Page 137 - Pakistan Oilfield Limited - Annual Report 2022

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Annual Report 2022

S.No. Key Audit Matters How the matter was addressed in our audit
The supplemental agreement was signed under the
conversion package where gas price was enhanced
and WLO was not applicable. The impugned SRO,
by giving retrospective effect, amounted to taking
away the vested rights already accrued in favour of
the Company. As per the legal opinion Government
has no authority to give any law or policy a
retrospective effect.

The Company has not recognised the revenue
(net of sales tax) to the extent of Rs 19,659 million
since inception to June 30, 2022 on account of
enhanced gas price incentive due to conversion
from Petroleum Policy 1997 to Petroleum Policy
2012 and will be accounted for upon resolution of
this matter.

We considered this as key audit matter due to
the significant amounts involved and significant
judgments made by management regarding the
matter.
Information Other than the Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information comprises the information
included in the annual report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Board of Directors for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance
with the accounting and reporting standards as applicable in Pakistan and the requirements of Companies
Act, 2017(XIX of 2017) and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Board of directors are responsible for overseeing the Company’s financial reporting process.