Page 212 - Pakistan Oilfield Limited - Annual Report 2022

210
PAKISTAN OILFIELDS LIMITED

Notes to and Forming Part of the -
Consolidated Financial Statements

For the year ended June 30, 2022

Actuarial gain and losses arising from experience adjustments and change in actuarial assumptions
are charged or credited to equity in other comprehensive income in the period in which they arise.
Past service costs are recognized immediately in statement of profit or loss.
Since both are complementary plans, combined details and valuation for pension plan and gratuity
plan are given in note 38.
(ii) Separate approved contributory provident funds for management and non-management
employees for which contributions are made by the Company and the employee at the rate of
10% of basic salary. Charge included in these financial statements is Rs 31,779 thousand (2021: Rs
31,214 thousand).

CAPGAS
The subsidiary is operating a non funded gratuity plan for management and non-management
employees. The liability for gratuity plan is provided on the basis of actuarial valuation conducted
as at June 30, 2022 using the "Project Unit Credit Method".
4.11 Trade and other payables
Liabilities for trade and other payables are carried at cost which is the fair value of the consideration
to be paid in future for goods and services received.
4.12 Contingent liabilities

A contingent liability is disclosed when the Group has a possible obligation as a result of past
events, whose existence will be confirmed only by the occurrence or non-occurrence, of one or
more uncertain future events not wholly within the control of the Group; or the Group has a present
legal or constructive obligation that arises from past events, but it is not probable that an outflow
of resources embodying economic benefits will be required to settle the obligation, or the amount
of the obligation cannot be measured with sufficient reliability.

4.13 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and impairment
losses except for freehold land and capital work in progress, which are stated at cost.
Depreciation is provided on straight line method at rates specified in note 13.1 to the financial
statements. Depreciation is charged on additions from the month the asset becomes available for
the intended use upto the month in which these are derecognized.
Maintenance and normal repairs are charged to income as and when incurred. Major renewals and
improvements are capitalized and the assets so replaced, if any, are retired. Gains and losses on
derecognition of assets are included in income currently.

4.14 Other intangible assets
These are carried at cost less accumulated amortization and accumulated impairment losses, if any.
Amortization is calculated using the straight line method over the period of useful life of the asset
at the rates specified in note 16. Costs associated with maintaining intangibles are recognized as
expense as and when incurred. Amortization on additions is charged from the month in which an
intangible asset is acquired or capitalized, while no amortization is charged for the month in which
the intangible asset is disposed off.