost and subsequently carried at cost less accumulated amortization and Measurement subsequent to initial recognition accumulated impairment losses, if any.
(a) Carried using revaluation model Intangible assets having finite useful lives are stated at cost less accumulated amortization and accumulated impairment losses, if any. Such intangibles are amortized over their estimated useful lives using the straight line Following operating assets both owned and leased are subsequently measured under revaluation model (i.e. method. fair value at the date of revaluation less any subsequent accumulated depreciation and any subsequent accumulated impairment losses). Amortization on addition and deletion of intangible assets during the year is charged in proportion to the period of use. The useful life and amortization method are reviewed and adjusted, if appropriate, at the balance - Building on lease hold land sheet date. - Tanks and pipelines Intangible assets having indefinite useful life are not amortized and stated at cost less impairment losses, if any. - Dispensing pumps - Plant and machinery 4.3 Financial instruments - Electrical, mechanical and fire fighting equipment - Pump building Recognition, initial measurement and derecognition
Fair value is determined by external professional valuers with su cient regularity such that the carrying Financial assets and financial liabilities are recognised when the Holding Company becomes a party to the amount does not di er materially from that which would be determined using fair value at the balance sheet contractual provisions of the financial instrument and are measured initially at fair value adjusted for date. transaction costs, except for those carried at fair value through profit or loss which are measured initially at fair value. Subsequent measurement of financial assets and financial liabilities is described below. (b) Carried using cost model Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, Fixed assets other than those mentioned above are stated at cost less accumulated depreciation and or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is accumulated impairment losses. derecognised when it is extinguished, discharged, cancelled or expires.
Depreciation Classification and subsequent measurement of financial assets
Depreciation on assets is charged to profit and loss account applying the straight-line method whereby the For the purpose of subsequent measurement financial assets, other than those designated and e ective as cost/revalued amount of operating fixed assets is written o over its useful life. Same basis and estimates for hedging instruments, are classified into the following categories upon initial recognition: depreciation are applied to owned assets and assets acquired under finance lease. • loans and receivables Depreciation is charged on straight line method from the month in which an asset is available for intended use, while no depreciation is charged from the month in which the asset is disposed o . Depreciation is provided at • at fair value through profit or loss (FVTPL) - held-for-trading the rates as disclosed in note 5.1. • held-to-maturity (HTM) investments • available-for-sale (AFS) financial assets. Maintenance and normal repairs are charged to profit and loss account as and when incurred. Major renewals and improvements are capitalized and the assets so replaced, if any, are retired. All financial assets except for those at FVTPL are reviewed for impairment at least at each reporting date to identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired. Gain and loss on disposal of property, plant and equipment is included in profit and loss account currently. Di erent criteria to determine impairment are applied for each category of financial assets, which are described below. All income and expenses relating to financial assets that are recognised in profit or loss are Surplus on revaluation of fixed assets presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses. The surplus arising on revaluation of fixed assets is credited to the “Surplus on Revaluation of Fixed Assets” shown below equity in the consolidated balance sheet. Accordingly the Holding Company has adopted the Loans and receivables following accounting treatment of depreciation on revalued assets, keeping in view the requirement of Securities and Exchange Commission of Pakistan’s (SECP) SRO 45(1)/2003 dated January 13, 2003: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these are measured at amortised cost using the e ective
interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is 4.4 O setting immaterial. The Group's cash and bank balances fall into this category of financial instruments. Financial assets and liabilities are o set and the net amount is reported in the consolidated balance sheet if Receivables are considered for impairment when they are past due or when other objective evidence is the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle received that a specific counterparty will default. on a net basis or to realize the asset and settle the liability simultaneously.
At fair value through profit or loss - held-for-trading 4.5 Investments
Financial assets at fair value through profit or loss - held-for-trading include financial assets that are either The Group classifies its investments 'as available-for-sale', that do not fall under the held-for-trading or held to classified as held-for-trading or that meet certain conditions and are designated at fair value through profit or maturity. Unrealized surplus/deficit arising on revaluation of investment classified as 'available-for-sale' is loss - held-for-trading upon initial recognition. disclosed below shareholders' equity in the statement of consolidated financial statements.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair In case of impairment of available-for-sale securities, the cumulative loss that has been recognised directly in values of financial assets in this category are determined by reference to active market transactions or using a fair value reserve on the consolidated balance sheet below equity is removed there from and recognized in valuation technique where no active market exists. The Holding Company do not currently have any asset in profit and loss. this category. 4.6 Stock-in-trade HTM investments Stock-in-trade is valued at the lower of cost and net realizable value (NRV). HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturity other than loans and receivables. Investments are classified as HTM if the Holding Company has the intention Stock-in-transit is valued at cost comprising invoice value plus other charges incurred thereon. Provision is and ability to hold them until maturity. The Holding Company do not currently have any asset in this category. made for obsolete and slow moving stock-in-trade based on management's best estimate and is recognized in the consolidated profit and loss account. HTM investments are measured subsequently at amortised cost using the e ective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the The cost of stock in trade is determined on moving weighted average basis. financial asset is measured at the present value of estimated future cash flows. Any changes in the carrying amount of the investment, including impairment losses, are recognised in profit or loss. Provision is made for obsolete/slow moving stocks where necessary and recognized in the consolidated profit and loss account. Net realizable value is the estimated selling value price in the ordinary course of business less AFS financial assets estimated costs necessary to be incurred in order to make a sale.
AFS financial assets are non-derivative financial assets that are either designated to this category or do not 4.7 Impairment of non financial assets qualify for inclusion in any of the other categories of financial assets. These are primarily those investments that are intended to be held for an undefined period of time or may be sold in response to the need for The carrying amounts of non financial assets are assessed at each reporting date to ascertain whether there is liquidity. any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An impairment loss is recognized, as an expense in the consolidated profit and loss, for the amount by which the The equity investment is measured at cost less any impairment charges, as its fair value cannot currently be asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair estimated reliably. Impairment charges are recognized in profit or loss. All other AFS financial assets are value less cost to sell and value in use. Value in use is ascertained through discounting of the estimated future measured at fair value. Gains and losses are recognized in other comprehensive income and reported within cash flows using a discount rate that reflects current market assessments of the time value of money and the the AFS reserve within equity, except for interest and dividend income, impairment losses and foreign risk specific to the assets. For the purpose of assessing impairment, assets are grouped at the lowest levels for exchange di erences on monetary assets, which are recognized in consolidated profit or loss. When the asset which there are separately identifiable cash flows (cash generating units). is disposed of or is determined to be impaired, the cumulative gain or loss recognized in other comprehensive income is reclassified from the equity reserve to profit or loss. Interest calculated using the e ective interest An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable method and dividends are recognized in profit or loss within finance income. amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, if no impairment loss had been recognized. Reversals of impairment losses for AFS debt securities are recognized in profit or loss if the reversal can be objectively related to an event occurring after the impairment loss was recognized. For AFS equity 4.8 Cash and cash equivalents investments impairment reversals are not recognized in profit loss and any subsequent increase in fair value is recognized in other comprehensive income. The Holding Company does not currently have any other asset Cash and cash equivalents are carried in the consolidated balance sheet at cost. For the purposes of the other than as provided in this category. consolidated statement of cash flows, cash and cash equivalents include cash and bank balances and other items of current asset and current liabilities which qualify as cash equivalent. Classification and subsequent measurement of financial liabilities 4.9 Provisions The Holding Company financial liabilities include: Provisions are recognized when the Holding Company has a present legal or constructive obligation as a result Financial liabilities that are measured subsequently at amortised cost using the e ective interest method. All of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to account are included within finance costs or finance income. reflect the current best estimate.
4.10 Lease Deferred tax is calculated at the rates that are expected to apply to the period when the di erences reverse, based on the tax rates that have been enacted. The Group takes into account the current income tax law and 4.10.1 Finance leases decisions taken by the taxation authorities.
Leases in terms of which the Holding Company has substantially all the risks and rewards of ownership are Deferred tax is charged or credited in the consolidated profit and loss account, except in the case of items classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy credited or charged to equity or consolidated statement of other comprehensive income, in which case it is stated in note 4.1. included in equity or statement of other comprehensive income as the case may be.
The related rental obligations, net of finance costs are classified as current and long term depending upon the 4.13 Revenue recognition timing of the payment. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Holding Each lease payment is allocated between the liability and finance cost so as to achieve a constant rate on the Company and the revenue can be measured reliably. Revenue is measured at the fair value of consideration balance outstanding. The interest element of the rental is charged to income over the lease term. received or receivable on the following basis:
4.10.2 Operating leases - Sales are recorded when significant risks and rewards of ownership of the goods have passed to the customers which coincides with dispatch of goods to customers. Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are - Non-fuel retail income and other revenue (including license fee) is recognized on an accrual basis. classified as operating leases. Payments made under operating leases (net of any incentives received from the
lessor) are charged to the income statement on a straight-line basis over the period of lease. - Gain or loss on sale of investment classified as available for sale is included in profit and loss account in the
year in which they arise. 4.10.3 Ijarah
- Dividend income is recognized when the Holding Company's right to receive the dividend is established. Leased assets which are obtained under Ijarah agreement are not recognised in the Company’s balance sheet and are treated as operating lease based on Islamic Financial Accounting Standard (IFAS) 2 issued by the - Return on deposits and other services income is recognized on accrual basis. Institute of Chartered Accountants of Pakistan and notified by Securities and Exchange Commission of Pakistan vide S.R.O. 43(1) / 2007 dated May 22, 2007. Payments made under operating lease are charged to - Handling, storage and other services income are recognized when the services have been rendered. the profit and loss account on a straight line basis over the lease term. - Rental income is recognized on an accrual basis. 4.11 Foreign currency translations 4.14 Trade and other payables Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are converted into Pakistani rupees at Liabilities for creditors and other amounts payable are carried at cost which is the fair value of the the rates of exchange prevailing at the transaction date. Exchange gains or losses are taken to consolidated consideration to be paid in the future for the goods and/or services received whether not billed to the Holding profit and loss account. Company.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the 4.15 Retirement and other service benefits exchange rates as at the dates of the initial transactions. Non monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Unfunded gratuity scheme
4.12 Taxation During the year ended 2013, the Holding Company had changed its accounting policy in respect of post-retirement defined benefits plan as required under International Accounting Standard (IAS) 19, Taxation for the year comprises current and deferred tax. Taxation is recognized in the consolidated profit and "Employee Benefits". According to new policy actuarial gains and losses are recognized in Other loss account except to the extent that it relates to items recognized outside profit and loss account (whether Comprehensive Income (OCI) in the periods in which they occur. Amounts recorded in the consolidated profit in other comprehensive income or directly in equity), if any, in which case the tax amounts are recognized and loss account are limited to current service and past service costs, gains or losses on settlements, and net outside consolidated profit and loss account. interest income (expense). All other changes in the net defined benefit obligation are recognized directly in consolidated comprehensive income with no subsequent recycling through the consolidated profit and loss 4.12.1 Current account. The Holding Company accounts for taxation on the basis of taxable income at the current rates of taxation as applicable in Pakistan after taking into account tax credits and rebates available, if any, and further in Contributory provident fund accordance with other provisions of the Income Tax Ordinance, 2001. Moreover, current tax adjustments for tax payable in respect of prior years. The Holding Company operates an approved contributory provident fund for all its permanent employees. The contribution to the fund is made by the Holding Company as well as the employee at the rate of 5.73% of the 4.12.2 Deferred basic salary.
Deferred tax is provided for, using the balance sheet method, providing the temporary di erences between the 4.16 Borrowings and borrowing cost carrying amount of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realization or settlement Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently of the carrying amount of assets and liabilities using tax rates enacted at the balance sheet date. Deferred tax stated at amortized cost, any di erence between the proceeds (net of transaction costs) and the redemption asset is recognized only to the extent that it is probable that the future taxable profits will be available and value is recognized in the consolidated profit and loss account over the period of the borrowings using the credits can be utilized. e ective interest method.
Borrowings are classified as current liabilities unless the Holding Company has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date.
Borrowing costs are capitalized up to the point in time when substantially all the activities necessary to prepare the qualifying assets for its intended use or sale are complete. All other borrowing costs are charged to profit and loss account as and when incurred.
4.17 Dividend distribution
Final dividend distributions to the Holding Company’s shareholders are recognised as a liability in the consolidated financial statements in the period in which the dividends are approved by the Holding 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.
4.18 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 management that makes strategic decisions. The management has determined that the Holding Company has a single reportable segment as the Board of Directors views the Holding Company’s operations as one reportable segment.
4.19 Earning per share
The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the e ects of all dilutive potential ordinary shares. 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized
“Surplus on Revaluation of Fixed Assets account” to unappropriated profits through consolidated consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; not yet e ective and are also not relevant to the Company and therefore, have not been presented here. here. not been presented have and therefore, the Company to also not relevant and are e ective not yet amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The report'. financial the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. significant impact on the Company's any will have the standard that unlikely bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, a particular country. bonds in not corporate currency, bonds in that should currency in the relevant bonds government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely
year in which they arise. arise. in which they year providing a precise definition of fair value and a single source of fair value measurement and disclosure disclosure and measurement value of fair source and a single value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where how on guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards
customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers • held-to-maturity (HTM) investments receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that financial assets to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted contractual provisions of the financial instrument and are measured initially at fair value adjusted for for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. A financial liability is transferred. are and rewards all the risks and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized intangibles are Such if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. maturity. Unrealized surplus/deficit arising on revaluation of investment classified as 'available-for-sale' is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated in the statement equity shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price value selling is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through in use is ascertained Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other include cash and bank balances cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to enforceable has a legally the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to estimates are recognized in the period in which the estimates are revised, if the revision a ects only that only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment with significant risk of material and assumptions and estimates financial statements notes: included in the following period are Note otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets and reported policies of accounting application the basis of making the form of which the results under the circumstances, be reasonable to believed are other sources. from apparent not readily are that and liabilities of assets judgments about carrying values these estimates. from di er may results Actual under the circumstances. be reasonable to believed are that events of future including expectation - from is transferred taxation of deferred net the year for depreciation incremental an amount equal to - such to assigned the value to with reference is determined revalued which are on assets depreciation post-retirement defined benefits plan as required under International Accounting Standard (IAS) 19, 19, (IAS) Standard Accounting under International defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. are that the published standards to amendments and interpretations number of other standards, are There - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS - is rec income Rental - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income other services and Handling, storage - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss financial year beginning January 1, 2015 and are relevant to the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair transferred by the Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair fair of the acquisition-date as the sum of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests incurred liabilities transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent liability arising from or asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are assumed and liabilities acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the interest equity existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity shareholders' the subsidiary's against is eliminated company Holding the by held of investments value financial statements. in these consolidated of the asset indicator an impairment but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. as the case may income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership when significant risks and rewards recorded Sales are as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans of financial assets and subsequent measurement Classification expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets Recognition, initial measurement and derecognition derecognition and instruments measurement Financial initial 4.3 Recognition, the a party to becomes when the Holding Company recognised and financial liabilities are Financial assets 4.2 Intangible assets assets Intangible 4.2 and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets the to proportion in charged is year the during intangible assets of and deletion addition on Amortization any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss Stock-in-trade in directly has been recognised that loss securities, the cumulative In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions 4.5 Investments Investments 4.5 or held to under the held-for-trading do not fall that 'as available-for-sale', its investments classifies Group The 4.4 O setting setting O 4.4 sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets accounting of approved management in the application of judgments made by policies in respect Accounting and amortization - depreciation assets a) Fixed equipment and plant Property, 4.1 Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed as operating capitalized use are intended for available which are assets The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The POLICIES ACCOUNTING SIGNIFICANT 4 set are financial statements consolidated of these policies applied in the preparation principal accounting The 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The of stock-in-trade value Net realizable b) Provisions c) d) Taxation and other factors, experience based on historical and are evaluated continually and judgments are Estimates 4.16 Borrowings and borrowing cost cost borrowing and Borrowings 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings Contributory provident fund fund provident Contributory The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.15 Retirement and other service benefits benefits service other and scheme Retirement gratuity 4.15 Unfunded of in respect policy had changed its accounting the Holding Company ended 2013, During the year 4.14 Trade and other payables payables other and Trade 4.14 of the value which is the fair cost carried at are and other amounts payable creditors Liabilities for
and relevant in 2015 e ective and interpretations published standards amendments to a) Standards, the for mandatory are and interpretations published standards to amendments standards, following The consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business and liabilities assumed acquired identifiable assets recognises Group The the as It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the flows, of cash statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to or an Interpretation Amendment of a Standard, Initial application are companies the Group between on transactions gains and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business carrying line basis and the a line by on been consolidated have of subsidiary company liabilities and assets The recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue
Annual Report - 2015
87 HASCOL
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing of all types of continuing disclosure 7 requires IFRS asset, the derecognize to the transferor allow guidance provides standard The assets. in the transferred have might still the entity that involvement apply with an option to amendment is prospective The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have IASB: by issued Standards Reporting amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required disclosure the additional – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have standard the that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency bonds is based on corporate high-quality corporate is a deep marketing whether there of assessment The and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's amendment The of such contributions. benefit plans and clarifies the treatment defined parties to third arise and they only in the period in which service to linked are that contributions between distinguishes simplify the of the amendment is to objective than one period. The in more service to those linked example for service, of employee of years independent of the number are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts Disclosure entity (the ‘management entity’). of the reporting financial statements. impact on the Company's any does not have amendment The entity is required. interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are in this category assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. has the intention as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective changes in the carrying Any cash flows. future of estimated value the present at is measured financial asset or loss. in profit recognised are including impairment losses, amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to be sold in response an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income other comprehensive in recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit not recognized are impairment reversals investments other asset any have does not currently Holding Company The income. in other comprehensive recognized in this cate classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard on Islamic Financial Accounting lease based as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss outside profit recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current Moreover, 2001. O and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges lease payments. of minimum value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - or after annual periods beginning on for (e ective financial statements' (Amendment) 'Separate 27 IAS - Financial International to of annual improvements as a result standards following Amendments to - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). annual periods beginning on or after for benefits' (e ective 19 'Employee IAS on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted unlisted a public into converted was Company the Holding 12, 2007 September On 28, 2001. on March Stock and Islamabad Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are of the Holding Company principal activity The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing which the Holding Company for products, and related of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved in Pakistan. as applicable Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). Pakistan of Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the the SECP di er by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS - or employees from contributions amendment applies to The benefits'. 19 (Amendment) 'Employee IAS - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS credits can be utilized. utilized. be can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the we in incorporated of the Holding Company, subsidiary is wholly owned Limited (Private) Lubricants Hascombe is evidence due or when other objective past are impairment when they for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets investments fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest using the e ective amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification financial liabilities include: Holding Company The method. All interest using the e ective cost amortised subsequently at measured are Financial liabilities that 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between allocated is payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets Taxation using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.12 Current and profit in the consolidated is recognized Taxation tax. and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, tax is provided Deferred
Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to pipelines subsequent (CWIP) Capital work-in-progress (b) land machinery with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP and Measurement pumps hold and Tanks Dispensing lease Plant model (a) Carried using revaluation model (i.e. under revaluation subsequently measured and leased are both owned assets operating Following on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals incurred. as and when account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit Gain on disposal of property, and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The but not in 2015 e ective are that and interpretations standards published amendments to Standards, b) the for mandatory are that and interpretations published standards amendments to standards, other new The not and have e ective not yet are that and interpretations published standards amendments to Standards, the financial year for not e ective are published standards and amendments to standards new following The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Company Holding Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited a private as in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The PREPARATION 1.1 OF Limited Lubricants (Private) Hascombe BASIS marketing Lubricant 2 2.1 of compliance Statement consolidation Accounting with the Approved in accordance prepared been have financial statements consolidated These 100% of Basis 2.2 company and its of Holding Company includes the financial statements financial statements consolidated The Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The
distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 segments as a liability in the recognised are shareholders the Holding Company’s to distributions Final dividend Operating share 4.18 per the chief to provided reporting with the internal in a manner consistent reported segments are Operating Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized
year in which they arise. arise. in which they year customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; consolidated through profits unappropriated to account” Assets Fixed of Revaluation on “Surplus incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep is no deep there where Similarly, country. particular in a bonds not corporate currency, in that bonds should currency in the relevant bonds government currency, in that bonds corporate in high-quality market It presented. period the earliest of the beginning to limited but is retrospective amendment The be used. financial statements. the Company's impact on significant any will have the standard that is unlikely in disclosed elsewhere ‘information to in the standard the reference is meant by clarifies what amendment the from a cross-reference require 34 to also amends IAS amendment The report'. financial the interim It is is retrospective. amendment The information. of that the location to financial statements interim statements. financial impact on the Company's significant any will have the standard that unlikely here. not been presented have and therefore, Company the to also not relevant and are e ective not yet consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. 19, (IAS) Standard Accounting under International defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income other services and Handling, storage - is rec income Rental accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized intangibles are Such if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. A financial liability is transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that assets financial to relating and expenses All income described below. impairment of trade for except items, or other financial income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price value selling is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through in use is ascertained Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other include cash and bank balances cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. as the case may income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership when significant risks and rewards recorded Sales are - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail including expectation of future events that are believed to be reasonable under the circumstances. be reasonable to believed are that events of future including expectation otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction - such to assigned the value to with reference is determined revalued which are on assets depreciation - from is transferred taxation net of deferred the year for depreciation incremental equal to an amount applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect judgment that and use assumptions estimates, make to management requires applicable in Pakistan, and expenses. income and liabilities, of assets amounts policies and reported of accounting application the basis of making the of which form the results under the circumstances, be reasonable to believed are sources. other from apparent readily not are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment with significant risk of material and assumptions and estimates financial statements notes: included in the following period are Note value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, consideration of value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Reporting Financial International published approved and amendments to Standards e ective the Company: to relevant and are January 1, 2015 beginning financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair e ective interest method. basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective - This 2016). July 1, after or on beginning periods annual for (e ective reporting' financial 'Interim 34 IAS are that the published standards to amendments and interpretations number of other standards, are There 4.14 Trade and other payables payables benefits other service and other Trade 4.14 and scheme Retirement gratuity of the value is the fair which cost carried at are and other amounts payable creditors Liabilities for 4.15 Unfunded fund of in respect policy had changed its accounting the Holding Company ended 2013, During the year provident Contributory The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.2 Intangible assets assets Intangible 4.2 derecognition and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets instruments measurement the to proportion in is charged year the during intangible assets of and deletion addition on Amortization Financial initial 4.3 any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets Recognition, the a party to becomes when the Holding Company recognised and financial liabilities are Financial assets expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets of financial assets and subsequent measurement Classification as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans 4.4 O setting setting O 4.4 Investments sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets 4.5 or held to under the held-for-trading do not fall that 'as available-for-sale', its investments classifies Group The Stock-in-trade in directly has been recognised that loss cumulative securities, the In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue 4.1 Property, plant and equipment POLICIES equipment ACCOUNTING and SIGNIFICANT factors, and other experience based on historical and are evaluated continually and judgments are Estimates 4 plant Property, set are financial statements of these consolidated policies applied in the preparation 4.1 principal accounting The Initial recognition assets fixed (a) Operating cost. at recognized plant and equipment is initially of property, An item under assets While assets. fixed as operating capitalized use are intended for available which are assets The of stock-in-trade value Net realizable b) Provisions c) d) Taxation 3 uncertainty and measurement estimates assumptions Critical as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The accounting to an ongoing basis. Revisions on reviewed are and underlying assumptions estimates The accounting of approved management in the application of judgments made by policies in respect Accounting and amortization - depreciation assets a) Fixed line basis and the carrying on a line by consolidated been have and liabilities of subsidiary company assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for in accounting method the acquisition applies Group The regardless combination in a business and liabilities assumed acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation the Holding Rupees which is also in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application and relevant in 2015 e ective and interpretations standards published amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The 4.16 Borrowings and borrowing cost cost borrowing and Borrowings 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings
HASCOL Annual Report - 2015 88
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing of all types of continuing disclosure 7 requires IFRS asset, the derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to amendment is prospective The involvement. continuing meant by is about what retrospectively. liabilities' is not specifically and financial financial assets – O setting 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required 2016). There are two amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated liabilities are the that is the currency bonds is based on corporate high-quality corporate is a deep marketing of whether there assessment The Reporting Standards issued by IASB: by issued Standards Reporting January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have party, an entity that provides key management personnel services to the reporting entity or to the parent parent the or to entity the reporting to personnel services management key provides an entity that party, the reporting to charged of the amounts Disclosure entity (the ‘management entity’). of the reporting financial statements. on the Company's impact any amendment does not have The entity is required. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment amendment The contributions. of such clarifies the treatment plans and defined benefit parties to third and arise in which they in the period only service to linked are that contributions between distinguishes simplify the is to of the amendment objective than one period. The in more service to those linked example for service, of employee of the number of years independent are that contributions for accounting with plans Entities of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial financial separate on provisions the and includes in 2008) (as amended Statements' Financial and Separate The IFRS 10. new in the included been have 27 of IAS provisions control the after left are that statements of this standard. with the requirements in line is already treatment accounting current Company's interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are in this category assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. the intention has as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective carrying changes in the Any cash flows. future of estimated value the present at is measured financial asset or loss. in profit recognised are including impairment losses, amount of the investment, primarily those investments are These assets. of financial of the other categories inclusion in any qualify for the need for to be sold in response or may an undefined period of time be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income other comprehensive in recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit not recognized are impairment reversals investments other asset any have does not currently Holding Company The income. in other comprehensive recognized in this category. other than as provided or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss outside profit recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). annual periods beginning on or after for benefits' (e ective 19 'Employee IAS - Financial International to of annual improvements as a result standards following Amendments to relevant relevant significant e ect any have or to be relevant to not considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges of minimum lease payments. value and the present of the leased properties value the fair the outstanding on of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was Company the Holding 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing which the Holding Company for products, and related of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved in Pakistan. as applicable Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the the SECP di er by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS - or employees from contributions applies to amendment benefits'. The 'Employee 19 (Amendment) IAS - 'Consolidated 27 IAS the current replaces standard This statements'. financial 'Separate (Revised) 27 IAS operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by Company of the shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe
is evidence due or when other objective past are when they impairment for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets financial liabilities include: Holding Company The method. All interest using the e ective cost amortised subsequently at measured are Financial liabilities that investments HTM assets maturity fixed and payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest using the e ective amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification Taxation 4.12 Current and profit in the consolidated is recognized Taxation tax. and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, tax is provided Deferred using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between allocated is payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets not and have e ective not yet are that and interpretations published standards amendments to Standards, the for mandatory are that and interpretations published standards amendments to standards, other new The year the financial for not e ective are standards published and amendments to standards new following The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit on disposal of property, Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The - Tanks and pipelines pipelines (CWIP) Capital work-in-progress (b) land machinery and pumps hold and Tanks Dispensing lease Plant on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to subsequent with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP Measurement model (a) Carried using revaluation model (i.e. revaluation under subsequently measured and leased are both owned assets operating Following the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed 2 BASIS OF PREPARATION PREPARATION OF BASIS 2 2.1 of compliance Statement Accounting with the Approved in accordance prepared been have financial statements consolidated These company Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The 1.1 Limited Lubricants (Private) Hascombe marketing Lubricant consolidation 100% of Basis 2.2 and its of Holding Company includes the financial statements financial statements consolidated The 4.19 Earning per share share per Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.18 Operating segments segments Operating 4.18 the chief to provided reporting with the internal in a manner consistent reported segments are Operating distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized
year in which they arise. arise. in which they year
customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through consolidated consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards not yet e ective and are also not relevant to the Company and therefore, have not been presented here. here. not been presented have and therefore, Company the to also not relevant and are e ective not yet amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in disclosed elsewhere ‘information to in the standard the reference is meant by clarifies what amendment the from a cross-reference require 34 to also amends IAS amendment The report'. financial the interim It is is retrospective. amendment The information. of that the location to financial statements interim statements. financial impact on the Company's significant any will have the standard that unlikely bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep is no deep there where Similarly, country. particular in a bonds not corporate currency, in that bonds should currency in the relevant bonds government currency, in that bonds corporate in high-quality market It presented. period the earliest of the beginning to limited but is retrospective amendment The be used. financial statements. the Company's impact on significant any will have the standard that is unlikely post-retirement defined benefits plan as required under International Accounting Standard (IAS) 19, 19, (IAS) Standard Accounting under International defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. - is rec income Rental - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income other services and Handling, storage - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss • held-to-maturity (HTM) investments receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that assets financial to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted contractual provisions of the financial instrument and are measured initially at fair value adjusted for for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. A financial liability is transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized intangibles are Such if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. maturity. Unrealized surplus/deficit arising on revaluation of investment classified as 'available-for-sale' is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price value selling is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through in use is ascertained Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other include cash and bank balances cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. as the case may income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership when significant risks and rewards recorded Sales are applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect judgment that and use assumptions estimates, make to management requires applicable in Pakistan, and expenses. income and liabilities, of assets amounts policies and reported of accounting application the basis of making the of which form the results under the circumstances, be reasonable to believed are sources. other from apparent readily not are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment with significant risk of material and assumptions and estimates financial statements notes: included in the following period are Note otherwise stated. unless presented, all the years applied to been consistently policies have These out below. including expectation of future events that are believed to be reasonable under the circumstances. be reasonable to believed are that events of future including expectation - from is transferred taxation net of deferred the year for depreciation incremental equal to an amount - such to assigned the value to with reference is determined revalued which are on assets depreciation financial year beginning January 1, 2015 and are relevant to the Company: to relevant and are January 1, 2015 beginning financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, consideration of value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Reporting Financial International published approved and amendments to Standards e ective in progress. capital work to capitalized are construction are that the published standards to amendments and interpretations number of other standards, are There - This 2016). July 1, after or on beginning periods annual for (e ective reporting' financial 'Interim 34 IAS 4.16 Borrowings and borrowing cost cost borrowing and Borrowings 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings Contributory provident fund fund provident Contributory The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.15 Retirement and other service benefits benefits service other and scheme Retirement gratuity 4.15 Unfunded of in respect policy had changed its accounting the Holding Company ended 2013, During the year 4.14 Trade and other payables payables other and Trade 4.14 of the value which is the fair cost carried at are and other amounts payable creditors Liabilities for as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans of financial assets and subsequent measurement Classification expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets Recognition, initial measurement and derecognition derecognition and instruments measurement Financial initial 4.3 Recognition, the a party to becomes when the Holding Company recognised and financial liabilities are Financial assets 4.2 Intangible assets assets Intangible 4.2 and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets the to proportion in charged is year the during intangible assets of and deletion addition on Amortization any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss Stock-in-trade in directly has been recognised that loss cumulative securities, the In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions 4.5 Investments Investments 4.5 or held to under the held-for-trading do not fall that 'as available-for-sale', its investments classifies Group The 4.4 O setting setting O 4.4 sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue accounting to an ongoing basis. Revisions on reviewed are and underlying assumptions estimates The accounting of approved management in the application of judgments made by policies in respect Accounting 3 uncertainty and measurement estimates assumptions Critical as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The and amortization - depreciation assets a) Fixed 4 SIGNIFICANT ACCOUNTING POLICIES POLICIES ACCOUNTING SIGNIFICANT 4 set are financial statements of these consolidated policies applied in the preparation principal accounting The of stock-in-trade value Net realizable b) Provisions c) d) Taxation and other factors, experience based on historical and are evaluated continually and judgments are Estimates
and relevant in 2015 e ective and interpretations standards published amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The line basis and the carrying on a line by consolidated been have and liabilities of subsidiary company assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for in accounting method the acquisition applies Group The regardless combination in a business and liabilities assumed acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation the Holding Rupees which is also in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application 4.1 Property, plant and equipment equipment and plant Property, 4.1 Initial recognition assets fixed (a) Operating cost. at is initially recognized plant and equipment of property, An item under assets While assets. fixed as operating capitalized use are intended for available which are assets The
Annual Report - 2015
HASCOL 89
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing all types of continuing of disclosure 7 requires IFRS asset, the derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to is prospective amendment The involvement. continuing is meant by about what retrospectively. liabilities' is not specifically and financial financial assets – O setting 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have IASB: by issued Standards Reporting amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency bonds is based on corporate high-quality corporate is a deep marketing of whether there assessment The and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial financial on separate provisions the includes and 2008) in amended (as Statements' Financial Separate and The 10. IFRS new the in included been have 27 of IAS provisions control the after left are that statements standard. this of requirements the with line in already is treatment accounting current Company's amendment The contributions. of such treatment the clarifies and plans benefit defined to parties third and arise which they in in the period only service to linked are that contributions between distinguishes the simplify is to of the amendment objective The period. one than more in service to linked those example for service, of employee years of of the number independent are that contributions for accounting plans Entities with of salary. percentage a fixed to according calculated are that contributions employee of those the benefit recognise to be required will with service vary that contributions require that on the Company's impact any not have amendment does The lives. working employee’s over contributions statements. financial parent the or to entity the reporting to personnel services management key provides an entity that party, the reporting to charged of the amounts Disclosure entity (the ‘management entity’). of the reporting financial statements. on the Company's impact any amendment does not have The entity is required. interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are category in this assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. has the intention as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective changes in the carrying Any cash flows. future of estimated value the present at is measured financial asset or loss. in profit recognised are including impairment losses, amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to be sold in response an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income in other comprehensive recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit not recognized are impairment reversals investments other asset any have does not currently Holding Company The income. in other comprehensive recognized in this category. other than as provided or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard on Islamic Financial Accounting lease based as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss outside profit recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits relevant relevant significant e ect any have or to be relevant not to considered are 1, 2015 beginning on January financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS - Financial International to of annual improvements as a result standards following Amendments to - 1, January annual periods beginning on or after for (e ective Disclosures' instruments: IFRS 7 ‘Financial - The January 1, 2016). annual periods beginning on or after for benefits' (e ective 19 'Employee IAS and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges of minimum lease payments. value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was Company the Holding 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing which the Holding Company for products, and related of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved in Pakistan. as applicable Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the the SECP di er by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - 'Consolidated 27 IAS the current replaces standard This statements'. financial 'Separate (Revised) 27 IAS - or employees from contributions to applies amendment The benefits'. 'Employee 19 (Amendment) IAS - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by Company of the shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe
is evidence due or when other objective past are when they impairment for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets investments fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest using the e ective amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification financial liabilities include: Holding Company The method. All interest using the e ective cost amortised subsequently at measured are Financial liabilities that 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between is allocated payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets Taxation using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.12 Current and profit in the consolidated is recognized Taxation tax. and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, tax is provided Deferred but not in 2015 e ective are that and interpretations published standards to amendments Standards, b) the for mandatory are that and interpretations published standards to amendments standards, other new The not and have e ective not yet are that and interpretations published standards amendments to Standards, year the financial for not e ective are standards published and amendments to standards new following The Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to pipelines subsequent (CWIP) Capital work-in-progress (b) land machinery with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP and Measurement pumps hold and Tanks Dispensing lease Plant model (a) Carried using revaluation model (i.e. under revaluation measured subsequently and leased are both owned assets operating Following on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available in which an asset the month method from line on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit of property, on disposal Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The PREPARATION 1.1 OF Limited Lubricants (Private) Hascombe BASIS marketing Lubricant 2 2.1 of compliance Statement consolidation Accounting with the Approved in accordance prepared been have financial statements consolidated These 100% of Basis 2.2 company and its of Holding Company includes the financial statements financial statements consolidated The Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 segments as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions Operating share 4.18 per the chief to provided reporting with the internal in a manner consistent reported segments are Operating Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized
year in which they arise. arise. in which they year bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, a particular country. bonds in not corporate currency, bonds in that should currency in the relevant bonds government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The report'. financial the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. the Company's significant impact on any will have standard the that unlikely here. not been presented have and therefore, the Company to also not relevant and are e ective not yet customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss loss and profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; consolidated through profits unappropriated to account” Assets Fixed of Revaluation on “Surplus incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. 19, (IAS) Standard Accounting under International defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective including expectation of future events that are believed to be reasonable under the circumstances. be reasonable to believed are that events of future including expectation otherwise stated. unless presented, years all the applied to been consistently policies have These out below. in progress. capital work to capitalized are construction applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets policies and reported accounting of application the basis of making the of which form the results under the circumstances, reasonable be to believed are other sources. from apparent not readily are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment with significant risk of material and assumptions and estimates financial statements notes: included in the following period are Note - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income and other services Handling, storage - is rec income Rental - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS are that the published standards to amendments and interpretations of other standards, number are There accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized Such intangibles are if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization life useful The period of use. sheet date. for adjusted value fair at initially measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction financial liabilities is described below. and of financial assets Subsequent measurement value. A financial liability is transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that financial assets to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future estimated of the discounting through in use is ascertained Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other include cash and bank balances cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. as the case may income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership when significant risks and rewards recorded Sales are - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value statements. financial in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date a subsidiary is calculated of obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair - such to assigned value the to reference with is determined revalued are which assets on depreciation - from is transferred taxation net of deferred the year for depreciation incremental an amount equal to 4.14 Trade and other payables payables benefits other service and other Trade 4.14 and scheme Retirement gratuity of the value which is the fair cost carried at are and other amounts payable creditors Liabilities for 4.15 Unfunded fund of in respect policy had changed its accounting the Holding Company ended 2013, During the year cost provident borrowing Contributory and Borrowings The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings 4.1 Property, plant and equipment POLICIES equipment ACCOUNTING and SIGNIFICANT factors, and other experience based on historical and are evaluated continually and judgments are Estimates 4 plant Property, set are financial statements of these consolidated in the preparation policies applied 4.1 principal accounting The Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed operating as capitalized use are intended for available which are assets The 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The accounting of approved in the application management of judgments made by respect policies in Accounting and amortization - depreciation assets a) Fixed of stock-in-trade value Net realizable b) Provisions c) d) Taxation 4.2 Intangible assets assets Intangible 4.2 derecognition and amortization accumulated less cost subsequently carried at and cost at initially recorded are These and and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets instruments measurement the to proportion in charged is year the during intangible assets of addition and deletion on Amortization Financial initial 4.3 any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets Recognition, the a party to becomes when the Holding Company recognised and financial liabilities are Financial assets expire, the financial asset from flows the cash rights to when the contractual derecognised are Financial assets of financial assets and subsequent measurement Classification as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans 4.4 O setting setting O 4.4 Investments sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets 4.5 or held to under the held-for-trading do not fall that available-for-sale', 'as its investments classifies Group The Stock-in-trade in directly has been recognised that loss cumulative securities, the In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision 4.7 equivalents is whether there ascertain to date reporting each at assessed are assets non financial of amounts carrying The cash and Cash the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue line basis and the carrying on a line by been consolidated have and liabilities of subsidiary company assets The are companies the Group between gains on transactions unrealised and balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business and liabilities assumed acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application and relevant in 2015 e ective interpretations and published standards amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The
HASCOL Annual Report - 2015 90
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing of continuing of all types disclosure 7 requires IFRS the asset, derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to is prospective amendment The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required 2016). There are two amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. Company's significant impact on the any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where important, not the country is in that denominated are the liabilities that is the currency bonds is based on corporate high-quality corporate is a deep marketing of whether there assessment The Reporting Standards issued by IASB: by issued Standards Reporting January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account equity method to use the entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. on the Company's significant impact any amendment will have party, an entity that provides key management personnel services to the reporting entity or to the parent the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts entity (the ‘management entity’). Disclosure of the reporting financial statements. impact on the Company's any amendment does not have The entity is required. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment The of such contributions. defined benefit plans and clarifies the treatment parties to third arise and only in the period in which they service to linked are that contributions between distinguishes simplify the of the amendment is to objective than one period. The in more service to those linked example for service, employee of independent of the number of years are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's - January 1, annual periods beginning on or after for (e ective Disclosures' instruments: IFRS 7 ‘Financial - The January 1, 2016). annual periods beginning on or after for benefits' (e ective 19 'Employee IAS - Financial International to of annual improvements as a result standards following Amendments to relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are in this category assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. the intention has as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective changes in the carrying Any cash flows. future of estimated value present the at is measured financial asset or loss. in profit recognised are impairment losses, including amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to be sold in response an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income other comprehensive in recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit recognized not are impairment reversals investments other asset any have does not currently Company Holding The income. in other comprehensive recognized in this category. other than as provided or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss outside profit recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit Depreciation for Same basis and estimates useful life. its o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following 13, 2003: January dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange assets incurred during construction/ installation period are carried to CWIP. These expenditures are are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available are as and when these assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less revaluation of the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of of lower of the the basis on of lease, the inception at determined are amounts These liability. the related and are charges Financial payments. of minimum lease value and the present the leased properties of value the fair on the outstanding of charge rate a constant provide manner so as to period in a the accounting to allocated liability. on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing which the Holding Company for products, and related of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission Securities and Exchange the by issued 1984 and the directives Ordinance, with the the SECP di er by issued or directives 1984 Ordinance, of the Companies the requirements Where shall 1984 Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - as a related include, to has been amended standard The party disclosures'. (Amendment) 'Related 24 IAS - or employees from contributions to amendment applies benefits'. The 19 (Amendment) 'Employee IAS - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by Company of the shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe
not and have e ective not yet are that and interpretations published standards amendments to Standards, the for mandatory are that interpretations and published standards amendments to standards, other new The the financial year for not e ective are published standards amendments to and standards new following The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) is evidence due or when other objective past are impairment when they for considered are Receivables - held-for-trading or loss profit through value fair At either are that assets include financial - held-for-trading or loss profit through value fair at Financial assets fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets financial liabilities include: Holding Company The method. All interest using the e ective amortised cost subsequently at measured are Financial liabilities that investments HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest the e ective using amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal loss or in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification Taxation 4.12 Current and profit in the consolidated is recognized Taxation tax. and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, tax is provided Deferred using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between allocated is payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit on disposal of property, Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The - Tanks and pipelines pipelines land machinery and pumps hold and Tanks Dispensing lease Plant model Carried using revaluation (a) on - - - Building - fighting equipment and fire - Electrical, mechanical - Pump building Measurement subsequent to initial recognition recognition initial to subsequent specific with connection in All expenditure if any. losses, impairment accumulated less cost at is stated CWIP Measurement model (i.e. under revaluation subsequently measured and leased are both owned assets operating Following the carrying such that regularity with su cient valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed (CWIP) Capital work-in-progress (b) assets the recording by leases finance under acquired equipment and plant property, for accounts Group The 2 BASIS OF PREPARATION PREPARATION OF BASIS 2 2.1 of compliance Statement Accounting with the Approved in accordance been prepared have financial statements consolidated These company Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The 1.1 Limited Lubricants (Private) Hascombe Lubricant marketing consolidation 100% of Basis 2.2 and its of Holding Company includes the financial statements financial statements consolidated The 4.19 Earning per share share per Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.18 Operating segments segments Operating 4.18 the chief to provided reporting with the internal in a manner consistent reported segments are Operating distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized not yet e ective and are also not relevant to the Company and therefore, have not been presented here. here. not been presented have and therefore, the Company to also not relevant and are e ective not yet amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The report'. financial the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. the Company's significant impact on any will have standard the that unlikely bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, a particular country. bonds in not corporate currency, bonds in that should currency in the relevant bonds government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely
year in which they arise. arise. in which they year providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards
customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through consolidated consolidated through profits unappropriated to account” Assets Fixed of Revaluation on “Surplus incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss loss and profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; estimates are recognized in the period in which the estimates are revised, if the revision a ects only that only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment with significant risk of material and assumptions and estimates financial statements notes: included in the following period are Note otherwise stated. unless presented, years all the applied to been consistently policies have These out below. in progress. capital work to capitalized are construction applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets policies and reported accounting of application the basis of making the of which form the results under the circumstances, reasonable be to believed are other sources. from apparent not readily are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual under the circumstances. be reasonable to believed are that events of future including expectation post-retirement defined benefits plan as required under International Accounting Standard (IAS) 19, 19, (IAS) Standard Accounting under International defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. are that the published standards to amendments and interpretations of other standards, number are There - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS - is rec income Rental - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income other services and Handling, storage - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized Such intangibles are if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization life useful The period of use. sheet date. financial year beginning January 1, 2015 and are relevant to the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value statements. financial in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date a subsidiary is calculated of obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective • held-to-maturity (HTM) investments receivables investments and (HTM) recognition: upon initial categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that financial assets to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted contractual provisions of the financial instrument and are measured initially at fair value adjusted for for adjusted value fair at initially measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction financial liabilities is described below. and of financial assets Subsequent measurement value. A financial liability is transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised maturity. Unrealized surplus/deficit arising on revaluation of investment classified as 'available-for-sale' is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through in use is ascertained Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other include cash and bank balances cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. as the case may income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership when significant risks and rewards recorded Sales are - from is transferred taxation net of deferred the year for depreciation incremental an amount equal to - such to assigned value the to reference with is determined revalued are which assets on depreciation accounting of approved in the application management of judgments made by respect policies in Accounting and amortization - depreciation assets a) Fixed equipment and plant Property, 4.1 Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed operating as capitalized use are intended for available which are assets The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The POLICIES ACCOUNTING SIGNIFICANT 4 set are financial statements of these consolidated in the preparation policies applied principal accounting The 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The of stock-in-trade value Net realizable b) Provisions c) d) Taxation factors, and other experience based on historical and are evaluated continually and judgments are Estimates 4.16 Borrowings and borrowing cost cost borrowing and Borrowings 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings Contributory provident fund fund provident Contributory The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.15 Retirement and other service benefits benefits service other and scheme Retirement gratuity 4.15 Unfunded of in respect policy had changed its accounting the Holding Company ended 2013, During the year 4.14 Trade and other payables payables other and Trade 4.14 of the value which is the fair cost carried at are and other amounts payable creditors Liabilities for 4.3 Financial instruments instruments Financial 4.3 4.2 Intangible assets assets Intangible 4.2 and amortization accumulated less cost subsequently carried at and cost at initially recorded are These and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets the to proportion in charged is year the during intangible assets of addition and deletion on Amortization any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets
and relevant in 2015 e ective interpretations and published standards amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The line basis and the carrying on a line by been consolidated have and liabilities of subsidiary company assets The are companies the Group between gains on transactions unrealised and balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business and liabilities assumed acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans of financial assets and subsequent measurement Classification expire, the financial asset from flows the cash rights to when the contractual derecognised are Financial assets Recognition, initial measurement and derecognition derecognition and measurement initial Recognition, the a party to becomes when the Holding Company recognised and financial liabilities are Financial assets profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss Stock-in-trade in directly has been recognised that loss securities, the cumulative In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment 4.7 equivalents is whether there ascertain to date reporting each at assessed are assets financial non of amounts carrying The cash and Cash 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions 4.5 Investments Investments 4.5 or held to under the held-for-trading do not fall that 'as available-for-sale', its investments classifies Group The 4.4 O setting setting O 4.4 sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue
91 HASCOL Annual Report - 2015
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing all types of continuing of disclosure 7 requires IFRS asset, the derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to is prospective amendment The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to is retrospective. amendment 34. This IAS by required periods unless all interim for required January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account equity method to use the entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. on the Company's significant impact any amendment will have IASB: by issued Standards Reporting amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. Company's significant impact on the any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where important, not the country is in that denominated are the liabilities that is the currency bonds is based on corporate high-quality corporate is a deep marketing of whether there assessment The and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's amendment The of such contributions. defined benefit plans and clarifies the treatment parties to third arise and only in the period in which they service to linked are that contributions between distinguishes simplify the of the amendment is to objective The than one period. in more service to those linked example for service, employee of independent of the number of years are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts Disclosure entity (the ‘management entity’). of the reporting financial statements. impact on the Company's any amendment does not have The entity is required. and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of the lower on the basis of of lease, inception the at determined are amounts These liability. and the related are charges Financial payments. of minimum lease value and the present the leased properties of value the fair on the outstanding of charge rate a constant provide manner so as to period in a the accounting to allocated liability. are expenditures These CWIP. to carried are period installation construction/ during incurred assets use. intended for available are these when and as assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair losses). impairment accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated Depreciation for Same basis and estimates useful life. its o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. in note as disclosed the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following 13, 2003: January dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS - Financial International to of annual improvements as a result standards following Amendments to - 1, January annual periods beginning on or after for (e ective Disclosures' instruments: IFRS 7 ‘Financial - The January 1, 2016). annual periods beginning on or after for benefits' (e ective 19 'Employee IAS on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing which the Holding Company for products, and related of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission Securities and Exchange the by issued 1984 and the directives Ordinance, with the the SECP di er by issued or directives 1984 Ordinance, of the Companies the requirements Where shall 1984 Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS - or employees from contributions to amendment applies benefits'. The 19 (Amendment) 'Employee IAS - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are in this category assets of financial values in asset any have not currently do Holding Company The exists. market no active where technique valuation this category. the intention has as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective changes in the carrying Any cash flows. future of estimated value present the at is measured financial asset or loss. in profit recognised are impairment losses, including amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to be sold in response an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income other comprehensive in recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit recognized not are impairment reversals investments other asset any have does not currently Company Holding The income. in other comprehensive recognized in this category. other than as provided or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by issued 2 (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss outside profit recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by of the Company shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe
Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to pipelines subsequent (CWIP) Capital work-in-progress (b) land machinery specific with connection in All expenditure if any. losses, impairment accumulated less cost at is stated CWIP and Measurement pumps hold and Tanks Dispensing lease Plant model Carried using revaluation (a) (i.e. model revaluation under measured subsequently are and leased both owned assets operating Following on - - ing - Build - equipment fighting mechanical and fire - Electrical, - Pump building the carrying that such with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals incurred. as and when account and loss profit to charged are and normal repairs Maintenance currently. account and loss is included in profit plant and equipment on disposal of property, Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) the for mandatory are that interpretations and published standards amendments to standards, other new The not have and e ective not yet are that and interpretations published standards amendments to Standards, the financial year for not e ective are published standards and amendments to standards new following The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The PREPARATION 1.1 OF Limited Lubricants (Private) Hascombe BASIS Lubricant marketing 2 2.1 of compliance Statement consolidation Accounting with the Approved in accordance been prepared have financial statements consolidated These 100% of Basis 2.2 company and its of Holding Company includes the financial statements financial statements consolidated The Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The is evidence due or when other objective past are when they impairment for considered are Receivables - held-for-trading loss or profit through value fair At either are that assets include financial - held-for-trading or loss profit through value fair at Financial assets investments fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest using the e ective amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss profit in recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification financial liabilities include: Holding Company The method. All interest using the e ective amortised cost subsequently at measured are Financial liabilities that 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between allocated is payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets Taxation using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.12 Current and profit in the consolidated is recognized tax. Taxation and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, tax is provided Deferred distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 segments as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions Operating share 4.18 per the chief to provided reporting with the internal in a manner consistent reported segments are Operating Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, bonds in a particular country. not corporate currency, bonds in that should currency bonds in the relevant government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The financial report'. the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. significant impact on the Company's any will have the standard that unlikely here. not been presented have and therefore, the Company to also not relevant and are e ective not yet year in which they arise. arise. in which they year providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized Such intangibles are if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. is A financial liability transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised receivables investments and (HTM) recognition: upon initial categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are loss or in profit recognised are that financial assets to relating and expenses income All described below. impairment of trade for except items, or other financial income finance costs, within finance presented within other expenses. which is presented receivables the e ective using amortised cost at measured are these initial recognition, After market. in an active quoted applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets and reported policies of accounting application the basis of making the form of which the results under the circumstances, be reasonable to believed are other sources. from apparent not readily are that and liabilities of assets judgments about carrying values these estimates. from di er may results Actual only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment with significant risk of material and assumptions and estimates financial statements notes: included in the following period are Note including expectation of future events that are believed to be reasonable under the circumstances. be reasonable to believed are that events of future including expectation otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction - such to assigned the value to with reference is determined revalued which are on assets depreciation - from is transferred taxation of deferred net the year for depreciation incremental an amount equal to consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. 19, (IAS) Standard Accounting under International defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. the periods in which they in (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation benefit All other changes in the net defined (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS are that the published standards to amendments and interpretations number of other standards, are There - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income and other services Handling, storage - is rec income Rental value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle settle either to and also intends the transactions o -set right to has a legally enforceable Company the Holding liability simultaneously. and settle the the asset realize basis or to on a net is as 'available-for-sale' classified investment of arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate best based on management's stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value estimated is the value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication If any of impairment. indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through is ascertained in use Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss determined, been have would the carrying amount that best and other include cash and bank balances and cash equivalents cash of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to be required will of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. may as the case income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership when significant risks and rewards recorded Sales are - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail 4.2 Intangible assets assets Intangible 4.2 derecognition and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets instruments measurement the to proportion in charged is year the during intangible assets of and deletion addition on Amortization Financial initial 4.3 any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets Recognition, the a party to becomes the Holding Company when recognised and financial liabilities are Financial assets expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets of financial assets and subsequent measurement Classification as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least at impairment for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The accounting of approved management in the application of judgments made by policies in respect Accounting and amortization - depreciation assets a) Fixed of stock-in-trade value realizable Net b) Provisions c) d) Taxation 4.1 Property, plant and equipment POLICIES equipment ACCOUNTING and SIGNIFICANT and other factors, experience based on historical and are evaluated continually and judgments are Estimates 4 plant Property, set are financial statements of these consolidated policies applied in the preparation 4.1 principal accounting The Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed as operating capitalized use are intended for available are which assets The 4.14 Trade and other payables payables benefits other service and other Trade 4.14 and scheme Retirement gratuity of the value which is the fair cost carried at are and other amounts payable creditors Liabilities for 4.15 Unfunded fund of in respect policy had changed its accounting the Holding Company ended 2013, During the year cost provident borrowing Contributory and Borrowings The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings line basis and the carrying on a line by been consolidated have company and liabilities of subsidiary assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business assumed and liabilities acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application and relevant in 2015 e ective and interpretations published standards amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The 4.4 O setting setting O 4.4 Investments sheet if balance the consolidated in is reported o set and the net amount are and liabilities assets Financial 4.5 to or held held-for-trading under the do not fall that 'as available-for-sale', its investments classifies Group The Stock-in-trade in directly has been recognised that loss securities, the cumulative of impairment of available-for-sale In case assets 4.6 financial (NRV). value and net realizable cost of the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss 4.8 Provisions the purposes of the For cost. at sheet balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present the Holding Company when recognized are Provisions recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that extent the to is recognized Revenue
HASCOL Annual Report - 2015 92
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing of continuing of all types disclosure 7 requires IFRS the asset, derecognize to the transferor allow guidance provides standard The assets. in the transferred have might still the entity that involvement apply with an option to amendment is prospective The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required 2016). There are two amendments: amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required disclosure the additional – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have standard the that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency bonds is based on corporate high-quality corporate is a deep marketing whether there of assessment The Reporting Standards issued by IASB: by issued Standards Reporting January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have party, an entity that provides key management personnel services to the reporting entity or to the parent the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts entity (the ‘management entity’). Disclosure of the reporting financial statements. impact on the Company's any does not have amendment The entity is required. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment The of such contributions. benefit plans and clarifies the treatment defined parties to third arise and they only in the period in which service to linked are that contributions between distinguishes simplify the amendment is to of the objective than one period. The more in service to those linked example for service, of employee of years independent of the number are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the adopted has the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated SRO 45(1)/2003 (SECP) of Pakistan’s Commission Securities and Exchange and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges of minimum lease payments. value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). annual periods beginning on or after for benefits' (e ective 19 'Employee IAS - Financial International to of annual improvements as a result standards following Amendments to relevant relevant significant e ect any have or to relevant be not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - or after annual periods beginning on for (e ective financial statements' (Amendment) 'Separate 27 IAS on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing Company which the Holding for products, related and of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the di er the SECP by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS - or employees from contributions amendment applies to benefits'. The 19 (Amendment) 'Employee IAS - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss outside profit recognized items to it relates that the extent to except account loss recognized which case the tax amounts are in in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates credits tax account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan term. the lease line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted Discounting impairment. for provision less method, interest instruments. of financial this category into fall balances and bank cash Group's The immaterial. default. will a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that held-for-trading as classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are category in this assets of financial values in asset any have do not currently Company Holding The exists. market no active where technique valuation this category. has the intention as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Company Holding The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective the carrying changes in Any cash flows. future of estimated value the present at is measured financial asset or loss. in profit recognised are including impairment losses, amount of the investment, primarily those investments are These assets. of financial of the other categories inclusion in any qualify for the need for to be sold in response of time or may an undefined period for be held to intended are that liquidity. are financial assets All other AFS or loss. in profit recognized are Impairment charges reliably. estimated within reported and income other comprehensive in recognized are Gains losses and value. fair at measured and foreign losses impairment and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to reserve the equity from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit not recognized are impairment reversals investments asset other any have does not currently Holding Company The income. in other comprehensive recognized in this category. other than as provided or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by Company of the shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average the weighted and shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe
the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account loss and equipment is included in profit plant and on disposal of property, Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The - Tanks and pipelines pipelines (CWIP) Capital work-in-progress (b) land machinery and pumps hold and Tanks Dispensing lease Plant on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to subsequent with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP Measurement model (a) Carried using revaluation model (i.e. under revaluation subsequently measured and leased are both owned assets operating Following the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are above those mentioned other than assets Fixed not and have e ective not yet are that and interpretations published standards amendments to Standards, the for mandatory are that and interpretations published standards amendments to standards, other new The the financial year for not e ective are published standards and amendments to standards new following The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) 2 BASIS OF PREPARATION PREPARATION OF BASIS 2 2.1 of compliance Statement Accounting with the Approved in accordance been prepared have financial statements consolidated These company Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The 1.1 Limited Lubricants (Private) Hascombe Lubricant marketing consolidation 100% of Basis 2.2 and its of Holding Company includes the financial statements financial statements consolidated The Taxation 4.12 Current and profit in the consolidated is recognized tax. Taxation and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing balance using the for, tax is provided Deferred using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between is allocated payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets is evidence other objective due or when past are they impairment when for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets fair The or loss. in profit recognised or losses with gains value fair at measured are in this category Assets financial liabilities include: Holding Company The method. All interest using the e ective amortised cost at subsequently measured are Financial liabilities that investments HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest using the e ective cost amortised subsequently at measured are investments HTM AFS do not or this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification 4.19 Earning per share share per Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.18 Operating segments segments Operating 4.18 the chief to provided reporting with the internal in a manner consistent reported segments are Operating distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized
“Surplus on Revaluation of Fixed Assets account” to unappropriated profits through consolidated consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account;
year in which they arise. arise. in which they year not yet e ective and are also not relevant to the Company and therefore, have not been presented here. here. not been presented have and therefore, the Company to also not relevant and are e ective not yet amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The financial report'. the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. significant impact on the Company's any will have the standard that unlikely bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, bonds in a particular country. not corporate currency, bonds in that should currency bonds in the relevant government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely
customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards • held-to-maturity (HTM) investments receivables investments and (HTM) recognition: upon initial categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are loss or in profit recognised are that financial assets to relating and expenses income All described below. impairment of trade for except items, or other financial income finance costs, within finance presented within other expenses. which is presented receivables the e ective using amortised cost at measured are these initial recognition, After market. in an active quoted contractual provisions of the financial instrument and are measured initially at fair value adjusted for for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. is A financial liability transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized Such intangibles are if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. post-retirement defined benefits plan as required under International Accounting Standard (IAS) 19, 19, (IAS) Standard Accounting under International defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. the periods in which they in (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation benefit All other changes in the net defined (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. estimates are recognized in the period in which the estimates are revised, if the revision a ects only that only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment with significant risk of material and assumptions and estimates financial statements notes: included in the following period are Note otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets and reported policies of accounting application the basis of making the form of which the results under the circumstances, be reasonable to believed are other sources. from apparent not readily are that and liabilities of assets judgments about carrying values these estimates. from di er may results Actual under the circumstances. be reasonable to believed are that events of future including expectation - from is transferred taxation of deferred net the year for depreciation incremental an amount equal to - such to assigned the value to with reference is determined revalued which are on assets depreciation - is rec income Rental - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income and other services Handling, storage - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss are that the published standards to amendments and interpretations number of other standards, are There - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. may as the case income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership when significant risks and rewards recorded Sales are financial year beginning January 1, 2015 and are relevant to the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective any indication of impairment. If any such indication exists then the asset's recoverable amount is estimated. An amount is estimated. recoverable then the asset's exists such indication If any of impairment. indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through is ascertained in use Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss determined, been have would the carrying amount that best and other include cash and bank balances and cash equivalents cash of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to be required will of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle settle either to and also intends the transactions o -set right to has a legally enforceable Company the Holding liability simultaneously. and settle the the asset realize basis or to on a net is as 'available-for-sale' classified investment of arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate best based on management's stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value estimated is the value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least at impairment for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans of financial assets and subsequent measurement Classification expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets Recognition, initial measurement and derecognition derecognition and instruments measurement Financial initial 4.3 Recognition, the a party to becomes the Holding Company when recognised and financial liabilities are Financial assets 4.2 Intangible assets assets Intangible 4.2 and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets the to proportion in charged is year the during intangible assets of and deletion addition on Amortization any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets 4.16 Borrowings and borrowing cost cost borrowing and Borrowings 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings Contributory provident fund fund provident Contributory The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.15 Retirement and other service benefits benefits service other and scheme Retirement gratuity 4.15 Unfunded of in respect policy had changed its accounting the Holding Company ended 2013, During the year 4.14 Trade and other payables payables other and Trade 4.14 of the value which is the fair cost carried at are and other amounts payable creditors Liabilities for accounting of approved management in the application of judgments made by policies in respect Accounting and amortization - depreciation assets a) Fixed equipment and plant Property, 4.1 Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed as operating capitalized use are intended for available are which assets The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The POLICIES ACCOUNTING SIGNIFICANT 4 set are financial statements of these consolidated policies applied in the preparation principal accounting The 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The of stock-in-trade value realizable Net b) Provisions c) d) Taxation and other factors, experience based on historical and are evaluated continually and judgments are Estimates recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue
and relevant in 2015 e ective and interpretations published standards amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The line basis and the carrying on a line by been consolidated have company and liabilities of subsidiary assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business assumed and liabilities acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss 4.7 Impairment of non financial assets assets financial non of Impairment 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions 4.5 Investments Investments 4.5 to or held held-for-trading under the do not fall that 'as available-for-sale', its investments classifies Group The profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision Stock-in-trade in directly has been recognised that loss securities, the cumulative of impairment of available-for-sale In case 4.6 (NRV). value and net realizable cost of the lower at is valued Stock-in-trade is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit basis. average weighted on moving is determined in trade of stock cost The 4.4 O setting setting O 4.4 sheet if balance the consolidated in is reported o set and the net amount are and liabilities assets Financial
Annual Report - 2015
HASCOL 93
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing all types of continuing of disclosure 7 requires IFRS asset, the derecognize to the transferor allow guidance provides standard The assets. in the transferred have might still the entity that involvement apply with an option to amendment is prospective The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have IASB: by issued Standards Reporting amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required disclosure the additional – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have standard the that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency bonds is based on corporate high-quality corporate is a deep marketing whether there of assessment The and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's amendment The of such contributions. benefit plans and clarifies the treatment defined parties to third arise and they only in the period in which service to linked are that contributions between distinguishes simplify the of the amendment is to objective than one period. The in more service to those linked example for service, of employee of years independent of the number are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts Disclosure entity (the ‘management entity’). of the reporting financial statements. impact on the Company's any does not have amendment The entity is required. interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted Discounting impairment. for provision less method, interest instruments. of financial this category into fall bank balances cash and Group's The immaterial. will default. counterparty a specific that received or profit through value fair at designated and are conditions certain meet or that as held-for-trading classified recognition. upon initial - held-for-trading loss a using or transactions market active to reference by determined are category in this assets financial of values in asset any have not currently do Company Holding The exists. market active no where technique valuation category. this intention has the Company Holding if the as HTM classified are Investments and receivables. than loans other this category. in asset any have not currently do Company Holding The maturity. until hold them ability to and the ratings, credit external to reference by determined is impaired, investment the that evidence objective carrying changes in the Any cash flows. future of estimated value the present at is measured asset financial or loss. in profit recognised are impairment losses, including the investment, amount of investments primarily those are These of financial assets. of the other categories inclusion in any qualify for need for the to be sold in response undefined period of time or may an be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are charges Impairment reliably. estimated within reported and income in other comprehensive recognized are Gains losses and value. fair at measured and foreign impairment losses dividend income, and interest for except within equity, the AFS reserve the asset When loss. or profit in consolidated recognized which are monetary assets, on di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest e ective using the calculated Interest or loss. profit to reserve the equity from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit not recognized are impairment reversals investments other asset any have does not currently Holding Company The income. in other comprehensive recognized in this category. other than as provided and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges of minimum lease payments. value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the adopted has the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated SRO 45(1)/2003 (SECP) of Pakistan’s Commission Securities and Exchange relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - or after annual periods beginning on for (e ective financial statements' (Amendment) 'Separate 27 IAS - Financial International to of annual improvements as a result standards following Amendments to - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). annual periods beginning on or after for benefits' (e ective 19 'Employee IAS interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan term. the lease line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss outside profit recognized items to it relates that the extent to except account loss recognized which case the tax amounts are in in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates credits tax account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing Company which the Holding for products, related and of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the di er the SECP by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS - or employees from contributions amendment applies to benefits'. The 19 (Amendment) 'Employee IAS - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by Company of the shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe is evidence other objective due or when past are they impairment when for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at assets Financial investments fair The loss. or in profit recognised or losses with gains value fair at measured are category in this Assets HTM assets maturity fixed and payments determinable or fixed with assets financial non-derivative are investments HTM financial is If there method. interest using the e ective cost amortised at subsequently measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are assets AFS financial be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss in profit recognized AFS debt securities are for impairment losses of Reversals of financial liabilities and subsequent measurement Classification
Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to pipelines subsequent (CWIP) Capital work-in-progress (b) land machinery with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP and Measurement pumps hold and Tanks Dispensing lease Plant model (a) Carried using revaluation model (i.e. under revaluation subsequently measured and leased are both owned assets operating Following on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are above those mentioned other than assets Fixed the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account loss and equipment is included in profit plant and on disposal of property, Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) the for mandatory are that and interpretations published standards amendments to standards, other new The not and have e ective not yet are that and interpretations published standards amendments to Standards, the financial year for not e ective are published standards and amendments to standards new following The financial liabilities include: Holding Company The method. All interest using the e ective amortised cost at subsequently measured are Financial liabilities that leases Lease Finance 4.10 4.10.1 are of ownership and rewards all the risks has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between is allocated payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets Taxation using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.12 Current and profit in the consolidated is recognized tax. Taxation and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing balance using the for, tax is provided Deferred 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The PREPARATION 1.1 OF Limited Lubricants (Private) Hascombe BASIS Lubricant marketing 2 2.1 of compliance Statement consolidation Accounting with the Approved in accordance been prepared have financial statements consolidated These 100% of Basis 2.2 company and its of Holding Company includes the financial statements financial statements consolidated The Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 segments as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions Operating share 4.18 per the chief to provided reporting with the internal in a manner consistent reported segments are Operating Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, bonds in a particular country. not corporate currency, bonds in that should currency bonds in the relevant government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The financial report'. the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. significant impact on the Company's any will have the standard that unlikely here. not been presented have and therefore, the Company to also not relevant and are e ective not yet year in which they arise. arise. in which they year providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards customers which coincides with dispatch of goods to customers. customers. to of goods with dispatch coincides which customers accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized intangibles are Such if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. A financial liability is transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that assets financial to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets policies and reported of accounting application the basis of making the of which form the results under the circumstances, be reasonable to believed are other sources. from apparent not readily are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment significant risk of material with and assumptions and estimates financial statements notes: included in the following period are Note under the circumstances. be reasonable to believed are that events of future including expectation otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction - such to assigned the value to with reference is determined revalued which are on assets depreciation - from is transferred taxation of deferred net the year for depreciation incremental an amount equal to consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. 19, (IAS) Standard Accounting International under defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through recycling with no subsequent income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the of the borrowings the period over account and loss profit in the consolidated is recognized value e ective - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS are that the published standards to amendments and interpretations number of other standards, are There - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - basis. on accrual is recognized income deposits and other services on Return - been rendered. have when the services recognized are income and other services Handling, storage - is rec income Rental the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through is ascertained in use Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there amount does not exceed carrying the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other and bank balances include cash cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset current of items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair based on the tax rates that have been enacted. The Group takes into account the current income tax law and law tax income current the account into takes Group The enacted. been have that tax rates on the based authorities. the taxation by taken decisions which case it is in income, other comprehensive of statement or consolidated equity to or charged credited be. the case may as income comprehensive of other in equity or statement included consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership risks and rewards when significant recorded Sales are - basis. on an accrual recognized is fee) (including license and other revenue income Non-fuel retail 4.2 Intangible assets assets Intangible 4.2 derecognition and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets instruments measurement the to proportion in charged is year the during intangible assets of and deletion addition on Amortization Financial initial 4.3 any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets Recognition, the a party to becomes when the Holding Company recognised and financial liabilities are Financial assets expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets of financial assets and subsequent measurement Classification as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans of stock-in-trade value Net realizable b) Provisions c) d) Taxation 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The accounting of approved management in the application of judgments made by policies in respect Accounting POLICIES and amortization - depreciation assets a) Fixed equipment ACCOUNTING and SIGNIFICANT and other factors, experience based on historical and are evaluated continually and judgments are Estimates 4 plant Property, set are statements financial of these consolidated policies applied in the preparation 4.1 principal accounting The Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed as operating capitalized use are intended for available which are assets The 4.14 Trade and other payables payables benefits other service and other Trade 4.14 and scheme Retirement gratuity of the value fair which is the cost carried at are and other amounts payable creditors Liabilities for 4.15 Unfunded fund of in respect policy had changed its accounting the Holding Company ended 2013, During the year cost provident borrowing Contributory and Borrowings The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings 4.4 O setting setting O 4.4 Investments sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets 4.5 or held to under the held-for-trading do not fall that available-for-sale', 'as its investments classifies Group The Stock-in-trade in directly has been recognised that loss securities, the cumulative In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash the recoverable determine used to in the estimates has been a change if there is reversed loss An impairment 4.8 Provisions the the purposes of For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive a present has when the Holding Company recognized are Provisions line basis and the carrying on a line by been consolidated have company and liabilities of subsidiary assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business assumed and liabilities acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application and relevant in 2015 e ective and interpretations published standards amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The recognition reverse, the di erences the period when apply to to expected are that the rates at tax is calculated Deferred Revenue case of items in the except account, loss and profit consolidated in the or credited is charged tax Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue
HASCOL Annual Report - 2015 94
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing of continuing of all types disclosure 7 requires IFRS the asset, derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to amendment is prospective The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required 2016). There are two amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency is based on corporate bonds high-quality corporate is a deep marketing of whether there assessment The Reporting Standards issued by IASB: by issued Standards Reporting January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have party, an entity that provides key management personnel services to the reporting entity or to the parent the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts entity (the ‘management entity’). Disclosure of the reporting financial statements. impact on the Company's any amendment does not have The entity is required. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment amendment The of such contributions. defined benefit plans and clarifies the treatment parties to third arise and only in the period in which they service to linked are that contributions between distinguishes simplify the of the amendment is to objective than one period. The in more service to those linked example for service, of employee independent of the number of years are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are category in this assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. has the intention as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective in the carrying changes Any cash flows. future of estimated value the present at is measured financial asset or loss. in profit recognised are including impairment losses, amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to sold in response be an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income in other comprehensive recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit not recognized are impairment reversals investments asset other any have does not currently Holding Company The income. in other comprehensive recognized in this category. other than as provided Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges lease payments. of minimum value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). on or after annual periods beginning for benefits' (e ective 19 'Employee IAS - Financial International to of annual improvements as a result standards following Amendments to relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are under finance obtained leases. Assets as finance classified 4.1. in note stated timing of the payment. the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over a straight-line on statement income the to charged are lessor) the by 2 issued (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies foreign in Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss profit outside recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance prior years. of in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing Company which the Holding for products, related and of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the di er the SECP by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS - or employees from contributions amendment applies to benefits'. The 19 (Amendment) 'Employee IAS - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by of the Company shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe is evidence due or when other objective past are when they impairment for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets investments HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest using the e ective amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification
the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available in which an asset the month method from line on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit of property, on disposal Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The - Tanks and pipelines pipelines (CWIP) Capital work-in-progress (b) land machinery and pumps hold and Tanks Dispensing lease Plant on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to subsequent with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP Measurement model (a) Carried using revaluation model (i.e. under revaluation measured subsequently and leased are both owned assets operating Following the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed not and have e ective not yet are that and interpretations published standards amendments to Standards, the for mandatory are that and interpretations published standards amendments to standards, other new The the financial year for not e ective are published standards and amendments to standards new following The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) using the translated are currency in a foreign cost of historical in terms measured are that items Non-monetary leases upon the depending and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between is allocated payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards risks the of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies liabilities in foreign and Monetary assets Taxation 4.12 Current and profit in the consolidated is recognized tax. Taxation and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, tax is provided Deferred 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially Company the Holding of which in terms Leases
financial liabilities include: Holding Company The method. All interest using the e ective amortised cost subsequently at measured are liabilities that Financial 2 BASIS OF PREPARATION PREPARATION OF BASIS 2 2.1 of compliance Statement Accounting with the Approved in accordance been prepared have financial statements consolidated These company Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The Subsidiary Company Nature of business Holding business of Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The 1.1 Limited Lubricants (Private) Hascombe Lubricant marketing consolidation 100% of Basis 2.2 and its of Holding Company includes the financial statements financial statements consolidated The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Limited Petroleum - Hascol Limited Lubricants (Private) - Hascombe Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol 4.19 Earning per share share per Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.18 Operating segments segments Operating 4.18 the chief to provided reporting with the internal in a manner consistent reported segments are Operating distribution defer to right has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized
“Surplus on Revaluation of Fixed Assets account” to unappropriated profits through consolidated consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken the year for charge and depreciation on revaluation assets and account; not yet e ective and are also not relevant to the Company and therefore, have not been presented here. here. not been presented have and therefore, the Company to also not relevant and are e ective not yet amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The financial report'. the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. significant impact on the Company's any will have the standard that unlikely bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, bonds in a particular country. not corporate currency, bonds in that should currency bonds in the relevant government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely
year in which they arise. arise. in which they year providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards
customers which coincides with dispatch of goods to customers. customers. to of goods with dispatch coincides which customers • held-to-maturity (HTM) investments receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • (AFS) available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that assets financial to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted contractual provisions of the financial instrument and are measured initially at fair value adjusted for for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. A financial liability is transferred. are all the risks and rewards and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized intangibles are Such if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. estimates are recognized in the period in which the estimates are revised, if the revision a ects only that only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment significant risk of material with and assumptions and estimates financial statements notes: included in the following period are Note otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets policies and reported of accounting application the basis of making the of which form the results under the circumstances, be reasonable to believed are other sources. from apparent not readily are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual under the circumstances. be reasonable to believed are that events of future including expectation - from is transferred taxation of deferred net the year for depreciation incremental an amount equal to - such to assigned the value to with reference is determined revalued which are on assets depreciation consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. are that the published standards to amendments and interpretations number of other standards, are There - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS - is rec income Rental - basis. on accrual is recognized income deposits and other services on Return - been rendered. have when the services recognized are income and other services Handling, storage - the dividend is established. receive right to when the Holding Company's is recognized Dividend income - in the account and loss sale is included in profit for as available classified on sale of investment Gain or loss maturity. Unrealized surplus/deficit arising on revaluation of investment classified as 'available-for-sale' is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future of the estimated discounting through is ascertained in use Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there amount does not exceed carrying the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other and bank balances include cash cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset current of items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to financial year beginning January 1, 2015 and are relevant to the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered also eliminated are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective e ective interest method. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the of the borrowings the period over account and loss profit in the consolidated is recognized value e ective post-retirement defined benefits plan as required under International Accounting Standard (IAS) 19, 19, (IAS) Standard Accounting International under defined benefits plan as required post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through recycling with no subsequent income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well the Holding Company the fund is made by to contribution basic salary. - basis. on an accrual recognized is fee) (including license and other revenue income Non-fuel retail based on the tax rates that have been enacted. The Group takes into account the current income tax law and law tax income current the account into takes Group The enacted. been have that tax rates on the based authorities. the taxation by taken decisions which case it is in income, other comprehensive of statement or consolidated equity to or charged credited be. the case may as income comprehensive of other in equity or statement included consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: on the following or receivable received - the to passed of the goods have of ownership risks and rewards when significant recorded Sales are as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans of financial assets and subsequent measurement Classification expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets Recognition, initial measurement and derecognition derecognition and instruments measurement Financial initial 4.3 Recognition, the a party to becomes when the Holding Company recognised and financial liabilities are Financial assets 4.2 Intangible assets assets Intangible 4.2 and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets the to proportion in charged is year the during intangible assets of and deletion addition on Amortization any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets accounting of approved management in the application of judgments made by policies in respect Accounting and amortization - depreciation assets a) Fixed equipment and plant Property, 4.1 Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed as operating capitalized use are intended for available which are assets The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The POLICIES ACCOUNTING SIGNIFICANT 4 set are statements financial of these consolidated policies applied in the preparation principal accounting The 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The of stock-in-trade value Net realizable b) Provisions c) d) Taxation and other factors, experience based on historical and are evaluated continually and judgments are Estimates 4.14 Trade and other payables payables other and Trade 4.14 of the value fair which is the cost carried at are and other amounts payable creditors Liabilities for profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision the recoverable determine used to in the estimates has been a change if there is reversed loss An impairment Stock-in-trade in directly has been recognised that loss securities, the cumulative In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash 4.8 Provisions the the purposes of For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive a present has when the Holding Company recognized are Provisions 4.5 Investments Investments 4.5 or held to under the held-for-trading do not fall that available-for-sale', 'as its investments classifies Group The 4.4 O setting setting O 4.4 sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets
and relevant in 2015 e ective and interpretations published standards amendments to a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The line basis and the carrying on a line by been consolidated have company and liabilities of subsidiary assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business assumed and liabilities acquired identifiable assets recognises Group The as the It is calculated of identifiable intangible assets. recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost under the historical been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application
4.16 Borrowings and borrowing cost cost borrowing and Borrowings 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings Unfunded gratuity scheme scheme gratuity Unfunded fund of in respect policy had changed its accounting the Holding Company ended 2013, During the year provident Contributory The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.15 Retirement and other service benefits benefits service other and Retirement 4.15 recognition Revenue case of items in the except account, loss and profit consolidated in the or credited is charged tax Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue reverse, the di erences the period when apply to to expected are that the rates at tax is calculated Deferred
Annual Report - 2015
HASCOL 95
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing all types of continuing of disclosure 7 requires IFRS asset, the derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to amendment is prospective The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have IASB: by issued Standards Reporting amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency is based on corporate bonds high-quality corporate is a deep marketing of whether there assessment The and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's amendment The of such contributions. defined benefit plans and clarifies the treatment parties to third arise and only in the period in which they service to linked are that contributions between distinguishes simplify the of the amendment is to objective than one period. The in more service to those linked example for service, of employee independent of the number of years are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts Disclosure entity (the ‘management entity’). of the reporting financial statements. impact on the Company's any amendment does not have The entity is required. interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are category in this assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. has the intention as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective in the carrying changes Any cash flows. future of estimated value the present at is measured financial asset or loss. in profit recognised are including impairment losses, amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to sold in response be an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income in other comprehensive recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair subsequent increase and any loss in profit not recognized are impairment reversals investments asset other any have does not currently Holding Company The income. in other comprehensive recognized in this category. other than as provided and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges lease payments. of minimum value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS - Financial International to improvements of annual as a result standards following Amendments to - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). on or after annual periods beginning for benefits' (e ective 19 'Employee IAS interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy policy with accordance in for accounted are lease finance under obtained Assets leases. as finance classified 4.1. in note stated the payment. timing of the lease term. over income to is charged element of the rental interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over a straight-line on statement income the to charged are lessor) the by 2 issued (IFAS) Standard Accounting lease based on Islamic Financial as operating treated and are of Commission Securities and Exchange and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies foreign in Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss profit outside recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance prior years. of in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing Company which the Holding for products, related and of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the di er the SECP by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS - or employees from contributions amendment applies to benefits'. The 19 (Amendment) 'Employee IAS - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance months after twelve least at settlement of the liability for charged are costs All other borrowing complete. use or sale are its intended for the qualifying assets prepare as and when incurred. account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared in which the dividends are and resources allocating for who is responsible decision-maker, chief operating The decision-maker. operating strategic makes segments, has been identified as management that of the operating performance assessing segment as the has a single reportable the Holding Company that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by of the Company shareholders ordinary to attributable or loss dividing the profit by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares of ordinary number average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe is evidence due or when other objective past are when they impairment for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets investments fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest using the e ective amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal or loss in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification
Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to pipelines subsequent (CWIP) Capital work-in-progress (b) land machinery with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP and Measurement pumps hold and Tanks Dispensing lease Plant model (a) Carried using revaluation model (i.e. under revaluation measured subsequently and leased are both owned assets operating Following on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available in which an asset the month method from line on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit of property, on disposal Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) the for mandatory are that and interpretations published standards amendments to standards, other new The not and have e ective not yet are that and interpretations published standards amendments to Standards, the financial year for not e ective are published standards and amendments to standards new following The financial liabilities include: Holding Company The method. All interest using the e ective amortised cost subsequently at measured are liabilities that Financial 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially Company the Holding of which in terms Leases leases upon the depending term and long as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between allocated is payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement Ijarah obtained under which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies liabilities in foreign and Monetary assets Taxation using the translated are currency in a foreign cost of historical in terms measured are that items Non-monetary 4.12 Current and profit in the consolidated is recognized tax. Taxation and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, tax is provided Deferred 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The PREPARATION 1.1 OF Limited Lubricants (Private) Hascombe BASIS Lubricant marketing 2 2.1 of compliance Statement consolidation Accounting with the Approved in accordance been prepared have financial statements consolidated These 100% of Basis 2.2 company and its of Holding Company includes the financial statements financial statements consolidated The Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The distribution defer right to has an unconditional the Holding Company liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 segments as a liability in the recognised are shareholders the Holding Company’s to Final dividend distributions Operating share 4.18 per the chief to provided reporting with the internal in a manner consistent reported segments are Operating Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The 4.6 4.9 4.12 4.1 & 4.2 4.1
ognized on an accrual basis. on an accrual ognized assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken year the for charge and depreciation on revaluation assets and account; consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation year in which they arise. arise. they in which year bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, bonds in a particular country. not corporate currency, bonds in that should currency bonds in the relevant government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The financial report'. the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. significant impact on the Company's any will have the standard that unlikely here. not been presented have and therefore, the Company to also not relevant and are e ective not yet customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized Such intangibles are if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. A financial liability is transferred. are and rewards all the risks and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • FS) (A available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that financial assets to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. 19, (IAS) Standard Accounting under International benefits plan as required defined post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well Company the Holding the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective including expectation of future events that are believed to be reasonable under the circumstances. be reasonable to believed are that events of future including expectation otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets policies and reported of accounting application the basis of making the of which form the results under the circumstances, be reasonable to believed are other sources. from apparent not readily are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment significant risk of material with and assumptions and estimates financial statements notes: included in the following period are Note - such to assigned the value to with reference is determined revalued which are on assets depreciation - from is transferred taxation net of deferred the year for depreciation incremental an amount equal to - in the account and loss in profit sale is included for as available classified on sale of investment Gain or loss - the dividend is established. receive right to the Holding Company's when is recognized Dividend income - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income and other services Handling, storage - is rec income Rental - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS are that the published standards to amendments and interpretations number of other standards, are There the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future estimated of the discounting through in use is ascertained Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other include cash and bank balances cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. may as the case income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: the following on or receivable received - the to passed have of the goods of ownership when significant risks and rewards recorded Sales are - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered eliminated also are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair 4.2 Intangible assets assets Intangible 4.2 derecognition and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets instruments measurement the to proportion in charged is year the during intangible assets of and deletion addition on Amortization Financial initial 4.3 any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets Recognition, the to a party becomes when the Holding Company recognised and financial liabilities are Financial assets expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets of financial assets and subsequent measurement Classification as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans 4.14 Trade and other payables payables benefits other service and other Trade 4.14 and scheme Retirement gratuity the of value which is the fair cost carried at are and other amounts payable creditors Liabilities for 4.15 Unfunded fund of in respect policy had changed its accounting the Holding Company ended 2013, During the year cost provident borrowing Contributory and Borrowings The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings 4.1 Property, plant and equipment POLICIES equipment ACCOUNTING and SIGNIFICANT and other factors, experience based on historical and are evaluated continually and judgments are Estimates 4 plant Property, set are statements financial of these consolidated policies applied in the preparation 4.1 principal accounting The Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed as operating capitalized use are intended for available which are assets The 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The accounting of approved management in the application of judgments made by policies in respect Accounting and amortization - depreciation assets a) Fixed of stock-in-trade value Net realizable b) Provisions c) d) Taxation 4.4 O setting setting O 4.4 Investments sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets 4.5 or held to under the held-for-trading do not fall that 'as available-for-sale', its investments classifies Group The Stock-in-trade in directly has been recognised that loss cumulative securities, the In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue line basis and the carrying on a line by been consolidated have and liabilities of subsidiary company assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business and liabilities assumed acquired identifiable assets recognises Group The as the It is calculated intangible assets. of identifiable recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost the historical under been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application and relevant in 2015 e ective and interpretations published standards to amendments a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The
HASCOL Annual Report - 2015 96 2014 Rupees in '000 2015 6,277,928 3,290,784 5.1 5.1 4,220,584 1,732,642 5.5 2,057,344 1,558,142 Note
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing of continuing of all types disclosure 7 requires IFRS the asset, derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to amendment is prospective The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required 2016). There are two amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency is based on corporate bonds high-quality corporate is a deep marketing of whether there assessment The Reporting Standards issued by IASB: by issued Standards Reporting January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have party, an entity that provides key management personnel services to the reporting entity or to the parent the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts entity (the ‘management entity’). Disclosure of the reporting financial statements. impact on the Company's any amendment does not have The entity is required. third parties to defined benefit plans and clarifies the treatment of such contributions. The amendment amendment The of such contributions. defined benefit plans and clarifies the treatment parties to third arise and only in the period in which they service to linked are that contributions between distinguishes simplify the of the amendment is to objective than one period. The in more service to those linked example for service, of employee independent of the number of years are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are category in this assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. the intention has as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective changes in the carrying Any cash flows. future of estimated value present the at is measured financial asset or loss. in profit recognised are impairment losses, including amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to be sold in response an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income in other comprehensive recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair increase subsequent and any loss in profit recognized not are impairment reversals investments other asset any have does not currently Company Holding The income. in other comprehensive recognized in this category. other than as provided Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges of minimum lease payments. value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). on or after annual periods beginning for benefits' (e ective 19 'Employee IAS - Financial International to of annual improvements as a result standards following Amendments to relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss profit outside recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. lease term. the over income to is charged of the rental element interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission and Exchange Securities and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing which the Holding Company for products, and related of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the the SECP di er by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS - or employees from contributions amendment applies to benefits'. The 19 (Amendment) 'Employee IAS - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and resources allocating for who is responsible decision-maker, operating chief The decision-maker. operating strategic makes identified as management that segments, has been of the operating performance assessing segment as the has a single reportable Holding Company the that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by of the Company shareholders ordinary to attributable or loss the profit dividing by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance after months twelve least at for the liability of settlement charged are costs borrowing All other complete. are use or sale its intended for assets the qualifying prepare incurred. as and when account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated the period in recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared are in which the dividends in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe is evidence due or when other objective past are when they impairment for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets investments HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest the e ective using amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal loss or in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit on disposal of property, Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The - Tanks and pipelines pipelines (CWIP) Capital work-in-progress (b) land machinery and pumps hold and Tanks Dispensing lease Plant on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to subsequent with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP Measurement model (a) Carried using revaluation model (i.e. under revaluation subsequently measured and leased are both owned assets operating Following the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed
not and have e ective not yet are that and interpretations published standards amendments to Standards, the for mandatory are that and interpretations published standards amendments to standards, other new The the financial year for not e ective are published standards and amendments to standards new following The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) assets fixed Operating Capital work-in-progress
5 PLANT AND EQUIPMENT PROPERTY, financial liabilities include: Holding Company The method. All interest using the e ective amortised cost subsequently at measured are Financial liabilities that Taxation 4.12 Current and profit in the consolidated is recognized tax. Taxation and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, is provided tax Deferred using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between is allocated payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets 2 BASIS OF PREPARATION PREPARATION OF BASIS 2 2.1 of compliance Statement Accounting with the Approved in accordance been prepared have financial statements consolidated These company Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The Subsidiary Company Nature of business Holding business of Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The 1.1 Limited Lubricants (Private) Hascombe Lubricant marketing consolidation 100% of Basis 2.2 and its of Holding Company includes the financial statements financial statements consolidated The 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Limited Petroleum - Hascol Limited Lubricants (Private) - Hascombe Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol 4.19 Earning per share share per Earning 4.19 Basic EPS is shares. its ordinary for data (EPS) earnings per share basic and diluted presents Company The 4.18 Operating segments segments Operating 4.18 the chief to provided reporting with the internal in a manner consistent reported segments are Operating distribution defer to right unconditional has an Holding Company the liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 in the as a liability recognised are shareholders Company’s the Holding to Final dividend distributions 5.1 Operating fixed assets Owned assets Leased assets
Building on lease Electrical, Furniture, Electrical, Building Total hold land Tanks Plant mechanical o ce Tanks Plant mechanical Dispensing equipment Computer on Dispensing operating and and and fire Vehicles and and and fire Vehicles Pumps and auxiliaries leasehold Pumps fixed *O ce Pump pipelines machinery fighting pipelines machinery fighting other land assets building building equipment equipment
4.6 4.9 assets 4.12
4.1 & 4.2 4.1 Rupees in '000 AtJanuary 1, 2015 Cost / revalued amount 338,911 358,558 193,621 98,481 25,095 105,298 67,033 17,143 29,635 209,477 154,281 311,550 115,379 22,065 23,969 2,070,496 Accumulated depreciation (35,749) (38,044) (9,984) (15,059) (1,569) (8,977) (43,825) (12,354) (16,801) (40,247) (22,064) (55,451) (15,512) (2,998) (19,220) (337,854) Net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642 Year ended December 31, 2015 Opening net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642 Addition/ transfer from CWIP 491,890 142,853 299,643 51,119 15,436 222,932 7,323 - 5,555 - - - - 10,247 - 1,246,998 Revaluation 139,396 519,206 86,043 154,171 11,780 97,905 - - - 68,396 54,315 288,526 52,623 7,280 - 1,479,641 Disposals Cost ------(4,026) ------(4,026) Accumulated depreciation ------4,026 ------4,026 ------Depreciation charge (34,831) (38,099) (20,129) (12,066) (1,875) (28,339) (8,095) (1,119) (8,286) (14,793) (11,702) (45,297) (8,806) (3,466) (1,794) (238,697) Closing net book value 899,617 944,474 549,194 276,646 48,867 388,819 22,436 3,670 10,103 222,833 174,830 499,328 143,684 33,128 2,955 4,220,584
At December 31, 2015 Cost / revalued amount 970,197 1,020,617 579,307 303,771 52,311 426,135 74,356 17,143 35,190 277,873 208,596 600,076 168,002 39,592 23,969 4,797,135
Accumulated depreciation (70,580) (76,143) (30,113) (27,125) (3,444) (37,316) (51,920) (13,473) (25,087) (55,040) (33,766) (100,748) (24,318) (6,464) (21,014) (576,551) Net book value 899,617 944,474 549,194 276,646 48,867 388,819 22,436 3,670 10,103 222,833 174,830 499,328 143,684 33,128 2,955 4,220,584 Depreciation rate - % 5 5 5 6.67 5 10 20 20 33.33 5 5 6.67 5 10 20
AtJanuary 1, 2014
Cost / revalued amount 68,831 329,070 32,600 70,911 18,996 5,073 52,896 18,480 23,666 209,477 154,281 295,920 110,871 3,961 31,268 1,426,301 Accumulated depreciation (21,446) (20,584) (1,996) (9,223) (726) (425) (36,360) (13,342) (10,044) (28,022) (12,438) (28,463) (8,629) (792) (27,256) (219,746) Net book value 47,385 308,486 30,604 61,688 18,270 4,648 16,536 5,138 13,622 181,455 141,843 267,457 102,242 3,169 4,012 1,206,555 Yearended December 31, 2014
Opening net book value 47,385 308,486 30,604 61,688 18,270 4,648 16,536 5,138 13,622 181,455 141,843 267,457 102,242 3,169 4,012 1,206,555 Addition/ transfer from CWIP 270,080 29,488 161,021 27,570 11,608 105,988 14,137 1,031 5,969 - - 15,630 4,508 18,104 7,343 672,477
Disposals/ transfers Cost - - - - (5,509) (5,763) - (2,368) ------(14,642) (28,282) Accumulated depreciation ------2,368 ------12,200 14,568 - - - - (5,509) (5,763) ------(2,442) (13,714) Depreciation charge for the year (14,303) (17,460) (7,988) (5,836) (843) (8,552) (7,465) (1,380) (6,757) (12,225) (9,626) (26,988) (6,883) (2,206) (4,164) (132,676) ognized on an accrual basis. on an accrual ognized Closing net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642
AtDecember 31, 2014 Cost 338,911 358,558 193,621 98,481 25,095 105,298 67,033 17,143 29,635 209,477 154,281 311,550 115,379 22,065 23,969 2,070,496 Accumulated depreciation (35,749) (38,044) (9,984) (15,059) (1,569) (8,977) (43,825) (12,354) (16,801) (40,247) (22,064) (55,451) (15,512) (2,998) (19,220) (337,854) Net book value 303,162 320,514 183,637 83,422 23,526 96,321 23,208 4,789 12,834 169,230 132,217 256,099 99,867 19,067 4,749 1,732,642
Depreciation rate - % 5 5 5 6.67 5 10 20 20 33.33 5 5 6.67 5 10 20
* Running finance facility from Summit Bank Limited is secured on o ce building for the value of Rs. 500 million (2014: Rs. 400 million.) “Surplus on Revaluation of Fixed Assets account” to unappropriated profits through consolidated consolidated through profits unappropriated to account” Assets Fixed of Revaluation “Surplus on incremental the of extent the to surplus of realization record to equity in of changes statement the year. for charge depreciation assets on revaluation and depreciation charge for the year is taken to the consolidated profit and loss and loss profit the consolidated to is taken year the for charge and depreciation on revaluation assets and account;
year in which they arise. arise. they in which year not yet e ective and are also not relevant to the Company and therefore, have not been presented here. here. not been presented have and therefore, the Company to also not relevant and are e ective not yet amendment clarifies what is meant by the reference in the standard to ‘information disclosed elsewhere in disclosed elsewhere ‘information to in the standard the reference is meant by amendment clarifies what the from a cross-reference require 34 to amendment also amends IAS The financial report'. the interim It is amendment is retrospective. The information. of that the location to financial statements interim financial statements. significant impact on the Company's any will have the standard that unlikely bonds in that currency, not corporate bonds in a particular country. Similarly, where there is no deep there where Similarly, bonds in a particular country. not corporate currency, bonds in that should currency bonds in the relevant government currency, bonds in that in high-quality corporate market It period presented. the beginning of the earliest to but limited amendment is retrospective be used. The financial statements. significant impact on the Company's any will have the standard that is unlikely customers which coincides with dispatch of goods to customers. customers. of goods to with dispatch which coincides customers providing a precise definition of fair value and a single source of fair value measurement and disclosure and disclosure measurement value of fair and a single source value definition of fair a precise providing but accounting value the use of fair do not extend requirements IFRSs. The use across for requirements other by or permitted required its use is already it should be applied where on how guidance provide financial statements. in the Company's the disclosures only a ects standard within IFRSs. The standards • held-to-maturity (HTM) investments receivables investments and (HTM) upon initial recognition: categories the following into classified are hedging instruments, assets. • loans held-to-maturity • financial (FVTPL) - held-for-trading or loss profit through value fair at • • FS) (A available-for-sale is impaired. of financial assets or a group a financial asset that evidence objective is any identify whether there are which assets, financial of category each for applied are impairment determine to criteria Di erent are or loss in profit recognised are that financial assets to relating and expenses All income described below. impairment of trade for except or other financial items, income finance costs, within finance presented within other expenses. which is presented receivables using the e ective amortised cost at measured these are initial recognition, After market. in an active quoted contractual provisions of the financial instrument and are measured initially at fair value adjusted for for adjusted value fair initially at measured and are of the financial instrument provisions contractual fair initially at measured which are or loss profit through value fair those carried at for except costs, transaction and financial liabilities is described below. of financial assets Subsequent measurement value. A financial liability is transferred. are and rewards all the risks and substantially or when the financial asset or expires. cancelled discharged, when it is extinguished, derecognised accumulated impairment losses, if any. if any. impairment losses, accumulated line using the straight useful lives their estimated over amortized Such intangibles are if any. impairment losses, method. the balance at if appropriate, and adjusted, reviewed method are and amortization useful life The period of use. sheet date. post-retirement defined benefits plan as required under International Accounting Standard (IAS) 19, 19, (IAS) Standard Accounting under International benefits plan as required defined post-retirement Other in recognized are losses and gains actuarial policy new to According Benefits". "Employee profit in the consolidated Amounts recorded occur. in the periods in which they (OCI) Income Comprehensive on settlements, and net gains or losses costs, service and past service current to limited are account and loss in directly recognized are obligation All other changes in the net defined benefit (expense). income interest and loss profit the consolidated through with no subsequent recycling income comprehensive consolidated account. of the of 5.73% the rate at as the employee as well Company the Holding the fund is made by to contribution basic salary. method. interest and the redemption costs) (net of transaction the proceeds between di erence any cost, amortized at stated using the the period of the borrowings over account and loss profit in the consolidated is recognized value e ective consideration to be paid in the future for the goods and/or services received whether not billed to the Holding the to billed not whether received services and/or goods the for future the in paid be to consideration Company. estimates are recognized in the period in which the estimates are revised, if the revision a ects only that only that a ects if the revision revised, are in the period in which the estimates recognized are estimates periods. and future both current a ects periods if the revision and future period, or in the period of the revision consolidated on the Holding Company's significant e ect have that as applicable in Pakistan, standards, in the future adjustment significant risk of material with and assumptions and estimates financial statements notes: included in the following period are Note otherwise stated. unless presented, all the years applied to been consistently policies have These out below. in progress. capital work to capitalized are construction applicable in Pakistan, requires management to make estimates, assumptions and use judgment that a ect the a ect and use judgment that assumptions estimates, make management to requires applicable in Pakistan, and expenses. and liabilities, income amounts of assets policies and reported of accounting application the basis of making the of which form the results under the circumstances, be reasonable to believed are other sources. from apparent not readily are and liabilities that of assets judgments about carrying values these estimates. from di er may results Actual under the circumstances. be reasonable to believed are that events of future including expectation - from is transferred taxation net of deferred the year for depreciation incremental an amount equal to - such to assigned the value to with reference is determined revalued which are on assets depreciation - is rec income Rental - basis. on accrual is recognized income on deposits and other services Return - been rendered. have when the services recognized are income and other services Handling, storage - the dividend is established. receive right to the Holding Company's when is recognized Dividend income - in the account and loss in profit sale is included for as available classified on sale of investment Gain or loss are that the published standards to amendments and interpretations number of other standards, are There - This 2016). July 1, or after on beginning periods annual for (e ective financial reporting' 34 'Interim IAS maturity. Unrealized surplus/deficit arising on revaluation of investment classified as 'available-for-sale' is as 'available-for-sale' classified of investment arising on revaluation surplus/deficit Unrealized maturity. financial statements. of consolidated equity in the statement shareholders' disclosed below in and recognized from there equity is removed sheet below balance on the consolidated reserve value fair and loss. profit in and is recognized estimate based on management's best stock-in-trade moving and slow obsolete made for account. and loss profit the consolidated less of business course in the ordinary price selling value is the estimated value Net realizable account. and loss a sale. make to in order be incurred to necessary costs estimated An amount is estimated. recoverable then the asset's exists such indication of impairment. If any indication any which the the amount by for and loss, profit in the consolidated as an expense is recognized, impairment loss fair amount is the higher of an asset's recoverable amount. The its recoverable carrying amount exceeds asset's future estimated of the discounting through in use is ascertained Value in use. sell and value to cost less value and the of money of the time value assessments market current reflects that rate using a discount cash flows for levels the lowest at grouped are impairment, assets the purpose of assessing For the assets. risk specific to units). generating (cash identifiable cash flows separately are which there carrying amount does not exceed the asset's that the extent only to is reversed amount. An impairment loss estimate. had been recognized. if no impairment loss been determined, have would the carrying amount that best and other include cash and bank balances cash and cash equivalents of cash flows, statement consolidated liabilities which qualify as cash equivalent. and current asset of current items current the and a reliable settle the obligation to will be required of resources an outflow that it is probable events, of past to adjusted and date sheet balance each at reviewed are Provisions made. be can amount the of estimate reflect the Holding Company has a legally enforceable right to o -set the transactions and also intends either to settle either to and also intends o -set the transactions right to has a legally enforceable the Holding Company and settle the liability simultaneously. the asset realize on a net basis or to - basis. on an accrual is recognized fee) (including license and other revenue income Non-fuel retail based on the tax rates that have been enacted. The Group takes into account the current income tax law and tax law income the current account into takes Group The been enacted. have that based on the tax rates authorities. the taxation by decisions taken in which case it is income, of other comprehensive statement equity or consolidated to or charged credited be. may as the case income of other comprehensive included in equity or statement consideration of value fair the at measured is Revenue reliably. measured be can revenue the and Company basis: the following on or receivable received - the to passed have of the goods of ownership when significant risks and rewards recorded Sales are financial year beginning January 1, 2015 and are relevant to the Company: to relevant and are beginning January 1, 2015 financial year - by complexity and reduce consistency improve aims to standard The measurement'. value IFRS 13 'Fair value of investments held by the Holding company is eliminated against the subsidiary's shareholders' equity the subsidiary's shareholders' against is eliminated the Holding company held by of investments value financial statements. in these consolidated of the asset an impairment indicator but considered eliminated also are losses Unrealised eliminated. transferred. policies. accounting using consistent company, fair as the sum of the acquisition-date of a subsidiary is calculated obtain control to the Group by transferred which includes the the Group, by issued and the equity interests liabilities incurred transferred, of assets values costs Acquisition if any. arrangement, consideration a contingent or liability arising from asset of any value fair as incurred. expensed are the acquisition. prior to financial statements in the acquiree’s recognised been previously have of whether they values. fair their acquisition-date at measured generally are and liabilities assumed acquired Assets amount of any the recognised (b) transferred, of consideration value of the sum of (a) fair excess in the equity interest existing of any value fair acquisition-date and (c) in the acquiree interest non-controlling of identifiable net values If the fair of identifiable net assets. values fair the acquisition-date over acquiree, in is recognised purchase) gain on a bargain amount (i.e. the excess above, the sum calculated exceed assets immediately. or loss profit amount. revalued at stated and liabilities which are assets certain basis. on an accrual for been accounted have transactions functional currency. Company’s not yet Standards Financial Reporting International published approved and amendments to Standards e ective as e ective and those designated than other assets, financial measurement subsequent of purpose the For receivables to date each reporting at least impairment at for reviewed FVTPL are those at for except All financial assets and Loans not are that payments or determinable with fixed financial assets non-derivative are and receivables Loans of financial assets and subsequent measurement Classification expire, the financial asset from the cash flows rights to when the contractual derecognised are Financial assets Recognition, initial measurement and derecognition derecognition and instruments measurement Financial initial 4.3 Recognition, the to a party becomes when the Holding Company recognised and financial liabilities are Financial assets 4.2 Intangible assets assets Intangible 4.2 and amortization accumulated less cost and subsequently carried at cost initially at recorded are These and accumulated amortization accumulated less cost at stated are useful lives finite having Intangible assets the to proportion in charged is year the during intangible assets of and deletion addition on Amortization any. if impairment losses, less cost at stated and amortized not are useful life indefinite having Intangible assets 4.16 Borrowings and borrowing cost cost borrowing and Borrowings 4.16 subsequently are Borrowings incurred. costs net of transaction value, fair initially at recognized are Borrowings Contributory provident fund fund provident Contributory The all its permanent employees. fund for provident contributory approved an operates Holding Company The 4.15 Retirement and other service benefits benefits service other and scheme Retirement gratuity 4.15 Unfunded of in respect policy had changed its accounting the Holding Company ended 2013, During the year 4.14 Trade and other payables payables other and Trade 4.14 the of value which is the fair cost carried at are and other amounts payable creditors Liabilities for accounting of approved management in the application of judgments made by policies in respect Accounting and amortization - depreciation assets a) Fixed equipment and plant Property, 4.1 Initial recognition assets fixed (a) Operating cost. at plant and equipment is initially recognized of property, An item under assets While assets. fixed as operating capitalized use are intended for available which are assets The accounting to on an ongoing basis. Revisions reviewed are and underlying assumptions estimates The POLICIES ACCOUNTING SIGNIFICANT 4 set are statements financial of these consolidated policies applied in the preparation principal accounting The 3 uncertainty and measurement estimates Critical assumptions as standards, accounting with approved in conformity financial statements of consolidated preparation The that other factors and various experience based on historical are assumptions and associated estimates The of stock-in-trade value Net realizable b) Provisions c) d) Taxation and other factors, experience based on historical and are evaluated continually and judgments are Estimates profit in the consolidated and recognized necessary where stocks moving obsolete/slow is made for Provision the recoverable determine used to has been a change in the estimates if there is reversed An impairment loss Stock-in-trade in directly has been recognised that loss cumulative securities, the In case of impairment of available-for-sale assets 4.6 financial (NRV). value and net realizable of cost the lower at is valued Stock-in-trade non is Provision thereon. incurred plus other charges value invoice comprising cost at is valued Stock-in-transit of basis. average weighted on moving is determined in trade of stock cost The Impairment 4.7 equivalents is whether there ascertain to date reporting each at assessed are non financial assets of amounts carrying The cash and Cash 4.8 Provisions the purposes of the For cost. sheet at balance carried in the consolidated are Cash and cash equivalents 4.9 as a result obligation legal or constructive has a present when the Holding Company recognized are Provisions 4.5 Investments Investments 4.5 or held to under the held-for-trading do not fall that 'as available-for-sale', its investments classifies Group The 4.4 O setting setting O 4.4 sheet if balance in the consolidated o set and the net amount is reported and liabilities are Financial assets recognition reverse, the period when the di erences apply to to expected are that the rates at tax is calculated Deferred Revenue in the case of items except account, and loss profit in the consolidated or credited tax is charged Deferred 4.13 the Holding to benefits will flow the economic that it is probable that the extent to is recognized Revenue
and relevant in 2015 e ective and interpretations published standards to amendments a) Standards, the for mandatory are and interpretations published standards amendments to standards, following The line basis and the carrying on a line by been consolidated have and liabilities of subsidiary company assets The are companies the Group between gains on transactions and unrealised balances transactions, Inter-company holding the as year reporting same the for prepared are company subsidiary the of statements financial The 2.3 combination Business consideration The combinations. business for method in accounting applies the acquisition Group The regardless combination in a business and liabilities assumed acquired identifiable assets recognises Group The as the It is calculated intangible assets. of identifiable recognition separate after is stated any, Goodwill, if 2.4 Basis of measurement for except convention, cost the historical under been prepared have financial statements consolidated These all the of cash flows, statement the consolidated for except financial statements, In these consolidated 2.5 currency Functional and presentation Rupees which is also the Holding in Pakistani presented are financial statements consolidated These 2.6 Standard an existing to Amendment or an Interpretation of a Standard, Initial application
Annual Report - 2015
97 HASCOL
allow the transferor to derecognize the asset, IFRS 7 requires disclosure of all types of continuing all types of continuing of disclosure 7 requires IFRS asset, the derecognize to the transferor allow guidance provides standard The assets. in the transferred have the entity might still that involvement apply with an option to amendment is prospective The involvement. continuing is meant by about what retrospectively. and financial liabilities' is not specifically – O setting financial assets 'Disclosure IFRS 7, amendments to amendment is retrospective. 34. This IAS by required periods unless all interim for required January 1, 2016). The amendment allows entities to use the equity method to account for investments in investments for account use the equity method to entities to amendment allows The January 1, 2016). the that It is unlikely financial statements. in their separate and associates subsidiaries, joint ventures financial statements. significant impact on the Company's any amendment will have IASB: by issued Standards Reporting amendments: two are There 2016). which under conditions party a third to a financial assets entity transfers – If an contracts Servicing • the by required the additional disclosure – the amendment clarifies that financial statements Interim • financial statements. significant impact on the Company's any will have the standard that It is unlikely it obligations, benefit post-employment for rate discount the determining when that, clarifies amendment arise. they where is important, not the country in that denominated the liabilities are that is the currency is based on corporate bonds high-quality corporate is a deep marketing of whether there assessment The and Separate Financial Statements' (as amended in 2008) and includes the provisions on separate financial on separate (as amended in 2008) and includes the provisions Financial Statements' and Separate The IFRS 10. been included in the new have 27 of IAS provisions the control left after are that statements of this standard. in line with the requirements is already treatment accounting current Company's amendment The of such contributions. defined benefit plans and clarifies the treatment parties to third arise and only in the period in which they service to linked are that contributions between distinguishes simplify the of the amendment is to objective than one period. The in more service to those linked example for service, of employee independent of the number of years are that contributions for accounting Entities with plans of salary. percentage a fixed to according calculated are that contributions employee the benefit of those recognise to will be required with service vary that contributions require that impact on the Company's any amendment does not have The lives. working employee’s over contributions financial statements. the parent entity or to the reporting to management personnel services key provides an entity that party, the reporting to charged of the amounts Disclosure entity (the ‘management entity’). of the reporting financial statements. impact on the Company's any amendment does not have The entity is required. interest method, less provision for impairment. Discounting is omitted where the e ect of discounting is of discounting the e ect where is omitted impairment. Discounting for provision method, less interest of financial instruments. this category into fall cash and bank balances Group's The immaterial. will default. a specific counterparty that received or profit through value fair at designated and are conditions meet certain or that as held-for-trading classified upon initial recognition. - held-for-trading loss a using or transactions market active to reference by determined are category in this assets of financial values in asset any have do not currently Holding Company The exists. market no active where technique valuation this category. the intention has as HTM if the Holding Company classified are Investments other than loans and receivables. in this category. asset any have do not currently Holding Company The hold them until maturity. and ability to the ratings, credit external to reference by determined is impaired, the investment that evidence objective changes in the carrying Any cash flows. future of estimated value present the at is measured financial asset or loss. in profit recognised are impairment losses, including amount of the investment, primarily those investments are These of financial assets. of the other categories inclusion in any qualify for the need for to be sold in response an undefined period of time or may be held for to intended are that liquidity. are All other AFS financial assets or loss. in profit recognized are Impairment charges reliably. estimated within reported and income in other comprehensive recognized are Gains losses and value. fair at measured and foreign impairment losses and dividend income, interest for except within equity, the AFS reserve the asset When or loss. profit in consolidated recognized which are on monetary assets, di erences exchange in other comprehensive recognized gain or loss the cumulative be impaired, to is disposed of or is determined interest using the e ective calculated Interest or loss. profit to the equity reserve from is reclassified income income. within finance or loss in profit recognized method and dividends are AFS equity For recognized. was the impairment loss after occurring an event to related objectively is value in fair increase subsequent and any loss in profit recognized not are impairment reversals investments other asset any have does not currently Company Holding The income. in other comprehensive recognized in this category. other than as provided and the related liability. These amounts are determined at the inception of lease, on the basis of the lower of on the basis of the lower of lease, the inception at determined amounts are These liability. and the related are Financial charges of minimum lease payments. value and the present of the leased properties value the fair on the outstanding of charge rate a constant provide period in a manner so as to the accounting to allocated liability. are expenditures These CWIP. carried to period are installation during construction/ incurred assets use. intended for available as and when these are assets fixed operating to transferred subsequent and any depreciation subsequent accumulated any less of revaluation the date at value fair impairment losses). accumulated sheet balance the at value fair using determined be would which that from materially di er not does amount date. impairment losses. accumulated Depreciation for Same basis and estimates its useful life. o over is written assets fixed amount of operating cost/revalued lease. under finance acquired and assets assets owned applied to are depreciation at is provided Depreciation is disposed o . the month in which the asset from is charged while no depreciation 5.1. as disclosed in note the rates retired. are if any, so replaced, and the assets capitalized are and improvements the has adopted the Holding Company sheet. Accordingly balance equity in the consolidated below shown of the requirement in view keeping assets, on revalued of depreciation treatment accounting following January 13, 2003: dated (SECP) SRO 45(1)/2003 of Pakistan’s Commission Securities and Exchange relevant relevant significant e ect any have or to be relevant not to considered are beginning on January 1, 2015 financial year and operations. financial reporting on the Company's the Company. by been early adopted the Company: by not been early adopted and have beginning on January 1, 2015 - annual periods beginning on or after for (e ective financial statements' (Amendment) 'Separate 27 IAS - Financial International to improvements of annual as a result standards following Amendments to - January 1, annual periods beginning on or after for (e ective Disclosures' IFRS 7 ‘Financial instruments: - The January 1, 2016). on or after annual periods beginning for benefits' (e ective 19 'Employee IAS interest-related charges, if applicable, changes in an instrument’s fair value that are reported in profit or loss or loss in profit reported are that value fair changes in an instrument’s if applicable, charges, interest-related income. or finance costs included within finance are account classified as finance leases. Assets obtained under finance lease are accounted for in accordance with policy with policy in accordance for accounted lease are obtained under finance leases. Assets as finance classified 4.1. in note stated timing of the payment. lease term. the over income to is charged of the rental element interest The outstanding. balance the from received incentives any of (net leases operating under made Payments leases. operating as classified the period of lease. basis over on a straight-line statement the income to charged are lessor) the by 2 issued (IFAS) Standard lease based on Islamic Financial Accounting as operating treated and are of Commission and Exchange Securities and notified by of Pakistan Accountants of Chartered Institute to charged are lease operating under made Payments 2007. 22, May dated 2007 / 43(1) S.R.O. vide Pakistan the lease term. line basis over on a straight account and loss the profit rupees at Pakistani into converted are currencies in foreign Transactions sheet date. the balance at prevailing consolidated to taken are gains or losses Exchange date. the transaction at prevailing of exchange the rates account. and loss profit in a value fair at measured Non monetary items of the initial transactions. the dates as at rates exchange determined. was value when the fair the date at rates using the exchange translated are currency foreign (whether account and loss profit outside recognized items to it relates that the extent to except account loss recognized in which case the tax amounts are in equity), if any, or directly income in other comprehensive account. and loss profit outside consolidated and further in if any, available, and rebates tax credits account taking into after applicable in Pakistan tax for tax adjustments current utilized. Moreover, 2001. Ordinance, Tax of the Income with other provisions accordance of prior years. in respect payable be taxation for used amount the and purposes reporting financial for liabilities and assets of amount carrying can or settlement manner of realization is based on the expected tax provided amount of deferred purposes. The tax Deferred sheet date. the balance at enacted and liabilities using tax rates of the carrying amount of assets and available be will profits taxable future the that probable is it that extent the to only recognized is asset credits on March 28, 2001. On September 12, 2007 the Holding Company was converted into a public unlisted a public unlisted into converted was the Holding Company 12, 2007 On September 28, 2001. on March and Islamabad Stock Lahore on the Karachi, listed was the Holding Company 12, 2014 and on May Company Stock Pakistan into integrated are exchanges all stock demutualization, to (due of Pakistan Exchanges Forum, The No.105-106, Suite at is situated of the Holding Company o ce registered The Limited). Exchange storage procurement, are principal activity of the Holding Company The Karachi. Clifton, Khayaban-e-Jami, obtained oil marketing which the Holding Company for products, and related of petroleum and marketing 2005. in the year Resources and Natural of Petroleum Ministry from license shares million ordinary holds 9.779 Holding Company 1984. The Ordinance, under the Companies Pakistan The concern. going a be to ceased has company subsidiary The share. per 10 Rs. of million) 9.779 (2014: assumption. on a going concern not been prepared have of the subsidiary company financial statements Financial of such International comprise Standards Accounting Approved as applicable in Pakistan. Standards and Islamic (IASB) Board Standards Accounting International the by issued (IFRSs) Standards Reporting (ICAP) of Pakistan Accountants of Chartered the Institute by issued (IFASs) Standards Financial Accounting of the Companies 1984, the requirements Ordinance, of the Companies notified under the provisions as are (SECP). of Pakistan Commission the Securities and Exchange by issued 1984 and the directives Ordinance, with the the SECP di er by issued 1984 or directives Ordinance, of the Companies the requirements Where 1984 shall Ordinance, under the Companies issued of and directives of IFRS, the requirements requirements prevail. 'the Group'. together subsidiaries comprising the Holding Company. by owned - 'Consolidated 27 IAS the current replaces standard This financial statements'. 'Separate (Revised) 27 IAS - or employees from contributions amendment applies to benefits'. The 19 (Amendment) 'Employee IAS - as a related include, has been amended to standard The party disclosures'. (Amendment) 'Related 24 IAS settlement of the liability for at least twelve months after the balance sheet date. sheet date. the balance after months twelve least at for the liability of settlement charged are costs borrowing All other complete. are use or sale its intended for assets the qualifying prepare incurred. as and when account and loss profit to Company’s Holding the by approved are dividends the which in period the in statements financial consolidated in the period recognised are dividend distributions Meeting, while interim the Annual General at shareholders of Directors. the Board by declared are in which the dividends and resources allocating for who is responsible decision-maker, operating chief The decision-maker. operating strategic makes that has been identified as management segments, of the operating performance assessing segment as the has a single reportable Holding Company the that management has determined decisions. The segment. as one reportable operations the Holding Company’s views of Directors Board the weighted by of the Company shareholders ordinary to attributable or loss the profit dividing by calculated the adjusting by EPS is determined Diluted during the year. outstanding shares number of ordinary average shares number of ordinary average and the weighted shareholders ordinary to attributable or loss profit shares. ordinary potential of all dilutive the e ects for outstanding in incorporated subsidiary of the Holding Company, is wholly owned Limited Lubricants (Private) Hascombe is evidence due or when other objective past are when they impairment for considered are Receivables - held-for-trading or loss profit through value fair At either are that include financial assets - held-for-trading or loss profit through value fair at Financial assets investments fair The or loss. in profit recognised with gains or losses value fair at measured are in this category Assets HTM assets maturity and fixed payments or determinable with fixed financial assets non-derivative are HTM investments financial is method. If there interest the e ective using amortised cost subsequently at measured are HTM investments AFS or do not this category to either designated are that financial assets non-derivative are AFS financial assets be cannot currently value as its fair impairment charges, any less cost at is measured equity investment The can be if the reversal loss or in profit recognized AFS debt securities are for of impairment losses Reversals of financial liabilities and subsequent measurement Classification
Measurement subsequent to initial recognition recognition initial assets the recording by leases finance under acquired equipment and plant property, for accounts Group The to pipelines subsequent (CWIP) Capital work-in-progress (b) land machinery with specific in connection All expenditure if any. impairment losses, accumulated less cost at is stated CWIP and Measurement pumps hold and Tanks Dispensing lease Plant model (a) Carried using revaluation model (i.e. under revaluation subsequently measured and leased are both owned assets operating Following on - - - Building - fighting equipment - Electrical, mechanical and fire - Pump building the carrying such that with su cient regularity valuers professional external by is determined value Fair model Carried using cost (b) and depreciation accumulated less cost at stated are those mentioned above other than assets Fixed the method whereby applying the straight-line account and loss profit to is charged on assets Depreciation use, intended for is available the month in which an asset line method from on straight is charged Depreciation Major renewals as and when incurred. account and loss profit to charged are and normal repairs Maintenance currently. account and loss plant and equipment is included in profit on disposal of property, Gain and loss assets of fixed Surplus on revaluation Assets” of Fixed the “Surplus on Revaluation to is credited assets of fixed surplus arising on revaluation The but not in 2015 e ective are that and interpretations published standards amendments to Standards, b) the for mandatory are that and interpretations published standards amendments to standards, other new The not and have e ective not yet are that and interpretations published standards amendments to Standards, the financial year for not e ective are published standards and amendments to standards new following The financial liabilities include: Holding Company The method. All interest using the e ective amortised cost subsequently at measured are Financial liabilities that 4.10.1 Finance leases leases Lease Finance 4.10 4.10.1 are of ownership all the risks and rewards has substantially of which the Holding Company in terms Leases leases depending upon the and long term as current classified are costs net of finance obligations, rental related The Operating the on rate constant a achieve to as so cost finance and liability the between is allocated payment lease Each 4.10.2 Ijarah are lessor the by retained are ownership of and rewards the risks of portion significant a where Leases translations 4.10.3 currency sheet balance in the Company’s not recognised are agreement obtained under Ijarah which are assets Leased Foreign 4.11 of exchange the rates Rupees at into translated are currencies and liabilities in foreign Monetary assets Taxation using the translated are currency in a foreign cost of historical in terms measured are that Non-monetary items 4.12 Current and profit in the consolidated is recognized tax. Taxation and deferred current comprises the year for Taxation 4.12.1 Deferred as of taxation rates the current at income on the basis of taxable taxation for accounts Holding Company The 4.12.2 the between di erences the temporary sheet method, providing using the balance for, is provided tax Deferred 1 LEGAL STATUS AND OPERATIONS OPERATIONS of: AND consist STATUS 'Group' LEGAL 1 The Company Subsidiary Holding Company Holding Limited Petroleum - Hascol business Limited Lubricants (Private) - Hascombe of Company limited as a private in Pakistan incorporated was (the Holding Company) Limited Petroleum Hascol Nature Company Subsidiary and the Subsidiary Company: include the Holding Company Group The PREPARATION 1.1 OF Limited Lubricants (Private) Hascombe BASIS Lubricant marketing 2 2.1 of compliance Statement consolidation Accounting with the Approved in accordance been prepared have financial statements consolidated These 100% of Basis 2.2 company and its of Holding Company includes the financial statements financial statements consolidated The Subsidiary as it is 100% Limited Lubricants (Private) Hascombe over control exercise can directly Holding Company The distribution defer to right unconditional has an Holding Company the liabilities unless as current classified are Borrowings Dividend to necessary activities the all substantially when time in point the to up capitalized are costs Borrowing 4.17 segments in the as a liability recognised are shareholders Company’s the Holding to Final dividend distributions Operating share 4.18 per the chief to provided reporting with the internal in a manner consistent reported segments are Operating Earning 4.19 Basic EPS is shares. its ordinary for (EPS) data earnings per share basic and diluted presents Company The HASCOL Annual Report - 2015 98 2014 2014 2014
Written down value down Written Rupees in '000 Rupees in '000 2015 2015 2015
238,697 132,676 815,572 348,220 559,278 40,561 142,467 261,069 143,903 302,354 3,942 7,740 85,649 117,658 187,141 34,000 243,144 1,819 101,480 2,057,344 98,852 1,558,142 35,717 84,920 31 12,098 12,510 30 226,599 120,166 Note Note Rupees in '000 Rupees in depreciation Accumulated
61,613 61,613 7,055 54,558 7,549 14,351 14,351 3,764 10,587 1,775 19,767 19,767 3,369 16,398 2,939 Cost 137,419 137,419 69,068 68,351 77,517 66,850 25,951 40,899 44,242 90,260 90,260 38,985 51,275 55,788 312,423 18,777 293,646 9,624 880,921 880,921 109,585 771,336 180,639 166,399 166,399 66,691 99,708 108,028 224,202 224,202 22,859 201,343 831 1,974,205 1,974,205 366,104 1,608,101 488,932 Rs. nil (2014: Rs. 1.37 million). Rs. 1.37 Rs. nil (2014: from ranging the rate at during the year capitalized cost also includes borrowing This in progress. capital work 12.64% - 13.18%). (2014: - 13.18% 9.58% The depreciation charged for the year has been allocated as follows: as follows: has been allocated the year for charged depreciation The have been as follows: follows: as been have
expenses Distribution expenses Administrative 5.4 been disposed-o amount to have equipment that plant and of property, value down written During the year 5.5 in progress Capital work building O ce pump buildings Petrol Plant and machinery and pipe lines Tanks Dispensing pumps auxiliaries Computer fighting equipment Electrical, mechanical and fire and other assets equipment o ce Furniture, capitalized cost Borrowing contractors to Advances 5.5.1 been made in million) has Rs. 1,000.78 million (2014: Rs. 1,729.65 additions amounting to During the year fighting equipment fire 5.3 on lease hold land Building Dispensing units Plant and machinery and pipelines Tanks and Electrical mechanical fighting equipment fire Assets Leased on lease hold land Building units Dispensing and machinery Plant and pipelines Tanks mechanical and Electrical Assets Owned 5.2 would sheet balance in the assets of the following value down the written been no revaluation, Had there 6 INTANGIBLE 2015 2014 Note Rupees in '000 Net book value Net book value at beginning of the year 4,288 7,054 Amortization charge for the year 31 (2,766) (2,766) Net book value at the end of the year 6.1 1,522 4,288
6.1 Net book value
Cost 8,299 8,299 Accumulated amortization (6,778) (4,011) Net book value at the end of the year 1,521 4,288
Rate of amortization - % 33.33 33.33
7 LONG-TERM INVESTMENT
Pakistan Refinery Limited (PRL) 7.1 1,955,310 781,542
7.1 Movement Carrying Cost Unrealised gain / (loss) value Rupees in '000
December 31, 2015 1,172,772 782,538 1,955,310
December 31, 2014 788,332 (6,790) 781,542
Investment in Pakistan Refinery Limited (quoted) amounts to Rs. 1,172.77 million (2014: Rs. 788.33 million) representing 13.72% (2014: 13.72% ) of PRL paid up share capital as at December 31, 2015. During the year Company subscribed to 38.44 million shares at Rs 10 each. The Company has 43.24 million shares (2014: 4.80 million shares) as at December 31, 2015.
8 LONG-TERM DEPOSITS 2015 2014 Note Rupees in '000
Lease deposits 52,819 18,780 Less: current portion of lease deposits 13 - (8,004) 52,819 10,776 99 Other deposits 8.1 175,812 45,713 228,631 56,489 HASCOL
8.1 Other deposits include amount of Rs. 39.72 million (2014: nil) and Rs. 8.20 million (2014: Rs. 8.20 million) with Motorway Operations & Rehabilitation Engineering Private Limited (MORE) for 10 petrol stations at Motorway and PAF Base Faisal for Hascol One petrol station, respectively, the Company's owned and operated sites.
Annual Report - 2015 9 DEFERRED TAXATION 2015 2014 Rupees in '000 This comprises of the following:
Taxable temporary di erence arising in respect of : Accelerated depreciation (877,105) (251,938) Assets under finance lease (55,612) (169,948) Exchange gain (3,379) (6,570) Surplus on remeasurement on investment (97,817) 850
- - -
- 157 - - 4,342 - 157 - 8,004 849 849 849 4,264,444 4,549,515 4,271,568 4,556,796 4,263,595 4,548,823 7,124 7,124 7,973 7,973 7,973 7,973 70,138 15,006 7,189 2,606 14,828 62,856 150,606 140,207 166,566 7,124 4,263,595 4,548,666 7,281 25,533 667,776 45,779 373,335 81,946 36,147 89,051 65,503 18,565 959,829 1,024,954 11.1 11.1 7,124 7,124 13.1 13.1 38,470 437,596 11.3 (7,973) (7,973) 13.2 5,083 5,083 13.3 59,095 27,817 7.12 million (2014 : Rs. 7.12 million). : Rs. 7.12 million (2014 7.12 Due from related party related Due from others Due from Closing balance Suppliers impairment for Provision Less: 11.1 follows: is as sheet date the balance at party balance associated aging of above The days due 1-30 Past 11.2 than 365 days More Rs. amounting to company) (subsidiary Limited Lubricants (Private) Hascombe from includes receivable This 11.3 impairment for of provision Movement Opening balance made during the year Provision 12 good - Considered ADVANCES Employees expenses - against salary - against Import companies Leasing 13 RECEIVABLES OTHER AND PREPAYMENTS DEPOSITS, companies oil marketing from Receivable 11 - Unsecured TRADE DEBTS duty regulatory against Receivable good Considered - doubtful Considered - good Considered - doubtful Considered - (IFEM) receivable Margin Equalization Inland Freight rent Prepaid receivable income Franchise and others insurance Prepaid deposits portion of lease Current Claims Di erential Price Others
HASCOL Annual Report - 2015 100 - 2014 2014
- 60,675 Rupees in '000 Rupees Rupees in '000 9,547 9,547 9,666 2,463 2,463 2,518 31,001 31,001 22,443 132,751 132,751 24,080 2015 2015 5,836,553 5,836,553 2,975,439
509,075 327,508 (94,305) (461,976) 240,096 3,712 509,075 63,757 76,986
240,713 6,077,266 3,154,914 179,475 8,470,018 3,473,704 35 35 287,302 177,855 10.3 10.3 2,328,995 241,804 Note Note 1,098,247 240,096 817,299 509,075
& 10.3 10.1 rates declared by the Ministry of Petroleum and Natural Resources (MPNR). The Company together with other together Company (MPNR). The Resources and Natural of Petroleum the Ministry by declared rates the early settlement authorities for with the concerned pursuing the matter is actively companies oil marketing of GoP in due course by amount will be reimbursed the balance that considers Company claim. The of above time. company). associated gasoline imported on their behalf. on their behalf. gasoline imported reasonable probabilities that taxable profits will be available in the foreseeable future against which deferred which deferred against future in the foreseeable will be available profits taxable that probabilities reasonable be utilized. will tax asset security with Sindh Bank Limited in respect of cash finance facility. facility. of cash finance in respect security with Sindh Bank Limited selling in decline of result a as million) 3,217.24 Rs. (2014: million 4,028.50 Rs. to amounting value realizable net January 1, 2016. from with e ect products petroleum of certain prices maintained as line fill necessary for the pipeline to operate. operate. the pipeline to for maintained as line fill necessary has been 104.23 million) of High Speed Diesel which million (2014: fuels include Rs. 239.88 Finished goods 13.2 as per fortnightly net of recovery (GoP) of Pakistan the Government from amount receivable represents This 13.3 (an Limited (Private) Sigma Motors from Rs. 18.21 million) receivable (2014: million Rs. 24.64 includes This 13.1 of motor of share on account (OMCs) companies oil marketing various from amount receivable It represents for: Provision benefit - retirement - doubtful debts in subsidiary Investments tax losses Carry forward tax Turnover 9.1 tax in deferred Movement indicating the management by prepared based on the projections has been recognized tax asset Deferred lease finance subject to assets against Liabilities tax Opening deferred loss and profit through tax raised Deferred income other comprehensive through tax raised Deferred surplus revaluation through tax raised Deferred STOCK-IN-TRADE 10 tax Closing deferred and packing materials Raw Finished goods - fuels (Continued) of : in respect arising di erence temporary Deductible 10.2 million) pledged as Rs. 152.00 Rs. nil (2014: Diesel amounting to in finished goods include High Speed Stock 10.3 at been valued million) which have Rs. 3,470.52 million (2014: Rs. 4,156.71 costing item includes Stock-in-trade - lubricants of fuel in transit Stock 10.1 - - - 2014 2014
- 157 - 157 - - 4,342 - 8,004 849 849 849 Rupees in '000 Rupees in '000 Rupees in 2015 2015 7,124 4,263,595 4,548,666 4,264,444 7,281 4,549,515 4,271,568 4,556,796 4,263,595 4,548,823 7,124 7,124 7,973 7,973 7,973 7,973 70,138 15,006 7,189 2,606 14,828 62,856 150,606 140,207 166,566 25,533 667,776 45,779 373,335 81,946 36,147 89,051 65,503 18,565 959,829 1,024,954 11.1 11.1 7,124 7,124 13.1 13.1 38,470 437,596 11.3 (7,973) (7,973) 13.2 5,083 5,083 13.3 59,095 27,817 Note Note Due from related party related Due from others Due from million). : Rs. 7.12 million (2014 7.12 companies oil marketing from Receivable 11 - Unsecured TRADE DEBTS good Considered - doubtful Considered - good Considered - doubtful Considered - impairment for Provision Less: 11.1 follows: is as sheet date the balance at party balance associated aging of above The days due 1-30 Past 11.2 than 365 days More Rs. amounting to company) (subsidiary Limited Lubricants (Private) Hascombe from includes receivable This 11.3 impairment for of provision Movement Opening balance made during the year Provision 12 Closing balance good - Considered ADVANCES Employees expenses - against salary - against Import companies Leasing Suppliers 13 RECEIVABLES OTHER AND PREPAYMENTS DEPOSITS, duty regulatory against Receivable (IFEM) receivable Margin Equalization Inland Freight rent Prepaid receivable income Franchise and others insurance Prepaid deposits portion of lease Current Claims Di erential Price Others
Annual Report - 2015
HASCOL 101
gasoline imported on their behalf. on their behalf. gasoline imported with other together Company (MPNR). The Resources and Natural of Petroleum the Ministry by declared rates the early settlement authorities for with the concerned pursuing the matter is actively companies oil marketing of GoP in due course by amount will be reimbursed the balance that considers Company claim. The of above time. company). associated 13.1 of motor of share on account (OMCs) companies oil marketing various from amount receivable It represents 13.2 as per fortnightly net of recovery (GoP) of Pakistan the Government from amount receivable represents This 13.3 (an Limited (Private) Sigma Motors from Rs. 18.21 million) receivable (2014: million Rs. 24.64 includes This - - -
- 157 - 157 - - 4,342 - 8,004 849 849 849 7,124 4,263,595 4,548,666 4,264,444 7,281 4,549,515 4,271,568 4,556,796 4,263,595 4,548,823 7,124 7,124 7,973 7,973 7,973 7,973 70,138 15,006 7,189 2,606 14,828 62,856 150,606 140,207 166,566 25,533 667,776 45,779 373,335 81,946 36,147 89,051 65,503 18,565 959,829 1,024,954 11.1 11.1 7,124 7,124 13.1 13.1 38,470 437,596 11.3 (7,973) (7,973) 13.2 5,083 5,083 13.3 59,095 27,817 Due from related party related Due from others Due from million). : Rs. 7.12 million (2014 7.12 11 - Unsecured TRADE DEBTS Closing balance Suppliers good - Considered doubtful - Considered good - Considered doubtful - Considered impairment for Provision Less: 11.1 is as follows: sheet date the balance at party balance associated aging of above The days due 1-30 Past 11.2 than 365 days More Rs. to amounting company) (subsidiary Limited Lubricants (Private) Hascombe from includes receivable This 11.3 impairment for of provision Movement Opening balance the year made during Provision 12 good - Considered ADVANCES Employees expenses - against salary - against Import companies Leasing 13 RECEIVABLES AND OTHER PREPAYMENTS DEPOSITS, companies oil marketing from Receivable duty regulatory against Receivable (IFEM) receivable Margin Equalization Inland Freight rent Prepaid receivable income Franchise and others insurance Prepaid portion of lease deposits Current Claims Di erential Price Others
HASCOL Annual Report - 2015 102 - - 2014 2014 2014
Rupees in '000 Rupees in '000 Rupees in '000 201,132 201,132 99,660 99,660 2015 2015 2015 4,067,530 1,760,545 4,072,003 4,473 1,761,389 844
14.1 14.1 382,914 147,198 14.2 3,684,616 1,613,347 15.3 10,600 10,600 Note Note 1,500,000 1,500,000 645,400 645,400 250,000 250,000 1,206,792 906,000 paid in cash other than cash consideration paid in cash
- Annual bonus @ 11% Dec 2014 - bonus @ 20% June 2015 Interim 2014 2014
Number of shares Number of shares 2015 2015
associated company). associated darning period expired six months, the restriction for Bank of Pakistan the State by imposed under restrictions year. the current gasoline imported on their behalf. on their behalf. imported gasoline other with together Company The (MPNR). Resources and Natural of Petroleum the Ministry by declared rates the early settlement for authorities with the concerned the matter pursuing is actively companies oil marketing of in due course GoP by amount will be reimbursed the balance that considers Company The claim. of above These were issued on December 8, 2004 for consultancy, feasibility study, travel and other expenses. and other expenses. travel study, feasibility consultancy, 8, 2004 for on December issued were These time. time. 150,000,000 150,000,000 64,540,000 64,540,000 of Rs. 10 each fully shares Ordinary 15.2 SHARE CAPITAL PAID-UP SUBSCRIBED AND ISSUED, 1,060,000 1,060,000 of Rs. 10 each for shares Ordinary 15.1 15.1 SHARE CAPITAL AUTHORIZED 15 SHARE CAPITAL 13.3 (an Limited (Private) Sigma Motors from receivable Rs. 18.21 million) million (2014: includes Rs. 24.64 This 14 AND BANK BALANCES CASH with banks: Balances account - in current account - in deposit Cash in hand 14.1 held which was Bank Limited million) maintained with KASB Rs 8.27 nil (2014: includes an amount of Rs. This 14.2 8.5% per annum). 6% to 6.5% per annum (2014: 5.5% to from ranging carry mark-up These 25,000,000 25,000,000 of Rs. 10 each fully shares Ordinary 9,966,000 20,113,200
13.1 of motor share of on account (OMCs) companies marketing oil various from receivable amount It represents 13.2 fortnightly as per net of recovery (GoP) of Pakistan Government the from receivable amount represents This 120,679,200 15.3 90,600,000 ------2014 2014
- 90,909 - 157 - 157 - - 4,342 - 8,004 849 849 849 Rupees in '000 Rupees in '000 Rupees in 2015 2015 1,070,828 1,070,828 684,721 1,755,549 1,064,887 1,565,856 (5,941) 3,321,405 807,170 1,872,057 492,209 1,479,641 550,403 461,787 567,880 42,857 187,922 42,857 (285,636) 54,857 148,893 (289,309) 176,151 6,650 278,571 (124,564) 1,847,286 (58,194) 492,209 171,659 473,112 192,027 (14,153) (39,860) (590,757) 1,256,529 (20,368) 171,659 320,550 7,124 4,263,595 4,548,666 4,264,444 7,281 4,549,515 4,271,568 4,556,796 4,263,595 4,548,823 7,124 7,124 7,973 7,973 7,973 7,973 70,138 15,006 7,189 2,606 14,828 62,856 150,606 140,207 166,566 25,533 667,776 45,779 373,335 81,946 36,147 89,051 65,503 18,565 959,829 1,024,954 11.1 11.1 7,124 7,124 13.1 13.1 38,470 437,596 11.3 (7,973) (7,973) 13.2 5,083 5,083 13.3 59,095 27,817 18.1 18.1 96,429 139,286 18.2 - 90,909 18.3 187,922 297,785 18.4 177,436 39,900 Note Capital reserves on charge pari passu first against limit is Rs. 150 million and is secured sanctioned The facility. storage Machike of Mr. personal guarantee with 25% margin, of the Company assets and fixed current and future all present Mark-up of facility. price the purchase cheque covering dated as sponsor and post Mumtaz Hasan Khan (CEO) starting instalments in 12 equal quarterly loan is repayable of 3%. The is 3 months KIBOR plus a spread rate 8, 2018. due on January repayment with last down draw of first the date the end of six months from from valuer Asif Associates (Private) Limited. Revalued amount of assets was Rs. 1,172.00 million, resulting in surplus million, resulting Rs. 1,172.00 was amount of assets Revalued Limited. (Private) Asif Associates valuer out carried the Company year during current million. Further, Rs. 387.00 to tax) amount (net of deferred Limited. (Private) Associates Asif an independent valuer pumps through depots and petrol of revaluation Rs. tax) amount to surplus (net of deferred in million, resulting is Rs. 4,153.90 amount of assets Revalued million. 1,006.52 Due from related party related Due from others Due from million). : Rs. 7.12 million (2014 7.12 an independent pumps through of 160 petrol carried out revaluation the Company ended 2012, During year
reserve premium Share reserve value Fair reserve Revenue profit Unappropriated 17 - net of tax OF FIXED ASSETS REVALUATION ON SURPLUS balance Opening Gain on revaluation 18 TERM FINANCES - Secured LONG Limited Company Investment PAIR Bank Limited Women First Burj Bank Limited Limited Company Oman Investment Pak finance portion of long term Current Limited Company Investment PAIR Bank Limited Women First Burj Bank Limited Limited Cmpany Oman Investment Pak 18.1 of the development finance to Limited Company Investment PAIR from facility finance term represents This 16 RESERVES RESERVES 16 depreciation of incremental in respect Transfer during the year charged tax deferred Related Opening balance of gain on revaluation tax deferred Related adjustment rate E ective of incremental tax liability on account of deferred Reversal during the year charged depreciation 17.1
good - Considered doubtful - Considered good - Considered doubtful - Considered impairment for Provision Less: 11.1 is as follows: sheet date the balance at party balance associated aging of above The days due 1-30 Past 11.2 than 365 days More Rs. to amounting company) (subsidiary Limited Lubricants (Private) Hascombe from includes receivable This 11.3 impairment for of provision Movement Opening balance the year made during Provision 11 - Unsecured TRADE DEBTS companies oil marketing from Receivable 12 Closing balance good - Considered ADVANCES Employees expenses - against salary - against Import companies Leasing Suppliers 13 RECEIVABLES AND OTHER PREPAYMENTS DEPOSITS, duty regulatory against Receivable (IFEM) receivable Margin Equalization Inland Freight rent Prepaid receivable income Franchise and others insurance Prepaid portion of lease deposits Current Claims Di erential Price Others
Annual Report - 2015 HASCOL 103
gasoline imported on their behalf. their behalf. on imported gasoline other with together Company The (MPNR). Resources and Natural of Petroleum the Ministry by declared rates the early settlement authorities for the concerned with the matter pursuing is actively companies oil marketing of course GoP in due by will be reimbursed amount balance the that considers Company claim. The of above time. company). associated 13.1 motor of of share on account (OMCs) companies marketing oil various from receivable amount represents It 13.2 fortnightly as per net of recovery (GoP) of Pakistan Government the from receivable amount represents This 13.3 (an Limited (Private) Sigma Motors from receivable Rs. 18.21 million) million (2014: includes Rs. 24.64 This HASCOL Annual Report - 2015 104
- - - - lease 2014 Present value of value minimum payments
- Rupees in '000 2014 periods charges to future to Financial 2015 allocated
103,151 11,800 114,951 90,872 (42,364) 12,279 103,151 (9,799) (52,163) (42,364) (42,364) 1,344 1,344 20.1 20.1 64,132 60,787 Note lease Minimum payments
Rupees in '000 lease Present value of value minimum payments
2015 periods charges to future to Financial allocated
lease 137,086 137,086 34,489 102,597 34,337 6,802 27,535 502,126 502,126 76,599 425,527 90,969 14,730 76,239 Minimum payments agreements are as follows: are agreements
capital expenditure incurred by the Company. The sanction limit is 300 million and is secured against movable movable against and is secured is 300 million sanction limit The the Company. by incurred capital expenditure with (PRL) Limited Refinery of Pakistan pledge of shares and margin with 25% of the Company assets fixed instalments in 4 equal the Company by is repayable Loan all times. The be maintained at to 40% margin 2016. of June 30, date repayment with the last down draw the 12 month of first from starting the refinance to Limited Company Oman Investment Pak obtained from facility finance term represents This million and is secured sanction limit is Rs. 192 The Daulatpur. at products petroleum setup of storage new along with 25% Daulatpur at located land building and machinery on Company's charge pari passu first against of 6 rate It carries mark-up as sponsor. Hasan Khan (CEO) Mumtaz Mr. of and personal guarantee margin with in arrears, in 42 equal monthly instalments loan is repayable The of 3%. rate a spread months KIBOR plus 2018. 30, due in November repayment with last down draw first from period of 6 months, grace 2020, the year by payable which are Minimum lease payments, plant and machinery and other assets. of items 18.5% per 11.25% to 13.26% (2014: to 8.43% from ranging using financing rates by been discounted have upon the Company to transferable are under the leasing arrangements acquired the assets to annum). Title lease obligations. of entire payment sanctioned limit was Rs. 200 million and was secured against specific charge on retail outlets worth Rs. 38 worth outlets on retail charge specific against secured and was million Rs. 200 was limit sanctioned Mumtaz Hasan of Mr. guarantee and personal Rs. 184 million worth installation Shikarpur on million, charge on November repaid was loan The 3%. of a spread KIBOR plus is 6 months rate Mark-up sponsor. as Khan (CEO) 11, 2015.
20 TERM DEPOSITS LONG under the lease in future pay to has committed which the Company for minimum lease payments The than one year Not later but than one year Later Opening balance during the year Additions on remeasurement income Imputed Opening balance 18.3 refinance to Burj Bank Limited from arrangement Musharika of Diminishing facility working represents This 18.4 19 FINANCE LEASE TO SUBJECT ASSETS AGAINST LIABILITIES lease of various for leasing companies with various lease agreements various into has entered Company The years than five not later 365,040 42,110 322,930 56,632 7,928 during the year Additions 48,704 income of imputed Unwinding Opening during the year Additions 18.2 outlet. The retail of construction for Limited Bank Women First from finance capital working represents This
- - - 2014 2014 2014 2014
- % per annum Rupees in '000 Rupees in '000 Rupees in '000 2015 2015 2015 2015 99,090 71,057 99,090 71,057 71,057 (3,359) 47,054 10,976 99,090 9,061 71,057 71,057 12,454 47,054 7,962 (3,359) 8,516 7,464 6,426 3,512 10,976 99,090 6,199 2,862 9,061 71,057 12,454 7,962 20,416 8,516 6,426 14,942 9.00% 9.00% 10.50% 10.50%
21.3 99,090 71,057 21.4 20,416 14,942 Note Note Note 21.1 & 21.2 21.1
period of 5 years. Provision is created for the benefit of the scheme on the basis of actuarial recommendations. actuarial recommendations. on the basis of of the scheme the benefit for is created Provision 5 years. period of Method. Unit Credit out using the Projected carried are valuations actuarial The repayable on termination or cancellation of dealership. of dealership. cancellation or on termination repayable
21.1 recommendations. the actuarial been obtained from 21.5 have to 21.2 in notes provided information The sheet in balance recognized in liability Movement as of defined benefit obligation value Present the end of the year at plan assets of value Fair 21.2 sheet liability Balance sheet in balance in liability recognized Movement the beginning of the year at Balance the year for Charge Add: employees outgoing to Payments Less: Income Comprehensive Other to charged Remeasurements 21.3 end of the year the at Balance of the defined benefit obligation value in present Movement Opening balance cost service Current cost Interest Benefit paid during the year of tax - net losses Actuarial Remeasurement: tax Impact of deferred amount) (gross losses Actuarial Remeasurement: 21.4 the end of year at of defined benefit obligation value Present as follows: are and loss profit in the amounts recognized The cost service Current cost Net interest 21.5 unfunded obligation for the year for expense gratuity Total assumptions Actuarial of these schemes: used in the valuation were significant assumptions following The level in salary of increase rate long-term - Expected rate - Discount 21 - Gratuity LIABILITY DEFERRED employment the completed have who employees for scheme gratuity unfunded an operates Company The 20.1 20.1 are writing and in contract with in accordance dealers from deposits security free interest includes This liability - Gratuity Deferred
Annual Report - 2015 HASCOL 105 HASCOL Annual Report - 2015 106 2014 2014 2014 Rupees in '000 Rupees in Rupees in '000 Rupees in '000 2015 2015 2015 12,070,681 6,443,320 1,938,342 2,553,327 739,439 269,577 46,018 748,590 17,356,958 8,104,357 600,639 51,382 54,311 59,877 1,413,055 1,271,707 92,988 1,591,492 959,952 2,307,103 25.1 25.1 866,964 715,611 24.1 24.1 1,413,055 821,707 24.2 24.2 - 450,000 Note Note institutions (DFI), under mark-up arrangements, amounting to Rs. 1,413.00 million (2014: Rs. 821.70 million), Rs. 821.70 million (2014: Rs. 1,413.00 amounting to arrangements, (DFI), under mark-up institutions and the bank the Company between agreements of all mark-up of sale prices the aggregate which represents secured are arrangements These 2016. November up to dates maturity various have facilities and DFI. These and future present Company's over charge hypothecation with minimum 20% margin, pledge of stock against and personal with minimum 30% margin pledge of PRL share, 25% margin, with minimum assets current over charge mortgage registered as sponsor along with equitable Mumtaz Hasan Khan (CEO) of Mr. guarantee (2014: Karachi Clifton, Khayaban-e-Jami Floor, 105 - 106, First No. Suite Forum, The at situated the property assets current future and present Company's over charge hypothecation margin, 20% with minimum stock of Mr. and personal guarantee margin with minimum 30% pledge of PRL share, with minimum 25% margin, the property over charge mortgage as sponsor along with equitable registered Mumtaz Hasan Khan (CEO) Karachi). Clifton, Khayaban-e-Jami Floor, 105 - 106, First No. Suite Forum, The at situated on a daily annum) calculated 3 month KIBOR plus 3.5% per to 1 month KIBOR plus 2.75% per annum (2014: not been have which amount of these facilities aggregate The monthly/quarterly. is payable basis, that product million). Rs. 228.00 million (2014: Rs. 200.00 amounts to sheet date the balance as at availed carries facility million). The Rs. 450.00 of Rs. nil ( 2014: certificate finance term placed privately represents This The quarter. the end of every at of 3% per annum payable of 6 month KIBOR plus spread the rate at mark-up 25% with Company of the assets current and future on present charge ranking against secured was loan margin. Management and The in this regard. stay has granted Court of minimum tax and the Honourable chargeability of the Company. will be in favour of the matter outcome eventual that is confident its legal counsel financial banks and development commercial various from available are facilities finance running Short term
accrued Mark-up 22 PAYABLES AND OTHER TRADE creditors Trade cartage contractors to Payable customers from Advance liabilities Accrued liabilities Other 23 ACCRUED MARK-UP 23.1 Company. the by availed on finances payable mark-up this represents 19 & 24, 18, in note As noted 24 FINANCES - Secured SHORT TERM RUNNING Financial institutions certificates finance Term 24.1 3% plus KIBOR month 1 to 2.75% plus KIBOR year 1 from ranging mark-up carry facilities finance running These 24.2 TAXATION 25 Sales tax payable tax payable Income 25.1 the against of Sindh High Court petition in the Honourable has filed a constitutional Company The 2014 2014
Rupees in '000 Rupees in '000 2015 2015 427,701 346,760 136,245 538,869 1,269,461 91,060 1,944,575 346,442 798,729 1,236,231 94,274,786 99,238,100 (209,489) 94,065,297 99,061,496 (176,604) 9,600 73,231 82,831 10,130 47,228 57,358 Contingencies Di erential Price on outstanding financial costs the 2007, 20, September dated number MCM-168 meeting Oil the by OCAC through (GoP) of Pakistan the Government billed to and should be worked Claims (PDCs) the to million Rs 65.97 had billed Company the basis. Although regular a on (OMCs) Companies Marketing as financial statements impact in these consolidated its for the management had not accounted OCAC, GOP/ not virtually certain. is though probable, benefits, of economic the inflow High Speed supplied million as the Company Rs. 361.20 amounting to imposed a sales tax liability 16, 2016 to amounting export rated ships and claimed zero international the various to Oil products Diesel and Furnace part of are products that on the ground the imposition has contested Company million. The Rs. 2,142.70 goods under rated as zero treated and are 1969 Act, of the Customs 24 under section and stores provision exist good grounds that confident and the tax advisors are Management The 1990. Act, Tax section 4 of Sales is provision no Hence Company. of the favour in be will outcome eventual that believe and the case contest to of the Commissioner hearing before for case is pending The these financial statements. be made in to required Inland Revenue. Rs. 1,796.80 was date that as at unutilized remaining million) of which the amount Rs. 9,322.00 million (2014: million). Rs. 2,243.00 million (2014: million) as follows: Rs. 1,236.00 million (2014: Rs. 1,945.00 to amounted held in their (OCAC) Committee Advisory of the Oil Companies main committee of the the deliberations As per February dated (DCIR) vide order of Inland Revenue the Deputy Commissioner the subsequent period, During Commitments Rs. 17,100.00 to amounted 31, 2015 December as at acceptances (LCs) of credit letters opening for facility The as follows: are incurred but not yet for contracted of capital expenditure in respect Commitments and equipment plant Property, 31, 2015 December as at contracts / ijarah lease agreements under operating rental for Commitments 26 AND COMMITMENTS CONTINGENCIES than one year Not later years than five but not later than one year Later years than five Later 27 - net SALES Sales Sales discount Less: 28 REVENUE OTHER pump operators petrol for Joining fee fee Franchise
Annual Report - 2015 HASCOL 107 HASCOL Annual Report - 2015 108
- 2014
1,111 1,111 1,000 710 3,308 Rupees in '000 Rupees in 2015 261,900 261,900 241,465 9,185,877 5,366,329 2,817,302 14,403,074 9,268,984 2,328,511 256,461 784,019 258,447 736,010 821,160 3,217,243 63,370,263 823,146 72,492,296 2,895,276 328,558 361,273 73,281,805 128,215 82,053,871 74,017,815 253,285 82,877,017
2,399,895 1,574,144 52,608 174,723 75,026 69,722 126,726 40,798 5,790 11,826 5,406 22,405 5,613 3,808 27,718 3,154 4,847 11,224 11,366 2,850 111,767 43,603 191,639 30,756 1,053,474 16,269 768,814 35,072 7,467 20,093 25,182 6,842 19,097 3,860 7,884 3,604 3,592 11,176 5,250 8,335 8,212 7,119 7,453 6 2,766 2,766 10 (304,470) (256,461) 10 (8,165,548) (3,217,243) 5.3 226,599 120,166 5.3 12,098 12,510 31.1 31.1 258,579 161,171 31.1 31.1 149,545 143,442 29.1 29.1 14,403,074 9,268,984 Note purchased and packing materials Raw materials and packing of lubricants, raw Closing stock Less: consumed and packing materials Lubricants, raw - fuel Opening stock Fuel purchased handling charges and Storage Duties and levies - fuel Closing stock Less: o - write Inventory materials and packing raw of lubricants, Opening stock 29.1 Duties and levies (IFEM) Margin Equalization Inland Freight Levy Development Petroleum Freight 30 AND MARKETING EXPENSES DISTRIBUTION 29 SOLD OF PRODUCTS COST and other benefits Salaries, wages and conveyance Traveling and taxes rates Rent, Insurance Depreciation Entertainment stationery Printing and Communication and maintenance Repairs Utilities and subscription Fees charges and professional Legal Commission Royalty and publicity Advertising Miscellaneous 31 EXPENSES ADMINISTRATIVE and other benefits Salaries, allowances and conveyance Traveling and taxes rates Rent, Insurance Depreciation Amortisation Entertainment Printing and stationery Communication maintenance and Repairs Utilities
2014 2014
- 7,874 - 62,963 25 25 125 125 - 306 150 150 673 673 500 569 569 3,891 366 275 206 294 Rupees in '000 Rupees in '000 Rupees in 2015 2015 261,900 261,900 241,465 139,662 139,662 70,486 78,360 1,006 1,270 2,272 6,431 50,802 3,969 9,799 100,028 70,879 5,846 210,541 42,364 220,331 298,691 2,695 2,369 2,545 2,219 21,020 18,582 15,116 49,204 6,575 6,642 48,204 366,388 9,804 329,843 10,713 7,969 1,100 1,000 200 150
31.2 2,695 2,369 31.3 6,345 6,004 21.4 20,416 14,942 Note Trust (LRBT), Mr. Najmus Saquib Hameed (Director) is also CEO of LRBT. is also CEO of LRBT. (Director) Najmus Saquib Hameed Mr. (LRBT), Trust
32 INCOME OTHER financial assets from Income on bank deposits Profit Gain on sale of investment non-financial assets from Income fee marketing Promotional sales Scrap assets fixed Gain on disposal of operating of royalty Reversal income Rent and handling income Storage on remeasurement income Imputed 31.3 Benevolent Rahmatulla Layton million) paid to Rs. 1.00 million (2014: of Rs. 0.15 include an amount Donation Company of the Subsidiary the auditors to Remuneration audit Statutory expenses Out of pocket and subscription Fee and publicity Advertising remuneration Auditors' Donation charges and professional Legal payments Ujrah Miscellaneous 31.1 include: expense and administrative distribution to relating Salaries and other benefits - Gratuity 31.2 fund provident to - Contribution remuneration Auditors’ of the Holding Company the auditors to Remuneration audit Statutory review Half yearly Certifications Consolidation expenses Out of pocket 31 (Continued) EXPENSES ADMINISTRATIVE
Annual Report - 2015 HASCOL 109 HASCOL Annual Report - 2015 110 - 2014 2014 Executives
Rupees in '000 Rupees in Rupees in '000 2014 2015 2015 Directors Directors 1 6 112 1,133,087 639,601 120,679 108,728 9.39 5.88 166,041 148,243 104,985 23,720 123,309 11,648 349,652 16,787 264,086 19,005 24,420 58,989 83,409 17,295 108,456 91,161 330,862 19,924 402,541 (287,302) (177,855) 63,484 224,686 Note Chief Executive Executive Rupees in '000 Executives 2015 Directors Directors 1 6 126 - 2,975 - - - - 1,830 - 8,148 - 18,101 16,643 1,087 1,087 1,616 8,010 911 1,056 4,888 2,322 778 12,450 1,398 371 7,026 3,603 3,603 3,913 33,950 3,179 2,776 27,230 26,092 26,092 40,033 206,132 30,011 44,820 169,992 Chief Executive Executive EPS equals basic EPS. diluted end consequently year at outstanding Cost of living allowance of living allowance Cost Number of persons statements as the total income falls under minimum/ presumptive tax regime of the Income Tax Ordinance, Ordinance, Tax of the Income tax regime under minimum/ presumptive falls income as the total statements 2001.
the year for Profit in shares-numbers of ordinary number average Weighted restated) thousands (2014: restated) in rupees (2014: Basic earning per share shares ordinary has no potential as the Company on basic earning per share e ect is no dilutive There remuneration Managerial 19,080 benefits Retirement 30,751 151,722 16,375 20,686 114,205 fee Director's of Reimbursement expenses medical Bonus 37 37 AND EXECUTIVES OF CHIEF EXECUTIVE, DIRECTORS REMUNERATION 33 COST FINANCE on borrowings Mark-up charges LC charges finance Lease charges Bank 34 CHARGES OTHER fund welfare Workers' - net loss Exchange 35 TAXATION Current Prior
36 EARNINGS PER SHARE - Basic and diluted Deferred 35.1 profit and accounting tax expense between Relationship in these financial has not been presented profit and accounting tax expense between relationship The 37.1 The Chief Executive O cer and certain executives, as explained in note 37, are also provided with the free use of Company maintained cars and cellular connections. In addition, the Chief Executive O cer and a Director are provided with free security services in accordance with the terms of employment.
38 RELATED PARTY TRANSACTIONS AND BALANCES
Amount due to/ from and other significant transactions, other than those disclosed elsewhere in these financial statements, are as follows:
Nature of relationship Nature of transaction 2015 2014 Rupees in '000 Associated companies
Sigma Motors (Private) Limited Sale of fuels 1,693 8,098 O ce rent 6,432 5,846 Marshal Gas (Private) Limited Purchase of fuels - 6,657 Sta retirement benefits/ contribution funds Provident fund Contribution 10,713 7,969 Gratuity fund Contribution 20,416 14,942
Key management personnel Salaries and benefits 63,150 184,450
Director Fee Fee for attending meeting 2,975 -
Other related parties Consultancy services 10,180 33,986 Expense reimbursement - 365 Balances
Associated companies
Sigma Motors (Private) Limited Trade debtors - 134 Other receivable 24,643 18,211 Marshal Gas (Private) Limited Trade creditors - 94
Expenses recovered from/ charged by related parties are based on actual expense.
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company directly or indirectly. The Company considers its Executive Director and Executives to be key management personnel.
39 CASH GENERATED FROM OPERATIONS 2015 2014 111 Note Rupees in '000 HASCOL Profit before taxation 1,196,571 864,287
Adjustment for: Depreciation and amortization 30 & 31 241,463 135,442 Provision for gratuity 21.4 20,416 14,942 Annual Report - 2015 Profit on bank deposits 32 (139,662) (70,486) Imputed income on remeasurement 32 (9,799) (42,364) Gain on sale of investments 32 - (7,874) Gain on disposal of operating fixed assets 32 (2,272) (3,969) Finance cost 33 349,652 264,086 Cash in bank account restricted during the year 40 - (8,276) Changes in working capital 39.1 3,124,096 (235,658) 4,780,465 910,130 HASCOL Annual Report - 2015 112 2014 2014
- (8,276) Rupees in '000 Rupees in '000 Rupees in 2015 2015 1,955,310 781,542 228,631 4,263,595 4,548,823 64,493 15,006 852,370 4,072,003 9,431,605 1,761,389 14,828 881,517 11,386,915 7,271,050 8,052,592 461,787 425,527 14,009,023 567,880 64,132 7,182,759 76,239 1,413,055 60,787 54,311 16,427,835 1,271,707 9,219,249 59,877 (4,996,314) (319,981) 285,228 (3,522,150) (4,630,001) (2,432,705) 15,960 65,125 119,097 7,754,097 (888,561) 3,286,492 3,124,096 (235,658)
2,658,948 481,406 13 4,072,003 1,761,389 24 24 (1,413,055) (1,271,707) 40 Note power project and other corporate customers. However, none of the customers exceeds 10% threshold. exceeds none of the customers However, customers. and other corporate project power
- bodies, independent agencies and autonomous governments dealers, to sells its product Company The - in Pakistan. located are 31, 2015 December as at of the Company assets All non-current - segment. on the basis of a single reportable been prepared have statements financial These - of the Company. revenue of total 99.92%) % (2014: 99.92 represent product petroleum Sales from - in Pakistan. customers to 100 %) related 100 % (2014: sales of the Company, Out of total Financial assets sale for Available investments Long-term amortised cost At deposits Long-term debts Trade Advances Other receivables Cash and bank balance Financial liabilities amortised cost At - secured finances Long-term lease finance subject to assets Liabilities against deposits Long-term and other payables Trade accrued Mark-up secured - running finances Short-term 42 CATEGORY BY FINANCIAL INSTRUMENTS assets in current / (Increase) Decrease Stock-in-trade debts Trade Advances and other receivables prepayments Deposits, liabilities in current Increase and other payables Trade 40 capital in working Changes EQUIVALENTS AND CASH CASH 39.1 39.1 capital working in Changes balance Cash and bank - secured running finances Short-term cash Restricted 41 SEGMENTS OPERATING Fair Fair Value Value
December 31 2014 December December 31, 2014 December amount amount Carrying Carrying
Rupees in '000 Rupees in '000 Fair Fair Value Value
December 31 2015 December December 31, 2015 December amount amount Carrying Carrying 461,787 461,787 567,880 567,880 1,955,310 1,955,310 228,631 4,263,595 4,263,595 781,542 4,548,823 4,548,823 228,631 15,006 781,542 852,370 4,072,003 64,493 4,072,003 852,370 11,386,915 1,761,389 15,006 11,386,915 64,493 1,761,389 8,052,592 881,517 8,052,592 14,828 881,517 14,828 425,527 425,527 64,132 14,009,023 14,009,023 7,182,759 54,311 76,239 7,182,759 1,413,055 64,132 1,413,055 76,239 54,311 60,787 1,271,707 1,271,707 59,877 60,787 59,877 16,427,835 16,427,835 9,219,249 9,219,249
Valuation techniques using significant unobservable inputs. This category includes all instruments includes all instruments category inputs. This using significant unobservable techniques Valuation Quoted market price (unadjusted) in an active market. market. in an active (unadjusted) price market 1: Quoted Level inputs. based on observable techniques 2: Valuation Level willing parties in arms length transaction. in arms length willing parties as follows: are where the valuation technique includes inputs not based on observable data. data. includes inputs not based on observable technique the valuation where do the instruments unless techniques using valuation values fair determines the Company financial instruments measured. cannot be reliably value and whose fair market in an active price quoted a market/ not have equity rates, exchange currency foreign bond and equity prices, rates, includes risk-free techniques in valuation that determination value a fair at arrive is to techniques of valuation objective The prices. and equity index by been determined have would that date sheet the balance at instrument the financial of price the reflects length. arm’s participants acting at market of the inputs used in making the measurements: the significance reflects Level 3: b) Valuation of financial instruments instruments financial of Valuation b) - secured finances term Long subject to assets Liabilities against Financial Liability Assets Financial knowledgeable between settled, or a liability be exchanged, could an asset which is the amount for value Fair carrying amounts versus values Fair a) sheet, in the balance shown with the carrying amounts together and liabilities, of financial assets values fair The investments Long-term deposits Long-term debts Trade Advances Other receivables balances Cash and bank lease finance deposits term Long accrued Mark-up and other payables Trade - secured running finances Short term 42.1 42.1 and liabilities assets of financial values Fair all other For prices. market based on quoted are markets in active traded are that of financial assets values Fair inputs used and model. Assumptions flow cash include discounted the Company used by techniques Valuation that hierarchy value fair the following using value fair measures the Company In case of equity instruments,
Annual Report - 2015
HASCOL 113 HASCOL Annual Report - 2015 114 Total Total Level 3 Level Level 3 Level Rupees in '000 Rupees in '000 Level 2 Level Level 2 Level Level 1 Level Level 1 Level 781,542 - - 781,542 1,955,310 - - 1,955,310
assets assets December 31, 2015 December inputs and a higher degree of management judgement and estimation in the determination of fair value. value. of fair in the determination and estimation judgement management of higher degree and a inputs model valuation of the appropriate selection for required usually are estimation judgement and Management and selection being valued instrument on the financial cash flows future of expected be used, determination to Company, to set appropriate risk limits and controls, and to monitor risk and adherence to limits. Risk to risk and adherence monitor to and risk limits and controls, set appropriate to Company, the and conditions changes in the market reflect to regularly reviewed are management policies and systems aims to and procedures, standards and management its training through Company activities. The Company's and their roles understand in which all employees environment control a disciplined and constructive develop obligations. the by the risks faced to in relation of risk management framework the adequacy and review procedures, Company. - 43.1.1) risk (Note Market - 43.1.2) (Note risk of credit risk and concentration Credit - 43.1.3) Liquidity risk (Note activities. and investing its operating both from result which risks, other price certain and risk rate interest risk, within an acceptable risk exposures market manage and control risk management is to of market objective The risk includes: market The range. Company's risk management framework. The Board is responsible for developing and monitoring the and monitoring developing for is responsible Board The risk management framework. Company's risk management policies. Company's level in the fair value hierarchy into which the fair value measurement is categorised: measurement value which the fair into hierarchy value fair in the level
of appropriate discount rates, etc. etc. rates, discount appropriate of December 31, 2014 December unobservable significant requires market is no active there which for securities valuing models for Valuation Available-for-sale financial assets securities Equity financial financial Available-for-sale and risk management policies with the Company's compliance management monitors how oversee Board The its use of financial instruments: risks from the following to has exposure Company The 43.1.1 risk Market currency to specifically and instruments financial of use its through risk market to exposed is Company The the by faced risks the analyze and identify to established are policies management risk Company's The 43 DISCLOSURES RELATED AND 43.1 FINANCIAL INSTRUMENTS Financial risk management of the and oversight the establishment for responsibility has overall (the Board) of Directors Board The the by period the end of the reporting at value fair at measured instruments equity analyses table below The securities Equity 100 bp decrease
Equity 100 bp increase
Rupees in '000 100 bp decrease
Profit and loss Profit (15,749) (15,749) 15,749 (10,552) 10,552 100 bp (22,376) (22,376) 22,376 (14,992) 14,992 increase exchange rates. It arises mainly where receivables and payables exist due to transactions entered into foreign foreign into entered transactions due to exist payables and receivables mainly where It arises rates. exchange foreign to risk in respect currency to exposed and is thus product imports petroleum Company The currencies. PKR equivalent million) having USD 35.58 million (2014: USD 50.37 end amount to the year at which creditors, Rs. is year the during applied rates average The million). 3,586.96 Rs. (2014: million 5,287.17 Rs. of amount USD per Rs. 104.95 is 31, 2015 December as at spot rate and the USD) per 101.02 : Rs. (2014 per USD 102.69 per USD). : Rs. 100.80 (2014 incurred the Company Consequently, risk exposure. cannot hedge its currency the Company requirements, million) during the year. : Rs. 91.10 Rs. 58.90 million (2014 to amounting loss exchange Rs. million (2014: Rs. 529.80 by been lower/higher have would the year for profit constant, held other variables million). 358.00 liabilities finances, long-term arises due to exposure rate Interest rates. interest because of changes in market the interest sheet date the balance At running finances. and short term lease finance to subject assets against as follows: is summarized financial instruments bearing mark-up of the Company's profile rate currency in particular foreign all other variables, that assumes analysis This below. tax as shown before or loss constant. remain rates Cash flow sensitivity of variable rate instruments rate sensitivity of variable Cash flow risk rate Interest (b) will fluctuate of a financial instrument cash flows of the future value the fair risk is the risk that rate Interest regulatory Under markets. of currency monitoring close risk by its currency manages Company The analysis Sensitivity USD with all 10% against by Rupees had weakened/strengthened if the Pakistani 31, 2015, December As at instruments rate variable for sensitivity Cash flow profit (decreased) increased/ have would date the reporting at rates A change of 100 basis points in interest risk Currency (a) foreign a change in due to will fluctuate or a liability asset financial of the value that risk is the risk Currency / income (Expense) 31, 2015 December As at 31, 2014 December As at
Annual Report - 2015
HASCOL 115 (b) Interest rate risk (Continued)
E ective Exposed to yield/interest risk Non-interest bearing yield/ Maturity Maturity Sub- Total Maturity Maturity Sub- Total 2015 interest upto one after one upto one after one Total rate % year year year year Rupees in '000
Financial assets
Long-term investments - - - - 1,955,310 1,955,310 1,955,310 Long-term deposits - - - - 228,631 228,631 228,631 Trade debts - - - 4,263,595 - 4,263,595 4,263,595 Advances - - - 15,006 - 15,006 15,006 Other receivables - - - 852,370 - 852,370 852,370 Cash and bank balances 5.5 - 6.5 p.a. 3,684,616 - 3,684,616 387,387 - 387,387 4,072,003
(a) 3,684,616 - 3,684,616 5,518,358 2,183,941 7,702,299 11,386,915 Financial liabilities
Liabilities against assets subject to finance lease 8.43 - 13.26 p.a. 102,597 322,930 425,527 - - - 425,527 Long term finances - secured 9.41 - 13.19 p.a. 285,636 176,151 461,787 - - - 461,787 Long-term deposits - - - - (42,364) (42,364) (42,364) Trade and other payables - - - 14,009,023 - 14,009,023 14,009,023 Mark-up accrued - - - 54,311 - 54,311 54,311 Short-term running finances - secured 1,413,055 - 1,413,055 - - - 1,413,055 (b) 1,801,288 499,081 2,300,369 14,063,334 (42,364) 14,020,970 16,321,339
On balance sheet gap (a)-(b) 1,883,328 (499,081) 1,384,247 (8,544,976) 2,226,305 (6,318,671) (4,934,424)
E ective Exposed to yield/interest risk Non-interest bearing yield/ Maturity Maturity Sub- Total Maturity Maturity Sub- Total 2014 interest upto one after one upto one after one Total rate % year year year year Rupees in '000 Financial assets
Long-term investments - - - - 781,542 781,542 781,542 Long-term deposits - - - - 64,493 64,493 64,493 Trade debts - - - 4,548,823 - 4,548,823 4,548,823 Advances - - - 14,828 - 14,828 14,828 Other receivables - - - 881,517 - 881,517 881,517 Cash and bank balances 6.0 to 8.5 p.a. 1,613,347 - 1,613,347 148,042 - 148,042 1,761,389 116
HASCOL (a) 1,613,347 - 1,613,347 5,593,210 846,035 6,439,245 8,052,592
Financial liabilities
Liabilities against assets subject
to finance lease 12.36 to 17.35 p.a. 27,535 48,704 76,239 - - - 76,239 Annual Report - 2015 Long term finances - secured 12.28 to 15.49 p.a. 289,309 278,571 567,880 - - - 567,880 Long-term deposits - - - - 60,787 60,787 60,787 Trade and other payables - - - 7,182,759 - 7,182,759 7,182,759 Mark-up accrued - - - 59,877 - 59,877 59,877 Short-term running finances - secured 13.18 to 15.49 p.a. 1,271,707 - 1,271,707 - - - 1,271,707 (b) 1,588,551 327,275 1,915,826 7,242,636 60,787 7,303,423 9,219,249
On balance sheet gap (a)-(b) 24,796 (327,275) (302,479) (1,649,426) 785,248 (864,178) (1,166,657) (loss) in profit / in profit increase / increase (decrease) Hypothetical equity increase / increase Hypothetical shareholders (decrease) in (decrease) in price fair value fair Estimated hypothetical after change after Rupees in '000 at 30% at Hypothetical price change price Decrease (2,541,903) (586,593) - Decrease (1,016,005) (234,463) - Fair Fair value 781,542 781,542 Increase 1,016,005 234,463 - 1,955,310 1,955,310 Increase 2,541,903 586,593 -
selected end. The the year as at prices in market and a 30% decrease 30% increase of a hypothetical e ects scenarios. case worst or best the be to considered be could what reflect not does change hypothetical net on Company's of the e ect indication is not necessarily prepared the sensitivity analysis Accordingly, 100 index. of PSX in the level movement of future assets market prices (other than those arising from interest/mark-up rate risk or currency risk), whether those risk), whether those risk or currency rate interest/mark-up from those arising than (other prices market a ecting or factors its issuers, or financial instruments the individual specific to factors caused by are changes it since risk equity price to is exposed Company The in the market. traded financial instruments all or similar the ) at million 781.54 Rs. (2014: million Rs. 1,955.31 amounting to equity securities quoted in has investments sheet date. balance policies. management and investment risk discipline in internal subject are prices Market cost. carried at which are investments unquoted for except date reporting as of the di er may an investment of subsequent sale of as a result the amount realized and consequently fluctuation to perceived from result a security may of price in the market Fluctuation value. market the reported from be sale of a particular security may in the the amount realized Furthermore, condition. market and general being sold. quantity of the security the relative by a ected
31, 2015 December because of changes in market prices (other than those arising from interest rate risk or currency risk), whether risk), currency or risk rate interest from those arising than (other prices market in changes because of Company The issuer. its or instrument financial individual the to specific factors by caused changes are those the Company. to available is no such type of financial instruments risk as there such price to is not exposed Rs. 8,052.13 of Rs. 11,386.45 million (2014: financial assets of the total Out incur a financial loss. other party to Rs. million (2014: Rs. 5,359.60 risk amounting to credit subject to which are million), the financial assets million). 5,509.66 the and shows and 2014 31, 2015 December risk as of equity price the Company's summarizes table below The price market based on quoted all instance, in almost risk are, price equity subject to of investment value The and implementing strict equity securities in quoted exposure monitoring risk by manages price Company The investment of alternative price the relative investee, of the characteristics economic changes in the underlying Sensitivity analysis Risk Price (c) in the of changes because fluctuate will of a financial instrument value the fair the risk that risk represents Price
31, 2014 December
risk Other price (d) will fluctuate of the financial instruments cash flows of future value the fair risk is the risk that Other price 43.1.2 risk of credit risk and concentration Credit and cause the an obligation discharge to fail will a financial instrument one party to risk is the risk that Credit
Annual Report - 2015
HASCOL 117 The credit quality of receivables can be assessed with reference to the historical performance with no or some defaults in recent history. The Company manages credit risk of receivables through the monitoring of credit exposures, limiting transactions with specific customers and continuous assessment of credit worthiness of its customers.
The carrying values of financial assets which are neither past due nor impaired are as under: 2015 2014 Rupees in '000 Long-term deposits 228,631 64,493 Trade debts 4,263,595 4,548,823 Advances 15,006 14,828 Other receivables 852,370 881,517 Cash and bank balance 4,072,003 1,761,389 9,431,605 7,271,050
The credit risk for cash and cash equivalents is considered to be negligible, since the counterparties are reputable banks and institutes with high quality external credit ratings. The credit quality of bank balances that are neither past due nor impaired can be assessed with reference to external credit ratings as follows:
Banks Rating Short Long Banks Rating Short Long Agency term term Agency term term
Allied Bank Limited PACRA A1+ AA+ Silkbank Limited JCR- VIS A1+ AA Askari Bank Limited JCR- VIS A1+ AA Sindh Bank Limited JCR- VIS A1+ AA Bank Al Falah Limited PACRA A1+ AA Soneri Bank Limited PACRA A1+ AA- Bank Al Habib Limited PACRA A1+ AA+ Standard Chartered Bank Islami Pakistan Limited PACRA A1 A Bank (Pakistan) Limited PACRA A1+ AAA Bank of Punjab Limited PACRA A1+ AA- Summit Bank Limited JCR- VIS A1 A Habib Metropolitan United Bank Limited JCR- VIS A1+ AA+ Bank Limited PACRA A1+ AA+ First Women Bank Limited PACRA A2 BBB+ Habib Bank Limited JCR- VIS A1+ AAA The Bank of Khyber JCR- VIS A1 A- JS Bank Limited PACRA A1 A+ Burj Bank Limited JCR- VIS A2 A- MCB Bank Limited PACRA A1+ AAA Industrial and Commercial Meezan Bank Limited JCR- VIS A1+ AA Bank of China Limited S&P A National Bank of Pakistan JCR- VIS A1+ AAA NIB Bank Limited PACRA A1+ AA- Samba Bank Limited JCR- VIS A1 AA
43.1.3 Liquidity risk
Liquidity risk reflects the Company's inability of raising funds to meet commitments. Management closely monitors the Company's liquidity and cash flow position. This includes maintenance of balance sheet liquidity 118
ratios, debtors and creditors concentration both in terms of overall funding mix and avoidance of undue HASCOL reliance on large individual customers.
As at December 31, 2015 the Company's financial liabilities have contractual maturities as summarised below: Within one Over one Total
year year Annual Report - 2015 Rupees in '000
Long-term finances - secured 285,636 176,151 461,787 Liabilities against assets subject to finance lease 102,597 322,930 425,527 Long-term deposits - 64,132 64,132 Trade and other payable 14,009,023 - 14,009,023 Mark-up accrued 54,311 54,311 Short-term running finances - secured 1,413,055 - 1,413,055 15,864,622 563,213 16,427,835 As at December 31, 2014 the Company's liabilities had contractual maturities as summarised below:
Within one Over one Total year year Rupees in '000
Long-term finances - secured 289,309 278,571 567,880 Liabilities against assets subject to finance lease 27,535 48,704 76,239 Long-term deposits - 60,787 60,787 Trade and other payable 7,182,759 - 7,182,759 Mark-up accrued 59,877 - 59,877 Short-term running finances - secured 1,271,707 - 1,271,707 8,831,187 388,062 9,219,249
44 CAPITAL RISK MANAGEMENT OBJECTIVES AND POILCIES
The Board's policy is to maintain a strong capital base so as to maintain investors', creditors' and market's confidence and to sustain future development of the business, safeguard the Company's ability to continue as going concern in order to provide returns for shareholders and benefit for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Board monitor the return on capital, which the Company defines as net profit/(loss) after tax divided by total shareholders' equity. The Board also monitor the level of dividend to ordinary shareholders subject to the availability of funds.
The Company finances its operations through equity, borrowings and management of working capital with a view to maintain an appropriate mix between various sources of finance to minimize risk.
2015 2014 Rupees in '000
Total borrowings 2,300,369 1,915,826 Cash and bank balance (4,072,003) (1,761,389) (Excess cash over debt) / net debt (1,771,634) 154,437 Total Equity 4,528,197 2,778,057 Total Capital 2,756,563 2,932,494 Gearing ratio 0.00% 5.27%
45 EMPLOYEES PROVIDENT FUND
The Company operates approved provident fund for its employees. Details of assets and investments of the fund is as follows: 2015 2014 119
HASCOL Size of fund - total assets (Rupees in '000) 54,856 41,656
Cost of investments made (Rupees in '000) 52,662 35,955
Percentage of investments made 100% 100% Annual Report - 2015 Fair value of investments (Rupees in '000) 54,856 41,656
The management, based on the un-audited financial statements of the fund, is of the view that the investments out of the provident fund have been made in accordance with the provision of section 227 of the Companies Ordinance, 1984 and the rules formulated for the purpose.
46 NUMBER OF EMPLOYEES 2015 2014
Total number of employees at year-end 394 292
Average number of employees during the year 359 259
47 SUBSEQUENT EVENT
The Company issued 400,000 Privately Placed Sukkuk Units (PPSUs) having face value of Rs. 5,000.00 each. The issue resulted in cash receipts of subscription money amounting Rs. 2,000.00 million on January 07, 2016 from 23 participants. The Sukkuk certificates carry profit at the rate of 3 months KIBOR plus 1.5% with quarterly rental payments for a tenure of 6 years from the closing date with 1 year grace period. These certificates are raised to generate funds under Islamic mode of financing.
48 GENERAL
All amounts have been rounded to the nearest thousand.
The corresponding figures have been reclassified/re-arranged where considered necessary for the purpose of better presentation. However, no material reclassification/re-arrangement have been made in these financial statements.
49 DATE OF AUTHORISATION
These financial statements have been authorised for issue on March 30, 2016 by the Board of Directors of the Company.
120 HASCOL Annual Report - 2015
Mumtaz Hasan Khan Najmus Saquib Hameed Chairman & Chief Executive Director Form of Proxy Form of Proxy 14th Annual General Meeting
The Company Secretary Hascol Petroleum Limited The Forum, Suite No. 105-106, 1st Floor, Khayaban-e-Jami, Clifton, Karachi.
I / We______of ______being member(s) of Hascol Petroleum Limited and holder of ______ordinary shares as per Share Register Folio No. ______and/or CDC Participant I.D. No. and Sub Account No.______, hereby appoint ______of ______or failing him / her ______of ______as my / our proxy in my / our absence to attend and vote for me / us and on my / our behalf at the 14th Annual General Meeting of the Company to be held on Thursday, 28th April 2016, and at any adjournment thereof.
As witness my / our hands / seal this ______day of ______2016.
Rs. 5/- Witness No.1 Revenue Stamp Name ______Address ______CNIC ______Signature (Signature should agree with the specimen signature required with the Company) Witness No.2
Name ______Address ______CNIC ______
Important
1. This proxy form, duly completed and signed, must be received at the registered o ce of the Company at The Forum, Suite No. 105-106, 1st Floor Khayaban-e-Jami, Clifton, Karachi, not less than 48 hours before the time of holding the Meeting.
2. Members are requested:
(a) To a x Revenue Stamp of Rs. 5/- at the place indicated above; and (b) To sign across the Revenue Stamp in the same style of signature as is registered with the Company. For CDC account holder(s) / corporate entities In addition to the above the following requirements have to be met: i) the proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be stated on the form; ii) attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form; iii) the proxy shall produce his / her original CNIC or original passport at the time of the meeting; and iv) in case of corporate entity, the Board of Directors’ resolution / power of attorney with specimen signature shall be submitted (unless it has been provided earlier) along with proxy form to the Company.