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NOTES TO AND FORMING
PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
215
PAKISTAN OILFIELDS LIMITED
12.
UNCLAIMED DIVIDEND
As required by section 244 of the Companies Act, 2017, (as amended by the Companies Amendment
Ordinance, 2020) as at June 30, 2020, Rs 119,576 thousand were kept in a profit bearing bank
account relating to unclaimed dividend for the years 2017 - 2020 and the Company is in the process
of transferring the balance amount to such account.
13.
CONTINGENCIES AND COMMITMENTS
13.1
Contingencies
13.1.1 POL
There were no material contingencies as at June 2020 (2019 : Rs Nil).
13.1.2 CAPGAS
In 2018, the Islamabad High Court held that the use of cylinders for the supply of LPG by the
company did not attract the levy and charge of sales tax under sales tax Act, 1990 and consequently
the Company was not entitled to claim and adjust input tax amounting to Rs 5,644 thousand. The
Company has filed an appeal with the Supreme Court of Pakistan which is pending adjudication.
The management and legal advisor of the Company are confident that the matter will be decided
in favour of the Company. Accordingly, no provision has been made in the financial statements of
CAPGAS.
2020
2019
Rupees ('000)
13.2 Group's share in contingencies of associated companies
a) Claims not acknowledged as debt including claims
in respect of delayed payment charges by crude oil
suppliers and freight claims
1,292,500
1,127,500
b) Claims raised on certain Oil Marketing Companies
(OMCs) in respect of delayed payment charges not
acknowledged as debt by the OMCs
1,267,500
1,267,500
c) Corporate guarantees and indemnity bonds issued
by associated companies
393,764
1,329,378
d) Guarantees issued by bank on behalf of associated
companies
117,820
-
e) Exposure to tax liability due to less distribution of
dividend as per section 5A of Finance Act, 2017
156,000
156,000
e) Other contingencies based on financial statements of
associated companies
108,044
108,044