Contents Notice of the Meeting 02 Company Information 03 Directors» Report 04 Auditors» Reports to the Members 05 Balance Sheet 06 Income and Expenditure Account 07 Cash Flow Statement 08 Notes to the Financial Statements 09 Industrial Collective Members 17 Individual Members 19 Form of Proxy Notice of the Meeting To – All members Notice is hereby given that the 51st Annual General Meeting of the Petroleum Institute of Pakistan will be held at the Ambassador 3, Karachi Marriott Hotel, 9 Abdullah Haroon Road, Karachi on December 18, 2014 at 1600 hours to transact the following business: 1. To confirm the minutes of the 50th Annual General Meeting held on December 19, 2013. 2. To receive and adopt Report of Directors and Auditors together with audited financial statement of the Institute for the year ended June 30, 2014. 3. To appoint Auditors of the company and to fix their remuneration for the year 2014-2015. 4. To transact any other ordinary business of the Institute. By Order of the Board S. Nazeer Iqbal Company Secretary Karachi November 26, 2014 Note: 1. The members entitled to attend and vote at the above meeting may appoint a member as proxy to attend and vote in place of the member at the meeting. Proxies in order to be effective must be received at the Company»s Registered Office not later than 1600 hours on December 16, 2014. 2. Members are requested to notify the company of any change in their addresses. 02 51st Annual Report 2014 Company Information Board of Directors Dr. Asim Hussain Chairman Mr. M. Aslam Sanjrani Chief Executive Officer Mr. Tariq Khamisani Mr. M. Arif Hameed Mr. Aftab Husain Mr. Omar Yaqoob Sheikh Mr. S. Tariq Rizavi Mr. Sh. Imran-ul-Haque Mr. Hassan Sobuctageen Mr. Mobin Saulat Mr. M. Adil Khattak Mr. Amjad Parvez Janjua Mr. Shoaib Warsi Honorary Treasurer: Mr. Abdul Malik Company Secretary: Mr. S. Nazeer Iqbal Auditors: A.F. Ferguson & Co. Chartered Accountants State Life Building No. 1-C I.I. Chundrigar Road, Karachi Registered Office: 1st Floor, Federation House ST. 28, Block V, Kehkashan Clifton, Karachi. Tel: 021-35378701-02 Fax: 021-35378704 E-mail: [email protected] Website: www.pip.org.pk 51st Annual Report 2014 03 Directors» Report The Directors have pleasure in presenting the 51st Annual Report of the Institute together with the audited financial statements of the Institute and the Auditors’ Report thereon for the year ended June 30, 2014 Financial Result Rupees The surplus for the year, after providing for all operational, and administrative expenses amounted to 1,150,715 LESS: Taxation Current tax -for the year 79,216 -for prior years 930,525 Deferred tax 76,376 1,086,117 Total Surplus / (Deficit) for the year 64,597 ADD: Balance to surplus account brought forward from previous years 25,832,352 Surplus for the year as at June 30, 2014 25,896,949 Auditors The present Auditors, Messrs A.F.Ferguson & Co., retire and , being eligible, offer themselves for re-appointment. On behalf of the Board Dr. Asim Hussain Chairman 04 51st Annual Report 2014 Auditors» Report to the members We have audited the annexed balance sheet of Petroleum Institute of Pakistan as at June 30, 2014 and the related income and expenditure account and cash flow statement together with the notes forming part thereof, for the year then ended and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. It is the responsibility of the Company’s management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984. Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that: (a) in our opinion, proper books of accounts have been kept by the Company as required by the Companies Ordinance, 1984; (b) in our opinion: (i) the balance sheet and income and expenditure account together with the notes thereon have been drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of accounts and are further in accordance with accounting policies consistently applied; (ii) the expenditure incurred during the year was for the purpose of the Company’s business; and (iii) the business conducted, investments made and the expenditure incurred during the year were in accordance with the objects of the Company; (c) in our opinion and to the best of our information and according to the explanations given to us, the balance sheet, income and expenditure account and cash flow statement together with the notes forming part there of conform with the approved accounting standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so required, and respectively give a true and fair view of the state of the Company’s affairs as at June 30, 2013 and of the surplus and its cash flows for the year then ended; and (d) in our opinion no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980). A. F. Ferguson & Co. Chartered Accountants Karachi Date: 24 November 2014 Engagement Partner: Waqas A. Sheikh 51st Annual Report 2014 05 Balance Sheet As at June 30, 2014 Note 2014 2013 Rupees Rupees ASSETS Non-Current Assets Property, plant and equipment 3 1,112,725 1,257,005 Deferred taxation 4 10,304 86,680 1,123,029 1,343,685 Current Assets Short term investments 5 23,302,676 23,049,444 Subscriptions receivable 762,000 1,379,000 Deposits, prepayments and other receivables 6 2,463,817 548,810 Taxes recoverable 2,490,786 2,435,172 Cash and bank balances 7 3,472,771 2,166,196 32,492,050 29,578,622 33,615,078 30,922,307 SURPLUS ACCOUNT Balance at beginning of the year 25,832,352 20,138,384 Surplus for the year 64,597 5,693,968 25,896,949 25,832,352 LIABILITIES Non-Current Liabilities Staff retirement gratuity 8 1,544,697 740,592 Current Liabilities Trade and other payables 9 6,173,432 4,349,363 Contingencies and Commitments - - 33,615,078 30,922,307 The annexed notes 1 to 19 form an integral part of these financial statements. M. Aslam Sanjrani Aftab Husain Chief Executive Officer Director 06 51st Annual Report 2014 Income and Expenditure Account For The Year Ended June 30, 2014 Note 2014 2013 Rupees Rupees Income from - Subscriptions 10 17,769,945 16,458,060 - Short term investments 11 2,053,232 1,498,321 - Seminars and Executive Learning Centre (net) 12 72,110 2,416,329 - Sale of Pakistan Energy Outlook booklet 90,000 137,000 - Sponsorship of PIP Supplement (net) - 700,550 - Savings bank account 136,376 - - Other income 13 30,000 293,857 20,151,663 21,504,117 Less: Expenditure Subscriptions 1,078,448 987,666 Salaries and allowances 14 8,952,974 7,968,924 Pakistan Energy Outlook updation - 1,767,600 Provision for staff retirement gratuity - net 804,105 (203,150) Medical 312,047 130,871 Travelling and conveyance 2,126,611 820,934 Rent and electricity 2,384,934 1,325,654 Printing and stationery 449,443 155,375 Repairs and maintenance 481,662 344,585 Postage and telephone 463,658 316,106 Promotional and website maintenance 174,401 78,058 Insurance 70,439 63,131 Depreciation 3 560,898 510,101 Auditors’ remuneration - Audit fee 88,000 88,000 - Special/Other engagements 45,800 - - Tax consultancy fee 352,101 146,521 485,901 234,521 Legal and professional 92,813 168,218 Receivables written-off 15 50,000 459,227 Meeting expenses 192,178 330,347 Entertainment 123,668 147,212 Miscellaneous 196,768 181,067 19,000,948 15,786,447 Surplus before taxation 1,150,715 5,717,670 Taxation 16 (1,086,117) (23,702) Surplus for the year transferred to Surplus Account 64,597 5,693,968 The annexed notes 1 to 19 form an integral part of these financial statements. M. Aslam Sanjrani Aftab Husain Chief Executive Officer Director 51st Annual Report 2014 07 Cash Flow Statement For The Year Ended June 30, 2014 Note 2014 2013 Rupees Rupees Cash flow from operating activities Cash generated from operations 17 988,548 8,210,167 Gratuity paid - (191,494) Taxes paid (1,065,355) (986,728) Net cash (utilized in) / generated from operating activites (76,807) 7,031,945 Cash flow from investing activities Purchase of property, plant and equipment (416,618) (142,000) Proceeds from disposal of property, plant and equipment - 21,294 Investments made during the year (3,000,000) (23,000,000) Investments encashed during the year 3,000,000 15,000,000 Income received on investments 1,800,000 1,800,986 Net cash generated from (utilized in) / investing activities 1,383,382 (6,319,720) Net increase in cash and cash equivalents 1,306,575 712,225 Cash and cash equivalents at beginning of the year 2,166,196 1,453,971 Cash and cash equivalents at end of the year 7 3,472,771 2,166,196 The annexed notes 1 to 19 form an integral part of these financial statements.