Transmission of Annual Report for the year ended June 30, 2022

ABOUT THE REPORT

04

KEY HIGHLIGHTS OF THE YEAR

06

CHAIRMAN'S REVIEW

10

0$1$*,1*',5(&725 &(2·6/(77(572

12

SHAREHOLDERS

VISION

14

MISSION

15

VALUES

16

CODE OF CONDUCT

17

COMPANY PROFILE

18

MARKETS SERVED AND PRODUCT LINES

20

GROUP STRUCTURE

21

BUSINESS MODEL

21

STRATEGIC INVESTMENTS

22

VALUE CHAIN

23

HR STRENGTH

23

GEOGRAPHICAL PRESENCE

24

REGULATORY FRAMEWORK

25

SIGNIFICANT CHANGES FROM PRIOR YEARS

26

SIGNIFICANT EVENTS

28

MAJOR EVENTS

30

MARKETING INITIATIVES

34

INTEGRATED BUSINESS MODEL

40

BUSINESS OBJECTIVES & STRATEGIES

42

RESOURCE ALLOCATION PLAN

43

SIGNIFICANT CHANGES IN OBJECTIVES AND

43

STRATEGIES FROM PREVIOUS YEARS

STRATEGIC DECISION MAKING PROCESS

43

AND ORGANIZATIONAL CULTURE

PANDEMIC RECOVERY PLAN BY THE

43

MANAGEMENT AND POLICY STATEMENT

SIGNIFICANT CHANGES IN THE LOCAL AND

43

INTERNATIONAL POLITICAL ENVIRONMENT

AFFECTING THE COMPANY

SIGNIFICANT PLANS AND DECISIONS

43

KEY PERFORMANCE INDICATORS

44

STRATEGY TO OVERCOME LIQUIDITY

44

CHALLENGES AND MANAGEMENT OF DEBTS

SIGNIFICANT FACTORS AFFECTING

44

EXTERNAL ENVIRONMENT AND COMPANY'S

RESPONSE

COMPETITIVE LANDSCAPE AND MARKET

45

POSITIONING

ADEQUACY OF CAPITAL STRUCTURE

45

STEPS TAKEN TO PROMOTE INNOVATION

45

SWOT ANALYSIS

46

COMPOSITION OF LOCAL VERSUS

46

IMPORTED MATERIAL AND SENSITIVITY

ANALYSIS

MATERIALITY APPROACH ADOPTED BY THE

46

MANAGEMENT

DISCLOSURES BEYOND BEST CORPORATE

46

REPORTING REQUIREMENTS

KEY RESOURCES AND CAPABILITIES THAT

47

PROVIDE SUSTAINABLE COMPETITIVE

ADVANTAGE

THE LEGITIMATE NEEDS, INTERESTS OF KEY

47

STAKEHOLDERS AND INDUSTRY TRENDS

VALUE CREATION BY THE BUSINESS USING

47

ITS RESOURCES

ADOPTION OF INTERNATIONAL INTEGRATED

48

REPORTING FRAMEWORK

RISK AND OPPORTUNITY REPORT

49

NOTICE OF MEETING

56

CORPORATE GOVERNANCE

COMPANY INFORMATION

61

THE BOARD OF MANAGEMENT

62

ENGAGEMENT OF BOARD MEMBERS IN

72

BUSINESS ENTITIES

BOARD COMMITTEES

73

%2$5'·623(5$7,1*67$1'

77

DELEGATION TO MANAGEMENT

ROLE OF CHAIRMAN AND CEO

77

&(2·63(5)250$1&(5(9,(:%<7+(

77

BOARD

EVALUATION OF BOARD'S PERFORMANCE

77

TRAINING OF BOARD MEMBERS

77

ORIENTATION OF BOARD MEMBERS

77

REMUNERATION OF NON-EXECUTIVE

77

(INCLUDING INDEPENDENT) BOARD

MEMBERS

POLICY FOR RETENTION OF FEE BY AN

77

EXECUTIVE MEMBER

BOARD'S VIEW ON DIVERSITY

78

&203$1<·632/,&<)256$)(*8$5',1*

78

OF RECORDS

CONFLICT OF INTEREST AMONGST BOARD

78

MEMBERS

COMPLIANCE WITH THE BEST PRACTICES

78

OF THE CODE OF CORPORATE

GOVERNANCE

EXTERNAL OVERSIGHT OF VARIOUS

78

FUNCTIONS

BOARD MEETINGS HELD OUTSIDE PAKISTAN

78

RELATED PARTIES

79

GOVERNANCE PRACTICES EXCEEDING

79

LEGAL REQUIREMENTS

APPOINTMENT OF BOARD INCLUDING

79

CHAIRMAN

&+$,50$1·66,*1,),&$17&200,70(176

79

ORGANIZATIONAL STRUCTURE

80

REPORT OF THE BOARD AUDIT &

82

COMPLIANCE COMMITTEE

SUMMARY OF KEY ACTIVITIES

82

STATEMENT OF COMPLIANCE

84

REVIEW REPORT TO THE MEMBERS

88

ATTENDANCE AT BOARD OF MANAGEMENT

89

AND BOARD COMMITTEE MEETINGS

MANAGEMENT COMMITTEE

90

COMPENSATION, ORGANIZATION &

90

EMPLOYEE DEVELOPMENT COMMITTEE

GLOBAL BUSINESS AND ECONOMIC

94

ENVIRONMENT

PAKISTAN'S BUSINESS AND ECONOMIC

94

OVERVIEW

OIL INDUSTRY OVERVIEW

95

THE COMPANY'S PERFORMANCE

96

BUSINESS LINES

98

FINANCIAL MANAGEMENT

119

OTHER MATTERS

120

FORWARD LOOKING STATEMENT

122

REPORT TO SHAREHOLDERS

126

(CONSOLIDATED)

FINANCIALS

DUPONT ANALYSIS

133

MARKET SHARE INFORMATION

134

SHARE PRICE SENSITIVITY ANALYSIS

134

ANALYSIS OF FINANCIAL POSITION

136

ANALYSIS OF FINANCIAL PERFORMANCE

137

ANALYSIS OF PERFORMANCE AGAINST

138

TARGET

SEGMENTAL REVIEW OF BUSINESS

138

PERFORMANCE

ANALYSIS OF VARIATIONS IN RESULTS

139

REPORTED IN INTERIM REPORTS

SUMMARY OF CASHFLOWS STATEMENT

140

DIRECT CASHFLOW STATEMENT

141

FINANCIAL RATIOS

142

STATEMENT OF VALUE ADDITIONS

150

HORIZONTAL AND VERTICAL ANALYSIS

151

INDICATORS AND PERFORMANCE

156

MEASURES

MAJOR CAPITAL EXPENDITURE / PROJECTS

156

CHANGE IN ACCOUNTING POLICIES,

157

JUDGEMENTS, ESTIMATES AND

ASSUMPTIONS

COMPLIANCE OF FINANCIAL ACCOUNTING

157

AND REPORTING STANDARDS

TAXES AND DIVIDENDS

157

,1'(3(1'(17$8',725·65(325721

159

UNCONSOLIDATED FINANCIAL STATEMENTS

UNCONSOLIDATED STATEMENT OF

164

FINANCIAL POSITION

NOTES TO THE UNCONSOLIDATED

169

FINANCIAL STATEMENTS

,1'(3(1'(17$8',725·65(325721

246

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL

250

POSITION

NOTES TO THE CONSOLIDATED FINANCIAL

255

STATEMENTS

STAKEHOLDERS' INFORMATION

STAKEHOLDERS' IDENTIFICATION

342

STAKEHOLDERS' ENGAGEMENT

342

ANALYSTS' AND CORPORATE BRIEFINGS

343

RESOLUTION OF CONCERNS RAISED AT

344

LAST AGM

ENCOURAGEMENT OF THE SHAREHOLDERS

344

TO ATTEND THE GENERAL MEETINGS

PRESENCE OF CHAIRPERSON OF THE

344

BOARD AUDIT & COMPLIANCE COMMITTEE

AT AGM

5('5(66$/2),19(67256·*5,(9$1&(6

344

PATTERN OF SHAREHOLDING

345

SHAREHOLDERS' CATEGORIES

348

SHAREHOLDERS' AND INVESTORS'

350

INFORMATION

0$1$*,1*',5(&725 &(2·6,17(59,(:

350

GLOSSARY

351

FEEDBACK

351

REPORT TO SHAREHOLDERS

355

(CONSOLIDATED)

REPORT TO SHAREHOLDERS

379

(UNCONSOLIDATED)

CHAIRMAN'S REVIEW & REPORT TO

381

2.8

trillion

1.8

PKR

0.8

FY19

FY20

FY21

FY22

155

115

PKR billion

113

75

35

-5

FY19

FY20

FY21

FY22

500

350

PKR billion

200

50

FY19

FY20

FY21

FY22