out rightly rejected these contentions and is of the view that it has a strong

Out rightly rejected these contentions and is of the

This preview shows page 56 - 58 out of 94 pages.

out rightly rejected these contentions, and is of the view that it has a strong case for the reasons that (i) 100 MMSCFD gas has been allocated to the Company through a transparent international competitive bidding process held by the Government of Pakistan, and upon payment of valuable license fee; (ii) GSA which guarantees uninterrupted supply of gas to the expansion plant, with right to first 100 MMSCFD gas production from the Qadirpur field; and (iii) both the Company and gas field (Qadirpur), that is to initially supply gas to the Company, are in Sindh. Also, neither the gas allocation by Government nor the GSA predicates the gas supply upon Qadirpur field producing 100 MMSCFD over and above 500 MMSCFD. No orders have been passed in this regard and the petitions have been adjourned sine die. However, the Company ’s management, as confirmed by the legal advisor, considers the chances of the petitions being allowed to be remote. iv) The Company (along-with other fertilizer companies) has filed a writ in the Lahore High Court challenging the revised order of priority for supply of natural gas by the Ministry of Petroleum and Natural Resources under the Gas Management Policy 2013. Under the revised priority, the fertilizer sector has been put below the power sector and at par with general industry. The Petition seeks to ensure, inter alia, priority supply of Gas to the fertilizer industry over the CNG sector, and equal treatment with general industry, without prejudice to its challenge to the revised priority. v) During the half year ended June 30, 2013, the Company has filed: - a writ in the Lahore High Court seeking fair distribution of the agreed upon rota of gas supply between the 4 fertilizer plants on the SNGPL network. The Company has also prayed for making up the short falls in its 2012 rota share; and
Image of page 56
Page 57 of 94 - a suit against the Government of Pakistan and SNGPL in the Lahore High Court for the recovery of damages incurred as a result of SNGPL suspending/ curtailing gas supply to the Company amounting to Rs. 61,410,000 thousand. This would be recognized as income upon realisation thereof. vi) Claims, including pending lawsuits, against the Company not acknowledged as debts amounted to Rs. 58,530 thousand. vii) The Company is contesting a penalty of Rs. 99,936 thousand paid and expensed in 1997, imposed by the State Bank of Pakistan (SBP) for alleged late payment of foreign exchange risk cover fee on long term loans and has filed a suit in the High Court of Sindh. A partial refund of Rs. 62,618 thousand was, however, recovered in 1999 from SBP and the recovery of the balance amount is dependent on the Court's decision. viii) Engro Corporation Limited (the Holding Company) had commenced two separate arbitration proceedings against the Government of Pakistan for non-payment of marketing incidentals relating to the years 1983-84 and 1985-86 respectively. The sole arbitrator in the second case has awarded the Holding Company Rs. 47,800 thousand whereas the award for the earlier years is awaited. The award for the second arbitration has not been recognised due to inherent
Image of page 57
Image of page 58

You've reached the end of your free preview.

Want to read all 94 pages?

  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors