Annual2008

8/7/2019 Annual2008

http://slidepdf.com/reader/full/annual2008 1/123

GHARIBWAL CEMENT LIMITED

Contents

Company Profile

Vision & Mission

Notice of Annual General MeetingStatement U/S 160 of the Companies Ordinance, 1984

Statement of Compliance

Statement of Ethics and Business Practices

Review Report to the Members

Directors’ Report to the MembersSummary of Last Ten Years’ Financial Results

Pattern of Shareholding

Auditors’ Report to the Members

Balance Sheet

Profit and Loss Account

Cash Flow StatementStatement of Changes in Equity

Notes to the Accounts

Form of Proxy

8/7/2019 Annual2008


1 ANNUAL REPORT

8/7/2019 Annual2008


2

3

4 56

7 8

9

10

11 15

16

17 18

19

20 21

22

23

24

25 55

57

8/7/2019 Annual2008


008

8/7/2019 Annual2008



Company ProfileBOARD OF DIRECTORS

Mr. Muhammad Tousif Peracha

Chairman & Chief Executive

Mr. Abdur Rafique KhanMrs. Tabassum Tousif Peracha

Mr. Ali Rashid Khan

Mrs. Amna KhanMr. M. Niaz Piracha

Mr. Asif Muhammad Ali AUDIT COMMITTEEMrs. Tabassum Tousif Pera

BANKERS Chairperson and Memb

Askari Bank Limited Mr. M. Niaz PirachaCitibank N.A.

Faysal Bank Limited Mr. Asif M. Ali

Habib Bank LimitedKASB Bank Limited CHIEF FINANCIAL OFFIMCB Bank Limited Mr. Waqar Naeem

My Bank Lim(Bolan Bank Limited)National Bank of Pakistan COMPANY SECRETARNIB Bank Limited

Mr. Abbas Rashid Siddiqi

Saudi Pak Commercial Bank LimitedThe Bank of Khyber AUDITORSThe Bank of PunjabThe Royal Ba (ABN AMRO Bank (Pakistan) Limited) M/s. Viqar A. Khan & Co.

Chartered Accountants

United Bank Limited

REGISTERED OFFICE INTERNAL AUDITORS34 Main Gulberg, P.O. Box 1285, Lahore. M/s. Aftab Nabi & Co.

Chartered AccountantsUAN : 042 111 210 310

Fax : 042 5871039 & 59E mail: [email protected] LEGAL ADVISOR

M/s. Bandial & Associates,

WORKSIsmailwal, Distt. Chakwal SHARES REGISTRAR

M/s. Corplink (Pvt.) Limite

WEBSITE Shares Registrar, Wings Ar

www.gharibwalcement.com 1K, Commercial,Model Town, Lahore.

Tel: 042 5887262, 5839182

Fax: 042 58690372 ANNUAL REPORT 2008

8/7/2019 Annual2008


ha

er

CER

Lahore.

dade,

8/7/2019 Annual2008



Vision StatementGHARIBWAL has been at the forefront in building a strong and solid

GHARIBWAL strives to ensure and maintain its excellence in the fielGHARIBWAL envisions that the administrative and financial reformsGHARIBWAL’s new cement plant, situated in the Punjab province nea

GHARIBWAL accordingly has a focused vision to rank high in perfor

Mission StatemenGHARIBWAL’s mission is to constantly seek excellence in all spheres oGHARIBWAL’s mission is to promote mutually satisfactory relationshi

3 ANNUAL REPORT 2008

8/7/2019 Annual2008


Pakistan being produced from the new cement plant shall strive

of

the

mance

PAIDAR CEMENT

ps

8/7/2019 Annual2008



Notice of AnnualNOTICE is hereby given that the 48th Annual General Meeting of the shareholders

Ordinary Business1 To confirm the minutes of the Extra Ordinary General Meeting (E.O.

held on 3rd December 2007.2 To receive, consider and adopt the Annual Audited Accounts of the

ended June 30, 2008 together with the Auditors’ and Directors’ Repo

3 To appoint the Auditors and to fix their remuneration. The retiring a

Khan & Co., Chartered Accountants are eligible for re appointment.

Special Business4 To renew and enhance the temporary short term advance facility fro

300.00 Million accorded by the Company to Balochistan Glass Limite“RESOLVEDthat the consent and approval of the members of the C

accorded under Section 208 of the Companies Ordinance, 1984 for reFURTHER R that Company Secretary be and is hereby authorized t

to the above resolution, take all necessary steps as required by the Co

Other Business

5 To transact any other business with the permission of the Chair.

The Statement Under Section 160(1)(b) of The Companies Ordinance, 1984, perta

By Order of t

Lahore : October 04, 2008 ABBAS RAS

Company Se

4 ANNUAL REPORT

8/7/2019 Annual2008


eneral Meetingof Gharibwal

.M.) of the Members

ompany for the year

ts thereon.

ditors M/s. Viqar A.

owever, Board Audit

Rs. 50.00 Million to Rs.

(BGL), an associatedmpany be and is hereby

ewal of the temporarygive effect

mpanies Ordinance, 1984

ining to the

e Board

ID SIDDIQI

retary

008

8/7/2019 Annual2008



Notice of AnnualNOTES:

1 The Register of Members and the Share Transfer Books of the Compafrom Saturday, October 25, 2008 to Friday, October 31, 2008 (both da

2 A member of the Company entitled to attend and vote at the Meetin

member as his/her proxy to attend and vote on his/her behalf. An in

3 CDC shareholders are requested to bring their original CNIC Card,

I.D. Numbers and will further have to follow the guidelines as laid d

4 Members are requested to quote their Folio Number in all correspon

attending the Meeting.

5 Members are requested to notify any change in their address / conta

to the Company’s Shares Registrar, M/s. Corplink (Pvt.) Ltd., Wings


8/7/2019 Annual2008


eneral Meeting

ny will remain closeds inclusive). Transfers,

may appoint another

strument appointing a

ccount and Participant

wn in SECP’s Circular

ence and at the time of

t numbers immediately

Arcade, 1 K, Commercial

8/7/2019 Annual2008



STATEMENT U/S 160 OF THE COMPANIES ORDINANCE, 1984

ITEM NO.4 TO ACCORD TEMPORARY SHORT TERM ADVANCE FACIL

Name of the investee Com – Balochistan Glass Limited (BGL) is an associated comOutstanding – Neither any advance is outstanding as at June 30, 2008 nor has any

Financial position of the investee comp – Based on the latest un audited financia

Rupees inMillion

Paid up Capital 858 Long Term Loans / Leases

and LiabilitiesShare Premium Reserve Nil

Sponsors' Loans long termAccumulated Loss 505.77

Fixed Capital Expenditure

Fixed Assets 1322.72Rate of mark – Mark up will be charged at a rate of 1 Long Term Loans & Deposi

Net Current Assets 354.12

Particulars of collateral sec – Management does not consider it necessary to obtainSource of fun – The advance will be advanced out of the Company’s available surRepayment s – The advance would be for a period of one year and would be renePersonal interest of the directors of GCL The directors of GCL are interested in t


8/7/2019 Annual2008


ITY TO BALOCHISTAN GLASS LTD.

pany of loan

l statements

Rupees inMillion

522.75

816.45

20.05

14.6

collaterallus funds.

ablee business to

8/7/2019 Annual2008



Statement of with the Code of

This Statement is being presented to comply with the Code of Corporate Governan

The Company has applied the principles contained in the Code in the following

1 The Company encourages representation of independent non executi

of Directors. At present, the Board includes four non executive direct

2 The directors have confirmed that none of them is serving as a directcompanies, including this Company.

3 To the best of our knowledge, all the resident directors of the Compa

taxpayers and none of them has defaulted in payment of any loan to

4 There were 4 casual vacancies in the Board during the year, which wup. The details are as under :

(a) Mr. Abdul Shoeb Piracha resigned as Director of the CMrs. Amna Khan was appointed as Director of the Co

(b) Mr. Aameen Taqi Butt resigned as Director of the ComMuhammad Ali was appointed as Director of the Com

(c) Mr. Muhammad Saleem Peracha was removed / retire

the E.O.G.M. held on 3rd December 2007 and in his pla(d) Mr. M. Ishaque Khokhar resigned as Director of the Company an

Rashid Khan was appointed as Director of the Compan5 The Company has prepared a “Statement of Ethics and Business Prac

signed by all the directors and employees of the Company.6 The Board has developed a vision and mission statement, overall cor

significant policies of the Company. A complete record of particulars

7 All the powers of the Board have been duly exercised and decisions

including appointment and determination of remuneration and term8 The meetings of the Board were presided over by the Chairman and i

Director elected by the Board for this purpose and the Board met at l

7 ANNUAL REPORT

8/7/2019 Annual2008


Complianceorporate Governance

ce contained in

manner:

ve directors on its Board

ors.

r in more than ten listed

ny are registered as

a banking company, a

re immediately filled

mpany and in his placepany on 30th October 2007 for

any and in his place Mr. Asif any on 22nd November 2007 for

as Director of the Company in

e Mr. M. Niaz Paracha wasin his place Mr. Ali

y on 5th December 2007 for thetices”, which has been

orate strategy and

of significant policies

n material transactions,

s and conditions of n his absence, by a

ast once in every quarter.

008

8/7/2019 Annual2008



9 In house orientation courses for the directors have been arranged forapprise them of their duties and responsibilities.

10 Mr. Iqbal Ahmed Rizvi resigned from the office of CFO & Chief Acco

on 31st October 2007 and his resignation was duly accepted by the B

11 The directors’ report for this year has been prepared in compliance wthe Code and it fully describes the salient matters required to be discl

12 The financial statements of the Company were duly endorsed by theCompany duly authorized for this purpose instead of CEO as the CE

13 The directors, CEO and executives do not hold any interest in the sha

than that disclosed in the pattern of shareholding.

14 The Company has complied with all the corporate and financial repoCode.

15 The Board has formed an Audit Committee. It comprises three memb

non executive directors including the Chairman / Chairperson of the16 The meetings of the Audit Committee were held at least once every q

of interim and final results of the Company and as required by the C17 The Board has out sourced the internal audit function to M/s. Aftab

Accountants, who are considered suitably qualified and experienced

18 The statutory auditors of the Company have confirmed that they havrating under the quality control review programme of the Institute o

19 The statutory auditors or the persons associated with them have not

other services except in accordance with the listing regulations and t

20 The management of the Company is committed to good corporate gosteps are being taken to comply with the best practices.

Dated : October 04, 2008

(ASIF MUHAMMAD ALI) (ABDUR RA

Director Director

Statement under Section 241(2) of the Companies Ordinance, 1984


8/7/2019 Annual2008


them during the year to

untant during the year

ard on that date. In his

ith the requirements of osed.

two Directors of theis out of Pakistan and

res of the Company other

rting requirements of the

ers, of whom two are

Committee. The Companyuarter prior to approval

de. The terms of referenceabi & Co., Chartered

for the purpose and are

e been given a satisfactoryChartered Accountants

een appointed to provide

e auditors have confirmed

vernance, and appropriate

IQUE KHAN)

8/7/2019 Annual2008



Statement of and Business

Introduction – Gharibwal Cement Limited is committed to all roun

Code of Conduct – Gharibwal Cement Limited steadfastly adheres to imEmployees – Gharibwal Cement Limited has a historical track record of outstan

Community – Gharibwal Cement Limited observes and pursues go

Quality Assurance – Gharibwal Cement Limited produces durable “Ordin

Public Relations – Gharibwal Cement Limited is an independent publicFinancial Reporting – Gharibwal Cement Limited deals with all its valued

Conclusion – Gharibwal Cement Limited shall ensure that this Stat

9 ANNUAL REPORT

8/7/2019 Annual2008


EthicsPracticesexcellence in the sphere of

lementing transparenting management

od community relations.

ary Portland Cement”

limited company, listed

take holders, especially

ement of Ethics & Business

008

8/7/2019 Annual2008



Review Report to theon Statement of Complian

of Code of Corporate

We have reviewed the Statement of Compliance with the best practices contained i

The responsibility for compliance with the Code of Corporate Governance is that o

As part of our audit of financial statements we are required to obtain an understan

Based on our review, nothing has come to our attention which causes us to believe

M/S. VIQAR A. KHANLahore: October 04, 2008 CHARTERED ACCOU


8/7/2019 Annual2008


emberse with Best Practicesovernance

n the Code of

f the Board of

ing of the

that the Statement

TANTS

8/7/2019 Annual2008



Directors’ Report to t

Your Directors have pleasure in submitting the Annual Report along with the audi

Operational Performance of the Old Cement PlantYour company has been in production since the early sixties operating with three k

Clinker Production M. Tons 2008

Cement Production M. Tons Nil

Despatches M. Tons Nil

The operation of the plant had become uneconomical and thus was closed during t

Operating ResultsThe Company has posted Loss per share of Rs.1.40 for the year ended June 30, 2008

During the year under review, the Company suffered Loss before Taxation of Rs.3

The management has tried to be frugal and has endeavored to control any wasteful


8/7/2019 Annual2008


e Members

ed financial

ilns based on

Nil 162124 2007

202225

201563

he year ending

as against Loss

3.082 million

expenditure.

8/7/2019 Annual2008



to match the fixed and semi variable expenses with sale revenues. The Rs. 363 milli

DividendsThe Board has not recommended any dividend for the shareholders for the year en

Future ProspectsIn 2005 your Company embarked on setting up a new 6700 TPD clinker production

By the Grace of Almighty Allah, the new plant began producing clinker from the 2

We are pleased to report th “PAIDAR CEMENT”


8/7/2019 Annual2008


on loss for the

ded June 30,

capacity plant

th of July 2008.

8/7/2019 Annual2008



Significant Plans & Decisions

(a) FinancialWe are pleased to report that the 3rd Right Share (R 3) issue of the Company comp

(b) Expansion Project In 2005 the company embarked on setting

(c) Manpower Transition and

The management of the Company hasFixed Assets RegisterDuring the financial year under review, the management has out sourced the up g

Corporate and Financial Reporting FrameworkThe management is fully aware of the compliance with Code of Corporate Govern

Statements as required by the Code are given below:

1 Presentation of Financial S – The financial statements prepared by tpresent fairly the Company’s state of affairs, the results of its operati

2 Books of Acc – Proper books of account have been maintained;

3 Accounting P – Appropriate accounting policies have been consisten

preparation of financial statements and accounting estimates are bas


8/7/2019 Annual2008


rising 60 Million

adation of the

nce and steps

e managementns, cash flows, and

ly applied in

d on reasonable and

8/7/2019 Annual2008



4 Compliance with International Accounting Standards (IAS)

Standards (IAS), as applicable in Pakistan, have been followed in pre

5 Internal Control System – The system of internal control is soundeffectively implemented and is being monitored continuously. The re

6 Going Concern – There are no doubts on the Company’s

7 Best Practices of Corporate Governance – There has bPractices of Corporate Governance, as detailed in the listing regulatio

8 Financial Highlights – Key operating and financial data of last

9 Outstanding Statutory Dues – There are no outstandinglevies and charges, which are outstanding as at June 30, 2008 except f

10 Statements of value of Staff Retirement Funds

Retirement Funds are as follows:

Gratuity Fund as at June 30, 2008 (Un audited)11 Board Meetings – During the year, 8 (eight) meetings of t

Attendance by each Director at the Board Meeting is as under:

Mr. M. Tousif Peracha

Mr. A. Rafique Khan

Mrs. Tabassum Tousif PerachaMr. A. Shoeb Piracha

Mr. M. Saleem PerachaMr. M. Ishaque Khokhar

Mr. Aameen Taqi ButtMrs. Amna Khan

(appointed Director in place of Mr. A. Shoeb Piracha resigned)Mr. Asif Muhammad Ali

(appointed Director in place of Mr. Aameen Taqi Butt resigned)

Mr. M. Niaz Paracha

(appointed Director in place of Mr. M. Saleem Peracha retired)

Mr. Ali Rashid Khan(appointed Director in place of Mr. M. Ishaque Khokhar resigned)

Mr. M. Ejaz Rasool

(Alternate Director to Mrs. Tabassum Tousif Peracha)Note: The Directors who could not attend the Board Meeting

absence from the Board in accordance with the law and this informat

14 ANNUAL

8/7/2019 Annual2008


– International Accountingparation of the financial

in design and has beenview will continue for

ability to continue as a going concern;

een no material departure from the Bestns wherever applicable

ten years is annexed;

payments on account of taxes, duties,or those disclosed in the– The value of investments/assets of Employees

Rs. 0.493 million.

e Board of Directors were held.

No. of Meetings Attended

7

8

31

05

44

3

1

0

2

were duly granted leave of

ion was duly noted in

REPORT 2008

8/7/2019 Annual2008



12. Trading in Comp’

During the year, shares purchased / sold / transferred / received by Directors, the

and minor children are given as under: No. of RighPurchased (

i) Mr. M. Tousif Peracha 40136442

(CEO / Chairman / Director)ii) Mr. A. Rafique Khan 9924981

(Director)

iii) Mrs. Salma Khan W/o A. Rafique Khan 26586

(Director)No. of Shar(Market)Purchased

i) Mr. Asif Muhammad Ali 500(Director)

iii) Mrs. Salma Khan W/o A. Rafique Khan 51000(Director)

No. of Shar(Face Value)Received

i) Mr. M. Tousif Peracha

(CEO / Chairman / Director)ii) Mrs. Amna Khan

(Director) 17933497

13. Pattern of ShareholdingThe Pattern of Shareholding and additional information required in this regard is eExternal AuditorsThe retiring auditors, M/s. Viqar A. Khan & Co., Chartered Accountants are eligiblAcknowledgementThe Board of Directors appreciates the financial institutions for extending their val

For and on behalf of the Board.

(ASIF MUHAMMAD ALI)Director

Lahore: October 04, 2008


15 ANNUAL REPORT

8/7/2019 Annual2008


ir spouses

Shares3) Sold

s

Sold

s

Transferred17933497

nclosed.

e for re

ed cooperation

(ABDUR RAFIQUE KHAN)Director

008

8/7/2019 Annual2008



Summary of Last Ten Years’ Financ

2008 2007 2006 2005

(Rupees in Thousands)

Trading Results

Turnover 521,716 1,588,439 1,469,504 1,164,889

Gross Profit /(75,230) (188,432) 274797 149619

Operating Pr (293,582) (334,508) 183656 71299

Profit / (Loss (363,082) (202,074) 170245 196378

Profit / (Loss (315,198) (222,916) 167155 188878

Balance Sheet

Shareholders 1,995,779 1,678,007 1,880,680 1,114,743

Operating Fix2,316,429 2,416,455 2,520,973 1,142,201 1,173,421 1,222,537 1,318,676 1,

Net current a479907 131917 94570 284,931 (231,7

Long term lia 5,873,548 4,349,215 450719 388563

Significant Ratios

Gross Profit 36.12 17.3 10.18

Net Profit Rat 38.7 10.52 12.85

Fixed Assets .22 .63 1.29

Debt : Equity 2.94 2.5 .24 .35

Current Ratio .7 1.12 1.14 1.67

Interest Cove 2.31 1.97 5.24 2.57


8/7/2019 Annual2008


ial Results

2004 2003 2002 2001 2000 1999

561,735 936,352 812227 969046 755305

95,641 (136,565) 1,523 (61,149) 121,134 (57,360)

47,999 (117,239) (54,311) (109,613) 70,124 (98,599)

112,894 (260,431) (162,717) (243,930) 18,768 (152,909)

115,323 (199,765) (156,916) (224,169) 44,465 (151,207)

66,875 (257,186) (487,068) (330,152) 66696 22231

347,281 1,015,398 1,083,123

68) (488,610) (343,124) (281,081) 128,748 (72,746)

752174 667,382 694,130 575912 443787 172775

8.21 24.31 .16 7.53 12.5 7.59

9.9 35.56 16.76 27.6 4.59 20.02

.99 .46 .71 .6 .95 .7

11.25 6.65 7.77

.51 .32 .47 .44 1.21 .77

3.57 1.65 .35 .57 1.36 1.77

8/7/2019 Annual2008



Pattern of SharehAs at June 30, 2008

Sr. Number of From Shareholdin To Total

No Shareholders Shares Held

1 824 1 100 328472 740 101 500 212442

3 358 501 1000 2734104 553 1001 5000 1333443

5 115 5001 10000 800520

6 34 10001 15000 430844

7 20 15001 20000 3551058 12 20001 25000 2706099 9 25001 30000 251778

10 5 30001 35000 164749

11 3 35001 40000 10739712 2 40001 45000 84718

13 7 45001 50000 33842314 3 50001 55000 158602

15 1 55001 60000 60000

16 1 60001 65000 6094517 1 65001 70000 69817

18 2 70001 75000 148251

19 1 75001 80000 8000020 2 80001 85000 164500

21 1 95001 100000 10000022 1 100001 105000 102500

23 1 115001 120000 11550024 1 125001 130000 127500

25 1 150001 155000 15374726 1 165001 170000 165937

27 1 185001 190000 189000

28 1 245001 250000 24650029 1 295001 300000 298660

30 1 415001 420000 420000

31 1 455001 460000 45650032 1 500001 505000 500074

33 1 505001 510000 50858634 1 545001 550000 546500

35 1 840001 845000 84318036 1 995001 1000000 1000000

37 1 1335001 1340000 1339000

38 1 1740001 1745000 174288539 1 2530001 2535000 2533691

40 1 2710001 2715000 271281941 1 3000001 3005000 3000061

42 1 3495001 3500000 3500000

43 1 4080001 4085000 408211244 1 4280001 4285000 4282112

45 1 5995001 6000000 6000000

46 1 6665001 6670000 666666647 1 16060001 16065000 16062541

48 1 17930001 17935000 1793349749 1 21735001 21740000 21739000

50 1 38355001 38360000 3835615551 1 90750001 90755000 90753294TOTAL: 2724 231876417

Categories of Number of

Shareholders Shares Held

Directors, Chief Executive Officer, and their spouse

8/7/2019 Annual2008


and minor childern 200673816Associated Companies, undertakings and

related parties. (Parent Company)NIT and ICP

Banks, Development Financial Institutions,

NonBanking Financial Institutions. 1828987

Insurance Companies 1072374Modarabas and Mutual FundsShare holders holding 10% or more 166515176

General Public

a. Local 19248266b. Foreign

Others (to be specified)1. Joint Stock Companies 629578

2. Foreign Companies 83642243. Associations 43637

4. Government Authority 14872

5. Others


8/7/2019 Annual2008


lding

Percentage

.0142%

.0916%

.1179%

.5751%

.3452%

.1858%

.1531%

.1167%

.1086%

.0711%

.0463%

.0365%

.1459%

.0684%

.0259%

.0263%

.0301%

.0639%

.0345%

.0709%

.0431%

.0442%

.0498%.055%

.0663%

.0716%

.0815%

.1063%

.1288%

.1811%

.1969%

.2157%

.2193%

.2357%

.3636%

.4313%

.5775%

.7516%1.0927%

1.1699%1.2938%

1.5094%

1.7605%1.8467%

2.5876%

2.8751%6.9272%

7.7341%9.3753%

16.5416%39.1386%

100.%

Percentage of

Shareholding

8/7/2019 Annual2008


86.5434%

0 0.0630 .0003%

.7888%

.4625%0 0.0

71.812%

8.3011%

.2715%

3.6072%.0188%

.0064%

33 0.0

8/7/2019 Annual2008



Pattern of ShAs at Jun

Additonal Information asCode of Corporat

Categories of

Shareholders

I Associated Companies, Undertakings & Related Parties

i. M/s. Astoria Investments Limited

ii. M/s. Topaz Holdings Limited

II NIT/ICP

i. Investment Corporation of PakistanIII Directors, Chief Executive Officer,

their Spouse and Minor Children

Directors

i Mr. Abdur Rafique Khan

ii Mrs. Tabassum Tousif Peracha

iii Mr. Ali Rashid Khaniv Mrs. Amna Khan

v Mr. Muhammad Niaz Paracha

vi Mr. Asif Muhammad AliChief Executive Officer

i. Mr. Muhammad Tousif PerachaDirectors’ Spouse

i. Mrs. Salma Khan W/O Mr. Abdur Rafique KhanIV Executives

V Public Sector Companies and Corporations

VI Banks, Development Finance Institutions,

Non Banking Finance Institutions,

Insurance Companies, Modarabas and Mutual Funds

VII Shareholders Holding Ten Percent or More Voting Interests

i. Mr. Abdur Rafique Khanii. Mr. Muhammad Tousif Peracha

(ASIF MUHAMMAD ALI)

Director

18 ANNUAL

8/7/2019 Annual2008


reholdinge 30, 2008equired by theGovernance

Number of Number of

ShareholdersShares held

2 8364224

1 4282112

1 4082112

1 630

1 630

8 200673816

1 38356155

1 6025

1 160625411 17933497

1 2330

1 500

1 128159021

1 153747NIL NIL

NIL NIL

18 2901361

2 166515176

1 383561551 128159021

(ABDUR RAFIQUE KHAN)

Director

REPORT 2008

8/7/2019 Annual2008



Auditors’ ReWe have audited the annexed balance sheet of GHARIBWAL CEMENT L

It is the responsibility of the company's management to establish and maintain a syWe conducted our audit in accordance with the auditing standards as applicable in

a) in our opinion, proper books of account have been kept by the comp

Companies Ordinance, 1984; except for fixed assets register which is

b) in our opinion:

i) the balance sheet and profit and loss account togetherdrawn up in conformity with the Companies Ordinanc

ii) the expenditure incurred during the year was for the p

andiii) the business conducted, investments made and the exp

were in accordance with the objects of the company;c) the Company has not provided for Rs. 201.864 million relating to the

Scheme in accordance with para 137 of IAS 19. This amount has been

d) in our opinion and to the best of our information and according to thus, except for the effect on the financial statements of matters referre

e) in our opinion, no Zakat was deductible at source under the Zakat an

(XVIII of 1980).

(M/S. VIQAR

Lahore : October 04, 2008 CHARTERE

19 ANNUAL REPORT

8/7/2019 Annual2008


ort to the MembersIMITED as at JUNE 30, and the related profit and loss account, cash flow statement and stat

stem of internalPakistan. These

ny as required by the

being maintained on non

ith the notes thereon, have been, 1984 and are in agreement with

rpose of the company's business;

nditure incurred during the year

Golden Handshake

disclosed as a contingent

explanations given tod to in the preceding JUNE 30, 200 and of the loss, its cash flows

d Ushr Ordinance, 1980

A. KHAN)

ACCOUNTANTS

008

8/7/2019 Annual2008


ment of changes in equity

8/7/2019 Annual2008



Bala

2008

Note (Rupees in thSHARE CAPITAL AND RESERVES

Authorized share capital250,000,000 (2007: 250,000,000) ordinary shares

of Rs. 10 each 2500000

Issued, subscribed and paid up share capital 4 2318764

General reserve 332000Accumulated loss 654985

1995779

SURPLUS ON REVALUATION OF FIXED ASSETS 5 1041449NON CURRENT LIABILITIES

Redeemable capital 6 399840Long term murabah finance 7 107041

Long term loans, finances and other payables 8 5138675

Long term foreign currency loans 9 Liabilities against assets subject to finance lease 10 107520

Long term deposits from customers 11 1150

Deferred taxation 12 113952Deferred liabilities 13 5370

5873548CURRENT LIABILITIES

Trade and other payables 14 482013Accrued interest / markup 15 311185

Short term loans and finances 16 192537Current portion of redeemable capital 160

Current portion of murabah finance 59467

Current portion of noncurrent liabilities 17 509681Taxes and duties 18 41444

1596487

CONTINGENCIES AND COMMITMENTS 19 10507263

The annexed notes 1 to 51 form an integral part of these financial statements.


(ASIF MUHAMMAD ALI)

Director


8/7/2019 Annual2008


nce Sheet

2007

usand)

) 2500000 )

) 1718764 )

) 332000 )372757

) 1678007 )

) 1074419 )

) 225000 )) )))))

) 3594943 )

))))) 188097 )) 172393 )

) 1225 )

) 161836 )) 5721 )

) 4349215 )

) 572513 )) 123834 )

) 298540 )) )))))

) )))))

) 99325 )) 29804 )

) 1124016 )

))))) )))))) 8225657 )

8/7/2019 Annual2008



as at June 30, 2008

2008

Note (Rupees in thPROPERTY, PLANT & EQUIPMENT

Operating fixed assets 20 2316429Capital workinprogress 21 6928369

Stores held for capital expenditure 22 74888

9319686

OTHER NON CURRENT ASSETS

Long term investments 23

Long term loans and advances to staff 24 1245Long term deposits and prepayments 25 54907

Deferred cost 26 1419270997

9390683

CURRENT ASSETS

Stores, spares and loose tools 27 262388Stock in trade 28 77753

Trade debtors 29 Loans and advances 30 507432

Trade deposits and short term prepayments 31 26956Accrued interest 32

Other receivables 33 85213Cash and bank balances 34 156506

1116580

10507263

(ABDUR RA


8/7/2019 Annual2008


2007

usand)

24164554439639

74888

6930982

653 942

17101898

3419238742

6969724

17631877753

))))) )))))194491

24386332 599

31454750932

1255933

8225657

IQUE KHAN)

Director

8/7/2019 Annual2008



Profit and Loss Acfor the Year ended June 30, 2008

2008

Note (Rupees in thSales net 35

Cost of sales 36 75230

GROSS LOSS 75230

General and administrative expenses 37 71778

Selling and distribution expenses 38 5408Other operating expenses 39 18277

95463170693

Other operating income 40 13281

157412

Finance costs 41 136170OPERATING LOSS 293582

Termination benefits 69500

Gain on sale of investment in an associate 69500

LOSS BEFORE TAXATION 363082

TAXATION

Current

Deferred 12 4788447884

LOSS AFTER TAXATION 315198

LOSS PER SHARE (RUPEES) 42 1.4

The annexed notes 1 to 51 form an integral part of these financial statements.Statement under Section 241(2) of the Companies Ordinance, 1984


Director


8/7/2019 Annual2008


count

2007

usand)))))) 521716 )

) 710148 )

188432

) 51957 )

) 3375 )) 10425

) 65757 )254189

) 32149 )

222040

) 112468 )

334508

)))))

))))) 132434 )132434 )

202074

))))) 2538 )

18304 )20842 )

222916

1.18

IQUE KHAN)

Director

8/7/2019 Annual2008



Cash Flow Statementfor the Year ended June 30, 2008

2008Note (Rupees in th

CASH FLOW FROM OPERATING ACTIVITIES

Cash (used)/generated by operations 43 678882

Financial charges paid 118499Taxes and duties paid

Gratuity payments 1280

Compensated absences paid 727

Prior years bonus paid Net decrease in long term loans and advances to staff 476Net increase in long term deposits and prepayments 5009

Net decrease in long term deposits from customersNet cash (outflow)/inflow from operating activities 803996CASH FLOW FROM INVESTING ACTIVITIES

Fixed capital expenditure 1280555Proceeds from sale of fixed assets 321 -Proceeds from sale of investments in associate

Security deposits paid against finance lease 48757Interest paid 353947

Interest received 4461

Net cash outflow from investing activities 1678477CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issuance of right shares 600000Proceeds from redeemable capital 175000

Payment of long term loans Proceeds of long term loans and finances 711831

Proceeds of long term murabah finance 166508Proceeds of director’s loans 432619

Repayment of directors’ loan

Repayment of foreign currency loans 188097Proceeds from lease finance net

Repayment of lease finance liabilities 35811

Dividend paid Short term finances net 25997Net cash inflow from financing activities 1888047NET (DECREASE)/INCREASE IN CASH AND

CASH EQUIVALENTS 594426CASH AND CASH EQUIVALENTS

at the beginning of the year 750932CASH AND CASH EQUIVALENTS

at the end of the year 34 156506



Director23 ANNUAL REPORT 2008

8/7/2019 Annual2008


2007usand)

268656 )

4041))))) 167950

)))))

13731

))))) 11252) 6426 )

532

75 85

77491 )

3604801) 900 ) )

293958

)))))))))) )

) 13621

3296322

) ) ))))) )225000

))))) 20638) ) 1788966 )

)))))) 1757990 )

))))) 10170

)))))))))) 43229 )

38999

))))) 12999) 80423 )

) 3812802 )

593971 )

) 156961 )

) 750932 )

IQUE KHAN)

Director

8/7/2019 Annual2008



Statement of Chafor the Year ended June 30, 2008

Particulars Share

Capital

(Rupees in thBalance as at June 30, 2006 1718764

Loss for the year ended

June 30, 2007 )))))Cash dividend out of profit for the year )))))

Surplus on revaluation of

fixed assets transferred:Incremental depreciation

charged during the year[net off deferred tax of )))))

Balance as at June 30, 2007 1718764

Right issue of 60,000 millionNo. of shares at Rs. 10 each 600000

Loss for the year ended

June 30, 2008 )))))

Surplus on revaluation of fixed assets transferred:

Incremental depreciationcharged during the year

[net off deferred tax of )))))Balance as at June 30, 2008 2318764

The annexed notes 1 to 51 form an integral part of these financial statements.


(ASIF MUHAMMAD ALI)

Director

24 ANNUAL REPORT

8/7/2019 Annual2008


ges in Equity

General Dividend Accumulated

Reserve Reserve Loss

usand)332000 13878 ) (183,962) 1,880,680

))))) ))))) 222916 222916

))))) 13878 )))))

))))) ))))) 34121 )

332000 ))))) (372,757) 1,678,007

))))) ))))) )))))

))))) ))))) 315198 315198

))))) ))))) 32970 )332000 ))))) (654,985) 1,995,779


Director

008

8/7/2019 Annual2008


Total

)

13878

34121 )

)

600000 )

32970 ))

8/7/2019 Annual2008



Notes to the Accountsfor the Year ended June 30, 2008

1 LEGAL STATUS AND OPERATIONS

The company was incorporated in Pakistan on December 29, 1960 as

its shares are quoted on Karachi and Lahore Stock Exchanges. It is prThe company has incurred a net loss of Rs. 315.198 million for the ye

The accumulated loss at that date was Rs. 654.985 million and curren

By the grace of Almighty Allah, the company has started trial prod

process gray cement plant of 6,700 TPD during July 2008. The differThe sponsoring directors, being the majority share holders of the Coterm loans amounting to Rs. 2.2 billion to the Company upto June 30,

The sponsoring directors of the company are confident that in view o

support to the Company and the commencement of commercial pro

Accordingly, these financial statements have been prepared on a goinot include any adjustments relating to the recoverability and classifi

2 STATEMENT OF COMPLIANCEThese financial statements have been prepared in accordance with apstandards as applicable in Pakistan. Approved accounting standards

3 SIGNIFICANT ACCOUNTING POLICIES

3.1. Basis of preparation

These accounts have been prepared under the historical cost conventicertain fixed assets have been included at revalued amounts and cert

3.2 Significant accounting judgments and estimatesThe preparation of financial statements in conformity with approved

as applicable in Pakistan, requires the use of certain critical accountin


8/7/2019 Annual2008


a Public Limited Company;

incipally engaged inr ended June 30, 2008.

liabilities exceeded

ction from its new dry

nt segments of thepany have injected long2008. Further, the

f their continuing financial

uction of the new dry

g concern basis and docation of recorded assets

proved accountingcomprise of such

on except thatain exchange elements

accounting standards,

g estimates. It also

8/7/2019 Annual2008



circumstances. These estimates and assumptions are reviewed on an ongoing basis.

The matters involving a higher degree of judgment or complexity, or areas where

assumptions and estimates are significant to the financial statements, are as under:a) determining the cost of defined benefit plan by actuaria

b) recognition of taxation and deferred tax (note 3.5);c) determining the appropriateness of the rate of deprecia

useful lives of property, plant and equipment (note 3.6d) impairment of assets (note 3.7);

e) impairment of inventories / adjustment of inventories

f) impairment of stores / adjustment of stores to their NR

g) impairment of financial assets (note 3.15).3.3 Standards, interpretations and amendments to published appare not yet effectiveThe following standards, interpretations and amendments of approved accounting

standards, effective for the company’s accounting periods beginning on or after JuPublications

i) IAS1 Presentation of Financial Statements Revised Seii) IAS23 Borrowing cost Revised Mar. 2007

iii) IAS27 Amendments Consolidated and separate finan

iv) IFRS3 (Revised)Business combinationv) IFRS7 Financial instruments

vi) IFRS8 Operating segments

vii) IFRIC 13 Customer loyalty programmesviii) IFRIC 15 Agreement for the construction of real estate

ix) IFRIC16 Hedges of a net investment in a foreign operaThese standards are not expected to have any material impact on the Company’s fi

statements other than an increase in disclosures in certain cases.

3.4 Employees benefitsa) Defined benefit plan

The Company operates a funded gratuity scheme for al

subject to completion of a prescribed qualifying period

The cost of defined benefit plan is determined using actvaluation involves making assumptions disclosed in no

Actuarial gains or losses are recognized as income or e

unrecognized actuarial gains or losses for each individb) Defined contribution plan

The company also operates a funded contributory provemployees. Equal monthly contributions are made by t

26 ANNUAL REPORT

8/7/2019 Annual2008


.

l valuation (note 3.4);

tion, residual value and

);

o their NRV (note 3.8);

V (note 3.9); and

roved accounting standards that

ly 01,Effective From

p. 2007 01Jan200901 Jan 2009

ial statements 01 Jul 2009

01 Jul 200928 Apr 2008

01 Jan 2009

01 Jul 200801 Jan 2009

tion 01Oct2008nancial

l its permanent employees

of service. Contribution to

uarial valuation. The actuarialte 14.2. Due to long term

pense when the cumulative

al plan exceeds 10% of the

ident fund scheme for itse company and the employees

008

8/7/2019 Annual2008



to the fund. Contribution of the Company is charged to the income f

c) Compensated absencesProvisions are made to cover the obligation for accumulated compenon the basis of actuarial valuation and are charged to income. Actuar

3.5 TaxationCurrentThe charge for current taxation is based on taxable income at current rates of taxatiafter taking into account tax credits and rebates available, if any.

Deferred

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assA deferred tax asset is recognized only to the extent that it is probable that future t

profit will be available and the credits can be utilized. Deferred tax assets are reduc

3.6 Property, plant & equipment and depreciationOwned

Operating fixed assets, except freehold land, are stated at cost or revalued amount

accumulated depreciation. Freehold land is stated at revalued amount. Capital wo

Borrowing cost during erection period is capitalized as part of the related assets.Depreciation is charged at the rates stated in note 20 applying reducing balance me

on all operating fixed assets except for plant and machinery on which it is based on

Gain/loss on disposal of fixed assets is taken to profit and loss account.

Normal repairs and maintenance are charged to income as and when incurred. Majimprovements and modifications are capitalized and assets replaced, if any, other t

LeasedAssets subject to finance lease are stated at the lower of present value of minimum

payments under the lease agreements and the fair value of the assets except for the

Depreciation is charged at the rates stated in note 20 applying reducing balance me

except for plant and machinery on which depreciation is charged on straight line m


8/7/2019 Annual2008


r the year.

sated absencesial gains and

on

etsxable

ed

less

k in

thod

orhan

lease

two

thod

ethod

8/7/2019 Annual2008



to write off the cost of the asset over its estimated remaining useful life in view of c

Financial charges and depreciation on leased assets are charged to income currentl

3.7 Impairment of assetsThe management assesses at each balance sheet date whether there is any indicatio

an asset is impaired. If any such indication exists, the management estimates the re

3.8 Stock-in-tradeBasis of valuation are as follows:

Particulars Mode of valuation

Raw materials At lower of annual average cost and net rWorkinprocess At cost.Finished goods At lower of cost and net realizable value.

Packing materials At lower of moving average cost and net

Cost in relation to work in process and finished goods represents the annual averamanufacturing cost which consists of prime cost and appropriate manufacturing o

Stock in trade is regularly reviewed by the management and any obsolete items arbrought down to their NRV.

Net realizable value signifies the selling price in the ordinary course of business les

necessary to be incurred to effect such sale.

3.9 Stores and sparesThese are valued at lower of moving average cost and net realizable value except it

in transit which are valued at cost accumulated to the balance sheet date. Stores, sp

3.10 InvestmentsInvestments intended to be held for less than twelve months from the balance shee

or to be sold to raise operating capital, are included in current assets, all other inveInvestments in associated company: investments in associated company are c

cost.Investments at fair value through profit or loss: All investments classified a

at fair value through profit or loss, are initially measured at cost being fair value of Investment available for sale: All investments classified as available forrecognized at cost being fair value of consideration given. At subsequent reporting


8/7/2019 Annual2008


ertainty

.

n that

overable

ealizable value.

realizable value.

geerheads.

s cost

em

ares

date

tmentsarried at

s investments

sale are initiallydates

8/7/2019 Annual2008



Investments held to maturity: Investments with fixed maturity that thehas the intention and ability to hold to maturity are classified as held to maturity a

3.11 Foreign currency translation

Assets and liabilities in foreign currencies are translated into Pak Rupees at rates o

exchange prevalent on the balance sheet date except those covered under forwardAll exchange differences arising from foreign currency transactions/translations ar

charged to profit and loss account except exchange differences arising from transla

3.12 Cash and cash equivalentsCash and cash equivalent consist of cash in hand and balances with banks.

Cash and cash equivalent included in cash flow statement comprise of cash in hanbalances with banks and temporary bank overdrafts.

3.13 Borrowing costsBorrowing costs directly attributable to the acquisition, construction or production

qualifying assets, which are assets that necessarily take a substantial period of time

3.14 ProvisionsProvisions are recognized in the balance sheet when the company has a present legconstructive obligation as a result of past events, it is probable that an outflow of re

Provisions are reviewed at each balance sheet date and adjusted to reflect the currebest estimate. If it is no longer probable that an outflow of resources embodying ec

3.15 Financial instruments

Financial assets are short term investment, certificate of investments, long term delong term loans and advances to staff, trade debtors, loans and advances and other

Financial liabilities are classified according to the substance of the contractual arraentered into. Significant financial liabilities are liabilities against assets subject to fi

Equity instruments are recorded at their face value. All incremental external costs

attributable to the equity transaction are charged directly to equity net of any relat

3.16 Related party transactionAll transactions with related parties are at arm’s length prices determined in accor

with the pricing method as approved by the Board of Directors.


8/7/2019 Annual2008


managementd are

e

ion

,

of

to

al orsources

ntnomic

osits,

gementsance

irectly

d

ance

8/7/2019 Annual2008



3.17 Revenue recognitionSales are recorded on dispatch of goods t

Interest income is accounted for on ‘accru

Dividend income is recognized when theestablished.

3.18 Off setting of financial assets and liabilitiesFinancial assets and financial liabilities are set off and t

financial statements when there is a legally enforceable

3.19 Deferred costAll deferred costs including discount on issue of shares

05, 2004 are amortized over a period of five years in acc3.20 Leases

Finance leasesLeases that transfer substantially all the risks and rewa

asset is classified as finance lease. Assets on finance lea

Operating leases

Leases in which a significant portion of the risks and re

by the lessor are classified as operating leases. Payment

4 ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITALOrdinary shares of Rs. 10 each fully paid:

158445000 158445000

60000000 218445000 158445000

13431417 13431417231876417 2008 171876417 2007

Nos. Nos.

4.1 Shares of the Company held by foreign associated undof Nevis:

Astoria Investment LimitedTopaz Holdings Limited

8/7/2019 Annual2008


customers.

al basis’.

company’s right to receive payment is

e net amount is reported in the

right to set off and the company

incurred and deferred before July

ordance with the provisions of

ds incidentals to ownership of an

e are capitalized at the

wards of ownership are retained

s made under operating leases

In cash 1584450 1584450Issue of fully paid rigth share

)))))) during the year 600000 2184450 1584450

fully paid bonus shares 134314 1343142318764 2008 1718764 2007

(Rupees in thousand)

rtakings incorporated in Island

4282112 42821124082112 4082112

8364224 8364224

2008 2007

Nos. Nos.


8/7/2019 Annual2008


))))))

8/7/2019 Annual2008



4.2 A Right Shares Issue (R 3) of 34.908% (60 million rightpar) was announced by the Board of Directors of the C

5 SURPLUS ON REVALUATION OF FIXED ASSETS

Opening balance

Surplus transferred to retained earnings (accumulated loss):Incremental depreciation charged during the year

[net off deferred tax of Rs. 17.753 million

(2007:Rs.18.37 million)]

Revaluations of freehold land, buildings, plant & machinery includinrailway sidings were carried out during June 2006 and March 1993 w

6 This represents redeemable capital in the form of Privately Placed Te

(PPTFC) issued on January 18, 2008 to the financial institutions aggre

Interest on these PPTFC is charged at the same rate as mentioned inthe date of issuance. This redeemable capital is secured by way of fix

7 This represents Murabaha finance facility availed out of total availabl

from Faysal Bank Ltd. for import of coal mill for new dry cement pla

31 ANNUAL REPORT

8/7/2019 Annual2008


hares at Rs. 10 per share i.e. atompany in their meeting held on

2008 20071074419 (Rupees in th )

32970 34121

1041449 ) )g heavy vehicles andhich produced surplus

rm Finance Certificates

gating to Rs. 400 million

receding paragraph tilled deposit of Rs. 10

e facility of Rs.215 million

t. This finance is repayable

008

8/7/2019 Annual2008



8 LONG TERM LOANS, FINANCES AND OTHER PAYABLEBanks and financial institutions secured

Saudi Pak Commercial Bank Limited

Saudi Pak Industrial & AgriculturalInvestment Co. Limited

Orix Investment Bank (Pakistan) LimitedFirst Credit and Investment Bank Limited

Syndicate Term Finance

The Bank of Punjab

Pak Brunie Investment Company LimitedThe Bank of Punjab Letter of credit payableAskari Bank Limited

KASB Bank Limited

Un secured Loans and other payable

Directors’ loansOther

Less: Current portion grouped under current liabilities

8.1 This represents the balance of demand finance limit of

over a period of six years (including one year’s grace p8.2 This represents the balance of demand finance limit of

over a period of five years (including one year’s graceThe finances at 8.1 and 8.2 above carries mark up @ KI

+ 5% p.a. with a floor of 10% p.a. and with no cap. The8.3 These represent the balance of term finance facility agg

to note 8.4). This finance carries mark up @ KIBOR (six8.4 During the year ended June 30, 2005, the Company ent

a consortium of financial institutions lead by Orix Inve

According to the agreement, Rs. 320 million has been c

following manner:

by way of lease finance (note 10)by way of term finance (note 8.3)

by the Company

This finance arrangement is secured by way of first parcompany’s assets to the extent of Rs. 426.67 million.

32 ANNUAL

8/7/2019 Annual2008


2008 2007Note (Rupees in thousand)

8.1 26000 32500

8.2 13125 16875

8.3 17368 205268.3 4737 5790

8.5 1545258 1538966

8.6 350000 )))))

8.7 250000 )))))8.8 644285 )))))8.9 120000 )))))

8.1 132000 )))))

3102773 1614657

8.11 2200109 17674908.12 250000 250000

5552882 3632147

17 414207 372045138675 3594943

s. 65 million and is repayable

riod) in twenty quarterlys. 30 million and is repayable

eriod) in sixteen quarterlyOR (six months average ask rate)

e finances are secured by wayregating to Rs. 40 million (referred

month average ask rate) + 6%red into a finance agreement with

tment Bank Pakistan Ltd. (Orix)

ntributed for the purpose in the

25000040000

30000320000

i passu mortg (Rupees in thousand)

REPORT 2008

8/7/2019 Annual2008



Rs. 6 million was paid by a foreign associated company to the suppli(Refer to Note 9.2).

8.5 This represents disbursements against term finance facility of Rs. 1.5

from a consortium of financial institutions lead by Saudi Pak LeasingThis finance carries mark up @ KIBOR (6 months ask rate) + 5.5% p.a

p.a. and no ceiling. The principal amount shall be repaid in five years8.6 This represents demand finance facility obtained to meet the cost ove

cement project of 6700 TPD. The said loan is repayable over a period

8.7 Company intends to issue privately placed Sukuk certificates of Rs.2.

future to be arranged by the consortium of financial institutions. Aga

The said loan is repayable in July 2009 by a bullet payment and carriemonth KIBOR + 3.0% p.a on quarterly rests. The facility is secured by

8.8 This represents payable against Letter of credit usance facility of 720

the Bank of Punjab upto Rs.544 million being 90% of import cost of 3

8.9 This represents disbursement against sale of packing plant machinerplant under a sale and lease back transaction entered with Askari Ba

8.10 This represents a frozen short term bridge loan carrying mark up @ KIBOR (thask rate) + 4% p.a(2007:KIBOR(three months ask rate)+5%) payable o

8.11 These are loans obtained from sponsoring directors of the company. They incl

Rs.166.508 million (2007:Rs.216 million) which is subordinated to the8.12 This loan was obtained from a past associated company and had to be repaid

June 30, 2008. Initially this loan carried a mark up @ 10% p.a., howev


8/7/2019 Annual2008


rs of these generators

8 billion obtained

Co. Ltd. to finance. with floor of 8.5%

including two yearsr run of new dry

of three years

5 billion in foreseeable

inst the issuance

s mark up @ 6 way of joint firstays obtained from

dual fuel power

for new dry cementk Ltd. The security

ree monthsn quarterly basis

de

payment of financeuring

r, on the request

8/7/2019 Annual2008



of the company, the past associated company agreed n

9 LONG TERM FOREIGN CURRENCY LOANS NoteAssociated undertakings un secured

Infiniti Continental Inc. 9.1Orion Shipping & Trading Limited 9.2

9.1 This represented three loans aggregating GBP 833,600

during the year ended June 30, 2002 for the purpose of

Interest was payable on biannually basis on the outstaof six months LIBOR + 1%. The payment of these foreig

9.2 This represented US$ 900,000 and US$ 429,828 payable

press plant & machinery and coal firing system while t

These foreign currency loans were interest free and thesubordinated to the payment of finances obtained from

10. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASEPresent value of future minimum lease payments due:

not later than one year

later than one year and not later than five years

Less: Current portion grouped under current liabilities:Overdue installments

Installments due within following twelve months17

Reconciliation of MLPs with present value of MLPs:

Minimum lease payments due:

not later than one year

later than one year and not later than five years

Financial charges:

accrued but not paidallocated to future lease payments

Less: Security deposits adjustableon expiry of lease terms

Present value of future minimum lease payments

34 ANNUAL REPORT

8/7/2019 Annual2008


t to charge any further mark up

2008 2007


)))))) 101449)))))) 86648

)))))) 188097

btained through one of its director

repaying Pak Rupee loan obtained

ding principal amount at the raten currency loans was subordinatedagainst supply of complete filter

e remaining US$ 100,000

payment of these loans werefinancial institutions.

95474 62121

107520 172393202994 234514

28689 6990

66785 5513195474 62121

107520 172393

140292 101843

157493 242325297785 344168

18097 879944405 68999

62502 77798235283 266370

32288 31856

202995 234514

008

8/7/2019 Annual2008



Lease finance facility of Rs. 250 million had been obtained to finance the import valbased electric power generators (Refer to Note 8.4). The present value of minimum

For the remaining leases the implicit rate used as discounting factor ranges from 8

p.a. and these leases are secured against security deposits of Rs. 32.288 million and

The company intends to exercise its option to purchase the leased assets upon comthe respective lease terms.

11. LONG TERM DEPOSITS FROM CUSTOMERSThese represent interest free securities received from dealers which are refundable

of dealerships (Refer to Note. 34.1).

2008

Note (Rupees in th

12. DEFERRED TAXATIONDeferred tax on taxable temporary differences:Accelerated depreciation for tax purposes 398086

Leased assets 66126

464212Deferred tax on deductible temporary differences:

Lease finance liabilities 71048

Provisions 898280030

384182Deferred tax on available tax losses 270230

Net deferred tax liability 113952

Deferred tax (gain)/expense transferred tothe profit & loss account 47884

13. DEFERRED LIABILITIESAccumulated compensated absences 13.1 3426

Frozen termination benefits 13.2 1944

5370


8/7/2019 Annual2008


ue of gaslease

to 24%

personal

letion of

on termination

2007

usand)

) 415384 )

) 71809 )

) 487193 )

82080

826490344

) 396849 )235013

) 161836 )

18304 )

) 3777 )

) 1944 )

) 5721 )

8/7/2019 Annual2008



2008Note (Rupees in thousand)

13.1 Movement in the liability recognizedin the balance sheetNet liability at the beginning of the year 3777

Expense recognized in income statement 376Contribution to the fund by the company 727

3426Reconciliation of the present value of

defined benefit obligation

Present value of defined benefit obligations opening 3777

Current service cost 142Interest cost 378Benefits paid 727

Actuarial gain on PVDBO 144

Present value of defined benefit obligations closing 3426Expense recognized in profit and loss account

Current service cost 142Interest cost 378

Actuarial gain 144

376

Principal actuarial assumptionsThe latest actuarial valuation was carried out as at June 30, 2008 under the ‘Projecte

Unit Credit Method’. The main assumptions used for actuarial valuation are as follDiscount rate 12% p.a.

Expected rate of future salary increase 11% p.a.Average number of leaves accumulated per year

life time of employees 7 days

13.2 Frozen termination benefitsThese are termination benefits which are frozen on the reappointment of three emwho had accepted golden handshake offered by the company and shall be paid wh

14. TRADE AND OTHER PAYABLESCreditors 235321Retention money 127040

Accrued liabilities 56113

Advances from customers 10459Due to employees )))))

Due to directors )))))Due to Workers’ Profit Participation Fun 14.1 16010

Due to gratuity fund trust 14.2 22238Due to provident fund trust 2734

Unclaimed dividend 146

Interest free deposits:Repayable on demand 1723

Others 39475670

Others 6282


8/7/2019 Annual2008


2007

) 16586 )

) 922 )13731

3777 )

) 16587 )

) 718 )) 1493 )

13732

1289

) 3777 )

) 718 )) 1493 )

1289

) 922 )

d

ows:) 10% p.a. )

) 9% p.a. )

) 8 days )

loyeesen

) 248958 )) ) 108154 ) )

157920

) 10459 ) )411

160 )) ) 15178 ) )

19834) ) 879 ))))) )

) 2810 )

) 3053 )) 5863 )

) 4697 )

) 572513 )

8/7/2019 Annual2008



2008(Rupees in th

14.1 Workers’ (profit) participation fundOpening balance 15178

Interest on funds utilized by the company 2960

18138Less: Amount paid during the year 2128

16010

14.2 Due to gratuity fund trust

The amounts recognized in the balance sheet on account of defined benefit plan i.e.gratuity are as follows:Movement in the liability recognized

in the balance sheet

Net liability at the beginning of the year 19834

Expense recognized in income statement 3684Contribution to the fund by the company 1280

22238Reconciliation of the liability as at June 30, 2008

Present value of defined benefit obligations as at June 30 21635

Fair value of plan assets 492

Unrecognized actuarial gain 109522238

Reconciliation of the present value of

defined benefit obligation

Present value of defined benefit obligations opening 19694Current service cost 1784

Interest cost 1969Benefits paid 1280

Loss due to settlements

Actuarial gain on PVDBO 532Present value of defined benefit obligationsclosing 21635Expense recognized in profit and loss account

Current service cost 1784Interest cost 1969

Curtailment or settlement Expected return on plan assets

3684


8/7/2019 Annual2008


2007usand)

) 15178 )

) )))))

) 15178 )) )))))

) 15178 )

) 5442 )

) 14392 ))))))

) 19834 )

) 19694 )

578

) 718 )) 19834 )

) 71568 )) 4903 )

) 6441 )62020

))))) 1131 )

2329) 19694 )

) 4904 )) 6441 )

))))) 9128 )69 6081

) 14392 )

8/7/2019 Annual2008



Salaries, wages and benefits appearing under heads of cost of sales, general andadministrative & selling and distribution expenses include the following amounts

Cost of sales

General and Administrative expensesSelling and distribution

Reconciliation of fair value of plan assets

Fair value of plan assets as at June 30

Contribution to the fund by the Company

Benefits paidLoss due to settlementExpected return on plan assets

Actuarial gain

Fair value of plan assets as at June 30Plan assets comprise of:

Debt instrumentCash & Bank

Actual return on plan assets

Expected return on plan assets

Actuarial gain

Principal actuarial assumptionsThe latest actuarial valuation was carried out as at June 30, 2008 under the ‘Projecte

Credit Method’. The main assumptions used for actuarial valuation are as follows:Discount rate

Expected rate of future salary increaseExpected rate of return

Average expected remaining working

life time of employees

2008 2007

(Rupees in thPresent value of defined

benefit obligationsas at June 30 21635 ) 19694

Fair value of plan assetsas at June 30 492 578

Deficit 21143 ) 19116


8/7/2019 Annual2008


n

2008 2007

(Rupees in thousand)1842 ) 12456

1105 ) 1653737 ) 283 )

3684 ) 14392

579 ) 67568

1280 ) )))))

1280 65074))))) 799669 ) 6081

155 )))))

493 ) 579 )

466 ) 465 )27 ) 114 )

493 ) 579 )

69 ) 6081

155 )))))

86 6081

d Unit

12% p.a. ) 10% p.a. )

11% p.a. ) 9% p.a. )10% p.a. ) 9% p.a. )

13 years ) 13 years )

2006 2005 2004

usand)

) 71567 ) 70528 ) 64439 )

67568 62221 60017

) 3999 ) 8307 ) 4422 )

8/7/2019 Annual2008


)

)

)

)

)

)

)

8/7/2019 Annual2008



15. ACCRUED INTEREST / MARK UPInterest / mark up / profit payable on:

Redeemable capital

Long term murabah financeLong term loans and finances

Long term foreign currency loansLease finances

Short term borrowings

16. SHORT TERM LOANS AND FINANCESBanks secured

Saudi Pak Commercial Bank Ltd. (SPCBL)

First Credit & Investment Bank Ltd.

KASB Bank LimitedBridge loan

Running financeNational Bank of Pakistan

Others unsecured

Temporary bank over draft

Others provident fund

16.1 This represents balance of a existing running finance facility of Rs. 43 million e

upto Rs.58 million subsequent to the balance sheet date (2007: Rs. 160 million) carrThe following facilities are also available as at the year end from SPCBL:

Letter of credit 80000 Approved li

Letter of guarantee 102000 2008 102000Rs. ‘000’ Rs. ‘000’

These facilities are secured against ten percent cash margin and lien on import doc

LGs are also secured by counter guarantee of the Company.

16.2 This short term bridge loan is repaid during the year that carried mark up @ Kmonths ask rate) + 3% p.a payable on quarterly basis. The facility was secured by

16.3 This represents a short term bridge loan (Refer to note 8.10).16.4 This represents balance of a running finance facility of Rs.60 million (2007: Rs.

carrying mark up @ KIBOR (six months average ask rate) + 3% p.a with a floor of 1


8/7/2019 Annual2008



22910 ) 25655

6413 )239851 ) 66300

))))) 957218097 ) 8812

23914 ) 13495

311185 ) 123834

16.1 27687 ) 42705

16.2 ))))) 48000

16.3 ) 132000

16.4 59435 ) 5999216.5 49922 )

137044 ) 282697

16.6 39650 )

16.7 15843 ) 15843

192537 ) 298540xtended

ing

80000 ))))2007 101959 101959

Rs. ‘000’ Rs. ‘000’

ment.

IBOR (sixay

100 million)

2%

8/7/2019 Annual2008


)

))))))

))

)

)

)

)

)

))))))

)

)))))

)

)

8/7/2019 Annual2008



The following facilities are also available as at the year end from KASB Bank LimitApproved limit

2008 2007

Rs. ‘000’ Rs. ‘000’

Letter of credit 132000 394670FIM 132000 -Letter of guarantee 176000 175306These facilities are secured against 5% 10% cash margin, lien on import document

pledge of imported goods and ranking charge on plant & machinery for Rs.150 mil

16.5 This represents balance of a cash finance facility of Rs.50 million (2007: Rs. Nil)

mark up @ KIBOR (three months average ask rate) + 3% p.a payable on quarterly16.6 This represents cheques issued in excess of the current account balance as at bdate but not presented for payments in the bank as at close of the financial year.

16.7 This represents the utilized amount of the total short term finance facility of R

million (2007: Rs.17.5 million) availed from the Gharibwal Cement Employees Pro

Note

17. CURRENT PORTION OF NON CURRENT LIABILITIESLong term loans, finances and other payables 8

Liabilities against assets subject to finance lease 10

18. TAXES AND DUTIESProvision for taxation 18.1Excise duty 19.1

Local taxes

Income tax deducted at source payableExcise duty on raw material

Royalty on raw material

18.1 (a) Income tax assessments of the company have been com

ended June 30, 2007 (tax year 2007).(b) In view of available tax losses and “nil” revenue from o

stated in note 48, provision for current year taxation ha

40 ANNUAL REPORT

8/7/2019 Annual2008


d: Facility utilized

2008 2007

Rs. ‘000’ Rs. ‘000’

40999

175306 175306,

lion

carrying

asis.lance sheet

. 17.5

ident

2008 2007


414207 37204

95474 62121

509681 99325

2876 104391760 1760

5773 5773

28655 10014201 75

2179 1743

41444 29804pleted upto the income year

perations due to the reason

s not been made in these

008

8/7/2019 Annual2008



2008(Rupees in thousand)

(c) Tax charge reconciliation

Loss before ta 363082

Tax effects of amounts that are:Deductibl 26563

Not dedu 48777 )Tax effect of 270230

248016

Minimum tax liability provided in accountsas per Income )))))

19. CONTINGENCIES AND COMMITMENTS

19.1 Excise duty arrears demand of Rs.16.276 million in respect of capacity product1966 67 to 1973 74 made by the Central Excise and Land Customs Department had

19.2 The Company filed a writ petition in the Lahore High Court (the Court) againof export tax on raw materials by District Council, Chakwal (the Council) and refu

The Court further directed the Council to refund to the Company the sum of Rs.45.

million recovered from it during the period from 1985 86 to 1996 97.The Lahore High Court Rawalpindi Bench vide its order dated March 17, 1997 on a

revision application by the Council, suspended the operation of the judgment date

19.3 District Council Chakwal served notices dated July 25, 1998 and August 05, 1

whereby the Company had been directed to deposit an amount of Rs. 5.4 million b19.4 The Company, through a writ petition, challenged the refusal of IESCO in acce

decision by the Electric Inspector and Advisory Board in favour of the Company wIESCO, however, has filed civil petition for leave to appeal along with application

suspension of operation of the aforementioned order of the Lahore High Court, bu


8/7/2019 Annual2008


2007

202074

43989

57973 )235013

221029

2646 )

ion periodnot

t impositiond of

948

998,

ingpting the

hereinor

8/7/2019 Annual2008



19.5 The Company has also filed an appeal before the Secretary Industries and MinDevelopment against imposition of 5% penalty on outstanding royalty in respect o

19.6 The Golden Handshake Scheme (GHS) was offered by the company to its emp

during the year ended June 30, 2007. Out of total 537 employees, 349 employees ha

19.7 Guarantees given by banks on behalf of the Company to Sui Northern Gas PiLimited outstanding as at June 30, 2008 aggregated to Rs. 547.265 million that inclu

19.8 Guarantee given by a commercial bank on behalf of the Company to Sindh Hioutstanding as at June 30, 2008 aggregated to Rs. 41.76 million. This facility is secur

19.9 Appeals are pending adjudication before the Collector (Appeals) Islamabad ag

demands of Central Excise Duty and Sales Tax amounting to Rs.313.618 million an

19.1 (a) The Company has issued a post dated cheque of Rs.25.bank in favour of Collector Customs for the differential

(b) A post dated cheque of Rs.12.718 million is issued in fa

for the differential amount of duties in respect of clearaThe management of the company is of the view that th

above cases shall be in the favour of the Company on t19.11 Corporate guarantees given by commercial banks on behalf of Com

with issuance of PPTFC outstanding as at June 30, 2008 aggregated to Rs. 426 milli

19.12 Commitments in respect of capital expenditure

were outstanding on account of:

a) Wet process cement plantb) New dry process cement project

c) Dual fuel electric power generators

42 ANNUAL

8/7/2019 Annual2008


eralf

loyees

d

elinesdes

h Courted

ainst the

d

28 million from a scheduledamount of duties in respect

our of customs authorities

nce of imported cable fromultimate outcome of the

e legal grounds of the cases.any in connection

n

25000 )))))147600 1302950

))))) 479159172600 1782109

2008 2007


REPORT 2008

8/7/2019 Annual2008



20. OPERATING FIXED ASSETS - TANGIBLE

COST / REVALUATION

Particulars As at Additions Disposals As at

01072007 during during 30062008

the year the year

Owned assets

Land freehold

Cost 52592 2930 55522

Revaluatio 529623 529623582215 2930 585145

Buildings & foundations

on freehold land

Cost 194033 194033Revaluatio 268688 268688

462721 462721On leasehold land

Cost 3424 3424

Revaluatio 14616 14,61618040 18040

Heavy Vehicles

Cost 99591 99591Revaluatio 62790 62790

162381 162381Plant and machinery

Cost 1080673 1,080,673Revaluatio 1000136 1,000,136

2080809 2,080,809Railway sidings

Cost 889 889

Revaluatio 8450 84509339 9339

Roads 4847 4847

Loose tools 1403 1403Furniture, fixtures and

other office 40781 430 41,211Transport ass 33153 1726 31427

3395689 3360 (1,726) 3,397,323Assets subject to

finance lease:

Plant and ma 386271 386271Heavy vehicl 4495 4495

Vehicles 10947 5097 16044401713 5097 406810

TOTAL 2008 3797402 8457 (1,726) 3,804,133

TOTAL 2007 3784818 13791 (1,206) 3,797,40320.1 Vehicles subject to finance lease include vehicles of Rs. 2.78 million (2007: Rs. 2

transacted benami in the name of four employees of the company.

20.2 The process of reconstruction of the fixed assets register has been initiated duryear through outsourcing the services of professionals for the purpos

20.3 A fresh revaluation of the Company’s freehold land, building, railway siding,vehicles and plant and machinery situated at its plant site, was made


8/7/2019 Annual2008


DEPRECIATION

Rate Written down

% Accumulated Charge Adjustment AccumulatedValue as at

as at for the on disposals/ as at 30062008

01072007 year transfers 30062008


55522

529623 585145

510 119486 7216 126702 67331510 159073 9909 168982 99706

278559 17125 295684 167037

510 3227 19 3246 178

510 8763 583 9346 527011990 602 12592 5448

20 95400 838 96238 335320 35936 5371 41307 21483

131336 6,209 137545 24836

5 558519 26108 584627 4960465 307769 34618 342387 657749

866288 60726 927,014 1,153,795

7 889 889

7 4991 242 5233 32175880 242 6122 3217

5 2731 106 2837 2010

10 1298 11 1309 94

10 26918 1419 28337 1287420 27528 852 1436 26944 4483

1352528 87292 (1,436) 1,438,384 1,958,939

5 22532 18187 40719 34555220 2194 460 2654 1841

20 3693 2254 5947 1009728419 20901 49320 3574901380947 108193 (1,436) 1,487,704 2,316,429

1263845 117691 (589) 1,380,948 2,416,455.78 million)

ing thee. The management

heavyas at June 30, 2006

8/7/2019 Annual2008



20.4 Detail of vehicles sold during the year

Accumulated

Description Cost Depreciation


Honda Civic 1316 1040

LXZ 7494

Mazda 411 396

SAC 51511727 1436

20.5 The following assets have been transferred to owned assets on expiry of the le

during the period mentioned there against. However, transfer of ownership of the

Year of expir

Plant & machinery June 30, 2001

Vehicle June 30, 2004

Plant & machinery June 30, 2004Vehicles June 30, 2005

Plant & machinery June 30, 2005

Plant & machinery June 30, 2007Vehicles June 30, 2007

20.6 Depreciation has been allocated as under :Cost of sales

Cost of sales fuel & power (electricity)General and administrative expenses

Selling and distribution expenses

Capital work in progress Dry cement plant

44 ANNUAL

8/7/2019 Annual2008


Written Sale Mode of Particulars of

Down Proceeds Disposal Purchaser

Value

276 276 Negotiation Mr. Shoeb A. Piracha

(ex director of the Company)12/A Zahoor Afridi Road

Lahore Cantt.

15 45 Negotiation Mr. Hameed Ullah Khan

Tehsil & district D.I Khan291 321se term

assets

Cost Acc. Dep. Carryingof lease value

(Rupees in thousand)20633 12182 8451

1206 588 618

20900 10248 106522641 1289 1352

183988 80777 103211

108000 16200 918001794 875 919


36 61939 66234

42323 4754637 2290 2352

38 290 471

1351 1088108193 117691

REPORT 2008

8/7/2019 Annual2008



2008Note (Rupees in thousand)

21. CAPITAL WORK-IN-PROGRESS

Civil works and buildings 1663

Dry cement plantCivil works 1343477

Plant & machinery 21.1 3485232Borrowing cost 21.2 790897

Advances to suppliers considered good 61001

Other BMR/Expansion costs 21.4 422510

6103117Dual fuel electric power generation plantCivil works 4597

Plant & machinery 21.3 752044

Borrowing cost 58104Advances to suppliers considered good )))))

Other BMR/Expansion costs 21.4 7304822049

Wet process plant

L/c in process for packing plant 15406928369

21.1 This includes import value plus ancillary cost of machinery of new dry cement

having manufacturing capacity of 6700 TPD of grey cement (2007:machinery in tra21.2 This includes interest amounting Rs.269.13 million (2007:Rs. 37 million ) paid o

term loan obtained from sponsoring directors to meet the liquidity needs towards t21.3 This represents import value and ancillary cost of three dual fuel electric powe

from Wartsila Finland that were received during the year (referred to note 8.8). Th21.4 These represent management and other directly attributable capital expenditu

in connection with the construction and installation of above mentioned projects.21.5 Subsequent to the balance sheet date, the Company started trial run of the abo

dry process cement plant of 6700 TPD clinker capacity to enable the plant for com

22. STORES HELD FOR CAPITAL EXPENDITUREThis includes an aggregate amount of Rs. 74.888 million (2007: Rs. 74.888 million) b

cost of filter press machinery acquired to convert the old manufacturing process fr


8/7/2019 Annual2008


2007

1663

1035859

2842970219349

104008

120625

4322811

4070

5172

5198851937

1998115165

)))))4439639

plant

sitn long

her generators

seres incurred

e mentioned

ercial

eing the

m wet to

8/7/2019 Annual2008




23. LONG TERM INVESTMENTSInvestment at fair value through profit or loss

Cost of acquisition 1161

Less: Provision for diminution in valueFair value

24. LONG TERM LOANS ANDDirector 24.1

Employees 24.2 2033

2033Less: Current portion shown under current assets 30

1245

24.1 The above loan has been repaid by director during the year.24.2 These represent loans given for the purposes of house building, purchase of m

/ motor cycles, house repair loans and emergency loans. House building and vehic24.3 Maximum aggregate balances due from the director and executives during the

Rs. 360 thousand and Nil (2007: directors Rs. 360 thousand and executives Rs. Nil)

25. LONG TERM DEPOSITS & PREPAYMENTSSecurity deposit rented premises 5038

Security deposits trade 1466Other deposits 25.1 48403

54907

25.1 It includes Rs.48 million of security deposit paid against lease facility to be avaAskari Bank Ltd (referred to note 8.9).

26. DEFERRED COSTDiscount on issue of shares 100000

Less: Amortized during the year 37 20000Amortized during previous years 65808

85808

14192

26.1 During the year 2004, the Company issued 20 million ordinary shares of Rs. 10a discounted price of Rs. 5 each which resulted into a discount of Rs. 100 million.


8/7/2019 Annual2008


2007usand)

1161

508 219653 942

))))) 360

2149

2509788 799

1710

otor cars

leyear were

88

1466344

1898

iled from

100000

2000045808

65808

34192

each at

8/7/2019 Annual2008




27. STORES, SPARES AND LOOSE TOOLSStores 27.1 195109

Spares 66448Loose tools

262388

27.1 Stores include stores in transit valuing Rs. Nil (2007: Rs.26.62 million).

28. STOCK-IN-TRADE

Raw materials 36.1 11701Workinprocess 36 30967Finished goods 36 34652

Packing materials

77753

29. TRADE DEBTORS - unsecuredConsidered doubtful

Less: Provision for doubtful debts

30. LOANS AND ADVANCES - unsecured, considered good

Advances to staffAdvances for expenses 30.1 5565

Advances against salary 1408Advances for wheat purchase

Other advances 17429333

Advances to suppliers 30.2 497311Current portion of long term loans

and advances to staff 24

50743230.1 Advances for expenses include an amount of Rs. Nil (2007: Rs. 272 thousand)

directors.

30.2 Advances to suppliers include an amount of Rs. Nil (2007:Rs.15 million) paid a

to an associated company M/S Balochistan Glass Limited against supply of specifi

31. TRADE DEPOSITS AND SHORT TERM PREPAYMENTSGuarantee margin deposits 19726Prepaid guarantee commission 5775

Prepaid rent

Other prepayments26956


8/7/2019 Annual2008


8/7/2019 Annual2008




32. ACCRUED INTERESTOn:

Bank deposits

Employees’ loan

33. OTHER RECEIVABLESSales tax input claimable 33.1 78216

Advisory fee receivable 33.2 4219

Others 2778

85213

33.1 This includes sales tax deducted on import of plant & machinery that is to be

under the provisions of Sales Tax Act, 1990 in the next year.

33.2 This fee was paid to Orix Investment Bank Limited for advisory and arrangemproposed TFCs issue of Rs.400 million. However, the said transaction

34. CASH AND BANK BALANCESWith banks

on current accounts 126503

on escrow accounton special account 34.1 1326

on deposit account 34.2 10050

on saving accounts 34.3 15977on dividend account

154336Cash in hand 34.4 2170

15650634.1 This represent the amount kept under a saving account received from custome

security deposit. (Refer to Note 11).34.2 This represent the Fixed Deposit made with First Dawood Investment Bank Lt

security of issuance of PPTFC (referred to Note 6) where as last year’

34.3 These include Rs.15 million (2007: Rs. 15 million) withheld by banks under lienconnection with a letter of guarantee given by a commercial bank on

34.4 Cash in hand includes cheques in hand amounting to Rs. Nil (2007: 502.75 mill

35. SALES - net

Cement sales Less:Sales tax

Excise duty Discount/Rebate to dealers


8/7/2019 Annual2008


2007usand)

))))) 35

332 564332 599

25567

4219

1668

31454

laimed

ent of thewas not executed

10525

480 3121369

200000

34999))))) 879

248084502848

750932rs as

d as a

figure represents

inbehalf of the

ion).

))))) 771759))))) 100664

))))) 141872))))) 7507

))))) 250043

))))) 521716

8/7/2019 Annual2008




36. COST OF SALESRaw materials consumed 36.1Packing materials consumed

Stores and spares consumed Salaries, wages and benefits

Fuel and power consumedElectricity consumed 10660

Coal consumed

Sui gas Kiln

10660Rent, rates and taxes 1248Repair and maintenance

Insurance 1029

Vehicle running & traveling Other expenses 262

Depreciation 20.6 6193975230

Adjustment of work in process inventory

Opening 30967Closing 28 30967

Cost of goods manufactured 75230Adjustment of finished goods inventory

Opening 34652Closing 28 34652

75230

Cement consumed in CWIP new cement plant 75230

36.1 Raw materials consumedOpening stock as at July 01 11701Cost of raw materials:

Outside purchases and transportation cost

Explosives Royalty

Excise duty

Salaries, wages and benefits Repair and maintenance

Stores and spares

Insurance Vehicle running & traveling

Other overheads 11701

Closing stock as at June 30 28 11701


8/7/2019 Annual2008


2007usand)

))))) 80741 )))))) 37699 )

))))) 12734 )92 ) 87084 )

) 102799 )

))))) 126490 )

))))) 137677 )

) 366966 )) 1402 )))))) 34762 )

) 1938 )

))))) 2340 )) 1400 )

) 66234 )) 693300 )

) 102991 )30967

))))) 72024 )

) 765324 )

) 26180 )34652

))))) 8472) 756852 )

))))) 46704) 710148 )

) 3866 )

))))) 22690 )

))))) 1816 )))))) 3488 )

))))) 723 )))))) 28717 )

))))) 44861 )))))) 7630 )

))))) 4245 )

))))) 830 )))))) 1435 )

))))) 858 )) 92442 )

11701

))))) 80741 )

8/7/2019 Annual2008




37. GENERAL AND ADMINISTRATIVE EXPENSESSalaries, wages and benefits 22422Vehicles’ running and maintenance 1376

Traveling and conveyance 3012Legal and professional charges 7465

Auditors’ remuneration 37.1 575Postage, telegram and telephone 1648

Printing and stationery 543

Insurance 200

Rent, rates and taxes 6922Fee and subscription 1702Entertainment 879

Utilities 796

Advertisement 108Repair and maintenance 1233

Discount on issue of shares amortized 26 20000Miscellaneous 607


71778

37.1 Auditor’s remunerationViqar A. Khan

Audit fee 250Half year review fee 150

Corporate consultancy Certification and others 125

Out of pocket expenses575

Rahman Sarfraz & Co.Cost audit fee

Outofpocket expenses

Aftab Nabi & Co.

Internal audit fee

57538. SELLING AND DISTRIBUTION EXPENSESSalaries, wages and benefits 38.1 3388Vehicles’ running and maintenance 688

Postage, telegram and telephone 294Electricity 107

Advertisement & sale promotion

Insurance 629Miscellaneous


38.1 This includes dues in respect of final settlement of certain employees who left

during the year.50 ANNUAL REPORT 2008

8/7/2019 Annual2008


2007usand)

185071119

10271878

657484

330

277

2715936345

448

288479

20000115

2352

51957

25063

)))) 50140

50 35538

)))) 35

)))) 4

)))) 39

)))) 80

657

911559

254170

12 80

160)))) 770

4713375

mployment

8/7/2019 Annual2008



Note

39. OTHER OPERATING EXPENSESDonations (without directors’ interest)Exchange fluctuation loss on translation of foreign

currency long term loans and others netProvision for diminution in value of investments

Zakat

40. OTHER OPERATING INCOMEProfit/mark up on:

Bank depositsEmployee’s loansTemporary advances to associated company

Unclaimed balances written back

Profit on disposal of fixed assetsScrap sales

Gain on sale of store

Rental income 40.1Others

40.1 This represents rent on colony quarters given to ex employees of the companybeen terminated during the last year and rent of shops.

41. FINANCE COSTSInterest/mark up on:

Redeemable capitalLong term loans and finances

Long term foreign currency loansShort term finances

Employees’ provident fund

Workers’ (profit) participation fundLease finance charges

Advisory fee and other charges

Commission on bank guaranteesBank charges and others

42. LOSS PER SHAREBasic earnings/(loss) per share

Loss for the year attributableto ordinary shareholders Rupees in thousand

Weighted average number of ordinary shares outstanding

during the year Numbers

Loss per share Rupees51 ANNUAL REPORT

8/7/2019 Annual2008


2008 2007(Rupees in thousand)

110 ) 121 )

17877 ) 10264 )290 ) 20 )

)))) 20 )18277 ) 10425 )

806 ) 7624 )46 ) 172 )

3343 ) 2388 )

4195 ) 10184 )

)))) 2080 )

30 ) 282 )2408 ) 2842 )

)))) 16107 )

6293 ) )))))355 ) 654 )

13281 ) 32149 )

who had

47329 ) 27953 )10472 ) 13532 )

)))) 6092 )39159 ) 19724 )

1584 ) 1750 )

2960 ) )))))28461 ) 33721 )

)))) 2297 )

2781 ) 6040 )3424 ) 1359 )

136170 ) 112468 )Restated

2008 2007

315198 222916

224798316 ) 189407812 )

1.4 1.18008

8/7/2019 Annual2008



Diluted earnings per share

has no such commitments.

43. CASH GENERATED/(UTILIZED) FROM OPERATIONS Note

Net loss before taxationAdjustments for non cash charges and others:

Depreciation on operating fixed assetsProfit on sale of fixed assets

Profit/Interest income for the year

Provision for compensated absences

(Reversal)/provision for diminution in value of investmentsProvision for gratuityFinancial charges

Loss due to exchange fluctuation

Taxes and dutiesAmortization of discount on issue of shares

Gain on sale of investments in associate

Working capital changes 43.1

43.1 Working capital changes

(Increase)/decrease in current assetsStores, spares and loose tools

Stock in tradeLoans and advances

Trade deposits and short term prepaymentsOther receivables

Increase/(decrease) in current liabilities

Trade and other payables

52 ANNUAL REPORT

8/7/2019 Annual2008



363082 202074

64519 ) 117691 )30 282

4195 10184

376 ) 922 )

290 ) 20 )3684 ) 14392 )136170 ) 112468 )

17877 ) 10264 )

11640 ) 146083 )20000 ) 20000 )

))))) 132434250331 ) 278940 )

112751 76866 )

566131 191790 )678882 268656 )

86070 33187 )

))))) 57970 )312952 94650

2570 750 )53759 30983

455351 33726

110780 225516 )

566131 191790 )

008

8/7/2019 Annual2008



44. FINANCIAL INSTRUMENTS

44.1 Interest rate riskThe Company’s exposure to interest rate risk on its financial assets and liabilities athe balance sheet date, are summarized as under:

Interest /mark up bearing

Maturity

Maturity after oneupto one year and

year upto five

years

Financial assets

Investments ))))

Loans and advances to staf 788 1245

Long term depositsand prepayments ))))

Trade deposits and shortterm prepayments ))))

Accrued interest ))))

Other receivables ))))Cash and bank balances 17,303

18091 1245

Financial liabilitiesOn balance sheet

Redeemable capital 160 399840Murabaha finance 59467 107041

Long term loans, financesand other payables 414208 4244390

Long term foreign currencyloans and other payables ))))

Liabilities against assets subject

to finance lease 95474 107520Long term deposits

from customers ))))

Short term loans& finances 152887

Trade and other payables ))))Accrued interest ))))

722196 4858791Off balance sheet

Guarantees ))))

Commitments (Refer note 1 ))))))))

722196 4858791The effective interest/mark up rates for the monetary financial assets and liabilitie

mentioned in respective notes to the financial statements.

44.2 Foreign exchange risk management:Foreign currency risk arises mainly where receivables and payables exist due to tra

with foreign undertakings. Payables exposed to foreign currency risk are not cover

44.3 Concentration of credit risk:Credit risk represents the accounting loss that would be recognized at the reportin

if counter parties completely failed to perform as contracted. The company believe

44.4 Fair value of financial assets and liabilitiesThe carrying value of all financial assets and liabilities reflected in the financial statapproximate to their fair values.

53 ANNUAL

8/7/2019 Annual2008


at

Non interest /mark up bearing

Maturity

Sub Maturity after one SubTotal upto one year and Total

year upto five

years


)))) )))) )))) 653 653

2033 9333 )))) 9333

)))) )))) )))) 54907 54907

)))) )))) 19726 )))) 19726

)))) )))) 332 )))) 332

)))) )))) 5504 )))) 5504)))) 17303 139203 )))) 139203

19336 174098 55560 229658

400000 )))) ))))166508 )))) ))))

4658598 )))) 894285 894285

)))) )))) )))) ))))

202994 )))) ))))

)))) )))) )))) 1150 1150

)))) 152887 - ))))

)))) )))) 430426 )))) 430426)))) )))) 311185 )))) 311185

5580987 741611 895435 1637046

)))) )))) 277264 737760 1015024

)))) )))) 172600 )))) 172600)))) )))) 449864 737760 1187624

5580987 1191475 1633195 2824670are

nsactions

ed

date

that

ements

REPORT 2008

8/7/2019 Annual2008


Total Total

2008 2007

653 942

11366 8687

54907 1898

19726 19726

332 599

5504 5504156506 750932

248994 788288

)))) 400000 )))))))) 166508 ))))

5552883 3632147

)))) )))) 188097

)))) 202994 234514

1150 1225

)))) 152887 298540

430426 526163311185 123834

7218033 5004520

1015024 677265

172600 17821091187624 2459374

8405657 7463894

8/7/2019 Annual2008



45. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXE

Chief Executive

Particulars2008

Managerial Remuneration )))

Perquisites and benefitsHouse rent )))

Personal staff salary )))

Entertainment )))

Utilities and others ))))))

Contribution to:

Provident Fund Trust )))

)))

Number of persons )))45.1 Chief Executive, directors and executives are entitled to free use of the compa

and residential telephones.

46. TRANSACTIONS WITH RELATED PARTIESThe related parties comprise associated company/undertakings, directors of the C

key management staff and staff retirement funds. Details of transaction with relate

Associated Companies:

Balochistan Glass Limited (BGL)

Sale of stores (including sales tax)Purchase of stores (including sales tax)

Interest receivedInterest charged

Expenses incurred

Expenses paid on behalf of GCLLoan/advances given to BGL

Repayment of loan/advances given to BGL

DirectorsLoan received during the year

Loan paid during the yearMark up paid during the year

Prior year’s figures represent transactions with a past associated undertaking DanCompany Limited.

All transactions were carried out on commercial terms and conditions and were va

arm’s length price using Comparable Uncontrollable Price method. Remuneration

47. NUMBER OF EMPLOYEESNumber of permanent employees at balance sheet date

54 ANNUAL REPORT

8/7/2019 Annual2008


UTIVES

Dirctors Executives

2007 2008 2007 2008 2007

(Rupees in thousand)705 750 1676 5793 4888

351 333 890 1671 1116

))) ))) 154 254 166

))) 55 334 78

75 42 455 1816 2203426 430 1833 3819 3563

))) 18 112 135 78

1,131 1,198 3,621 9,747 8,529

1 2 3 10y’s transport

mpany,

parties


)))) 1342741027 18996

3343 )))) 2388

)))) 4000

35 10000

23938

1588527 1752065

1516378 4075000156966 37849

ot Cement

lued at

and benefits

2008 334 2007Nos. Nos.

008

8/7/2019 Annual2008


8/7/2019 Annual2008



48. CAPACITY AND PRODUCTION - TONNES

Clinker

2008Plant capacity 540000

Actual production )))))

During the financial year under consideration, the wet process plant remained closhigh operating cost as compared to low price of cement in the market. So it was no

49. GENERALThese financal statements have been authorized for issue by the Board of Directors

Company in its meeting held on October 04, 2008.50. CORRESPONDING FIGURESCorresponding figures have been rearranged and reclassified, wherever necessary,

purpose of comparison. However, no rearrangement and reclassification is made i

51. LEVEL OF PRECISIONFigures have been rounded off to the nearest of thousand rupees, unless otherwise


(ASIF MUHAMMAD ALI)

Director


8/7/2019 Annual2008


Cement

2007 2008 2007540000 568420 568420

155190 ))))) 202225

ed due tofeasible

of the

for the

these

stated.


Director

8/7/2019 Annual2008



Form of Prox

The SecretaryGharibwal Cement Limited

LAHORE.

I/We of Gharibwal Cement Limited, and holder o Ordinary Shares as per Shares

Folio No. hereby appoint Mr./Mrs./Ms.

of

Folio No. who is also a member of Gharibwal Cement Limited

As witnessed given under my / our hand (s) day of October, 20

WITNESS:Signature

Name

Address

Note:

1 The Proxy in order to be valid must be signed across a Five Rupees R

be deposited in the Registered Office of the Company not later than2 No person shall act as proxy unless he is a member of the Company.

3 Signature should agree with the specimen signature registered with t


8/7/2019 Annual2008


being a member of egister

s my/our

08.

Signature

On five

Rupees

RevenueStamp

Documents

Annual2008