Company registration number: 520095
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the strategic report for the year ended 31 December 2024.
On 13 December 2012, the Executive Board of Directors of Petróleo Brasileiro S.A. approved the transfer of all assets and liabilities from Petrobras Paraguay Distribución Limited (PPDL) to Petrobras Paraguay Operaciones y Logística S.R.L. (PPOL).
It was agreed that on 1 April 2013, all business operations would be transferred from PPDL to PPOL.
As a result of this, the company’s activities are in process of gradually winding down, and the results for the past few financial years reflect this.
On 27 June 2018, it was communicated the agreement for the total sale of the stakes in the companies Petrobras Paraguay Operaciones y Logística SRL (PPOL), Petrobras Paraguay Gas SRL (PPG) and Petrobras Paraguay Distribución Limited (PPDL) to Grupo Corporación Petrolera (Copetrol Group) and on 8 March 2019, following the approvals of the regulatory entities, the transfer of the companies was completed.
It was agreed that on 1 April 2013, all business operations would be transferred from PPDL to PPOL.
As a result of this, the company’s activities are in process of gradually winding down, and the results for the past few financial years reflect this.
On 27 June 2018, it was communicated the agreement for the total sale of the stakes in the companies Petrobras Paraguay Operaciones y Logística SRL (PPOL), Petrobras Paraguay Gas SRL (PPG) and Petrobras Paraguay Distribución Limited (PPDL) to Grupo Corporación Petrolera (Copetrol Group) and on 8 March 2019, following the approvals of the regulatory entities, the transfer of the companies was completed.
Credit risk
Management has a credit policy in place and the exposure to credit risk is monitored on an on-going basis.
Credit evaluations are performed on all customers requiring credit over a certain amount and collateral is required when deemed necessary.
Management does not except any counter party to fail to meet its obligations and following the transfer or settlement of most trade debtors, exposure to credit risk is not considered to be significant.
Foreign currency risk
The company is exposed to currency risks in respect of assets and liabilities denominated in currencies other than United States Dollar. This risk is monitored to maintain the exposure at acceptable levels and considering the low level of activity, current risk levels are not deemed to be significant.
Management has a credit policy in place and the exposure to credit risk is monitored on an on-going basis.
Credit evaluations are performed on all customers requiring credit over a certain amount and collateral is required when deemed necessary.
Management does not except any counter party to fail to meet its obligations and following the transfer or settlement of most trade debtors, exposure to credit risk is not considered to be significant.
Foreign currency risk
The company is exposed to currency risks in respect of assets and liabilities denominated in currencies other than United States Dollar. This risk is monitored to maintain the exposure at acceptable levels and considering the low level of activity, current risk levels are not deemed to be significant.
The directors believe that the historic financial key performance indicators, being turnover, gross and net profit, are no longer appropriate due to the fact that the company is winding down its operations and no longer generates income due to its former trading activities being transferred to another group entity.
The board of directors, despite not having set specific deadlines, intends to dissolve the company in the future.
The board of directors, despite not having set specific deadlines, intends to dissolve the company in the future.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors who served during the year were:
The board of directors, despite not having set specific deadlines, intends to dissolve the company in the future.
There have been no significant events affecting the Company since the year end.
The auditor, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARAGUAY ENERGY DISTRIBUCION LIMITED
We have audited the financial statements of Paraguay Energy Distribucion Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
We draw attention to note 2.2 in the financial statements, which explains that the directors have thave the intention to liquidate the Company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevantsections of this report.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevantsections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARAGUAY ENERGY DISTRIBUCION LIMITED (CONTINUED)
Except for the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work
undertaken in the course of the audit:
undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARAGUAY ENERGY DISTRIBUCION LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙General Data Protection Regulations; and,
∙UK tax legislation;
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the measures management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgments made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙The use of management override of controls to manipulate results, or to cause the Group to enter into transactions not in its best interests; or
∙Posting of unusual journals and complex transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PARAGUAY ENERGY DISTRIBUCION LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
4th Floor
95 Gresham Street
EC2V 7AB
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 16 form part of these financial statements.
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