Thatta Cement

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FUNDAMENTALS OF FINANCIAL MANAGEMENT


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Company Profile:

Thatta Cement Company Limited was incorporated in 1980 as a public limited company. It was a wholly

owned subsidiary of the State Cement Corporation of Pakistan (Pvt.) Limited. The manufacturing facility was

commissioned in 1982. The plant based on dry process technology, had a total installed capacity of 1,000

tons per day of clinker. The plant was supplied by M/s. Mitsubishi Corporation, Japan. In the year 2004 the

consortium of Mr. Arif Habib and Al-Abbas Group acquired 100% shares of the Company from the

Privatization Commission and took over its management control.

The Company is now a part of the Arif Habib Group. The Group enjoys a diversified blend of expertise and

interests in various industrial and financial concerns, including fertilizer, steel, cement, real estate,

commercial banking, asset management, securities brokerage, and private equity.

Location:

The plant is located 115 km North East of Karachi at Ghulamullah Road, Makli, and District Thatta. The

facility is spread over 236 acres of freehold land consisting of factory area, workers colony, officers colony,

commercial buildings and water reservoirs. Finest quality raw material deposits are available close to the

plant. These limestone and clay reserves are sufficient for about 100 years. In this respect, TCCL has themining rights for extracting limestone from 2,364 acres, shale/clay from 1,121 acres and silica sand from

1,239 acres of land, respectively. The Company has further acquired mining rights of limestone for a further

area of 1,240.02 acres in December 2010.

Initiatives:

Subsequent to the privatization, the management embarked on a number of initiatives to improve

performance and efficiency of the unit. These include:

Induction of competent and experienced management personnel and skilled workforce

Capacity expansion by 50% (i.e. from 1,000 tpd to 1,500 tpd) of clinker

Refurbishment of 35 tons/hour cement grinding mill which was not operational for almost two

decades

Securing ISO 9001:2008 certification


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Installation of 24 tons/hr coal grinding mill

Establishment and installation of a modern, computerized state of the art operations control system

Conversion of the plant from furnace oil to multi fuel firing system (coal, gas and furnace oil

Board of Directors:

At present the Board of Directors consists of :

Mr. Muhammad Arif Habib

Mr. Muhammad Fazlullah Shariff

Mr. Muhammad Kashif Habib

Mr. Muhammad Khubaib

Mr. Nasim Beg

Mr. Asadullah Khawaja

Mr. Shahid Aziz Siddiqui


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Our Products:

Ordinary Portland cement:

Thatta OPC is unique in its Low Alkali content feature with a total content of alkalies below 0.4 percent.

Thatta OPC has an advantage that it can be used in concrete made with aggregates that contain a form of

silica which reacts with alkalies if present in high proportion to cause an expansion which disrupts concrete.

Another special feature of the Thatta OPC is that it has low contents of Tricalcium Aluminate. This helps to

control the effect of spontaneous over-heating in large masses of concrete and resistance to sulfate attack.

Thatta OPC prevents chemical attack and corrosion on RCC. Its low heat of hydration makes it sui table for

mass concreting. Its high early strength makes it ideal for use in load bearing structures. Thatta OPC has a

higher Blaine value and fineness which facilitates denser concrete. Thatta OPC can be used in concrete

mortars and grouts. Thatta OPC is a technically advanced and cost effective solution for construction above

or below ground.

Sulphate Resistant Cement:

Thatta Sulphate Resistant Cement is suitable for application in areas affected by salinity, coastal belts, piling

work, dams etc. It gives protection from chemical attack and corrosion. Its high early strength and low heat

of hydration makes it ideal for use in load bearing structures. Low alkali content is an additional feature of

Thatta SR Cement.

Portland Blast Furnace Slag Cement:

Thatta Slag Cement has excellent properties due to its higher fineness which facilitates denser concrete,

prevents penetration of chloride and sulphate solution into the foundations. Thatta Slag Cement suits

structures in hostile soil environments with high salinity, harmful chemical agents which pose a risk to

foundation as well as the building. Thatta Slag Cement imparts better corrosion resistance properties in

reinforcement steel structures. Thatta Slag Cement can be used in dams, bridges and earth retaining

structures.

Ground Granulated Blast Furnace Slag:


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GGBF Slag is ground to fineness of around 4,000 Blaine. It can be used for blending with cement and also

as a filler in foundations.

Advantages:

The cement can be dispatched by road and rail as well in bulk tankers/containers. Tremendous strength,

better setting time, sulphate resistant properties, low heat of hydration and low alkali content together with

low expansion make Thatta Cement an ideal building material both for above or below ground constructions.


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Quality Policy:

Thatta Cement aims at being the leader and the most preferred brand of cement for its customers.

Our objective is to:

Ensure satisfaction of our customers and all other stakeholders on the strength of our product

quality

Adopt environment friendly processes and safe working practices

Develop quality management system, which facilitates continuous improvement in our system,

process and procedures to ensure quality

Attract, motivate and retain our most valuable resources, i.e. human capital and formulate

employee welfare oriented policies

Carryout social obligations towards the local inhabitants

Carryout business conforming to all legal, regulatory and ethical dimensions


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Our Export:

Thatta Cement Company Limited is one of the prominent exporters of cement in Pakistan. We have always

focused on delivering absolute customer satisfaction by providing our clients customized range of products.

Our dedicated and industrious professionals constantly strive to understand the needs of our clients. The

teams further, apply latest processes and technologies to provide the best possible solution to the clients.

Our main markets are:

Sri Lanka

Middle East

India

African Countries

FINANCIAL STATEMENTS FOR THATTA CEMENT CO LTD (THCCL)

Although debt as a percent of total capital decreased at Thatta Cement Company Limited over the last fiscal

year to 32.58%, it is still in-line with the Construction Materials industry's norm. However, there are not

enough liquid assets to satisfy current obligations and operating profits are not yet strong enough to

comfortably handle the burden. Accounts Receivable are among the industry's worst with 12.50 days worth

of sales outstanding. This implies that revenues are not being collected in an efficient manner. Last,inventories seem to be well managed as the Inventory Processing Period is typical for the industry, at

125.53 days


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Careers:

The Company believes that it is the trustee of its Human Resources and encourages to develop them to

introspect deeply and learn to act not on directives but on inspiration from within, thus aiming to provide a

strong motivation to our employees to become psychological co-owners of the organization and to succeed

with determination and commitment.

As facilitators of the growth process of the employees, we are committed to providing a work environment

where people are:

Offered full opportunities and challenges to develop individually, enabling career growth

Offered suitable orientation and training

Encouraged to acquire knowledge to meet the challenges of new technologies and business needs

in the changing scenario

Educated and guided to inculcate and practice right values as are nurtured by the organization

Provided strong motivation to take the organization ahead

Assisted in creating and maintaining human resource system for optimizing human potential

Thatta Cement Company Limited offers employment opportunities in a wide range of functions. The process

of recruitment in Thatta Cement Company Limited is fair and transparent, with adequate opportunities to

look for suitable candidates both internally and from outside.


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Financial Reports:

Financial Year 2010-2006


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Balance Sheet:

Balance sheet

2010 2009 2008 2007

rupees in Thousand

Assets

Noncurrent

assets

Property, plant &

equipment 848781 822149 728992 1410543

Intangible assets 3116 2616 15297 2213

long term 88 88 2708 2500

Total noncurrent

Assets 851985 824853 746997 1415256

Current Assets

Stores,spaire

parts & loose

tools 190029 218895 244063 232599

stock in trade 238864 225301 128416 121666

trade debts 49649 56135 134212 133000

Loans andadvances 12918 16694 48073 58456

Trade deposits

and short term

prepayments 8127 6910 6044 6615

Accrued interest 54

Other receivable 6033 1225 10533 5922

Short term

investment 38597

Tax refunds due

from the

government 32328 1155Taxation-net 37371 18764 12262 72655

sales tax

refundable 8230 6236

Cash and bank

balances 10266 11815 6367 6580

Total current

Assets 585639 594336 599355 643729


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Total Assets 1437624 1419189 1346352 2058985

Equity And

Liabilities

SHARE CAPITAL

AND RESERVES

authorized

Capital 900000 900000 900000 900000

issued,

subscribed and

paid-up capital 797745 797745 797745 797745

Accumulated loss -22182 -23124 -226996 -22113

Unrealized loss

on available for

sale investment -3810

total 775563 770811 570749 775632

NON CURRENT

LIABILITIES

Long term

financing 41666 83333 166662 654825

long term

deposit 4249 3962 4474 3356

Deferredtaxation 44432 53972 17514 2595

total 90347 141267 188650 660776

CURRENT

LIABILITIES

Trade and other

payables 227514 170582 332780 359850

Accrued markup 11124 10095 9532 10065

Short term

borrowing 291409 243102 147417 156000

current maturity

of long termfinancing 41667 83332 97224 96662

total current 571714 507111 586953 622577

TOTAL 1437624 1419189 1346352 2058985


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Ratio Analysis:


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Common Analysis

2010 2009 2008 2007

Assets

Non current

assets

Property,

plant &

equipment 59.04054 57.9309 54.14572 68.50672

Intangible

assets 0.216747 0.184331 1.136181 0.10748

long term 0.006121 0.006201 0.201136 0.121419

Total non

current

Assets 59.26341 58.12143 55.48304 68.73561

Current

Assets

Stores,spaire parts &

loose tools 13.21827 15.42395 18.12773 11.29678

stock in

trade 16.61519 15.87533 9.53807 5.909028

trade debts 3.453546 3.955428 9.968567 6.459493

Loans and

advances 0.898566 1.176306 3.570612 2.839069

Trade

depositsand short

term

prepayment

s 0.565308 0.486898 0.448917 0.321275

Accrued

interest 0.003756 0 0 0


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Other

receivable 0.419651 0.086317 0.782336 0.287617

Short term

investment 0 2.719652 0 0

Tax refunds

due from the

government 2.24871 0 0.085787 0

Taxation-net 2.599498 1.322164 0.910757 3.52868

sales tax

refundable 0 0 0.611281 0.302868

Cash and

bank

balances 0.714095 0.832518 0.472908 0.319575

Total

current

Assets 40.73659 41.87857 44.51696 31.26439

Total Assets 100 100 100 100

issued,

subscribedand paid-up

capital 55.49052 55.49052 55.49052 55.49052

Accumulate

d loss -1.54296 -1.60849 -15.7897 -1.53816

Unrealized

loss on

available for

sale

investment 0 -0.26502 0 0

Total 53.94756 53.61701 39.70085 53.95235

NON

CURRENT

LIABILITIES


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Long term

financing 2.898254 5.796578 11.59288 45.54911

long term

deposit 0.295557 0.275594 0.311208 0.233441

Deferred

taxation 3.090655 3.75425 1.21826 0.180506

total 6.284467 9.826422 13.12235 45.96306

CURRENT

LIABILITIES

Trade and

other

payables 15.8257 11.86555 23.14792 25.03088

Accrued

markup 0.773777 0.7022 0.663038 0.700114

Short term

borrowing 20.27018 16.90998 10.25421 10.85124

current

maturity of

long term

financing 2.898324 5.796509 6.762825 6.723733

total current 39.76798 35.27424 40.82799 43.30597

TOTAL 100 100 100 100


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Contact Us:

Registered Office:

Pardesi House, Survey # 2/1, R.Y. 16,

Old Queens Road, Karachi - 74000

Voice 92 21 32423295 , 32423478, 32419827


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FUNDAMENTALS OF FINANCIAL MANAGEMENTFax: 92 21 32400989

E-mail: [email protected]

Mailing Address:Arif Habib Centre, 23, M.T. Khan Road, Karachi.

Marketing Department:


Purchase Department:


Factory:

Ghulamullah Road,

Makli, District Thatta, Sindh 73160

Voice: 92 298 770478 , 770731-32

Fax: 92 298 770735



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Documents

Thatta Cement