Contents

FCCL
3rd Quarterly Report 2012

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)

3 4 6 7 8 9 10

Company Information

FCCL
3rd Quarterly Report 2012

Board of Directors

Lt Gen (R) Muhammad Mustafa Khan, HI (M) , (Chairman) Lt Gen (R) Muhammad Sabir,HI (M), (CE/MD) Mr. Qaiser Javed Dr. Nadeem Inayat Brig (R) Liaqat Ali , TI (M) Brig (R) Agha Ali Hassan, SI(M) Brig (R) Parvez Sarwar Khan, SI (M) Brig (R) Dr. Gulfam Al am, SI (M) Mr. Max Kruse, IFU Brig (R) Sajjad Azam Khan, SI (M) T Bt Fauji Tower Block III 68 Tipu Road, Chaklala, Rawalpindi Tel: (051) 9280075 Fax: (051) 9280416 E - mail: sajjad@fccl.com.pk Mr. Omer Ashraf Tel: (051) 5500157 M/s KPMG Taseer Hadi & Co, Chartered Accountants Fax No: (051) 2822671 M/s Orr Dignam & Co, Advocates Fax No: (051) 2260653

Company Secretary

Chief Financial Officer

Auditors

Legal Advisors

Registered Office

Ist Floor, Aslam Plaza, 60 Adamjee Road, Sadar, Rawalpindi-Pakistan. Tel: (051) 5523836, 5528042, 5528960, 5528963-64 Fax: (051) 5528965 -66

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

Directors' Review
1.

FCCL
3rd Quarterly Report 2012

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

audited accounts of the Company for the quarter ended 31st March 2012.

2.

During the 3rd quarter the Company earned a net profit of Rs. 243 million as compared

to Rs. 52 million in the same period of last year. Our capacity utilization remained at 64% (based on the enhanced capacity of line-I and line-2) as compared to 92% (based on the capacity of line-I only) in the corresponding period last year. The company is making considerable efforts to enhance its market share post expansion.

3.

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

corresponding period of last year due to increase in electricity and fuel prices. Secondly as this is the first year of new line so the impact of financial charges and depreciation is at its highest. 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 increases.

4.

Looking forward, the 4th quarter with onset of summer season is historically high in

terms of dispatches. We are hopeful that the growth in domestic dispatches will help to keep prices stable. The major challenge however remains stable electricity supply and Fuel Prices.

Rawalpindi 16 April 2012

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

Condensed Interim Balance Sheet as at 31st March 2012

31st March 2012 Un-audited Rupees'000

FCCL

3rd Quarterly Report 2012

Note

30th June 2011 Audited Rupees'000

SHARE CAPITAL AND RESERVES Share capital Advance against issue of shares Reserves 4 13,798,150 (170,054) 13,628,096 7,419,887 861,871 2,732,259 11,014,017 3,189,000

Subordinated loan - unsecured NON - CURRENT LIABILITIES Long term financing - secured Deferred liability - compensated absences Deferred tax liability - net 5

10,708,147 25,781 859,782

11,805,480 22,674 794,918

CURRENT LIABILITIES Trade and other payables Markup accrued Short term borrowings - secured Current portion of long term financing 2,391,662 245,920 2,298,594 2,259,231 7,195,407 32,417,213 1,290,968 444,297 1,901,333 1,748,142 5,384,740 32,210,829

CONTINGENCIES AND COMMITMENTS

The annexed notes 1 to 11 form an integral part of these condensed interim financial information

Chief Executive

Condensed Interim Balance Sheet as at 31st March 2012

31st March 2012 Un-audited Rupees'000

FCCL
30th June 2011 Audited Rupees'000

3rd Quarterly Report 2012

Note

NON - CURRENT ASSETS Property, plant and equipment Long term advance Long term deposits and prepayments CURRENT ASSETS Stores, spares and loose tools Stock in trade Trade debts Advances Trade deposits, short term prepayments and balance with statutory authority Interest accrued Other receivables Cash and bank balances 3,263,245 979,068 75,603 27,710 418,512 421 24,072 340,582 5,129,213 32,417,213 2,444,173 493,922 36,960 40,733 769,467 836 27,188 978,847 4,792,126 32,210,829 7 26,613,118 4,500 670,382 26,658,079 4,500 756,124

Director

Condensed Interim Profit And Loss Account (Un-Audited) FCCL 6 3rd Quarterly Report 2012 for the Nine Months Ended 31st March 2012
Quarter Ended Note 31st March 2012 31st March 2011 Rupees'000 SALES Less: Government levies NET SALES Less: Cost of sales GROSS PROFIT Other income 8 3,894,069 (685,146) 3,208,923 (2,289,862) 919,061 6,743 925,804 Distribution cost Administrative expenses Other operating expenses PROFIT FROM OPERATIONS Finance cost NET PROFIT BEFORE TAXATION Taxation Current Deferred (32,089) (64,235) (96,324) NET PROFIT AFTER TAXATION Earnings per share - Basic (Rupees) Earnings per share - Diluted (Rupees) 242,877 0.182 0.176 (11,579) (21,872) (33,451) 52,249 0.075 0.043 (81,162) (64,864) (146,026) 140,391 0.109 0.105 (34,102) (31,811) (65,913) 303,381 0.438 0.295 (36,558) (32,806) (21,087) 835,353 (496,152) 339,201 Rupees'000 1,448,084 (290,229) 1,157,855 (1,010,696) 147,159 7,655 154,814 (15,942) (34,365) (6,303) 98,204 (12,504) 85,700 Nine Months Ended 31st March 2012 31st March 2011 Rupees'000 9,064,930 (1,599,344) 7,465,586 (5,807,683) 1,657,903 20,570 1,678,473 (66,864) (96,421) (21,247) 1,493,941 (1,207,524) 286,417 Rupees'000 4,162,587 (752,438) 3,410,149 (2,842,357) 567,792 17,157 584,949 (54,279) (115,253) (27,349) 388,068 (18,774) 369,294

The annexed notes 1 to 11 form an integral part of these condensed interim financial information

Chief Executive

Director

Condensed Interim Statement of Comprehensive Income(Un - Audited) F C C L 7 3rd Quarterly Report 2012 for the Nine Months Ended 31st March 2012
Quarter ended 31st March 2012 31st March 2011 Rupees'000 Rupees'000 Nine months ended 31st March 2012 31st March 2011 Rupees'000 Rupees'000

Net profit after taxation Other comprehensive income Effective portion of changes in fair value of cash flow hedge -net

242,877

52,249

140,391

303,381

37,014

121,076

Total comprehensive income

242,877

89,263

140,391

424,457

The annexed notes 1 to 11 form an integral part of these condensed interim financial information

Chief Executive

Director

FCCL Condensed Interim Cash Flow Statement (Un - Audited) 8 3rd Quarterly Report 2012 for the Nine Months Ended 31st March 2012
31st March 2012 Rupees'000 Cash flows from operating activities Net profit before taxation Adjustment for: Depreciation Provision for compensated absences Workers' (Profit) Participation Fund including interest and Workers' Welfare Fund Finance cost Gain on disposal of property, plant and equipment Interest income including interest on long term advance Operating cash flows before working capital changes Increase in stores and stocks Increase in trade debts Decrease in advances Decrease /(increase) in trade deposits, short term prepayments and balance with statutory authority Decrease in other receivables Increase /(decrease) in trade and other payables Cash generated from /(used in) operations Compensated absences paid Payment to Workers' (Profit) Participation Fund Income tax paid Net cash generated from/ (used in) operating activities Cash flows from investing activities Additions in property, plant and equipment excluding borrowing cost capitalized Proceeds from disposal of property, plant and equipment Interest received on bank deposits Net cash used in investing activities Cash flows from financing activities Repayment of sub-ordinated loan Repayment of long term financing Proceeds from long-term financing Proceeds from issue of right shares -net Payment of arrangement fee/ guarantee premium Dividend paid on ordinary shares Dividend paid on preference shares Export re-finance and import finance (net) Finance cost paid Net cash (used in )/ generated from financing activities Decrease in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period Cash and cash equivalents comprise of the following: Cash and bank balances Short term running finances The annexed notes 1 to 11 form an integral part of these condensed interim financial information 340,582 (708,594) (368,012) 109,737 (1,679,244) (1,569,507) (3,189,000) (1,006,540) 2,325,555 (66,885) 183,626 (1,240,438) (2,993,682) (851,900) 483,888 (368,012) 2,587,000 (11,238) (8) (33,442) (49,090) (2,162,422) 330,800 (1,695,087) 125,580 (1,569,507) (227,499) 6,459 7,625 (213,415) (1,024,033) 4,080 7,266 (1,012,687) 761,318 19,189 21,363 1,207,266 (6,348) (7,209) 1,995,579 2,281,996 (1,304,218) (38,643) 13,023 361,912 3,116 1,177,752 212,942 2,494,938 (21,154) (26,464) (92,123) 2,355,197 293,987 25,579 27,264 18,710 (509) (7,286) 357,745 727,039 (1,409,627) (31,259) 2,268 (196,862) 22,024 (35,847) (1,649,303) (922,264) (20,777) (17,534) (52,625) (1,013,200) 286,417 369,294 31st March 2011 Rupees'000

Chief Executive

Director

Share capital Preference Accumulated profit Rupees'000 1,153,660 303,381 303,381 1,457,041 1,512,436 140,391 140,391 (458,496) 1,652,827 Rupees'000 9,610,685 303,381 121,076 424,457 10,035,142 11,014,017 140,391 140,391 148,133 2,327,261 (1,706) 2,325,555 13,628,096 Advance against issue of shares Total Rupees'000 1,833,709 1,826,452 (3,189,131) (1,706) (3,190,837) (1,364,385) 148,133 (606,629) (675,495) 861,871 121,076 121,076 -

Revenue reserve

Ordinary

Capital reserve Share premium/ (discount on Hedging issue of shares) reserve Rupees'000 1,833,709 Rupees'000 (796,571)

Balance as at 30 June 2010 486,992 486,992 2,327,261 (3,189,132) (861,871) 486,992 -

Rupees'000 6,932,895

Rupees'000 486,992

Total comprehensive income

Profit for the period

Other comprehensive income

Total comprehensive income for the period

Total transaction with owners Balance as at 31 March 2011

6,932,895

Balance as at 30 June 2011 -

6,932,895

Total comprehensive income

Profit for the period

Total comprehensive income for the period

Transfer during the period

Transaction with the owners

Amount received against issue of right shares Issuance of right shares at discount

6,378,263

Cost incurred in connection with issue of right shares

Total transaction with the owners Balance as at 31 March 2012

6,378,263

13,311,158

FCCL Condensed Interim Statement of Change in Equity (Un - Audited) 9 3rd Quarterly Report 2012 for the Nine Months Ended 31st March 2012

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

Chief Executive

Director

Notes to the Condensed Interim Financial Information (Un-Audited) F C C L 10 3rd Quarterly Report 2012 for the Nine Months Ended 31st March 2012
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 Aslam Plaza, Adamjee Road, Rawalpindi. Fauji Foundation holds 61.97% ordinary and 100% preference shares in the Company. This condensed interim financial information is un-audited and is being submitted to the shareholders' in accordance with the requirements of Section 245 of the Companies Ordinance, 1984. This condensed interim financial information has been prepared in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. 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 2011. Comparative balance sheet is extracted from annual audited financial statements for the year ended 30 June 2011 whereas comparative profit and loss account, cash flow statement, statement of comprehensive income and statement of changes in equity are stated from un-audited condensed interim financial information for nine months period ended 31 March 2011. The accounting policies, related judgments, estimates and assumptions adopted for the preparation of this condensed interim financial information are the same as those applied in preparation of the annual financial statements of the Company for the year ended 30 June 2011. SHARE CAPITAL During the period the Company has issued 637,826 thousand ordinary shares of face value of Rs 10 each at a discount price of Rs. 5 per share by way of right share in proportion of 92 shares for every 100 shares held. The movement in share capital is as follows: Number '000 Balance as at 30 June 2011 Shares allotted (against cash) Closing balance 5. LONG TERM FINANCING - secured Note 741,988 637,826 1,379,814 Un-audited 31st March 2012 Rupees'000 12,967,378 (2,259,231) 10,708,147 5.1 Movement in this account during the period/year is as follows: Opening balance Long-term finance obtained during the period/year Principal repayment during the period Exchange difference on revaluation and unamortized portion of transaction cost Closing balance 13,553,622 (1,006,540) 420,296 12,967,378 12,980,414 500,000 73,208 13,553,622 Rupees '000 7,419,887 6,378,263 13,798,150 Audited 30th June 2011 Rupees'000 13,553,622 (1,748,142) 11,805,480

2.

3.

4.

- From banking companies Term finance facilities including syndicated term finance facilities- secured Less: Current portion shown under current liabilities 5.1

6.

CONTINGENCIES AND COMMITMENTS 6.1 Contingencies There is no change in the contingent liabilities as reported in the annual financial statements for the year ended 30 June 2011 except for the following: The custom case of Rs 347 million was referred back by the Honorable Supreme Court to custom authorities for review. Thereafter, the Deputy Collector decided the case against the Company for the same amount and the Company has filed an appeal against the decision with the Collector. The Company is of the opinion based on strong legal advise that it will be decided favorably.

Notes to the Condensed Interim Financial Information (Un-Audited) F C C L 11 3rd Quarterly Report 2012 for the Nine Months Ended 31st March 2012
6.2 Commitments a) The Company has opened Letters of Credit for the import of coal and spare parts valuing Rs. 445 million (30 June 2011: Rs. 564 million). b) The Company has no capital commitments (30 June 2011: Rs. 193 million). 7. PROPERTY, PLANT AND EQUIPMENT Un-audited 31st March 2012 Rupees'000 Opening carrying value Additions during the period/year Written down value of disposals Depreciation for the period/year Closing carrying value 7.1 26,658,079 716,469 (112) (761,318) 26,613,118 Audited 30th June 2011 Rupees'000 23,819,040 3,236,125 (4,949) (392,137) 26,658,079

During the period, the Company's new cement line has started commercial production and accordingly the related cost has been transferred to operating fixed assets.

Quarter Ended Nine Months Ended 31st March 2012 31st March 2011 31st March 2012 31st March 2011 Rupees'000 8. COST OF SALES Raw material consumed Packing material consumed Stores and spares consumed Salaries, wages and benefits Rent, rates and taxes Insurance Fuel consumed Power consumed Depreciation Repairs and maintenance Technical assistance Printing and stationery Traveling and conveyance Vehicle running and maintenance expenses Communication, establishment and other expenses Add: Opening work-in-process Work in process transferred after trial run of Line-II Less: Closing work-in-process Cost of goods manufactured Add: Opening finished goods Finished goods trnasferred after trial run of Line-II Less: Closing finished goods Less: Own consumption capitalized 157,292 177,301 10,586 100,854 4,107 21,778 1,056,810 497,887 317,258 33,666 300 426 3,637 5,461 1,956 2,389,319 543,894 (594,185) 2,339,028 182,113 (231,643) 2,289,498 364 2,289,862 Rupees'000 64,197 89,432 5,599 81,639 1,435 6,213 470,029 156,556 93,909 39,698 756 471 2,580 3,732 2,406 1,018,652 132,278 (135,733) 1,015,197 60,342 (61,181) 1,014,358 (3,662) 1,010,696 Rupees'000 384,117 458,631 21,329 326,735 9,083 48,824 2,631,570 1,162,989 751,810 128,359 732 1,174 8,827 14,101 6,879 5,955,160 210,041 260,372 (594,185) 5,831,388 80,288 135,052 (231,643) 5,815,085 (7,402) 5,807,683 Rupees'000 196,614 257,272 18,376 226,234 4,073 18,595 1,361,201 500,325 284,258 115,395 756 1,238 5,405 11,224 5,500 3,006,466 11,195 (135,733) 2,881,928 33,411 (61,181) 2,854,158 (11,801) 2,842,357

Notes to the Condensed Interim Financial Information (Un-Audited) F C C L 12 3rd Quarterly Report 2012 for the Nine Months Ended 31st March 2012
9. RELATED PARTY TRANSACTIONS AND BALANCES Fauji Foundation holds 61.97% 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: Nine Months Ended 31st March 2012 31st March 2011 Rupees'000 Fauji Foundation - Sale of cement - Preference dividend paid - Payment for use of medical facilities - Amount paid on account of clearance of shipments - Amount received against underwriting of shares - Subordinated loan obtained during the period - unsecured - Balance of subordinated loan - unsecured - Repayment of subordinated loan - Balance receivable on account of clearance of shipments - Preference dividend payable - Amount payable - unsecured - Office rent Payments made to Employees' Provident Fund Payments made to Workers' (Profit) Participation Fund Remuneration including benefits and perquisites to Chief Executive Remuneration including benefits and perquisites to key management personnel * Comparative figures relate to 30 June 2011 balances 10. DATE OF AUTHORIZATION FOR ISSUE These condensed interim financial statements were authorized for issue by the Board of Directors of the Company in their meeting held on 16 April , 2012. 11. GENERAL Figures have been rounded off to the nearest thousand of rupees unless otherwise stated. 623 66,885 36 13,950 2,327,261 3,189,000 350,000 2,013 13,404 26,206 16,412 22,999 8,616 33,442 121 25,000 2,087,000 3,189,000 * 6,613 * 66,885 * 660 11,289 17,534 19,423 19,662 Rupees'000

Chief Executive

Director