Page 182 - Pakistan Oilfield Limited - Annual Report 2022

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PAKISTAN OILFIELDS LIMITED
Notes to and Forming Part of the

Financial Statements

For the year ended June 30, 2022

Less than 1 Between 1 to Over 5 years
year 5 years
Rupees (‘000)

At June 30, 2022
Long term deposits - 895,565 -
Trade and other payables 26,012,620 - -
Unclaimed dividend 275,702 - -
At June 30, 2021
Long term deposits - 873,412 -
Trade and other payables 21,525,147 - -
Unclaimed dividend 244,495 - -
(c) Market risk

(i) Currency risk
Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates. Foreign exchange risk arises mainly from
future commercial transactions or receivables and payables that exist due to transactions in foreign
currencies.

The Company is exposed to currency risk arising from currency exposure with respect to the US
dollar. Currently foreign exchange risk is restricted to trade debts, bank balances, receivable from /
payable to joint operating partners, payable to suppliers.
Financial assets include Rs 36,827,358 thousand (2021: Rs 29,965,461 thousand) and financial
liabilities include Rs 139,193 thousand (2021: Rs 688,637 thousand) which are subject to currency
risk.
The following significant exchange rates were applied during the year:

Rupees per USD 2022 2021
Rupees
Average rate 176.98 155.63
Reporting date rate 205.75 158.05
If exchange rates had been 10% lower / higher with all other variables held constant, profit after tax
for the year would have been Rs 2,568,172 thousand lower / higher (2021: Rs 2,049,378 thousand
higher/lower).
(ii) Interest rate risk
Interest rate risk represents the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates.

The Company has no significant long term interest bearing financial assets and liabilities whose fair
value or future cash flows will fluctuate because of changes in market interest rates.