Page 159 - Pakistan Oilfield Limited - Annual Report 2022

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Annual Report 2022

2022 2021
Rupees ('000)
7. REVENUE RESERVES
Insurance reserve - note 7.1 200,000 200,000
Investment reserve - note 7.2 1,557,794 1,557,794
Unappropriated profit 46,467,116 34,765,718
48,224,910 36,523,512
7.1 The Company has set aside an insurance reserve for self insurance of assets which have not been
insured and for deductibles against insurance claims.
7.2 The Company has set aside gain on sale of investments as investment reserve to meet any future
losses/ impairment on investments.
2022 2021
Rupees ('000)

8. LONG TERM DEPOSITS
Security deposits from distributors for cylinders / equipment 849,007 823,238
Security deposits from distributors and others 46,558 50,174
895,565 873,412
8.1 Amount received as security deposit is kept in a separate bank account and utilized/utilizable by
the Company in accordance with the related agreements with customers.
2022 2021
Rupees ('000)

9. DEFERRED LIABILITIES
Provision for deferred income tax - note 9.1 5,844,433 5,585,793
Provision for decommissioning costs - note 9.2 19,123,431 14,389,227
Provision for staff compensated absences 2,540 3,299
24,970,404 19,978,319

9.1 Provision for deferred income tax
The provision for deferred income tax represents:

Temporary differences between accounting and
tax depreciation/ amortization 6,207,692 5,907,912
Provision for stores and spares (213,732) (191,873)
Provision for doubtful receivable (99) (93)
Deferred tax on remeasurement (loss) on
staff retirement benefit plans (149,428) (130,153)
5,844,433 5,585,793