Catering To: Fueling Needs

CATERING TO
FUELING NEEDS
Annual Report
2O18
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CATERING TO
FUELING NEEDS
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Established in 1966, the objective of Burshane LPG

(Pakistan) Limited is to engage efficiently, esponsiblity and
profitably in the LPG and allied business. We seek a high
Standard of performance, maintaining a strong long-term and
growing position in the competive environment. The driving force
behind Burshane LPG (Pakistan) Limited is a dedicated workforce
made up of experienced professionals and its continuous efforts in
maintaining high standards of technical resources and safety standards.
ANNUAL REPORT 2018 01

02 ANNUAL REPORT 2018
Contents
Vision 05 Review Report to the Members on
Statement of Compliance with best
Company Information 08 parctices of Code of Corporate Governance 42
Our Team 10 Unconsolidated Financial Statements 44
Management 14 Unconsolidated Auditors‘ Report 45
Directors’ Report 18 Consolidated Financial Statements 90
Corporate Governance 26 Consolidated Auditors‘ Report 91
Statement of General Business Principles 28 Attendance at Board &

Audit Committee Meetings 136
Notice of 52nd Annual General Meeting 31
Pattern of Shareholding 137
Financial Highlights 35
E-Dividend Mandate Letter 139
Statement of Compliance with the code of
Corporate Governance 39 Form of Proxy 141

Vision
To Be The Performer of first Choice
At Burshane LPG (Pakistan) Limited, We strive to provide

quality customer sevice through continous improvements in
our effort to make uninterrupted supply of LPG to the users,
development of our people and maintening high standards of
technical resources and safety standards. Further we aim at
sustained profitability and value growth for aur shareholders through
strong financial foundation and rand loyal customers. We shall strive to
provide better choices to our communities for improving quality of their life.

LPG Autogas is by far the most widely
available environmentally friendly alternative fuel.
Recent independent tests have also shown that
LPG has the best environmental record compared with
petrol and diesel.
Driving an LPG vehicle is safe, easy and best of all,

much cheaper than driving a petrol or diesel model.
Engines running on LPG produce less harmful
emissions compared to petrol or diesel, whlist
making significent savings at the pumps.

Incredible
Energy

Company Information
Board of Directors Management
Mr. Shahriar D. Sethna Mr. Asad Alam Khan

Chairman Chief Executive Officer
Mr. Asad Alam Khan Mr. Saifee Zakiuddin

CEO / Director Director Finance
Mrs. Hamdia Fatin Niazi Mr. Muhammad Khalid Dar

Director Marketing & Sales
Director
Mr. Irfan Javed Warsi

Mr. Darayus T. Sethna
General Manager - Commercial
Director
and Business Development (HR)
Mr. Tassaduq Hussein Niazi Mr. Amir Aziz

Director Head of Operations Distribution
& HSSE
Mr. Saifee Zakiuddin
Director Mr. Khurram Kasbati
Head of internal Audit
Syed Etrat Hussain Rizvi
Director (NIT Nominee) Mr. Wahaj Hussain
Company Secretary
Mr. Muhammad Khalid Dar
Director Marketing & Sales Bankers
National Bank of Pakistan
Auditors Habib Bank Limited
EY Ford Rhodes MCB Bank Limited
Chartered Accountants Standard Charterd Bank Pakistan Limited
Faysal Bank Limited
Legal Advisors United Bank Limited
Mohsin Tayebaly & Co. Summit Bank Limited
Bank Alfalah Limited
Tax Advisors
Registerd Office:
KPMG Taseer Hadi & Co. Chartered Suite 101, 1st Floor, Horizon Vista,
Accountants. Plot No. Commercial - 10, Block-4
Scheme No. 5, Clifton, Karachi - 75600
Registrar & Share Registration Office Tel : + 92 21 35878356, 35309870 & 73
THK Associates (Pvt.) Limited UAN : +92 21 111 111 BPL (275)
Fax : +92 21 3587 8353
www.burshane.com
In both urban and rural areas, LPG is being
widely used as an alternative source of
Natural Gas or where there is no access to
central gas pipeline. In domestic
segment LPG is used mainly for
cooking and heating purposes
for economic reasons,
convenience over
traditional fuels as well
as to ensure and
Environment
(HSSE).
Convenient
& Safe Domestic Use
Burshane
LPG (Pakistan)
Limited is among
the pioneers in LPG
marketing and
distribution in Pakistan.
Company incorporated in
1966 and consistently developed
and established its countrywide
distribution network which is primarily
focused to cater the needs of domestic
users and deliver our best services to them.
Burshane LPG has a very clear strategy to offer and

deliver diffrentiated Customer Value Propositions to
various segments of market, to increase customer
satisfaction and retain its position as the premium LPG brand
available in market.
Company is committed on attracting more sutomers and enhancing

the brand by providing products and sevices to creat customer loyalty
and market share on a sustainable basis. Consistent focus on our CVP
across the entire value chain has distinguished our brand among
compititors in industry. Our core values of honesty, integrity
and respect for people are at the heart of the way we
manage our business.

Management
Mr. Asad Alam Khan Mr. Saifee Zakiuddin Mr. Irfan Javed Warsi
Chief Executive Officer Director Finance General Manager - Commercial
and Business Development (HR)

Mr. Amir Aziz Mr. Muhammad Khalid Dar Mr. Khurram Kasbati
Head of Operations Director Sales & Marketing Head of Internal Audit
Distribution & HSSE
Mr. Wahaj Hussain Roozbeh Baria Syed Shahid Abbas

Company Secretary Regional Sales Manager (South) Regional Sales Manager (North)

Efficient
ECO-FRIENDLY

LPG is a clean - burning fuel which the environment by reducing air pollution. It
has absolutely no lead content (safe vehicle fuel) - the perfect environment
alternative - and is cheaper than gasoline. It contributes to a healthier working
environment and has virtually no harmful exhaust emission.
LPG is the fuel of the future. Apart from being environmentally friendly, in Pakistan
it can significantly contribute to the economy by replacing Kerosene. It can also
assist in reducing de-forestation in cases where wood is used as a source of
energy, thus making the environment pollution free and healthier. De-forestation
leads to serious environmental damage and disturbs the ecological balance
causing erosian and landslides in these areas. Thus there is a need to increase
the availability, as well as usage of LPG, as it can to some extent overcome
the de-forestation problem of the country.
Burshane LPG (Pakistan) Limited is actively playing its

role by promoting the superior environment
and convenient aspects of LPG.
Environment Friendly LPG

LPG is truly a modern environment
friedly product. LPG is the normal
abbreviation used to describe
‘Liquefied Petroleum Gas’ , which
is itself used to describe those
hydrocarbons existing as vapors
under ambient conditions of
temperature and pressure.
Directors’ Report
It gives me pleasure to share the results and compared to petrol and diesel, its demand increased
financial information of the Company for the year along with increase in selling prices and as a result
ended June 30, 2018. our sales in non industrial segment increased.
During the year under review, sales volume of the Administrative expenses increased by Rs. 16.59
Company increased by 8,942 MT compared to the million (18.01%) due to increase in staff related cost
preceding year primarily due to higher demand from and increase in rents and utilities. Distribution and
domestic customers and availability of imported marketing expense increased by Rs. 1.47 million
product at feasible rates. During the year your (2.35%) which has increased due to increase in
company purchased Imported LPG of 14,275 MT sales revenue.
as compared to 7,697 MT of imported LPG
purchased last year due to relatively higher demand
Local production of LPG has increased significantly
compared to previous year. Net sales of the
during the year, due to recent discoveries of Oil &
Company increased by 60.17% due to addition of
Gas. The Company has paid signature bonus
new distributors which resulted in quantity sold and
amounting to Rs. 50.15 million to Oil & Gas
higher selling prices compared to previous year.
Development Company to receive a supply quota of
Gross profit, however, increased by only 10.81%
5 MT per day for 5 years and is also looking for
mainly due to much lower margin on imported
further options for increasing quota of locally
quantity sold. Cost of imported product of LPG is
produced LPG. Signature bonus paid is recorded
higher due to increase in international prices of LPG
as Intangible asset and will be amortized over the
and due to imposition of regulatory duty of Rs.
period of 5 years and amortization will be charged
4,669 per MT. This results in much lower gross
to cost of goods sold.
margins on sale of imported LPG. Further, the local
producers of LPG have demanded heavy amount of
signature bonus to procure quota of locally The Company has not paid its loan obtained from
produced LPG. This results in investment in National Bank of Pakistan amounting to Rs. 254
Intangible Assets and higher cost of goods sold million which is recorded in current liability. The
which ultimately eroded the profitability of the Company is in negotiations with NBP and it is
Company. Profit before tax increased by 5.83%, expected that the loan will soon be restructured.
mainly due to increase in sales margin.
The Company’s earnings per share of the current
During last year the Government decided to import year is Re. 0.87 compared to earnings per share
LNG in bulk and this was made available to Industrial Rs. (1.29) per share in the preceding year.
consumers and to a large extent to the piped natural
gas customers of SNGPL and SSGCL. This resulted We believe that sustainable development is only
in reduced demand from the Industrial customers possible if we abide by our Business Principles.
and to some extent domestic customers of LPG. Burshane has firmly embedded them in all the
The trend continued this year as well and lower sales operations of the company and we continuously strive
were witnessed in the industrial segment as to inculcate these principles amongst our stakeholders.
expected. However, due to lower price of LPG, as

In the context of business growth I would like to management is committed towards not only
assure you that the management of your company is improving the HSSE standards for itself but leading
fully aware of its obligations towards its stakeholders in to establish best practices for the industry as
and is determined to develop long-term corporate well. Further, during the year, the Company decided
plans to increase the value of the business. We are that in order to retain and motivate staff, it will by
looking into all possible options to increase the the way of balloting select 1 person to perform Hajj
market share and earn an adequate return on capital or Umra on Company’s expense.
employed of Burshane in a profitable manner;
therefore we are confident that we will show strong
During the year, 4 meetings of the Board of Directors
performance in the coming periods.
and 4 four meetings of the Audit Committee were held,
whereas two meetings of the Human Resource &
OGRA has issued a notification on February 01, Remuneration Committee were convened. Attendance
2018 regulating the LPG prices in the Country. of each Director is shown separately on page # 136.
Accordingly, the LPG price would be regulated from
the Producer’s stage to retail marketing stage.
The pattern of shareholding is shown separately on
page # 137.
Following are the persons who are Directors of the
Company:
On behalf of the Board, I would like to thank the
1. Mr. Asad Alam Niazi staff, business partners, customers and all other
2. Mr. Tassaduq Hussain Niazi stakeholders for their continued support in ensuring
3. Mrs. Hamdia Fatin Niazi sustainable growth of the Company and for making
Burshane their brand of first choice.
4. Mr. Shehriar D. Sethna
5. Mr. Darayus T. Sethna
Following is the appropriation:
6. Mr. Saifee Zakiuddin
7. Mr. Khalid Dar (Rs. in ‘000)
8. Mr. Etrat Hussain Rizvi Profit before tax 53,581
Taxation (33,985)
We have once again excelled in our performance of Net profit after tax 19,596
Health, Safety, Security and Environment (HSSE), Dividend declared Cash 16,867
with no lost time injury and fatality. The Bonus -
Saifee Zakiuddin Asad Alam Khan

Director Director / CEO
Karachi
Dated: September 25, 2018
136
137
(Rs. in ‘000)
53,581
(33,985)
19,596
16,867

Health, Safety,
Security &
Environment (HSSE)
They ensure that all HSSE policies are

properly observed by providing support and
resources for actions taken to operate safely
and to protect health, environment and to exert
a positive influence on the HSSE management of
contractors as they play a major role in achieving a high
level of HSSE performance. This is evident by the fact that
the period under review is without any lost time injury (LTI).
As a responsible cooperate citizen, we at Burshane always belief
that the only way to sustainable development is through a strong
commitment to Health, Safety, Security and Environment in all areas
of our business.
In Burshane, HSSE is managed as the most critical business activity.

The Management at Burshane demonstrates strong, visible
leadership and commitment by allocating sufficient resources
to operate and maintain HSSE Management System and
lead by example in their personal actions and behaviors.

09
Corporate
Social
Responsibility
02
At Burshane the employees are entrusted to
carry out the company’s business activities
in economically, environmentally and socially
sustainable ways. The Company always
works with all the stakeholders to better
understand the impact of our operations
and product has on society and the
environment. Our aim is to create
sustainable communities – places where
people want to live and work, both now and
in the future.
Managing today’s business risk, delivering our strategy and

achieving our goals all critically require maintaining trust of our
wide range of stakeholders. To keep the trust of stakeholders
we must do many things, including behaving with integrity and
respect at all the times. In addition of that Burshane LPG
(Pakistan) Limited evaluates the implications and effects of
their decisions and polices on the components of the society
and ensures that the trust of the society is not affected by their
decisions directly or indirectly. We consciously work towards
creating lasting economic benefits, for example by employing
local people and using local contractors and suppliers,
whenever possible.

03
Corporate Governance:
The Board is committed to maintain high standards of Corporate

Governance. The Board is pleased to give the following specific
statements to comply with the requirements of the Code of
Corporate Governance:
• The financial statements, prepared by the • There are no significant doubts upon the
management of the Company, present its company’s ability to continue as a going
state of affairs fairly, the results of its concern.
operations, changes in equity and cash
flows. • There are no material departures from the
best practices of corporate governance, as
• Proper books of account of the Company detailed in the listing regulations except as
have been maintained. disclosed in the Statement of Compliance
with the Code of Corporate Governance.
• Appropriate accounting policies have been
consistently applied in preparation of the • Key operating and financial data in
financial statements. Accounting estimates summarized form is annexed.
are based on reasonable and prudent
judgment. • No trades in the shares of Burshane LPG
(Pakistan) Limited were carried out by the
• International Financial Reporting Standards, Directors, CEO, CFO & Company Secretary
as applicable in Pakistan, have been and their spouses and minor children.
followed in preparation of financial
statements and any departure there from • Four of the directors have completed the
have been adequately disclosed and Director’s Training course conducted by the
explained. Institute of Chartered Accountants of
Pakistan (ICAP). In accordance with the
• The system of internal control is sound in criteria specified in the Code, the remaining
design and has been effectively Directors’ training certification within the
implemented and monitored. time specified in the Code.

Board Meetings: Pattern of Shareholding:
The number of Board and Committees’ The pattern of shareholding as of June 30,
meetings held during the year and attendance 2018 as required under section 227 of the
by each Director is disclosed on page no. 136. Companies Act, 2017 is given on page no.
137.
Board of Directors:
Auditors:
The Directors as on June 30, 2018 are
Mr. Asad Alam Khan, Mr. Shahriar D. Sethna, The auditors Ey Ford Rhodes Chartered
Ms. Hamdia Fatin Niazi, Mr. Darayus T. Sethna, Accountants, retire and being eligible offer
Mr. Tassaduq Hussein Niazi, themselves for re-appointment. Audit
Syed Etrat Hussain Rizvi, Mr. Saifee Zakiuddin committee has recommended the appointment
and Mr. Muhammad Khalid Dar. of retiring auditors.
On behalf of the Board
Karachi Mr. Asad Alam Khan

Dated: 25th September, 2018 Director and Chief Executive Officer

Statement of General Business Principles
Value Sustainable Development

Burshane LPG (Pakistan) Limited employees share a As part of the Business Principles,we commit to
set of core values – honesty, integrity and respect for contribute to sustainable development. This
people. We also firmly believe in the fundamental requires balancing short and long term interests,
importance of trust, openness, teamwork and integrating economic, environmental and social
professionalism, and pride in what we do. considerations into business decision-making.
Responsibilities
Burshane LPG (Pakistan) Limited recognise five areas of responsibility.
To Shareholders To Society
To protect shareholders’ investment, and provide a To conduct business as responsible corporate
long-term return competitive with those of other members of society, to comply with applicable laws
leading companies in the industry. and regulations, to support fundamental human
rights in line with the legitimate role of business, and
To Customers to give proper regard to health, safety, security and
To win and maintain customers by developing and the environment.
providing products and services which offer value in
terms of price, quality, safety and environmental To Employees
impact, which are supported by the requisite To respect the human rights of its employees and to
technological, environmental and commercial provide them with good and safe working
expertise. conditions, and competitive terms and conditions of
employment To promote the development and best
To Those With Whom We Do use of the talents of its employees; to create an
Business inclusive work environment where every employee
To seek mutually beneficial relationships with has an equal opportunity to develop his or her skills
contractors, suppliers and in joint ventures and to and talents. To encourage the involvement of
promote the application of these Burshane LPG employees in the planning and direction of their
(Pakistan) limited general business principles or work; to provide them with channels to report
equivalent principles in such relationships. The concerns. We recognise that commercial success
ability to promote these principles effectively will be depends on the full commitment of all employees.
an important factor in the decision to enter into or
remain in such relationships

Economics general well-being of the communities within which
Long-term profitability is essential to achieving it work. Burshane LPG (Pakistan) Limited manage
company’s business goals and to its continued the social impacts of its business activities carefully
growth. It is a measure both of efficiency and of the and work with others to enhance the benefits to
value that customers place on Burshane LPG local communities, and to mitigate any negative
(Pakistan) Limited products and services. It supplies impacts from its activities. In addition, Burshane
the necessary corporate resources for the continuing LPG(Pakistan) Limited take a constructive interest in
investment that is required to develop and produce societal matters, directly or indirectly related to its
future energy supplies to meet customer needs. business.
Without profits and a strong financial foundation, it
would not be possible to fulfil our responsibilities. Business Integrity
Criteria for investment and divestment decisions Burshane LPG (Pakistan) Limited insist on
include sustainable development considerations honesty,integrity and fairness in all aspects of its
(economic, social and environmental) and an appraisal business and expect the same in its relationships
of the risks of the investment. with all those with whom it does business. The
direct or indirect offer, payment, soliciting or
Health, Safety, Security & Environment acceptance of bribes in any form is unacceptable.
Burshane LPG (Pakistan) Limited has a systematic Employees must avoid conflicts of interest between
approach to health, safety, security and their private activities and their part in the conduct
environmental management in order to achieve of company business. Employees must also declare
continuous performance improvement. To this end, to the company potential contlicts of interest.
Burshane LPG (Pakistan) Limited manage these Allbusiness transactions on behalf of Burshane LPG
matters as critical business activities, set standards (Pakistan) Limited must be reflected accurately and
and targets for improvement, and measure, fairly in the accounts of the company in accordance
appraise and report performance. Burshane LPG with established.
(Pakistan) Limited continually look for ways to
reduce the environnmental impact of its operations, Communication and Engagement
products and services. Burshane LPG (Pakistan) Limited recognise that
regular dialogue and engagement with its
Competition stakeholders is essential. Burshane LPG (Pakistan)
Burshane LPG (Pakistan) Limited support free Limited is committed to reporting of its performance
enterprise. It seeks to compete fairly and ethically by providing full relevant information to legitimately
and within the framework of applicable competition interested parties, subject to any overriding
laws; the company will not prevent others from considerations of business contidentiality.
competing freely with it.
In its interactions with employees, business partners
Local Communities and local communities, the company seek to listen and
Burshane LPG (Pakistan) Limited aim to be good respond to them honestly and responsibly.
neighbours by continuously improving the ways in
which we contribute directly or indirectly to the

Statement of General Business Principles
Political Activities The Business Principles apply to all transactions,

large or small, and drive the behaviour expected of
Of The Company every employee in Burshane LPG (Pakistan) Limited
in the conduct of its business at all times. The
Burshane LPG (Pakistan) Limited act in a socially Company encourage its business partners to live by
responsible manner within the laws of the countries them or by equivalent principles. Burshane LPG
in which it operate in pursuit of its legitimate (Pakistan) Limited encourage its employees to
commercial objectives. Burshane LPG (Pakistan) demonstrate leadership, accountability and
Limited do not make payments to political parties, teamwork, and through these behaviours, to
organizations or their representatives. Burshane contribute to the overall success of the company.
LPG (Pakistan) Limited do not take part in party
politics. However, when dealing with government, It is the responsibility of management to lead by
Burshane LPG (Pakistan) Limited have the right and example, to ensure that all employees are aware of
the responsibility to make its position known on any these principles, and behave in accordance with the
matters which affect itself, its employees, its spirit of this statement. The application of these
customers its shareholders or local communities in principles is underpinned by a comprehensive set of
a manner which is in accordance with its values and assurance procedures, which are designed to make
the BusinessPrinciples. sure that company employees understand the
principles and confirm that they act in accordance
Of Employees witli them.
Where individuals wish to engage in activities in the As part of the assurance system,it is also the
community, including standing tor election to public responsibility of management to provide employees
office, they will be given the opportunity to do so with safe and confidential channels to raise
where this is appropriate in the light of local concerns and report instances of non-compliance.
circumstances. In turn it is the responsibility of Burshane LPG
(Pakistan) Limited employees to report suspected
breaches of the Business Principles to the
Compliance Company. The Business Principles have for many
Burshane LPG (Pakistan) Limited comply with all years been fundamental to how the company
applicable laws and regulations of the country in conduct its business and living by them is crucial to
which it operate. Living by the Principles. The Its continued success.
shared core values of honesty, integrity and respect
for people, underpin all the work the company does
and are the foundation of its Business Principles.

Notice of 52nd Annual General Meeting
NOTICE IS HEREBY given that an Annual General Meeting (AGM) of Burshane LPG (Pakistan) Limited will be held
on Wednesday, October 24, 2018 at 12:30 P.M. at Marvi Hall, Hotel Mehran, Main Shahrah-e-Faisal Karachi, to
transact the following business:
1. To confirm minutes of the Extraordinary General Meeting of the Company held on September 3, 2018.
2. To receive, consider and adopt the Audited Financial Statements together with the Directors’ Report and the
Auditors’ Report thereon for the year ended June 30, 2018.
3. To approve payment of final cash dividend @ 7.5% i.e. Re. 0.75 per share as recommended by the Directors
for the year ended June 30, 2018.
4. To appoint auditors of the Company for the financial year ending 30 June 2019 and to fix their remuneration.
5. To consider any other business with the permission of the chair.
On behalf of the Board
Karachi. (Wahaj Hussain)

Dated: October 03, 2018 Company Secretary
Notes:
1. Book Closure: A. For Attending the Meeting:
The Share Transfer Books of the Company will remain closed from i) In case of individual, the account holder or sub-account
October 18, 2018 to October 24, 2018 (both days inclusive). holder and/or the person, whose securities are in group
account and their registration details are uploaded as per the
2. Appointment of Proxies and Attending AGM: regulations, shall authenticate his/her identity by showing
his/her original Computerized National Identity Card (CNIC)
i) A member entitled to attend and vote at the meeting may or original passport at the time of attending the meeting.
appoint another member as his/her proxy who shall have
such rights as respects attending, speaking and voting at the ii) Members registered on Central Depository Company (CDC)
meeting as are available to a member. are also requested to bring their particulars, I.D. numbers
and account numbers in CDS.
ii) A duly completed instrument of proxy to be valid must be
deposited at the registered office not less than 48 hours iii) In case of a corporate entity, the Board of Directors'
before the time of the meeting. Attested copies of valid CNIC resolution/Power of Attorney with specimen signature of the
or the passport of the member and the Proxy shall be nominee shall be produced (unless it has been provided
furnished with the Proxy Form. earlier) at the time of meeting.
iii) The instrument of proxy should be duly signed, stamped and B. For Appointing Proxies:
witnessed by two persons with their names, address, CNIC
numbers and signatures. i) In case of individual, the account holder or sub-account
holder and/or the person whose securities are in group
iv) CDC account holders are also required to follow the guidelines account and their registration details are uploaded as per the
as laid down in Circular No.1 dated 26, January 2000 issued by regulations, shall submit the proxy form as per requirement
the Securities and Exchange Commission of Pakistan (SECP). notifi¬ed by the Company.

ii) The Proxy form shall be witnessed by two persons whose Form available on Company’s website and send it duly signed
names, addresses and CNIC numbers shall be mentioned along with a copy of CNIC to the Registrar of the Company, in
on the form. case of physical shares.
iii) Attested copies of CNIC or the passport of the beneficial In case shares are held in CDC then Electronic Credit Mandate
owners and the proxy shall be furnished with the proxy form. Form must be submitted directly to shareholder’s broker /
iv) The proxy shall produce his original CNIC or original passport participant / CDC account services.
at the time of the meeting.
6. Deduction of Income Tax under Section 150 of the Income
v) Corporate entities shall submit the Board of Directors Tax Ordinance, 2001:
resolution/Power of Attorney with specimen signature along
with proxy form. Pursuant to Section 150 of the Income Tax Ordinance, 2001 and
the provisions of the Finance Act 2016 effective 1st July 2017,
3. Change in Members Addresses: withholding tax on dividend income will be deducted for ‘Filer’
and ‘Non-Filer’ shareholders @ 15% and 20% respectively.
Members are requested to notify any changes in their addresses According to clarification received from Federal Board of Revenue
immediately to the Share Registrar M/s. THK Associates (Pvt.) (FBR) withholding tax will be determined separately on ‘Filer /
Limited. Non-Filer’ status of principal shareholder as well as joint holder(s)
based on their shareholding proportions, in case of joint accounts.
4. Submission of Copies of Valid CNICs (mandatory): In this regard, all shareholders who hold shares with joint
shareholders are requested to provide shareholding proportions
Members, who have not yet submitted attested photocopy of of principal shareholder and joint holder(s) in respect of shares
their valid CNIC along with folio number are requested to send held by them to our Share Registrar, in writing as follows:
the same, at the earliest, directly to the Company’s Share
Registrar. Principal Shareholder Joint Shareholder
Folio / CDS Total Name & Shareholding Name & Shareholding
CNIC Proportion CNIC Proportion
Account No. Shares
5. Payment of Dividend through electronic mode (Mandatory): (No. of (No. of
shares) shares)
Under the provisions of Section 242 of the Companies Act, 2017,

it is mandatory for a listed Company to pay cash dividend to its The required information must reach our Share Registrar by the
shareholders only through electronic mode directly into bank close of business on 17 October 2017; otherwise it will be
account designated by the entitled shareholders. assumed that the shares are equally held by Principal Shareholder
and Joint Holder(s).
In order to receive dividend directly into their bank account,
shareholders are requested to fill in Electronic Credit Mandate

Financial Highlights
Total Assets Rs. in million Total Equity and Liabilities Rs. in million
2,000 2,000
1,800 1,800
1,600 1,600
1,400 1,400
1,200 1,200
1,000 1,000
800 800
600 600
400 400
200 200
- -
2018 2017 2016 2015 2014 2013 2018 2017 2016 2015 2014 2013
Net Sales Rs. in million Operating Profit Rs. in million
180
3,000 160
2,500 140
120
2,000
100
1,500 80
1,000 60
40
500
20
- -
2018 2017 2016 2015 2014 2013 2018 2017 2016 2015 2014 2013
Gross Profit Cash and Cash Equivalents
111
200 233 203
112
148
93
209
328 318
235
141
2018 2017 2016 2015 2014 2013 2018 2017 2016 2015 2014 2013

Six Years Summary
Six Years Summary 2018 2017 2016 2015 2014 2013

Rupees in ‘000 Restated Restated
Trading Results
Net turnover 2,926,076 1,826,825 2,012,770 2,391,891 2,467,544 2,350,872
Gross profit 232,513 209,820 141,328 328,017 147,842 200,139
Operating profit 83,557 85,793 17,612 168,603 49,352 94,198
Earnings before interest, taxes,depreciation and amortisation 173,717 160,532 105,748 261,665 107,258 154,162
Earnings after tax 19,596 29,033 (7,551) 96,206 28,282 57,338
Interim dividend - - - - - 22,640
Final dividend 22,489 22,489 22,929 - 40,752 40,752
Earnings / (loss) before tax 53,581 50,631 (13,968) 150,228 45,624 90,125
Financial Position
Share capital 224,888 224,888 224,888 224,888 226,400 226,400
Reserves and Retained Earnings 547,533 553,431 557,259 598,581 188,581 201,051
Property, plant, equipment and intangibles 1,195,638 1,221,019 1,139,793 1,040,987 238,311 247,659
Long‐term/deferred liabilities 377,031 382,437 463,746 538,986 269,776 203,141
Inventory 95,341 50,755 37,536 41,489 11,707 85,920
Debtor 17,654 5,001 11,400 17,581 15,450 23,266
Creditor 179,374 104,014 110,927 143,551 149,837 179,633
Total Assets 1,750,238 1,643,693 1,610,335 1,641,151 825,945 780,494
Total current assets 402,295 301,658 331,917 443,387 479,211 393,483
Total current liabilities 600,786 482,937 364,442 289,790 154,626 180,912
Number of issued shares 22,489 22,489 22,489 22,489 22,640 22,640
Cash & Cash equuivalents 110,922 111,924 92,869 234,771 317,826 203,241
Investors Information
Profitability Ratios
Gross profit ratio 7.95% 11.49% 7.02% 13.71% 5.99% 8.51%
Profit / (loss) before tax to sales 1.83% 2.77% -0.69% 6.28% 1.85% 3.83%
Profit / (loss) after tax in percent of sales 0.67% 1.59% -0.38% 4.02% 1.15% 2.44%
EBITDA Margin to sales 5.94% 8.79% 5.25% 10.94% 4.35% 6.56%
Return on equity/ capital employed 7.26% 7.39% -1.46% 17.53% 6.82% 13.41%
Activity / Turnover Ratios

Inventory turnover ratio (in times) 28.25 36.63 47.36 77.60 47.52 44.20
Inventory turnover ratio (no. of days) 12.9 10 8 5 8 10.00
Debtor turnover ratio (in times) 165 222.77 138.90 144.83 127.47 132.07
Debtor turnover ratio(no.of days) 2.2 2 3 3 3 2
Creditor turnover ratio (in times) 15.02 13.82 13.60 13.77 13.83 10.54
Creditor turnover ratio (no. of days) 24 26 27 27 26 35
Operating cycle (no. of days) (8.9) (14) (16) (19) (16) (22)
Total assets turnover ratio (in times) 1.67 1.12 1.24 1.94 3.07 2.62
Total assets turnover ratio (in days) 218 325.08 294.82 188.24 118.81 139.44
Liquidity Ratios
Current ratio 0.67 0.62 0.91 1.53 3.10 2.17
Quick/ acid test ratio 0.51 0.52 0.81 1.39 3.02 1.70
Cash to Current Liabilities 0.18 0.23 0.25 0.81 2.06 1.12
Investment/Market Ratios
Earnings / (loss) per share 0.87 1.29 (0.34) 4.26 1.25 2.53
Break‐up value per share 34.35 34.61 34.78 24.40 18.33 18.88
Cash Flows
Net cash flow from operating activities 68,580 187,794 (1,526) 174,932 186,022 3,787
Net cash flow from investing activities (61,494) (151,638) (154,125) (75,929) (34,195) 12,096
Net cash flow from financing activities (8,088) (17,101) 13,749 (182,109) (37,242) (53,084)
Net (decrease) / increase in cash and cash equivalents (1,002) 19,055 (141,902) (83,106) 114,585 (37,201)

Horizontal Analysis of Financial Statements
2018 2017 2016 2015 2014 2013

Restated Restated
----------------------------------------- Rupee 000 -----------------------------------------
Balance Sheet
Non‐current assets 1,347,943 1,342,035 1,278,418 1,197,764 346,734 387,011

Current assets 402,295 301,658 331,917 443,387 479,211 393,483
Total assets 1,750,238 1,643,693 1,610,335 1,641,151 825,945 780,494
Equity 497,656 503,554 507,382 537,610 401,543 396,441

Surplus on revaluation of fixed assets 274,765 274,765 274,765 274,765 - -
Non‐current liabilities 377,031 382,437 463,746 538,986 269,776 203,141
Current Liabilities 600,786 482,937 364,442 289,790 154,626 180,912
Total equity and liabilities 1,750,238 1,643,693 1,610,335 1,641,151 825,945 780,494
Net sales 2,926,076 1,826,825 2,012,770 2,391,891 2,467,544 2,350,872

Cost of product sold (2,693,563) (1,617,005) (1,871,442) (2,063,874) (2,319,702) (2,150,733)
Gross profit 232,513 209,820 141,328 328,017 147,842 200,139
Administrative expenses (108,690) (92,102) (80,816) (73,320) (53,290) (48,011)

Distribution and marketing expenses (64,224) (62,752) (65,283) (90,100) (68,965) (66,407)
Other income 35,525 49,812 45,133 25,949 31,662 23,115
Other expenses (11,567) (18,985) (22,750) (21,943) (7,897) (14,638)
(148,956) (124,027) (123,716) (159,414) (98,490) (105,941)
Operating profit 83,557 85,793 17,612 168,603 49,352 94,198
Finance costs (29,976) (35,162) (31,580) (18,375) (3,728) (4,073)
Profit / (loss) before taxation 53,581 50,631 (13,968) 150,228 45,624 90,125
2018 2017 2016 2015 2014 2013

--------------------% increase/ (decrease) over preceeding year--------------------
Balance Sheet
Non‐current assets 0.44% 4.98% 6.73% 245.44% -10.41% -6.05%

Current assets 33.36% -9.12% -25.14% -7.48% 21.79% 23.50%
Total assets 6.48% 2.07% -1.88% 98.70% 5.82% 6.84%
Equity -1.17% -0.75% -5.62% 33.89% 1.29% 3.83%

Non‐current liabilities -1.41% -17.53% -13.96% 99.79% 32.80% 5.26%
Current Liabilities 24.40% 32.51% 25.76% 87.41% -14.53% 16.17%
Total equity and liabilities 6.48% 2.07% -1.88% 98.70% 5.82% 6.84%
Net sales 60.17% -9.24% -15.85% -3.07% 4.96% 18.87%

Cost of product sold 66.58% -13.60% -9.32% -11.03% 7.86% 22.05%
Gross profit 10.82% 48.46% -56.91% 121.87% -26.13% -7.13%
Administrative expenses 18.01% 13.97% 10.22% 37.59% 11.00% 15.83%

Distribution and marketing expenses 2.35% -3.88% -27.54% 30.65% 3.85% 7.59%
Other operating income -28.68% 10.37% 73.93% -18.04% 36.98% 8.93%
Other operating expenses -39.07% -16.55% 3.68% 177.87% -46.05% -19.05%
Operating profit -2.61% 387.13% -89.55% 241.63% -47.61% -18.42%
Finance costs -14.75% 11.34% 71.86% 392.89% -8.47% 11.90%
Profit before taxation 5.83% -462.48% -109.30% 229.27% -49.38% -19.41%

38
2018 2017 2016 2015 2014 2013
----Rupee 000---- % ----Rupee 000---- % ----Rupee 000---- % ----Rupee 000---- % ----Rupee 000---- % ----Rupee 000---- %
-------Restated-------
Balance Sheet
Non‐current assets 1,347,943 77% 1,342,035 82% 1,278,418 79% 1,197,764 73% 346,734 42% 387,011 50%
Current assets 402,295 23% 301,658 18% 331,917 21% 443,387 27% 479,211 58% 393,483 50%
Total assets 1,750,238 100% 1,643,693 100% 1,610,335 100% 1,641,151 100% 825,945 100% 780,494 100%
Equity 497,656 28% 503,554 31% 507,382 32% 537,610 33% 401,543 49% 396,441 51%
Surplus on revaluation of fixed assets 274,765 16% 274,765 17% 274,765 17% 274,765 17%
Non‐current liabilities 377,031 22% 382,437 23% 463,746 28% 538,986 32% 269,776 32% 203,141 26%
ANNUAL REPORT 2018

Current Liabilities 600,786 34% 482,937 29% 364,442 23% 289,790 18% 154,626 19% 180,912 23%
Total equity and liabilities 1,750,238 100% 1,643,693 100% 1,610,335 100% 1,641,151 100% 825,945 100% 780,494 100%
Net sales 2,926,076 100% 1,826,825 100% 2,012,770 100% 2,391,891 100% 2,467,544 100% 2,350,872 100%
Cost of product sold (2,693,563) -92% (1,617,005) -89% (1,871,442) -93% (2,063,874) -86% (2,319,702) -94% (2,150,733) -91%
Gross profit 232,513 8% 209,820 11% 141,328 7% 328,017 14% 147,842 6% 200,139 9%
Administrative expenses (108,690) -4% (92,102) -5% (80,816) -4% (73,320) -3% (53,290) -2% (48,011) -2%
Distribution and marketing expenses (64,224) -2% (62,752) -3% (65,283) -3% (90,100) -4% (68,965) -3% (66,407) -3%
Other operating income 35,525 1% 49,812 3% 45,133 2% 25,949 1% 31,662 1% 23,115 1%
Other operating expenses (11,567) 0% (18,985) -1% (22,750) -1% (21,943) -1% (7,897) 0% (14,638) -1%
(148,956) -5% (124,027) -6% (123,716) -6% (159,414) -7% (98,490) -4% (105,941) -5%
Operating profit 83,557 3% 85,793 4% 17,612 1% 168,603 7% 49,352 2% 94,198 4%
Finance costs (29,976) -1% (35,162) -2% (31,580) -2% (18,375) -1% (3,728) 0% (4,073) 0%
Profit / (loss) before taxation 53,581 2% 50,631 3% (13,968) -1% 150,228 6% 45,624 2% 90,125 4%
Vertical Analysis of Financial Statements
Statement of Compliance with Code of Corporate
Governance, 2012 and the Listed Companies
(Code of Corporate Governance) Regulations, 2017
For the year ended 30 June 2018
The Company has complied with the requirements of the Code of Corporate Governance, 2012
and the Listed Companies (Code Of Corporate Governance) Regulations, 2017 (here-in-after
referred to as ‘Codes’) in the following manner:
1. The total number of directors are 8 as per the following:s
a. Male : 7
b. Female : 1
2. The composition of board is as follows:
Category Name
Independent Director No such director
Other Non-executive Directors Mr. Shahriar D. Sethna
Mrs. Hamdia Fatin Niazi
Mr. Darayus T. Sethna
Mr. Tassaduq Hussain Niazi
Mr. Etrat Hussain Rizvi
Executive Directors Mr. Asad Alam Niazi
Mr. Saifee Zakiuddin
Mr. Khalid Dar
3. The Directors have confirmed that none of with the dates on which they were approved or
them is serving as a director on more than amended has been maintained.
five listed companies, including this company
(excluding the listed subsidiaries of listed 6. All the powers of the Board have been duly
holding companies where applicable). exercised and decisions on relevant matters
have been taken by Board / Shareholders as
4. The Company has prepared a Code of empowered by the relevant provisions of the
Conduct and has ensured that appropriate Companies Act, 2017 (“Act”) and Codes.
steps have been taken to disseminate it
throughout the Company along with its 7. The meetings of the Board were presided
supporting policies and procedures. over by the Chairman and, in his absence, by
a director elected by the Board for this
5. The Board has developed a vision / mission purpose. The Board has complied with the
statement, overall corporate strategy and requirements of Act and the Codes with
significant policies of the Company. A complete respect to frequency, recording and
record of particulars of significant policies along circulating minutes of meeting of Board.

8. The Board of directors do have a formal were not held by separate persons, since the
policy and transparent procedures for effectiveness of the Codes, however,
remuneration of Directors in accordance with subsequent to the effectiveness of the
the Act and these Codes. Codes, the Company appointed new
Company Secretary.
9. During the year, the Board has not arranged
any Director’s Training Program, as the same 11. The Chief Financial Officer and Chief
is yet to be arranged in the subsequent Execution Officer have duly endorsed the
financial year. financial statements before approval of the
Board.
10. The Board has approved appointment of
CFO, Company Secretary and Head of 12. The Board has formed Committees
Internal Audit, including their remuneration comprising of members given below.
and terms and conditions of employment and However, the chairperson of the Audit
complied with relevant requirements of the Committee and Human Resource and
Codes, except that the offices of Chief Remuneration Committee are not
Financial Officer and Company Secretary independent member.
a) Audit Committee
Mrs. Hamdia Fatin Niazi Chairperson
Mr. Shahiar D. Sethna Member
Mr. Darayus T. Sethna Member
b) Human Resource and Remuneration Committee

Mr. Darayus T. Sethna Chairman
Mr. Asad Alam Niazi Member
Mrs. Hamdia Fatin Niazi Member
13. The terms of reference of the aforesaid 14. The frequency of meetings (quarterly/half
committees have been formed, documented yearly/yearly) of the Committees were as per
and advised to the Committee for compliance. following:
a) Audit Committee 04 quarterly meetings were held in the

financial year 2017-18
b) Human Resource and
Remuneration Committee 02 Meetings were held in the financial year 2017-18

Statement of Compliance with Code of Corporate
Governance, 2012 and the Listed Companies
(Code of Corporate Governance) Regulations, 2017
For the year ended 30 June 2018
15. The Board has set up an effective internal International Federation of Accountants
audit function, which is considered suitably (IFAC) guidelines on code of ethics as
qualified and experienced for the purpose adopted by the ICAP.
and is conversant with the policies and
procedures of the Company. 17. The statutory auditors or the persons
associated with them have not been
16. The statutory auditors of the Company have appointed to provide other services except in
confirmed that they have been given a accordance with the Act, these Codes or any
satisfactory rating under the quality control other regulatory requirement and the auditors
review program of the ICAP and registered have confirmed that they have observed IFAC
with Audit Oversight Board of Pakistan, that guidelines in this regard.
they or any of the partners of the firm, their
spouses and minor children do not hold 18. We confirm that all other requirements of the
shares of the company and that the firm and Codes have been complied with, except for
all its partners are in compliance with matters as stated in point 2, 10 and 12 above.
Saifee Zakiuddin Asad Alam Khan

Director Chief Executive Officer
Dated: September 25, 2018

A member firm of Ernst & Young Global Limited
Unconsolidated Financial
Statements
For the Year Ended June 30, 2018
Burshane LPG (Pakistan) Limited

Unconsolidated Statement of Financial Position
As at June 30, 2018
Note June 30, June 30, June 30,
2018 2017 2016
(Restated) (Restated)
-------------------- (Rupees in '000) -------------------
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 7 742,636 758,226 750,768
Intangible assets 8 453,002 462,793 389,026
Long-term investment 9 50,000 50,000 50,000
Long-term loans 10 1,466 1,030 11,750
Long-term deposits 11 100,839 69,986 76,874
1,347,943 1,342,035 1,278,418
CURRENT ASSETS
Stores and spares 12 2,606 5,800 3,924
Stock-in-trade 13 95,341 50,755 37,536
Trade debts 14 17,654 5,001 11,400
Loans and advances 15 120,714 75,209 143,866
Deposits, prepayments and other receivables 16 45,071 47,287 39,591
Taxation - net 9,987 5,682 2,731
Cash and bank balances 17 110,922 111,924 92,869
402,295 301,658 331,917
1,750,238 1,643,693 1,610,335
EQUITY AND LIABILITIES
EQUITY
Share capital 18 224,888 224,888 224,888
Capital reserve 19 153,458 153,458 153,458

Revenue reserves 19 143,529 146,422 139,878
Actuarial (loss) / gain on remeasurement of
retirement and other service benefits 19 (24,219) (21,214) (10,842)
Revaluation surplus on property, plant and
equipment 19 274,765 274,765 274,765
547,533 553,431 557,259
772,421 778,319 782,147
NON-CURRENT LIABILITIES
Long-term loan 20 - - 86,161
Liabilities under finance lease 21 938 3,940 6,942
Deferred taxation - net 22 1,948 4,898 1,586
Cylinder and regulator deposits 23 374,145 373,599 369,057
377,031 382,437 463,746
CURRENT LIABILITIES
Loan from a subsidiary company 24 50,000 50,000 40,000
Current maturity of long-term loan 20 254,439 254,439 168,278
Current maturity of liabilities under finance lease 21 3,002 3,002 3,002
Loan from directors - - 18,818
Trade and other payables 25 179,374 104,014 110,927
Unclaimed dividends 26 53,676 36,273 19,065
Accrued mark-up on long-term loan 60,295 35,209 4,352
600,786 482,937 364,442
CONTINGENCIES AND COMMITMENTS 27
1,750,238 1,643,693 1,610,335
The annexed notes 1 to 48 form an integral part of these unconsolidated financial statements.
Chief Executive Officer Chief Financial Officer Director

Unconsolidated Profit or Loss
Note 2018 2017

--------- (Rupees in '000) ---------
Sales - net 28 2,926,076 1,826,825
Cost of sales 29 (2,693,563) (1,617,005)
Gross profit 232,513 209,820
Administrative expenses 30 (108,690) (92,102)

Distribution and marketing expenses 31 (64,224) (62,752)
Other income 32 35,525 49,812
Other expenses 33 (11,567) (18,985)
Operating profit 83,557 85,793
Finance costs 34 (29,976) (35,162)
Profit before taxation 53,581 50,631
Taxation 35 (33,985) (21,598)
Profit for the year 19,596 29,033
Earnings per share - basic and diluted 36 Rs. 0.87 Rs. 1.29

Unconsolidated Statement of Comprehensive Income
2018 2017
--------- (Rupees in '000) ---------
Other comprehensive income for the year
Items that will not be reclassified subsequently to profit or loss:
Acturial loss on remeasurement of retirement and other service benefits (3,005) (10,372)
Total comprehensive income for the year 16,591 18,661

Unconsolidated Statement of Cash Flows
Note 2018 2017

--------- (Rupees in '000) ---------
CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 40 114,476 193,981
Retirement and other service benefits 9,123 (24,030)
Finance costs paid (4,621) (4,305)
Taxes paid (41,240) (21,237)
Long-term loans - net (436) 10,720
Long-term deposits - net (30,853) 6,888
Cylinder and regulator deposits - net 22,131 25,777
Net cash generated from operating activities 68,580 187,794
CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property, plant and equipment (14,629) (33,064)
Purchase of intangible assets (50,150) (123,000)
Interest received 3,285 4,426
Net cash used in investing activities (61,494) (151,638)
CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid (5,086) (5,281)
Repayment of long-term loan - -
Loan obtained from a subsidiary company - 10,000
Repayment of loan from directors - (18,818)
Repayment of liabilities under finance lease (3,002) (3,002)
Net cash used in financing activities (8,088) (17,101)
Net (decrease) / increase in cash and cash equivalents (1,002) 19,055
Cash and cash equivalents at beginning of the year 111,924 92,869
Cash and cash equivalents at end of the year 110,922 111,924

Unconsolidated Statement of Changes In Equity
Reserves
Capital Revenue
Actuarial (loss) /
gain on Revaluation
Issued, remeasurement surplus of
subscribed Reserve on Unappro- of retirement and property,
& paid-up amalga- General priated other service plant and Total Total
Capital mation reserve profit benefits equipment reserves equity
------------------------------------------------------- (Rupees in '000) -------------------------------------------------------
Balance as at July 01, 2016 224,888 153,458 90,000 49,878 (10,842) - 282,494 507,382
Adjustment due to change in

accounting policy as stated in note 3.1 - - - - - 274,765 274,765 274,765
Balance as at July 01, 2016 - restated 224,888 153,458 90,000 49,878 (10,842) 274,765 557,259 782,147
Profit for the year - - - 29,033 - - 29,033 29,033
Other comprehensive
income for the year - - - - (10,372) - (10,372) (10,372)
Total comprehensive income

for the year - - - 29,033 (10,372) - 18,661 18,661
Final dividend @ Re.1 per share - - - (22,489) - - (22,489) (22,489)
Balance as at June 30, 2017 - restated 224,888 153,458 90,000 56,422 -21,214 274,765 553,431 778,319
Other comprehensive

for the year - - - 19,596 (3,005) - 16,591 16,591
Balance as at June 30, 2018 224,888 153,458 90,000 53,529 (24,219) 274,765 547,533 772,421

Notes To The Unconsolidated Financial Statements
1. LEGAL STATUS AND OPERATIONS
1.1 Burshane LPG (Pakistan) Limited (the Company) is a limited liability company incorporated in Pakistan and is listed
on the Pakistan Stock Exchange. The registered office of the Company is situated at Suite 101, 1st Floor, Horizon
Vista, Plot No. Commercial-10, Block-4, Scheme No. 5, Clifton, Karachi.
The principal activity of the Company is storing and marketing of Liquefied Petroleum Gas (LPG) throughout
Pakistan and trading of Low Pressure Regulators (LPR).
The Company was a subsidiary of H.A.K.S. Trading (Private) Limited (HTPL). However, consequent to the approval
of the scheme of arrangement for amalgamation of HTPL and the Company by the High Court of Sindh (the Court),
HTPL was amalgamated with the Company on February 20, 2015, as more fully explained in note 6.
These unconsolidated financial statements (the financial statements) are separate financial statements of the
Company in which investment in subsidiary is accounted for at cost less accumulated impairment losses, if any. In
addition, the Company prepares consolidated financial statements which comprise of the Company's financial
statements and its subsidiary's financial statements - Burshane Auto Gas (Private) Limited. The Company's another
subsidiary which is Burshane Trading (Private) Limited's share capital has not been issued as at the reporting date.
Geographical location and addresses of major business units of the Company are as under:
Karachi: Purpose:
Plot No. 70, Sector 7-D,Korangi Filling Plant-1, Adjacent to LPG Storage & Flling Plant
Pakistan Refinery Limited, Korangi Creek
Faisalabad: Purpose:
LPG Storage & Filling Plant, Near Railway Station, Abbaspur LPG Storage & Flling Plant
2. SUMMARY OF SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING THE COMPANY'S FINANCIAL POSITION
AND PERFORMANCE
- The highest bid of signature bonus was placed by the Company and secured a five year supply and purchase contract
from Oil & Gas Development Company Limited (OGDCL) as mentioned in note 8.4
- Adoption of Companies Act, 2017 mentioned in note 3.1
3. BASIS OF PREPARATION
3.1 Statement of compliance
These unconsolidated financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for financial reporting. The accounting and reporting standards as applicable
in Pakistan comprise of International Financial Reporting Standards (IFRS), issued by International Accounting
Standard Board (IASB) as notified directives issued under the Act differ from the IFRS standards, the provisions
of and directives issued under the Act have been followed.
The Act has also brought certain changes with regard to the preparation and presentation of these unconsolidated
financial statements. These changes, amongst others, included change in respect of presentation and measurement of
revaluation surplus on property, plant and equipment as fully explained in note 4.2 of these unconsolidated financial
statements, change in nomenclature of primary statements. Further, the disclosure requirements contained in the fourth
schedule of the Act have been revised, resulting in elimination of duplicative disclosure with the IFRS disclosure
requirements and incorporation of additional amended disclosures including, but not limited to, particulars of immovable
assets of the Company (refer note 7.1.6), management assessment of sufficiency of tax provision in the unconsolidated
financial statements (refer note 35.2), change in threshold for identification of executives (refer note 10 & 37), additional
disclosure requirements for related parties (refer note 39.3).

3.2 Basis of measurement
These unconsolidated financial statements have been prepared under the historical cost convention, unless
otherwise specifically stated.
3.3 Separate financial statements
These unconsolidated financial statements represent the separate financial statements of the Company. The
consolidated financial statements of the Company and its subsidiary are presented separately.
3.4 Functional and presentation currency
These unconsolidated financial statements have been presented in Pakistani rupee, which is the Company's
functional and presentation currency.
3.5 New Standards, Interpretations and Amendments
The Company has adopted the following amendments to the accounting standards which became effective for
the current year:
IFRS 7 – Financial Instruments: Disclosures - Servicing contracts

lAS 12 Income Taxes — Recognition of Deferred Tax Assets for Unrealized losses (Amendments)
3.6 Standards, interpretations and amendments to approved accounting standards that are not yet effective
The following amendments and interpretations with respect to the approved accounting standards as applicable
in Pakistan would be effective from the dates mentioned below against the respective standard or interpretation:
Effective date
(annual periods
Standards or interpretations beginning on or after)
IFRS 2 – Share Based Payments – Classification and Measurement

of Share Based Payments Transactions (Amendments) January 01, 2018
IFRS 4 – Insurance Contracts – Applying IFRS 9 Financial Instruments with
IFRS 4 (Amendments) January 01, 2018
IFRS 9 — Financial Instruments July 01, 2018
IFRS 9 — Prepayment Features with Negative Compensation — (Amendments) January 01, 2018
IFRS 15 – Revenue from Contracts with Customers July 01, 2018
IFRS 16 – Leases January 01, 2019
lAS 19 - Plan Amendment, Curtailment or Settlement (Amendments) January 01, 2019
IAS 28 - Long-term Interests in Associates and Joint Ventures January 01, 2019
– (Amendments)
IFRIC 22 – Foreign Currency Transactions and Advance Consideration January 01, 2018
IFRIC 23 – Uncertainty over Income Tax Treatments January 01, 2019
The above standards and amendments are not expected to have any material impact on the Company's unconsolidated
financial statements in the period of initial application except for IFRS 15 - Revenue from Contracts with Customers.
The Company is currently evaluating the impact of this Standard on the unconsolidated financial statements.
In addition to the above standards and amendments, improvements to various accounting standards have also
been issued by the IASB in December 2016 and December 2017. Such improvements are generally effective for
accounting periods beginning on or after January 01, 2018 and January 01, 2019 respectively. The Company
expects that such improvements to the standards will not have any material impact on the Company's unconsolidated
financial statements in the period of initial application.
The IASB has also issued the revised Conceptual Framework for Financial Reporting (the Conceptual Framework)
in March 2018 which is effective for annual periods beginning on or after January 01, 2020 for preparers of financial
statements who develop accounting policies based on the Conceptual Framework. The revised Conceptual
Framework is not a standard, and none of the concepts override those in any standard or any requirements in a
standard. The purpose of the Conceptual Framework is to assist IASB in developing standards, to help preparers
develop consistent accounting policies if there is no applicable standard in place and to assist all parties to
understand and interpret the standards.

Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the purpose of
applicability in Pakistan. The Company is currently evaluating the impact on the unconsolidated financial statements.
IASB effective
date (annual periods
Standards beginning on or after)
IFRS 14 – Regulatory Deferral Accounts January 01, 2016

IFRS 17 – Insurance Contracts January 01, 2021
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these unconsolidated financial statements are set out below.
These policies have been consistently applied to all years presented, unless otherwise stated.
4.1 Property, plant and equipment
4.1.1 Operating fixed assets
Owned
These are stated at cost less accumulated depreciation and any accumulated impairment losses if any, except for
freehold land and leasehold land, which are stated at revalued amount.
Depreciation is charged to unconsolidated statement of profit or loss using straight-line method whereby the cost
of an asset is allocated over its estimated useful life at the rates given in note 7.1. Depreciation on additions is
charged from the month in which the asset is available for use, while no depreciation is charged in the month in
which the asset is disposed off. The residual values, useful lives and depreciation method are reviewed and adjusted,
if appropriate, at each reporting date.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. Maintenance
and normal repairs are charged to unconsolidated statement of profit or loss as and when incurred.
The gain or loss on disposal or retirement of an asset represented by the difference between the sale proceeds
and the carrying amount of the asset is recognised as an income or expense in the unconsolidated statement of
profit or loss in the period of disposal.
Leased
Leases of property, plant and equipment where the Company has substantially all the risks and rewards of ownership,
are classified as finance lease. Upon initial recognition, the leased asset is measured at an amount equal to the
lower of its fair value and present value of minimum lease payments. Outstanding obligations under the lease less
finance cost allocated to future periods are shown as a liability.
Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain
that the Company will obtain ownership by the end of the lease term.
Finance cost under lease agreements are allocated to the period of the lease term so as to produce a constant
periodic rate of finance cost on the remaining balance of principal liability for each period.
4.1.2 Capital work-in-progress
Capital work-in-progress is stated at cost less accumulated impairment losses, if any. It consists of expenditure
incurred in respect of tangible assets in the course of their construction and installation, including financial charges
on borrowings, if any, for financing the project until such projects are completed or become operational. Transfers
are made to relevant asset category as and when assets are available for use.

4.2 Revaluation surplus on property, plant and equipment
As disclosed in note 3.1 to the unconsolidated financial statements, the Companies Act, 2017 (the Act) became
applicable for the first time for the preparation of the Company's annual financial statements for the year ended June
30, 2018. Accordingly, the Company has also changed its accounting policy relating to presentation and
measurement of surplus on revaluation of property plant and equipment. The above change in the accounting policy
has been applied retrospectively and comparative information have been restated in accordance with the requirement
of International Accounting Standard (lAS) —16 "Property, Plant and Equipment" and lAS 8 "Accounting Policies,
Changes in Accounting Estimates and Errors". Due to the above change in accounting policy, the Company has
presented its statement of financial position as at the beginning of the earliest comparative period i.e., July 01, 2016,
and related notes in accordance with requirement of lAS 1 — Presentation of Financial Statements (Revised) (lAS 1).
Had the accounting policy not been changed, the revaluation surplus on property, plant and equipment would have
been shown as a separate line item (below equity in the statement of financial position) amounting to PKR 274.765
million for the year ended June 30, 2017 and 2016 respectively.
4.3 Intangible assets
An intangible asset is recognised if it is probable that the future economic benefits attributable to the asset will
flow to the Company and that the cost of such asset can also be measured reliably.
i) Software
Costs that are directly associated with identifiable computer software and have probable economic benefits
exceeding one year, are recognised as an intangible asset. Costs include the purchase cost of software,
implementation cost and related overhead cost. Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated
amortisation and any accumulated impairment losses thereon.
Expenditure which enhances or extends the performance of computer software beyond its original specification
and useful life is recognised as a capital improvement and added to the original cost of the software.
ii) Goodwill
This represents excess of cost of acquisition over fair value of the identifiable assets and liabilities of the
Company at the time of acquisition by HTPL.
Goodwill on acquisition is not amortised but tested annually for impairment and carried at cost less
accumulated impairment losses, if any.
iii) Trademarks
This represents separately acquired trade marks with indefinite useful life. These are stated at cost less
accumulated impairment losses, if any. Carrying amounts of trademarks are subject to impairment review
at each balance sheet date.
Intangible assets, where applicable, are amortised from the month when such assets are available for use
on straight line method whereby the cost of an intangible asset is allocated over its estimated useful life,
at the rates given in note 7.
The useful lives of intangible assets are reviewed at each balance sheet date to determine whether events
and circumstances continue to support an indefinite useful life assessment for the asset.
4.4 Investment in a subsidiary company
Investment in subsidiary is initially recognised at cost. At subsequent reporting dates, the recoverable amounts
are estimated to determine the extent of impairment losses, if any, and carrying amounts of the investment is
adjusted accordingly.

The gain or loss on disposal of an interest in subsidiary, represented by the difference between the sale proceeds
and the carrying amount of investment, is recognised as an income or expense in profit or loss account in the
period of disposal.
4.5 Impairment of non-financial assets
The carrying amounts of the Company’s assets are reviewed at each balance sheet date to determine whether
there is any indication of impairment loss. If any such indication exists, the asset’s recoverable amount is estimated
to determine the extent of impairment loss, if any. An impairment loss is recognised for the amount by which the
assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair
value less costs to sell and value in use. Impairment losses are charged to profit or loss account.
4.6 Financial instruments
4.6.1 Financial assets
The Company classifies its financial assets at initial recognition in the following categories depending on
the nature and purpose for which the financial assets were acquired:
(a) At fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading and financial
assets designated upon initial recognition as at fair value through profit or loss. A financial asset is
classified as held for trading if acquired principally for the purpose of selling in the short term. Assets
in this category are classified as current assets.
(b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They are included in current assets, except those having maturities
greater than twelve months after the balance sheet date, which are classified as non-current assets.
Loans and receivables comprise trade debts, loans, advances, deposits, interest accrued, other
receivables and cash and bank balances.
(c) Available-for-sale
Available-for-sale financial assets are non-derivatives that are either designated investments in this
category or not classified in any of the other categories. They are included in non-current assets unless
these mature or the management intends to dispose off the investments within twelve months from
the reporting date.
(d) Held-to-maturity
Financial assets with fixed or determinable payments and fixed maturity, where management has
positive intention and ability to hold till maturity are classified as held-to-maturity.
All financial assets are recognised at the time when the Company becomes a party to the contractual
provisions of the instrument. Regular way purchases and sales of investments are recognised and
derecognised on trade date (the date on which the Company commits to purchase or sell the asset).
Financial assets are initially recognised at fair value plus transaction costs except for financial assets at fair
value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised
at fair value and transaction costs are expensed in the profit and loss account. Financial assets are
derecognised when the rights to receive cash flows from the assets have expired or have been transferred
and the Company has transferred substantially all the risks and rewards of ownership. Available-for-sale
financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value.
Loans and receivables are carried at amortised cost using the effective interest rate method.
The Company assesses at each reporting date whether there is objective evidence that any investment is
impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss that had
been recognised in other comprehensive income shall be reclassified from equity to profit and loss account
as a reclassification adjustment. Impairment losses recognised in the profit and loss account on equity
instruments classified as available-for-sale are not reversed through the profit and loss account.

4.6.2 Financial liabilities
All financial liabilities are recognised at the time when the Company becomes a party to the contractual
provisions of the instrument. Financial liabilities are recognised initially at fair value less any directly
attributable transaction cost. Subsequent to initial recognition, these are measured at amortised cost using
the effective interest rate method.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expired. Where an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as a derecognition of the original liability and the recognition of a new liability, and the difference
in respective carrying amounts is recognised in the profit and loss account.
4.6.3 Offsetting of financial assets and financial liabilities
A financial asset and a financial liability are offset and the net amount is reported in the balance sheet if the
Company has a legally enforceable right to set-off the recognised amounts and intends either to settle on
a net basis or to realise the asset and settle the liability simultaneously.
4.7 Stores and spares
Stores and spares to be consumed in the ordinary course of business are valued at lower of weighted average
cost and net realizable value (NRV) except for those in transit, if any, which are stated at cost. Cost comprises of
invoice value plus other direct costs but excludes borrowing costs. Provision is made for slow moving and obsolete
items wherever necessary and is recognised in the profit or loss account.
4.8 Stock-in-trade
Stock-in-trade is valued at the lower of cost and net realisable value (NRV). Cost is determined using the weighted
average method for both Liquefied Petroleum Gas (LPG) and Low Pressure Regulators (LPR). Items in transit are
valued at cost comprising invoice value plus other charges incurred thereon.
Net realisable value signifies the estimated selling price in the ordinary course of business, less estimated costs
necessary to make the sale.
4.9 Trade debts and other receivables
Trade debts and other receivables are stated initially at fair value and subsequently measured at amortised cost using
the effective interest rate method less provision for impairment, if any. A provision for impairment is established where
there is objective evidence that the Company will not be able to collect all amounts due according to the original terms
of receivables. Trade debts and other receivables are written-off when considered irrecoverable.
4.10 Cash and cash equivalents
Cash and cash equivalents include cash in hand, cash with banks on current, collection, deposit and saving accounts.
4.11 Retirement and other service benefits
4.11.1 Defined benefit plans
The Company operates:
an approved defined benefit gratuity scheme for all permanent employees and non management employees.
The scheme provides for a graduated scale of benefits dependent on the length of service of the employee on
terminal date, subject to the completion of minimum qualifying period of service. Gratuity is based on employee’s
last drawn salary; and an approved defined benefit pension scheme for management staff. The scheme provides
pension based on the employees’ last drawn salary subject to the completion of minimum qualifying period of
service. Pensions are payable for life and thereafter to surviving spouses and / or dependent children.

Both the above schemes are funded and contributions to them are made monthly on the basis of actuarial
valuation and in line with the provisions of the Income Tax Ordinance, 2001. The gratuity and pension funds
are governed under the Trust Act, 1882, Trust Deed and Rules of Fund, repealed Companies Ordinance,
1984, the Income Tax Ordinance,2001 and the Income Tax Rules, 2002. Responsibility for governance of
plan, including investment decisions and contribution schedule lie with the Board of Trustees of the Funds.
Further, monthly contributions are made by employees in the defined benefit pension fund at the rate of
1.4% and 1.72% according to their job grades. Actuarial valuations of these schemes are carried out at
appropriate regular intervals.
4.11.2 Defined contribution plan
The Company operates a recognised contributory provident fund for all permanent employees. Equal monthly
contributions are made, both by the Company and the employees at the rate of 4.25% per annum of the basic
salary and 10% per annum of the basic salary for management and non-management employees, respectively.
4.12 Loans and borrowings
Loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Loan and borrowings are
subsequently stated at amortised cost using the effective interest rate method.
Loans and borrowings are classified as current liabilities unless the Company has an unconditional right to defer the
settlement of the liability for at least twelve months after the reporting date.
4.13 Trade and other payables
These are stated initially at fair value and subsequently measured at amortised cost using the effective interest rate
method. Exchange gains and losses arising in respect of liabilities in foreign currency are added to the carrying amount
of the respective liability.
4.14 Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of a past event
and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made
of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect current best
estimate.
4.15 Taxation
4.15.1 Current
Provision for current taxation is based on taxable income at the current rates of taxation after taking into
account tax credits and rebates available, if any, or Minimum Tax on Turnover or Alternate Corporate Tax
whichever is higher in accordance with the provisions of Income Tax Ordinance, 2001.
4.15.2 Deferred
Deferred tax is recognized using the balance sheet liability method, on all temporary differences arising at
the balance sheet date between the tax base of asset and liabilities and their carrying amounts for financial
reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax asset are recognized
for all deductible temporary differences to the extent that it is probable that the future taxable profits will
be available against which the asset may be utilized. Deferred tax asset are reduced to the extent that it is
no longer probable that the related tax benefit will be realized.
The carrying amount of deferred tax asset is reviewed at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred
tax asset to be recognised. Unrecognised deferred tax assets are reassessed at each balance sheet date
and are recognised to the extent that it has become probable that future taxable profit will allow deferred
tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on the tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.

4.16 Foreign currencies
Transactions in foreign currencies are translated into functional currency (Pakistani Rupees) using exchange rates
approximating those ruling at the dates of the transactions. Monetary assets and liabilities in foreign currencies
are translated into Pakistani Rupees at the rates of exchange prevailing at the balance sheet date. Exchange gains
and losses resulting from the settlement of foreign currency transactions and translation of monetary assets and
liabilities at the rates prevailing at the reporting date are included in profit and loss account. Non monetary items
that are measured in terms of a historical cost in foreign currency are not re-translated.
4.17 Revenue recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the
revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable
and is recognised on the following basis:
Sales are recorded at the time of delivery to the distributors and direct customers.
Return on saving account is recorded using effective interest rate method.
Income from dividend, if any, is recognised when right to receive dividend is established.
Other revenues including recovery of storage and handling charges and rental income from storage tank are
accounted for on accrual basis.
4.18 Borrowing costs
Borrowing costs are recognised as an expense in the period in which these are incurred except where such costs
are directly attributable to the acquisition, construction or production of a qualifying asset, in which case such
costs are capitalised as part of the cost of that asset.
4.19 Dividend and appropriation to reserves
Dividend and appropriation to reserves are recognised in the financial statements in the period in which these are
approved.
4.20 Earnings per share
The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit
or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for
the effects of all dilutive potential ordinary shares, if any.
5. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements in conformity with approved accounting standards requires the use of certain
critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s
accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to
accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. In
the process of applying the Company’s accounting policies, management has made the following estimates and judgments
which are significant to the financial statements:
The Company reviews appropriateness of the rates of depreciation, useful lives and residual values used in the
calculation of depreciation. Further where applicable, an estimate of recoverable amount of assets is made for
possible impairment on an annual basis.
The Company reviews appropriateness of the rate of amortisation and useful life used in the calculation for
amortisation. Further where applicable, an estimate of recoverable amount of assets is made for possible impairment
on an annual basis.

5.3 Taxation
In making the estimates for current income taxes payable by the Company, the management considers the
applicable laws and the decisions / judgements of appellate authorities on certain issues in the past. Accordingly,
the recognition of deferred tax is also made, taking into account these judgements and the best estimates of future
results of operations of the Company.
5.4 Provision for retirement and other service benefits
The present value of these obligations depends on a number of factors that are determined on actuarial basis
using a number of assumptions. Any changes in these assumptions will impact the carrying amount of these
obligations. The present values of these obligations and the underlying assumptions are disclosed in note 38.
6 AMALGAMATION WITH HOLDING COMPANY
Effective February 20, 2015, the Company went through the scheme of amalgamation (the Scheme) with HTPL consequent
to the approval of the Scheme by the High Court of Sindh.
According to the Scheme, 0.31 shares of the Company, with a face value of Rs.10 each, were offered to the shareholders
of HTPL for every one share held of HTPL, with a face value of Rs.10 each. As per the Scheme, the Company is required
to allot new shares to the shareholders of HTPL. Upon allotment of new shares, old shares of the Company, held by HTPL,
shall stand cancelled and simultaneously HTPL shall stand dissolved without being wound up. Further, the cancellation
of old shares and issuance of new shares will result in the reduction of 151,154 shares of the Company. The Company is
in the process of completing the legal formalities for the issuance of new shares.
As a result of the Scheme, the assets and liabilities of HTPL were amalgamated with the assets and liabilities of the
Company based on the fair values as of February 19, 2015. The summary of assets and liabilities of HTPL amalgamated
as above, is as under:
Fair value as of
February 19, 2015
(Rupees in '000)
Assets
Goodwill 253,091
Property, plant and equipment 559,529
Cash and bank balances 51
812,671
Liabilities
Long-term loan - secured 400,000
Deferred taxation 14,863
Trade and other payables 2,247
Short-term loans 30,646
Accrued mark-up on long-term loan 17,508
465,264
Net assets 347,407
Represented by:
Unappropriated loss (73,677)
Revaluation surplus on property, plant and equipment 269,138
Reserve on amalgamation 151,946
347,407
Note 2018 2017

--------- (Rupees in '000) ---------
7. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 7.1 742,636 758,226

7.1 Operating fixed assets
June 30, 2018

Cost / Revalued Amount* Accumulated Depreciation Net Book value
Charge for
As at July As at June As at July the year As at June As at June Rate of
01, 2017 Additions 30, 2018 01, 2017 (note 7.1.2) 30, 2018 30, 2018 depreciation
------------------------------------------------------- (Rupees in '000) -------------------------------------------------------
Owned
Freehold land* 15,000 - 15,000 - - - 15,000 Nil
Leasehold land* 509,138 - 509,138 - - - 509,138 Nil
Buildings on
leasehold land 83,294 - 83,294 53,548 2,311 55,859 27,435 5%
Plant and machinery 63,776 574 64,350 50,630 1,313 51,943 12,407 5%
Furniture, fittings,
electrical and other
equipments 80,232 192 80,424 70,240 1,770 72,010 8,414 10%-15%
Vehicles 58,561 94 58,655 57,749 446 58,195 460 20%-25%
Tanks, pipelines
and fittings 96,021 - 96,021 61,896 3,429 65,325 30,696 10%
Fire fighting
equipment 20,970 99 21,069 16,592 989 17,581 3,488 15%
Cylinders and
regulators (note 7.1.3) 578,423 13,328 591,751 447,511 13,662 461,173 130,578 10%
Office equipment 4,715 - 4,715 4,160 85 4,245 470 15%
Computers and
related
accessories 17,161 342 17,503 16,537 279 16,816 687 33.33%
Leased
Vehicles 23,738 - 23,738 13,940 5,935 19,875 3,863 25%
1,551,029 14,629 1,565,658 792,803 30,219 823,022 742,636
June 30, 2017

Charge for
------------------------------------------------------- (Rupees in '000) -------------------------------------------------------
Owned
Buildings on
leasehold land 83,294 - 83,294 51,210 2,338 53,548 29,746 5%
Plant and machinery 62,024 1,752 63,776 49,337 1,293 50,630 13,146 5%
electrical and other
equipments 79,729 503 80,232 68,641 1,599 70,240 9,992 10%-15%
Vehicles 58,561 - 58,561 57,308 441 57,749 812 20%-25%
Tanks, pipelines
and fittings 96,021 - 96,021 61,197 699 61,896 34,125 10%
Fire fighting
equipment 20,761 209 20,970 15,607 985 16,592 4,378 15%
Cylinders and
regulators (note 7.1.3) 548,123 30,300 578,423 435,545 11,966 447,511 130,912 10%
Computers and r
elated accessories 16,861 300 17,161 16,372 165 16,537 624 33.33%
Leased
Vehicles 23,738 - 23,738 8,005 5,935 13,940 9,798 25%
1,517,965 33,064 1,551,029 767,297 25,506 792,803 758,226

7.1.1 As at June 30, 2018, property, plant and equipment having cost of Rs. 552.535 million (2017: Rs. 550.452 million) are fully
depreciated.
7.1.2 The depreciation charge for the year has been allocated as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Cost of products sold 29 6,104 4,773

Administrative expenses 30 10,342 8,021
Distribution and marketing expenses 31 13,773 12,712
30,219 25,506
7.1.3 These are in custody of distributors / customers owing to the nature of business of the Company. The particulars of these
assets have not been disclosed due to several number of customers.
7.1.4 The Company’s freehold land and leasehold land was revalued on 15 June 2015 by M/s. Consultancy Support and Services
and Harvestor Services (Private) Limited, respectively. Had the revaluation not been carried out, the carrying value of
freehold land and leasehold land would have been lower by Rs. 5.627 million (2017: Rs. 5.627 million) and Rs. 266.097
million (2017: Rs. 266.097 million), respectively.
7.1.5 The forced sales value as per the revaluation report as of 15 June 2015 is as follows
Class of asset Rupees in '000
Freehold land 13,500
Leasehold land 462,000
7.1.6 Particulars of immovable assets of the Company are as follows:
Particulars Usage of property Address Covered Area (Sq. ft.)
Leasehold land For future business Commercial - cum- Residential Land Deh 107,811
expansion Okewari, Shahrah - e - Faisal Survey # 47
Leasehold land For future business Commercial - cum- Residential Land Edh 107,811
Building on Plant site Plot No. 70, Sector 7-D,Korangi Filling 9,710
leasehold land Plant-1, Adjacent to Pakistan Refinery
Limited, Korangi Creek, Karachi
Building on Plant site LPG Storage & Filling Plant, Near Railway 6,380
leasehold land Station, Abbaspur, Faisalabad
7.1.7 In the current year and previous year, there were no disposal of assets, hence no disposal to report having book value
exceeding amount of Rs. 0.5 million.

8. INTANGIBLE ASSETS
Cost Accumulated Amortisation Net Book Value
Charge for
As at July 01, A at June 30, As at July 01, the year As at June at June 30, Rate of
2017 Additions 2018 2017 (note 8.6) 30, 2018 2018 amortisation
------------------------------------- (Rupees in '000) -------------------------------------
Goodwill (note 8.1) 253,091 - 253,091 - - - 253,091 Nil
Computer software 4,569 - 4,569 4,569 - 4,569 - 20%
Rights under
supply contracts
(notes 8.2, 8.3 & 8.4) 344,706 50,150 394,856 143,604 59,941 203,545 191,311 7.14%-33%
Trademarks
(note 8.1& 8.5) 8,600 - 8,600 - - - 8,600 Nil
2018 610,966 50,150 661,116 148,173 59,941 208,114 453,002

Charge for
------------------------------------- (Rupees in '000) -------------------------------------
Rights under
supply contracts
(notes 8.2 and 8.3) 221,706 123,000 344,706 94,371 49,233 143,604 201,102 7.14%-33%
Trademarks
(note 8.1& 8.5) 8,600 - 8,600 - - - 8,600 Nil
2017 487,966 123,000 610,966 98,940 49,233 148,173 462,793
8.1 This represents excess of cost of acquisition over fair value of the identifiable assets and liabilities of the Company at the
time of acquisition by HTPL (note 6).
8.1.1 Impairment testing of goodwill and trademarks:
The carrying value of goodwill has been allocated to Burshane LPG (Pakistan) Limited, the cash generating unit
(CGU), which is also the operating and reportable segment for impairment testing.
2018 2017
--------- (Rupees in '000) ---------
Carrying amount of goodwill 253,091 253,091
Carrying amount of trademarks 8,600 8,600
The Company performed its annual impairment test in June 2018 and June 2017. The Company considers the
relationship between its market capitalisation, using the level 1 input of the fair value hierarchy - quoted prices,
and its book value, among other factors, when reviewing for indicators of impairment. As at June 30, 2018, the
market capitalisation of the Company was above the book value of its equity by Rs. 244.077 million, indicating no
impairment of the assets constituting the CGU.

8.2 This includes Rs. 64.206 million representing consideration for beneficial rights of continuous supply of LPG under the
supply contract between Sui Northern Gas Pipelines Limited (SNGPL) and Pak Arab Refinery Limited (PARCO) which was
transferred to the Company as part of its acquisition of the LPG business of SNGPL in October 2001. The asset was
recorded at its cost, which was bifurcated from the total cost of acquisition of Rs. 142 million, on the basis of a valuation
carried out by an independent valuer. This cost has been amortised over a period of fourteen years, being the remaining
period of the supply contract with PARCO at the acquisition date, ended in prior year. Further, on completion of term of
the existing contract during the prior year, the Company entered into an agreement with PARCO for purchase of LPG. The
agreement provides right to supply of LPG for a period of five years for which the Company paid the signature bonus of
Rs. 248 million.
8.3 During 2014, the Company participated in a tender offer by Government Holdings (Private) Limited (GHPL) in respect of
purchase of LPG from Makori Gas Field, TAL Block. On successful submission of the highest bid of Rs. 22.5 million, the
Company had been allotted one lot of LPG of five metric tons per day from the Makori Gas Field, TAL Block. However,
pending the final decision of the Lahore High Court in writ petition No. 6569/2014, to which the Company is not a party,
the LPG purchase agreement between the Company and GHPL has not yet been executed. The supply of LPG from Makori
Gas Field is in accordance with the terms and conditions contained in the tender document and is for a temporary period
of five years. Accordingly, Rs. 22.5 million, paid as signature bonus, being right to continuous supply of LPG, has been
recognised as an intangible asset with a useful life of five years.
8.4 During the year, the Company participated in a tender offer by Oil & Gas Development Company Limited (OGDCL) in
respect of purchase of LPG from Kunnar Pasaki Deep - Tando Allahyar Gas Field District Hyderabad. On successful
submission of the highest signature bonus bid of Rs. 50.150 million, the Company had been allotted one lot of LPG of five
metric tons per day for five years from the Kunnar Pasaki Deep - Tando Allahyar.
8.5 This represents consideration paid to OPI Gas (Private) Limited in 2011 for acquisition of rights and title to "Burshane"
trademarks. These trade marks are considered to have an indefinite useful life, and therefore have not been amortised.
Further, no impairment has been identified in this regard (note 8.1).
8.6 The amortisation for the year has been allocated as follows:
Note 2018 2017
--------- (Rupees in '000) ---------
Cost of products sold 29 59,941 49,233

Administrative expenses 30 - -
59,941 49,233
9. LONG-TERM INVESTMENT
Investment in a subsidiary company - at cost

Burshane Auto Gas (Private) Limited (BAL) 9.1 50,000 50,000
9.1 Represents investment in Burshane Auto Gas (Private) Limited (BAL), a company incorporated in Pakistan. The Company
owns 4,999,997 (2017: 4,999,997) ordinary shares of Rs. 10 each representing 99.99% of the share capital as of the
reporting date. As of the reporting date, the subsidiary company has not yet started its business operations, however the
net assets of the subsidiary company at year end amounted to Rs. 50.23 million (2017: Rs. 50.318 million). Investment in
the subsidiary has been made in accordance with the provisions of the Section 199 of the Act and the rules promulgated
for this purpose.

Note 2018 2017

--------- (Rupees in '000) ---------
10. LONG-TERM LOANS
Unsecured, considered good

Directors 10.2 236 2,569
Executives 10.3 & 10.5 2,104 978
Other employees 10.3 556 509
Supplier 10.4 - 8,504
10.6 2,896 12,560
Current maturity of long-term loans:

Directors (236) (2,469)
Executives (851) (397)
Other employees (343) (160)
Supplier - (8,504)
(1,430) (11,530)
1,466 1,030
10.1 Reconciliation of carrying amount of loans:
2018 2017
Other
Directors Executives Employees Supplier Total Total
-------------------------------------------- (Rupees in '000) ---------------------------------------------
Opening balance 2,569 978 509 8,504 12,560 37,548
Disbursements 1,937 2,016 459 - 4,412 1,391

Repayments /
adjustments (4,270) (890) (412) (8,504) (14,076) (26,379)
Closing balance 236 2,104 556 - 2,896 12,560
10.2 Represents interest free loan granted by the Company to Chief Financial Officer and Director Sales and Marketing during
last year, amounting to Rs. 3 million and Rs. 1.85 million respectively, given as per Company policy, repayable in 30 equal
monthly installments. As of the balance sheet date, the loan from Director Sales and Marketing has been recovered in full
as per the agreement.
10.3 These loans are granted to employees under the Company’s policies. Car and motor cycle loans are repayable over a
maximum period of five years and two and a half years respectively. Housing loans are repayable in maximum 50 equal
monthly installments and salary loans are repayable over a maximum period of three years. Car loans and housing loans
carry interest at the rate of 1% per annum. Housing loans granted to employees are secured against the letter of guarantee
and promissory notes and other loans are secured against their provident fund balances. These loans have been made in
compliance with the requirements of the Act.
10.4 Represents unsecured interest free loan granted by the Company on 1 July 2015 to a transporter repayable in 30 equal
monthly installments which has been adjusted / received in full during the year.
10.5 The maximum aggregate amount of loans due from Executives at the end of any month during the year was Rs. 2.14 million
(2017: Rs. 8.64 million).
10.6 The carrying value of these financial assets is neither past due nor impaired. Further interest free loans are not discounted
to present value, since the impact is considered to be immaterial in the overall context of these financial statements.

11. LONG-TERM DEPOSITS
Represent deposits placed with supplier of LPG and fuel as per the terms of the supply agreement.
Note 2018 2017

--------- (Rupees in '000) ---------
12. STORES AND SPARES
Stores 3,322 6,052

Spare parts 604 1,068
3,926 7,120
Provision for obsolete items (1,320) (1,320)
2,606 5,800
13. STOCK-IN-TRADE
Liquefied Petroleum Gas (LPG) 13.1 92,547 47,081

Low Pressure Regulators (LPR) 2,794 3,674
95,341 50,755
13.1 Includes stock amounting to Rs. 14.016 million (2017: Rs. 7.092 million) held with the following parties under hospitality
arrangements:
Note 2018 2017

--------- (Rupees in '000) ---------
Pakistan Oil Fields Limited 1,344 -

Ravi Sahiwal 903 -
Sadiq Gas Company 4,024 3,514
Sindh Gas (Private) Limited 342 -
Blessing Gas (Private) Limited 3,741 1,257
Tez Gas (Private) Limited - 2,016
Petroleum Gas (Private) Limited 709 305
Bashir Gas 2,953 -
14,016 7,092
13.2 As at June 30, 2018, stock of LPG held on behalf of third parties amounted to Rs. 2.414 million (2017: Rs. 2.968 million).
Note 2018 2017

--------- (Rupees in '000) ---------
14. TRADE DEBTS
Unsecured, considered good 14.1 17,654 5,001

14.1 Includes trade debts aggregating to Rs. 12.253 million (2017: Rs. 4.543 million) which were past due but not impaired.
These relate to various customers for which there is no or some history of default, however, no losses. Aging analysis of
these trade debts as at 30 June is as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Up to 1 month 8,489 1,484

1 to 6 months 1,095 596
More than 6 months 2,669 2,463
12,253 4,543
15. LOANS AND ADVANCES
Loans - secured, considered good

Current maturity of long-term loans 10 1,430 11,530
Advances - unsecured, considered good

Executives 15.1 1,296 1,713
Contractors and suppliers 117,988 61,966
119,284 63,679
120,714 75,209
15.1 The maximum aggregate amount due from executives at the end of any month was Rs. 1.546 million (2017: Rs. 1.136
million). The balance as at June 30, 2018 is due from the Chief Executive, which is receivable on demand.
Note 2018 2017

--------- (Rupees in '000) ---------
16. DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES
Deposits 9,785 647

Prepayments 1,816 5,319
Other receivables 16.1 33,470 41,321
45,071 47,287
16.1 Other receivables:
OPI Gas (Private) Limited 16.1.1 3,642 3,642

Burshane LPG (Pakistan) Limited - Provident Fund 766 6,906
Burshane LPG (Pakistan) Limited - Gratuity Fund 38.1.1 9,436 -
Burshane Petroleum (Private) Limited 16.1.2 9,000 9,000
Accrued interest - 113
Sales tax receivable - 11,336
Others 16.1.3 16,841 16,539
39,685 47,536
Provision for impairment (6,215) (6,215)

33,470 41,321
16.1.1 Represents receivable against reimbursement of expenses incurred for debranding activities, which has not been
acknowledged by the counter party, thus fully provided.
16.1.2 Represents amount receivable from Burshane Petroleum (Private) Limited (formerly Darian International (Private) Limited),
a related party, as consideration against use of the Company's name under an arrangement entered in prior year.

16.1.3 Includes receivable against hospitality arrangements of Rs. 5.04 million (2017: Rs. 5.05 million) and receivable against
cylinder deposits of Rs. 2.41 million (2017: Rs. 3.91 million).
16.1.4 The maximum aggregate amount outstanding from related parties at any time of the year by reference to month end
balances is as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Burshane LPG (Pakistan) Limited - Provident Fund 7,369 6,906

Burshane LPG (Pakistan) Limited - Gratuity Fund 9,436 255
25,805 16,161
16.1.5 The ageing analysis of receivable balances due from related parties is as follows:
Up to 1 month - -
1 to 6 months - -
More than 6 months - -
9,000 9,000
17. CASH AND BANK BALANCES
Cash in hand 169 30
Cash at banks:
saving accounts 17.1 59,440 51,595
current accounts 51,313 60,299
110,753 111,894
110,922 111,924
17.1 The profit rates on these saving accounts range from 3.75% to 4.25% per annum (2017: 1.95% to 3.85% per annum).
18. SHARE CAPITAL
18.1 Authorised capital
2018 2017 2018 2017

------ (Number of shares) ------ --------- (Rupees in '000) ---------
90,000,000 90,000,000 Ordinary shares of Rs.10 each 900,000 900,000
18.2 Issued, subscribed and paid-up capital
2018 2017 2018 2017

------ (Number of shares) ------ --------- (Rupees in '000) ---------
Ordinary shares of Rs.10 each issued as:

19,881,766 19,881,766 fully paid up in cash (note 18.3) 198,817 198,817
76,820 76,820 fully paid for consideration other than cash 768 768
2,530,304 2,530,304 fully paid bonus shares 25,303 25,303
22,488,890 22,488,890 224,888 224,888

18.3 As a result of the Scheme referred to in note 6, the authorised share capital of the Company enhanced to Rs.900 million
divided into 90 million ordinary shares of Rs.10 each. Further, pursuant to the effects of amalgamation, the paid-up share
capital of the Company reduced by 151,154 ordinary shares (note 6).
18.4 As more fully explained in note 6, the Company is in the process of completing legal formalities for cancellation of 151,154
shares and for issuance of new shares to the shareholders of HTPL (former Holding Company) in accordance with the
Scheme. Post completion of legal formalities, Mr. Asad Alam Khan Niazi, Chief Executive, will hold 12,326,629 ordinary
shares of the Company of Rs. 10 each.
18.5 As at June 30, 2018, Mr. Asad Alam Niazi, Chief Executive, held 55.18% (June 30, 2017: 55.18%) while institutions held
14.51% (June 30, 2017: 5.73%) and individuals and others held the balance of 11.13% (June 30, 2017: 8.13%). Voting
rights, board selection, right of first refusal and block voting are in proportion to their shareholding.
2018 2017
--------- (Rupees in '000) ---------
19. RESERVES
Capital reserve
Reserve on amalgamation 153,458 153,458
Revenue reserves
General reserve 90,000 90,000
Unappropriated profit 53,529 56,422
143,529 146,422
Actuarial loss on remeasurement of
retirement and other service benefits (24,219) (21,214)

equipment 274,765 274,765
547,533 553,431
Note 2018 2017

--------- (Rupees in '000) ---------
20. LONG-TERM LOAN
Secured
National Bank of Pakistan (NBP) 20.1 254,439 254,439
Current maturity of long-term loan (254,439) (254,439)
- -
20.1 As a result of the Scheme referred to in note 6, long-term finance obtained by HTPL has been transferred to the Company
at the time of amalgamation. The loan was obtained as a demand finance facility under the agreement dated April 08,
2013 from NBP and is repayable in 9 semi-annual installments of Rs. 44.444 million latest by April 01, 2018 with a grace
period of six months from the date of the drawdown. The loan carries mark-up at rate of 6 months KIBOR plus 2.5% to
6% per annum. This loan is secured by way of mortgage on leasehold land and charge on the Company’s present and
future current and fixed assets as well as personal guarantees of Directors of the Company. As at June 30, 2018, amount
due but not paid by the Company was Rs. 254.439 million (2017: 168.26 million). During the year, the Company has
requested NBP for restructuring of the loan and has received the new proposal with the extended terms which are still
under discussion and under review by the Bank's credit / risk committee.

Note 2018 2017

--------- (Rupees in '000) ---------
21. LIABILITIES UNDER FINANCE LEASE
Opening balance 6,942 9,944

Principal repayment during the year (3,002) (3,002)
Present value of minimum lease payments 3,940 6,942
Current maturity of liabilities under finance lease (3,002) (3,002)
Closing balance 938 3,940
21.1 Represents finance lease entered into with a leasing company for vehicles. Total lease rentals due under lease agreement
aggregated to Rs. 4.225 million (2017: Rs. 7.792 million) and are payable in equal monthly installments latest by March
2020. Taxes, charges, demands and levies, repair and maintenance are to be borne by the Company. Financing rates of
3 months KIBOR plus 3% (2017: 3 months KIBOR plus 3%) per annum have been used as discounting factor. The breakup
of liabilities under finance lease is as follows:
2018 2017
Minimum lease Present value of Minimum Present value
payments minimum lease lease of minimum
payments payments lease payments
---------------------------------(Rupees in '000)------------------------------
Not later than 1 year 3,263 3,002 3,567 3,002

After one year but not more than five year 962 938 4,225 3,940
Total minimum lease payments 4,225 3,940 7,792 6,942
Finance charges allocated to future periods (285) - (850) -
Present value of minimum lease payments 3,940 3,940 6,942 6,942
Current maturity (3,002) (3,002) (3,002) (3,002)
938 938 3,940 3,940
Note 2018 2017

--------- (Rupees in '000) ---------
22. DEFERRED TAXATION - net
Taxable temporary differences

Accelerated tax depreciation and amortisation 25,754 27,921
Deductible temporary differences

Liabilities under finance lease (1,143) (2,083)
Minimum turnover tax (20,478) (18,680)
Provisions (2,185) (2,260)
(23,806) (23,023)
1,948 4,898
23. CYLINDER AND REGULATOR DEPOSITS
Represents non-interest bearing deposits which are refundable on termination of distributorship agreements and / or return
of cylinders and ancillary equipment as per the Company policy. These deposits, kept in the Company's bank accounts,
are utilizable for the purpose of the business in terms of section 217 of the Act.

24. LOAN FROM A SUBSIDIARY COMPANY
Represents interest free and unsecured loan obtained from Burshane Auto Gas (Private) Limited, a wholly owned subsidiary
under an agreement dated 04 March 2016 and 07 November 2016. This loan is payable on demand. The loan was obtained
from the subsidiary to meet the Company's working capital requirements.
Note 2018 2017

--------- (Rupees in '000) ---------
25. TRADE AND OTHER PAYABLES
Creditors 92,174 56,177

Accrued liabilities 14,150 10,649
Burshane (LPG) Pakistan Limited:
Gratuity Fund 38.1.1 - 3,200
Pension Fund 38.1.1 33,085 6,089
Workers' Profits Participation Fund 25.1 5,888 2,718
Workers' Welfare Fund 1,327 710
Withholding tax payable 218 2,445
Sales tax payable 6,139 -
Advances from distributors / customers - unsecured 13,304 17,470
Zakat payable - 60
Others 13,089 4,496
179,374 104,014
25.1 Workers' Profit Participation Fund
Interest charged during the year 34 269 -

Allocation for the year 33 2,901 2,718
Amount paid during the year - (8,800)
Closing balance 5,888 2,718
26 UNCLAIMED DIVIDENDS
Includes an amount of Rs. 50.508 million (2017: Rs. 33.672 million) payable to the beneficial owners of HTPL. As explained
in note 6, HTPL was merged with the Company on February 20, 2015, however shares held by HTPL in the Company are
in the process of being cancelled and new shares shall be issued by the Company in the name of beneficial owners of
HTPL. The beneficial owners of HTPL have requested the Company to hold their dividend till such time that shares held
by HTPL are cancelled and new shares are issued by the Company in their name.
27. CONTINGENCIES AND COMMITMENTS
27.1 Contingencies
27.1.1 Claims not acknowledged as debt by the Company as at June 30, 2018 amounted to Rs. 2.06 million (2017:
Rs. 2.06 million).

27.1.2 During the year, the Deputy Commissioner Inland Revenue (DClR) had passed an Order in Original No.
DCIR/E&C/Unit-01&2/Z-IV/LTU/2018 of 2018 dated May 25, 2018 for the tax periods from July 2014 to March 2018
and raised sales tax demand of Rs. 65.571 million along with penalty of Rs. 67.538 million and default surcharge (to be
calculated at the time of final payment) for recovery of short payment of sales tax and claiming of alleged inadmissible
input tax under section 11(3) of the Sales Tax Act, 1990. Against the order, the Company then filed an appeal with
Commissioner Inland Revenue stating that the adjusting of input tax over 90% of the output tax has not caused any
loss to national exchequer and requested to grant relief from the penalties imposed by the DCIR. Subsequent to the
year end, the DCIR initiated the set aside proceeding and concluding the same by raising penalty of Rs. 13.30 million.
The Company then seeked stay order against DCIR's Order and was granted the stay against recovery of the impugned
demand for thirty days from August 20, 2018 or till the decision of main appeal pending before this Tribunal whichever
is earlier. As per the tax advisor of the Company, the Company has a strong case to defend before the appellate forum.
Therefore, no provision has been made, in this regard, in these unconsolidated financial statements.
Note 2018 2017

--------- (Rupees in '000) ---------
27.2 Commitments
27.2.1 Post-dated cheques 1,670 1,822
28. SALES - net
Liquefied petroleum gas (LPG) 3,473,726 2,167,620

Sales tax (548,793) (342,425)
2,924,933 1,825,195
Low pressure regulators (LPR) 1,351 1,929

Sales tax (208) (299)
1,143 1,630
2,926,076 1,826,825
29. COST OF SALES
Opening stock 47,081 32,348

Purchases 2,630,321 1,532,987
2,677,402 1,565,335
Closing stock 13 (92,547) (47,081)
2,584,855 1,518,254
Salaries, wages and other employee benefits 29.1 26,878 25,909

Cost of Low Pressure Regulators sold 880 1,514
Stores and spares consumed 29.2 4,230 3,794
Repairs and maintenance 1,823 3,477
Travelling, conveyance and vehicle maintenance 1,335 1,363
Rent, rates and electricity 3,070 3,636
Communication 338 1,183
Printing and stationery 549 217
Depreciation 7.1.2 6,104 4,773
Amortisation 8.6 59,941 49,233
Security 3,241 3,466
Sundry expenses 319 186
2,693,563 1,617,005
29.1 Include Rs. 0.754 million (2017: Rs. 0.703 million) in respect of retirement and other service benefits.

Note 2018 2017

--------- (Rupees in '000) ---------
29.2 Stores and spares consumed:

Purchases 1,036 5,670
6,836 9,594
Closing balance 12 (2,606) (5,800)
4,230 3,794
30. ADMINISTRATIVE EXPENSES

Communication 2,664 1,873
Printing and stationery 2,108 1,230
Legal and professional charges 3,712 6,658
Insurance 2,751 2,417
Advertisement and publicity 644 717
Depreciation 7.1.2 10,342 8,021
Donations 1,180 1,271
Sundry expenses 707 1,466
108,690 92,102
Note 2018 2017

--------- (Rupees in '000) ---------
31. DISTRIBUTION AND MARKETING EXPENSES

Repairs and maintenance 129 260
Travelling, conveyance and vehicle maintenance 955 1,521
Rent, rates and electricity 1,213 311
Communication 295 507
Hospitality charges 30,556 24,417
Freight and octroi 1,455 2,087
Commission - 7,914
Depreciation 7.1.2 13,773 12,712
Security 585 461
64,224 62,752

Note 2018 2017

--------- (Rupees in '000) ---------
32. OTHER INCOME
Income from financial assets

Profit on saving accounts 32.1 3,285 4,426
Income from non-financial assets

Rental income from storage tanks 1,124 1,344
Liability for cylinder deposits written back 32.2 21,585 21,235
Reversal of provision for impairment - 8,606
Recoveries against cylinder replacement 2,193 2,631
Hospitality income 6,304 10,640
Others 1,034 930
32,240 45,386
35,525 49,812
32.1 Represents profit on bank accounts under conventional banking relationship.
32.2 During the year, the Company carried out a detailed exercise to identify cylinder and regulator deposits pertaining
to cylinders issued for 10 years and above, which relates to inactive distributors / customers who are not in business
with the Company.
Note 2018 2017

--------- (Rupees in '000) ---------
33. OTHER EXPENSES

Auditors' remuneration 33.1 1,710 1,707
Directors' fees 925 825
Trade debts written off - 7,211
Others 4,882 5,814
11,567 18,985
33.1 Auditors' remuneration:
Statutory audit 850 850

Half yearly review 400 400
Review of code of corporate governance 150 150
Out of pocket expenses 310 307
1,710 1,707
34. FINANCE COSTS
Mark-up on long-term loan 25,086 30,857

Finance charges on liabilities under finance lease 565 879
Interest on Workers' Profits Participation Fund 25.1 269 -
Bank charges 4,056 3,426
29,976 35,162

Note 2018 2017

--------- (Rupees in '000) ---------
35. TAXATION
Current 35.1 36,979 18,680

Prior (44) (394)
Deferred (2,950) 3,312
33,985 21,598
35.1 Provision for current taxation has been made on the basis of Minimum Tax under Section 113 and Final Tax Regime under Section
169 of Income Tax Ordinance, 2001. Accordingly, tax expense reconciliation with the accounting profit is not presented.
35.2 The returns of income have been filed on due date and are treated as deemed assessment orders under section 120 of
the Ordinance. A comparison of last three years of income tax provision with tax assessed is presented below:
2017 2016 2015

--------- (Rupees in '000) ---------
Income tax provision for the year 18,680 20,324 54,212
Income tax as per tax assessment 18,636 20,234 63,426
2018 2017
--------- (Rupees in '000) ---------
36. EARNINGS PER SHARE – basic and diluted
Profit for the year (Rupees in '000) 19,596 29,033
Weighted average number of ordinary shares in issue (in '000) 22,489 22,489
Earnings per share - basic and diluted Rs. 0.87 Rs. 1.29
37. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
The aggregate amounts charged during the year for remuneration, including all benefits, to the Chief Executive, Directors
and Executives of the Company are as follows:
2018 2016
Chief Chief
Executive Directors Executives Total Executive Director Executives Total
-------------------------------------------------- (Rupees in '000) --------------------------------------------------
Managerial remuneration 25,668 13,952 15,670 55,290 22,410 12,459 12,707 47,576
Bonus 2,277 1,248 1,400 4,925 2,070 1,114 1,136 4,320
Company's contribution to
provident fund 1,091 333 582 2,006 952 365 872 2,189
gratuity fund 259 - 382 641 235 - 346 581
pension fund - - 186 186 - - 168 168
Travelling and conveyance - 135 66 201 - 194 321 515
Extra working day compensation - - 222 222 - - 222 222
Mobile allowance - 30 - 30 - 30 - 30
Medical allowance - 382 251 633 - 327 657 984
29,295 16,080 18,760 64,134 25,667 14,489 16,429 56,585
Number of persons
(including those who
worked part of the year) 1 2 8 11 1 2 7 10

37.1 Fee amounting to Rs. 0.650 million (2017: Rs. 0.55 million) was paid to five (2017: four) non-executive directors for attending
Board meetings during the year.
37.2 In addition, the Chief Executive, the Directors and certain Executives were also provided with free use of the Company's
maintained cars.
37.3 The comparative figures have been restated to reflect the changes in the definition of executives as per the Act.
38. RETIREMENT AND OTHER SERVICE BENEFITS
38.1 Pension fund and gratuity fund - valuation results
The latest actuarial valuations of the defined benefit plans were carried out as at June 30, 2018, using the “Projected Unit
Credit Method”. The details of defined benefit plans are as follows:
Pension Fund Gratuity Fund
Note 2018 2017 2018 2017
------------------------- (Rupees in '000) -------------------------
38.1.1 Reconciliation as at the reporting date
Fair value of plan assets 38.1.4 (75,828) (96,825) (25,236) (12,554)

Present value of defined benefit obligations 38.1.3 108,913 102,914 15,800 15,754
Net liability at end of the year 38.1.2 33,085 6,089 (9,436) 3,200
38.1.2 Movement in net liability recognised:
Opening balance 6,089 4,339 3,200 1,607

Charge for the year 37.1.5 1,747 1,766 3,712 188
Amounts paid to the Fund (7,468) (7,167) - -
Employee contribution to be paid to fund 245 184 - -
Remeasurements recognised in other
comprehensive income 38.1.7 9,968 6,967 (6,963) 3,405
Paid to Burshane LPG (Pakistan) Limited 22,504 - - -
Employer contribution to the fund - - (9,385) (2,000)
Closing balance 33,085 6,089 (9,436) 3,200
38.1.3 Movement in defined benefit obligations:
Opening balance 102,914 102,704 15,754 12,811

Current service cost 1,085 1,311 566 520
Interest cost 8,857 8,921 1,244 1,153
Past service cost (late joiners) - - 2,591 -
Benefits paid (9,014) (7,167) (3,857) -
Employees contribution 245 - - -
Remeasurements of obligations 38.1.7 4,826 (2,855) (498) 1,270
Closing balance 108,913 102,914 15,800 15,754
38.1.4 Movement in fair value of plan assets:
Opening balance 96,825 98,365 12,554 11,204

Expected return on plan assets 8,195 8,466 689 1,485
Benefits paid on behalf of the Fund 7,468 7,167 - -
Employees contributions - (184) 9,385 2,000
Benefits paid (9,014) (7,167) (3,857) -
Paid to Burshane LPG (Pakistan) Limited (22,504) - - -
Remeasurements of plan assets 38.1.7 (5,142) (9,822) 6,465 (2,135)
Closing balance 75,828 96,825 25,236 12,554

2018 2017 2018 2017
38.1.5 Charge for the year: ------------------------- (Rupees in '000) -------------------------
Current service cost 1,085 1,311 3,157 520

Net Interest cost 662 455 555 (332)
1,747 1,766 3,712 188
38.1.6 Actual return on plan assets 3,053 (1,356) 7,154 (650)
38.1.7 Remeasurement recognised in Other

Comprehensive Income:
Remeasurement of obligation
Experience (gain) / loss 4,826 (2,855) (498) 1,270
Remeasurement of plan assets
Return on plan assets, excluding amounts

included in interest expense / (income) - - (6,465) 2,135
Loss / (gain) from change in financial
assumptions 5,142 9,822 - -
5,142 9,822 (6,465) 2,135
9,968 6,967 (6,963) 3,405

2018 2017 2018 2017
------------------------- (Rupees in '000) -------------------------
38.1.8 Principal actuarial assumptions used in

the actuarial valuation:
Financial assumptions
Discount rate 9.00% 9.00% 9.00% 9.00%
Expected per annum rate of return on
plan assets 9.00% 9.00% 9.00% 9.00%
Expected per annum rate of increase in
salaries - long term 7.00% 7.00% 7.00% 7.00%
Expected per annum rate of increase
in pension - - - -
Demographic assumptions
Adjusted Adjusted Adjusted Adjusted
SLIC SLIC SLIC SLIC
Expected mortality rate 2001-2005 2001-2005 2001-2005 2001-2005
Expected withdrawal rate Low Low Low High

As at June 30, 2018
-------- (Rupees in '000) --------
38.1.9 Analysis of present value of defined benefit obligation:
Vested benefits 106,714 15,800

Non-vested benefits 2,199 -
108,913 15,800
38.1.10 Plan assets comprise of the following:

2018 2017 2018 2017
Rupees % Rupees % Rupees % Rupees %
in ‘000in in ‘000 in ‘000 in ‘000 in ‘000 in ‘000 in ‘000
Equity instruments 15,069 19.87 6,846 7.07 3,455 13.69 2,970 23.66
Debt instruments
Defence Savings
Certificates 17,232 22.73 16,112 16.64 14,360 56.90 13,426 106.95
Treasury Bills 36,468 48.09 - - 6,889 27.30 - -
Pakistan Investment
Bonds 6,238 8.23 60,596 62.58 - - - -
59,938 79.04 76,708 79 21,249 84.20 13,426 106.95
Cash and cash
equivalents 821 1.08 8,971 9.27 532 2.11 458 3.65
Others - - 4,300 4.44 - - (4,300) (34.25)
75,828 96,825 25,236 12,554
38.1.11 Historical information of staff retirement benefits:
2018 2017 2016 2015 2014 2013

------------------------------(Rupees in '000)------------------------------
Gratuity Fund
Present value of defined
benefit obligation 15,800 15,754 13,396 15,294 16,392 26,406
Fair value of plan assets (25,236) (12,554) (12,089) (10,028) (9,350) (15,854)
Deficit (9,436) 3,200 1,307 5,266 7,042 10,552
Pension Fund
(Deficit) / surplus 33,085 6,089 5,451 6,176 9,650 29,494
38.1.12 The amount of the defined benefit obligation after changes in the weighted principal assumptions is as follows:
As at June 30, 2018
-------- (Rupees in '000) --------
Discount rate + 1% 99,601 14,870
Discount rate - 1% 119,897 16,834
Long term salaries increase +1% 111,409 16,846
Long term salaries increase -1% 106,641 14,844
Withdrawal rates +10% 108,896 15,813
Withdrawal rates -10% 108,930 15,786
38.1.13 The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant.
In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating
the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value
of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period)
has been applied as when calculating the liability recognised within the statement of the financial position.

38.2 Provident Fund
The following information is based upon the latest un-audited financial statements of the provident fund as at the balance
sheet date:
2018 2017
Unaudited Audited
--------- (Rupees in '000) ---------
Size of the fund - total assets 32,962 32,478
Fair value of investments 32,917 32,208
Cost of investments 29,992 31,378
Percentage of investments 99.86% 95.85%
2018 2017
Rupees Rupees
38.2.1 The break-up of fair value of investments is as follows: in '000 % in '000 %
Bank deposits 3,130 9.51 1,348 4.47

Government securities 23,703 72.01 28,840 95.53
Mutual funds 6,084 18.48 - -
32,917 100.00 30,188 100.00
38.2.2 The investments out of the Provident Fund have been made in accordance with the provisions of Section 218 of
the Act and the rules formulated for the purpose.
39. TRANSACTIONS WITH RELATED PARTIES
39.1 The related parties include the former holding company, subsidiary company, staff retirement benefit / contribution plans,
associated companies / other related parties, Directors and other Key Management Personnel. All major transactions with
related parties are entered into at agreed terms duly approved by the Board of Directors of the Company.
39.2 Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these
financial statements, are as follows:
Transactions with related parties

2018 2017
Nature of relationship Nature of transactions (Rupees in '000)
Former Holding Company

H.A.K.S Trading (Private) Limited Dividend 16,836 16,836
Subsidiary
Burshane Auto Gas (Private) Limited Loan obtained from subsidiary - 10,000
Expenses incurred on
behalf of the company 253 -
Burshane Trading (Private) Limited Expenses incurred on

behalf of the company 190 -
Staff Retirement Benefit / Contribution Plans
Burshane LPG (Pakistan) Limited:

Pension Fund Benefits paid 7,468 7,167
Provident Fund Company's contribution for the year 2,913 2,523
Associated Companies / Other Related Parties
Norinco International Thatta Power Advances given for expenses - 517

Advances recovered - 562
ALSAA & AAK Commodities (Private) Limited Advances given for expenses 326 21
Advances recovered 326 21

39. TRANSACTIONS WITH RELATED PARTIES (continued)
Balances with related parties

2018 2017
Nature of relationship Nature of balances ---- (Rupees in '000) ----

H.A.K.S. Trading (Private) Limited Dividend payable 50,508 33,672
Subsidiary
Burshane Auto Gas (Private) Limited Investment in subsidiary 50,000 50,000
Loan payable to subsidiary 50,000 50,000

Gratuity Fund Receivable / payable to Staff Gratuity Fund 9,422 3,200
Pension Fund Payable to Staff Pension Fund 33,085 6,089
Provident Fund Receivable from Staff Provident Fund 766 6,906
Burshane Petroleum (Private) Limited Receivable against use of name

(Formerly Darian International (Private) Limited) "Burshane" 9,000 9,000
Norinco International Thatta Power

(Private) Limited Receivable against expenses - 81
ALSAA & AAK Commodities (Private) Limited Receivable against expenses 13 13
39.3. Following are the related parties with whom the Company had entered into transactions or has arrangement/ agreement
in place:
Name Basis of relationship % of shareholding in the Company
Burshane Auto Gas (Private) Limited Subsidiary Company Nil

Burshane Trading (Private) Limited Subsidiary Company Nil
ALSAA & AAK Commodities (Private) Limited Common directorship Nil
Norinco International Thatta
Power (Private) Limited Common directorship Nil
Burshane Petroleum (Private) Limited Common directorship Nil

Gratuity Fund Staff Retirement Benefit Plan Nil
Pension Fund Staff Retirement Contribution Plan Nil
Provident Fund Staff Retirement Benefit Plan Nil

Note 2018 2017

--------- (Rupees in '000) ---------
40. CASH GENERATED FROM OPERATIONS

Adjustments
Depreciation 7.1.2 30,219 25,506
Reversal of provision of other receivable - (8,606)
Provision for retirement and other service benefits 8,372 4,923
Finance costs 34 29,976 35,162
Trade debts written off 33 - 7,211
Profit on saving accounts 32 (3,285) (4,426)
Liability for cylinder and regulator deposits written back 32 (21,585) (21,235)
Others - (205)
Working capital changes 40.1 (42,743) 55,787
114,476 193,981
40.1 Working capital changes
(Increase) / decrease in current assets:

Stores and spares - net 3,194 (1,876)
Stock-in-trade (44,586) (13,219)
Trade debts (12,653) 6,399
Loans and advances (45,505) 94,455
Deposits, prepayments and other receivables 5,512 (24,888)
(94,038) 60,871
Increase / (decrease) in current liabilities:
Trade and other payables 51,295 (5,084)
(42,743) 55,787
41. FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY CATEGORY
41.1 Financial assets as per balance sheet - at amortised cost
Long-term loans 10 1,466 1,030

Long-term deposits 100,839 69,986
Trade debts 14 17,654 5,001
Loans and advances 15 120,714 75,209
Deposits and other receivables 16 43,255 41,968
Cash and bank balances 17 110,922 111,924
394,850 305,118
41.2 Financial liabilities as per balance sheet - at amortised cost
Long-term loan including current maturity of long-term loan 20 254,439 254,439

Liabilities under finance lease 21 3,940 6,942
Cylinder and regulator deposits 374,145 373,599
Trade and other payables 25 186,393 125,065
Loan from a subsidiary company 50,000 50,000
Accrued mark-up on long-term loan 60,295 35,209
929,212 845,254

42. FINANCIAL RISK MANAGEMENT
42.1 Financial risk factors
The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and
other price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on having cost
effective funding as well as to manage financial risk to minimize earnings volatility and provide maximum return to share
holders. Risk management is carried out by the Company’s finance and treasury department under policies approved by
the Board of Directors.
(a) Market risk
(i) Currency risk
Currency 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. The Company's exposure to the risk of changes in foreign exchange
rates relates primarily to the Company's operating activities. It mainly arises when receivables and payables
exist due to transactions in foreign currency.
As majority of the Company's financial assets and liabilities are denominated in Pakistani Rupees, therefore,
the Company, at present, is not materially exposed to foreign currency risk.
(ii) Interest rate risk
Interest rate risk is 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 is primarily exposed to interest rate risk arising from long-term
loan from bank and bank deposits. Borrowing at variable rate exposes the Company to cash flow interest rate
risk. The Company's manages its interest rate risk by placing its excess funds in saving accounts in banks.
The management of the Company estimates that 1% increase in the market interest rate, with all other factors
remaining constant, would decrease the Company's profit before tax by Rs. 2.544 (2017: Rs. 2.896 million)
and a 1% decrease would result in increase in the Company's profit before tax by the same amount. However,
in practice, the actual result may differ from the sensitivity analysis.
(iii) Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices (other than those arising from currency risk or interest rate risk), whether those changes
are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial
instruments traded in the market. The Company is not materially exposed to other price risk as at June 30, 2018.
(b) Credit risk
Credit risk represents the risk of financial loss being caused if counter party fails to discharge an obligation. The
Company attempts to control credit risk by monitoring credit exposures, limiting transactions with specific counter
parties and continually assessing the creditworthiness of counter parties.
Credit risk of the Company arises from deposits with banks and financial institutions, trade debts, loans, deposits
and other receivables. The credit risk on liquid funds is limited because the counter parties are banks with reasonably
high credit ratings. The maximum exposure to credit risk is presented in the below table.
The Company monitors the credit quality of its financial assets with reference to historical performance of such
assets and available external credit ratings. The carrying values of financial assets which are neither past due nor
impaired are as under:
2018 2017
--------- (Rupees in '000) ---------
Long-term loans 1,466 1,030
Trade debts 17,654 458
Loans 1,430 11,530
Deposits and other receivables 43,255 41,968
Bank balances 110,753 111,894
275,397 236,866

The credit quality of receivables can be assessed with reference to their historical performance with no or some
defaults in recent history. The credit quality of Company’s bank balances can be assessed with reference to external
credit ratings as follows:
Rating agency Rating

Name Short term Long term
2018 2017 2018 2017
Bank Alfalah Limited PACRA A1+ A1+ AA+ AA+

Habib Bank Limited JCR-VIS A1+ A1+ AAA AAA
MCB Bank Limited PACRA A1+ A1+ AAA AAA
National Bank of Pakistan PACRA A1+ A1+ AAA AAA
Standard Chartered Bank
(Pakistan) Limited PACRA A1+ A1+ AAA AAA
Faysal Bank Limited PACRA A1+ A1+ AA AA
Meezan Bank Limited JCR-VIS A1+ A1+ AA+ AA
United Bank Limited JCR-VIS A1+ A1+ AAA AAA
Sindh Bank Limited JCR-VIS A1+ A1+ AAA AAA
Summit Bank Limited JCR-VIS A1 A1 A- AAA
(c) Liquidity risk
Liquidity risk represents the risk that the Company will encounter difficulties in meeting obligations associated with
financial liabilities.
The Company's liquidity risk management implies maintaining sufficient cash and also involves projecting cash flows
and considering the level of liquid assets necessary to meet these. As of the reporting date, the Company's current
liabilities exceed its current assets by Rs. 198.141 million (2017:Rs. 181.3 million), but the Company based on its future
plans is confident that it will have sufficient cash flows to meet its financial obligations in the foreseeable future.
The table below analyses the Company’s financial liabilities into relevant maturity groupings based on the remaining
period at the reporting date to the contractual maturity dates.
2018 2017
Maturity Maturity Maturity Maturity
upto one after upto one after
year one year Total year one year Total
----------------------------------- (Rupees in '000) -----------------------------------
Financial liabilities
Long-term loan including current
maturity of long term loan 254,439 - 254,439 254,439 - 254,439
Liabilities under finance lease 3,002 938 3,940 3,002 3,940 6,942
Cylinder and regulator deposits - 374,145 374,145 - 373,599 373,599
Trade and other payables 186,393 - 186,393 125,065 - 125,065
Accrued mark-up on
long-term loan 60,295 - 60,295 35,209 - 35,209
Loan from a subsidiary company 50,000 - 50,000 50,000 - 50,000
554,129 375,083 929,212 467,715 377,539 845,254

42.2 Fair value
Fair value is the amount for which an asset could be exchanged, or a liability can be settled, between knowledgeable willing
parties in an arm's length transaction. As of the reporting date, Company's all assets and liabilities are carried at amortised cost
except for those mentioned below:
The Company's freehold land and leasehold land are stated at revalued amounts, being the fair value at the date of
revaluation, less any subsequent impairment losses, if any. The fair value measurement of the Company's free hold land
and lease hold land as at June 15, 2015 was carried out by M/s. Consultancy Support and Services and Harvestor Services
(Private) Limited, respectively (note 7.1.4).
The valuation techniques and inputs used to develop fair value measurement of aforementioned assets are as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities;
Level 2: Those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices); and
Level 3: Those whose inputs for the asset or liability that are not based on observable market date (unobservable inputs)
There were no transfers between level 1, 2 or 3 of the fair value hierarchy during the year.
Details of fair value hierarchy and information relating to fair value of the Company's freehold land and leasehold land are
as follows:
Fair value measurement using
Quoted price
in active Significant Significant
markets (level 1) observable unobservable
Total inputs (level 2) inputs (level 3)
------------------------ (Rupees in '000) ------------------------
June 30, 2018:
Assets measured at fair value
Property, plant and equipment

Freehold land 15,000 - 15,000 -
Leasehold land 509,138 - 509,138 -
524,138 - 524,138 -
June 30, 2017:

Freehold land 15,000 - 15,000 -
Leasehold land 509,138 - 509,138 -
524,138 - 524,138 -

42.3 Capital risk management
The Company finances its operations through equity, borrowings and management of working capital with a view of maintaining
an appropriate mix between various sources of finance to minimize risk. The primary objective of the Company’s capital
management is to ensure that it maintains healthy capital ratios in order to support its business sustain future development of
the business and maximize shareholders value. The Company monitors capital using a debt equity ratio as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Long-term loan 20 - -
Loan from a subsidiary company 50,000 50,000
Current maturity of long-term loan 20 254,439 254,439
Unclaimed dividends 53,676 36,273
Accrued mark up on long-term loan 60,295 35,209
Total debt 975,869 860,476
Cash and bank balances 17 (110,922) (111,924)
Net debt 864,947 748,552
Share capital 18 224,888 224,888

Revenue reserves 19 143,529 278,666
Capital reserves 19 153,458 153,458
retirement and other service benefits 19 (24,219) (21,214)
Revaluation surplus on property, plant and equipment 19 274,765 274,765
Total equity 772,421 910,563
Capital 1,637,368 1,659,115
Gearing ratio 52.83% 45.12%
43. NON-ADJUSTING EVENT AFTER THE REPORTING DATE
43.1 Subsequent to the year end, the Board of Directors of the Company in their meeting held on September 25, 2018 have
proposed a final cash dividend of Re. 0.75 (2017: Re. 1) per share.
43.2 Under section 5A of the Income Tax Ordinance, 2001 (the Ordinance), every public company is obliged to pay tax at the
rate 5% on its accounting profit before tax if it derives profit for a tax year but, does not distribute atleast 20% of its after
tax profits within six months of the end of the tax year, through cash.
Based on the above fact, the Board of Directors of the Company has approved / paid final cash dividend amounting to
Rs. 16.687 million for the financial and tax year 2018 which exceeds the prescribed minimum dividend requirement as
referred above. Accordingly, no further tax provision has been recorded under section 5A of the Ordinance.
44. CORRESPONDING FIGURES
Certain corresponding figures have been reclassified for better presentation, however, there are no material reclassifications
to report.

2018 2017
(Quantity in metric ton)
--------- (Rupees in '000) ---------
45. CAPACITY
Installed annual filling capacity 37,500 37,500
Actual utilization 42,502 33,548
45.1 This does not includes storage and filling capacity of hospitality locations.
46. NUMBER OF EMPLOYEES As at and for As at and for

the year the year
ended June ended June
30, 2018 30, 2017
Total number of employees
As at the reporting date 55 50
Average number of employees during the year 52 50
Total number of plant site employees
Average number of plant site employees during the year 21 21
47. GENERAL
47.1 These unconsolidated financial statements have been rounded to the nearest thousand rupee, unless otherwise stated.
48. DATE OF AUTHORISATION FOR ISSUE
These financial statements were authorised for issue on September 25, 2018 by the Board of Directors of the Company.

Consolidated Financial
Statements

Consolidated Statement of Financial Position
As at June 30, 2018
Note June 30, June 30, June 30,
2018 2017 2016
(Restated) (Restated)
-------------------- (Rupees in '000) -------------------
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 7 742,636 758,226 750,768

Intangible assets 8 453,002 462,793 389,026
Long-term loans 9 1,466 1,030 11,750
Long-term deposits 10 100,839 69,986 76,874
1,297,943 1,292,035 1,228,418
CURRENT ASSETS
Stores and spares 11 2,606 5,800 3,924

Stock-in-trade 12 95,341 50,755 37,536
Trade debts 13 17,654 5,001 11,400
Loans and advances 14 120,714 75,209 169,664
Deposits, prepayments and other receivables 15 45,076 47,292 13,843
Taxation - net 9,311 5,012 2,030
Cash and bank balances 16 112,179 113,156 103,872
402,881 302,225 342,269
1,700,824 1,594,260 1,570,687
EQUITY AND LIABILITIES
EQUITY
Share capital 17 224,888 224,888 224,888

Capital reserve 18 153,458 153,458 153,458
Revenue reserves 18 143,965 146,739 140,130
retirement and other service benefits 18 (24,219) (21,214) (10,842)
equipment 18 274,765 274,765 274,765
547,969 553,748 557,511
772,857 778,636 782,399
NON-CURRENT LIABILITIES
Long-term loan 19 - - 86,161

Liabilities under finance lease 20 938 3,940 6,942
Deferred taxation - net 21 1,948 4,898 1,586
Cylinder and regulator deposits 22 374,145 373,599 369,057
377,031 382,437 463,746
CURRENT LIABILITIES
Current maturity of long-term loan 19 254,439 254,439 168,278

Current maturity of liabilities under finance lease 20 3,002 3,002 3,002
Loan from directors - - 18,818
Trade and other payables 23 179,524 104,264 111,027
Unclaimed dividends 24 53,676 36,273 19,065
Accrued mark-up on long-term loan 60,295 35,209 4,352
550,936 433,187 324,542
CONTINGENCIES AND COMMITMENTS 25
1,700,824 1,594,260 1,570,687
The annexed notes 1 to 46 form an integral part of these consolidated financial statements.

Consolidated Statement of Profit or Loss
Note 2018 2017

--------- (Rupees in '000) ---------
Sales - net 26 2,926,076 1,826,825
Cost of sales 27 (2,693,563) (1,617,005)
Gross profit 232,513 209,820
Administrative expenses 28 (108,437) (92,114)

Distribution and marketing expenses 29 (64,224) (62,752)
Other income 30 35,590 50,074
Other expenses 31 (11,717) (19,135)
Operating profit 83,725 85,893
Finance costs 32 (29,976) (35,167)
Taxation 33 (34,035) (21,628)
Earnings per share - basic and diluted 34 Rs. 0.88 Rs. 1.29

Consolidated Statement of Other Comprehensive Income
2018 2017
--------- (Rupees in '000) ---------
Other comprehensive income for the year
Items that will not be reclassified subsequently to profit or loss:
Acturial loss on remeasurement of retirement and other service benefits (3,005) (10,372)
Total comprehensive income for the year 16,710 18,726

Consolidated Statement of Cash Flows
Note 2018 2017

--------- (Rupees in '000) ---------
CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations 38 114,479 193,969
Retirement and other service benefits 9,123 (24,030)
Finance costs paid (4,621) (4,309)
Taxes paid (41,283) (21,299)
Long-term loans - net (436) 10,720
Long-term deposits - net (30,853) 6,888
Cylinder and regulator deposits - net 22,131 25,777
Net cash generated from operating activities 68,540 187,716
CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of operating fixed assets 7.1 (14,629) (33,064)
Purchase of intangible assets 8 (50,150) (123,000)
Interest received 3,350 4,733
Net cash used in investing activities (61,429) (151,331)
CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid (5,086) (5,281)
Repayment of loan from directors - (18,818)
Repayment of liabilities under finance lease (3,002) (3,002)
Net cash used in financing activities (8,088) (27,101)
Net (decrease) / increase in cash and cash equivalents (977) 9,284
Cash and cash equivalents at beginning of the year 113,156 103,872
Cash and cash equivalents at end of the year 16 112,179 113,156

Consolidated Statement of Changes In Equity
Reserves
Capital Revenue
Actuarial loss on Revaluation

Issued, remeasurement surplus of
subscribed Reserve on Unappro- of retirement and property,
& paid-up amalga- General priated other service plant and Total Total
Capital mation reserve profit benefits equipment reserves equity
------------------------------------------------------- (Rupees in '000) -------------------------------------------------------
Balance as at July 01, 2016 224,888 153,458 90,000 50,130 (10,842) - 282,746 507,634
Adjustment due to change in

accounting policy as stated in note 3.1 - - - - - 274,765 274,765 274,765
Balance as at July 01, 2016

- restated 224,888 153,458 90,000 50,130 (10,842) 274,765 557,511 782,399
Other comprehensive

for the year - - - 29,098 (10,372) - 18,726 18,726
Balance as at June 30, 2017

- restated 224,888 153,458 90,000 56,739 (21,214) 274,765 553,748 778,636
Other comprehensive

for the year - - - 19,715 (3,005) - 16,710 16,710
Balance as at June 30, 2018 224,888 153,458 90,000 53,965 (24,219) 274,765 547,969 772,857

Notes to the Consolidated Financial Statements
1. LEGAL STATUS AND OPERATIONS OF THE GROUP
The Group consists of Burshane LPG (Pakistan) Limited (note 1.1) and its subsidiary companies i.e. Burhsane Auto Gas
(Private) Limited (note 1.2.1) and Burshane Trading (Private) Limited (note 1.2.2).
1.1 The Holding Company
Burshane LPG (Pakistan) Limited (the Holding Company) is a limited liability company incorporated in Pakistan
and is listed on the Pakistan Stock Exchange. The registered office of the Company is situated at Suite 101, 1st
Floor, Horizon Vista, Commercial Plot No. 10, Block - 4, Scheme No. 5, Clifton, Karachi.
The principal activity of the Holding Company is storing and marketing of Liquefied Petroleum Gas (LPG) throughout
Pakistan and trading of Low Pressure Regulators (LPR).
The Company was a subsidiary of H.A.K.S. Trading (Private) Limited (HTPL). However, consequent to the approval
of the scheme of arrangement for amalgamation of HTPL and the Company by the High Court of Sindh (the Court),
HTPL was amalgamated with the Company on February 20, 2015, as more fully explained in note 6.
1.2 Subsidiary Companies
1.2.1 Burshane Auto Gas (Private) Limited (the Subsidiary Company) was incorporated on September 26, 2014
under the repealed Companies Ordinance, 1984. The Subsidiary Company is mainly engaged in opening
and managing petrol pumps and Liquefied Petroleum Gas (LPG) outlets. The registered office of the Subsidiary
Company is situated at Suit No.101, 1st Floor, Horizon Vista, Commercial - 10, Block 04, Clifton, Karachi.
The Company has not commenced its operations and is in the start-up phase. The Holding Company holds
99.99% voting rights and is committed to provide financial support to the Company as and when required.
1.2.2 Burshane Trading (Private) Limited (BTPL) was incorporated on October 13, 2014 under the repealed
Companies Ordinance, 1984, for setting up trading operations particulary in coal and other energy related
products. The registered office of BTPL is situated at Suite 101, 1st Floor, Horizon Vista, Plot No. Commercial
Block-4, Scheme No. 5, Clifton, Karachi. No share capital has been issued and transactions undertaken by
BTPL during the year.
1.3 Geographical location and addresses of major business units of the Group are as under:
Karachi: Purpose:
Plot No. 70, Sector 7-D,Korangi Filling Plant-1, LPG Storage & Filling Plant
Adjacent to Pakistan Refinery Limited, Korangi Creek
Faisalabad: Purpose:
LPG Storage & Filling Plant, Near Railway Station, Abbaspur LPG Storage & Filling Plant
2. SUMMARY OF SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING THE GROUP'S FINANCIAL POSITION AND
PERFORMANCE
- The highest bid of signature bonus was placed by the Holding Company and secured a five year supply and
purchase contract from Oil & Gas Development Company Limited (OGDCL) as mentioned in note 8.4
- Adoption of Companies Act, 2017 mentioned in note 3.1
3. BASIS OF PREPARATION
3.1 Statement of compliance
These consolidated financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for financial reporting. The accounting and reporting standards as applicable
in Pakistan comprise of International Financial Reporting Standards (IFRS), issued by International Accounting
Standard Board (IASB) as notified directives issued under the Act differ from the IFRS standards, the provisions
of and directives issued under the Act have been followed.

The Act has also brought certain changes with regard to the preparation and presentation of these consolidated
financial statements. These changes, amongst others, included change in respect of presentation and measurement
of revaluation surplus on property, plant and equipment as fully explained in note 4.2 of these consolidated financial
statements, change in nomenclature of primary statements. Further, the disclosure requirements contained in the
fourth schedule of the Act have been revised, resulting in elimination of duplicative disclosure with the IFRS
disclosure requirements and incorporation of additional amended disclosures including, but not limited to, particulars
of immovable assets of the Holding Company (refer note 7.1.6), management assessment of sufficiency of tax
provision in the consolidated financial statements (refer note 33.2), change in threshold for identification of
executives (refer note 9 & 35) and additional disclosure requirements for related parties (refer note 37.3).
3.2 Basis of measurement
These consolidated financial statements have been prepared under the historical cost convention, unless otherwise
specifically stated.
3.3 Basis of consolidation
These consolidated financial statements comprise the financial statements of the Holding Company and the
subsidiary company as at the reporting date, here-in-after referred to as 'the Group'.
3.3.1 Subsidiaries
Subsidiaries are those entities over which the Group has control. Control is achieved when the Group is
exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee. Specifically, the Group controls an investee if, and only
if, the Group has:
- power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities
of the investee)
- exposure, or rights, to variable returns from its involvement with the investee.
- the ability to use its power over the investee to affect its returns.
The holding company meets all the above conditions and hence has power over the subsidiary.
Subsidiaries are consolidated from the date on which the Group obtains control, and continue to be
consolidated until the date when such control ceases. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed off during the year are included in the profit and loss account from the date the Group
gains control until the date the Group ceases to control the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling
interest. The excess of the cost of acquisition is recorded as goodwill. If the cost of acquisition is less than
fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the consolidated
statement of profit or loss.
After initial recognition, goodwill is measured at cost less accumulated impairment losses, if any. For the
purposes of impairment testing, goodwill acquired in a business combination is, on the acquisition date,
allocated to each of the Group’s cash generating units that are expected to benefit from the combination.
Goodwill is tested annually or whenever there is an indication of impairment exists. Impairment loss in respect
of goodwill is recognised in consolidated statement of profit or loss and is not reversed in future periods.
The assets, liabilities, income and expenses of subsidiary companies are consolidated on a line by line basis
and the carrying value of investments held by the Holding Company is eliminated against the subsidiaries’
shareholders’ equity in the consolidated financial statements.
All intra-group transactions, balances, income, expenses and unrealised gains and losses on transactions
between Group companies are eliminated in full.
Burshane Auto Gas (Private) Limited (the Subsidiary Company) has same reporting period as that of the
Holding Company. The accounting policies of the subsidiary are consistent with the accounting policies of
the Group.

3.4 New Standards, Interpretations and Amendments
The Group has adopted the following amendments to the accounting standards which became effective for the current year:
IFRS 7 – Financial Instruments: Disclosures - Servicing contracts

lAS 12 Income Taxes — Recognition of Deferred Tax Assets for Unrealized losses (Amendments)
3.5 Standards, interpretations and amendments to approved accounting standards that are not yet effective
The following amendments and interpretations with respect to the approved accounting standards as applicable
in Pakistan would be effective from the dates mentioned below against the respective standard or interpretation:
Effective date
(annual periods
Standards or interpretations beginning on or after)
IFRS 2 – Share Based Payments – Classification and Measurement

of Share Based Payments Transactions (Amendments) January 01, 2018
IFRS 4 – Insurance Contracts – Applying IFRS 9 Financial Instruments with
IFRS 4 (Amendments) January 01, 2018
IFRS 9 — Financial Instruments July 01, 2018
IFRS 9 — Prepayment Features with Negative Compensation — (Amendments) January 01, 2018
IFRS 15 – Revenue from Contracts with Customers July 01, 2018
IFRS 16 – Leases January 01, 2019
lAS 19 - Plan Amendment, Curtailment or Settlement (Amendments) January 01, 2019
IAS 28 - Long-term Interests in Associates and Joint Ventures – (Amendments) January 01, 2019
IFRIC 22 – Foreign Currency Transactions and Advance Consideration January 01, 2018
IFRIC 23 – Uncertainty over Income Tax Treatments January 01, 2019
The above standards and amendments are not expected to have any material impact on the Group's consolidated
financial statements in the period of initial application except for IFRS 15 - Revenue from Contracts with Customers.
The Group is currently evaluating the impact of this Standard on the consolidated financial statements.
In addition to the above standards and amendments, improvements to various accounting standards have also
been issued by the IASB in December 2016 and December 2017. Such improvements are generally effective for
accounting periods beginning on or after January 01, 2018 and January 01, 2019 respectively. The Group expects
that such improvements to the standards will not have any material impact on the Group's consolidated financial
statements in the period of initial application.
The IASB has also issued the revised Conceptual Framework for Financial Reporting (the Conceptual Framework)
in March 2018 which is effective for annual periods beginning on or after January 01, 2020 for preparers of financial
statements who develop accounting policies based on the Conceptual Framework. The revised Conceptual
Framework is not a standard, and none of the concepts override those in any standard or any requirements in a
standard. The purpose of the Conceptual Framework is to assist IASB in developing standards, to help preparers
develop consistent accounting policies if there is no applicable standard in place and to assist all parties to
understand and interpret the standards.
Further, following new standards have been issued by IASB which are yet to be notified by the SECP for the
purpose of applicability in Pakistan. The Group is currently evaluating the impact on the consolidated financial
statements.
IASB effective
date (annual periods
Standards beginning on or after)
IFRS 14 – Regulatory Deferral Accounts January 01, 2016

IFRS 17 – Insurance Contracts January 01, 2021
4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.
These policies have been consistently applied to all years presented, unless otherwise stated.

4.1.1 Operating fixed assets
Owned
These are stated at cost less accumulated depreciation and accumulated impairment losses if any, except
for freehold land and leasehold land, which are stated at revalued amount.
Depreciation is charged to consolidated statement of profit or loss using straight-line method whereby the
cost of an asset is allocated over its estimated useful life at the rates given in note 7.1. Depreciation on
additions is charged from the month in which the asset is available for use, while no depreciation is charged
in the month in which the asset is disposed off. The residual values, useful lives and depreciation method
are reviewed and adjusted, if appropriate, at each reporting date.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. Maintenance
and normal repairs are charged to consolidated statement of profit or loss as and when incurred.
The gain or loss on disposal or retirement of an asset represented by the difference between the sale
proceeds and the carrying amount of the asset is recognised as an income or expense in the consolidated
statement of profit or loss in the period of disposal.
Leased
Leases of property, plant and equipment, where the Group has substantially all the risks and rewards of
ownership, are classified as finance lease. Upon initial recognition, the leased asset is measured at an amount
equal to the lower of its fair value and present value of minimum lease payments. Outstanding obligations
under the lease less finance cost allocated to future periods are shown as a liability.
Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably
certain that the Group will obtain ownership by the end of the lease term.
Finance cost under lease agreements are allocated to the period of the lease term so as to produce a
constant periodic rate of finance cost on the remaining balance of principal liability for each period.
4.1.2 Capital work-in-progress
Capital work-in-progress is stated at cost less accumulated impairment losses, if any. It consists of expenditure
incurred in respect of tangible assets in the course of their construction and installation, including financial
charges on borrowings, if any, for financing the project until such projects are completed or become
operational. Transfers are made to relevant asset category as and when assets are available for use.
4.2 Revaluation surplus on property, plant and equipment
As disclosed in note 3.1 to the consolidated financial statements, the Companies Act, 2017 (the Act) became
applicable for the first time for the preparation of the Group's annual consolidated financial statements for the
year ended June 30, 2018. Accordingly, the Group has also changed its accounting policy relating to presentation
and measurement of surplus on revaluation of property plant and equipment. The above change in the accounting
policy has been applied retrospectively and comparative information have been restated in accordance with the
requirement of International Accounting Standard (lAS) — 16 "Property, Plant and Equipment" and lAS 8 "Accounting
Policies, Changes in Accounting Estimates and Errors". Due to the above change in accounting policy, the Group
has presented its statement of financial position as at the beginning of the earliest comparative period i.e., July
01, 2016, and related notes in accordance with requirement of lAS 1 — Presentation of Financial Statements
(Revised) (lAS 1). Had the accounting policy not been changed, the revaluation surplus on property, plant and
equipment would have been shown as a separate line item (below equity in the statement of financial position)
amounting to PKR 274.765 million for the year ended June 30, 2017 and 2016 respectively.
An intangible asset is recognised if it is probable that the future economic benefits attributable to the asset will
flow to the Group and that the cost of such asset can also be measured reliably.

i) Software
Costs that are directly associated with identifiable computer software and have probable economic benefits
exceeding one year, are recognised as an intangible asset. Costs include the purchase cost of software,
implementation cost and related overhead cost. Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated
amortisation and any accumulated impairment losses thereon.
Expenditure which enhances or extends the performance of computer software beyond its original specification
and useful life is recognised as a capital improvement and added to the original cost of the software.
ii) Goodwill
This represents excess of cost of acquisition over fair value of the identifiable assets and liabilities of the
Holding Company at the time of acquisition by HTPL.
Goodwill on acquisition is not amortised but tested annually for impairment and carried at cost less
accumulated impairment losses, if any.
iii) Trademarks
This represents separately acquired trade marks with indefinite useful life. These are stated at cost less
accumulated impairment losses, if any. Carrying amounts of trademarks are subject to impairment review
at each reporting date.
Intangible assets, where applicable, are amortised from the month when such assets are available for use
on straight line method whereby the cost of an intangible asset is allocated over its estimated useful life, at
the rates given in note 8.
The useful lives of intangible assets are reviewed at each reporting date to determine whether events and
circumstances continue to support an indefinite useful life assessment for the asset.
4.4 Impairment of non-financial assets
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any
indication of impairment loss. If any such indication exists, the asset’s recoverable amount is estimated to determine
the extent of impairment loss, if any. An impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs
to sell and value in use. Impairment losses are charged to consolidated statement of profit or loss.
4.5 Financial instruments
4.5.1 Financial assets
The Group classifies its financial assets at initial recognition in the following categories depending on the
nature and purpose for which the financial assets were acquired:
(a) At fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading and financial
assets designated upon initial recognition as at fair value through profit or loss. A financial asset is
classified as held for trading if acquired principally for the purpose of selling in the short term. Assets
in this category are classified as current assets.
(b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They are included in current assets, except those having maturities
greater than twelve months after the reporting date, which are classified as non-current assets. Loans
and receivables comprise trade debts, loans, advances, deposits, interest accrued, other receivables
and cash and bank balances.

(c) Available-for-sale
Available-for-sale financial assets are non-derivatives that are either designated investments in this
category or not classified in any of the other categories. They are included in non-current assets unless
these mature or the management intends to dispose off the investments within twelve months from
the reporting date.
(d) Held-to-maturity
Financial assets with fixed or determinable payments and fixed maturity, where management has
positive intention and ability to hold till maturity are classified as held-to-maturity.
All financial assets are recognised at the time when the Group becomes a party to the contractual
provisions of the instrument. Regular way purchases and sales of investments are recognised and
derecognised on trade date (the date on which the Group commits to purchase or sell the asset).
Financial assets are initially recognised at fair value plus transaction costs except for financial assets
at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially
recognised at fair value and transaction costs are expensed in the consolidated statement of profit or
loss. Financial assets are derecognised when the rights to receive cash flows from the assets have
expired or have been transferred and the Group has transferred substantially all the risks and rewards
of ownership. Available-for-sale financial assets and financial assets at fair value through profit or loss
are subsequently carried at fair value. Loans and receivables are carried at amortised cost using the
effective interest rate method.
The Group assesses at each reporting date whether there is objective evidence that any investment
is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss that
had been recognised in other comprehensive income shall be reclassified from equity to consolidated
statement of profit or loss as a reclassification adjustment. Impairment losses recognised in the
consolidated statement of profit or loss on equity instruments classified as available-for-sale are not
reversed through consolidated statement of profit or loss.
4.5.2 Financial liabilities
All financial liabilities are recognised at the time when the Group becomes a party to the contractual provisions
of the instrument. Financial liabilities are recognised initially at fair value less any directly attributable
transaction cost. Subsequent to initial recognition, these are measured at amortised cost using the effective
interest rate method.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expired. Where an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as a derecognition of the original liability and the recognition of a new liability, and the difference
in respective carrying amounts is recognised in the consolidated statement of profit or loss.
4.5.3 Offsetting of financial assets and financial liabilities
A financial asset and a financial liability are offset and the net amount is reported in the reporting date if the
Group has a legally enforceable right to set-off the recognised amounts and intends either to settle on a net
basis or to realise the asset and settle the liability simultaneously.
4.6 Stores and spares
Stores and spares to be consumed in the ordinary course of business are valued at lower of weighted average
cost and net realizable value (NRV) except for those in transit, if any, which are stated at cost. Cost comprises of
invoice value plus other direct costs incurred thereon. Provision is made for slow moving and obsolete items
wherever necessary and is recognised in the consolidated statement of profit or loss.

4.7 Stock-in-trade
Stock-in-trade is valued at the lower of cost and net realisable value (NRV). Cost is determined using the weighted
average method for both Liquefied Petroleum Gas (LPG) and Low Pressure Regulators (LPR). Items in transit are
valued at cost comprising invoice value plus other charges incurred thereon.
Net realisable value signifies the estimated selling price in the ordinary course of business, less estimated costs
necessary to make the sale.
4.8 Trade debts and other receivables
Trade debts and other receivables are stated initially at fair value and subsequently measured at amortised cost using
the effective interest rate method less provision for impairment, if any. A provision for impairment is established where
there is objective evidence that the Group will not be able to collect all amounts due according to the original terms
of receivables. Trade debts and other receivables are written-off when considered irrecoverable.
4.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, cash with banks on current, collection, deposit and saving accounts.
4.10 Retirement and other service benefits
4.10.1 Defined benefit plans
The Holding Company operates:
an approved defined benefit gratuity scheme for all permanent employees and non management employees.
The scheme provides for a graduated scale of benefits dependent on the length of service of the employee
on terminal date, subject to the completion of minimum qualifying period of service. Gratuity is based on
employee’s last drawn salary; and
an approved defined benefit pension scheme for management staff. The scheme provides pension based
on the employees’ last drawn salary subject to the completion of minimum qualifying period of service.
Pensions are payable for life and thereafter to surviving spouses and / or dependent children.
Both the above schemes are funded and contributions to them are made monthly on the basis of actuarial
valuation and in line with the provisions of the Income Tax Ordinance, 2001. The gratuity and pension funds are
governed under the Trust Act, 1882, Trust Deed and Rules of Fund, repealed Companies Ordinance, 1984, the
Income Tax Ordinance, 2001 and the Income Tax Rules, 2002. Responsibility for governance of plan, including
investment decisions and contribution schedule lie with the Board of Trustees of the Funds. Further, monthly
contributions are made by employees in the defined benefit pension fund at the rate of 1.4% and 1.72% according
to their job grades. Actuarial valuations of these schemes are carried out at appropriate regular intervals.
4.10.2 Defined contribution plan
The Holding Company operates a recognised contributory provident fund for all permanent employees.
Equal monthly contributions are made, both by the Group and the employees at the rate of 4.25% per
annum of the basic salary and 10% per annum of the basic salary for management and non-management
employees, respectively.
4.11 Loans and borrowings
Loans and borrowings are initially recognised at fair value, net of transaction costs incurred. Loan and borrowings
are subsequently stated at amortised cost using the effective interest rate method.
Loans and borrowings are classified as current liabilities, unless the Group has an unconditional right to defer the
settlement of the liability for at least twelve months after the reporting date.

4.12 Trade and other payables
These are stated initially at fair value and subsequently measured at amortised cost using the effective interest
rate method. Exchange gains and losses arising in respect of liabilities in foreign currency are added to the carrying
amount of the respective liability.
4.13 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event
and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation. Provisions are reviewed at each reporting date and adjusted to reflect
current best estimate.
4.14 Taxation
4.14.1 Current
Provision for current taxation is based on taxable income at the current rates of taxation after taking into
account tax credits and rebates available, if any, or Minimum Tax on Turnover or Alternate Corporate Tax,
whichever is higher in accordance with the provisions of Income Tax Ordinance, 2001.
4.14.2 Deferred
Deferred tax is recognised using the balance sheet approach, on all temporary differences arising at the
reporting date between the tax base of asset and liabilities and their carrying amounts for financial reporting
purposes.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax asset are recognised
for all deductible temporary differences to the extent that it is probable that the future taxable profits will be
available against which the asset may be utilised. Deferred tax asset are reduced to the extent that it is no
longer probable that the related tax benefit will be realised.
The carrying amount of deferred tax asset is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax
asset to be recognised. Unrecognised deferred tax assets are reassessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profit will allow deferred tax asset
to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on the tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
4.15 Foreign currencies
Transactions in foreign currencies are translated into functional currency (Pakistani Rupees) using exchange rates
approximating those ruling at the dates of the transactions. Monetary assets and liabilities in foreign currencies are
translated into Pakistani Rupees at the rates of exchange prevailing at the reporting date. Exchange gains and losses
resulting from the settlement of foreign currency transactions and translation of monetary assets and liabilities at the
rates prevailing at the reporting date are included in the consolidated statement of profit or loss. Non-monetary items
that are measured in terms of a historical cost in foreign currency are not re-translated.
4.16 Revenue recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Group and the revenue
can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable and
is recognised on the following basis:

Sales are recorded at the time of delivery to the distributors and direct customers.
Return on saving account is recorded using effective interest rate method.
Income from dividend, if any, is recognised when right to receive dividend is established.
Other revenues including recovery of storage and handling charges and rental income from storage tank are
accounted for on accrual basis.
4.17 Borrowing costs
Borrowing costs are recognised as an expense in the period in which these are incurred except where such costs
are directly attributable to the acquisition, construction or production of a qualifying asset, in which case such
costs are capitalised as part of the cost of that asset.
4.18 Dividend and appropriation to reserves
Dividend and appropriation to reserves are recognised in the financial statements in the period in which these are
approved.
4.19 Earnings per share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number
of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable
to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all
dilutive potential ordinary shares, if any.
5. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of consolidated financial statements in conformity with approved accounting standards requires the use
of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying
the Group’s accounting policies. Estimates and judgments are continually evaluated and are based on historical experience
and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods
affected. In the process of applying the Group’s accounting policies, management has made the following estimates and
judgments which are significant to the financial statements:
The Group reviews appropriateness of the rates of depreciation, useful lives and residual values used in the
calculation of depreciation. Further where applicable, an estimate of recoverable amount of assets is made for
possible impairment on an annual basis.
The Group reviews appropriateness of the rate of amortisation and useful life used in the calculation for amortisation.
Further where applicable, an estimate of recoverable amount of assets is made for possible impairment on an
annual basis.
5.3 Taxation
In making the estimates for current income taxes payable by the Group, the management considers the applicable
laws and the decisions / judgements of appellate authorities on certain issues in the past. Accordingly, the recognition
of deferred tax is also made, taking into account these judgements and the best estimates of future results of
operations of the Group.

5.4 Provision for retirement and other service benefits
The present value of these obligations depends on a number of factors that are determined on actuarial basis
using a number of assumptions. Any changes in these assumptions will impact the carrying amount of these
obligations. The present values of these obligations and the underlying assumptions are disclosed in note 36 to
the consolidated financial statements.
6 AMALGAMATION WITH HOLDING COMPANY
Effective February 20, 2015, the Holding Company went through the scheme of amalgamation (the Scheme) with HTPL
consequent to the approval of the Scheme by the High Court of Sindh.
According to the Scheme, 0.31 shares of the Holding Company, with a face value of Rs.10 each, were offered to the
shareholders of HTPL for every one share held of HTPL, with a face value of Rs.10 each. As per the Scheme, the Holding
Company is required to allot new shares to the shareholders of HTPL. Upon allotment of new shares, old shares of the
Holding Company, held by HTPL, shall stand cancelled and simultaneously HTPL shall stand dissolved without being
wound up. Further, the cancellation of old shares and issuance of new shares will result in the reduction of 151,154 shares
of the Holding Company. The Holding Company is in the process of completing the legal formalities for the issuance of
new shares.
As a result of the Scheme, the assets and liabilities of HTPL were amalgamated with the assets and liabilities of the Holding
Company based on the fair values as of February 19, 2015. The summary of assets and liabilities of HTPL amalgamated
as above, is as under:
Fair value as of
February 19, 2015
(Rupees in '000)
Assets
Goodwill 253,091
Property, plant and equipment 559,529
Cash and bank balances 51
812,671
Liabilities
Long-term loan - secured 400,000
Deferred taxation 14,863
Trade and other payables 2,247
Short-term loans 30,646
Accrued mark-up on long-term loan 17,508
465,264
Net assets 347,407
Represented by:
Unappropriated loss (73,677)
Revaluation surplus on property, plant and equipment 269,138
Reserve on amalgamation 151,946
347,407
Note 2018 2017

--------- (Rupees in '000) ---------
7. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 7.1 742,636 758,226

7.1 Operating fixed assets
June 30, 2018

Charge for
------------------------------------------------------- (Rupees in '000) -------------------------------------------------------
Owned
Buildings on
leasehold land 83,294 - 83,294 53,548 2,311 55,859 27,435 5%
Plant and machinery 63,776 574 64,350 50,630 1,313 51,943 12,407 5%
electrical and
other equipment 80,232 192 80,424 70,240 1,770 72,010 8,414 10%-15%
Vehicles 58,561 94 58,655 57,749 446 58,195 460 20%-25%
Tanks, pipelines
and fittings 96,021 - 96,021 61,896 3,429 65,325 30,696 10%
Fire fighting equipment 20,970 99 21,069 16,592 989 17,581 3,488 15%
Cylinders and regulators
(note 7.1.3) 578,423 13,328 591,751 447,511 13,662 461,173 130,578 10%
Computers and related
accessories 17,161 342 17,503 16,537 279 16,816 687 33.33%
Leased
Vehicles 23,738 - 23,738 13,940 5,935 19,875 3,863 25%
1,551,029 14,629 1,565,658 792,803 30,219 823,022 742,636 -
June 30, 2017

Charge for
------------------------------------------------------- (Rupees in '000) -------------------------------------------------------
Owned
Buildings on
leasehold land 83,294 - 83,294 51,210 2,338 53,548 29,746 5%
Plant and machinery 62,024 1,752 63,776 49,337 1,293 50,630 13,146 5%
electrical
and other equipment 79,729 503 80,232 68,641 1,599 70,240 9,992 10%-15%
Vehicles 58,561 - 58,561 57,308 441 57,749 812 20%-25%
Tanks, pipelines
and fittings 96,021 - 96,021 61,197 699 61,896 34,125 10%
Fire fighting equipment 20,761 209 20,970 15,607 985 16,592 4,378 15%
Cylinders and regulators
(note 7.1.3) 548,123 30,300 578,423 435,545 11,966 447,511 130,912 10%
Computers and related
accessories 16,861 300 17,161 16,372 165 16,537 624 33.33%
Leased
Vehicles 23,738 - 23,738 8,005 5,935 13,940 9,798 25%
1,517,965 33,064 1,551,029 767,297 25,506 792,803 758,226 -

7.1.1 As at June 30, 2018, property, plant and equipment having cost of Rs. 552.535 million (2017: Rs. 550.452 million) are fully
depreciated.
7.1.2 The depreciation charge for the year has been allocated as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Cost of sales 27 6,104 4,773

Administrative expenses 28 10,342 8,021
Distribution and marketing expenses 29 13,773 12,712
30,219 25,506
7.1.3 These are in custody of distributors / customers owing to the nature of business of the Holding Company. The particulars
of these assets have not been disclosed due to several number of customers.
7.1.4 The Group’s freehold land and leasehold land was revalued on June 15, 2015 by M/s. Consultancy Support and Services
and Harvestor Services (Private) Limited, respectively. Had the revaluation not been carried out, the carrying value of
freehold land and leasehold land would have been lower by Rs. 5.627 million (2017: Rs. 5.627 million) and Rs. 266.097
million (2017: Rs. 266.097 million), respectively.
7.1.5 The forced sales value as per the revaluation report as of June 15, 2015 is as follows:
Class of asset Rupees in '000
Freehold land 13,500
Leasehold land 462,000
7.1.6 Particulars of immovable assets of the Holding Company are as follows:
Particulars Usage of property Address Covered Area (Sq. ft.)
Leasehold land For future business Commercial - cum- Residential Land Edh 107,811
Building on Plant site Plot No. 70, Sector 7-D,Korangi Filling 9,710
leasehold land Plant-1, Adjacent to Pakistan Refinery
Limited, Korangi Creek, Karachi
Building on Plant site LPG Storage & Filling Plant, Near Railway 6,380
leasehold land Station, Abbaspur, Faisalabad
7.1.7 In the current year and previous year, there were no disposal of assets, hence no disposal to report having book value
exceeding amount of Rs. 0.5 million.

8. INTANGIBLE ASSETS
Charge for
As at July 01, A at June 30, As at July 01, the year As at June As at June 30, Rate of
------------------------------------- (Rupees in '000) -------------------------------------
Rights under
supply contracts
(notes 8.2, 8.3 & 8.4) 344,706 50,150 394,856 143,604 59,941 203,545 191,311 7.14%-33%
Trademarks
(note 8.1& 8.5) 8,600 - 8,600 - - - 8,600 Nil
2018 610,966 50,150 661,116 148,173 59,941 208,114 453,002

Charge for
------------------------------------- (Rupees in '000) -------------------------------------
Rights under
supply contracts
(notes 8.2 and 8.3) 221,706 123,000 344,706 94,371 49,233 143,604 201,102 7.14%-33%
Trademarks
(note 8.1& 8.5) 8,600 - 8,600 - - - 8,600 Nil
2017 487,966 123,000 610,966 98,940 49,233 148,173 462,793
8.1 This represents excess of cost of acquisition over fair value of the identifiable assets and liabilities of the Holding Company
at the time of acquisition by HTPL (note 6).
8.1.1 Impairment testing of goodwill and trademarks:
The carrying value of goodwill has been allocated to the Holding Company, the cash generating unit (CGU), which
is also the operating and reportable segment for impairment testing.
2018 2017
--------- (Rupees in '000) ---------
Carrying amount of goodwill 253,091 253,091
Carrying amount of trademarks 8,600 8,600
The Group performed its annual impairment test in June 2018 and June 2017. The Group considers the relationship
between its market capitalisation, using the level 1 input of the fair value hierarchy - quoted prices, and its book value,
among other factors, when reviewing for indicators of impairment. As at June 30, 2018, the market capitalisation of the
Holding Company was above the book value of its equity by Rs. 244.077 million, indicating no impairment of the assets
constituting the CGU.

8.2 This includes Rs. 64.206 million representing consideration for beneficial rights of continuous supply of LPG under
the supply contract between Sui Northern Gas Pipelines Limited (SNGPL) and Pak-Arab Refinery Limited (PARCO)
which was transferred to the Holding Company as part of its acquisition of the LPG business of SNGPL in October
2001. The asset was recorded at its cost, which was bifurcated from the total cost of acquisition of Rs. 142 million,
on the basis of a valuation carried out by an independent valuer. This cost has been amortised over a period of
fourteen years, being the remaining period of the supply contract with PARCO at the acquisition date, ended in
prior year. Further, on completion of term of the existing contract during the prior year, the Holding Company
entered into an agreement with PARCO for purchase of LPG. The agreement provides right to supply of LPG for
a period of five years for which the Holding Company paid the signature bonus of Rs. 248 million.
8.3 During 2014, the Holding Company participated in a tender offer by Government Holdings (Private) Limited (GHPL)
in respect of purchase of LPG from Makori Gas Field, TAL Block. On successful submission of the highest bid of
Rs. 22.5 million, the Holding Company had been allotted one lot of LPG of five metric tons per day for five years
from the Makori Gas Field, TAL Block. However, pending the final decision of the Lahore High Court in writ petition
No. 6569/2014, to which the Holding Company is not a party, the LPG purchase agreement between the Holding
Company and GHPL has not yet been executed. The supply of LPG from Makori Gas Field is in accordance with
the terms and conditions contained in the tender document and is for a temporary period of five years. Accordingly,
Rs. 22.5 million, paid as signature bonus, being right to continuous supply of LPG, has been recognised as an
intangible asset with a useful life of five years.
8.4 During the year, the Holding Company participated in a tender offer by Oil & Gas Development Company Limited
(OGDCL) in respect of purchase of LPG from Kunnar Pasaki Deep - Tando Allahyar Gas Field District Hyderabad.
On successful submission of the highest signature bonus bid of Rs. 50.150 million, the Holding Company has been
allotted one lot of LPG of five metric tons per day for five years from the Kunnar Pasaki Deep - Tando Allahyar.
8.5 This represents consideration paid to OPI Gas (Private) Limited in 2011 for acquisition of rights and title to "Burshane"
trademarks. These trade marks are considered to have an indefinite useful life, and therefore have not been
amortised. Further, no impairment has been identified in this regard (note 8.1).
8.6 The amortisation for the year has been allocated as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Cost of sales 27 59,941 49,233

Administrative expenses 28 - -
59,941 49,233
9. LONG-TERM LOANS
Unsecured, considered good

Directors 9.2 236 2,569
Executives 9.3 & 9.5 2,104 978
Other employees 9.3 556 509
Supplier 9.4 - 8,504
9.6 2,896 12,560
Current maturity of long-term loans:

Directors (236) (2,469)
Executives (851) (397)
Other employees (343) (160)
Supplier - (8,504)
(1,430) (11,530)
1,466 1,030

9.1 Reconciliation of carrying amount of loans:
2018 2017
Other
Directors Executives employees Supplier Total Total
-------------------------------------------- (Rupees in '000) ---------------------------------------------
Opening balance 2,569 978 509 8,504 12,560 37,548
Disbursements 1,937 2,016 459 - 4,412 1,391

Repayments /
adjustments (4,270) (890) (412) (8,504) (14,076) (26,379)
Closing balance 236 2,104 556 - 2,896 12,560
9.2 Represents interest free loan granted by the Holding Company to Chief Financial Officer and Director Sales and
Marketing in prior year, amounting to Rs. 3 million and Rs. 1.85 million respectively, given as per Group policy,
repayable in 30 equal monthly installments. As of the reporting date, the loan from Director Sales and Marketing
has been recovered in full as per the agreement.
9.3 These loans are granted to employees under the Group’s policies. Car and motor cycle loans are repayable over
a maximum period of five years and two and a half years, respectively. Housing loans are repayable in maximum
50 equal monthly installments and salary loans are repayable over a maximum period of three years. Car loans
and housing loans carry interest at the rate of 1% per annum. Housing loans granted to employees are secured
against the letter of guarantee and promissory notes and other loans are secured against their provident fund
balances. These loans have been made in compliance with the requirements of the Act.
9.4 Represents unsecured interest free loan granted by the Holding Company on July 01, 2015 to a transporter
repayable in 30 equal monthly installments which has been adjusted / received in full during the year.
9.5 The maximum aggregate amount of loans due from Executives at the end of any month during the year was Rs.
2.14 million (2017: Rs. 8.64 million).
9.6 The carrying value of these financial assets is neither past due nor impaired. Further, interest free loans are not
discounted to present value, since the impact is considered to be immaterial in the overall context of these
consolidated financial statements.
10. LONG-TERM DEPOSITS
Represent deposits placed with supplier of LPG and fuel as per the terms of the supply agreement.
11. STORES AND SPARES
2018 2017
--------- (Rupees in '000) ---------
Stores 3,322 6,052

Spare parts 604 1,068
3,926 7,120
Provision for obsolete items (1,320) (1,320)
2,606 5,800

12. STOCK-IN-TRADE
Note 2018 2017

--------- (Rupees in '000) ---------
Liquefied Petroleum Gas (LPG) 12.1 92,547 47,081

95,341 50,755
12.1 Includes stock amounting to Rs. 14.016 million (2017: Rs. 7.092 million) held with the following parties under
hospitality arrangements:
2018 2017
--------- (Rupees in '000) ---------
Pakistan Oil Fields Limited 1,344 -

Ravi Sahiwal 903 -
Sadiq Gas Company 4,024 3,514
Sindh Gas (Private) Limited 342 -
Blessing Gas (Private) Limited 3,741 1,257
Tez Gas (Private) Limited - 2,016
Petroleum Gas (Private) Limited 709 305
Bashir Gas 2,953 -
14,016 7,092
12.2 As at June 30, 2018, stock of LPG held on behalf of third parties amounted to Rs. 2.414 million (2017: Rs. 2.968 million).
Note 2018 2017

--------- (Rupees in '000) ---------
13. TRADE DEBTS
Unsecured, considered good 13.1 17,654 5,001
13.1 Includes trade debts aggregating to Rs. 12.253 million (2017: Rs. 4.543 million) which were past due but not
impaired. Ageing analysis of these trade debts as at the reporting date is as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Up to 1 month 8,489 1,484
1 to 6 months 1,095 596
12,253 4,543
14. LOANS AND ADVANCES
Loans - secured, considered good

Current maturity of long-term loans 9 1,430 11,530
Advances - unsecured, considered good

Executives 14.1 1,296 1,713
Contractors and suppliers 117,988 61,966
119,284 63,679
120,714 75,209
14.1 The maximum aggregate amount due from executives at the end of any month was Rs. 1.546 million (2017: Rs.
1.136 million). The balance as at June 30, 2018 is due from the Chief Executive, which is receivable on demand.

15. DEPOSITS, PREPAYMENTS AND OTHER RECEIVABLES
Note 2018 2017

--------- (Rupees in '000) ---------
Deposits 9,785 647

Prepayments 1,816 5,319
Other receivables 15.1 33,475 41,326
45,076 47,292
15.1 Other receivables:
OPI Gas (Private) Limited 15.1.1 3,642 3,642

Burshane LPG (Pakistan) Limited - Provident Fund 766 6,906
Burshane LPG (Pakistan) Limited - Gratuity Fund 36.1.1 9,436 -
Accrued interest 5 118
Sales tax receivable - 11,336
Others 15.1.3 16,841 16,539
39,690 47,541
Provision for impairment 16.1.6 (6,215) (6,215)

33,475 41,326
15.1.1 Represents receivable against reimbursement of expenses incurred for debranding activities, which has not been
acknowledged by the counter party, thus fully provided.
15.1.2 Represents amount receivable from Burshane Petroleum (Private) Limited (formerly Darian International (Private)
Limited), a related party, as consideration against use of the Group's trademark name under an arrangement
entered in prior year.
15.1.3 Includes receivable against hospitality arrangements of Rs. 5.04 million (2017: Rs. 5.05 million) and receivable
against cylinder deposits of Rs. 2.41 million (2017: Rs. 3.91 million).
15.1.4 The maximum aggregate amount outstanding from related parties at any time of the year by reference to month
end balances is as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Burshane LPG (Pakistan) Limited - Provident Fund 7,369 6,906

Burshane LPG (Pakistan) Limited - Gratuity Fund 9,436 255
25,805 16,161
15.1.5 The ageing analysis of receivable balances due from related parties is as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Up to 1 month - -
1 to 6 months - -
More than 6 months - -
9,000 9,000

16. CASH AND BANK BALANCES
Cash in hand 169 30
Cash at banks:
saving accounts 16.1 59,440 52,734
current accounts
- conventional banking 52,266 60,088
- islamic banking 304 304
52,570 60,392
112,179 113,156
16.1 The profit rates on these saving accounts range from 3.75% to 4.25% per annum (2017: 1.95% to 5.9% per annum).
These balances are held in accounts maintained under conventional banking.
17. SHARE CAPITAL
17.1 Authorised capital
2018 2017 2018 2017

-------- (Number of shares) -------- --------- (Rupees in '000) ---------
90,000,000 90,000,000 Ordinary shares of Rs.10 each 900,000 900,000
17.2 Issued, subscribed and paid-up capital
2018 2017 2018 2017

-------- (Number of shares) -------- --------- (Rupees in '000) ---------
Ordinary shares of Rs.10 each

issued as:
19,881,766 19,881,766 fully paid up in cash (note 17.3) 198,817 198,817
76,820 76,820 fully paid for consideration

other than cash 768 768
2,530,304 2,530,304 fully paid bonus shares 25,303 25,303

22,488,890 22,488,890 224,888 224,888
17.3 As a result of the Scheme referred to in note 6, the authorised share capital of the Holding Company enhanced to
Rs. 900 million divided into 90 million ordinary shares of Rs.10 each. Further, pursuant to the effects of amalgamation,
the paid-up share capital of the Holding Company reduced by 151,154 ordinary shares (note 6).
17.4 As more fully explained in note 6, the Holding Company is in the process of completing legal formalities for
cancellation of 151,154 shares and for issuance of new shares to the shareholders of HTPL (former Holding
Company) in accordance with the Scheme. Post completion of legal formalities, Mr. Asad Alam Khan Niazi, Chief
Executive, will hold 12,326,629 ordinary shares of the Company of Rs. 10 each.
17.5 As at June 30, 2018, Mr. Asad Alam Niazi, Chief Executive, held 55.18% (June 30, 2017: 55.18%) while institutions
held 14.51% (June 30, 2017: 5.73%) and individuals and others held the balance of 11.13% (June 30, 2017: 8.13%).
Voting rights, board selection, right of first refusal and block voting are in proportion to their shareholding.

Note 2018 2017

--------- (Rupees in '000) ---------
18. RESERVES
Capital reserve
Reserve on amalgamation 153,458 153,458
Revenue reserves
General reserve 90,000 90,000
Unappropriated profit 53,965 56,739
143,965 146,739
Actuarial loss on remeasurement of
retirement and other service benefits (24,219) (21,214)

equipment 274,765 274,765
547,969 553,748
19. LONG-TERM LOAN
Secured
National Bank of Pakistan (NBP) 19.1 254,439 254,439
Current maturity of long-term loan (254,439) (254,439)
- -
19.1 As a result of the Scheme referred to in note 6, long-term finance obtained, under conventional banking terms, by
HTPL had been transferred to the Holding Company at the time of amalgamation. The loan was obtained as a
demand finance facility under the agreement dated April 08, 2013 from NBP and is repayable in 9 semi-annual
installments of Rs. 44.444 million latest by April 01, 2018 with a grace period of six months from the date of the
drawdown. The loan carries mark-up at rate of 6 months KIBOR plus 2.5% to 6% per annum. This loan is secured
by way of mortgage on leasehold land and charge on the Holding Company’s present and future current and fixed
assets as well as personal guarantees of Directors of the Holding Company. As at June 30, 2018, amount due but
not paid by the Holding Company was Rs. 254.439 million (2017: 168.26 million). During the year, the Holding
Company has requested NBP for restructuring of the loan and has received the new proposal with the extended
terms which are still under discussion and under review by the Bank's credit / risk committee.
20. LIABILITIES UNDER FINANCE LEASE
Note 2018 2017

--------- (Rupees in '000) ---------

Principal repayment during the year (3,002) (3,002)
Present value of minimum lease payments 3,940 6,942
Current maturity of liabilities under finance lease (3,002) (3,002)
Closing balance 938 3,940
20.1 Represents finance lease entered into with a leasing company for vehicles. Total lease rentals due under lease
agreement aggregated to Rs. 4.225 million (2017: Rs. 7.792 million) and are payable in equal monthly installments
latest by March 2020. Taxes, charges, demands and levies, repair and maintenance are to be borne by the Holding
Company. Financing rates of 3 months KIBOR plus 3% (2017: 3 months KIBOR plus 3%) per annum have been
used as discounting factor. The breakup of liabilities under finance lease is as follows:

2018 2017
Minimum lease Present value of Minimum Present value
payments minimum lease lease of minimum
payments payments lease payments
---------------------------------(Rupees in '000)------------------------------
Not later than 1 year 3,263 3,002 3,567 3,002

After one year but not more than five year 962 938 4,225 3,940
Total minimum lease payments 4,225 3,940 7,792 6,942
Finance charges allocated to future periods (285) - (850) -
Present value of minimum lease payments 3,940 3,940 6,942 6,942
Current maturity (3,002) (3,002) (3,002) (3,002)
938 938 3,940 3,940
Note 2018 2017

--------- (Rupees in '000) ---------
21. DEFERRED TAXATION - net
Taxable temporary differences

Accelerated tax depreciation and amortisation 25,754 27,921
Deductible temporary differences

Liabilities under finance lease (1,143) (2,083)
Tax credits (20,478) (18,680)
Provisions (2,185) (2,260)
(23,806) (23,023)
1,948 4,898
22. CYLINDER AND REGULATOR DEPOSITS
Represents non-interest bearing deposits which are refundable on termination of distributorship agreements and / or return
of cylinders and ancillary equipment as per the Holding Company's policy. These deposits, kept in the Holding Company's
bank accounts, are utilisable for the purpose of the business in terms of section 217 of the Act.
Note 2018 2017

--------- (Rupees in '000) ---------
23. TRADE AND OTHER PAYABLES
Creditors 92,174 56,177

Accrued liabilities 14,300 10,649
Burshane (LPG) Pakistan Limited:
Gratuity Fund 36.1.1 - 3,200
Pension Fund 36.1.1 33,085 6,089
Withholding tax payable 218 2,445
Sales tax payable 6,139 -
Advances from distributors / customers - unsecured 13,304 17,470
Zakat payable - 60
Others 13,089 4,746
179,524 104,264

Note 2018 2017

--------- (Rupees in '000) ---------
23.1 Workers' Profit Participation Fund

Interest charged during the year 32 269 -
Allocation for the year 31 2,901 2,718
Amount paid during the year - (8,800)
Closing balance 5,888 2,718
24. UNCLAIMED DIVIDENDS
Includes an amount of Rs. 50.508 million (2017: Rs. 33.672 million) payable to the beneficial owners of HTPL. As explained
in note 6, HTPL was merged with the Holding Company on February 20, 2015, however, shares held by HTPL in the Holding
Company are in the process of being cancelled and new shares shall be issued by the Holding Company in the name of
beneficial owners of HTPL. The beneficial owners of HTPL have requested the Holding Company to hold their dividend
till such time that shares held by HTPL are cancelled and new shares are issued by the Holding Company in their name.
25. CONTINGENCIES AND COMMITMENTS
25.1 Contingencies
25.1.1 Claims not acknowledged as debt by the Holding Company as at June 30, 2018 amounted to Rs. 2.06 million
(2017: Rs. 2.06 million).
25.1.2 During the year, the Deputy Commissioner Inland Revenue (DClR) had passed an Order in Original No.
DCIR/E&C/Unit-01&2/Z-IV/LTU/2018 of 2018 dated May 25, 2018 for the Holding Company for the tax periods
from July 2014 to March 2018 and raised sales tax demand of Rs. 65.571 million along with penalty of Rs. 67.538
million and default surcharge (to be calculated at the time of final payment) for recovery of short payment of sales
tax and claiming of alleged inadmissible input tax under section 11(3) of the Sales Tax Act, 1990. Against the order,
the Holding Company then filed an appeal with Commissioner Inland Revenue stating that the adjusting of input
tax over 90% of the output tax has not caused any loss to national exchequer and requested to grant relief from
the penalties imposed by the DCIR. Subsequent to the year end, the DCIR initiated the set aside proceeding and
concluded the same by raising penalty of Rs. 13.30 million. The Holding Company then seeked stay order against
DCIR's Order and was granted the stay against recovery of the impugned demand for thirty days from August 20,
2018 or till the decision of main appeal pending before this Tribunal whichever is earlier. As per the tax advisor,
the Holding Company has a strong case to defend before the appellate forum. Therefore, no provision has been
made, in this regard, in these consolidated financial statements.
2018 2017
25.2 Commitments --------- (Rupees in '000) ---------
25.2.1 Post-dated cheques 1,670 1,822
26. SALES - net
Liquefied Petroleum Gas (LPG) 3,473,726 2,167,620

Sales tax (548,793) (342,425)
2,924,933 1,825,195

Sales tax (208) (299)
1,143 1,630
2,926,076 1,826,825

27. COST OF SALES
Note 2018 2017

--------- (Rupees in '000) ---------
Opening stock 47,081 32,348

Purchases 2,630,321 1,532,987
2,677,402 1,565,335
Closing stock 12 (92,547) (47,081)
2,584,855 1,518,254

Cost of Low Pressure Regulators sold 880 1,514
Stores and spares consumed 27.2 4,230 3,794
Communication 338 1,183
Depreciation 7.1.2 6,104 4,773
2,693,563 1,617,005
27.2 Stores and spares consumed:
Note 2018 2017

--------- (Rupees in '000) ---------

Purchases 1,036 5,670
6,836 9,594
Closing balance 11 (2,606) (5,800)
4,230 3,794
28. ADMINISTRATIVE EXPENSES

Communication 2,664 1,873
Printing and stationery 2,108 1,230
Legal and professional charges 3,459 6,658
Insurance 2,751 2,417
Advertisement and publicity 644 717
Depreciation 7.1.2 10,342 8,021
Donations 1,180 1,271
Sundry expenses 707 1,466
108,437 92,114

Note 2018 2017

--------- (Rupees in '000) ---------
29. DISTRIBUTION AND MARKETING EXPENSES

Repairs and maintenance 129 260
Travelling, conveyance and vehicle maintenance 955 1,521
Rent, rates and electricity 1,213 311
Communication 295 507
Hospitality charges 30,556 24,417
Freight and octroi 1,455 2,087
Commission - 7,914
Depreciation 7.1.2 13,773 12,712
Security 585 461
64,224 62,752
30. OTHER INCOME
Note 2018 2017

--------- (Rupees in '000) ---------
Income from financial assets
Profit on saving accounts 30.1 3,350 4,688
Income from non-financial assets

Rental income from storage tanks 1,124 1,344
Liability for cylinder deposits written back 30.2 21,585 21,235
Reversal of provision for impairment - 8,606
Recoveries against cylinder replacement 2,193 2,631
Hospitality income 6,304 10,640
Others 1,034 930
32,240 45,386
35,590 50,074
30.1 Represents profit on bank accounts under conventional banking relationship.
30.2 During the year, the Holding Company carried out a detailed exercise to identify cylinder and regulator deposits
pertaining to cylinders issued for 10 years and above, which relates to inactive distributors / customers who are
not in business with the Holding Company.
Note 2018 2017

--------- (Rupees in '000) ---------
31. OTHER EXPENSES

Auditors' remuneration 31.1 1,860 1,857
Directors' fees 925 825
Trade debts written off - 7,211
Others 4,882 5,814
11,717 19,135

Note 2018 2017

--------- (Rupees in '000) ---------
31.1 Auditors' remuneration:
Statutory audit 1,000 1,000

Half yearly review 400 400
Review of code of corporate governance 150 150
Out of pocket expenses 310 307
1,860 1,857
32. FINANCE COSTS
Mark-up on long-term loan 25,086 30,857

Finance charges on liabilities under finance lease 565 879
Interest on Workers' Profits Participation Fund 23.1 269 -
Bank charges 4,056 3,431
29,976 35,167
33. TAXATION
Current 33.1 37,029 18,710

Prior (44) (394)
Deferred (2,950) 3,312
34,035 21,628
33.1 Provision for current taxation has been made on the basis of Minimum Tax under Section 113 and Final Tax Regime
under Section 169 of Income Tax Ordinance, 2001. Accordingly, tax expense reconciliation with the accounting
profit is not presented.
33.2 The returns of income have been filed on due date and are treated as deemed assessment orders under section
120 of the Ordinance. As per the management of the Group, tax provisions for the year 2017, 2016 and 2015 are
sufficient and adequately cover the assessed / declared position. A comparison of last three years of income tax
provision with tax assessment is presented below:
2017 2016 2015

--------- (Rupees in '000) ---------
Holding Company:

Income tax as per tax assessment 18,636 20,234 63,426
Subsidiary Company:

Income tax as per tax assessment 29,604 429,992 (157,134)
Note 2018 2017
34. EARNINGS PER SHARE – basic and diluted --------- (Rupees in '000) ---------
Profit for the year (Rupees in '000) 19,715 29,098
Weighted average number of ordinary shares in issue (in '000) 22,489 22,489
Earnings per share - basic and diluted Rs. 0.88 Rs. 1.29

35. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
The aggregate amounts charged during the year for remuneration, including all benefits, to the Chief Executive, Directors
and Executives of the Group are as follows:
2018 2016
Chief Chief
Executive Directors Executives Total Executive Director Executives Total
-------------------------------------------------- (Rupees in '000) --------------------------------------------------
Managerial remuneration 25,668 13,952 15,670 55,290 22,410 12,459 12,707 47,576
Bonus 2,277 1,248 1,400 4,925 2,070 1,114 1,136 4,320
Group's contribution to
provident fund 1,091 333 582 2,006 952 365 872 2,189
gratuity fund 259 - 382 641 235 - 346 581
pension fund - - 186 186 - - 168 168
Travelling and conveyance - 135 66 201 - 194 321 515
Extra working day compensation - - 222 222 - - 222 222
Mobile allowance - 30 - 30 - 30 - 30
Medical allowance - 382 251 633 - 327 657 984
29,295 16,080 18,759 64,134 25,667 14,489 16,429 56,585
Number of persons
(including those who
worked part of the year) 1 2 8 11 1 2 7 10
35.1 Fee amounting to Rs. 0.65 million (2017: Rs. 0.55 million) was paid to five (2017: four) non-executive directors for
attending Board meetings during the year.
35.2 In addition, the Chief Executive, the Directors and certain Executives were also provided with free use of the
Group's maintained cars.
35.3 The comparative figures have been restated to reflect the changes in the definition of executives as per the Act.
36. RETIREMENT AND OTHER SERVICE BENEFITS
36.1 Pension fund and gratuity fund - valuation results
The latest actuarial valuations of the defined benefit plans were carried out as at June 30, 2018, using the “Projected
Unit Credit Method”. The details of defined benefit plans are as follows:
Note 2018 2017 2018 2017
------------------------- (Rupees in '000) -------------------------
36.1.1 Reconciliation as at reporting date:
Fair value of plan assets 36.1.4 (75,828) (96,825) (25,236) (12,554)

Present value of defined benefit obligations 36.1.3 108,913 102,914 15,800 15,754
Net liability at end of the year 36.1.2 33,085 6,089 (9,436) 3,200
36.1.2 Movement in net liability recognised:
Opening balance 6,089 4,339 3,200 1,607

Charge for the year 36.1.5 1,747 1,766 3,712 188
Amounts paid to the fund (7,468) (7,167) - -
Employee contribution to be paid to fund 245 184 - -
Remeasurements recognised in other
comprehensive income 36.1.7 9,968 - (6,963) -
(6,963) - - -
Paid to the Holding Company 22,504 - - -
Employer contribution to the fund - - (9,385) (2,000)
Closing balance 33,085 6,089 (9,436) 3,200

Note 2018 2017 2018 2017
36.1.3 Movement in defined benefit obligations: ------------------------- (Rupees in '000) -------------------------
Opening balance 102,914 102,704 15,754 12,811

Current service cost 1,085 1,311 566 520
Interest cost 8,857 8,921 1,244 1,153
Past service cost (late joiners) - - 2,591 -
Benefits paid (9,014) (7,167) (3,857) -
Employees contribution 245 - - -
Remeasurements of obligations 36.1.7 4,826 (2,855) (498) 1,270
Closing balance 108,913 102,914 15,800 15,754
36.1.4 Movement in fair value of plan assets:
Opening balance 96,825 98,365 12,554 11,204

Expected return on plan assets 8,195 8,466 689 1,485
Benefits paid on behalf of the fund 7,468 7,167 - -
Employees contributions - (184) 9,385 2,000
Benefits paid (9,014) (7,167) (3,857) -
Paid to the Holding Company (22,504) - - -
Remeasurements of plan assets 36.1.7 (5,142) (9,822) 6,465 (2,135)
Closing balance 75,828 96,825 25,236 12,554
36.1.5 Charge for the year:
Current service cost 1,085 1,311 3,157 520

Net Interest cost 662 455 555 (332)
1,747 1,766 3,712 188
36.1.6 Actual return on plan assets 3,053 (1,356) 7,154 (650)
36.1.7 Remeasurement recognised in Other

Comprehensive Income:
Remeasurement of obligation
Experience (gain) / loss 4,826 (2,855) (498) 1,270
Remeasurement of plan assets
Return on plan assets, excluding amounts

included in interest expense / (income) - - (6,465) 2,135
Loss from change in financial
assumptions 5,142 9,822 - -
5,142 9,822 (6,465) 2,135
9,968 6,967 (6,963) 3,405

2018 2017 2018 2017
------------------------- (Percentage) -------------------------
36.1.8 Principal actuarial assumptions used in
the actuarial valuation:
Financial assumptions
Discount rate 9.00% 9.00% 9.00% 9.00%
Expected per annum rate of return on plan assets 9.00% 9.00% 9.00% 9.00%
Expected per annum rate of increase in
salaries - long term 7.00% 7.00% 7.00% 7.00%
Expected per annum rate of increase in pension - - - -
Demographic assumptions
Adjusted Adjusted Adjusted Adjusted
SLIC SLIC SLIC SLIC
Expected mortality rate 2001-2005 2001-2005 2001-2005 2001-2005
Expected withdrawal rate Low Low Low High

As at June 30, 2018
-------- (Rupees in '000) --------
36.1.9 Analysis of present value of defined tbenefit obligation:
Vested benefits 106,714 15,800

Non-vested benefits 2,199 -
108,913 15,800
38.1.10 Plan assets comprise of the following:

2018 2017 2018 2017
Rupees % Rupees % Rupees % Rupees %
in ‘000in in ‘000 in ‘000 in ‘000
Equity instruments 15,069 19.87 6,846 7.07 3,455 13.69 2,970 23.66
Debt instruments
Defence Savings
Certificates 17,232 22.73 16,112 16.64 14,360 56.90 13,426 106.95
Treasury Bills 36,468 48.09 - - 6,889 27.30 - -
Pakistan Investment
Bonds 6,238 8.23 60,596 62.58 - - - -
59,938 79.04 76,708 79 21,249 84.20 13,426 106.95
Cash and cash
equivalents 821 1.08 8,971 9.27 532 2.11 458 3.65
Others - - 4,300 4.44 - - (4,300) (34.25)
75,828 96,825 25,236 12,554
36.1.11 Historical information of staff retirement benefits:
2018 2017 2016 2015 2014 2013

------------------------------(Rupees in '000)------------------------------
Gratuity Fund
Deficit (9,436) 3,200 1,307 5,266 7,042 10,552
Pension Fund
(Deficit) / surplus 33,085 6,089 5,451 6,176 9,650 29,494
36.1.12 The amount of the defined benefit obligation after changes in the weighted principal assumptions is as follows:
As at June 30, 2018
-------- (Rupees in '000) --------
Discount rate + 1% 99,601 14,870

Discount rate - 1% 119,897 16,834
Long term salaries increase +1% 111,409 16,846
Long term salaries increase -1% 106,641 14,844
Withdrawal rates +10% 108,896 15,813
Withdrawal rates -10% 108,930 15,786
38.1.13 The above sensitivity analysis are based on a change in an assumption while holding all other assumptions
constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method
(present value of the defined benefit obligation calculated with the projected unit credit method at the end of
the reporting period) has been applied when calculating the liability recognised within the statement of the
consolidated financial position.

36.2 Provident Fund
The following information is based upon the latest financial statements of the provident fund as at the reporting date:
2018 2017
Unaudited Audited
--------- (Rupees in '000) ---------
Size of the fund - total assets 32,962 32,478

Fair value of investments 32,917 32,208
Cost of investments 29,992 31,378
Percentage of investments 99.86% 95.85%
2018 2017
Rupees Rupees
36.2.1 The break-up of fair value of investments is as follows: in '000 % in '000 %
Bank deposits 3,130 9.51 1,348 4.47

Government securities 23,703 72.01 28,840 95.53
Mutual funds 6,084 18.48 - -
32,917 100.00 30,188 100.00
36.2.2 The investments out of the Provident Fund have been made in accordance with the provisions of Section 218 of
the Act and the rules formulated for the purpose.
37. TRANSACTIONS WITH RELATED PARTIES
37.1 The related parties include the staff retirement benefit / contribution plans, associated companies / other related parties,
Directors and other Key Management Personnel. All major transactions with related parties are entered into at agreed
terms duly approved by the Board of Directors of the Group.
37.2 Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these
consolidated financial statements, are as follows:
Transactions with related parties

2018 2017
Nature of relationship Nature of transactions (Rupees in '000)

H.A.K.S. Trading (Private) Limited Dividend 16,836 16,836

Pension Fund Benefits paid 7,468 7,167
Provident Fund Holding Company's contribution for
the year 2,913 2,523
Norinco International Thatta Power Advances given for expenses - 517

Advances recovered - 562
ALSAA & AAK Commodities (Private) Limited Advances given for expenses 326 21
Advances recovered 326 21

37. TRANSACTIONS WITH RELATED PARTIES (continued)
Balances with related parties

2018 2017
Nature of relationship Nature of balances ---- (Rupees in '000) ----

H.A.K.S. Trading (Private) Limited Dividend payable 50,508 33,672

Gratuity Fund Receivable / payable to Staff Gratuity Fund 9,422 3,200
Pension Fund Payable to Staff Pension Fund 33,085 6,089
Provident Fund Receivable from Staff Provident Fund 766 6,906
Burshane Petroleum (Private) Limited Receivable against use of name

(Formerly Darian International (Private) Limited) "Burshane" 9,000 9,000
Norinco International Thatta Power

(Private) Limited Receivable against expenses - 81
ALSAA & AAK Commodities (Private) Limited Receivable against expenses 13 13
37.3. Following are the related parties with whom the Company had entered into transactions or has arrangement/ agreement
in place:
Name Basis of relationship % of shareholding in the Group
ALSAA & AAK Commodities (Private) Limited Common directorship Nil

Norinco International Thatta
Power (Private) Limited Common directorship Nil
Burshane Petroleum (Private) Limited Common directorship Nil

Gratuity Fund Staff Retirement Benefit Plan Nil
Pension Fund Staff Retirement Contribution Plan Nil
Provident Fund Staff Retirement Benefit Plan Nil

Note 2018 2017

--------- (Rupees in '000) ---------
38. CASH GENERATED FROM OPERATIONS

Adjustments
Depreciation 7.1.2 30,219 25,506
Reversal of provision of other receivable - (8,606)
Provision for retirement and other service benefits 8,372 4,923
Finance costs 32 29,976 35,167
Trade debts written off 31 - 7,211
Profit on saving accounts 30 (3,350) (4,688)
Liability for cylinder and regulator deposits written back 30 (21,585) (21,235)
Others - (205)
Working capital changes 38.1 (42,843) 55,937
114,479 193,969
38.1 Working capital changes
(Increase) / decrease in current assets:

Stores and spares - net 3,194 (1,876)
Stock-in-trade (44,586) (13,219)
Trade debts (12,653) 6,399
Loans and advances (45,505) 94,455
Deposits, prepayments and other receivables 5,512 (24,888)
(94,038) 60,871
Increase / (decrease) in current liabilities:
Trade and other payables 51,195 (4,934)
(42,843) 55,937
39. FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY CATEGORY
39.1 Financial assets as per balance sheet - at amortised cost
Long-term loans 9 1,466 1,030

Trade debts 13 17,654 5,001
Loans and advances 14 120,714 75,209
Deposits and other receivables 15 43,260 41,973
Cash and bank balances 16 112,179 113,156
396,112 306,355
39.2 Financial liabilities as per balance sheet - at amortised cost
Long-term loan including current maturity of long-term loan 19 254,439 254,439

Accrued mark-up on long-term loan 60,295 35,209
899,143 784,123

40. FINANCIAL RISK MANAGEMENT
40.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and
other price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on having cost
effective funding as well as to manage financial risk to minimize earnings volatility and provide maximum return to share
holders. Risk management is carried out by the Group’s finance and treasury department under policies approved by the
Board of Directors of the Holidng Company.
(a) Market risk
(i) Currency risk
Currency 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. The Group's exposure to the risk of changes in foreign exchange rates
relates primarily to the Group's operating activities. It mainly arises when receivables and payables exist due
to transactions in foreign currency.
As majority of the Group's financial assets and liabilities are denominated in Pakistani Rupees, therefore, the
Group, at present, is not materially exposed to foreign currency risk.
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Group is primarily exposed to interest rate risk arising from long-term
loan from bank and bank deposits. Borrowing at variable rate exposes the Group to cash flow interest rate
risk. The Group's manages its interest rate risk by placing its excess funds in saving accounts in banks.
The management of the Group estimates that 1% increase in the market interest rate, with all other factors
remaining constant, would decrease the Group's profit before tax by Rs. 2.544 (2017: Rs. 2.896 million) and
a 1% decrease would result in increase in the Group's profit before tax by the same amount. However, in
practice, the actual result may differ from the sensitivity analysis.
(iii) Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices (other than those arising from currency risk or interest rate risk), whether those changes
are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial
instruments traded in the market. The Group is not materially exposed to other price risk as at June 30, 2018.
(b) Credit risk
Credit risk represents the risk of financial loss being caused if counter party fails to discharge an obligation. The
Group attempts to control credit risk by monitoring credit exposures, limiting transactions with specific counter
parties and continually assessing the creditworthiness of counter parties.
Credit risk of the Group arises from deposits with banks and financial institutions, trade debts, loans, deposits and
other receivables. The credit risk on liquid funds is limited because the counter parties are banks with reasonably
high credit ratings. The maximum exposure to credit risk is presented in the below table.
The Group monitors the credit quality of its financial assets with reference to historical performance of such assets
and available external credit ratings. The carrying values of financial assets which are neither past due nor impaired
are as under:
2018 2017
--------- (Rupees in '000) ---------
Long-term loans 1,466 1,030

Trade debts 17,654 458
Loans 1,430 11,530
Deposits and other receivables 43,260 41,973
Bank balances 112,010 113,126
276,659 238,103

The credit quality of receivables can be assessed with reference to their historical performance with no or some
defaults in recent history. The credit quality of Group’s bank balances can be assessed with reference to external
credit ratings as follows:
Rating agency Rating

Name Short term Long term
2018 2017 2018 2017
Bank Alfalah Limited PACRA A1+ A1+ AA+ AA+

Habib Bank Limited JCR-VIS A1+ A1+ AAA AAA
MCB Bank Limited PACRA A1+ A1+ AAA AAA
National Bank of Pakistan PACRA A1+ A1+ AAA AAA
Standard Chartered Bank
(Pakistan) Limited PACRA A1+ A1+ AAA AAA
Faysal Bank Limited PACRA A1+ A1+ AA AA
Meezan Bank Limited JCR-VIS A1+ A1+ AA+ AA
United Bank Limited JCR-VIS A1+ A1+ AAA AAA
Sindh Bank Limited JCR-VIS A1+ A1+ AAA AAA
Summit Bank Limited JCR-VIS A1 A1 A- AAA
(c) Liquidity risk
Liquidity risk represents the risk that the Group will encounter difficulties in meeting obligations associated with
financial liabilities.
The Group's liquidity risk management implies maintaining sufficient cash and also involves projecting cash flows and
considering the level of liquid assets necessary to meet these. As of the reporting date, the Group's current liabilities
exceed its current assets by Rs. 148.055 million (2017: Rs. 130.962 million), which is mainly due to classification of the
long-term loan to current liabilities (note 19). However, the Group based on its future plans is confident that it will have
sufficient cash flows to meet its financial obligations in the foreseeable future.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining
period at the reporting date to the contractual maturity dates.
2018 2017
Maturity Maturity Maturity Maturity
upto one after upto one after
year one year Total year one year Total
----------------------------------- (Rupees in '000) -----------------------------------
Financial liabilities
Long-term loan including current
maturity of long-term loan 254,439 - 254,439 254,439 - 254,439
Liabilities under finance lease 3,002 938 3,940 3,002 3,940 6,942
Cylinder and regulator deposits - 374,145 374,145 - 373,599 373,599
Trade and other payables 152,648 - 152,648 77,661 - 125,065
Unclaimed dividends 53,676 - 53,676 36,273 - 36,273
Accrued mark-up on
long-term loan 60,295 - 60,295 35,209 - 35,209
524,060 375,083 899,143 406,584 377,539 831,527

40.2 Fair value
Fair value is the amount for which an asset could be exchanged, or a liability can be settled, between knowledgeable willing
parties in an arm's length transaction. As of the reporting date, Group's all assets and liabilities are carried at amortised cost
except for those mentioned below:
The Group's freehold land and leasehold land are stated at revalued amounts, being the fair value at the date of revaluation,
less any subsequent impairment losses, if any. The fair value measurement of the Group's free hold land and lease hold land
as at June 15, 2015 was carried out by M/s. Consultancy Support and Services and Harvestor Services (Private) Limited,
respectively (note 7.1.4).
The valuation techniques and inputs used to develop fair value measurement of aforementioned assets are as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities;
Level 2: Those involving inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices); and
Level 3: Those whose inputs for the asset or liability that are not based on observable market date (unobservable inputs).
There were no transfers between level 1, 2 or 3 of the fair value hierarchy during the year.
Details of fair value hierarchy and information relating to fair value of the Group's freehold land and leasehold land are as follows:
Fair value measurement using

Quoted price
in active Significant Significant
markets (level 1) observable unobservable
Total inputs (level 2) inputs (level 3)
------------------------ (Rupees in '000) ------------------------
June 30, 2018:

Freehold land 15,000 - 15,000 -
Leasehold land 509,138 - 509,138 -
524,138 - 524,138 -
June 30, 2017:

Freehold land 15,000 - 15,000 -
Leasehold land 509,138 - 509,138 -
524,138 - 524,138 -

40.3 Capital risk management
The Group finances its operations through equity, borrowings and management of working capital with a view of maintaining
an appropriate mix between various sources of finance to minimize risk. The primary objective of the Group’s capital
management is to ensure that it maintains healthy capital ratios in order to support its business, sustain future development
of the business and maximize shareholders value. The Group monitors capital using a debt equity ratio as follows:
Note 2018 2017

--------- (Rupees in '000) ---------
Long-term loan 19 - -
Current maturity of long-term loan 19 254,439 254,439
Accrued mark up on long-term loan 60,295 35,209
Total debt 926,019 810,726
Cash and bank balances 16 (112,179) (113,156)
Net debt 813,840 697,570
Share capital 17 224,888 224,888

Revenue reserves 18 143,965 146,739
Capital reserves 18 153,458 153,458
retirement and other service benefits 18 (24,219) (21,214)
Revaluation surplus on property, plant and equipment 18 274,765 274,765
Total equity 772,857 778,636
Capital 1,586,697 1,476,206
Gearing ratio 51.29% 47.25%
41. NON-ADJUSTING EVENT AFTER THE REPORTING DATE
41.1 Subsequent to the year end, the Board of Directors of the Holding Company in their meeting held on September 25, 2018
have proposed a final cash dividend of Re. 0.75 (2017: Re. 1) per share.
41.2 Under section 5A of the Income Tax Ordinance, 2001 (the Ordinance), every public company is obliged to pay tax at the
rate 5% on its accounting profit before tax if it derives profit for a tax year but, does not distribute atleast 20% of its after
tax profits within six months of the end of the tax year, through cash.
Based on the above fact, the Board of Directors of the Holding Company has approved / paid final cash dividend amounting
to Rs. 16,867 million for the financial and tax year 2018 which exceeds the prescribed minimum dividend requirement as
referred above. Accordingly, no further tax provision has been recorded under section 5A of the Ordinance.
42. CORRESPONDING FIGURES
Certain corresponding figures have been reclassified for better presentation, however, there are no material reclassifications
to report.

2018 2017
(Quantity in metric ton)
--------- (Rupees in '000) ---------
43. CAPACITY
Installed annual filling capacity 37,500 37,500
Actual utilization 42,502 33,548
43.1 The installed annual filling capacity does not include storage and filling capacity of hospitality locations. The variations are
due to change in market demand.
44. NUMBER OF EMPLOYEES As at and for As at and for

the year the year
ended June ended June
30, 2018 30, 2017
Total number of employees
Average number of employees during the year 52 50
Total number of plant site employees
Average number of plant site employees during the year 21 21
45. GENERAL
45.1 These consolidated financial statements have been rounded to the nearest thousand rupee, unless otherwise stated.
46. DATE OF AUTHORISATION FOR ISSUE
These consolidated financial statements were authorised for issue on September 25, 2018 by the Board of Directors of
the Group.

Attendance at Board & Audit Committe Meetings
For the year ended June 30, 2018
Name Board Audit Committee Human Resource and

Remuneration Committee
Member Meeting Attendence Member Meeting Attendence Member Meeting Attendence
Mr. Asad Alam Niazi 4 4 2 2
Mr. Shahriar D. Sethna 4 4 4 4
Ms. Hamdia Fatin Niazi 4 4 4 4 2 2
Mr. Darayus T. Sethna 4 2 4 4 2 2
Mr. Saifee Zakiuddin 4 4
Mr. Tassaduq Hussain Niazi 4 1
Mr. Syed Etrat Hussain Rizvi 4 3
Mr. Muhammad Khalid Dar 4 2

Pattern of Shareholding
No. Shareholders Having Shares Shares Held Percentage
From To
641 1 100 12632 0.0558
295 101 500 110466 0.4879
180 501 1000 168675 0.7450
254 1001 5000 651387 2.8771
49 5001 10000 379883 1.6779
12 10001 15000 154700 0.6833
4 15001 20000 67322 0.2974
4 20001 25000 86552 0.3823
4 25001 30000 114236 0.5046
1 30001 35000 35000 0.1546
2 5001 50000 98702 0.4360
1 50001 55000 52000 0.2297
1 55001 60000 60000 0.2650
1 65001 70000 70000 0.3092
1 70001 75000 71058 0.3139
1 140001 145000 140248 0.6195
1 380001 385000 380569 1.6810
1 1335001 1340000 336033 5.9012
1 1815001 1820000 1816238 8.0222
1 16830001 16835000 16834343 74.3565
1455 Company Total 22640044 100.0000

Pattern of Shareholding
Categories of Shareholders Number of Folio Balance Share Percentage
ASSOCIATED COMPANIES
· H.A.K.S. TRADING (PVT.) LIMITED 2 16,684,629 74.1905%
NIT & ICP
· NATIONAL BANK OF PAKISTAN, TRUSTEE DEPARTMENT 1 9,489 0.0422%
BANKS, DFI & NBFI
· NATIONAL BANK OF PAKISTAN 2 1,817,099 8.0800%
· THE BANK OF PUNJAB, TREASURY DIVISION. 1 70,000 0.3113%
· NOMAN ABID & COMPANY LIMITED 1 52,000 0.2312%
MODARABAS & MUTUAL FUNDS
· CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 1 1,336,033 5.9409%
GENERAL PUBLIC
· Local 1406 2,265,502 10.0739%
· FORGEIN 29 55,110 0.2451%
OTHERS 12 199,028 0.8850%
Company Total 1518 22,488,890 100.0000%
Shareholders holding five percent or more voting rights
H.A.K.S. TRADING (PVT.) LIMITED 2 16,684,629 74.1905%

NATIONAL BANK OF PAKISTAN 3 1,826,588 8.1222%
CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 1 1,336,033 5.9409%

E-Dividend Mandate Letter
To: Date: ____________________
Subject: Bank account details for payment of Dividend through electronic mode
Dear Sir,
I/We/Messrs.,________________________________________________________________________,
being a/the shareholder(s) of Burshane LPG (Pakistan) Limited [the “Company”], hereby, authorize the Company, to directly credit cash
dividends declared by it, in my bank account as detailed below:
(i) Shareholder’s details:
Name of the Shareholder
CDC Participant ID & Sub-Account No. /CDC IAS
CNIC/NICOP/Passport/NTN No. (please attach copy)
Contact Number (Landline & Cell Nos.)
Shareholder’s Address
(ii) Shareholder’s Bank account details:
Title of Bank Account
IBAN (See Note 1 below)
Bank’s Name
Branch Name & Code No
Branch Address
It is stated that the above particulars given by me are correct and I shall keep the Company, informed in case of any changes in the said
particulars in future.
Yours truly,
______________________
Signature of Shareholder
(Please affix company stamp in case of corporate entity)
Notes:
1. Please provide complete IBAN, after checking with your concerned branch to enable electronic credit directly into your bank account.
2. This letter must be sent to shareholder’s participant/CDC Investor Account Services which maintains his/her CDC account for
incorporation of bank account details for direct credit of cash dividend declared by the Company from time to time.
Form of Proxy
The Company Secretary
Suite No. 101, First Floor, Horizon Vista,
Plot # Commercial - 10,
Block-04, Scheme # 05,
Clifton, Karachi. 75600
I / We __________________________ of ________________________ being a member of Burshane LPG (Pakistan) Limited and holder of ordinary
shares as per Share Register Folio No.___________________ and / or CDC Participant I.D. No ___________________ and Sub Account No.
______________________ hereby appoint Mr./Mrs./Miss ___________________________________of___________________________________or
falling him ___________________________ of ________________________ as my proxy to attend and act for me, and on my behalf, at the
Annual General Meeting of the Company to be held on Wednesday, October 24, 2018, at 12:30 p.m. at Marvi Hall, Hotel Mehran, Main
Shahrah-e-Faisal, Karachi and any adjournment thereof.
Dated this ______________ day of ______________ , 2018.
_____________________________________________
(Specimen Signature of Proxy)
Revenue Stamp
Folio No. ____________________________________
Rs. 5/-
Participant I.D. No. ___________________________
Sub Account No. _____________________________
C.N.I.C./ Passport Number. ____________________
_____________________________________________
(Signature of Share Holder)
Folio No. ____________________________________

Participant I.D. No. ___________________________
Sub Account No. _____________________________
C.N.I.C./ Passport Number. ____________________
_____________________________________________ _____________________________________________
(Signature of Witness 1) (Signature of Witness 2)
Name. _______________________________________ Folio No. ____________________________________

C.N.I.C./ Passport Number. ____________________ Participant I.D. No. ___________________________
Sub Account No. _____________________________ Sub Account No. _____________________________
C.N.I.C./ Passport Number. ____________________ C.N.I.C./ Passport Number. ___________________
R
Suite 101, 1st Floor, Horizon Vista,

Plot No. Commercial - 10, Block-4
Scheme No. 5, Clifton, Karachi - 75600
Tel : + 92 21 35878356, 35309870 & 73
UAN : +92 21 111 111 BPL (275)
Fax : +92 21 3587 8353
www.burshane.com

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CATERING TO

Established in 1966, the objective of Burshane LPG

ANNUAL REPORT 2018 01

Our Team 10 Unconsolidated Financial Statements 44

Management 14 Unconsolidated Auditors‘ Report 45

Directors’ Report 18 Consolidated Financial Statements 90

Corporate Governance 26 Consolidated Auditors‘ Report 91

Statement of General Business Principles 28 Attendance at Board &

ANNUAL REPORT 2018 03

At Burshane LPG (Pakistan) Limited, We strive to provide

ANNUAL REPORT 2018 05

Driving an LPG vehicle is safe, easy and best of all,

06 ANNUAL REPORT 2018

ANNUAL REPORT 2018 07

Mr. Shahriar D. Sethna Mr. Asad Alam Khan

Mr. Asad Alam Khan Mr. Saifee Zakiuddin

Mrs. Hamdia Fatin Niazi Mr. Muhammad Khalid Dar

Mr. Irfan Javed Warsi

Mr. Tassaduq Hussein Niazi Mr. Amir Aziz

Burshane LPG has a very clear strategy to offer and

Company is committed on attracting more sutomers and enhancing

ANNUAL REPORT 2018 13

14 ANNUAL REPORT 2018

Mr. Wahaj Hussain Roozbeh Baria Syed Shahid Abbas

ANNUAL REPORT 2018 15

16 ANNUAL REPORT 2018

Burshane LPG (Pakistan) Limited is actively playing its

Environment Friendly LPG

18 ANNUAL REPORT 2018

Saifee Zakiuddin Asad Alam Khan

20 ANNUAL REPORT 2018

They ensure that all HSSE policies are

In Burshane, HSSE is managed as the most critical business activity.

22 ANNUAL REPORT 2018

Managing today’s business risk, delivering our strategy and

ANNUAL REPORT 2018 25

The Board is committed to maintain high standards of Corporate

26 ANNUAL REPORT 2018

On behalf of the Board

Karachi Mr. Asad Alam Khan

ANNUAL REPORT 2018 27

Value Sustainable Development

28 ANNUAL REPORT 2018

ANNUAL REPORT 2018 29

Political Activities The Business Principles apply to all transactions,

30 ANNUAL REPORT 2018

5. To consider any other business with the permission of the chair.

On behalf of the Board

Karachi. (Wahaj Hussain)

1. Book Closure: A. For Attending the Meeting:

ANNUAL REPORT 2018 31

Under the provisions of Section 242 of the Companies Act, 2017,

32 ANNUAL REPORT 2018

Net Sales Rs. in million Operating Profit Rs. in million

Gross Profit Cash and Cash Equivalents

ANNUAL REPORT 2018 35

Six Years Summary 2018 2017 2016 2015 2014 2013

Activity / Turnover Ratios

36 ANNUAL REPORT 2018