FINANCIAL STATEMENT ANALYSIS

OF

ATTOCK PETROLEUM COMPANY LIMITED

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ACKNOWLEDGEMENT

Finally by the grace of all mighty ALLAH we did manage to finish our final project.

We have studied “Analysis of Financial Statement”. It was a healthy learning

experience and we are very thankful to our project supervisor Mrs. Malika Remoo for

his sincere guidence throughout the project.

ATTOCK PETROLEUM COMPANY LIMITED

ABOUT APL:

Attock Petroleum Limited (APL) is an associate company of the Attock Oil Group of Companies, which is the only fully vertically integrated Group in the Oil & Gas sector of Pakistan involved in Exploration & Production, refining & Marketing APL’s

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corporate head office is registered in Islamabad.

Attock Petroleum Limited (APL) is the 4th Oil Marketing Company in Pakistan to be granted a marketing license in February1998. Though a new entrant in the field of Oil marketing, APL has managed to establish its presence and reputation as a progressive & dynamic organization focusing on providing quality and environment friendly petroleum products and services in Pakistan and abroad. Its steady and substantially growing market share and customer confidence, which it enjoys, are manifestations of APL’s successful policies. APL is part of the first fully integrated Oil Company of the sub-continent; APL’s sponsor includes Pharaon Commercial Investment Group Limited (PCIGL) and Attock Group of Companies.

Pharaon Group is engaged internationally in diversified entrepreneurial activities, including Hotels, Oil Exploration, Production and Refining, manufacturing of petroleum products, Chemicals manufacturing and Trading of Cement, Real Estate etc. The Attock Group of Companies consist of the Attock Oil Company (AOC), Pakistan Oilfields Limited (POL), Attock Refinery Limited (ARL), Attock Petroleum Limited (APL), Attock information Technology Services (pvt) Limited (AITSL), Attock Cement of Pakistan Limited (ACPL) and more. AOC was incorporated with limited liability in England on December 01-1913. The company is principally engaged in exploration, drilling and production of petroleum and related activities in Pakistan. AOC is the pioneer in the Oil sector in Pakistan. Its first Oil discovery in Pakistan was made in khaur district Attock in 1915. The refining operations were started in 1922 at Morgah near Rawalpindi.

VISION:

To become a world class, professionally managed, fully integrated, customer focused, Oil marketing Company, Offering value added quality and environment friendly products and services to its customers in Pakistan and beyond.

MISSION:

To continuously provide quality and environment friendly petroleum products and related services to industrial, commercial and retail consumers, and exceeding their expectations through reliability, economy and quality of products and services. We are committed to benefiting the community and ensuring the creation of a safe, responsible and innovative environment geared to client satisfaction, end user gratification, employee’s motivation and shareholder’s value.

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Core Values

1) Ethical Principles and Moral Values:We promote a commitment to the highest moral values and ethical principles, demanding both personal and professional dedication towards the realization of these values and principles.

2) Commitment and CooperationTwo core fundamentals for the success of any business are complete employee commitment and cooperation. At APL we foster an environment of solid teamwork and professionalism to ensure that our employees engage in both personal and professional development.

3) Environment ConsciousnessWe believe that it is our responsibility to safeguard our natural resources for future generations and actively engage in environment friendly practices, policies and management techniques.

4) Corporate Social CitizenshipWe strongly believe in the promotion of societal well-being and awareness within ones community, actively engaging in activities and initiatives to meet this objective.

5) Maximum Stakeholder ReturnThrough our streamlined business processes and commitment to total quality management we seek to ensure maximum company performance and rewards for shareholders and stakeholders alike.

Awards and Achievements: Best Corporate Report Award-2009

2nd Position in Fuel and Energy Sector.

Top Companies Award- 2009Amongst Top Twenty Five Companies.

COMPARATIVE INCOME STATEMENT (Rupees in thousand)

Note 2012 2011 2010Sales 20 176,812,437 127,036,956 94,897,866Sales tax (23,969,000) (17,036,956) (12,105,948)Net Sales 152,843,437 109,394,725 82,791,918Cost of Production 21 (148,255,584) (104,680,507) (79,032,034)Gross profit 4,587,853 4,714,218 3,759,884 Operating income 22 2,659,322 1,978,931 1,308,904Operating expenses 23 (889,356) (611,315) (480,860)

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Operating profit 6,357,819 6,081,834 4,587,928 Finance cost 24 (1,211,047) (682,666) (319,865)Income on bank deposits& short term investment 25 889,427 962,838 980,736Share of profit associated co. 26,506 93,211 42,337Other charges 26 (415,965) (437,706) (444,827)Profit before tax 5,646,740 6,017,511 4,846,309 Provision for taxation 27 (1,526,425) (1,761,000) (1,252,000)Profit after tax 4,120,315 4,256,511 3,594,309

Earnings per share 59.61 61.58 52.00

2010 2011 20120

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

3,75

9,88

4

4,71

4,21

8

4,58

7,85

3

4,84

6,30

9

6,01

7,51

1

5,64

6,74

0

3,59

4,30

9

4,25

6,51

1

4,12

0,31

5

gross profit

profit before tax

profit after tax

Net sales revenue in 2012 increased by 40% from 2011 due to increase in average prices of products and volume sold. Profitability decreased by 3% as compared to 2011 due to price decrease in last quarter, stiff competition and ban on export of petroleum products to Afghanistan during 2011-12.

BALANCE SHEET (Rupees in thousand)

ASSETS: 2012 2011 2010Non-Current Assets:Property, plant and equipment 1,601,576 1,374,767 1,217,217Long term investment inassociated companies. 856,037 842,957 765,739long term prepayments 10,733 15,231 30,463

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Current Assets:Stock and spares 15,620 9,729 6,630Stock in trade 4,165,895 5,246,705 993,282Trade debts 15,351,310 9,297,292 7,602,060Advances, deposits, prepay- -ments and other receivables. 843,072 1,459,703 719,904Short term investments 873,168 1,015,930 831,754

Cash and bank balances 6,813,730 5,218,037 9,275,603 28,062,795 22,247,396 19,429,233

Total Assets 30,531,141 24,480,351 21,442,652

EQUITIES:Share Capital And ReservesAuthorized capital 1,500,000 1,500,000 1,500,000Paid up capital 691,200 691,200 576,000Special Reserves 54,864 27,407 17,043Revenue Reserves 11,637,259 10,827,601 8,643,534Unappropriated profit 12,383,323 11,546,208 9,236,577 Non-Current Liabilities:Long term deposits 254,729 209,316 178,908Deferred income tax liability 167,000 111,000 110,000

412,729 320,316 288,908Current Liabilities:Trade and other payables 17,666,747 12,073,287 11,554,057Provision for income tax 68,342 540,540 363,110Contingencies and commitments 17,735,089 12,613,827 11,917,167

Total Equities 30,531,141 24,480,351 21,442,652

LIQUIDITY RATIOS

1) Current ratio:

Current ratio= current assets Current liabilities

Year 2012 2011 2010Current ratio 1.58 1.76 1.63

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2) Quick Ratio: Quick ratio= current assets- Inventory

current liabilities

year 2012 2011 2010Quick ratio 1.35 1.35 1.55

2012 2011 20100

0.20.40.60.8

11.21.41.61.8

2

1.58 1.

76

1.63

1.35

1.35 1.

55

current ratioquick ratio

In 2012, Company’s current and quick ratio are low compared to last year due to increase in current assets and current liabilities resulting from increasing circular debt issue but still it shows Company’s strong ability to meet its short term obligations.

ASSETS MANAGEMENT RATIO

1) INVENTORY TURNOVER:

Inventory Turnover = SALES INVENTORY

YEAR 2012 2011 2010INVENTORY TURNOVER 31.50 33.55 139.29

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2010 2011 20120

20406080

100120140160

139.29

33.55 31.5

Inventory Turnover

COMMENTS:Company inventory turnover ratio in 2010 was 139.29 which decreased in 2011 by huge margin. In 2012, company inventory turnover continue decreasing which shows that company is not manage its inventory due to overstocking turnover rate continuously decreasing.

Total assets turnover:

YEAR 2012 2011 2010Total assets turnover 5.56 4.76 4.17

2010 2011 20120

1

2

3

4

5

6

5.56

4.76

4.17

total assets turnover

Fixed Assets Turnover:

YEAR 2012 2011 2010Fixed Assets Turnover 102.71 84.41 70.52

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2010 2011 20120

20

40

60

80

100

120

70.5

2

84.4

1

102.

71

Fixed Assets Turnover

Fixed Assets Turnover

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