ANNUAL REPORT Attock Petroleum Limited ANNUAL REPORT 2018 Attock House, Morgah, Rawalpindi, Pakistan. Tel: +92-51-5127250-54, Fax: +92-51-5127255 Attock Petroleum Limited Email: [email protected] www.apl.com.pk Growth on STRONG 2018 FOOTING ATTOCK PETROLEUM LIMITED DESIGN MEDIA INC. Scan QR code to access nancial reports online Design by: & Produced APL ANNUAL REPORT 2018 FINANCIAL HIGHLIGHTS PROFIT OPERATING AFTER TAX PROFIT Rs. 5,656 GROSS Rs. 8,085 million PROFIT million 7% 27% Rs. 9,743 million 33% EARNINGS PER SHARE NET SALES Rs. 68.19 REVENUE 7% Rs. 177,344 million 12 28% TABLE OF CONTENTS Introduction (2-21) Review Report on Statement of Compliance Our Vision, Our Mission (3) with the Code of Corporate Governance (90) Corporate Strategy (4) Statement of Compliance with the Code of Core Values (6) Corporate Governance (91) Management’s Objectives & Strategies (8) Financial Analysis (93-106) Code of Conduct (10) DuPont Analysis (94) Geographical Presence & Brief Company Key Operating and Financial Profile and Group Structure (16) Data for Six Years (95) Quality Policy Statement (18) Vertical Analysis (98) Environment, Health & Safety Policy (19) Horizontal Analysis (99) Product Portfolio (20) Graphical presentation (100) Comments on Financial Analysis (103) Chairman’s Review (22-23) Statement of Economic Value Added (104) Chairman’s Review (22) Analysis of Variation in Results of Governance (24-92) Interim Reports (105) Board of Directors (26) Statement of Charity Account (105) Statement of Value Added (106) Profile of Board of Directors (28) Board Committees and Corporate Financial Statements (107-166) Information (32) Independent Auditor’s Report to the Whistle Blower Protection Members (109) Mechanism Policy (33) Statement of Financial Position (114) Board Committees and their Terms Statement of Profit or Loss (116) of Reference (34) Statement of Comprehensive Income (117) Management Committees (37) Statement of Cash Flows (118) Statement of Changes in Equity (119) Directors’ Report (39) Notes to and forming part of the Pattern of Shareholding (60) Financial Statements (120) Other Corporate Governance Matters (64) Corporate Sustainability (70) Annual General Meeting (167-169) Human Resource Management (74) Notice of Annual General Meeting (167) Social and Environmental Responsibility (75) Prospects of the Entity including Targets for Definition & Glossary of Terms (170) Financial and Non-Financial Measures (76) Directors’ Report (Urdu) (190) Proxy Form Risk and Opportunity Report (77) Proxy Form (Urdu) Segmental Review of Business Performance (81) Audit Committee & Internal Control Framework (82) Share Price Sensitivity Analysis (83) Calendar of Major Events (84) Information Technology Governance (86) Organizational Chart (88) APL ANNUAL REPORT 2018 2 OUR VISION To become a world class, professionally managed, fully integrated, customer focused, Oil Marketing Company, offering Value added quality & environment friendly products and services to its customers in Pakistan and beyond. OUR MISSION To continuously provide quality and environment friendly petroleum products and related services to industrial, commercial and retail consumers, and exceeding their expectations through reliability, economy and quality of products and services. We are committed to benefiting the community and ensuring the creation of a safe, responsible and innovative environment geared to client satisfaction, end user gratification, employees’ motivation and shareholders value. 3 APL ANNUAL REPORT 2018 CORPORATE STRATEGY To enable APL to attain new heights of success through investment in human capital, implementation of lean production methods and a commitment to Total Quality and Environment Management, we plan, with the help of Almighty Allah, to further expand our existing retail network and penetrate untapped markets with pro-active measures and effective planning, implementation and execution. Our objective is to successfully deliver premium quality products and services, which will translate into maximum customer satisfaction. Beyond the technical excellence of our products, we intend to set an example in all dimensions of our entrepreneurial activities. We see ourselves committed to the self defined models of economic, social and ecological responsibility, which means not only economic success but also conscientious interaction with our employees, people and the environment. 4 5 APL ANNUAL REPORT 2018 ETHICAL PRINCIPLES AND MORAL VALUES We promote a commitment to the highest moral values and ethical principles, demanding both personal and professional dedication towards the realization of these values and principles. MAXIMUM STAKEHOLDER RETURN Through our streamlined business processes and commitment to total quality management we seek to ensure maximum company performance and rewards for shareholders and stakeholders alike. CORPORATE SOCIAL CITIZENSHIP We strongly believe in the promotion of societal well-being and awareness within ones community, actively engaging in activities and initiatives to meet this objective. COMMITMENT & COOPERATION Two core fundamentals for the success of any business CORE VALUES are complete employee commitment and cooperation. At APL we foster an environment of solid teamwork and professionalism to ensure that our employees engage in both personal and professional development. ENVIRONMENT CONSCIOUSNESS We believe that it is our responsibility to safeguard our natural resources for future generations and actively engage in environment friendly practices, policies and management techniques. APL ANNUAL REPORT 2018 MANAGEMENT’S and there is no significant outlets along with customer OBJECTIVES AND change from the previous base. It also includes STRATEGIES FOR MEETING years. enhancement of storage THOSE OBJECTIVES capacities, improvement in The objectives of the RELATIONSHIP BETWEEN operational performance, Company are defined in THE COMPANY’S RESULTS efficiency in supply chain a manner such that the & MANAGEMENT’S management, maintaining realization of short-term OBJECTIVES safe work environment, goals leads to achieving those In the year under review, develop workforce diversity objectives. The management volatility of oil prices at and increase in shareholders’ formulates strategies keeping global stage demanded wealth. Management believes in view the vision and mission dexterous steering by the that current critical measures statement of the Company. A Company’s management to performance continue to be balanced approach is adopted achieve better profitability. relevant in future as well. in this regard to come up APL maintained its market The Company monitors the to the expectations of all presence by venturing into performance of its business stakeholders. Actions are a variety of projects and through detailed operational prioritized and performance effectively managing the and financial reporting, such objectives are periodically stock. The Company added as profitability & investment/ assessed to reduce deviations a number of retail outlets market ratios and analysis, also from the corporate strategy of during the year and is in the with comparisons to budgets the Company. process of establishing bulk and updated forecasts being The management takes terminals, APL enhanced its routinely made. In order to measures to transform the storage capacity to cater assess performance against weaknesses into strengths and the demand of the country. targets and objectives, threats into opportunities. The Company is en-route to the Company has a Long term goals can only go above and beyond the comprehensive measurement be achieved by mitigating expectations of the investors system in place. The Company the risks and minimizing the and the customers. also engages external bodies threats arising due to change such as ISO-9001 Quality in external and internal CRITICAL PERFORMANCE Management System to environment. MEASURES measure performance. The critical performance SIGNIFICANT CHANGES measures and indicators IN OBJECTIVES AND against stated objectives STRATEGIES FROM of the Company include PREVIOUS PERIODS delivering premium quality Management believes that products and services with our business objectives and customers’ satisfaction, strategies are well planned increase in number of retail 8 9 APL ANNUAL REPORT 2017 CODE OF CONDUCT Attock Petroleum Limited has committed itself to conduct its business in an honest, ethical and legal manner. The Company wants to be seen as a role model in the community by its conduct and business practices. All this depends on the Company’s personnel, as they are the ones who are at the forefront of Company’s affairs with the outside world. Every member of the Company has to be familiar with his/her obligations in this regard and has to conduct him/her accordingly. This statement in general is Respect, Honesty and to comply and take all in accordance with Company Integrity reasonable actions for goals and principles that must Directors and employees are compliance, with all be interpreted and applied expected to exercise honesty, applicable laws, rules and within the framework of laws objectivity and due diligence regulations of state or local and customs in which the in the performance of their jurisdiction in which the Company operates. This code duties and responsibilities. Company conducts business. will be obligatory for each They are also directed to Every director and employee, director and employee to perform their work with due no matter what position he adhere to. professionalism.