chairman’s review & directors’ report

2008 Annual ReportSui Northern Gas Pipelines Limited

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Chairman’s Review &Directors’ Report

to the largest energy source in Pakistan with ashare of around 50% of the total energy supplies.The largest use of gas has been in powergeneration followed by industrial, fertilizer andother sectors. Increase in global oil pricescontinues to build pressure on indigenized energysources in general and natural gas in particular.Natural gas is not only playing an important partas fuel in thermal power plants but also acting asa means of diversifying away from expensive oilimports. As a result, natural gas usage hasincreased rapidly during the last few years.However, as the gas supply-demand statisticsindicate, the Country’s domestic gas reserves,after reaching their peak in 2010, will rapidly startdepleting after 2011-12 unless a new discoveryis made. In view of increasing demand anddepleting resources, Pakistan needs to diversifyits sources of natural gas supplies and tap allavailable channels including enhancement ofdomestic gas exploration including deep seaexploration, cross border gas pipelines and importsof liquefied natural gas (LNG).

Financial and Operational ReviewDuring the year ended June 30, 2008, yourCompany earned a net profit after tax of Rs 2,497million as compared to a net profit after tax of Rs2,678 million during corresponding year endedJune 30, 2007. Sales revenue increased to Rs124,155 million showing an increase of 10.28 %as compared to Rs 112,577 million during thecorresponding year ended June 30, 2007. Thetotal gas sales volume was 597,913 MMCF duringthe year as compared to 576,658 MMCF soldduring the corresponding year ended June 30,2007.

Earnings per share was Rs 4.55 as compared toRs 4.88 per share during the corresponding yearended June 30, 2007.

Yours Directors are pleased to presentthe 45th Annual Report and the AuditedFinancial Statements of your Companyfor the Financial Year ended June 30,2008 along with the Auditors Reportthereon.

Energy Sector in PakistanDuring the last few years, Pakistan’s primaryenergy consumption has significantly increasedwithout a commensurate improvement in relatedsupplies of those energy sources. Presently ourenergy requirements are met through acombination of resources such as Oil, Gas, Coal,LPG, hydro electricity and nuclear energy withvarying degrees of usage. Natural gas continues

2008Annual ReportSui Northern Gas Pipelines Limited

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Going that extra mile...for peoplewho matter the most...


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Your Company has been able to expand itsdistribution network by over 7,550 Kms andtransmission network by 390 Kms. Over 236,000new domestic connections were commissionedand a record addition to operating fixed assetsof over Rs 13 billion was made during the yearended June 30, 2008. This has been madepossible due to the firm commitment andcontinuous efforts of the dedicated employeesof your Company.

Your Company operates under a fixed rate ofreturn of 17.5% on net average fixed assets(excluding assets financed through Governmentgrants and customers contributions), under atariff regime governed by OGRA. This rate ofreturn has been subject to benchmarkadjustments by the regulator (OGRA). During theyear ended June 30, 2008, OGRA reduced thetotal rate of return from 17.5% to 9.30% by Rs3,281 million (Rs. 2,504 million in FY 2006-07)for expenses and UFG exceeding the prescribedtargets. These deductions resulted in reductionof EPS by Rs 3.69.

The management of the Company is fullyresponsive to these adjustments made by theRegulator. The most important element of thesedeductions is the disallowance on account ofUFG, for which your Company continues to makehectic efforts under a detailed plan to combatthe present trend.

Over the years, your Company has been able togain strength in the areas of planning, designingand construction of pipelines and has emergedas one of the most reliable vendors for such

activities. After successfully implementing numberof pipeline construction projects for otherorganizations in Pakistan, your Company isfocusing on international contracts as well. Wehave been technically qualified for the laying ofaround 500 Kms of pipeline in Algeria. During theyear net profit from Construction Contracts of linepipes was Rs 105 million as compared to Rs47 million during the preceding financial yearshowing an increase of over 123%.

Despite disallowance from the regulator of Rs3,281 million, your Company has been able tosuitably maintain its profitability, asset utilizationand other leverage ratios and is evident from thesix years’ data presented at the end of this report.

Your Company’s profit and its proposedappropriations are given below:

Summary of Results

Rupees in (000)

Profit before taxation 3,981,231Provision for taxation 1,484,541

Profit after taxation 2,496,690Add: Unappropriated profit brought forward 4,543,424

Reserves available for appropriation 7,040,114

Appropriations:

Proposed dividend@ Rs. 3.50 per share 1,921,869

Balance carried forward 5,118,245


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Utilizing our skill andendurance to the maximum


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Projects

Transmission and distribution pipeline constructionprojects of a length more than 1300 Km werecommissioned during FY2007-08. The tonnageequivalent of this construction work is 80,000Tons which is 54% higher than the last fiscalyear’s tonnage value and is exceeding the previoushighest (72,000 Tons) by 11%.

Over 50% gas pipeline work of Project-IX wascompleted in fiscal year 2007-08. For SouthernDistricts of Punjab and NWFP, pipeline projectswere completed extending gas facility to Hasilpur,Chishtian and Bahawalnagar (Southern Punjab),and, Bannu and Dera Ismail Khan (SouthernNWFP). In addition, gas supply was also extendedto various localities/towns including Tandalianwala,Bhawana and Taulmba towns. Natural gas supplyprojects for Rental Power Plants at Bhikhi(Sheikhupura) and Balloki were also completed/ commissioned in order to help alleviate thepower crisis in the country.

Transmission of Gas

Your Company’s Transmission network is spreadover 7,016 Km high pressure pipeline rangingfrom 6 inches to 36 inches in diameter across itsarea of franchise. The natural gas in this networkis boosted upto 1235 Psi by compressor stationsat different locations to feed 294 towns andvillages in Punjab, NWFP and Azad Kashmir.Geographically tough terrains, varying tribalcultures and un-favorable political conditions withlaw and order situations continues to pose majorchallenges for your organization in maintaining

this network and provide citizens of Pakistanuninterrupted supplies of gas. It has been a matterof pride for your Company that the response andrehabilitation time after unforeseen sabotageactivity has been as short as possible under thecircumstances.

Compression of Gas

Compression operation is mandatory to receivegas flows, available at different pressure, fromvarious fields to inject in main transmission networkfor supply up to consumption centers at adequatepressures. In order to maintain gas pressure atall door steps, 64 compressor units at elevencompressor stations have been installed on thetransmission network. These compressor stationsare scattered from Sui Field, District Dera Bugti(Balochistan) up to Dhullian, District Attock inNorthern Punjab. In line with its plan to modernizeand upgrade the existing compression facilitiesin three phases, the 1st Phase of up-gradationwill be completed in 2009 by replacing 14 existingSaturn compressors with latest compressorpackages. In 2nd Phase 10 Saturn compressorpackages will be phased out in 2012-13 and in3rd Phase 6 Saturn compressor package will bephased out this will not only enhance yourCompany’s compression capacity but will alsohelp in reducing operating costs, your Companyincurs on the aging compression facilities.

Corrosion Control

Buried pipeline is the asset of the Company andin order to prevent it from metallic degradationand to mitigate gas leakage, Cathodic Protection


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Gears that movein directions,yours and ours

Signing ceremony between SNGPL and M/s NIFT for gas bills data gathering and processing

(CP) is provided. With the expansion of Company’snetwork, 98 new CP Stations were installed duringthe year under review.

Quality Assurance

Your Company has adopted the internationalconcept of Quality Assurance and believes in thetheory of doing the work right in the first attempt,through in-process inspections and qualityassurance under international standards at eachlevel of operation.

Distribution of Gas

In line with its mission, your Company not onlycontinues to commit its resources to deliver naturalgas to all doorsteps in its chosen areas but alsokeep its focus towards continuous expansion ofits network. During the financial year under review,your Company connected 20 new towns inaddition to 159 villages, expanding its distributionnetwork to 1,224 main towns along with adjoiningvillages in Punjab & NWFP. During the year anamount of Rs 550.79 million was earmarked foraugmentation of distribution system of variousregions. In addition Rs. 200 million was spent onrehabilitation of existing network; this includesrectification of leakages on overhead installationsas well as underground gas mains. In order tobridge the gap between supply and demand, theCompany had to resort to load managementduring winter season in accordance with its loadmanagement policy, framed by the Ministry ofPetroleum & Natural Resources. Despite severalconstraints the distribution system was operated

efficiently with emphasis on ensuring uninterruptedsupply of gas to its consumers.

With the dedicated efforts of the executives andstaff members, gas facility was extended to236,363 new consumers during the year underreview. The Company’s distribution system standsat 59,951 kms.

Consumer ServicesWith the changing environment in business theCompany has inaugurated four upgraded on- linecomplaint Customer Care Centers in Multan,Faisalabad, Islamabad and Peshawar for the quickdisposal of consumer complaints. The basicpurpose of on-line Customer Service Centre (CSC)is to facilitate our esteemed customers byproviding all required services under one roof.This will facilitate the customers and increasework efficiency due to reduced customerintervention at the main office. The remaining CSCat Regional Headquarters of Abbottabad,Bahawlpur & Gujranwala will be functional in theyear 2008-09.


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Inauguration of online complaint customer care center


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Customer Care and Billing System

In pursuit of Company’s objective to achievemaximum customer satisfaction and stakeholdervalue through highest levels of process efficiencies,the Company has initiated implementation of aworld class Customer Care and Billing Systemby Oracle Corporation. This system will pave theway to do business by following Industry BestPractices to achieve efficiency, productivity andquality in Billing & Customer Care operations andhence increase profit by improving cost of doingbusiness.

Call Center & Complaint ManagementSystem

To improve the quality of service to our customers,we are setting up a Call Center equipped with acomplaint management system that provides acentralized point for registering customercomplaints. This system will be accessiblethroughout Punjab and N.W.F.P. Trained agentswill receive calls and register complaints. Thisservice will be available on 24/7 basis by the endof 2008.

Meter Reading on Hand Held Unit

With the revolution of the IT and Procurement of265 Hand Held Units (HHU) with added featureshas been finalized and shortly meter reading offour major regions will be shifted to HHU frommanual books. The Company is focusing on themeasurement accuracy through continuous effortsto keep pace with the ever advancing techniques

and technologies. Some of the prominentachievements in the year 2007-2008 are remotemonitoring for field meters and installation of newelectronic devices.

Management Information System

Enterprise Resource Planning

Your Company believes in greater efficiency andcontrol in operations through increased use ofupdated technology and qualified humanresources. Your Company has alreadyimplemented financial modules of the OracleE-Business Suite and has firmed up resourcesfor the implementation of modules relating toProcurement, Inventory, Human Resources, Payrolland Projects. Management of the Company isconfident that timely and informed decisionsthrough up to date access of reliable informationwill increase the efficiencies of the organizationand provide maximum benefits to thestakeholders.

Sales Management System

A Sales Management System has also beenimplemented in our regional offices at Lahore,Multan, Peshawar, Islamabad and Faisalabad. Ithas not only reduced processing time and costof new connections, but also improved resourceutilization. It is expected that the SalesManagement System will be implemented in theremaining regional offices during the ensuing year.


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Disaster Recovery Site

The Company has an ambitious plan of settingup a disaster recovery site which would facilitateto provide uninterrupted services in case of anyeventuality.

Health Safety & EnvironmentYour Company has a responsibility to ensurehealth and safety of its employees and vendorsand as well as all other affected by your businessis maintained. Management has been stronglycommitted in providing safe and healthy workplaceby developing systems to reduce risks in all itsoperations throughout the year.

The Company’s vision of continual improvementin its approach and development of resources /processes to attain a high standard ofperformance in Health, Safety and Environmentis evident with the certification of ISO 14001:2004and OHSAS 18001:1999 (Integrated ManagementSystem IMS). This has only been accomplishedby the constant struggle & devotion of all theSNGPL employees. This has enabled theCompany not only to enhance its performancebut also to reduce the cost, time and disruptionthat may occur in addressing environment andsafety issues separately.

The Company’s IMS implies sustainability, balanceand fulfillment of responsibility.

This Certification enables us to effectively managehealth, safety and environmental risks, continuallyimprove worker protect ion and betterenvironmental performance.

3rd National Environment & HealthExcellence Award - 2007

The excellence awards were given at a glitteringceremony to prestigious national and multinationalcompanies. SNGPL has won this award this yeardue to the Company’s Management’s commitmenttowards best Health and Environment practicesin the Company.

Annual Sports

Healthy body translates into a healthy mind thatat a work place stimulates one to perform up tohis best ability. To realize this, SNGPL encouragesits employees to take part in sports activities. Forthis purpose, a sports carnival is arranged everyyear that offers an unmatched opportunity toemployees to be away from office routine workingand refresh their physical fitness. Teams from allregions and Head Office participate in this 3-dayseventful gala.


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Sharing joy todouble it...


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SNGPL Wins Triple Crown in Cricket

Sui Northern Gas Pipelines Limited Cricket Teamhas won Pakistan’s premier first-class competition,the “QUAID-E-AZAM TROPHY” for the year 2007-2008 beating Habib Bank Limited’s team. Afterthe demonstration of this team work, SNGPL hasbeen registered in the list of winners of the Quaid-e-Azam trophy, which is an extraordinary honorfor this prestigious organization. SNGPL cricketteam players were honored at the Head Officefor their tremendous success in winning theQuaid-e-Azam trophy at National Stadium Karachi.

After achieving the title of National champion ofmost prestigious Quaid-i-Azam trophy tournament,Sui Northern Gas Pipelines Limited (SNGPL)attained the double crown as they clinched the2007-08 ABN AMRO Cup National one-dayCricket Championship title, after defeating star-studded Habib Bank Limited (HBL) with surprisingease by a seven-wicket margin in the final at theNational Stadium Karachi on Thursday April 12,

2008. SNGPL Cricket Team has also achieved asingular honour to win the Muhammad NisarTrophy at New Delhi playing against the RanjhiTrophy Champions which is the premium andprestigious Indian Cricket Trophy.

Contribution to National ExchequerDuring the financial year, your Companycontributed over Rs 20,916 million to nationalexchequer in the form of taxes and duties ascompared to Rs 19,718 million during thepreceding financial year.

Entity RatingThe Company maintained its long term creditrating at AA (Double A) and short term rating atA1+ (A One Plus). These ratings are the reflectionof strong financial position and low expectationof credit risk of the Company.

Celeberating Independence Day


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SNGPL Wins Triple Crown in Cricket


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Corporate Social ResponsibilityCorporate Social Responsibility (CSR) policy ofthe Company has been approved by the Board.CSR is an expression used to describe Company’sobligation to be sensitive to the needs of all thestakeholders in its business operations. SNGPLis already contributing towards research activitiesby sponsoring “Chairs” in major Universities ofPakistan. Several Projects are in pipeline forimproving the quality of life of communities throughbetter education and health facilities.

SNGPL believes in:

• business that should be both profitableand beneficial to the society

• improving the quality of life of thecommunities especially, those who areunder privileged

• ensuring harmonious relations with ourstakeholders, by working in partnershipwith the Community, the Government andNGOs through the principles ofsustainable development.

Human Resource DevelopmentA major factor in your Company’s success is itshighly skilled and motivated workforce which isthe most valuable asset. Our people are ourstrength and for this the Management endeavorsto create and maintain an environment conduciveto their further development. Your Company iscommitted to provide a professional and caringenvironment so that creative energies ofemployees are released and fully utilized.Professionalism, people development, ethicalstandards and growth opportunity are some ofthe core values promoted which are the motivatingfactors for the employees.

Supporting Education - SNGPL and LUMS


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The Company continues to place due emphasison training in all spheres of its activity. SNGTI –Sui Northern Gas Training Institute – wasestablished with the objective of developing astate-of-the-art facility for education and trainingof Company’s Human Resource Capital intechnical and soft skills, essentially required tomeet current and future organizational needs.

The Institute has, in a relatively short duration,developed into a centre of excellence. SNGTI bynow, besides rendering invaluable service to theCompany by grooming and training the Companyemployees, is also extending training support toother Organizations as well.

SNGTI has so far conducted 226 trainingprogrammes which have been attended by over4000 participants. Recently, SNGTI has enteredinto an agreement with M/s. NESPAK to train itsexecutives in various Managerial Skills. It has alsoembarked upon a collaborative arrangement withM/s. NAVTEC, for imparting vocational trainingto the unskilled youth of the society, thus enablingthem in their employability and to play aconstructive role in the development of the society.

Internal Control SystemThe Board has setup an effective internal auditfunction which is a major tool to monitoroperational risks. The Company has centralizedinternal audit functions in which detailed reportsfrom Head Office and Regions are submitteddirectly to the Head of Internal Audit who, in turn,reports to the Audit Committee of Directors. Thefocus of Internal Audit, being eyes and ears ofthe Board, provides an independent assuranceon the operations and financial performance ofthe organization. Regular reviews and reports aresubmitted to the Executive Management andAudit Committee of Directors.

Evacuation drill at Head Office, Lahore.


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Administrative ControlsSatisfied and motivated work force plays aninstrumental role in the growth of an organization.Companies concentrate on provision of qualityservices to its human resource in order to ensuretheir maximum contribution for the organizationalprosperity. Likewise, SNGPL has always madeconcerted efforts to optimally utilize HR potentialand besides market based remuneration, allowsfull medical coverage to them and their families,with paid holidays, retirement benefits and fullgroup insurance coverage.

As SNGPL believes in promoting fairness,transparency and consistency within its HRpolicies it has always ensured strict administrativecheck to make all these facilities purposeful. Thisnot only helps in promoting orderly behavioramongst all its employees but also encouragesstaff to improve their conduct.

This has been done through a composite set ofact iv i t ies including proper informationdissemination, financial checks and timely & strictpunitive measures, designed in such a mannerthat ensures consistency, impartiality and fairnessand leads to ultimate goal of organizational growth.

Risk ManagementDue to the technical and professional managementof the Company, overall risks arising from theCompany’s financial assets and liabilities arelimited. The detail of financial risks, your Companyis exposed to, are discussed in detail in note 47.1to the financial statements.

Security Risk

Your Company operates large number of sensitivefacilities. Safety of these establishments,equipment and most importantly human resourcefrom internal and external threats has always beena priority of the management especially underpresent circumstances when increasing life threatsand suicide bombs have created a feeling ofinsecurity and terrorized our lives, its importancehas increased significantly. To ensure fool proofsecurity system, the security personnel have beenequipped with state of the art security gadgetsand trained accordingly.


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The drive to attaincompelling results -is right on!


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Election of DirectorsAn extraordinary General Meeting of Sui NorthernGas Pipelines Limited was held on June 23, 2008at a local hotel for electing its Board of Directorsfor a term of three years effective June 26, 2008.Mr. Muhammad Razi Abbas, Syed MohammadAsghar, Mr. A. Samad Dawood, Mr. ShahzadaDawood, Mr. Abdul Bari Khan, Mr. Tariq IqbalKhan, Mr. A. Rashid Lone, Mian Raza Mansha,Mr. Qasim Rabbani, Mr. Arif Saeed, Mr. SaeedUllah Shah, Mr. Amanullah Shaikh and Mr. AzimIqbal Siddiqui were elected unopposed asDirectors.

The Board of Directors would like to place onrecord their appreciation and gratitude to theoutgoing Chairman, Mr. Altaf M. Saleem and nonexecutive directors, Mr. Hussain Dawood, Mr.Munwar Baseer Ahmad and Mr. Azim IqbalSiddiqui for their guidance and support duringthe tenures they were Directors of the Company.The Board also welcomes Mr. Abdul SamadDawood and Mr. Umair Khan as Directors.

Post Balance Sheet EventsThe Directors have not received, as at September27, 2008, being the date on which these financialstatements were approved, any informationconcerning significant conditions in existence atthe balance sheet date, which have not beenreflected in the financial statements as presented.

Corporate GovernanceThe principles of Corporate Governance adoptedby the Directors are set out in detail in the sectionon Corporate Governance, in this Annual Report.

Statement on Corporate and FinancialReporting FrameworkThe Board of Directors hereby declares that forthe year ended June 30, 2008:

a. The financial statements, together with thenotes thereon have been drawn up inconformity with the Fourth Schedule to theCompanies Ordinance, 1984. Thesestatements present fairly the Company’sstate of affairs, result of its operations, cashflows and changes in equity.

b. Proper Books of Accounts of the Companyhave been maintained.

c. Appropriate accounting policies have beenconsistently applied in the preparation offinancial statements, except for those statedspecifically, and accounting estimates arebased on reasonable and prudent judgment.

d. The International Accounting Standards, asapplicable in Pakistan, have been followedin preparation of the financial statementsand any departure there-from has beenadequately disclosed.

e. The system of internal control is sound indesign and has been effectively implementedand monitored.


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Rupees in (000)

SN Senior Staff Pension Fund 403,172

SN Junior Staff Pension Fund 938,686

SN Executive Staff Gratuity Fund 8,810

SN Non-Executive Staff Gratuity Fund 570,789

Trustees Provident Fund 2,102,058

Total 4,023,515

k. Audited value of investment in employeesretirement funds created by the Companyduring F.Y. 2006-07 are given as under:

Rupees in (000)

SN Executive Staff, Medical Treatment 351,000

SN Non-Executive Staff Medical Treatment 946,399

SN Executive Staff Free Gas 23,258

SN Non-Executive Staff Free Gas 352,462

SN Executive Staff Compen- sated Absences Fund 35,083

SN Non-Executive Staff Com- pensated Absences Fund 137,621

Total 1,845,823

l. All statutory payments on account of taxes,duties, levies and charges in the normalcourse of business, payable as at June 30,2008, have been cleared subsequent to theyear-end.

m. The number of Board meetings held duringthe year and attendance by each Directoris disclosed in Corporate Governancesection of this report.

n. No trading of shares by Chief ExecutiveOfficer, Directors, Company Secretary, ChiefFinancial Officer, their spouses and minorchildren has been carried out, other thanthe transaction disclosed as per statute.The number of shares, if any, held by themis annexed.

f. There is no significant doubt upon theCompany’s ability to continue as a goingconcern.

g. There has been no material departure fromthe best practices of corporate governance,as detailed in the listing regulations, exceptfor those included in the Company’sStatement of Compliance with the Code ofCorporate Governance.

h. Significant deviations from last year’soperating results have been disclosed asappropriate in the Directors’ report /Chairman’s statement and in the notes tothe accounts, annexed to this report.

i. Key operating and financial data for the lastsix years in summarized form is annexed.

j. Value of investment in employees retirementfunds based on audited accounts of thefunds for the year ended June 30, 2007-are as follows:


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Pattern of Share HoldingThe pattern of share holding as at June 30, 2008is annexed.

AuditorsThe present joint auditors M/s. Ford Rhodes SidatHyder & Co., Chartered Accountants and M/s.Riaz Ahmed and Co., Chartered Accountants,are retiring and being eligible, offer themselvesfor re-appointment.

Implementation of Transfer PricingPolicyThe Transfer Pricing Policy has been adopted bythe Company.

Going ConcernThe Board of Directors has satisfied itself that theCompany has adequate resources to continueits operations for the foreseeable future. TheCompany’s Financial Statements have accordinglybeen prepared on a ‘going concern’ basis.

Business Risks and Future Out LookYour Company is committed to achieve thesustained levels of operations at demonstratedoperating efficiencies through focus on ourfundamental strengths including diversification inprojects beyond the territorial limits of the Country.Maintaining the momentum achieved in theexpansion of network during the current year will

be one the major uphill task for the managementof your Company.

Your Company recognizes the need of a dedicatedCustomer Care and Complaint resolutiondepartment for the satisfaction of its valuedconsumers. As part of this recognition, dedicatedCustomer Care and Complaint Resolutiondepartment has already started its functions andis expected to provide the consumers with facilitieslike complaint resolution through automated callcenters, establishment of new consumer servicecenters and bill payment through ATMs, POSterminals, call centers and internet etc.

The Board of Directors of your Company havealready approved a comprehensive Business Planwhich focuses on the challenges your Companyfaces and sets out some of the steps which arerequired to maintain the pace of the presentoperations. Some of the major elements of thisplan include:

• Transport additional gas from developing /expanding fields, as and when, it becomesavailable and to expand the transmissionsystems accordingly.

• Extend gas distribution network and supplymains.

• Integrate sales, distribution, billing andcustomer service information on a singledatabase under one roof. Introduce CIS.

• Hire, retain and motivate qualified employeesfor every approved position in the Company.

• Upgrade skills of human resources throughsystematic formal training programme.


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• To comply fully with the OGRA prescribedperformance and service standards.

Your Company has already been declaredtechnically qualified against an international pipelineconstruction tender in Algeria. Financial evaluationwill be carried out within ensuing year and workis also expected to commence shortly after that.

Inflationary pressures coupled with increasing fueland energy costs is increasing the incentives forincreased pilferages, thefts and corruption atdifferent levels of our community, which besidesincreasing our UFG is also contributes adverselytowards the revenues of our organization.Management of your Company has taken thesethreats as challenges and have developed acomprehensive plan to combat Unaccounted forGas losses under a tolerable limit prescribed byOGRA. Some of the major features of this planinclude separate steps and action plan for dealingwith gas theft, remedial measures to control underand over ground leakages, measures to addressbilling and measurement errors.

AcknowledgementsWe wish to thank all our shareholders,stakeholders and valued customers for theircontinued support and also acknowledge theefforts of inspirational senior management teamand dedicated employees.

We also place on record the acknowledgementfor the continued guidance and support receivedfrom the Government of Pakistan, Ministry ofPetroleum & Natural Resources, Oil & GasRegulatory Authority (OGRA) and the out goingBoard of Directors in making the year a greatsuccess.

On Behalf of the Board

Lahore: (TARIQ IQBAL KHAN)September 27, 2008. Chairman

chairman’s review & directors’ report

Documents