Page 217 - Pakistan Oilfields Limited - Annual Report 2021

NOTES TO AND FORMING

PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2021

17.4 The carrying value of investment in National Refinery Limited at June 30, 2021 is net of impairment 2021 2020
loss of Rs 3,808,877 thousand (2020: Rs 5,434,289 thousand). The Group has assessed the recoverable Rupees ('000)
amount of the investment in National Refinery Limited based on higher of the value-in-use (VIU) and
fair value (level 1 in the fair value hierarchy - quoted market price as at June 30, 2021). VIU is based 19.2 Provision for slow moving items
on a valuation analysis carried out by an external investment advisor engaged by the Company. VIU
of Rs 492 per share has been assessed on discounted cash flow based valuation methodology which Balance brought forward 579,503 537,017
assumes an average gross profit margin of 3.80% (2020: 3.43%), terminal growth rate of 4% (2020: Provision for the year 60,072 42,486
3%) and capital asset pricing model based discount rate of 20.05% (2020: 18.20%). 639,575 579,503
17.5 Based on a valuation analysis carried out by the management, the recoverable amount of investment 19.3 Stores and spares include items which may result in fixed capital expenditure but are not yet
in Attock Petroleum Limited exceeds its carrying amount. The recoverable amount has been distinguishable.
estimated based on a value in use calculation. These calculations have been made on discounted 2021 2020
cash flow based valuation methodology which assumes an average gross profit margin of 4.46% Rupees ('000)
(2020:3.60%), a terminal growth rate of 4.0% (2020: 4.0%) and a capital asset pricing model based
discount rate of 16.51% (2020: 15.43%). 20. STOCK IN TRADE
2021 2020 Crude oil and other products - note 20.1 298,357 404,494
Rupees ('000)
20.1 These include Rs 37,731 thousand (2020: Rs 22,824 thousand) being the Company’s share in joint
18. LONG TERM LOANS AND ADVANCES, CONSIDERED GOOD operations.
2021 2020
Long term loans and advances to employees 58,285 51,511
Less: Amount due within twelve months, shown Rupees ('000)
under current loans and advances - note 22 21,139 24,788 21. TRADE DEBTS - Considered good
37,146 26,723
Due from related parties - note 21.1 3,750,557 2,212,489
18.1 Loans and advances to employees are for general purpose and for house rent advance which are Others 3,588,509 5,421,591
recoverable in up to 60 and 36 equal monthly installments respectively and are secured by an 7,339,066 7,634,080
amount due to the employee against provident fund. These loans and advances are interest free.
These do not include any amount receivable from the Chief Executive and Directors. These loans 21.1 Due from related parties
have not been discounted, as the impact is considered insignificant.
Associated companies
2021 2020 Attock Refinery Limited 3,691,129 1,906,780
Rupees ('000) National Refinery Limited 49,507 304,969
Attock Petroleum Limited 9,921 740
19. STORES AND SPARES
3,750,557 2,212,489
Stores and spares - note 19.1 5,299,071 5,077,887
Less: Provision for slow moving items - note 19.2 639,575 579,503 Ageing analysis of trade debts receivable from related parties is given in note 38.3 to the financial
statements.
4,659,496 4,498,384
The maximum aggregate amount receivable from related parties at the end of any month during
19.1 Stores and spares include: the year was Rs 3,750,557 thousand (2020: Rs 6,473,541 thousand).

Share in joint operations operated by the Group 627,650 573,332
Share in joint operations operated by others
(assets not in possession of the Group) 1,670,815 1,703,562
2,298,465 2,276,894

ANNUAL REPORT 2021 215