Page 222 - Pakistan Oilfield Limited - Annual Report 2022

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PAKISTAN OILFIELDS LIMITED

Notes to and Forming Part of the -
Consolidated Financial Statements

For the year ended June 30, 2022

2022 2021
Rupees ('000)
7. CAPITAL RESERVE
Bonus shares issued by
subsidiary/associated companies 71,395 71,395
Special reserve - note 7.1 18,658 15,437
Utilised special reserve - note 7.2 1,941,044 1,941,044
2,031,097 2,027,876
7.1 This represents the Group's share of post-acquisition profit set aside as a special reserve by
associated companies on account of expansion and modernisation of refineries or to offset against
any future loss of Rs 15,196 thousand (2021: Rs 15,196 thousand), as a result of the directive of the
Government to divert net profit after tax above 50 percent of paid-up capital and maintenance
reserve of Rs 3,462 thousand (2021: Rs 241 thousand) retained by an Attock Gen Limited (an
associate of Attock Petroleum Limited) to pay for major maintenance expenses in terms of Power
Purchase Agreement. Special reserves are not available for distribution.

During the year, an associated company transferred Rs 1,463,042 thousand (2021: Rs nil) in
special reserve account. As the associated company already has commissioned Diesel Hydro
De-Sulphurisation (DHDS) and Isomerization projects, which were required by the Government
to be installed to produce Euro-II standard HSD and to convert Naphtha into Motor Gasoline,
accumulated fuel refinery losses to the extent of Rs 1,463,042 thousand (2021: Rs nil) have been
offset against the amount accumulated in the special reserve account.
7.2 This represents the Group's share of amounts utilised by associated companies out of the Special
Reserve for upgradation and expansion of the refineries.
2022 2021
Rupees ('000)
8. REVENUE RESERVES

Insurance reserve - note 8.1 200,000 200,000
General reserve - note 8.2 7,077,325 7,077,325
Unappropriated profit 43,321,761 30,810,225
50,599,086 38,087,550
8.1 The Group has set aside an insurance reserve for self insurance of assets which have not been
insured and for deductibles against insurance claims.

8.2 This includes Rs 1,557,794 thousand (2021: Rs 1,557,794 thousand) set aside by POL on account of gain
on sale of investments as investment reserve to meet any future losses/ impairment on investments.