Page 205 - Pakistan Oilfields Limited - Annual Report 2021

NOTES TO AND FORMING

PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2021

8.1 The Group has set aside an insurance reserve for self insurance of assets which have not been insured
and for deductibles against insurance claims.

8.2 This includes Rs 1,557,794 (2020: Rs 1,557,941) set aside by POL on account of gain on sale of
investments as investment reserve to meet any future losses/ impairment on investments.

2021 2020
Rupees ('000)

9. LONG TERM DEPOSITS

Security deposits from distributors against equipment 929,635 921,899
Security deposits from distributors against
distributorship and others 59,124 63,102
988,759 985,001

9.1 Amount received as security deposit is utilized/utilizable by the Group in accordance with the related
agreements with customers.
2021 2020
Rupees ('000)
10. DEFERRED LIABILITIES

Provision for deferred income tax - note 10.1 5,840,426 5,831,957
Provision for decommissioning costs - note 10.2 14,389,227 14,089,542
Provision for staff compensated absences 3,299 6,768
Provision for un-funded gratuity plan - CAPGAS 7,862 5,642
20,240,814 19,933,909

10.1 Provision for deferred income tax

The provision for deferred income tax represents:

Temporary differences between accounting and
tax base of non current assets 6,162,545 6,095,637
Provision for stores and spares (191,873) (173,851)
Provision for doubtful receivable (93) (93)
Deferred tax on remeasurement loss on staff retirement
benefit plans (130,153) (89,736)
5,840,426 5,831,957

10.2 Provision for decommissioning costs

Balance brought forward 14,089,542 11,811,608
Revision due to change in estimates - note 10.2.1 (193,498) 65,806
Provision made during the year 335,429 173,660
Unwinding of discount 1,123,961 1,594,927
Exchange (gain) / loss (869,170) 611,283
Decommissioning cost incurred during the year (97,037) (167,742)
14,389,227 14,089,542

ANNUAL REPORT 2021 203