Hi-Tech Lubricants Ltd

Condensed Interim Financial Information

For the Quart er and Nine Months Peri od Ended Marc h 31, 2024 (U n-a udited)

FROM MILESTONES
TO MOMENTUM
COMPANY INFORMATION
BOARD OF DIRECTORS REGIONAL OFFICES
Mr. Shaukat Hassan KARACHI OFFICE:
Chairman of the Board / Non Executive Director
C-6/1, Street No.3, Bath Island, Clifton Karachi
Mr. Hassan Tahir
Chief Executive Officer / Executive Director
Phone: +92-21-35290674-5
Mr. Muhammad Ali Hassan
Executive Director
ISLAMABAD OFFICE:
Suite No. 1402, 14th Floor, Green Trust Tower,
Mr. Tahir Azam
Non Executive Director Jinnah Avenue, Blue Area Islamabad.
Ms. Mavira Tahir Phone: +92-51-2813054-6
Non Executive Director
Mr. Faraz Akhtar Zaidi MULTAN OFFICE:
Non Executive Director House No. 95, Block C, Phase III, Model Town, Multan.
Dr. Safdar Ali Butt Phone: +92-61-6521101-3
Non Executive Independent Director
Syed Asad Abbas Hussain PESHAWAR OFFICE:
Non Executive Independent Director
Of?ce No.280, 3rd Floor, Deans Trade Centre,
Mr. Shafiq Ur Rehman Islamia Road, Peshawar Cantt.
Non Executive Independent Director
Phone: +92-91-5253186-7
Mr. Wonjin Yoon (Nominee of SKEN)
Non Executive Director
OMC OFFICE:
CHIEF FINANCIAL OFFICER House No. 57-C 1, Gulberg III, Lahore.
Mr. Muhammad Imran Phone: +92-42-35199391
Phone: +92-42-111-645-645
Fax: +92- 42-3631-18-14
HTBL LOCATION
7-Km, Sundar Raiwind Road, Bhaikot, Lahore.
COMPANY SECRETARY & CHIEF Phone: +92-42-38102781-5
COMPLIANCE OFFICER Fax: +92-42-36311884

Mr. Fraz Amjad Khawaja COMPANY WEBSITE:

Phone: +92-42-111-645-645 www.hitechlubricants.com
Fax: +92- 42-3631-18-14 www.zicoil.pk
EXTERNAL AUDITORS BANKERS
M/S Riaz Ahmed & Company, Chartered Accountants
10-B, Saint Marry Park, ISLAMIC BANKS
Main Boulevard Gulberg, Lahore Meezan Bank Limited
Phone: +92-42-35718137 AL-Baraka Bank Limited
Fax: +92-42-35714340 Dubai Islamic Bank Limited

SHARE REGISTRAR CONVENTIONAL BANKS

M/S CDC Share Registrar Services Limited, CDC House, MCB Bank Limited
99-B, Block ‘B’, S.M.C.H.S. Main Shahra-e-Faisal, Karachi-74400 Standard Chartered Bank Limited
Phone: +92-21-111-111-500, Fax: +92-21-34326053 Habib Metropolitan Bank Limited
Toll Free: 0800 23275 (CDCPL) The Bank of Punjab
Email Address: [email protected] Bank AL-Habib Limited
Website: www.cdcsrsl.com National Bank of Pakistan
Askari Bank Limited
LEGAL ADVISOR JS Bank Limited
Mr. Ijaz Lashari Habib Bank Limited
Lashari Law Associates, 22-Munawar Chamber, United Bank Limited
1-Mozang Road, Lahore Summit Bank Limited
Phone: +92-42-37359287 Samba Bank
Fax: 92-42-37321471 Faysal Bank
Bank Alfalah Limited
STOCK SYMBOL Soneri Bank Limited
HTL
Mobilink Mircrofinance Bank Limited
REGISTERED / HEAD OFFICE
1-A , Danepur Road, GOR - 1, Lahore
Phone: +92-42-111-645-645
Fax: +92- 42-3631-18-14
Email Address: [email protected]
Hi-Tech Lubricants Limited 01
Directors’ Review
Dear Shareholders,
The Directors of Hi-Tech Lubricants Limited (the Company) take the pleasure in presenting financial
information of the Company including unconsolidated and consolidated unaudited financial
statements for the quarter and nine month ended March 31, 2024.
During this period, the Company recorded revenue of PKR 19.1 billion, an increase of 33% as
compared to same period of last year. This growth is the result of strong demand of the Company's
Products due to proper price management initiatives. Operating profit improved by 64% emanating
from favorable product mix and tighter control over costs.
As of today, the company operates 49 fuel stations, 38 in Punjab and 11 in KPK provinces, out of 52 and
35 allowed respectively for both the provinces by Oil and Gas Regulatory Authority (OGRA). We expect
that the majority of remaining fuel stations shall be operative by December 31, 2024, provided all
regulatory approvals are in place. Expansion of network is critical for improvement in profitability and
increase in volume of fuel products.
The Company's balance sheet has shown improvement as running finance facilities have been
reduced to PKR 2.2 billion as compared to 2.4 billion on June 30, 2023. Your management is making
strenuous efforts to maintain optimum inventory levels in order to control exorbitant financial cost.
Position of Initial Public Offer (IPO) Funds
Total payments made out of IPO Funds for Oil Marketing Company (OMC) project during the quarter
under review were PKR 98.3 million. As of 31 March 2024, un-utilized proceeds of IPO Funds were PKR
282.3 million. The Company has kept these funds as bank balances, term deposit receipts and
investment in mutual funds. These funds can only be utilized for the purposes of expansions of OMC
project.
Future Outlook
The economy of Pakistan is passing through a turbulent inflationary phase. During nine months of the
current financial year, sharp increase in energy and commodity prices, along with devaluation of
Pakistani Rupee, has resulted in to inflation; a trend that is expected to continue in the foreseeable
future. All of these factors are putting tremendous pressure on the disposable income of consumers
and is having an adverse impact on consumption patterns.
The management of the company is fully cognizant of the situation and is taking best measures
deemed necessary to manage these challenges. Your directors will continue to strive for delivering
premium quality products in order to maintain the Company's positioning in the market and also keep it
into the growth trajectory.
Acknowledgement
We take pleasure in expressing our sincere gratitude and appreciation for the outstanding
commitment and contribution of all the employees, investors and other stakeholders in the Company's
management.

On behalf of the Board

Mr. Hassan Tahir Mr. Shaukat Hassan

(Chief Executive) (Chairman)

Lahore, April 29, 2024

02 Hi-Tech Lubricants Limited

Hi-Tech Lubricants Limited 03
 HI-TECH LUBRICANTS LIMITED
UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2024 (Un-audited)

04 Hi-Tech Lubricants Limited

Unconsolidated Condensed Interim
Statement Of Financial Position (Un-audited)
As At 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Note Rupees Rupees

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES
Authorized share capital
150,000,000 (2023: 150,000,000)
ordinary shares of Rupees 10 each 1,500,000,000 1,500,000,000

Issued, subscribed and paid-up share capital 1,392,048,000 1,392,048,000

Reserves 2,489,824,548 2,430,897,384
Total equity 3,881,872,548 3,822,945,384

LIABILITIES

NON-CURRENT LIABILITIES

Lease liabilities 4 470,595,205 492,138,641

Long term deposits 18,500,000 16,500,000
489,095,205 508,638,641

CURRENT LIABILITIES

Trade and other payables 1,415,891,764 974,284,283

Accrued mark-up 56,475,739 81,019,923
Short term borrowings 1,680,182,779 1,851,556,185
Current portion of non-current liabilities 4 150,043,137 150,742,680
Unclaimed dividend 5,689,417 5,830,744
Provision for taxation - net 13,595,607 -
3,321,878,443 3,063,433,815
Total liabilities 3,810,973,648 3,572,072,456

CONTINGENCIES AND COMMITMENTS 5

TOTAL EQUITY AND LIABILITIES 7,692,846,196 7,395,017,840

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

Hi-Tech Lubricants Limited 05

Unconsolidated Condensed Interim
Statement Of Financial Position (Un-audited)
As At 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Note Rupees Rupees

ASSETS
NON-CURRENT ASSETS
Fixed assets 6 2,664,592,746 2,589,502,914
Right-of-use assets 7 574,396,357 605,121,153
Intangible assets 8 1,644,407 3,981,524
Investment property - 135,000,000
Investment in subsidiary company 9 1,300,000,600 1,300,000,600
Long term security deposits 44,629,369 51,943,128
Long term loans to employees 2,284,477 2,985,100
Deferred income tax asset - net 90,829,557 83,599,116
4,678,377,513 4,772,133,535

CURRENT ASSETS

Stock-in-trade 10 1,296,991,795 1,102,921,785

Trade debts 399,471,892 159,239,694
Loans and advances 217,287,965 625,010,633
Short term deposits and prepayments 73,399,514 32,337,488
Other receivables 298,908,523 188,392,066
Accrued interest 14,542,132 52,987,973
Short term investments 221,198,641 222,582,946
Cash and bank balances 357,668,221 239,411,720
2,879,468,683 2,622,884,305
Non-current asset classified as held for sale 11 135,000,000 -
3,014,468,683 2,622,884,305

TOTAL ASSETS 7,692,846,196 7,395,017,840

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

06 Hi-Tech Lubricants Limited

Unconsolidated Condensed Interim
Statement of Profit or Loss (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024

NINE MONTHS ENDED QUARTER ENDED

31 March 31 March 31 March 31 March
2024 2023 2024 2023
Rupees Rupees Rupees Rupees

GROSS REVENUE FROM

17,696,016,846 13,082,997,937 7,308,208,042 4,908,983,736
CONTRACTS WITH CUSTOMERS
Discounts (488,535,846) (270,839,679) (147,014,601) (121,228,288)
Sales tax (1,504,600,898) (1,297,636,895) (638,324,170) (643,588,964)
NET REVENUE FROM CONTRACTS
15,702,880,102 11,514,521,363 6,522,869,271 4,144,166,484
WITH CUSTOMERS
COST OF SALES (14,824,502,141) (10,273,447,037) (6,104,565,535) (3,509,955,124)
GROSS PROFIT 878,377,961 1,241,074,326 418,303,736 634,211,360

DISTRIBUTION COST (705,416,925) (668,933,014) (385,895,943) (298,969,678)

ADMINISTRATIVE EXPENSES (533,477,072) (500,665,962) (189,800,536) (163,500,255)
OTHER EXPENSES (19,119,987) (56,749,617) (2,555,940) (4,731,925)
(1,258,013,984) (1,226,348,593) (578,252,419) (467,201,858)
OTHER INCOME 909,815,603 423,701,672 500,243,694 92,352,515
PROFIT FROM OPERATIONS 530,179,580 438,427,405 340,295,011 259,362,017
FINANCE COST (401,184,234) (308,834,989) (114,994,393) (84,620,303)
PROFIT BEFORE TAXATION 128,995,346 129,592,416 225,300,618 174,741,714
TAXATION (70,068,182) (8,142,912) (23,832,631) (59,027,667)
PROFIT AFTER TAXATION 58,927,164 121,449,504 201,467,987 115,714,047

PROFIT PER SHARE - BASIC

AND DILUTED 0.42 0.87 1.45 0.83

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

Hi-Tech Lubricants Limited 07

Unconsolidated Condensed Interim
Statement of Comprehensive Income (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
NINE MONTHS ENDED QUARTER ENDED
31 March 31 March 31 March 31 March
2024 2023 2024 2023
Rupees Rupees Rupees Rupees

PROFIT AFTER TAXATION 58,927,164 121,449,504 201,467,987 115,714,047

OTHER COMPREHENSIVE INCOME

Items that will not be reclassified to profit or loss - - - -

Items that may be reclassified subsequently to profit or loss - - - -

Other comprehensive income for the period - - - -

TOTAL COMPREHENSIVE PROFIT FOR THE PERIOD 58,927,164 121,449,504 201,467,987 115,714,047

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

08 Hi-Tech Lubricants Limited

 Unconsolidated Condensed Interim
Statement of Changes In Equity (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
RESERVES
CAPITAL RESERVES REVENUE RESERVE
SHARE CAPITAL TOTAL EQUITY
SURPLUS ON TOTAL RESERVES
UN-APPROPRIATED
SHARE PREMIUM REVALUATION OF SUB-TOTAL
PROFIT
FREEHOLD LAND
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Balance as at 30 June 2022 - Audited 1,392,048,000 1,441,697,946 704,626,206 2,146,324,152 604,174,604 2,750,498,756 4,142,546,756
Transactions with owners:
Final dividend for the year ended 30 June 2022 @
- - - - (278,409,600) (278,409,600) (278,409,600)
Rupees 2.00 per share

Profit/(Loss) for the nine months period ended 31

- - - - 121,449,504 121,449,504 121,449,504
March 2023
Other comprehensive income/(loss) for the nine
months period ended 31 March 2023 - - - - - - -
Total comprehensive income/(loss) for the nine
- - - - 121,449,504 121,449,504 121,449,504
months period ended 31 March 2023

Balance as at 31 March 2023 - Un-Audited 1,392,048,000 1,441,697,946 704,626,206 2,146,324,152 447,214,508 2,593,538,660 3,985,586,660

Balance as at 30 June 2023 - Audited 1,392,048,000 1,441,697,946 756,846,956 2,198,544,902 232,352,482 2,430,897,384 3,822,945,384

Transaction with owners:

Profit/(Loss) for the nine months period ended 31
- - - - 58,927,164 58,927,164 58,927,164
March 2024
Other comprehensive income/(loss) for the nine
- - - - - - -
months period ended 31 March 2024
Total comprehensive income/(loss) for the nine
- - - - 58,927,164 58,927,164 58,927,164
months period ended 31 March 2024
Balance as at 31 March 2024 - Un-Audited 1,392,048,000 1,441,697,946 756,846,956 2,198,544,902 291,279,646 2,489,824,548 3,881,872,548

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

Hi-Tech Lubricants Limited 09

Unconsolidated Condensed Interim
Statement OF Cash Flows (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
NINE MONTHS ENDED
31 March 31 March
2024 2023
Note Rupees Rupees
CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from / (used in) operations 12 (128,726,106) 594,178,660

Finance cost paid (425,728,418) (321,517,442)

Income tax paid (63,703,016) (152,834,653)
Net increase in long term loans to employees (233,543) (3,369,478)
Net Decrease in long term security deposits 9,007,556 20,475,665
Increase / (Decrease) in long term deposits 2,000,000 (2,000,000)

Net cash used / (from) in operating activities (607,383,527) 134,932,752

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on operating fixed assets (212,188,262) (84,805,092)

Short term loan given to subsidiary company - (500,000,000)
Short term loan repaid by subsidiary company 485,500,000 -
Proceeds from disposal of operating fixed assets 13,364,000 10,371,701
Short term investments - net 7,471,236 (9,279,384)
Dividends received 551,081,791 283,275,077
Interest received on short term loan to subsidiary company 102,001,081 8,460,384
Profit on bank deposits and term deposit receipt received 31,872,008 12,961,519
Net cash (used in) / from investing activities 979,101,854 (279,015,795)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of lease liabilities (81,947,092) (93,598,900)

Dividend paid (141,327) (278,186,484)
Long term financing repaid - (47,851,814)
Short term borrowings - net (171,373,407) 130,267,837
Net cash (used in) / from financing activities (253,461,826) (289,369,361)

Net (decrease) / increase in cash and cash equivalents 118,256,501 (433,452,404)

Cash and cash equivalents at the beginning of the period 239,411,720 657,141,796
Cash and cash equivalents at the end of the period 357,668,221 223,689,392

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

10 Hi-Tech Lubricants Limited

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
1. THE COMPANY AND ITS OPERATIONS

Hi-Tech Lubricants Limited (“the Company”) was incorporated under the repealed Companies
Ordinance, 1984 (Now Companies Act, 2017) and listed on Pakistan Stock Exchange Limited. The
registered office of the Company is situated at 1-A, Danepur Road, GOR-1, Lahore. The principal activity
of the Company is to procure and distribute lubricants and petroleum products. During the year ended
30 June 2017, Oil and Gas Regulatory Authority (OGRA) granted license to the Company to establish an
Oil Marketing Company (OMC), subject to some conditions. On 31 May 2019, Oil and Gas Regulatory
Authority (OGRA) has granted permission to the Company to operate new storage facility at Sahiwal and
marketing of petroleum products in province of Punjab. On 20 January 2020, the Company has started
marketing and sale of petroleum products. On 21 February 2020, OGRA has granted permission to the
Company to apply for No Objection Certificates (NOCs) from concerned departments to setup petrol
pumps in Khyber Pakhtunkhwa. On 09 August 2021, OGRA has acknowledged the satisfactory
completion of oil storage facility at Nowshera, Khyber Pakhtunkhwa. On 13 January 2022, OGRA
extended / renewed the provisional license for setting up of an OMC upto 31 December 2023. On 16
March 2023, OGRA has granted permission to the Company to operate new storage facility at Nowshera
and marketing of petroleum products in the province of Khyber Pakhtunkhwa. On 21 December 2023,
OGRA has further extended / renewed the provisional license for setting up of an OMC upto 31 December
2025.

2. BASIS OF PREPARATION

2.1 These unconsolidated condensed interim financial statements have been prepared in accordance with
the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The
accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

·International Accounting Standard (IAS) 34, 'Interim Financial Reporting' issued by the International
Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and
·Provisions of and directives issued under the Companies Act, 2017.

Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements
of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

2.2 These unconsolidated condensed interim financial statements do not include all the information and
disclosures required in annual financial statements and should be read in conjunction with the annual
audited financial statements of the Company for the year ended 30 June 2023. These unconsolidated
condensed interim financial statements are un-audited, however, have been subjected to limited scope
review by the auditors and are being submitted to the shareholders as required by the Listed Companies
(Code of Corporate Governance) Regulations, 2019 and Section 237 of the Companies Act, 2017.

3. MATERIAL ACCOUNTING POLICY INFORMATION

The material accounting policy information and methods of computations adopted for the preparation
of these unconsolidated condensed interim financial statements are same as applied in the preparation
of the preceding audited annual published financial statements of the Company for the year ended 30
June 2023.

During the nine months period ended 31 March 2024, shareholders of the Company accorded approval
to sell investment property (land) measuring 01 kanal and 05 marlas situated at 22-A, Zafar Ali Road,
Lahore. Consequently, 'investment property' has been reclassified as 'non-current asset classified as held
for sale' in these unconsolidated condensed interim financial statements. Accounting policy for non-
current assets (or disposal groups) held for sale is detailed in note 3.2 to these unconsolidated condensed
interim financial statements.

Hi-Tech Lubricants Limited 11

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
3.1 Critical accounting estimates and judgments

The preparation of these unconsolidated condensed interim financial statements in conformity with the approved accounting
standards requires the use of certain critical accounting estimates. It also requires the 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.

During preparation of these unconsolidated condensed interim financial statements, the significant judgments made by the
management in applying the Company’s accounting policies and the key sources of estimation and uncertainty were the same
as those that applied in the preceding audited annual published financial statements of the Company for the year ended 30
June 2023.

3.2 Non-current assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered
principally through a sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount
and fair value less costs to sell.
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
4. LEASE LIABILITIES

Total lease liabilities 620,638,342 642,881,321

Less: Current portion shown under current liabilities 150,043,137 150,742,680
470,595,205 492,138,641
5. CONTINGENCIES AND COMMITMENTS

5.1 Contingencies
There is no significant change in the status of contingencies as disclosed in the preceding audited annual published financial
statements of the Company for the year ended 30 June 2023 except for the following:

5.1.1 On 30 May 2023, Deputy Commissioner Inland Revenue (DCIR) passed an assessment order under section 161 and section 205 of
the Income Tax Ordinance, 2001 for the tax year 2017 whereby a demand of Rupees 22.545 million including default surcharge
has been raised against the Company on account of non / short deduction of withholding tax in respect of certain payments. On
25 June 2023, the Company filed an appeal before Commissioner Inland Revenue (Appeals) [CIR(A)]. On 01 January 2024,
subsequent to the reporting period, CIR(A) granted partial relief to the Company and accepted the Company's stance in respect
of certain matters. Further, CIR(A) remanded back certain matters to assessing officer for verification of Company’s position.
However, the department has not yet initiated the remand back proceedings. The management, based on advise of tax advisor,
is confident of favorable outcome of the matter. Therefore, no provision has been recognized in these unconsolidated condensed
interim financial statements.
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
5.2 Commitments

5.2.1 For capital expenditures 42,044,776 46,143,062

5.2.2 Letters of credit for other than capital expenditures 44,704,444 49,166,475

6. FIXED ASSETS

Operating fixed assets (Note 6.1) 2,522,036,944 2,458,955,725

Capital work-in-progress (Note 6.2) 142,555,801 130,547,189
2,664,592,746 2,589,502,914

12 Hi-Tech Lubricants Limited

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
6.1 Operating fixed assets
Opening book value 2,458,955,725 2,459,192,488
Add: Cost of additions during the period / year (Note 6.1.1) 164,750,638 135,360,541
Add: Revaluation surplus recognised during the period / year - 52,220,750
Add: Book value of assets transferred from right-of-use assets during the
period / year (Note 7.2) 15,761,778 1,574,708
2,639,468,141 2,648,348,487
Less: Book value of deletions during the period / year (Note 6.1.2) 11,411,275 53,164,438
Less: Book value of assets transferred to investment property during the period / year - -
Less: Book value of assets written off during the period / year 6,075,596 -
2,621,981,270 2,595,184,049
Less: Depreciation charged during the period / year 99,944,326 136,228,324
Closing book value 2,522,036,944 2,458,955,725

6.1.1 Cost of additions during the period / year

Buildings on leasehold land 81,738,831 42,056,824
Machinery 612,550 4,000,035
Tanks and pipelines 34,620,807 3,409,167
Dispensing pumps 26,814,986 20,156,420
Furniture and fittings 1,960,722 879,250
Vehicles 6,847,755 50,562,795
Office equipment 1,288,647 2,282,272
Computers 10,866,340 12,013,778
164,750,638 135,360,541
6.1.2 Book value of deletions during the period / year
Cost:
Vehicles 16,063,197 60,003,353
Computers 4,232,095 1,713,776
20,295,292 61,717,129
Less: Accumulated depreciation 8,884,017 8,552,691
11,411,275 53,164,438
6.2 Capital work-in-progress
Civil works 45,313,305 44,199,846
Dispensing pumps 11,481,660 8,681,790
Advance against purchase of apartment 25,976,750 25,976,750
Tanks and pipelines 58,689,985 50,594,702
Mobilization advances 1,094,101 1,094,101
142,555,801 130,547,189
7. RIGHT-OF-USE ASSETS
Opening book value 605,121,153 555,744,577
Add: Cost of additions during the period / year (Note 7.1) 74,578,017 135,813,940
Add: Impact of lease modifications during the period / year 16,649,652 67,276,629
Less: Impact of lease terminations during the period / year - 25,059,314
Less: Book value of assets transferred to fixed assets during the period / year (Note 7.2) 15,761,778 1,574,708
Less: Depreciation expense for the period / year 106,190,687 127,079,971
Closing book value 574,396,357 605,121,153

Hi-Tech Lubricants Limited 13

 Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023

7.1 Cost of additions during the period / year Rupees Rupees

Land 72,485,095 18,557,113

Buildings 2,092,922 45,328,092
Vehicles - 71,928,735
74,578,017 135,813,940
7.2 Book value of assets transferred to fixed assets during the period / year
Vehicles 15,761,778 1,574,708

8. INTANGIBLE ASSETS - Computer software

Opening book value 3,981,524 6,657,720
Add: Cost of additions during the period / year - 1,500,000
Less: Amortization charged during the period / year 2,337,117 4,176,196
Closing book value 1,644,407 3,981,524
9. INVESTMENT IN SUBSIDIARY COMPANY - at cost
Hi-Tech Blending (Private) Limited - unquoted
130,000,060 (30 June 2023: 130,000,060) fully paid ordinary shares of Rupees 10 each
Equity held 100% (30 June 2023: 100%) 1,300,000,600 1,300,000,600

9.1. Investment in Hi-Tech Blending (Private) Limited includes 60 (30 June 2023: 60) shares in the name of nominees of the Company.
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
10. STOCK-IN-TRADE
Lubricants and parts (Note 10.1) 399,187,504 292,185,127
Less: Provision for slow moving and damaged inventory items 9,302,576 27,068,373
389,884,928 265,116,754
Petroleum products
- Stock in hand (Note 10.2) 232,127,837 139,978,203
- Stock in pipeline system (Note 10.3) 631,408,997 638,125,434
863,536,834 778,103,637
Dispensing pumps and other installations 43,570,033 59,701,394
1,296,991,795 1,102,921,785

10.1 This includes stock-in-transit of Rupees Nil (30 June 2023: Rupees Nil) and stock amounting to Rupees 219.010 million (30 June
2023: Rupees 70.612 million) lying at customs bonded warehouse.
10.2 This includes stock of petroleum products in possession of third parties as follows:
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
Askar Oil Services (Private) Limited 2,519,352 2,425,987
Be Energy Limited 3,417,967 36,668,049
Al-Rahim Trading Company (Private) Limited - 459,393
Gas and Oil Pakistan Limited 5,084,591 3,410,459
Karachi Hydrocorban Terminal Limited 5,694,449 4,756,350
Z.Y. & Co. Bulk Terminal (Private) Limited 6,351,242 -
23,067,601 47,720,238

14 Hi-Tech Lubricants Limited

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
10.3 This represents the Company’s share of pipeline stock of High Speed Diesel and Petroleum Motor Gasoline amounting to Rupees
429.819 million (30 June 2023: Rupees 469.131 million) and Rupees 201.589 million (30 June 2023: Rupees 168.995 million) held
by Pak-Arab Pipeline Company Limited.

11. NON-CURRENT ASSET CLASSIFIED AS HELD FOR SALE

On 27 October 2023, shareholders of the Company accorded approval to sell investment property (land) measuring 01 kanal and
05 marlas situated at 22-A, Zafar Ali Road, Lahore. The management of the Company anticipates that disposal will be completed
subsequent to the reporting period. Fair value less costs to sell is expected to be higher than the carrying amount of the related
asset.
(Un-Audited)
NINE MONTHS ENDED
31 March 31 March
2024 2023
Rupees Rupees
12. CASH GENERATED FROM / (USED IN) OPERATIONS
Profit/(Loss) before taxation 128,995,346 129,592,416

Adjustments for non-cash charges and other items:

Depreciation on operating fixed assets 99,944,332 99,025,857

Depreciation on right-of-use assets 106,190,687 92,626,073
Amortization on intangible assets 2,337,117 3,069,470
Amortization of deferred income - Government grant - (361,618)
Allowance for expected credit losses - 13,658,497
Loss/(Gain) on disposal of operating fixed assets 1,952,725 (6,996,788)
Dividend income (551,081,791) (283,275,077)
Profit on bank deposits and term deposit receipt (25,666,083) (21,489,215)
Interest income on short term loan to subsidiary company (69,761,165) (44,386,254)
Gain on disposal of short term investments (1,936,890) (189,090)
Unrealized gain on remeasurement of investments carried at fair value through profit or loss - net (4,150,041) (56,560)
Fixed assets written off 6,075,596 -
Credit balances written back (201,554) -
Debit Balance written off 84,068 -
Gain on foreign remittance - (30,797,348)
Exchange loss - net - 25,082,103
Finance cost 401,184,234 308,834,989
Working capital changes (Note 12.1) (222,692,687) 309,841,205
(128,726,106) 594,178,660

12.1 Working capital changes

(Increase) / decrease in current assets:

Stock-in-trade (194,070,010) 1,843,214,472

Trade debts (240,232,198) (172,996,265)
Loans and advances (76,843,166) (268,195,938)
Short term deposits and prepayments (42,755,823) (34,522,320)
Other receivables (110,600,525) 254,441,266
(664,501,722) 1,621,941,215
Increase / (decrease) in trade and other payables 441,809,035 (1,312,100,010)
(222,692,687) 309,841,205

Hi-Tech Lubricants Limited 15

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
13. TRANSACTIONS WITH RELATED PARTIES
Related parties of the Company comprise of subsidiary company, associated undertakings, other related

UN-AUDITED
NATURE OF NINE MONTHS ENDED QUARTER ENDED
TRANSACTIONS 31 March 31 March 31 March 31 March
2024 2023 2024 2023
-----------------------------------------Rupees-----------------------------------------
i. Transactions
Subsidiary company
Hi-Tech Blending Sale of lubricants 1,122,352 1,755,955 - 597,487
(Private) Limited Purchase of 4,421,275,802 3,272,698,687 1,737,464,781 2,018,896,258
Dividend received 5,200,002,400 260,000,120 4,940,002,280 -
Lease rentals paid 2,250,000 2,250,000 750,000 750,000
Short term loan 112,800,000 500,000,000 - -
Short term loan repaid 598,300,000 - 403,800,000 -
Interest received 102,001,081 44,386,254 26,422,760 35,925,870

Associated company

MAS Associates Share of common 1,534,284 1,008,395 857,063 370,608

Other related parties

SK Enmove Co., Purchase of 554,662,456 279,464,188 243,702,222 129,787,260

Dividend paid - 1,986,660 - -
Incentive 247,122,002 181,400,000 69,525,001 -
Provident fund trust Contribution 22,319,023 19,366,551 8,424,168 6,467,154
Key management Remuneration 323,270,612 333,062,314 98,031,337 104,670,990
Sabra Hamida TrustDonations 13,500,000 13,500,000 4,500,000 4,500,000

Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
ii. Period / year end balances

Hi-Tech Blending (Private) Limited - Subsidiary company:

Investment 1,300,000,600 1,300,000,600

Payable against purchases 301,920,639 157,782,083
Receivable against short term loan - 485,500,000
Interest receivable on short term loan 13,715,072 45,954,988

Associated company

Receivable/(Payable) from MAS Associates (Private) Limited 320,069 314,409

Other related parties:

Receivable from SK Enmove Co., Ltd 69,525,001 90,000,000

Payable to SK Enmove Co., Ltd 129,440,047 -
Payable to employees' provident fund trust 5,706,400 4,128,882
Remuneration payable to directors 6,263,167 -

16 Hi-Tech Lubricants Limited

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
14. FAIR VALUE MEASUREMENTS - NON-FINANCIAL INSTRUMENTS

(i) Fair value hierarchy

Judgments and estimates are made in determining the fair value of non-financial assets that are recognized
and measured at fair value in these financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Company has classified its non-financial assets into the following three
levels.

At 31 March 2024 Level 1 Level 2 Level 3 Total

- - - - - - - - - - - - - - Rupees - - - - - - - - - - - -

Freehold land - 1,276,357,250 - 1,276,357,250

- 1,276,357,250 - 1,276,357,250

At 30 June 2023 Level 1 Level 2 Level 3 Total

- - - - - - - - - - - - - - Rupees - - - - - - - - - - - -

Freehold land - 1,276,357,250 - 1,276,357,250

Investment property - 135,000,000 - 135,000,000
- 1,411,357,250 - 1,411,357,250

The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of
the reporting period.

There were no transfers between levels 1 and 2 for recurring fair value measurements during the period ended
31 March 2024. Further, there was no transfer in and out of level 3 measurements.

(ii) Valuation techniques used to determine level 2 fair values

The Company obtains independent valuation for its freehold land (classified as fixed assets) at least annually. At
the end of reporting period, the management updates the assessment of the fair value of property, taking into
account the most recent independent valuation. The management determines a property’s value within a
range of reasonable fair value estimate. The best evidence of fair value is current prices in an active market for
similar land.

Valuation processes

The Company engages external, independent and qualified valuer to determine the fair value of the
Company’s freehold land at the end of every financial year. Most recent valuation of freehold land was carried
out on 30 June 2023 by Anderson Consulting (Private) Limited, an independent valuer.

Hi-Tech Lubricants Limited 17

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
15. RECOGNIZED FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS
(i) Fair value hierarchy

Judgments and estimates are made in determining the fair values of the financial instruments that are recognised and
measured at fair value in these financial statements. To provide an indication about the reliability of the inputs used in
determining fair value, the Company has classified its financial instruments into the following three levels. An
explanation of each level follows underneath the table.

Recurring fair value measurements at 31 March 2024 Level 1 Level 2 Level 3 Total
---------------------------- Rupees ----------------------
Financial assets

Financial assets at fair value through profit or loss 221,198,641 - - 221,198,641

Recurring fair value measurements at 30 June 2023 Level 1 Level 2 Level 3 Total
---------------------------- Rupees ----------------------
Financial assets

Financial assets at fair value through profit or loss 222,582,946 - - 222,582,946

The above table does not include fair value information for financial assets and financial liabilities not measured at fair
value if the carrying amounts are a reasonable approximation of fair value. Due to short term nature, carrying amounts
of certain financial assets and financial liabilities are considered to be the same as their fair value. For the majority of
the non-current receivables, the fair values are also not significantly different to their carrying amounts.

There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. Further there was
no transfer in and out of level 3 measurements.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity
securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for
financial assets held by the Company is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as

little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities.

(ii) Valuation techniques used to determine fair values

Specific valuation technique used to value financial instruments is the use of quoted market prices on Pakistan Stock
Exchange and for funds, Net Asset Value (NAV) of respective Asset Management Company.

18 Hi-Tech Lubricants Limited

 16. SEGMENT INFORMATION

The Company has two reportable segments. The following summary describes the operation in each of the Company's reportable segments:
Lubricants Purchase and sale of lubricants, parts and rendering of services.
Petroleum products Marketing and sale of petroleum products.
(Un-Audited)

LUBRICANTS PETROLEUM PRODUCTS UNALLOCATED TOTAL - COMPANY

31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March

2024 2023 2024 2023 2024 2023 2024 2023
( - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - RUPEES - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - )

Revenue from contracts with customers - net 5,570,845,548 5,774,672,571 10,132,034,554 5,739,848,792 - - 15,702,880,102 11,514,521,363
Cost of sales (4,965,433,730) (4,692,765,817) (9,859,068,411) (5,580,681,220) - - (14,824,502,141) (10,273,447,037)
Gross profit 605,411,818 1,081,906,754 272,966,143 159,167,573 - - 878,377,961 1,241,074,326
Distribution cost (421,315,956) (446,225,411) (284,100,969) (222,707,603) - - (705,416,925) (668,933,014)
Administrative expenses (517,043,438) (485,933,550) (16,433,634) (14,732,412) - - (533,477,072) (500,665,962)
Other expenses 6,619,893 (49,743,211) (25,739,880) (7,006,406) - - (19,119,987) (56,749,617)
(931,739,500) (981,902,173) (326,274,484) (244,446,420) - - (1,258,013,984) (1,226,348,593)
Other income 844,939,010 348,124,670 64,876,593 75,577,002 - - 909,815,603 423,701,672
Profit / (loss) from operations 518,611,328 448,129,251 11,568,252 (9,701,846) - - 530,179,580 438,427,405
Finance cost (306,669,577) (248,738,076) (94,514,657) (60,096,913) - - (401,184,234) (308,834,989)
(Loss) / profit before taxation 211,941,750 199,391,175 (82,946,404) (69,798,759) - - 128,995,346 129,592,416
Taxation - - - - (70,068,182) (8,142,912) (70,068,182) (8,142,912)
Interim Financial Statements (Un-audited)

(Loss) / profit after taxation 211,941,750 199,391,175 (82,946,404) (69,798,759) (70,068,182) (8,142,912) 58,927,164 121,449,504

16.1 Reconciliation of reportable segment assets and liabilities:

LUBRICANTS PETROLEUM PRODUCTS TOTAL - COMPANY

-------------------------------Rupees---------------------------- -----------Rupees-------
Selected Notes To The Unconsolidated Condensed

Un-Audited Audited Un-Audited Audited Un-Audited Audited

31 March 30 June 31 March 30 June 31 March 30 June
2024 2023 2024 2023 2024 2023

Total assets for reportable segments 3,196,543,201 2,770,492,791 4,178,262,123 3,947,956,772 7,374,805,324 6,718,449,563
For The Quarter and Nine Months Period Ended 31 March 2024

Unallocated assets 318,040,872 676,568,277

Total assets as per unconsolidated condensed interim statement of financial position 7,692,846,196 7,395,017,840

Total liabilities for reportable segments 1,196,171,839 456,486,909 782,222,788 233,897,003 1,978,394,627 690,383,912

Unallocated liabilities 1,832,579,021 2,881,688,544

Total liabilities as per unconsolidated condensed interim statement of financial position 3,810,973,648 3,572,072,456

Hi-Tech Lubricants Limited 19

16.2 All of the sales of the Company relates to customers in Pakistan.

16.3 All non-current assets of the Company as at the reporting dates are located in Pakistan.
 Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
17. DISCLOSURES BY COMPANY LISTED ON ISLAMIC INDEX

Description

i) Loans / advances obtained as per Islamic mode:

Loans - -
Advances 48,344,576 56,684,948

ii) Shariah complaint bank deposits / bank balances:

Bank balances 20,870,165 31,298,524

(Un-Audited)
NINE MONTHS ENDED
31 March 31 March
2024 2023
Rupees Rupees

iii) Profit earned from shariah complaint bank deposits / bank balances - -
Profit on bank deposits and term deposit receipts - -

iv) Mark up paid on Islamic mode of financing - -

v) Revenue earned from a shariah complaint business segment 15,702,880,102 11,514,521,363

vi) Gain / (loss) or dividend earned from shariah complaint investments:

Dividend income 635,853 220,784
Gain on sale of investments - -
Loss on remeasurement of investment at fair value through profit or loss - (132,530)

vii) Exchange gain / (loss) 9,819,286 (25,082,103)

viii) Profits earned or interest paid on any conventional loan or advance:

Profit earned (69,761,165) (44,386,254)
Interest paid on loans 230,644,945 271,217,107

ix) Relationship with shariah compliant banks

Name Relationship as at reporting date

Al-Baraka Bank (Pakistan) Limited Bank balance

Meezan Bank Limited Bank balance
Dubai Islamic Bank Pakistan Limited Bank balance
Faysal Bank Limited Bank balance

20 Hi-Tech Lubricants Limited

 Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
18. UTILIZATION OF THE PROCEEDS OF THE INITIAL PUBLIC OFFER (IPO)
During the year ended 30 June 2016, the Company made an Initial Public Offer (IPO) through issue of 29,001,000 ordinary shares of Rupees
10 each at a price of Rupees 62.50 per share determined through book building process. Out of the total issue of 29,001,000 ordinary
shares, 21,750,500 shares were subscribed through book building by High Net Worth Individuals and Institutional Investors, while the
remaining 7,250,500 ordinary shares were subscribed by the General Public and the shares were duly allotted on 18 February 2016. On 01
March 2016, Pakistan Stock Exchange Limited approved the Company’s application for formal listing of ordinary shares and trading of
shares started on 03 March 2016.

Till 30 June 2017, the Company utilized the proceeds of the initial public offer of 29,001,000 ordinary shares for the purposes mentioned
under heading 5.5 ‘Expansion Plan’ in prospectus dated 28 December 2015, as per the following detail:

Total amount
Total amount
Purposes Mentioned Under Heading 5.5 ‘Expansion Plan’ In Prospectus Dated 28 December 2015 utilized till 30 June
(Rupees)
2017 (Rupees)
Investment in HTLL
Land 470,000,000 60,618,100
Building 128,000,000 12,486,445
Plant, machinery and equipment 139,000,000 2,719,201
Pre-operating costs 33,000,000 249,630
Working capital 842,562,500 739,126,208
1,612,562,500 815,199,584
Investment in 100% owned subsidiary
Additional filling lines for blending plant, Hi-Tech Blending (Private) Limited 200,000,000 -
Total 1,812,562,500 (B) 815,199,584

IPO proceeds (A) 1,812,562,500

Amount un-utilized (A – B) 997,362,916

As stated in the prospectus dated 28 December 2015, the Company planned to offer state of the art retail outlets across Pakistan with
multitude of unique services and also planned to install additional filling lines at the blending plant of its subsidiary. The plan of the year 2015-
16 covered 37 grand outlets openings in 11 major cities of Pakistan including Lahore, Gujranwala, Sialkot, Faisalabad, Multan, Islamabad,
Rawalpindi, Karachi and Hyderabad. Over a period of 5 years, the Company planned to open 75 retail outlets (including 67 rented) across
16 major cities of Pakistan. As per quarterly progress report number 06 dated 14 July 2017, the Company informed all stakeholders the
progress on implementation of project: Expansion through retail outlet: 1 owned service center under regulatory approval and out of the 10
rented service centers, 1 is operational, 3 are approved and under construction, 3 are under regulatory approvals and 3 are under
negotiations. Accurate, effective and timely implementation of the above plans of the Company became a big challenge for the
Company due to expensive lands and properties at key locations in almost all the cities for express service centers. Hence, the Company
planned for incorporation of express centers into its fuel stations to be established under the umbrella of Oil Marketing Company (OMC)
Project of the Company. In this regard, the Company obtained a financial feasibility report from KPMG Taseer Hadi & Co., Chartered
Accountants regarding investment in OMC Project. In view of successful fulfillment of initial mandatory requirements of Oil and Gas
Regulatory Authority (OGRA) for setting up of an OMC and future prospects of OMC in current international scenario as prospected under
financial feasibility report, the shareholders of the Company in their 9th Annual General Meeting held on 29 September 2017 approved
diversion and utilization of un-utilized IPO funds from HTL Express Centers and wholly owned subsidiary company to OMC Project of the
Company keeping in view overall growth of the Company and ultimate benefit to all shareholders and stakeholders of the Company.
The Project envisages setting up 360 retail outlets across Punjab, Sindh and Khyber Pakhtunkhwa Provinces of Pakistan. The fuel stations will
offer full range of services such as general store, tyre shop and a car shop amongst others. To support sales, the Company plans to invest in
building storage capacities of 25,735 metric tons (Mogas and HSD) across the country over a period of 7 years.
During the year ended 30 June 2017, OGRA granted license to the Company to establish an Oil Marketing Company (OMC), subject to
some conditions. During the year ended 30 June 2018, with reference to OMC Project of the Company, Oil and Gas Regulatory Authority
(OGRA) has granted permission to proceed to apply/acquire No Objection Certificates (NOCs) from concerned departments including
District Coordination Officer (DCO) for setting up of upto 26 retail outlets in Punjab Province with instructions that retail sales through petrol
pumps can only be started after completion of necessary Storage Infrastructure, 3rd Party Inspector Report confirming that storage/depot
meets OGRA’s notified Technical Standards and OGRA’s approval.

During the year ended 30 June 2018, the Company completed its oil storage site at Sahiwal. The Company also purchased land in
Nowshera for oil storage site under OMC Project.

Hi-Tech Lubricants Limited 21

 Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024

On 31 May 2019, Oil and Gas Regulatory Authority (OGRA) granted permission to the Company to operate new oil storage facility at Sahiwal
and marketing of petroleum products in the Province of Punjab. The Company signed agreements with various dealers for setting up petrol
pumps under the OMC Project and also started construction of another storage site at Nowshera, Khyber Pakhtunkhwa.

During the year ended on 30 June 2020, the Company started its OMC operations and expediently worked on completion of its Nowshera
oil storage. During the year ended 30 June 2021, Company completed its oil storage at Nowshera. On 09 August 2021, OGRA
acknowledged the satisfactory completion of Nowshera oil storage based on third party inspection report. During the year ended 30 June
2022, the Company has started work on new oil storage facility at Shikarpur. On 16 March 2023, OGRA has granted permission to the
Company to operate new storage facility at Nowshehra and marketing of petroleum products in the province of Khyber Pakhtunkhwa.
Currently, the Company has eight operational HTL Express Centers, four in Lahore, three in Karachi and one in Rawalpindi. Further, the
Company has forty one retail outlets operational for sale of petroleum products as on 31 March 2024. Detail of payments out of IPO
proceeds during the nine months period ended 31 March 2024 is as follows:

Rupees

Un-utilized IPO proceeds as at 01 July 2023 395,898,356

Add: Profit on term deposit receipt 27,699,244

Add: Profit on bank deposits 1,612,487
Add: Dividend on investment in mutual funds 30,313,780

Add: Gain on disposal of investment in mutual funds 2,859,543

Less: Unrealised loss on investment in mutual funds (980,726)
Less: Payments made relating to OMC Project (166,100,021)
Less: Withholding tax on profit (241,873)
Less: Withholding tax on dividend from mutual funds (4,547,067)
Less: Withholding tax on profit on term deposit receipt (4,154,887)
Less: Withholding tax on disposal of mutual funds (86,560)
Less: Bank charges (53)

Un-utilized IPO proceeds as at 31 March 2024 282,272,223

The un-utilized proceeds of the public offer have been kept by the Company in the shape of bank balances, term deposit receipts and
mutual funds.

19. FINANCIAL RISK MANAGEMENT

The Company's financial risk management objectives and policies are consistent with those disclosed in the preceding audited annual
financial statements of the Company for the year ended 30 June 2023.

20. CORRESPONDING FIGURES

In order to comply with the requirements of International Accounting Standard (IAS) 34 "Interim Financial Reporting", the unconsolidated
condensed interim statement of financial position and unconsolidated condensed interim statement of changes in equity have been
compared with the balances of annual audited financial statements of preceding financial year, whereas, the unconsolidated condensed
interim statement of profit or loss, unconsolidated condensed interim statement of comprehensive income and unconsolidated
condensed interim statement of cash flows have been compared with the balances of comparable period of immediately preceding
financial year.

22 Hi-Tech Lubricants Limited

Selected Notes To The Unconsolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
21. DATE OF AUTHORIZATION FOR ISSUE

These unconsolidated condensed interim financial statements were authorized for issue on April 29, 2024 by the Board of
Directors of the Company.

22. GENERAL

Figures have been rounded off to nearest of Rupee, unless otherwise stated.

Chief Executive Director Chief Financial Officer

Hi-Tech Lubricants Limited 23

 HI-TECH LUBRICANTS LIMITED
CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2024 (Un-audited)

24 Hi-Tech Lubricants Limited

Consolidated Condensed Interim
Statement Of Financial Position
As At 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Note Rupees Rupees

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES
Authorized share capital
150,000,000 (30 June 2023: 150,000,000)
ordinary shares of Rupees 10 each 1,500,000,000 1,500,000,000
Issued, subscribed and paid-up share capital
139,204,800 (30 June 2023: 139,204,800) ordinary shares of Rs.10 each 1,392,048,000 1,392,048,000
Reserves 4,334,057,203 4,651,660,024
Total equity 5,726,105,203 6,043,708,024

LIABILITIES

NON-CURRENT LIABILITIES

Long term financing 486,392,564 596,988,256

Lease liabilities 4 463,245,295 487,911,254
Long term deposits 18,500,000 16,500,000
Deferred income tax liability - net 385,574,850 321,124,507
1,353,712,709 1,422,524,017

CURRENT LIABILITIES

Trade and other payables 2,242,421,240 1,926,226,196

Accrued mark-up 76,320,159 124,519,872
Short term borrowings 2,168,335,060 2,406,866,985
Current portion of non-current liabilities 289,002,880 233,041,322
Unclaimed dividend 5,689,417 5,830,744
4,781,768,756 4,696,485,119
Total liabilities 6,135,481,465 6,119,009,136

CONTINGENCIES AND COMMITMENTS 5

TOTAL EQUITY AND LIABILITIES 11,861,586,668 12,162,717,160

The annexed notes form an integral part of these consolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

Hi-Tech Lubricants Limited 25

Consolidated Condensed Interim
Statement Of Financial Position
As At 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Note Rupees Rupees

ASSETS
NON-CURRENT ASSETS
Fixed assets 6 6,479,088,306 6,439,774,188
Right-of-use assets 7 598,072,921 635,782,031
Intangible assets 8 13,315,994 20,260,771
Investment property - 135,000,000
Long term security deposits 62,156,289 63,700,448
Long term loans to employees 2,284,477 2,985,100
7,154,917,987 7,297,502,538

CURRENT ASSETS

Stores 92,579,328 129,169,374

Stock-in-trade 9 2,538,224,447 3,210,734,081
Trade debts 501,317,423 233,969,194
Loans and advances 243,019,830 342,094,549
Short term deposits and prepayments 79,821,915 40,379,947
Other receivables 298,908,523 213,788,973
Advance income tax - net of provision for taxation 233,534,083 210,385,009
Accrued interest 827,060 7,032,985
Short term investments 221,198,641 222,582,946
Cash and bank balances 362,237,431 255,077,564
4,571,668,681 4,865,214,622
Non-current asset classified as held for sale 10 135,000,000 -
4,706,668,681 4,865,214,622

TOTAL ASSETS 11,861,586,668 12,162,717,160

Chief Executive Director Chief Financial Officer

26 Hi-Tech Lubricants Limited

Consolidated Condensed Interim
Statement of Profit or Loss (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024

NINE MONTHS ENDED QUARTER ENDED

31 March 31 March 31 March 31 March
2024 2023 2024 2023
Rupees Rupees Rupees Rupees

GROSS REVENUE FROM CONTRACTS WITH CUSTOMERS 19,130,426,232 14,381,076,999 7,783,907,872 5,677,643,939
Discounts (488,535,846) (270,839,679) (147,014,601) (121,228,288)
Sales tax (2,660,728,714) (2,595,715,957) (988,761,569) (1,412,249,167)
NET REVENUE FROM CONTRACTS WITH CUSTOMERS 15,981,161,672 11,514,521,363 6,648,131,702 4,144,166,484
COST OF SALES (14,408,069,796) (9,816,490,564) (6,000,147,466) (3,217,059,889)
GROSS PROFIT 1,573,091,876 1,698,030,799 647,984,236 927,106,595

DISTRIBUTION COST (744,516,893) (689,406,055) (401,366,999) (307,022,558)

ADMINISTRATIVE EXPENSES (677,185,791) (625,033,224) (237,292,260) (209,376,408)
OTHER EXPENSES (47,895,168) (244,372,468) (2,614,907) (40,525,538)
(1,469,597,852) (1,558,811,747) (641,274,166) (556,924,504)
OTHER INCOME 319,975,932 119,333,049 226,396,590 56,455,371
PROFIT FROM OPERATIONS 423,469,956 258,552,101 233,106,660 426,637,462
FINANCE COST (578,706,829) (466,422,752) (167,673,706) (141,176,468)

PROFIT / (LOSS) BEFORE TAXATION (155,236,873) (207,870,651) 65,432,954 285,460,994

TAXATION (162,365,948) 28,077,979 (33,146,268) (95,877,223)
PROFIT / (LOSS) AFTER TAXATION (317,602,821) (179,792,672) 32,286,686 189,583,771

PROFIT / (LOSS) PER SHARE - BASIC AND DILUTED (2.28) (1.29) 0.23 1.36

The annexed notes form an integral part of these consolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

Hi-Tech Lubricants Limited 27

Consolidated Condensed Interim
Statement of Comprehensive Income (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024

NINE MONTHS ENDED QUARTER ENDED

31 March 31 March 31 March 31 March
2024 2023 2024 2023
Rupees Rupees Rupees Rupees

PROFIT / (LOSS) AFTER TAXATION (317,602,821) (179,792,672) 32,286,686 189,583,771

OTHER COMPREHENSIVE INCOME:

Items that will not be reclassified to profit or loss - - - -

Items that may be reclassified subsequently to profit or loss - - - -

Other comprehensive income for the period - - - -

TOTAL COMPREHENSIVE PROFIT / (LOSS) FOR THE PERIOD (317,602,821) (179,792,672) 32,286,686 189,583,771

The annexed notes form an integral part of these consolidated condensed interim financial statements.

28 Hi-Tech Lubricants Limited

 Consolidated Condensed Interim
Statement of Changes in Equity (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024

RESERVES
CAPITAL RESERVES REVENUE RESERVE
SHARE CAPITAL TOTAL EQUITY
SURPLUS ON TOTAL RESERVES
UN-APPROPRIATED
SHARE PREMIUM REVALUATION OF SUB TOTAL
PROFIT
FREEHOLD LAND
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Rupees - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Balance as at 30 June 2022 - audited 1,392,048,000 1,441,697,946 1,783,101,998 3,224,799,944 1,637,559,790 4,862,359,734 6,254,407,734
Transactions with owners:
Final dividend for the year ended 30 June 2022 @ Rupees 2.00 per
- - - - (278,409,600) (278,409,600) (278,409,600)
share
Loss for the nine months period ended 31 March 2023 - - - - (179,792,672) (179,792,672) (179,792,672)
Other comprehensive income for the nine months period ended 31 - - - - - - -
March 2023
Total comprehensive loss for the nine months period ended 31 March
2023 - - - - (179,792,672) (179,792,672) (179,792,672)
Balance as at 31 March 2023 - un audited 1,392,048,000 1,441,697,946 1,783,101,998 3,224,799,944 1,179,357,518 4,404,157,462 5,796,205,462

Balance as at 30 June 2023 - audited 1,392,048,000 1,441,697,946 2,097,794,248 3,539,492,194 1,112,167,830 4,651,660,024 6,043,708,024
Transactions with owners:
Loss for the nine months period ended 31 March 2024 - - - - (317,602,821) (317,602,821) (317,602,821)
Other comprehensive income for the nine months period ended 31 - - - - - - -
March 2024
Total comprehensive loss for the nine months period ended 31 March
2024 - - - - (317,602,821) (317,602,821) (317,602,821)
Balance as at 31 March 2024 - un audited 1,392,048,000 1,441,697,946 2,097,794,248 3,539,492,194 794,565,009 4,334,057,203 5,726,105,203

The annexed notes form an integral part of these consolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

Hi-Tech Lubricants Limited 29

Consolidated Condensed Interim
Statement of Cash Flows (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
NINE MONTHS ENDED
31 March 31 March
2024 2023
Note Rupees Rupees

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from / (Used in) operations 11 1,282,512,104 221,071,418

Finance cost paid (626,906,542) (466,162,143)

Income tax paid (121,064,679) (133,904,328)
Net increase in long term loans to employees (233,543) (3,369,478)
Net increase in long term security deposits 5,619,962 20,475,665
Net increase/ (decrease) in long term deposits 2,000,000 (2,000,000)
Net cash used in operating activities 541,927,302 (363,888,866)

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on operating fixed assets (111,872,992) (378,208,277)

Capital expenditure on intangible assets - (188,784)
Initial direct cost incurred on right-of-use assets - (5,313,999)
Proceeds from disposal of operating fixed assets 120,000 12,869,660
Short term investments made (20,428,766) (9,279,384)
Short term investments disposed of 27,900,000 -
Dividends received 31,081,551 23,274,957
Profit on bank deposits and term deposit receipts received 31,872,008 12,961,519
Net cash used in investing activities (41,328,199) (343,884,308)

CASH FLOWS FROM FINANCING ACTIVITIES

Short term borrowings - net (238,531,925) 612,976,242

Dividend paid (141,327) (278,186,484)
Proceeds from long term financing - 97,417,000
Repayment of long term financing (46,522,157) (54,702,972)
Repayment of lease liabilities (108,243,827) (102,878,298)
Net cash from financing activities (393,439,236) 274,625,488
Net (decrease) / increase in cash and cash equivalents 107,159,867 (433,147,686)
Cash and cash equivalents at beginning of the period 255,077,564 660,429,600

Cash and cash equivalents at end of the period 362,237,431 227,281,914

The annexed notes form an integral part of these consolidated condensed interim financial statements.

Chief Executive Director Chief Financial Officer

30 Hi-Tech Lubricants Limited

 Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
1. THE GROUP AND ITS OPERATIONS
The Group consists of:
Holding Company
·Hi-Tech Lubricants Limited
Subsidiary Company
·Hi-Tech Blending (Private) Limited
1.1 Hi-Tech Lubricants Limited
Hi-Tech Lubricants Limited (“the Company”) was incorporated under the repealed Companies Ordinance, 1984 (Now Companies Act, 2017)
and listed on Pakistan Stock Exchange Limited. The registered office of the Company is situated at 1-A, Danepur Road, GOR-1, Lahore. The
principal activity of the Company is to procure and distribute lubricants and petroleum products. During the year ended 30 June 2017, Oil and
Gas Regulatory Authority (OGRA) granted license to the Company to establish an Oil Marketing Company (OMC), subject to some conditions.
On 31 May 2019, Oil and Gas Regulatory Authority (OGRA) has granted permission to the Company to operate new storage facility at Sahiwal
and marketing of petroleum products in province of Punjab. On 20 January 2020, the Company has started marketing and sale of petroleum
products. On 21 February 2020, OGRA has granted permission to the Company to apply for No Objection Certificates (NOCs) from concerned
departments to setup petrol pumps in Khyber Pakhtunkhwa. On 09 August 2021, OGRA has acknowledged the satisfactory completion of oil
storage facility at Nowshera, Khyber Pakhtunkhwa. On 13 January 2022, OGRA extended / renewed the provisional license for setting up of an
OMC upto 31 December 2023. On 16 March 2023, OGRA has granted permission to the Company to operate new storage facility at
Nowshera and marketing of petroleum products in the province of Khyber Pakhtunkhwa. On 21 December 2023, OGRA has further extended /
renewed the provisional license for setting of an OMC upto 31 December 2025.
1.2 Hi-Tech Blending (Private) Limited
Hi-Tech Blending (Private) Limited (“the Subsidiary Company”) was incorporated in Pakistan as a private company limited by shares on 13
March 2014 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The principal activity of the Subsidiary Company is
to construct, own and operate lubricating oil blending plant. The registered office of the Subsidiary Company is situated at 1-A, Danepur Road,
GOR-1, Lahore. The Subsidiary Company is a wholly owned subsidiary of Hi-Tech Lubricants Limited.
2. BASIS OF PREPARATION
2.1 These consolidated condensed interim financial statements have been prepared in accordance with the accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for
interim financial reporting comprise of:
·International Accounting Standard 34: 'Interim Financial Reporting' (IAS 34), issued by the International Accounting Standards Board (IASB)
as notified under the Companies Act, 2017; and
·Provisions of and directives issued under the Companies Act, 2017.
Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34, the provisions of and
directives issued under the Companies Act, 2017 have been followed.
2.2 These consolidated condensed interim financial statements do not include all the information and disclosures required in annual
financial statements and should be read in conjunction with the annual audited financial statements of the Group for the year ended 30
June 2023. These consolidated condensed interim financial statements are un-audited and are being submitted to the shareholders as
required by the Listed Companies (Code of Corporate Governance) Regulations, 2019 and Section 237 of the Companies Act, 2017.
3. MATERIAL ACCOUNTING POLICY INFORMATION
The material accounting policy information and methods of computations adopted for the preparation of these consolidated condensed
interim financial statements are same as applied in the preparation of the preceding audited annual published financial statements of the
Company for the year ended 30 June 2023.
During the nine months period ended 31 March 2024, shareholders of the Holding Company accorded approval to sell investment property
(land) measuring 01 kanal and 05 marlas situated at 22-A, Zafar Ali Road, Lahore. Consequently, 'investment property' has been reclassified as
'non-current asset classified as held for sale' in these consolidated condensed interim financial statements. Accounting policy for non-current
assets (or disposal groups) held for sale is detailed in note 3.2 to these consolidated condensed interim financial statements.
3.1 Critical accounting estimates and judgments
The preparation of these consolidated condensed interim financial statements in conformity with the approved accounting standards
requires the use of certain critical accounting estimates. It also requires the management to exercise its judgment in the process of applying
the Holding 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.
During preparation of these consolidated condensed interim financial statements, the significant judgments made by the management in
applying the Holding Company's accounting policies and the key sources of estimation and uncertainty were the same as those that applied
in the preceding audited annual published financial statements of the Company for the year ended 30 June 2023.
3.2 Critical accounting estimates and judgments
Non-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a
sale transaction and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.

Hi-Tech Lubricants Limited 31

Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
4. LEASE LIABILITIES
Total lease liabilities 629,439,565 662,217,503
Less: Current portion shown under current liabilities 166,194,270 174,306,249
463,245,295 487,911,254
5. CONTINGENCIES AND COMMITMENTS
5.1 Contingencies
There is no significant change in the status of contingencies as disclosed in the preceding audited annual published financial
statements of the Group for the year ended 30 June 2023 except for the following:
5.1.1 On 30 May 2023, Deputy Commissioner Inland Revenue (DCIR) passed an assessment order under section 161 and section 205 of the
Income Tax Ordinance, 2001 for the tax year 2017 whereby a demand of Rupees 22.545 million including default surcharge has been
raised against the Company on account of non / short deduction of withholding tax in respect of certain payments. On 25 June 2023,
the Company filed an appeal before Commissioner Inland Revenue (Appeals) [CIR(A)]. On 01 January 2024, subsequent to the
reporting period, CIR(A) granted partial relief to the Company and accepted the Company's stance in respect of certain matters.
Further, CIR(A) remanded back certain matters to assessing officer for verification of Company’s position. However, the department has
not yet initiated the remand back proceedings. The management, based on advise of tax advisor, is confident of favorable outcome
of the matter. Therefore, no provision has been recognized in these consolidated condensed interim financial statements.

Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
5.2 Commitments
5.2.1 Contracts for capital expenditures 42,044,776 46,143,062

5.2.2 Letters of credit other than for capital expenditures 697,731,244 493,096,138

6. FIXED ASSETS
Operating fixed assets:
Owned (Note 6.1) 6,336,532,505 6,309,226,999

Capital work-in-progress (Note 6.2) 142,555,801 130,547,189

6,479,088,306 6,439,774,188
6.1 Operating fixed assets – owned
Opening book value 6,309,226,999 5,716,441,584

Add: Cost of additions during the period / year (Note 6.1.1) 237,851,052 599,815,422
Add: Revaluation surplus recognised during the period / year - 314,692,250

Add: Book value of assets transferred from right-of-use of assets during the period / year (Note 7.2) 15,761,770 1,574,708
6,562,839,821 6,632,523,964
Less: Book value of deletions during the period / year (Note 6.1.2) 11,489,541 53,189,599
Less: book value of assets written off during the period / year 6,075,596 -
6,545,274,685 6,579,334,365
Less: Depreciation charged during the period / year 208,742,180 270,107,366
Closing book value 6,336,532,505 6,309,226,999

32 Hi-Tech Lubricants Limited

 Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees
6.1.1 Cost of additions during the period / year
Buildings on freehold land - 120,363,492
Buildings on leasehold land 81,738,831 42,056,824
Machinery 29,542,943 286,908,016
Tanks and Pipeline 34,620,807 3,409,167
Dispensing Pumps 26,814,986 20,156,420
Electric Installation - 45,183,722
Moulds 42,190,441 12,667,000
Furniture and fittings 1,960,722 1,242,535
Vehicles 6,847,755 51,157,053
Office equipment 2,123,307 3,571,830
Computers 12,011,260 13,099,363
237,851,052 599,815,422
6.1.2 Book value of deletions during the period / year
Cost:
Building on freehold Land - 60,066,853
Building on Leasehold Land - 1,789,076
Vehicles 16,063,197 -
Computers 4,461,095 -
Less: Accumulated depreciation 9,034,751 8,666,330
11,489,541 53,189,599
6.2 Capital work-in-progress
Civil works 45,313,305 44,199,846
Tanks and Pipelines 58,689,985 50,594,702
Dispensing pumps 11,481,660 8,681,790
Advance for purchase of apartment 25,976,750 25,976,750
Mobilization advances 1,094,101 1,094,101
142,555,801 130,547,189
7 RIGHT-OF-USE ASSETS
Opening book value 635,782,031 590,982,038
Add: Additions during the period / year (Note 7.1) 74,578,017 141,543,890
Add : Impact of lease modifications during the period / year 16,649,652 67,276,629
Less: Impact of lease terminations during the period / year - 25,059,314
Less: Book value of assets transferred to fixed assets - owned during the period / year (Note 7.2) 15,761,778 1,574,708
Less: Depreciation expense for the period / year 113,175,001 137,386,504
Closing book value 598,072,921 635,782,031

7.1. Cost of additions during the period / year

Land 72,485,095 18,557,113
Buildings 2,092,922 45,328,092
Vehicles - 77,658,685
74,578,017 141,543,890

7.2 Book value of assets transferred to fixed assets - owned during the period / year
Vehicles 15,761,770 1,574,708

Hi-Tech Lubricants Limited 33

 Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees

8. INTANGIBLE ASSETS - computer software

Opening book value 20,260,771 21,760,517

Add: Cost of additions during the period / year - 8,700,000
Less: Amortization charged during the period / year 6,944,777 10,199,746
Closing book value 13,315,994 20,260,771

9. STOCK-IN-TRADE

Raw materials (Note 9.1) 858,721,957 1,650,353,383

Work-in-process 67,705,463 94,122,182
926,427,420 1,744,475,565

Lubricants and parts (Note 9.2) 714,908,843 656,437,964

Less: Provision for slow moving and damaged stock items 10,218,683 27,984,479
704,690,160 628,453,485
Petroleum products
- Stock in hand (Note 9.3 ) 232,127,837 139,978,203
- Stock in pipeline system (Note 9.4 ) 631,408,997 638,125,434
863,536,834 778,103,637
Dispensing pumps and other installations 43,570,033 59,701,394
2,538,224,447 3,210,734,081

9.1 These includes raw materials in transit amounting to Rupees 241.059 million (2023: Rupees 121.813 million) and raw
materials amounting to Rupees 75.297 million (2023: Rupees 1,119.587 million) lying at customs bonded warehouse.

9.2 This includes stock-in-transit of Rupees Nil (30 June 2023: Rupees Nil) and stock amounting to Rupees 219.010 million (30
June 2023 : Rupees 70.612 million) lying at customs bonded warehouse.

9.3 This include stock of petroleum products in possession of third parties as follows:

Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees

Askar Oil Services (Private) Limited 2,519,352 2,425,987

Be Energy Limited 3,417,967 36,668,049
Al-Rahim Trading Company (Private) Limited - 459,393
Gas and Oil Pakistan Limited 5,084,591 3,410,459
Karachi Hydrocorban Terminal Limited 5,694,449 4,756,350
Z.Y. & Co. Bulk Terminal (Private) Limited 6,351,242 -
23,067,601 47,720,238

34 Hi-Tech Lubricants Limited

 Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
9.4 This represents the Company’s share of pipeline stock of High Speed Diesel and Petroleum Motor Gasoline amounting to Rupees
429.819 million (30 June 2023: Rupees 469.131 million) and Rupees 201.589 million (30 June 2023: Rupees 168.995 million) held by
Pak-Arab Pipeline Company Limited.
10. NON-CURRENT ASSET CLASSIFIED AS HELD FOR SALE
On 27 October 2023, shareholders of the Holding Company accorded approval to sell investment property (land) measuring 01 kanal
and 05 marlas situated at 22-A, Zafar Ali Road, Lahore. The management of the Holding Company anticipates that disposal will be
completed subsequent to the reporting period. Fair value less costs to sell is expected to be higher than the carrying amount of the
related asset.
(Un-Audited)
NINE MONTHS ENDED
31 March 31 March
2024 2023

CASH GENERATED FROM OPERATIONS Rupees Rupees

11.
Loss before taxation (155,236,873) (207,870,651)
Adjustments for non-cash charges and other items:
Depreciation on operating fixed assets 68,316,003 186,000,666
Depreciation on right-of-use assets 113,175,001 101,188,751
Amortization of intangible assets 6,944,779 7,317,132
Amortization of deferred income - Government grant - (361,618)
Allowance for expected credit losses 5,998,605 13,658,497
Provision for slow moving and damaged stock items - -
(Reversal of provision) / provision for slow moving and obsolete store items - -
Provision for slow moving and obsolete store items - -
(Reversal of provision) / provision for expected credit losses (816,851) -
Debit balances written off 84,068 -
Credit balances written back (201,554) -
Gain / (Loss)on disposal of operating fixed assets (1,952,725) (7,014,539)
Dividend income (31,081,551) (23,274,957)
Profit on bank deposits and term deposit receipt (25,666,083) (21,489,215)
Unrealized gain on remeasurement of investments carried at fair value through profit or loss - net (4,150,041) (56,560)
Interest income on short term loan to subsidiary company - -
Gain on disposal of short term investments (1,936,890) (189,090)
Fair value gain on investment property - -
Gain on termination of leases - -
Finance cost 578,706,829 474,883,136
Exchange loss - net 2,950,763 208,600,285
Provision for workers' profit participation fund 14,199,217 -
Provision for workers' welfare fund 5,010,275 -
Fixed assets written off 6,075,596 -
Gain on foreign remittance - (30,797,348)
Short term security deposits written off - -
Long term security deposits written off - -
Other receivables written off - -
Working capital changes (Note 11.1) 702,093,536 (479,523,071)
1,282,512,104 221,071,418
11.1 Working capital changes
Decrease / (increase) in current assets:
Stores 36,590,046 1,029,941
Stock-in-trade 672,509,634 1,039,760,866
Trade debts (100,995,379) 221,869,301
Loans and advances 99,924,817 (285,202,856)
Short term deposits and prepayments (43,517,771) (29,607,536)
Other receivables (85,119,550) 254,441,266
579,391,797 1,202,290,982
Increase / (decrease) in trade and other payables 122,701,739 (1,681,814,053)
702,093,536 (479,523,071)

Hi-Tech Lubricants Limited 35

Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
12. TRANSACTIONS WITH RELATED PARTIES
Related parties comprise of associated undertakings, other related parties, key management

UN-AUDITED
NINE MONTHS ENDED QUARTER ENDED
Nature of
transaction 31 March 31 March 31 March 31 March
2024 2023 2024 2023
----------------------------------Rupees----------------------------------

i. Transactions

Associated company

MAS Associates Share of common 1,534,284 1,008,395 370,608 323,379

Other related parties

SK Enmove Co., Purchase of 1,718,867,680 2,594,271,146 617,289,494 33,111,505

Ltd.
Dividend paid - 1,986,660 - 1,986,660

Incentive 247,122,002 181,400,000 - 181,400,000

Provident fund trust Contribution 26,978,900 23,126,483 7,731,798 6,545,357

Key management Remuneration 372,786,025 370,629,359 118,955,044 98,186,024

Sabra Hamida TrustDonations 13,500,000 13,500,000 4,500,000 4,500,000

Un-Audited Audited
31 March 30 June
2024 2023
Rupees Rupees

ii. Period / year end balances

Associated company

Receivable from MAS Associates (Private) Limited 320,069 314,409

Other related parties:

Receivable from SK Enmove Co., Ltd 69,525,001 90,000,000

Payable to SK Enmove Co., Ltd 487,471,872 562,838,000
Payable to employees' provident fund trust 6,926,982 4,979,216
Remuneration payable to directors 7,763,167 2,100,000

36 Hi-Tech Lubricants Limited

Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
13 RECOGNIZED FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS

(i) Fair value hierarchy

Judgments and estimates are made in determining the fair values of the financial instruments that are recognized and
measured at fair value in these consolidated financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Group has classified its financial instruments into the following three levels. An
explanation of each level follows underneath the table.

Recurring fair value measurements at 31 March 2024 Level 1 Level 2 Level 3 Total

---------------------------- Rupees ----------------------

Financial assets

Financial assets at fair value through profit or loss 221,198,641 - - 221,198,641

Recurring fair value measurements at 30 June 2023 Level 1 Level 2 Level 3 Total

---------------------------- Rupees ----------------------

Financial assets

Financial assets at fair value through profit or loss 222,582,946 - - 222,582,946

The above table does not include fair value information for financial assets and financial liabilities not measured at fair
value if the carrying amounts are a reasonable approximation of fair value. Due to short term nature, carrying amounts
of certain financial assets and financial liabilities are considered to be the same as their fair value. For the majority of the
non-current receivables, the fair values are also not significantly different to their carrying amounts.

There were no transfers between levels 1 and 2 for recurring fair value measurements during the year. Further there was
no transfer in and out of level 3 measurements.

The Group’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity
securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for
financial assets held by the Group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little
as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities.

(ii) Valuation techniques used to determine fair values

Specific valuation technique used to value financial instruments is the use of quoted market prices on Pakistan Stock
Exchange and for funds, Net Asset Value (NAV) of respective Asset Management Company.

Hi-Tech Lubricants Limited 37

Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
14 FAIR VALUE MEASUREMENTS - NON-FINANCIAL ASSETS

(i) Fair value hierarchy

Judgments and estimates are made in determining the fair value of non-financial assets that are recognized
and measured at fair value in these financial statements. To provide an indication about the reliability of the
inputs used in determining fair value, the Group has classified its non-financial assets into the following three
levels.

At 31 March 2024 Level 1 Level 2 Level 3 Total

---------------------------- Rupees ----------------------

Freehold land - 2,795,341,250 - 2,795,341,250

- 2,795,341,250 - 2,795,341,250

At 30 June 2023 Level 1 Level 2 Level 3 Total

---------------------------- Rupees ----------------------

Freehold land - 2,795,341,250 - 2,795,341,250

Investment property - land - 135,000,000 - 135,000,000
- 2,930,341,250 - 2,930,341,250

The Group’s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of
the reporting period.

There were no transfers between levels 1 and 2 for recurring fair value measurements during the period
ended 31 March 2024. Further, there was no transfer in and out of level 3 measurements.

(ii) Valuation techniques used to determine level 2 fair values

The Group obtains independent valuations for its freehold land (classified as fixed assets) and investment
property at least annually. At the end of reporting period, the management of the Group updates the
assessment of the fair value of property, taking into account the most recent independent valuations. The
management determines a property’s value within a range of reasonable fair value estimate. The best
evidence of fair value is current prices in an active market for similar lands.

Valuation processes

The Group engages external, independent and qualified valuers to determine the fair value of the Group’s
freehold land and investment property at the end of every financial year. Most recent valuation of freehold
land was carried out on 30 June 2023 by Anderson Consulting (Private) Limited, independent valuers.

38 Hi-Tech Lubricants Limited

 15 SEGMENT INFORMATION
The Group has two reportable segments. The following summary describes the operation in each of the Group's reportable segments:

Lubricants Purchase, blend, package and sale of lubricants, parts and rendering of services.
Petroleum products Marketing and sale of petroleum products.
Polymer Manufacturing and sale of plastic bottles

LUBRICANTS PETROLEUM PRODUCTS POLYMER UNALLOCATED TOTAL - GROUP

31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March 31 March
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
---------------------------------------------------------------------------------------Rupees---------------------------------------------------------------------------------------
Revenue from contracts with
customers - net 5,570,845,548 5,774,672,571 10,132,034,554 5,739,848,792 278,281,570 - - - 15,981,161,672 11,514,521,363
Cost of sales (4,337,080,300) (4,235,809,344) (9,859,068,411) (5,580,681,220) (211,921,085) - - - (14,408,069,796) (9,816,490,564)
Gross profit 1,233,765,248 1,538,863,227 272,966,143 159,167,572 66,360,485 - - - 1,573,091,876 1,698,030,799
Distribution cost (453,349,229) (466,698,452) (284,100,969) (222,707,603) (7,066,695) - - - (744,516,893) (689,406,055)
Administrative expenses (658,920,719) (610,300,812) (16,433,634) (14,732,412) (1,831,438) - - - (677,185,791) (625,033,224)
Other expenses (22,155,288) (237,366,062) (25,739,880) (7,006,406) - - - - (47,895,168) (244,372,468)
(1,134,425,236) (1,314,365,326) (326,274,483) (244,446,421) (8,898,133) - - - (1,469,597,852) (1,558,811,747)
Other income 255,099,339 43,756,047 64,876,593 75,577,002 - - - - 319,975,932 119,333,049
Profit / (loss) from operations 354,439,351 268,253,948 11,568,253 (9,701,847) 57,462,352 - - - 423,469,956 258,552,101
Interim Financial Statements (Un-audited)

Finance cost (375,892,701) (406,325,839) (94,514,657) (60,096,913) (108,299,471) - - - (578,706,829) (466,422,752)

(Loss) / profit before taxation (21,453,350) (138,071,891) (82,946,404) (69,798,760) (50,837,119) - - - (155,236,873) (207,870,651)
Taxation - - - - - - (162,365,948) 28,077,979 (162,365,948) 28,077,979
Selected Notes To The Consolidated Condensed

(Loss) / profit after taxation (21,453,350) (138,071,891) (82,946,404) (69,798,760) (50,837,119) - (162,365,948) 28,077,979 (317,602,821) (179,792,672)

15.1 Reconciliation of reportable segment assets and liabilities:

LUBRICANTS PETROLEUM PRODUCTS POLYMER TOTAL - GROUP

Un -Audited Audited Un -Audited Audited Un -Audited Audited Un -Audited Audited
For The Quarter and Nine Months Period Ended 31 March 2024

31 March 30 June 31 March 30 June 31 March 30 June 31 March 30 June

2024 2023 2024 2023 2024 2023 2024 2023

Total assets for reportable segments 7,193,749,069 6,722,267,004 4,178,262,123 3,947,956,772 - 815,925,107 11,372,011,192 11,486,148,883

Unallocated assets 318,040,872 676,568,277

Total assets as per consolidated statement of financial position 11,690,052,064 12,162,717,160

Total liabilities for reportable segments 3,349,145,052 2,526,927,666 782,222,788 233,897,003 - 475,910,407 4,131,367,840 3,236,735,076

Unallocated liabilities 1,832,579,021 2,882,274,060

Hi-Tech Lubricants Limited 39

Total liabilities as per consolidated statement of financial position 5,963,946,861 6,119,009,136

15.2 All of the sales of the Group relates to customers in Pakistan.

15.3 All non-current assets of the Group as at the reporting dates are located in Pakistan.
Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
16 UTILIZATION OF THE PROCEEDS OF THE INITIAL PUBLIC OFFER (IPO)

During the year ended 30 June 2016, the Holding Company made an Initial Public Offer (IPO) through issue of
29,001,000 ordinary shares of Rupees 10 each at a price of Rupees 62.50 per share determined through book
building process. Out of the total issue of 29,001,000 ordinary shares, 21,750,500 shares were subscribed through
book building by High Net Worth Individuals and Institutional Investors, while the remaining 7,250,500 ordinary shares
were subscribed by the General Public and the shares were duly allotted on 18 February 2016. On 01 March 2016,
Pakistan Stock Exchange Limited approved the Holding Company’s application for formal listing of ordinary shares
and trading of shares started on 03 March 2016.

Till 30 June 2017, the Holding Company utilized the proceeds of the initial public offer of 29,001,000 ordinary shares
for the purposes mentioned under heading 5.5 ‘Expansion Plan’ in prospectus dated 28 December 2015, as per the
following detail:

Total amount
Purposes Mentioned Under Heading 5.5 ‘Expansion Plan’ In Prospectus Total amount utilized till 30
Dated 28 December 2015 (Rupees) June 2017
(Rupees)

Investment in HTLL

Land 470,000,000 60,618,100

Building 128,000,000 12,486,445
Plant, machinery and equipment 139,000,000 2,719,201
Pre-operating costs 33,000,000 249,630
Working capital 842,562,500 739,126,208
1,612,562,500 815,199,584

Investment in 100% owned subsidiary

Additional filling lines for blending plant, Hi-Tech Blending (Private) Limited -
200,000,000 -
Subsidiary Company
Total 1,812,562,500 815,199,584

IPO proceeds (A) 1,812,562,500

Amount un-utilized (A – B) 997,362,916

As stated in the prospectus dated 28 December 2015, the Holding Company planned to offer state of the art retail
outlets across Pakistan with multitude of unique services and also planned to install additional filling lines at the
blending plant of its subsidiary. The plan of the year 2015-16 covered 37 grand outlets openings in 11 major cities of
Pakistan including Lahore, Gujranwala, Sialkot, Faisalabad, Multan, Islamabad, Rawalpindi, Karachi and Hyderabad.
Over a period of 5 years, the Holding Company planned to open 75 retail outlets (including 67 rented) across 16
major cities of Pakistan. As per quarterly progress report number 06 dated 14 July 2017, the Holding Company
informed all stakeholders the progress on implementation of project: Expansion through retail outlet: 1 owned service
center under regulatory approval and out of the 10 rented service centers, 1 is operational, 3 are approved and
under construction, 3 are under regulatory approvals and 3 are under negotiations. Accurate, effective and timely
implementation of the above plans of the Holding Company became a big challenge for the Holding Company
due to expensive lands and properties at key locations in almost all the cities for express service centers. Hence, the
Holding Company planned for incorporation of express centers into its fuel stations to be established under the
umbrella of Oil Marketing Company (OMC) Project of the Holding Company. In this regard, the Holding Company
obtained a financial feasibility report from KPMG Taseer Hadi & Co., Chartered Accountants regarding investment in
OMC Project. In view of successful fulfillment of initial mandatory requirements of Oil and Gas Regulatory Authority
(OGRA) for setting up of an OMC and future prospects of OMC in current international scenario as prospected under
financial feasibility report, the shareholders of the Holding Company in their 9th Annual General Meeting held on 29
September 2017 approved diversion and utilization of un-utilized IPO funds from HTL express centers and wholly
owned Subsidiary Company to OMC Project of the Holding Company keeping in view overall growth of the Holding
Company and ultimate benefit to all shareholders and stakeholders of the Holding Company.

40 Hi-Tech Lubricants Limited

 Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
The Project envisages setting up 360 retail outlets across Punjab, Sindh and Khyber Pakhtunkhwa Provinces of Pakistan.
The fuel stations will offer full range of services such as general store, tyre shop and a car shop amongst others. To
support sales, the Holding Company plans to invest in building storage capacities of 25,735 metric tons (Mogas and
HSD) across the country over a period of 7 years.

During the year ended 30 June 2017, OGRA granted license to the Holding Company to establish an Oil Marketing
Company (OMC), subject to some conditions. During the year ended 30 June 2018, with reference to OMC Project
of the Holding Company, Oil and Gas Regulatory Authority (OGRA) has granted permission to proceed to
apply/acquire No Objection Certificates (NOCs) from concerned departments including District Coordination Officer
(DCO) for setting up of upto 26 retail outlets in Punjab Province with instructions that retail sales through petrol pumps
can only be started after completion of necessary Storage Infrastructure, 3rd Party Inspector Report confirming that
storage/depot meets OGRA’s notified Technical Standards and OGRA’s approval.

During the year ended 30 June 2018, the Holding Company completed its oil storage site at Sahiwal. The Holding
Company also purchased land in Nowshera for oil storage site under OMC project.

On 31 May 2019, Oil and Gas Regulatory Authority (OGRA) has granted permission to the Holding Company to
operate new oil storage facility at Sahiwal and marketing of petroleum products in the Province of Punjab. The
Holding Company has signed agreements with various dealers for setting up petrol pumps under the OMC project
and also started construction of another storage site at Nowshera, Khyber Pakhtunkhwa.

During the year ended on 30 June 2020, the Holding Company started its OMC operations and expediently worked
on completion of its Nowshera oil storage. During the year ended 30 June 2021, Holding Company has completed
its oil storage at Nowshera. On 09 August 2021, OGRA acknowledged the satisfactory completion of Nowshera oil
storage based on third party inspection report. During the year ended 30 June 2022, the Holding Company has
started work on new oil storage facility at Shikarpur. On 16 March 2023, OGRA has granted permission to the Holding
Company to operate new storage facility at Nowshehra and marketing of petroleum products in the province of
Khyber Pakhtunkhwa. Currently, the Holding Company has eight operational HTL Express Centers, four in Lahore, three
in Karachi and one in Rawalpindi. Further, the Holding Company has forty one retail outlets operational for sale of
petroleum products as on 31 March 2024. Detail of payments out of IPO proceeds during the period ended 31
March 2024 is as follows:

Rupees

Un-utilized IPO proceeds as at 01 July 2023 395,898,356

Add: Profit on term deposit receipt 27,699,244

Add: Profit on bank deposits 1,612,487
Add: Dividend on investment in mutual funds 30,313,780

Add: Gain on disposal of investment in mutual funds 2,859,543

Add: Unrealised gain on investment in mutual funds (980,726)
Less: Payments made relating to OMC Project (166,100,021)
Less: Withholding tax on profit (241,873)
Less: Withholding tax on dividend from mutual funds (4,547,067)
Less: Withholding tax on profit on term deposit receipt (4,154,887)
Less: Withholding tax on disposal of mutual funds (86,560)
Less: Bank charges (53)
Un-utilized IPO proceeds as at 31 March 2024 282,272,223

The un-utilized proceeds of the public offer have been kept by the Holding Company in the shape of bank balances,
term deposit receipt and mutual funds.

Hi-Tech Lubricants Limited 41

Selected Notes To The Consolidated Condensed
Interim Financial Statements (Un-audited)
For The Quarter and Nine Months Period Ended 31 March 2024
17. FINANCIAL RISK MANAGEMENT

The Group's financial risk management objectives and policies are consistent with those disclosed in the preceding audited annual
financial statements of the Group for the year ended 30 June 2023.

18. CORRESPONDING FIGURES

In order to comply with the requirements of International Accounting Standard (IAS) 34 "Interim Financial Reporting", the consolidated
condensed interim statement of financial position and consolidated condensed interim statement of changes in equity have been
compared with the balances of annual audited financial statements of preceding financial year, whereas, the consolidated
condensed interim statement of profit or loss, consolidated condensed interim statement of comprehensive income and consolidated
condensed interim statement of cash flows have been compared with the balances of comparable period of immediately preceding
financial year.

19. DATE OF AUTHORIZATION FOR ISSUE

These consolidated financial statements were authorized for issue on April 29, 2024 by the Board of Directors of the Holding
Company.

20. GENERAL

Figures have been rounded off to nearest of Rupee, unless otherwise stated.

Chief Executive Director Chief Financial Officer

42 Hi-Tech Lubricants Limited