| National Refinery Limited |
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| Annual
Report 2001 |
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| CONTENTS |
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| Company
Information |
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| Board
of Directors |
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| NRL at a Glance |
|
|
|
| Financial
Highlights |
|
|
| Pattern
of Shareholdings |
|
|
| Notice
of Meeting |
|
| Directors'
Report |
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|
| Chairman's
Review |
|
|
| Performance
at a Glance |
|
|
| Auditors'
Report |
|
|
| Balance Sheet |
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|
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| Profit
& Loss Account |
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|
| Statement
of Changes in Financial Position (Cash Flow) |
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| Statement
of Changes in Equity |
|
|
| Notes
to the Accounts |
|
|
| Report
and Accounts of National Oil Marketing (Pvt) Ltd. (NOM) |
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|
| Company
Information |
|
~ |
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|
: ~E~ |
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| MANAGING
DIRECTOR |
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|
I |
::~::~ |
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| M.M. Husain |
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|
.~ :~~ |
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| COMPANY
SECRETARY |
|
~ |
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| Asad
A. Siddiqui |
|
i~:~~ |
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| AUDITORS |
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| Ford,
Rhodes, Robson, Morrow, Chartered Accountants |
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| SOUCITO.S |
|
|
| ORR
Dignam & Co. and Qamar Abbas & Co. |
|
|
| BANKERS |
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|
| ABN-AMRO
Bank |
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| Allied
Bank of Pakistan Limited |
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| American
Express Bank Limited |
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| Bank Alfalah |
|
|
| Citibank N.A. |
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|
| Deutsche
Bank A.G. |
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| Habib
Bank Limited |
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| Muslim
Commercial Bank Limited |
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| National
Bank of Pakistan |
|
| Standard
Chartered Bank |
|
| Union
Bank Limited |
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| United
Bank Limited |
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| REGISTERED
OFFICE |
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| 7-B,
Korangi Industrial Zone, Karachi-74900, Pakistan |
|
|
| SHARES
DEPARTMENT |
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| 7-B,
Korangi Industrial Zone, Karachi-74900, Pakistan |
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| PHONES
(PABX) |
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| 5064135-37,
5064977-79,5064981-86,5064988 |
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|
|
|
| FAX |
|
| 92-21-5054663 |
|
|
| TELEX |
|
| 29141-
ENAR - PK |
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| 20789
- ENAR - PK |
|
|
| CABLE |
|
| Enarlube |
|
|
| WEBSITE |
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| WWW.NRLPAK.COM |
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|
|
| Board
of Directors |
|
|
| CHAIRMAN |
|
| ZAFAR IQBAL |
|
| Chairman |
|
| Social
Marketing Pakistan Ltd. |
|
|
| MUHAMMAD
IQBAL AWAN |
|
| Financial
Advisor |
|
| Ministry
of Petroleum & N.R. |
|
|
| M.
MANSOOR ZUBAIR |
|
| Joint Secretary |
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| Ministry
of Petroleum & N.R. |
|
|
| TARIK
KIVANC |
|
| Executive
Director |
|
| Islamic
Development Bank, Jeddah |
|
|
| SAQUIB
H. SHIRAZI |
|
| Chief Executive |
|
| Atlas
Honda Ltd. |
|
|
| TOWFIQ
H. CHINOY |
|
| Managing
Director |
|
| International
Industries Ltd. |
|
|
| M.
YOUNAS KHAN |
|
| Chairman |
|
| Inter
Asia Leasing Company |
|
|
| ISTAQBAL
MEHDI |
|
| Chairman/Chief
Executive |
|
| National
Investment Trust Ltd. |
|
|
| SAYED
MUZAFAR ALI SHAH |
|
| Former
V.C., Mehran University |
|
| Ex-Chairman,
SLIC |
|
|
| SULTAN
AHMED SHAMSI |
|
| Chief Executive |
|
|
|
| Imperial
Glass & Tile Co. |
|
|
| M.M. HUSAIN |
|
| Chief
Executive/MD |
|
| National
Refinery Ltd. |
|
|
|
| NRL
at a Glance |
|
|
| FIRST
LUBE REFINERY |
|
| Design
Capacity |
539,700 Tons per year of
Crude processing |
|
| Design
Capacity |
76,200 Tons per year of
Lube Base Oils |
|
| Date
Commissioned |
June 1966 |
|
| Project Cost |
|
103.9 Million Rupees |
|
|
| FUEL
REFINERY |
|
|
|
| BEFORE
REVAMP |
|
| Design
Capacity |
1,500,800 Tons per year
of Crude processing |
|
| Date
Commissioned |
April 1977 |
|
| Project Cost |
|
607.5 Million Rupees |
|
|
| AFTER
REVAMP |
|
| Design
Capacity |
2,170,800 Tons per year
of Crude processing |
|
| Date
Commissioning of Revamp |
February 1990 |
|
| Project
Cost of Revamp |
125.0 Million Rupees |
|
|
|
|
| B.T.X. UNIT |
|
|
| Design
Capacity |
25,000 Tons per year of
B.T.X. |
|
| Date
Commissioned |
April 1979 |
|
| Project Cost |
|
66.7 Million Rupees |
|
|
| SECOND
LUBE REFINERY |
|
| Design
Capacity |
100,000 Tons per year of
Lube Base Oils |
|
| Date
Commissioned |
January 1985 |
|
| Project Cost |
|
2,082.4 Million Rupees |
|
|
| SHARE
HOLDERS' EQUITY |
|
| June 1966 |
|
20.0 Million Rupees |
|
| June 2001 |
|
2,829.3 Million Rupees |
|
|
|
| Financial
Highlights |
|
|
|
1991-92 |
1992-93 |
1993-94 |
1994-95 |
1995-96 |
1996-97 |
1997-98 |
1998-99 |
1999-2000 |
2000-01 |
|
|
|
|
| RETURN
ON INVESTMENT |
|
|
|
|
|
|
Rs. Per Share of Rs. 10 |
|
|
|
|
|
|
|
|
| EARNING |
|
3.41 |
4.36 |
5.30 |
(3.83) |
4.19 |
6.84 |
7.38 |
9.65 |
10.61 |
11.64 |
|
| BREAK-UP VALUE |
13.32 |
13.68 |
14.48 |
10.65 |
14.84 |
19.18 |
24.06 |
29.71 |
35.82 |
42.46 |
|
| DIVIDEND |
|
3.30 |
4.00 |
4.50 |
0.00 |
0.00 |
2.50 |
2.50 |
4.00 |
4.50 |
5.00 |
|
| MARKET
VALUE OF SHARE |
96.00 |
83.75 |
103.00 |
53.50 |
39.25 |
28.50 |
17.50 |
30.54 |
42.70 |
39.00 |
|
|
|
|
|
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| FINANCIAL
GLIMSES |
|
|
|
|
|
|
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|
|
Rs. In 000's |
|
|
|
|
|
|
|
|
| ISSUED
& PAID-UP CAPITAL |
666,388 |
666,388 |
666,388 |
666,388 |
666,388 |
666,388 |
666,388 |
666,388 |
666,388 |
666,388 |
|
| SHARE
HOLDERS' EQUITY |
887,567 |
911,777 |
964,792 |
709,735 |
988,780 |
1,278,009 |
1,603,234 |
1,979,987 |
2,386,819 |
2,829,292 |
|
| CAPITAL
EXPENDITURE |
45,791 |
65,441 |
134,355 |
627,244 |
65,451 |
82,370 |
246,516 |
46,622 |
175,521 |
509,624 |
|
| PROFIT
BEFORE TAX |
406,295 |
589,196 |
633,395 |
(123,285) |
466,284 |
774,311 |
738,928 |
1,230,307 |
1,093,059 |
1,116,122 |
|
| PROFIT
AFTER TAX |
227,295 |
290,765 |
352,889 |
(255,057) |
279,045 |
455,826 |
491,822 |
643,308 |
706,707 |
775,667 |
|
| TAXATION |
|
179,000 |
298,431 |
280,506 |
131,772 |
187,239 |
318,485 |
247,106 |
586,999 |
386,352 |
340,465 |
|
|
|
|
|
|
| FINANCIAL
RATIOS |
|
|
|
| CURRENT
RATIO |
1: 0.98 |
1: 0.96 |
1: 0.95 |
1: 0.95 |
1: 1.00 |
1 : 1.00 |
1: 1.02 |
1: 1.06 |
1 : 1.08 |
1: 1.18 |
|
| LONG
TERM DEBT: EQUITY |
40:60 |
33:67 |
34:66 |
47:53 |
53:47 |
32:68 |
18:82 |
11 89 |
04:96 |
0.22:99.78 |
|
| TOTAL
DEBT: EQUITY |
84:16 |
86:14 |
85:15 |
90:10 |
90:10 |
90:10 |
89:11 |
85 15 |
84:16 |
82:18 |
|
|
|
|
|
| Pattern
of Shareholdings |
|
|
| Number of |
Shareholding |
Total number of |
|
|
| shareholders |
From |
To |
shares Held |
Percentage |
|
|
| 1,264 |
1 |
100 |
58,414 |
0.09 |
|
| 1,223 |
101 |
500 |
385,704 |
0.56 |
|
| 641 |
501 |
1,000 |
526,060 |
0.79 |
|
| 889 |
1,001 |
5,000 |
2,087,659 |
3.13 |
|
| 127 |
5,001 |
10,000 |
923,642 |
1.39 |
|
| 20 |
10,001 |
15,000 |
241,099 |
0.36 |
|
| 22 |
15,001 |
20,000 |
383,852 |
0.58 |
|
| 6 |
20,001 |
25,000 |
139,610 |
0.21 |
|
| 2 |
25,001 |
30,000 |
58,100 |
0.09 |
|
| 6 |
30,001 |
35,000 |
193,918 |
0.29 |
|
| 2 |
35,001 |
40,000 |
80,000 |
0.12 |
|
| 2 |
40,001 |
45,000 |
90,000 |
0.14 |
|
| 5 |
45,001 |
50,000 |
243,165 |
0.36 |
|
| 4 |
55,001 |
60,000 |
239,600 |
0.36 |
|
| 3 |
60,001 |
65,000 |
185,504 |
0.28 |
|
| 2 |
65,001 |
70,000 |
140,000 |
0.21 |
|
| 1 |
70,001 |
75,000 |
75,000 |
0.11 |
|
| 2 |
75,001 |
80,000 |
154,162 |
0.23 |
|
| 1 |
80,001 |
85,000 |
83,000 |
0.12 |
|
| 1 |
85,001 |
90,000 |
89,700 |
0.13 |
|
| 4 |
95,001 |
100,000 |
400,000 |
0.60 |
|
| 1 |
100,001 |
105,000 |
100,400 |
0.15 |
|
| 2 |
110,001 |
115,000 |
228,648 |
0.34 |
|
| 1 |
125,001 |
130,000 |
129,500 |
0.19 |
|
| 1 |
130,001 |
135,000 |
131,400 |
0.20 |
|
| 1 |
155,001 |
160,000 |
160,000 |
0.24 |
|
| 1 |
160,001 |
165,000 |
163,667 |
0.25 |
|
| 1 |
270,001 |
275,000 |
274,500 |
0.41 |
|
| 1 |
310,001 |
315,000 |
312,717 |
0.47 |
|
| 1 |
335,001 |
340,000 |
339,320 |
0.51 |
|
| 1 |
425,001 |
430,000 |
425,150 |
0.64 |
|
| 1 |
655,001 |
660,000 |
658,040 |
0.99 |
|
| 1 |
695,001 |
700,000 |
696,600 |
1.05 |
|
| 1 |
700,001 |
705,000 |
701,000 |
1.05 |
|
| 1 |
795,001 |
800,000 |
800,000 |
1.20 |
|
| 1 |
1,300,001 |
1,305,000 |
1,300,182 |
1.95 |
|
| 1 |
1,640,001 |
1,645,000 |
1,644,000 |
2.47 |
|
| 1 |
2,810,001 |
2,815,000 |
2,810,960 |
4.22 |
|
| 1 |
2,835,001 |
2,840,000 |
2,837,947 |
4.26 |
|
| 1 |
5,475,001 |
5,480,000 |
5,480,000 |
8.22 |
|
| 1 |
19,905,001 |
19,910,000 |
19,909,198 |
29.88 |
|
| 1 |
9,995,001 |
10,000,000 |
10,000,000 |
15.01 |
|
| 1 |
10,755,001 |
10,760,000 |
10,757,382 |
16.14 |
|
| ------------------ |
|
------------------ |
------------------ |
|
| 4,270 |
|
66,638,800 |
100.00 |
|
| ========== |
|
========== |
========== |
|
|
| CATEGORIES
OF SHAREHOLDERS |
NUMBERS |
SHARES HELD |
PERCENTAGE |
|
|
| Individuals |
|
|
4,190 |
4,860,981 |
7.29 |
|
| Investment
Companies |
|
18 |
10,674,263 |
16.02 |
|
| Joint
Stock Companies |
|
22 |
211,270 |
0.32 |
|
| Financial
Institutions * |
|
11 |
35,020,000 |
52.55 |
|
| Modaraba
Companies |
|
5 |
116,750 |
0.18 |
|
| Insurance
Companies |
|
11 |
4,778,069 |
7.17 |
|
| Others |
|
|
9 |
10,866,367 |
16.30 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| 1. PERAC |
|
|
1 |
10,757,382 |
16.14 |
|
| 2.
Administrator Abandoned Properties |
1 |
46,630 |
0.07 |
|
| 3.
Charitable Organizations |
|
5 |
33,354 |
0.05 |
|
| 4.
Corporate Law Authority |
|
1 |
1 |
0.00 |
|
| 5.
Employees old age benefits |
|
1 |
29,000 |
0.04 |
|
|
|
------------------ |
------------------ |
------------------ |
|
| Non Residents |
|
|
4 |
111,100 |
0.17 |
|
|
|
========== |
========== |
========== |
|
| TOTAL |
|
|
4,270 |
66,638,800 |
100.00 |
|
|
========== |
========== |
========== |
|
|
| *
Including Islamic Development Bank Jeddah, Holding 15% Shares |
|
|
|
| Notice
of Meeting |
|
|
| Notice
is hereby given that the Thirty Eight (38th) Annual General Meeting of
National Refinery Limited |
|
| will
be held on Wednesday 31st October 2001 at 10:30 A.M. at Hotel Regent Plaza,
Karachi to transact |
|
| the
following business: |
|
|
| ORDINARY
BUSINESS |
|
|
|
| 1.
To confirm the minutes of 37th Annual General Meeting held on November 28,
2000. |
|
|
| 2.
To receive and adopt the Audited Accounts of the Company for the year ended
June 30, 2001 |
|
| together
with the Directors' Report and the Auditors' Report thereon. |
|
|
| 3.
To declare the final dividend. |
|
|
| 4.
To appoint Company's Auditors for the year 2001-02 and to fix their
remuneration. |
|
|
|
|
By order of the Board |
|
|
|
|
|
|
|
|
|
Asad A. Siddiqui |
|
| Karachi:
September 06, 2001 |
|
Company Secretary |
|
|
| NOTES: |
|
|
| 1.
The Register of Members of the Company will remain closed and no transfer of
shares will be |
|
| accepted
for registration from 23rd October 2001 to 1st November 2001 (both days
inclusive). |
|
| Transfers
received in order at the Registered Office, National Refinery Limited, 7-B
Korangi |
|
| Industrial
Zone, Korangi, Karachi-74900 by the close of business on 22nd October 2001
will be in |
|
| time
for the purpose of payment of the Final Dividend to the transferees. |
|
|
| 2.
A member entitled to attend and vote at the meeting is entitled to appoint
another member as |
|
| proxy. |
|
|
| 3.
Proxies in order to be effective must be received at the Registered Office of
the Company not less |
|
| than
48 hours before the Meeting and must be duly stamped, signed and witnessed. |
|
|
| 4.
CDC shareholders are requested to bring their National Identity Card, Account
and Participant's ID |
|
| Number,
while attending the Meeting for identification. |
|
|
| 5.
Shareholders are requested to promptly notify the Company of any change in
their address. |
|
|
|
| Directors'
Report |
|
|
| The
Directors of the Company have pleasure in presenting Annual Report and the
Audited Financial Statements |
|
| of
the Company for the year ended dune 30, 2001. |
|
|
|
|
(Rupees in '000) |
|
|
| The
profit of the company for the year ended dune 30, 2001 |
|
|
| after
taking into account the Sales Tax, etc., aggregating to |
|
|
| Rs.
549.409 million (note 25.1) and the amount of |
|
|
|
| Rs.
2,912.492 million, under import parity pricing formula |
|
|
| and
after providing for administrative, selling and financial |
|
|
| charges
amount to: |
|
-- |
1,197,819 |
|
|
|
|
| Less:
Provision for |
|
|
|
| - Workers' Profit Participation
Fund |
|
59,891 |
-- |
|
| - Workers' Welfare Fund |
|
|
21,806 |
81,697 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
-- |
1,116,122 |
|
| Less: Taxation |
|
|
|
| - For
the year |
|
369,847 |
-- |
|
| -
For prior years |
|
|
|
| -
Deferred Tax |
|
(29,392) |
340,455 |
|
|
|
------------------ |
------------------ |
|
| Profit
after taxation |
|
|
-- |
775,667 |
|
|
| Amount
of un-appropriated profit |
|
| brought
forward from previous year |
|
-- |
172 |
|
|
------------------ |
------------------ |
|
| Profit
available for appropriation |
|
-- |
775,839 |
|
|
| APPROPRIATIONS |
|
| - Interim Dividend @ 10% |
|
|
66,639 |
-- |
|
| - The
Directors proposed that this should be utilized in |
|
| providing
for final dividend at the rate of 40% |
|
|
| equivalent
to Rs. 4/= per share of Rs. 10 each |
|
266,555 |
-- |
|
| - Transfer to General Reserve |
|
|
442,000 |
775,194 |
|
|
|
|
|
------------------ |
------------------ |
|
| Un
appropriated profit carried forward to next year |
|
-- |
645 |
|
|
========== |
========== |
|
|
| The
amount of receivable from the Government under the formula shall be
determined after the audited accounts |
|
| are
submitted to the Government and the approval is received in due course of
time. |
|
|
| DIVIDEND |
|
| The
Company has already paid an interim dividend of 10% in March 2001 and
Directors are now recommending |
|
| final
dividend at the rate of 40% (Rs. 4/= per share of Rs. 10 each) making a total
dividend of 50% for the year |
|
| ended
June 2001. |
|
|
|
| Directors'
Report |
|
|
| BOARD
OF DIRECTORS |
|
| Sayed
Muzafar Ali Shah, Former V.C., Mehran University & Ex-Chairman, SLIC, was
appointed in place of |
|
| Ms.
Aalia K. Dossa of National Investment Trust Limited, who submitted her
resignation on dune 08, 2001, |
|
| Mr.
Tarik Kivanc of Islamic Development Bank was re-elected and Mr. Sultan Ahmed
Shamsi was elected in place |
|
| of
Mr. Ahmed Dawood as Directors in the last Annual General Meeting held on
November 28, 2000 for a period |
|
| of 3 years. |
|
|
| Messers.
Zafar Iqbal, Chairman, Social Marketing Pakistan Limited is Chairman on NRL
Board and M.M. Husain |
|
| is
Managing Director of National Refinery Limited, Muhammad Mansoor Zubair,
Joint Secretary, Ministry of |
|
| Petroleum
& Natural Resources, Muhammad Iqbal Awan, Financial Advisor, Ministry of
Petroleum & Natural |
|
| Resources,
Towfiq H. Chinoy, Managing Director, International Industries Ltd., Saquib H.
Shirazi, Chief Executive, |
|
| Atlas
Honda Ltd., Istaqbal Mehdi, Chief Executive, National Investment Trust Ltd.,
M. Younas Khan, Chairman, |
|
| Inter
Asia Leasing Company, Sayed Muzafar All Shah, Former V.O., Mehran University
& Ex-Chairman, SLIC, |
|
| Tarik
Kivanc, Executive Director of Islamic Development Bank, Jaddah and Sultan
Ahmed Shamsi, Chief |
|
| Executive
Imperial Glass & Tile Company are Directors on NRL Board. |
|
|
| PATTERN
OF SHAREHOLDING |
|
| Pattern
of shareholding is shown on page 6 |
|
|
| AUDITORS |
|
| M/s
Ford, Rhodes, Robson, Morrow, Chartered Accountants, retire and being
eligible, offer themselves for |
|
| reappointment. |
|
|
| CHAIRMAN
S REVIEW |
|
| The
Chairman's Review is endorsed by the Board of Directors of the Company. |
|
|
|
|
On behalf of the Board |
|
|
|
|
|
|
|
ZAFAR IQBAL |
|
|
|
Chairman |
|
|
|
|
|
|
| Chairman's
Review |
|
|
| Dear
Shareholders |
|
|
|
| On
behalf of the Board of Directors and myself I welcome |
|
|
| you
to the 38th Annual General Meeting of the Company |
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| and
present a review of the operations and Financial |
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| results
of your Company for the year ended June 30, 2001. |
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| I
am pleased to report that your Company has performed |
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| well
over the past years despite the fact that there was a |
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| severe
competition and low margins on sale of Products. |
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| Fuel
Refinery operated under the Import Parity Formula, |
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| therefore,
a minimum of 10% and maximum of 40% |
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| return,
net of tax, on the paid-up capital was allowed. Due |
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| to
shrinkage in margin of Fuel products in the |
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| International
market the margin on sale of Fuel products |
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| was
not adequate to absorb the entire operating cost and |
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| financial
charges. Consequently the Fuel Refinery Profit |
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| was
restricted to Rs. 22.91 million being minimum, net of |
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| tax,
return of 10% on paid-up capital. |
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| Although
upward revision in Ex-Refinery Prices was |
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| allowed
by the Government during the year to cover the |
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| differential
in petroleum product prices, yet revision in ex- |
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| refinery
prices was not corresponding to the change in |
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| product
entitled prices which resulted in price differential |
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| claims
from the Government amounting to Rs. 1,847 |
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| million
beside unclaimed input of sales tax amounting to |
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| Rs.
530 million on account of sales of JP-I, being exempt |
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| from sales tax. |
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| The
present Government is gradually deregulating the |
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| petroleum
sector. The price of Furnace Oil was |
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| deregulated
last year. The Government has now |
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| authorized
the petroleum industry to fix the prices of other |
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| Fuel
products as well on fortnightly basis with effect from |
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