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NOTES TO AND FORMING
PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
169
PAKISTANOILFIELDS LIMITED
Investments classified as fair value through profit or loss of Rs 6,519 thousand (2019: Rs 813,478
thousand) were subject to price risk.
37.3.2 Capital risk management
The Company’s objectives when managing capital are to ensure the Company’s ability not only to
continue as a going concern but also tomeet its requirements for expansion and enhancement of its
business, maximize return of shareholders and optimize benefits for other stakeholders to maintain
an optimal capital structure and to reduce the cost of capital.
In order to achieve the above objectives, the Company may adjust the amount of dividends paid to
shareholders, issue new shares through bonus or right issue or sell assets to reduce debts or raise
debts, if required.
Consistent with others in the industry, the Company monitors capital on the basis of the gearing
ratio. The gearing ratio of the Company has always been low and the Company has mostly financed
its projects and business expansions through equity financing. Further, the Company is not subject
to externally imposed capital requirements.
37.3.3 Fair value of financial assets and liabilities
The carrying values of all financial assets and liabilities reflected in the financial statements
approximate their fair values. The table below analyzes financial assets that are measured at fair
value, by valuation method. The different levels have been defined as follows:
- Level 1 : Quoted prices in active markets for identical assets and liabilities;
- Level 2 : Observable inputs ; and
- Level 3 : Unobservable inputs
The Company held the following financial assets at fair value:
Level 1
Level 2
Level 3
Total
Rupees ('000)
June 30, 2020
Other financial assets
classified as fair value through
profit or loss
6,519
-
-
6,519
June 30, 2019
Other financial assets
classified as fair value through
profit or loss
813,478
-
-
813,478