NO T - Fauji Cement Company...

SAY NO TO C

ORRUPTION

F C C L

Company Information

Directors' Review

Auditors ' Report to Members on Review of Interim Financial Information

Condensed Interim Balance Sheet

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)

Jama Punji Information

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Contents1

AUJIAUJIAUJICEMENTCEMENTCEMENT

Half Yearly Report 2017-18

F C C L2

Company�Information

Brig Khizar Sultan Raja (Retd), SI(M)GM (Sales and Marketing) First Floor, Aslam Plaza, 60 AdamjeeRoad, Saddar, Rawalpindi-PakistanTel: (051) 5523836, 5528042 (051) 5528960Tel: (051) 5528963-64Fax: (051) 5528965-66Email:[email protected] [email protected]

Sales and Marketing Department

Mr. Omer AshrafTel: +092-051- 5500157E-mail: [email protected]

Chief Financial Officer

M/s KPMG Taseer Hadi & Co,Chartered Accountants6th Floor, State Life Building No. 5, Jinnah Avenue, Blue Area,P.O. Box 1323, Islamabad PakistanTel:+092-051-2823558

Auditors

M/s ORR Dignam & Co, AdvocatesndMarina Height ,2 Floor 109 East

Jinnah Avenue, IslamabadTel: +092-051-2260517-8

Legal Advisors

M/s Corplink (Pvt) LimitedWings Arcade, 1-K, Commercial, Model Town, Lahore Tel: +092-042-35916714-19 & 35869037 Email: [email protected],

Shares Registrar

Brig Ch Zafar Iqbal (Retd)Fauji Towers,Block III, 68 Tipu Road,Chaklala, RawalpindiTel: +092-051-9280075Fax: +092-051- 9280416E-mail: [email protected]

Company Secretary

Near Village Jhang Bahtar, Tehsil Fateh Jang, District AttockTel : 0572-538047-48 :0572- 2538138Fax: 0572-538025

Factory

http://www.fccl.com.pkCompany Website

Fauji Cement Company LimitedFauji Tower, Block III, 68 Tipu Road, Chaklala, RawalpindiTel : 051-9280081-83 : 051-5763321-24 : 051-5500159Fax : 051-9280416

Registered Office

Board of DirectorsLt Gen Syed Tariq Nadeem Gilani (Retd),HI(M) Chairman

Lt Gen Muhammad Ahsan Mahmood (Retd),HI(M) Chief Executive / MD

Mr. Qaiser Javed Director

Dr. Nadeem Inayat Director

Maj Gen Tahir Ashraf Khan (Retd),HI(M) Director

Maj Gen Wasim Sadiq (Retd),HI(M) Director

Brig Raashid Wali Janjua (Retd),SI(M) Director

Brig Asmat Ullah Khan Niazi (Retd),SI(M) Director

Mr. Pervez Inam Independent Director

Mr. Jawaid Iqbal Independent Director


F C C L3

Company�Information

Mr. Pervez Inam, (Chairman)

Mr. Qaiser Javed, (Member)

Dr. Nadeem Inayat, (Member)

Maj Gen Wasim Sadiq (Retd),HI(M), (Member)

Brig Ch Zafar Iqbal (Retd), (Secretary)

Audit Committee

Mr. Pervez Inam, (Chairman)

Maj Gen Tahir Ashraf Khan (Retd),HI(M), (Member)

Dr. Nadeem Inayat, (Member)

Brig Asmat Ullah Khan Niazi (Retd),SI(M), (Member)

Brig Ch. Zafar Iqbal (Retd), (Secretary)

Human Resource & Remuneration Committee

Brig Raashid Wali Janjua (Retd),SI(M), (Chairman)

Maj Gen Tahir Ashraf Khan (Retd),HI(M), (Member)

Maj Gen Wasim Sadiq (Retd),HI(M), (Member)

Mr. Muhammad Tariq, (Secretary)

Technical Committee

List of Banks

Allied Bank Limited.

Askari Bank Limited.

Al Baraka Bank Limited.

Bankislami Pakistan Limited

Bank Alfalah Limited.

Bank Al-Habib Limited.

Faysal Bank Limited.

Habib Bank Limited.

Meezan Bank Limited.

MCB Bank Limited.

National Bank of Pakistan.

Silk Bank Limited.

Standard Chartered Bank (Pakistan) Limited.

The Bank of Punjab.

United Bank Limited.


F C C L4

Directors'�Review

1.� The Board of Directors is pleased to present its review report along with the

condensed � interim financial information of the Company for the half year stended 31 December 2017.

2.� Industry Overview. Cement industry achieved a growth of 12.3% during six

months of current financial year with volumetric sales of 22.24 Million Tons as

compared to 19.81 Million Tons during the same period last year. Local sales

volume of the industry during six months of current financial year registered a

growth of 17.4% with volumetric sales of 19.84 Million Tons as compared to

16.89 Million Tons in same period last year. Whereas export sales registered a

decline of 17.3% with volumetric sales of 2.41 Million Tons as compared to

2.91 Million Tons in the same period last year.

3.� Company Overview. Overall sales volume of the company increased by

12.6% during the six months of current financial year with volumetric sales of

1.63 Million Tons as compared to 1.45 Million Tons during the same period last

year. Capacity utilization achieved by the company is 95 % as compared to

84% in the same period last year. Local sales volume during six months of this

financial year registered a growth of 6.48% with volumetric sales of 1.44

Million Tons as compared to 1.35 Million Tons in the same period last year.

Export sales registered growth of 99% with volumetric sales of 0.19 Million

tons as compared to 0.096 Million tons in the same period last year.

4.� Comparison of Key Financial Results. Key Financial results for the period st ended 31 December 2017 with same period of last year are tabulated below:-


Particulars

6 Months

a. Sales Revenue *

b. Gross Profit *

c. Profit Before Tax *

d. Net Profit after Tax *

e. Earnings per Share (Basic & Diluted)

* Rs.in Thousands except EPS

2016-17

10,187,143

2,318,274

1,856,384

1,302,952

0.94

2017-18

10,268,488

2,228,132

1,757,553

1,267,798

0.92

F C C L5

Directors'�Review

Lt Gen Syed Tariq Nadeem Gilani (Retd),HI(M)Chairman Board of Directors, FCCL

Rawalpindi 19 February 2018


5.� Business Performance. The production statistics of the Company for the six stmonths ended 31 December 2017 as compared to same period last year are

as under:-

6.� Financial Performance. Although cement despatches increased by 12.6%

compared to previous period but decline in sale prices and increase in coal

prices has resulted in decrease in EPS from Rs 0.94 to Rs 0.92.

7.� Future outlook. Based on the volumetric growth of 7% achieved in domestic stsales during the six months ended 31 December 2017 by the company, it is

anticipated that the demand of cement in the domestic market will remain ndstable during 2 Half of current financial year especially due to higher off take in

summers. Exports to Afghanistan are expected to show higher growth than the

last year.

8.� Work on the WHRP Project Line-1 is also nearing completion and expected to

start operations last week of February 2018 which will further reduce the

production cost.

9.� Acknowledgement. Directors express their appreciation to the bankers and

financial institutions that extended assistance in financing to the company and

the company workers, staff and executives for their devotion and hardworking.

Particulars Six Months Six Months Change 2017-18 (Tons) 2016-17 (Tons)

a. Cement Production 1,629,924 1,433,774 14%

b. Clinker Production 1,045,715 555,547 88%

c. Clinker Purchased 549,191 1,046,433 (48%)

F C C L6


F C C L7


Auditors ' Report to Members on Review of Interim Financial Information

Introduction

We have reviewed the accompanying condensed interim balance sheet of Fauji Cement Company Limited ("the Company") as at 31 December 2017, and the related condensed interim profit and loss account, condensed interim statement of comprehensive income, condensed interim cash flow statement, condensed interim statement of changes in equity and notes to the accounts for the six months period then ended (the interim financial information). Management is responsible for the preparation and presentation of this interim financial information in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of person's responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for Interim Financial Reporting.

Other matters

The figures for the three months period ended 31 December 2017, in the condensed interim profit and loss account and condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion on them.

Islamabad19 February 2018

KPMG Taseer Hadi & Co.Chartered AccountantsEngagement Partner: Inam-Ullah Kakra

F C C L8


F C C LCondensed�Interim�Balance�Sheet�as�at�31�December�2017

Chief Executive

9Half Yearly Report 2017-18

Un-audited Audited

31 December 2017 30 June 2017

Note Rupees'000 Rupees'000

SHARE CAPITAL AND RESERVES

Share capital 4 13,798,150 13,798,150

Reserves 5,908,940 5,882,975

19,707,090 19,681,125

NON - CURRENT LIABILITIES

Long term financing 5 849,958 1,063,045

Deferred liabilities 4,230,282 4,339,510

5,080,240

5,402,555

CURRENT LIABILITIES

Trade and other payables 2,101,965 1,558,258

Markup accrued 50,869 43,991

Short term borrowings 6 1,656,254 312,441

Current portion of long term financing 5 426,176 426,177

Provision for taxation-net - 327,672

4,235,264 2,668,539

29,022,594 27,752,219

CONTINGENCIES AND COMMITMENTS 7

The annexed notes from 1 to 16 form an integral part of this condensed interim financial information.

Director

10F C C LCondensed�Interim�Balance�Sheet�as�at�31�December�2017


Un-audited

Audited

31 December 2017 30 June 2017

Note Rupees'000 Rupees'000

NON - CURRENT ASSETS

Property, plant and equipment 8 22,736,198 22,003,943

Long term deposits and prepayments

86,601 86,601

22,822,799 22,090,544

CURRENT ASSETS

Stores, spares and loose tools

2,640,069 2,194,451

Stock in trade

1,188,228 1,071,970

Trade debts - considered good

1,465,364 1,148,618

Advances 28,148 83,001

Trade deposits, short term prepayments

and balance with statutory authority

185,708 53,374

Advance tax-Net

275,712 -

Interest accrued

539 2,663

Other receivables

50,080 589,761

Cash and bank balances

9 365,947 517,837

6,199,795 5,661,675

29,022,594 27,752,219

F C C L11

DirectorChief Executive

Condensed�Interim�Profit�and�Loss�Account�(Un-Audited)For�the�Six�Month�Period��Ended�31�December�2017


Three Months Ended

Six Months Ended

Note 31 December 2017 31 December 2016 31 December 2017 31 December 2016

Rupees'000 Rupees'000 Rupees'000 Rupees'000

Turnover-net 5,474,546

5,795,574

10,268,488

10,187,143

Cost of sales

10

(4,039,188)

(4,524,216)

(8,040,356)

(7,868,869)

Gross profit

1,435,358

1,271,358

2,228,132

2,318,274

Distribution cost

(79,636)

(41,332)

(119,991)

(75,421)

Administrative expenses

(100,240)

(92,215)

(89,377)

(174,401)

(167,138)

Other operating expenses

(75,719)

(137,398)

(136,966)

Finance cost

(42,082)

(71,541)

(73,938)

(149,254)

Other income

11

23,176

31,788

35,149

66,889

Profit before taxation

1,144,361

1,025,177

1,757,553

1,856,384

-

Current

(318,598)

(475,405)

(604,754)

(736,349)

-

Deferred

(2,091)

144,267

114,999

182,917

Taxation

(320,689)

(331,138)

(489,755)

(553,432)

Profit for the period

823,672

694,039

1,267,798

1,302,952

Earnings per share - Basic (Rupees)

0.50 0.60

0.60

0.92

0.94

Earnings per share -

Diluted (Rupees)

0.50

0.92

0.94


F C C L12


Condensed�Interim�Statement�of�Comprehensive�Income(Un�-�Audited)�For�the�Six�Month�Period��Ended�31�Decemberr�2017 Half Yearly Report 2017-18

Three Months Ended Six Months Ended

31 December 2017

31 December 2016

31 December 2017

31 December 2016


Profit for the period 823,672 694,039 1,267,798 1,302,952

Other comprehensive income for the period - - - -

Total comprehensive income for the period 823,672 694,039 1,267,798 1,302,952


F C C L13


Condensed�Interim��Cash�Flow�Statement�(Un�-�Audited)For�the�Six�Month�Period��Ended�31�December�2017


31 December 2017 31 December 2016

Rupees'000 Rupees'000

Cash flows from operating activities

Profit before tax 1,757,553 1,856,384

Adjustments for:

Depreciation 680,444 663,320

Provision for compensated absences 18,843 24,068

Workers' (Profit) Participation Fund including interest

and Workers' Welfare Fund 51,807 141,723

Finance cost (excluding interest on WPPF) 73,560 144,497

Gain on disposal of property, plant and equipment (10,332) (2,302)

Interest income including interest on long term advance (5,720) (14,188)

808,602 957,118

Operating cash flows before working capital changes 2,566,155 2,813,502

Decrease / (increase) in working capital

Stores, spares and loose tools (445,618) (49,561)

Stock in trade (116,258) (1,353,940)

Trade debts (316,746) (638,537)

Advances 54,853 77,731

Trade deposits, short term prepayments and balance with statutory authority (132,334) (205,486)

Other receivables (45,665) (3,068)

Trade and other payables 431,966 49,877

(569,802) (2,122,984)

Cash generated from operations 1,996,353 690,518

Compensated absences paid (1,299) (7,753)

Payment to Workers' (Profit) Participation Fund including interest (21,369) (425,175)

Income tax paid (1,208,137) (638,457)

Net cash generated from/ (used in) operating activities 765,548 (380,867)

Cash flows from investing activities

Additions to property, plant and equipment (1,412,848) (535,801)

Proceeds from disposal of property, plant and equipment 10,481 2,585

Insurance claim received 585,346 552,000

Short term investments encashment - 918,674

Interest received on bank deposits 7,844 18,309

Net cash (used in)/ generated from investing activities (809,177) 955,767

Cash flows from financing activities

Repayment of long term financing (213,088) (1,210,293)

Dividend paid on ordinary shares (1,172,304) (1,173,745)

Finance cost paid (66,682) (105,705)

Net cash used in financing activities (1,452,074) (2,489,743)

Decrease in cash and cash equivalents (1,495,703) (1,914,843)

Cash and cash equivalents at beginning of the period 205,396 1,587,542

Cash and cash equivalents at end of the period (1,290,307) (327,301)

Cash and cash equivalents comprise of the following:

Cash and bank balances 365,947 461,524

Short term borrowings - secured (1,656,254) (788,825)

(1,290,307) (327,301)


F C C L14

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F C C L15

1. STATUS AND NATURE OF BUSINESS

1.1 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 Pakistan Stock Exchange. The principal activity of the Company is manufacturing and sale of different types of cement. The Company's registered office is situated at Fauji Towers, Block-III, 68-Tipu Road, Rawalpindi.

1.2 The Company is in the process of setting up a new Waste Heat Recovery Power Project with gross output of 7.63 MW. For this, the Company has entered into an agreement with M/s Sinoma for supply of equipment.

2. BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

This condensed interim financial information of the Company for the six months period ended 31 December 2017 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 audited annual financial statements and should therefore be read in conjunction with the audited annual financial statements for the year ended 30 June 2017. Comparative balance sheet is extracted from audited annual financial statements as of 30 June 2017 whereas comparative profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity are stated from un-audited condensed interim financial information for the six months period ended 31 December 2016.

This condensed interim financial information is un-audited and is being submitted to the members as required under Section 245 of the Companies Ordinance, 1984 and the listing regulations of Pakistan Stock Exchange.

3. SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

3.1 The accounting policies, significant judgments made in the application of accounting policies, key sources of estimations, the methods of computation adopted in preparation of this condensed interim financial information and financial risk management policy are the same as those applied in preparation of audited annual financial statements for the year ended 30 June 2017.

3.2 The following standards, amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after 01 January 2018 and are not expected to have any significant effect on condensed interim unconsolidated financial information of the Company:

- Amendments to IFRS 2 – 'Share-based Payment’ (effective 01 January 2018) - Amendments to IAS 40 'Investment Property ‘ (effective 01 January 2018) - Amendments to IAS 28 ‘Investments in Associates and Joint Ventures’ (effective 01 January 2018)- IFRIC 23 ‘Uncertainty over Income Tax Treatments (effective 01 January 2019)- IFRS 15 ‘Revenue from contracts with customers’ (effective 01 July 2018) - IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration (effective 01 January 2018)- IFRS 9 ‘Financial Instruments’ and amendment (effective 01 July 2018) - Amendments to IAS 28 ‘Investments in Associates and Joint Ventures’ (effective 01 January 2019)

Annual improvements to IFRS standards 2015-2017 cycle: - IFRS 3 ‘Business Combinations' and IFRS 11 'Joint Arrangement' (effective 01 January 2019) - IAS 12 ‘Income Taxes’ (effective 01 January 2019) - IAS 23 'Borrowing Cost' (effective 01 January 2019)

Notes�to�the�Condensed�Interim�Financial�Information�(Un-Audited)For�the�Six�Month�Period��Ended�31�December�2017 Half Yearly Report 2017-18

F C C L16

Notes�to�the�Condensed�Interim�Financial�Information�(Un-Audited)For�the�Six�Month�Period��Ended�31�December��2017


The above amendments are not likely to have an impact on the Company’s financial information.

In addition, the Companies Act, 2017 was enacted on 30 May 2017 and Securities and Exchange Commission of Pakistan (SECP) vide its circular 23 of 2017 has clarified that the companies whose financial year closes on or before 31 December 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984. The Companies Act, 2017 applicable for the financial year beginning on 01 January 2018 requires certain additional disclosures and changes for certain accounting treatments including accounting for surplus on revaluation of property, plant and equipment and investment in associates which may require change in the relevant accounting policy.

4. SHARE CAPITAL

There is no change in authorised and issued, subscribed and paid up share capital of the Company from 30 June 2017.

5.1.1 The markup rates, facility limits, securities offered for the term finance facilities are the same as disclosed in the annual audited financial statements of the Company for the year ended 30 June 2017.

6. SHORT TERM BORROWINGS (SECURED) - CONVENTIONAL BANKS

The Company has short term running finance facility limits to the tune of Rs. 2,155 million (30 June 2017: Rs. 2,250 million) from banking companies. These facilities are secured against first pari passu charge by way of hypothecation over the present and future assets of the Company (excluding land and building) retaining 25% margin. The markup rates are the same as disclosed in the annual audited financial statements of the Company for the year ended 30 June 2017.

7. CONTINGENCIES AND COMMITMENTS

7.1 Contingencies

There is no change in the contingent liabilities as reported in the financial statements for the

Un-audited Audited

Note 31 December 2017 30 June 2017

5. LONG TERM FINANCING - SECURED Rupees'000 Rupees'000

- From banking companies (conventional banks)

Term finance facilities - secured 5.1 1,276,134 1,489,222

Less: Current portion shown under current liabilities (426,176) (426,177)

849,958

1,063,045

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

Opening balance

1,489,222

4,012,133

Repayments during the period / year

(213,088)

(2,527,052)

Exchange loss on revaluation and transaction cost adjustment

-

4,141

Closing balance

5.1.1

1,276,134

1,489,222

F C C L17


year ended 30 June 2017 except that appeal filed by the Company against Competition Commission of Pakistan (CCP) in Supreme Court of pakistan has been referred to Competition Appelate Tribunal for their decision.

7.2 Commitments

7.2.1 The Company has opened letters of credit for the import of spare parts and coal valuing Rs. 541 million (30 June 2017: Rs. 776 million).

7.2.2 The Company has capital commitments of Rs. 312 million (30 June 2017: Rs. 921 million).

Un-audited Audited 31 December 2017 30 June 2017

PROPERTY, PLANT AND EQUIPMENT Rupees'000 Rupees'000

Opening book value 22,003,943 21,701,250 Additions during the period / year 1,412,848 1,621,281 Written down value of disposals (149) (2,591) Depreciation for the period / year (680,444) (1,315,997)

Closing book value 22,736,198 22,003,943

8.

9 CASH AND BANK BALANCES Un-audited Audited 31 December 2017 30 June 2017


Cash at banks

Deposit accounts - Conventional banks 187,230 255,072 Deposit accounts - Islamic banks 874 200,252 Current accounts - Conventional banks 176,471 62,253

Current accounts - Islamic banks 28 50

364,603 517,627 Cash in hand 1,344 210

365,947 517,837

F C C L18



31 December 2017

31 December 2016

31 December 2017

31 December 2016

Rupees'000 Rupees'000 Rupees'000 Rupees'000 10

COST OF SALES

Raw material consumed 362,667 145,195 487,880 275,419

Packing material consumed 246,461 233,585 445,321 414,910

Stores and spares consumed 13,895 6,220 27,322 13,519

Salaries, wages and benefits 356,563 283,020 594,700 524,647

Rent, rates and taxes 6,317 6,712 12,069 11,527

Insurance 32,272 20,321 64,638 40,543

Fuel consumed 1,475,536 417,196 1,875,261 939,603

Power consumed 742,019 493,013 1,200,863 809,257

Depreciation

342,225

326,785

670,607

653,430

Repairs and maintenance

123,328

100,508

269,661

166,546

Technical assistance

1,131

8,342

1,554

8,469

Printing and stationery

722

1,621

2,058

2,357

Traveling and conveyance

5,716

5,752

15,268

10,590

Vehicle running and maintenance expenses

3,723

4,722

8,501

9,385

Other directly attributable expenses

17,802

4,904

24,139

8,893

Clinker purchased

450,108

2,415,314

2,462,662

5,274,288

4,180,485

4,473,210

8,162,504

9,163,383

Add:

Opening work-in-process

619,947

1,570,140

693,604

251,313

Less:

Closing work-in-process

(846,858)

(1,545,036)

(846,858)

(1,545,036)

Cost of goods manufactured

3,953,574

4,498,314

8,009,250

7,869,660

Add:

Opening finished goods

280,700

190,721

232,036

164,028

Less:

Closing finished goods

(189,977)

(164,140)

(189,977)

(164,140)

Less:

Own consumption capitalized

(5,109)

(679)

(10,953)

(679)

4,039,188

4,524,216

8,040,356

7,868,869

11 OTHER INCOME


31 December 2017

31 December 2016

31 December 2017

31 December 2016

Income from financial assets


Income from deposits, advances and investments - Conventional banks 2,571 4,797

5,276 7,910 - Islamic banks

17

1,710

443

6,278

2,588

6,507

5,719

14,188

Gain on re-measurement of investments classified as fair value through profit or loss-held for trading

- Conventional funds

-

11,081

-

26,462

- Islamic funds

-

1,178

-

2,611

-

12,259

-

29,073 Income from non financial assets

Gain on disposal of property, 7,254

569 10,332 2,302 plant and equipment

Other income

13,334

12,453

19,098

21,326

23,176

31,788

35,149

66,889

F C C L19

Notes�to�the�Condensed�Interim�Financial�Information�(Un-Audited)For�the�Six�Month�Period��Ended��31�December�2017


12

RELATED PARTY TRANSACTIONS AND BALANCES

There is no change in relationship with related parties during the period. Significant transactions with related parties are as follows:

Six Months Ended

31 December 2017

31 December 2016


Transactions and balances with associated undertakings/companies due to common directorship

- Sale of cement 2,740 7,813

- Advance against sale of cement 1,320 1,260 *

- Donation paid through Fauji Foundation 1,000 -

- Payment of rent and utilities 6,998 6,144

- Payment for use of medical facilities 632 571

- Donation paid - 500

- Payment on account of clearance of shipments 79 17

- Dividend paid on ordinary shares 607,410 543,650

- Balance at Askari Bank Limited (AKBL) 12 27 *

- Profit received from AKBL 8 14

- Investment matured in AIML - 206,388

- Payments to Askari Cement Limited on account of purchase of clinker

14,304

352,064

- Training fee paid to Fauji Fertilizer Bin Qasim Limited 17

-

Employees funds

-

Payments made into Employees' Provident Fund

22,027

20,819

Others

-

Director's fee

1,350

1,510

-

Remuneration including benefits and perquisites to Chief Executive

10,346 10,511

-

Remuneration including benefits and perquisites to key management personnel

29,974 44,134

*

This represents balance as at 30 June 2017

F C C L20


FAIR

VA

LU

E O

F F

INA

NC

IAL

INS

TR

UM

EN

TS

Cla

ssif

icat

ion

an

d f

air

valu

es

The follo

win

g table

show

s th

e c

arr

ying a

mount and fair v

alu

es

of fin

anci

al a

ssets

and fin

anci

al l

iabili

ties,

incl

udin

g their le

vels

in the fa

hier

arch

y. It

doe

s no

t inc

lude

fair

valu

e in

form

atio

n fo

r fin

anci

al a

sset

s an

d fin

anci

al li

abili

ties

not m

easu

red

at fa

ir va

lue

if th

e ca

rryi

ng a

mou

nt is

a

reas

onab

le a

ppro

xim

atio

n of

fair

valu

e.

bal

ance

sh

eet

fin

anci

al in

stru

men

ts

No

te

Lo

ans

and

Oth

er

Tota

l

Lev

el 1

Fai

r va

lue

Lev

el 2

Lev

el 3

rece

ivab

les

fin

anci

al

liab

iliti

es

31

Dec

emb

er 2

017

Fin

anci

al a

sset

s n

ot

mea

sure

d a

t fa

ir v

alu

e

13.1

.1

Long

term

dep

osits

86,6

01

-

86

,601

-

-

Tra

de d

ebts

-

cons

ider

ed g

ood

1,46

5,36

4

-

1,46

5,36

4

-

-

Tra

de d

epos

its

15,1

42

-

15

,142

-

-

Inte

rest

acc

rued

539

-

539

-

-

Oth

er r

ecei

vabl

es

50,0

80

-

50

,080

-

-

Cas

h an

d ba

nk b

alan

ces

365,

947

-

365,

947

-

-

1,98

3,67

3

-

1,98

3,67

3

-

-

Fin

anci

al li

abili

ties

no

t m

easu

red

at

fair

val

ue

13.1

.1

Long

term

fina

ncin

g

1,

276,

134

1,27

6,13

4

-

-

-

27

3,66

3

27

3,66

3

-

-

Acc

rued

liab

ilitie

s

-

53

9,08

5

53

9,08

5

-

-

Ret

entio

n m

oney

-

37,6

11

37,6

11

-

-

Sec

urity

dep

osits

-

13

7,90

4

13

7,90

4

-

-

Oth

er li

abili

ties

-

12

1,41

3

12

1,41

3

-

-

Unc

laim

ed d

ivid

end

-

27,0

84

27,0

84

-

-

Com

pens

ated

abs

ence

s

-

15,2

44

15,2

44

-

-

Mar

kup

accr

ued

-

43,9

91

43,9

91

-

-

Sho

rt te

rm b

orro

win

gs

-

31

2,44

1

31

2,44

1

-

2,

784,

570

2,78

4,57

0

-

-

13

13.1

ir v

alu

e

On

-

Tota

l

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Cre

dito

rs

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

F C C L21

Notes�to�the�Condensed�Interim�Financial�Information�(Un-Audited)For�the�Six�Month�Period��Ended��31�December�2017 Half Yearly Report 2017-18

30 J

une

2017

N

ote

Oth

er

To

tal

rece

ivab

les

Loan

s an

d

finan

cial

Fair

val

ue

Le

vel 1

Le

vel 2

Le

vel 3

To

tal

liabi

litie

s

Fina

ncia

l ass

ets

not m

easu

red

at fa

ir v

alue

13.1

.1

Long

term

dep

osits

86,6

01

-

86

,601

-

-

Trad

e de

bts

-

net o

f pro

visi

on

1,

148,

618

-

1,

148,

618

-

-

Dep

osits

17,9

94

-

17

,994

-

-

Inte

rest

acc

rued

2,

663

-

2,66

3

-

-

Oth

er re

ceiv

able

s

58

9,76

1

-

589,

761

-

-

Cas

h an

d ba

nk b

alan

ces

51

7,83

7

-

517,

837

-

-

2,

363,

474

-

2,

363,

474

-

-

Fina

ncia

l lia

bilit

ies

not m

easu

red

at fa

ir v

alue

13.1

.1

Long

term

fina

ncin

g

-

1,

489,

222

1,48

9,22

2

-

-

Cre

dito

rs

-

27

3,66

3

27

3,66

3

-

-

Acc

rued

liab

ilitie

s

-

53

9,08

5

53

9,08

5

-

-

Ret

entio

n m

oney

-

37,6

11

37,6

11

-

-

Sec

urity

dep

osits

-

13

7,90

4

13

7,90

4

-

-

Oth

er li

abili

ties

-

12

1,41

3

12

1,41

3

-

-

Unc

laim

ed d

ivid

end

-

27,0

84

27,0

84

-

-

Com

pens

ated

abs

ence

s

-

15,2

44

15,2

44

-

-

Mar

kup

accr

ued

-

43,9

91

43,9

91

-

-

Sho

rt te

rm b

orro

win

gs

-

3124

41

312,

441

-

2,

997,

658

2,99

7,65

8

-

-

Sin

ce th

ese

finan

cial

ass

ets

and

finan

cial

liab

ilitie

s ar

e ei

ther

sho

rt te

rm in

nat

ure

or re

pric

ed p

erio

dica

lly th

eref

ore

fair

val

ue a

nd c

arry

ing

valu

e of

th

ese

finac

ial a

sset

s an

d fin

anci

al li

abili

ties

is s

ame.

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

13.1

.1

F C C L22

Notes�to�the�Condensed�Interim�Financial�Information�(Un-Audited)For�the�Six�Month�Period��Ended��31�December�2017


14 PLANT CAPACITY

The Company has upgraded its clinker capacity of Line-II from 7,200 TPD to 7,600 TPD with effect from 11 December 2017.

15 DATE OF AUTHORIZATION FOR ISSUE

This condensed interim financial information was authorized for issue by the Board of Directors of the Company in their meeting held on 19 February 2018.

16 GENERAL

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


F C C L23

Notes�to�the�Condensed�Interim�Financial�Information�(Un-Audited)For�the�Six�Month�Period��Ended�31�December�2017


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