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First Quarterly ReportJuly-September 2012First Quarterly ReportJuly-September 2012

ENVIRONMENTAL

ISO 9001 & ISO 14001APPROVED

Rawalpindi — Pakistan

Fauji Tower Block-III, 68 Tipu Road

If Undelivered please return to:

Company Secretary

Fauji Cement Company Limited

AUJICEMENT

1st Quarterly Report 2012

F C C L

Company Information

Directors' Review

Condensed Interim Balance Sheet(Un-Audited)

Condensed Interim Profit and Loss Account(Un-Audited)

Condensed Interim Statement of Comprehensive Income(Un-Audited)

Condensed Interim Cash Flow Statement(Un-Audited)

Condensed Interim Statement of Changes in Equity(Un-Audited)

Notes to the Condensed Interim Financial Information(Un-Audited)

2

3

4

6

7

8

9

10

1Contents

F C C L2

Lt Gen (R) Muhammad Sabir,HI (M), (CE/MD) Mr. Qaiser Javed

Brig Dr. Gulfam Al(R) am, SI (M)

Dr. Nadeem InayatBrig Agha Ali Hassan, SI(M) (R)

Brig Parvez Sarwar Khan, SI (M) (R)

Brig (R) Muhammad Saeed Khan Mr. Max Kruse, IFU

Board of Directors

Brig Sajjad Azam Khan, SI (M) T Bt (R)

Fauji Tower Block III

68 Tipu Road, Chaklala, Rawalpindi

Tel: (051) 9280075

Fax: (051) 9280416

E - mail: [email protected]

Company Secretary

Fauji Towers, Block -III, 68 Tipu Road ChaklalaRawalpindi

Tel: (051) 9280075,

Exch: 051-9280081-83, 5763321-24

Fax: (051) - 9280416

Registered Office

Fax No: (051) 2260653

M/s Orr Dignam & Co, Advocates

Legal Advisors

Auditors M/s KPMG Taseer Hadi & Co,

Chartered Accountants

Fax No: (051) 2822671

Mr. Omer Ashraf

Tel: (051) 5500157

Chief Financial Officer

Factory Near Village Jhang Bahtar, Tehsil Fateh Jang

District: Attock

Tel: 057-2538047-48, 2538138, 2538148-49

Fax: 057-2538025

Company Website http://www.fccl.com.pk

Company Information

Lt Gen (R) Muhammad Mustafa Khan, HI (M) , (Chairman)


F C C L3

Directors' Review

1. The Board of Directors is pleased to present their review report along with the un-audited

accounts of the Company for the Quarter ended 30 September 2012.

2. During the first quarter the Company earned a net profit of Rs. 361 Million as compared to

Rs. 104 Million in the same period of last year. The Company achieved capacity utilization

of 66% as compared to 50% (based on 11,445 TPD) in the corresponding period of last year.

Local dispatches stood at 424,719 tons as compared to 288,759 tons during the

corresponding quarter of last year. Export dispatches stood at 141,960 tons as compared to

138,196 tons in the same quarter of last year. The Company is making considerable efforts to

further enhance its sales.

3. The cost of sales per ton during the period under review was higher than the corresponding

period of last year mainly due to increase in electricity and diesel prices. The average

retention prices during the period have also increased due to enhanced demand in the

market, which has somewhat mitigated the impact of cost increase.

4. Looking forward, next quarter could be slow in terms of dispatches due to the start of winter

season. The domestic prices are looking stable but with low exports, domestic dispatches

will remain under pressure. However, reduction in KIBOR in line with the SBP discount rate

will provide some relief in financial charges. The major challenge however remains stable

electricity supply and prices of fuel and electricity.

For and on behalf of the Board

Lt Gen Muhammad Mustafa Khan, HI (M) Chairman

(R) Rawalpindi30 October 2012


F C C L4

Condensed Interim Balance Sheet as at 30 September 2012

Chief Executive


30 September 2012 30 June 2012 Un- audited Audited Note

Rupees'000 Rupees'000

SHARE CAPITAL AND RESERVES

Share capital 4

13,798,150

13,798,150

Reserves

507,115

106,955

14,305,265

13,905,105

NON - CURRENT LIABILITIES

Long term financing - secured 5

6

9,747,703

10,174,513

Deferred liability - compensated absences

24,851

Deferred tax liability - net

1,234,956

25,203

1,104,823

CURRENT LIABILITIES

Trade and other payables 1,528,019

1,778,447

Markup accrued 174,728

349,377

Short term borrowings - secured 1,232,925

985,954

Current portion of long term financing 2,499,971

2,380,395

5,435,643

5,494,173

30,748,770

30,703,465

CONTINGENCIES AND COMMITMENTS

The annexed notes from 1 to 11 form an integral part of this condensed interim financial information.

F C C L5

Director

Condensed Interim Balance Sheet as at 30 September 20121st Quarterly Report 2012

30 September 2012 30 June 2012 Un-audited Audited Note


NON - CURRENT ASSETS Property, plant and equipment 7

25,605,760

25,897,954

Long term advance

3,600

3,600

Long term deposits and prepayments

613,803

642,093

CURRENT ASSETS

Stores, spares and loose tools

2,554,433

Stock in trade

955,337

Trade debts

64,241

Advances

13,077

Trade deposits, short term prepayments and

balances with statutory authority

192,024

Interest accrued

393

Other receivables

165,242

Cash and bank balances

2,958,318

939,698

165,650

22,707

198,703

284

45,613

194,634

215,071

4,525,607

4,159,818

30,748,770

30,703,465

F C C L6

DirectorChief Executive

Condensed Interim Profit And Loss Account (Un-Audited)For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012

Quarter Ended

30 September 2012

30 September 2011

Note Rupees'000 Rupees'000

SALES 4,073,099 1,956,742

Government levies (609,006) (354,833)

NET SALES 3,464,093 1,601,909

Cost of sales 8 (2,451,227) (1,364,515)

GROSS PROFIT 1,012,866 237,394

Other income 14,438 8,392

Distribution cost (38,597) (13,237)

Administrative expenses (38,549) (28,491)

Other operating expenses (38,737) (9,310)

Finance cost (385,700) (68,405)

NET PROFIT BEFORE TAXATION

525,721

126,343

Taxation

- Current (34,641) (22,525)

- Deferred (130,133) -

(164,774) (22,525)

NET PROFIT AFTER TAXATION 360,947 103,818

Earnings per share - Basic (Rupees) 0.27 0.08

Earnings per share - Diluted (Rupees) 0.26 0.07


F C C L7


Condensed Interim Statement of Comprehensive Income(Un - Audited) For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012

Quarter Ended

30 September 2012 30 September 2011 Rupees'000 Rupees'000

Net profit after tax 360,947 103,818

Other comprehensive income - -

Total comprehensive income 360,947 103,818


F C C L8


Condensed Interim Cash Flow Statement (Un - Audited)For the First Quarter Ended 30 September2012


Quarter Ended

30 September 2012 30 September 2011

Rupees'000

Rupees'000

Cash flows from operating activities

Net profit before taxation

525,721

126,343

Adjustments for:

Depreciation

318,814

118,658

Provision for compensated absences

5,641

7,882

Workers' (Profit) Participation Fund including interest and WWF

39,034

9,568

Finance cost (excluding interest on WPPF)

385,403

68,147

Gain on disposal of property, plant and equipment

(2,079)

(1,555)

Interest income including interest on long term deposit

(6,358)

(4,449)

740,455 198,251

Operating cash flows before working capital changes

1,266,176

324,594

Increase in stores and stocks

(388,246)

(653,241)

Increase in trade debts

(101,409)

(3,048)

(Increase)/ decrease in advances

(9,630)

21,624

(Increase)/ decrease in trade deposits, short term prepayments and

balance with statutory authority

(20,383)

11,876

Decrease/ (increase) in other receivables

119,629

(1,473)

(Decrease)/ increase in trade and other payables

(66,571)

147,140

(466,610)

(477,122)

Cash generated from/ (used in) operations

799,566

(152,528)

Compensated absences paid

(437)

(898)

Payment to Workers' (Profit) Participation Fund

(52,169)

(26,463)

Taxes paid

(20,935)

(35,209)

Net cash generated from/ (used in) operating activities

726,025

(215,098)

Cash flows from investing activities

Additions in property, plant and equipment

(26,620)

(52,426)

Proceeds from disposal of property, plant and equipment

2,079

1,586

Interest received on bank deposits

6,467

2,822

Net cash used in investing activities

(18,074)

(48,018)

Cash flows from financing activities

Repayment of subordinated loan

-

(3,189,000)

Repayment of long term financing

(374,764)

-

Amount received against issue of right shares -

net

-

2,324,986

Dividend paid on preference shares

(175,573)

(66,885)

Repayment of short term borrowings

(940,000)

(18,739)

Finance cost paid

(425,022)

(525,797)

Net cash used in financing activities

(1,915,359)

(1,475,435)

Decrease in cash and cash equivalents (1,207,408) (1,738,551)

Cash and cash equivalents at beginning of the period 169,117 483,888

Cash and cash equivalents at end of the period (1,038,291) (1,254,663)

Cash and cash equivalents comprise of the following:

Cash and bank balances 194,634 123,535

Running finance (1,232,925) (1,378,198)

(1,038,291) (1,254,663)


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F C C L9

Dir

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Condensed Interim Statement of Changes in Equity (Un - Audited) For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012

F C C L10

Notes to the Condensed Interim Financial Information (Un-Audited)For the First Quarter Ended 30 September 2012 1st Quarterly Report 2012

5. LONG TERM FINANCING-SECURED AuditedUn-Audited Note

5.1

30 September 2012 30 June 2012 Rupees'000

Rupees'000

Rupees'000

Rupees'000

AuditedUn-Audited 30 September 2012 30 June 2012

From banking companies

Term finance facilities including syndicated term finance facilities - secured

12,554,908

Less: Current portion shown under current liabilities (2,380,395)

9,747,703 10,174,513

5.1 12,554,908

(374,764)

67,530

(2,449,971)

12,247,674

13,553,622

(1,671,082)

672,368

Movement in this account during the period/ year is as follows: Opening balance

Principal repayment during the period/ year

Exchange loss on revaluation and transaction cost adjustment

Closing balance 12,247,674 12,554,908

6. CONTINGENCIES AND COMMITMENTS

1 Fauji Cement Company Limited ("the Company") is a public limited company incorporated in Pakistan on 23 November

1992 under the Companies Ordinance, 1984 and commenced its business with effect from 22 May 1993. The shares of the Company are quoted on Karachi, Islamabad and Lahore stock exchanges in Pakistan. The principal activity of the Company is manufacturing and sale of ordinary portland cement. The Company's registered office is situated at Fauji Towers, Block III, 68 Tipu Road, Rawalpindi. Fauji Foundation holds 57.09 % ordinary and 100% preference shares in the Company.

2 This condensed interim financial information of the Company for the quarter ended 30 September 2012 has been prepared in accordance with the requirements of International Accounting Standard 34 - "Interim Financial Reporting" and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed. The disclosures in the condensed interim financial information do not include the information reported for full annual financial statements and should therefore be read in conjunction with the financial statements for the year ended 30 June 2012. Comparative balance sheet is extracted from annual financial statements as of 30 June 2012 whereas comparative profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity are extracted from unaudited condensed interim financial information for the quarter ended 30 September 2011.

This condensed interim financial information is unaudited and is being submitted to the members as required under Section 245 of the Companies Ordinance, 1984 and the listing regulations of the Karachi Stock Exchange Limited.

3. The accounting policies and the methods of computation adopted in preparation of this condensed interim financial information are the same as those applied in preparation of financial statements for the year ended 30 June 2012.

4. SHARE CAPITAL

There is no change in composition of issued, subscribed and paid up share capital of the Company from 30 June 2012.

6.1 ContingenciesThere is no change in the contingent liabilities as reported in the financial statements for the year ended 30 June 2012.

6.2 CommitmentsThe company has opened Letters of Credit for the import of spare parts valuing Rs. 56 million ( 30 June 2012: Rs. 51 million).

7. PROPERTY, PLANT AND EQUIPMENT

Opening book value 25,897,954 26,658,079 Additions during the period/ year 26,620 310,288 Written down value of disposals - (330) Depreciation for the period (318,814) (1,070,083)

Closing carrying amount 25,605,760 25,897,954

F C C L11


Quarter Ended

Un-audited Un-audited

30 September 2012

30 September 2011

8. COST OF SALES Rupees'000 Rupees'000

Raw material consumed 162,021 79,556

Packing material consumed 179,332 111,337

Stores and spares consumed 7,883 4,597

Salaries, wages and benefits 138,149 80,218

Rent, rates and taxes 3,736 1,635

Insurance 22,417 8,001

Fuel consumed 897,645 578,421

Power consumed 550,696 320,537

Depreciation 315,817 115,429

Repairs and maintenance 107,065 43,013

Technical assistance 677 -

Printing and stationery 238 197

Traveling and conveyance 4,011 1,614

Vehicle running and maintenance expenses 5,388 3,728

Communication, establishment and other expenses 1,224 2,485

2,396,299 1,350,768

Add: Opening work-in-process 677,001 210,041

Work in process transferred after trial run of line - - 260,372

Less: Closing work-in-process (641,609) (475,451)

Cost of goods manufactured 2,431,691 1,345,730

Add: Opening finished goods 146,138 80,289

Finished goods transferred after trial run of line-II

II

- 135,052

Less: Closing finished goods (126,602) (194,035)

2,451,227 1,367,036

Less: Own consumption capitalized - (2,521)

2,451,227 1,364,515

9. RELATED PARTY TRANSACTIONS

Fauji Foundation holds 57.09 % ordinary shares and 100% preference shares of the Company, therefore all subsidiaries and associated undertakings of Fauji Foundation are related parties of the Company. Other related parties comprise of directors, key management personnel, entities over which the directors are able to exercise significant influence and employees' fund. Transaction and balances with related parties are as follows:

F C C L12



Quarter Ended

30 September 2012

30 September 2011


Fauji Foundation -Sale of Cement 5,455 432 -Payment on account of clearance of shipments - 750 -Payment for use of medical facilities 69 - -Preference dividend paid 175,573 66,885 -Payment of rent and utilities 1,925 - -Amount received against underwriting of shares - 2,327,260 -Repayment of subordinated loan - 3,189,000 -Repayment of amount payable 300,000 - -Amount payable 115 - *

Payments made into Employees' Provident Fund 5,650 4,450 Payments made to Workers' (Profit) Participation Fund 52,169 26,206 Remuneration including benefits and perquisites to Chief Executive 2,870 2,468 Remuneration including benefits and perquisites to key management personnel 7,733 6,195 * Comparative figure relate to 30 June 2012 balance

10. Date of authorization for issue

This condensed interim financial information was authorized for issue by the Board of Directors of the Company in

meeting held on 30 October 2012 their

.

11. General

Figures have been rounded off to the nearest thousand of Rupees unless otherwise stated.

First Quarterly ReportJuly-September 2012First Quarterly ReportJuly-September 2012

ENVIRONMENTAL

ISO 9001 & ISO 14001APPROVED

Rawalpindi — Pakistan

Fauji Tower Block-III, 68 Tipu Road

If Undelivered please return to:

Company Secretary

Fauji Cement Company Limited

AUJICEMENT

Inner Text Format.cdr Final For PDF · Company are quoted on Karachi, Islamabad and Lahore stock...

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