| Mari Gas Company Limited |
|
|
|
|
|
|
|
|
|
| Annual
Report 2000 |
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|
| Contents |
|
|
| Company
Information |
|
| Financial
Highlights |
|
| Notice
of Meeting |
|
| Board
of Directors |
|
| Directors'
Report |
|
| Key
Personnel |
|
| Auditors'
Report to the Members |
|
| Balance
Sheet |
|
| Profit
& Loss Account |
|
| Cash
Flow Statement |
|
| Statement
of Changes in Equity |
|
| Notes
to the Accounts |
|
| Ten
Years at a Glance |
|
| Pattern
of Shareholding |
|
|
|
| COMPANY
INFORMATION |
|
|
| Legal Advisors |
|
| Orr
Digham & Company |
|
| Khan
& Piracha |
|
|
| Auditors |
|
| A.E
Ferguson & Company |
|
| Chartered
Accountants |
|
|
| Bankers |
|
| Askari
Commercial Bank Limited |
|
| National
Bank of Pakistan |
|
| Allied
Bank of Pakistan Limited |
|
| Habib
Bank Limited |
|
| Citibank
N.A. |
|
| ABN
AMRO Bank N.V. |
|
| Emirates
Bank International |
|
| Bank Alfalah |
|
|
|
| Registered
Office |
|
| 21-Mauve
Area, 3rd Road |
|
| Sector
G- 10/4, |
|
| Islamabad. |
|
|
|
| FINANCIAL
HIGHLIGHTS |
|
|
|
1999-2000 |
1998-99 |
|
| Revenue |
|
Rs. Million |
8,997.86 |
5,953.27 |
|
|
|
|
| Government
levies |
|
Rs. Million |
8,397.98 |
5,432.14 |
|
|
|
|
| Profit
before tax |
|
Rs. Million |
284.85 |
229.35 |
|
|
|
|
| Profit
after tax |
|
Rs. Million |
198.73 |
160.23 |
|
|
|
|
| Dividend
per share |
|
Rs. |
2.25 |
2.25 |
|
|
|
|
| Tangible
fixed assets (Gross) |
|
Rs. Million |
2,188.96 |
2,076.09 |
|
|
|
|
| Number
of shares issued and subscribed |
Million |
36.75 |
36.75 |
|
|
|
|
|
|
| NOTICE
OF ANNUAL |
|
| GENERAL
MEETING |
|
|
| Notice
is hereby given that the Sixteenth Annual General Meeting of the Shareholders
of Mari Gas Company |
|
| Limited
will be held on Friday, December 22, 2000 at 09:00 a.m. at 21-Mauve Area, 3rd
Road, Sector G- |
|
| 10/4,
Islamabad to transact the following business: |
|
|
| 1.
To receive, consider and adopt the audited accounts of the Company for the
year ended June 30, 2000 |
|
| together
with the Directors' and Auditors' reports thereon. |
|
|
| 2.
To appoint auditors for the year 2000-2001 and fix their remuneration. |
|
|
|
By order of the Board |
|
|
| Islamabad, |
|
Khurram Khan |
|
| November
28, 2000 |
|
Company Secretary |
|
|
| NOTES: |
|
| 1.
A member entitled to attend and vote at the meeting is entitled to appoint a
proxy. The instrument |
|
| of
proxy duly executed in accordance with the Articles of Association of the
Company must be |
|
| deposited
at the Registered Office of the Company at Islamabad, at least 48 hours
before the time |
|
| of
holding the meeting. |
|
|
| 2.
Shareholders are requested to promptly notify the Company of any change in
their addresses. |
|
|
| Beneficial
Owners in Central Depository Company of Pakistan Limited |
|
|
| 3.
In case of individuals, the account holders/sub account holders and/or the
persons whose securities |
|
| are
in group account shall authenticate their identity by showing original
National Identity Card |
|
| (NIC)
at the time of attending the meeting. |
|
|
| 4.
In case of corporate entity, the Board of Directors' resolution/power of
attorney with specimen |
|
| signature
of the nominee shall be produced at the time of the meeting. |
|
|
| 5.
The proxy form shall be witnessed by two persons whose names, addresses and
NIC numbers shall |
|
| be
mentioned on the form. |
|
|
|
| BOARD
OF DIRECTORS |
|
|
| CHAIRMAN |
|
| Lt
Gen. Muhammad Maqbool (Retd) |
|
| Managing
Director |
|
| Fauji
Foundation |
|
|
| CHIEF
EXECUTIVE |
|
| Lt
Gen Khalid Nawaz Malik (Retd) |
|
| Managing
Director |
|
| Mari
gas Company Limited |
|
|
| DIRECTOR |
|
| Brig
Muhammad Saeed Baig (Retd) |
|
| Director
P&D |
|
| Fauji
Foundation |
|
|
| DIRECTOR |
|
| Brig
Muhammad Akram Ali Khan (Retd) |
|
| Director
Sugar |
|
| Fauji
Foundation |
|
|
| DIRECTOR |
|
| Brig
Karam Dad (Retd) |
|
| Director
P&A |
|
| Fauji
Foundation |
|
|
| DIRECTOR |
|
| Mr.
Qaiser Javed |
|
| Director
Finance |
|
| Fauji
Foundation |
|
|
| DIRECTOR |
|
| Mr.
Shahid Ahmad |
|
| Director
General (PC) |
|
| Government
of Pakistan |
|
|
| DIRECTOR |
|
| Mr.
M. Jehangir Bashar |
|
| Joint
Secretary Development |
|
| Government
of Pakistan |
|
|
| DIRECTOR |
|
| Major
General Parvez Akmal |
|
| Managing
Director |
|
| OGDCL |
|
|
| DIRECTOR |
|
| Mr.
Najam K. Hyder |
|
| Executive
Director Corporate |
|
| OGDCL |
|
|
| DIRECTOR |
|
| Mr.
F.Q. Usmani |
|
| Executive
Director |
|
| Technical
Services & Support |
|
| OGDCL |
|
|
| DIRECTOR |
|
| Mr.
Abdul Rahman |
|
| Businessman |
|
|
| DIRECTOR |
|
| Mr.
Istaqbal Mehdi |
|
| Chief
Executive |
|
| NIT |
|
|
| COMPANY
SECRETARY |
|
| Mr.
Khurram Khan |
|
|
|
| DIRECTORS'
REPORT |
|
|
| The
Directors take pleasure in presenting their report together with the audited
accounts of the Company and |
|
| the
Auditors' report thereon for the year ended June 30, 2000. |
|
|
| Operations |
|
| The
Company continued uninterrupted gas supply throughout the year under review
to all its customers |
|
| namely,
Fauji Fertilizer Company Lid, Engro Chemical
Pakistan Lid, Pak Saudi Fertilizers Company Ltd, Water |
|
| and
Power Development Authority (WAPDA) and Sui Southern Gas Company Limited. The
cumulative gas |
|
| produced
during the year ended June 30, 2000 was 146,938.927 million standard cubic
feet (MASTIFF) |
|
| as
against 139,891.383 (MMSCF) during the corresponding period of 1998-99. The
daily average |
|
| gas
production for the year was 401.472 MMSCF as compared to 383.264 MMSCF last
year. |
|
|
| The
gas allocation to fertilizer companies remained the same during the year at
336 MMSCF per day as was |
|
| in
the last year. However, gas allocation to WAPDA for power generation was
enhanced from 66 MMSCF per |
|
| day
to 90 MMSCF per day effective November 01 1999. |
|
|
| Regular
maintenance of the field infrastructure and equipment was carried out as per
good gas field practices |
|
| and
reservoir monitoring was conducted throughout the year for preventing any
breakdowns and controlling |
|
| water
coning problem in wells. |
|
|
| Future
Challenges |
|
| Mari
Gas discovered a substantial reservoir. at deeper horizon in 1997-98 in
addition to shallow reservoir. In |
|
| order
to appraise and develop the newly discovered reservoir, 440 km Dynamite
Seismic Survey was |
|
| conducted
in 1999. The acquired seismic data indicated some additional extension of
structure at the south east |
|
| section
of reservoir. To ensure the extension of deeper gas reservoir beyond the
boundaries of existing Mari |
|
| Development
& Production Lease, approval for Mari Reconnaissance Permit was obtained
from Directorate |
|
| General
of Petroleum Concessions. The interpretation of additional seismic data
acquired in the Reconnaissance |
|
| Permit
confirmed the extension of deeper reservoir beyond the limits of existing
lease area. In view of this, |
|
| additional
Development & Production Lease for about 246 sq. km has been requested
from Government of |
|
| Pakistan.
Based on the processing and interpretation of seismic data, drilling of four
appraisal wells is planned |
|
| and
it is expected to spud the first well in December 2000. These appraisal wells
will delineate the reservoir |
|
| extent
and future development of the reservoir will be planned accordingly. |
|
|
| Financial
Results |
|
| The
profit and appropriations for the year are as follows: |
|
| Profit |
|
Rs. '000 |
|
| -
Profit for the period under review after taxation |
|
198,734 |
|
| -
Un-appropriated profit brought forward |
|
487,859 |
|
|
------------ |
|
|
686,593 |
|
| Appropriations |
|
|
|
| -
First Interim Dividend @ 15% per share declared in February 2000 |
55,125 |
|
| -
Second Interim Dividend @ 7.5% per share declared in June 2000 |
27,563 |
|
|
------------ |
|
| - Total Dividend for the year |
|
82,688 |
|
| -
Transferred to Undistributed Percentage Return Reserve |
|
10,878 |
|
|
------------ |
|
| - Un-appropriated profit
carried forward |
|
593,027 |
|
|
========== |
|
|
| Directors |
|
| During
the period under review the following directors resigned from the Company's
Board of |
|
| Directors. |
|
|
| Mr.
Iltifat Rasul Khan |
|
| Mr.
Zaka Ud Din Malik |
|
| Mr.
Nasim Beg |
|
|
| These
vacancies were filled by: |
|
| Mr.
Qaiser Javed |
|
| Maj
Gen Parvez Akmal |
|
| Mr.
Istaqbal Mehdi |
|
|
| I
wish to record the Board's appreciation for valuable contributions and
services rendered by the |
|
| retiring
directors during their tenure and extend warm welcome to the incoming
directors. |
|
|
| Auditors |
|
| The
present auditors, Messrs. A. F. Ferguson & Company, Chartered
Accountants, retire and being |
|
| eligible
offer themselves for reappointment as auditors of the Company. |
|
|
| Human
Resources |
|
| Relations
between the Management and the workers continued to be cordial and are
expected to |
|
| remain
so in the future. |
|
|
| Welfare
Activities |
|
| The
Company continues to maintain its regular welfare activities for the local
community in the |
|
| vicinity
of Mari Gas Field. |
|
|
| Pattern
of Shareholding |
|
| A
statement showing the pattern of shareholding in the Company as at June 30,
2000 is attached. |
|
|
|
|
| Acknowledgment |
|
| The
board of directors would like to express their appreciation for the efforts
and dedication of all |
|
| officers
and staff of the Company which enabled the management to run the Company
efficiently |
|
| during
the year. The board also wish to express their appreciation for continued
assistance and |
|
| cooperation
received from the local administration at Daharki, various departments of
Federal |
|
| Government
particularly the Ministry of Petroleum and Natural Resources and the Ministry
of |
|
| Finance
in respect of matters relating to Company's operations and cooperation
extended by Fauji |
|
| Foundation
and Oil and Gas Development Company Limited. |
|
|
|
For and on behalf of the
Board |
|
|
Lt Gen Muhammad Maqbool
(Retd) |
|
|
Chairman |
|
|
|
| KEY
PERSONNEL |
|
|
| Brig
Tariq Masood Khan Niazi (Retd) |
|
| General
Manager Admin & Human Resources |
|
|
| Parveiz
Usman |
|
| General
Manager Finance |
|
|
| Muhammad
Ali Mughal |
|
| Manager
Operations |
|
|
| Muhammad
Ajmal Abbasi |
|
| Manager
Reservoir |
|
|
| Khurram
Khan |
|
| Company
Secretary |
|
|
| Asif
Ali Rangoonwala |
|
| Resident
Manager Karachi |
|
|
| Muhammad
Liaquat Ali Khan |
|
| Mari
Field Manager |
|
|
| Lt
Col Javed Iqbal Ahmed (Retd) |
|
| Manager
Administration |
|
|
| Muhammad
Asif |
|
| Manager
Accounts |
|
|
| Lt
Col Manzoor Iqbal Awan (Retd) |
|
| Manager
Human Resources |
|
|
| Muhammad
Aqib Anwer |
|
| Manager
Finance |
|
|
| Col.
Amjad Javed (Retd) |
|
| Manager
Procurement |
|
|
|
| AUDITORS'
REPORT TO THE MEMBER |
|
|
| We
have audited the annexed balance sheet of Mari Gas Company Limited as at June
30, 2000 and the related profit and |
|
| loss
account, cash flow statement and statement of changes in equity together with
the notes forming part thereof, for |
|
| the
year then ended and we state that we have obtained all the information and
explanations which, to the best of our |
|
| knowledge
and belief, were necessary for the purposes of our audit. |
|
|
| It
is the responsibility of the Company's management to establish and maintain a
system of internal control and prepare |
|
| and
present the above said statements in conformity with the approved accounting
standards and the requirements of the |
|
| Companies
Ordinance, 1984. Our responsibility is to express and opinion on these
statements based on our audit. |
|
|
| We
conducted our audit in accordance with the auditing standards as applicable
in Pakistan. These standards require that |
|
| we
plan and perform the audit to obtain reasonable assurance about whether the
above said statements are free of any |
|
| material
misstatement. An audit includes examining on a test basis, evidence
supporting the amounts and disclosures in |
|
| the
above said statements. An audit also includes assessing the accounting
policies and significant estimates made by |
|
| management,
as well as, evaluating the overall presentation of the above said statements.
We believe that our audit provides |
|
| a
reasonable basis for our opinion and, after due verification, we report that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the Company as
required by the Companies |
|
| Ordinance,
1984; |
|
|
| (b)
in our opinion: |
|
|
| (i)
the balance sheet and profit and loss account together with the notes thereon
have been drawn up in |
|
| conformity
with the Companies Ordinance, 1984 and the requirements of Mari Gas Well Head
Price 13 |
|
| Agreement
dated December 22, 1985 where its requirements are not consistent with the
requirements |
|
| of
the Companies Ordinance, 1984, and are in agreement with the books of account
and are further in |
|
| accordance
with the accounting policies consistently applied; |
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the Company's
business; and |
|
|
| (iii)
the business conducted, investments made and the expenditure incurred during
the year were in accordance |
|
| with
the objects of the Company; |
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations given to us, the balance |
|
| sheet,
profit and loss account, cash flow statement and statement of changes in
equity together with the notes |
|
| forming
part thereof conform with approved accounting standards as applicable in
Pakistan, and, give the |
|
| information
required by the Companies Ordinance, 1984, and the Agreement referred to in
(b) (i) above in |
|
| the
manner so required and respectively give a true and fair view of the state of
the Company's affairs as at |
|
| June
30, 2000 and of the profit, its cash flows and changes in equity for the year
then ended; and |
|
|
| (d)
in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance,
1980 (XVIII of 1980), was |
|
| deducted
by the Company and deposited in the Central Zakat Fund established under
section 7 of that Ordinance. |
|
|
| A.
F. Ferguson & Co. |
|
| Chartered
Accountants |
|
|
| Islamabad |
|
| November
06, 2000 |
|
|
|
| Balance
Sheet as at June 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
(Rupees in
thousand) |
|
| SHARE
CAPITAL, RESERVES AND SURPLUS |
|
| Authorized
capital |
|
| 50,000,000
ordinary shares of Rs 10 each |
|
500,000 |
500,000 |
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up capital |
|
3 |
367,500 |
367,500 |
|
| General
reserve |
|
|
2,046 |
2,046 |
|
| Undistributed
percentage return reserve |
|
4 |
57,181 |
46,303 |
|
| Profit
and loss account |
|
5 |
593,027 |
487,859 |
|
|
------------ |
------------ |
|
|
1,019,754 |
903,708 |
|
|
| REDEEMABLE
CAPITAL AND ACCRUED MARK-UP |
6 |
50,027 |
138,934 |
|
| LONG
TERM LOANS AND DEFERRED LIABILITIES |
|
| Loans
- secured |
|
7 |
41,296 |
123,884 |
|
| Employees'
retirement benefits |
|
|
2,387 |
1,768 |
|
| Deferred
credits |
|
8 |
74,717 |
40,490 |
|
|
------------ |
------------ |
|
|
118,400 |
166,142 |
|
| CURRENT
LIABILITIES |
|
| Current
maturity of - redeemable capital and |
|
| accrued
mark-up |
|
6 |
88,907 |
75,871 |
|
| -
long term loans |
|
7 |
82,588 |
82,588 |
|
| Accrued
and other liabilities |
|
9 |
1,770,497 |
1,464,487 |
|
|
------------ |
------------ |
|
|
1,941,992 |
1,622,946 |
|
| CONTINGENCIES
AND COMMITMENTS |
|
10 |
-- |
-- |
|
|
------------ |
------------ |
|
|
3,130,173 |
2,831,730 |
|
|
|
========== |
========== |
|
|
| TANGIBLE
FIXED ASSETS |
|
| Operating
assets |
|
11 |
894,768 |
870,453 |
|
| Capital
work-in-progress |
|
12 |
121,209 |
153,250 |
|
|
|
------------ |
------------ |
|
|
|
1,015,977 |
1,023,703 |
|
| LEASING
AND EXPLORATION COSTS |
|
| Cost |
|
5,606 |
5,606 |
|
| Less:
Amortization |
|
2,985 |
2,892 |
|
|
------------ |
------------ |
|
|
2,621 |
2,714 |
|
|
| LONG
TERM LOANS, ADVANCES, DEPOSITS |
|
| AND
PREPAYMENTS |
|
13 |
8,258 |
6,948 |
|
|
| CURRENT
ASSETS |
|
| Stores
and spares |
|
77,980 |
73,481 |
|
| Trade
debts - unsecured, considered good |
|
14 |
1,018,460 |
815,222 |
|
| Loans,
advances and prepayments |
|
15 |
17,899 |
21,423 |
|
| Other
receivables |
|
16 |
246,471 |
163,268 |
|
| Taxation |
|
17 |
50,441 |
94,165 |
|
| Bank
and cash balances |
|
18 |
692,066 |
630,806 |
|
|
------------ |
------------ |
|
|
2,103,317 |
1,798,365 |
|
|
------------ |
------------ |
|
|
3,130,173 |
2,831,730 |
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
Lt Gen Khalid Nawaz Mallik (Retd) |
|
Qaiser Javed |
|
|
Chief Executive |
|
Director |
|
|
|
| Profit
and Loss Account for the year ended June 30, 2000 |
|
|
|
|
2000 |
1999 |
|
|
Note |
(Rupees in
thousand) |
|
|
| Sales - net |
|
19 |
807,232 |
694,187 |
|
| Less:
Royalty |
|
|
100,904 |
86,760 |
|
|
|
------------ |
------------ |
|
|
|
706,328 |
607,427 |
|
| Other
operating expenses |
|
20 |
440,313 |
360,343 |
|
|
|
------------ |
------------ |
|
| Operating
profit |
|
|
266,015 |
247,084 |
|
| Other
income |
|
21 |
95,415 |
83,395 |
|
|
------------ |
------------ |
|
|
361,430 |
330,479 |
|
|
| Financial
charges |
|
22 |
56,246 |
84,560 |
|
| Other
charges |
|
23 |
20,331 |
16,570 |
|
|
------------ |
------------ |
|
|
76,577 |
101,130 |
|
|
------------ |
------------ |
|
| Profit
before taxation |
|
284,853 |
229,349 |
|
| Taxation |
|
86,119 |
69,115 |
|
|
------------ |
------------ |
|
| Profit
after taxation |
|
198,734 |
160,234 |
|
| Unappropriated
profit brought forward |
|
487,859 |
419,193 |
|
|
------------ |
------------ |
|
| Profit
available for appropriation |
|
686,593 |
579,427 |
|
| Appropriations/transfers: |
|
| Dividends
- 1st Interim @ 15 % (1999:15 %) |
|
55,125 |
55,125 |
|
| -
2nd Interim @ 7.5 % (1999:7.5 %) |
|
27,563 |
27,564 |
|
| Transferred
to undistributed percentage return |
|
| reserve
- note 4.1 |
|
10,878 |
8,879 |
|
|
------------ |
------------ |
|
|
93,566 |
91,568 |
|
|
------------ |
------------ |
|
| Un-appropriated
profit carried forward |
|
593,027 |
487,859 |
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
Lt Gen Khalid Nawaz Mallik (Retd) |
|
Qaiser Javed |
|
|
Chief Executive |
|
Director |
|
|
|
|
|
|
|
| Cash
Flow Statement for the year ended June 30, 2000 |
|
|
|
|
|
2000 |
1999 |
|
|
Note |
(Rupees in
thousand) |
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
| Cash
generated from operations |
|
24 |
392,296 |
765,137 |
|
| Taxes paid |
|
(42,395) |
(77,282) |
|
| Long-term
loans, adva |
