Maple Leaf Cement Factory

Annual Report 2017
S T R E N G T H S O F PA K I S TA N
CONTENTS
Financial Highlights ..............................................................02 Statement of Cash Flows Direct Method ..........................105
Geographical Presence .......................................................03 Results Reported in Interim Financial Statements
Company Information..........................................................05 and Final Accounts ...........................................................106
Vision Statement .................................................................07 Statement of Value Added and How Distributed ..............108
Mission Statement ..............................................................07 Graphical Presentation - Stakeholders’ Information ..........110
Corporate Strategy ..............................................................09 Pattern of Shareholding .....................................................112
Core Values .........................................................................09 Statement of Compliance with
History of Maple ..................................................................12 the Code of Corporate Governance ................................120
Code of Business Conduct and Ethical Principles ..............14 Review Report to the Members on Statement of
Company Profile and Group Structure ................................15 Compliance with the Code of Corporate Governance .....124
Statement of Overall Strategic Objectives 2017-2018 ........17
Notice of Annual General Meeting.......................................20 FINANCIAL STATEMENTS
Chairman’s Review ..............................................................30 Auditors’ Report to the Members .....................................127
Directors’ Report to the Shareholders .................................33 Balance Sheet ..................................................................128
Brief Profile of Directors .......................................................64 Profit and Loss Account ...................................................130
The Board Structure and its Committees............................67 Statement of Comprehensive Income ..............................131
Policy and Procedures for Stakeholders’ Engagement.......72 Cash Flow Statement ....................................................... 132
Report of the Audit Committee ...........................................80 Statement of Changes in Equity ........................................134
Risk and Opportunity Report...............................................82 Notes to Financial Statements ..........................................135
Calendar of Notable Events.................................................89
Organization Chart ..............................................................90 CONSOLIDATED FINANCIAL STATEMENTS
Definitions and Glossary of Terms .......................................91 Directors’ Report on Consolidated Financial Statements 202
Horizontal Analysis - Six Years.............................................92 Auditors’ Report ................................................................203
Vertical Analysis - Six Years .................................................93 Balance Sheet ...................................................................204
Summary of Cash Flow Statement - Six Years ...................96 Profit and Loss Account ....................................................206
Comments on Six Years Analysis ........................................97 Statement of Comprehensive Income...............................207
Analysis of Financial Ratios..................................................99 Cash Flow Statement ........................................................208
Comments on Ratio Analysis ...........................................100 Statement of Changes in Equity ........................................210
DuPont Analysis ................................................................101 Notes to the Consolidated Financial Statements ..............211
Key Operating and Financial Data .....................................104 FORM OF PROXY
Annual Report 2017 1

STRENGTHS OF PAKISTAN
FINANCIAL HIGHLIGHTS
2017 VS 2016
7%
Local Sales
2% 30%
Sales Revenue Interest Coverage
Growth
8% -2% 16% 10%

Price Earnings Profit After Tax Shareholder’s Wealth
Ratio Equity Generated
11% 21%
Breakup Value
Total Assets
6%Market
Capitalization
Per Share
2 Maple Leaf Cement

GEOGRAPHICAL PRESENCE
Head Office
42 - Lawrence Road, Lahore
Regional Sales Office, Lahore
304-B, 3rd Floor,
City Tower, Main Boulevard,
Gulberg II, Lahore.
Regional Sales Office, Rawalpindi

C/O Kohinoor Textile Mills Ltd
Peshawar Road,
Rawalpindi
Regional Sales Office, Faisalabad

Office # 10, 3rd Floor,
Legacy Tower, Kohinoor City,
Jaranwala Road, Faisalabad.
Regional Sales Office, Multan

7th Floor, 708 Abdali Road
Multan
Plant
Iskanderabad Distt: Mianwali
Regional Office
Regional Sales Office, Sargodha 25 West Wharf Road, Karachi
Office No. 59, 2nd Floor
Al Rehman Trade Centre
University Road
Sargodha

4 Maple Leaf Cement

COMPANY INFORMATION
Board of Directors National Bank of Pakistan
Mr. Tariq Sayeed Saigol ........................Chairman Silk Bank Limited
Mr. Sayeed Tariq Saigol ...............Chief Executive Soneri Bank Limited
Mr. Taufique Sayeed Saigol Standard Chartered Bank (Pakistan) Limited
Mr. Waleed Tariq Saigol Summit Bank Limited
Mr. Danial Taufique Saigol The Bank of Punjab
Mr. Zamiruddin Azar Trust Investment Bank Limited
Mr. Shafiq Ahmed Khan U Microfinance Bank Limited
Syed Mohsin Raza Naqvi United Bank Limited
Executive Directors Auditors
Mr. Amir Feroze ..........................Plant Operations KPMG Taseer Hadi & Co.,
Mr. Sohail Sadiq ...................................... Finance Chartered Accountants
Mr. Yahya Hamid .................................. Marketing 2nd Floor, Servis House, 2-Main Gulberg,
Jail Road, Lahore, Pakistan.
Audit Committee Tel: +92 42 35790901-6
Mr. Zamiruddin Azar ...............................Chairman Fax: +92 42 35790907
Mr. Waleed Tariq Saigol............................ Member
Mr. Danial Taufique Saigol ..................... .. Member Legal Adviser
Mr. Shafiq Ahmed Khan......................... .. Member Mr. Shahid Ismail ...................Advocate High Court
Human Resource & Remuneration Committee Registered Office
Mr. Waleed Tariq Saigol..........................Chairman 42-Lawrence Road, Lahore.
Mr. Zamiruddin Azar ................................Member Phone: +92 42 36278904-5
Mr. Danial Taufique Saigol ........................Member Fax: +92 42 36368721
E-mail: mohsin.naqvi@kmlg.com
Chief Financial Officer
Syed Mohsin Raza Naqvi Factory
Iskanderabad Distt. Mianwali.
Company Secretary Phone: +92 459 392237-8
Mr. Muhammad Ashraf
Call Centre (24 / 7)
Chief Internal Auditor 0800-41111
Mr. Zeeshan Malik Bhutta
Share Registrar
Bankers of the Company Vision Consulting Limited
Allied Bank Limited Head Office: 3-C, LDA Flats, First Floor,
Askari Bank Limited Lawrence Road, Lahore
Bank Alfalah Limited Phone: +92 42 36283096-97
Bank Al-Habib Limited Fax: +92 42 36312550
BankIslami Pakistan Limited E-mail: shares@vcl.com.pk
Albaraka Bank Limited
Dubai Islamic Bank Limited Company Website:
Faysal Bank Limited www.kmlg.com
Habib Bank Limited
Note:
Habib Metropolitan Bank Limited
MLCFL’s Financial Statements are also available at the above
Islamic Corporation for the Development
website.
of the Private Sector, Jeddah
Video presentation of CEO detailing financial performance of
MCB Bank Limited
the Company is also available on the above site.
Meezan Bank Limited

6 Maple Leaf Cement

Vision Statement
The Maple Leaf Cement Factory stated vision is to achieve and then
remain as the most progressive and profitable Company in Pakistan in
terms of industry standards and stakeholders interest.
Mission Statement
The Company shall achieve its vision through a continuous process of
having sourced and implemented the best leading edge technology,
industry best practice, human resource and by conducting its business
professionally and efficiently with the responsibility to all its stakeholders
and community.

8 Maple Leaf Cement

Corporate Strategy
We at Maple Leaf Cement Factory manufacture and market different types of consistently
high quality cement, according to the demanding requirements of the construction industry.
Our strategy is to be competitive in the market through quality and efficient operations. As
a responsible member of the community, we are committed to serve the interest of our
stakeholders and contribute towards the prosperity of the country.
Core Values
Maple Leaf Cement is committed to be an ethical and a responsible member of the
business communities in which it operates. The Company always endeavors to ensure
that highest standards of honesty, integrity and ethics are maintained.

10 Maple Leaf Cement

HISTORY OF MAPLE
1956 1992
MLCFL was established by the West Pakistan MLCFL, WCIL and PCCL were privatized and
Industrial Development Corporation (WPIDC) and transferred to the KMLG. All three companies were
incorporated as “Maple Leaf Cement Factory merged into Maple Leaf Cement Factory Limited on
Limited”. The capacity of the plant was 300,000 tons July 01, 1992.
clinker per annum.
1994
1967 The Company was listed on all Stock Exchanges in
A company with the name of “White Cement Industries Pakistan.
Limited” (WCIL) was established with the clinker capacity
of 15,000 tons per annum.
1998
A separate production line for grey portland cement
1974 of 990,000 tons per annum clinker capacity based
on most modern dry process technology was
Under the WPIDC Transfer of Projects and the installed.
Companies Act, 1913, the management of two
companies namely, MLCFL and WCIL were transferred
to the newly established State Cement Corporation of
Pakistan (SCCP). 2000
Maple Leaf Electric Company Limited (MLEC), a power
generation unit, was merged into the Company.
1983
SCCP expanded WCIL’s white cement plant by adding
another unit of the same capacity parallel to the existing
2004
one; it increased total capacity to 30,000 tons clinker The coal conversion project at new dry process plant
per annum. was completed.
1986 2005
SCCP set up another production unit of grey cement Dry process plant capacity was increased from 3,300
under the name of Pak Cement Company Limited tpd to 4,000 tons per day through debottlenecking and
(PCCL) with a capacity of 180,000 tons per annum. up-gradation of equipment and necessary adjustments
in operational parameters.

2006 2014
A project to convert the existing wet process line to a The Company and Pakistan Railway signed an
fuel efficient dry process white cement line commenced agreement to transport coal and cement from Karachi to
its commercial production. Profit after tax was reported Daudkhel and vice - versa.
PKR 1,059 million.
2015
2007 The Company recorded the highest ever turnover of
The Company undertook another expansion project of PKR 20,720 million as well as profit after tax of PKR
6,700 tpd grey clinker capacity which commenced its 3,454 million. The Company reduced its debt burden by
commercial production on November 01, 2007. 46% as compared with last year.
2008 2016
Two existing lines of white cement 50 tpd each clinker The Company yet again recorded the highest ever
capacity converted into oil well cement plant which turnover quantitatively (3.34 million tons) and value wise
started its commercial production. (PKR 23.432 billion), as well as highest profit after tax of
Rs. 4.88 billion. The Company paid off its Rs. 8 billion
debt in third quarter of the financial year much earlier
than the deadline of December 2018. The Company
2011 also established a wholly owned subsidiary, Maple Leaf
The Company successfully started Waste Heat Recovery Power Limited, for the establishment and commissioning
Boiler Plant. of a 40 MW coal fired power plant.
2012 2017
Record cement sales amounting to Rs. 23.9 billion were
The Company started earning profit and recorded PKR made during the year with total dispatches crossing
496 million profit after tax. 3.36 million tons. The Company announced another
expansion project of 7300 tpd grey clinker and later
offered 12.5% Right shares to partially finance the new
project.
2013
The Company earned the highest ever record profit after
tax of PKR 3,225 million.

CODE OF BUSINESS CONDUCT AND

ETHICAL PRINCIPLES
The following principles constitute the code of conduct which all Directors and employees of Maple Leaf Cement
Factory Limited are required to apply in their daily work and observe in the conduct of Company’s business. While the
Company will ensure that all employees are fully aware of these principles, it is the responsibility of each employee to
implement the Company’s policies. Contravention is viewed as misconduct.
The code emphasizes the need for a high standard of honesty and integrity which are vital for the success of any
business.
ETHICAL PRINCIPLES
1. Directors and employees are 4. Directors and employees 6. The Company has strong
expected not to engage in any are not permitted to divulge commitment to the health and
activity which can cause conflict any confidential information safety of its employees and
between their personal interest relating to the Company to any preservation of environment
and the interest of the Company unauthorized person. Nor should and the Company will persevere
such as interest in an organization they, while communicating towards achieving continuous
supplying goods/services to publicly on matters that involve improvement of its Health,
the company or purchasing its Company business, presume to Safety and Environment (HSE)
products. In case a relationship speak for the Company unless performance by reducing potential
with such an organization exists, they are certain that the views hazards preventing pollution and
the same must be disclosed to that they express are those improving awareness. Employees
the Management. of the Company and it is the are required to operate the
Company’s desire that such Company’s facilities and processes
2. Dealings with third parties which views be publicly disseminated. keeping this commitment in view.
include Government officials,
suppliers, buyers, agents and 5. All employees share a 7. Commitment and team work
consultants must always ensure responsibility for the Company’s are key elements to ensure that
that the integrity and reputation good public relations particularly the Company’s work is carried
of the Company is not in any way at the community level. Their out effectively and efficiently.
compromised. readiness to help with religious, Also, all employees will be
charitable, educational and equally respected and actions
3. Directors and employees are not civic activities is accordingly such as sexual harassment and
allowed to accept any favours or encouraged provided it does disparaging remarks based on
kickbacks from any organization not create an obligation that gender, religion, race or ethnicity
dealing with the Company. interferes with their commitment will be avoided.
to the Company’s best interests.

COMPANY PROFILE AND GROUP
STRUCTURE
Maple Leaf Cement is a part of Kohinoor Maple Leaf Group (KMLG). KMLG comprises of two listed public limited
companies i.e. Kohinoor Textile Mills Limited (KTML) and Maple Leaf Cement Factory Limited (MLCF) and two unlisted
public limited companies i.e. Maple Leaf Capital Limited, the subsidiary of Kohinoor Textile Mills Limited and Maple Leaf
Power Limited (MLPL), the wholly owned subsidiary of MLCF(captive power project). MLCF is a subsidiary company of
KTML. The Group companies are ranked amongst the top companies in the cement, textile and investment sectors.
Nature of Business:
Maple Leaf Cement Factory Limited

is part of the Kohinoor Maple
Leaf Group which is a reputable
manufacturer of textile and cement in
Pakistan. Maple Leaf Cement is the
largest single cement production site
in Pakistan. It is one of the pioneers
of cement industry in Pakistan
and in 1956 it was formed by the
collaboration between the West
Pakistan Industrial Development
Corporation and the Government
of Canada. Currently, the Company
operates via two production lines for indicators released. The factors 9% growth in construction sector
the production of grey cement and contributing to this momentum as cited in Pakistan Economic
one line for white cement in which it in growth include the reform Survey for the year 2016-17 while
owns more than 90% market share. initiatives, commitment to a contributing to the overall GDP
All three lines are owned assets of the calibrated fiscal and monetary growth has led to 8% growth
Company. Total installed capacity for management, augmented PSDP in cement sales in domestic
clinker production is 3,360,000 tons spending as compared to the market of local cement industry
annually. last year and occurring benefits on YoY basis. However, rise in
from CPEC. However, achieved coal and HFO prices globally has
Macro Factors Affecting the growth stayed behind the set affected the sector as a whole.
Business: target of 5.7% due to political Major players have continuously
uncertainty in the country. registered increased turnover
a) Pakistan Economy - Despite the during the year and meeting
prevailing political uncertainty b) Cement Industry – The cement expectations while getting good
during the year 2016-17, the sector has been on the rise as margins. Overall economic
revival of growth that started being a major component of upgrade of the economy has
in 2014-15 has continued to development projects, a key also played a major role in this
accelerate as per official fiscal focus of the current Government. rise in demand.

c) Inflation – Core inflation Index exhibited an upward h) Main Market – The main market of the Company is
trend during the year starting from initial level of 4.5 in the domestic market supported by exports which are
Jul-2016 continued to highest level of 5.5 in last quarter mainly in Africa, Gulf and other Asian countries.
of fiscal year 2017. Inflation during the reporting year
raised to average rate of 5.2 as compared to average i) Environment – The operations of the Company are
rate of 4.2 in the preceding year 2015-16. subject to different environmental, corporate and
labor laws and it is fully complying with these and
d) Public Sector Development Budget (PSDB) – One other relevant laws.
of the major focus of the present Government is on
public sector development including infrastructure MICRO FACTORS AFFECTING THE BUSINESS:
which has led to an increase in PSDB over the years.
Federal Government has made an historic record a) Business Model for the Company – The business
allocation of Rs. 1 trillion for development expenditure model of the Company is to increase retention, reduce
in Finance Bill 2017-18. Majority of the PSDP projects the cost of production and increase in customer
are concentrated in Punjab, followed by Sindh and satisfaction. The approach to be followed is to reduce
Khyber Pakhtunkhwa. Being majorly concentrated variable cost through various cost-efficient measures.
in Punjab, this gives the Company an advantage as
its local market is also currently majorly clustered in b) Product Portfolio – To cater to varying needs of the
Punjab. market, Maple Leaf produces the following cement:
e) Fiscal Development – Despite Government’s effective i) Ordinary Portland Cement

fiscal measures, including broadening of tax revenue ii) Sulphate Resistant Cement
and tax net, fiscal deficit closed at 5.8% in year 2016- iii) Low Alkali Cement
17. The Government further plans to contain fiscal iv) White Cement
deficit to 4.1% for the year 2017-2018.
The varying products allow Maple Leaf to cater different
f) Construction Activity –with the construction on types of customers from household to contractors to
CPEC projects kicking-off and improved economic Government infrastructure needs as the composition
indicators, the construction activity also got a boost of cement required by each is different.
with major housing projects initiated in all areas of
Pakistan. Construction sector during the year 2016- c) Competitors – Maple Leaf is amongst the top
17 has registered a handsome growth of 9% on YoY companies in the cement industry. It has performed
basis. handsomely and has yielded results which have
placed it in the top ranks. The Company is always
g) Money & Credit – Discount rate for the year 2016-17 striving to improve with focus on improved sales and
remained constant at a 44-year lowest level of 5.75%. cost reduction measures.
Balance of payments trailed disequilibrium on account
of widening trade deficit, controlled exchanged rate d) Suppliers – Coal is mainly imported from South Africa,
and steady growth in workers’ remittances. Foreign which is a famous source all over the world for its high
exchange reserves closed at US$ 21,368 million as gross caloric value and low moisture content. Raw
on 30th June 2017. materials like limestone, clay and gypsum are mined
by contractors on lands leased by Maple Leaf Cement
Factory Limited.

STATEMENT OF OVERALL STRATEGIC
OBJECTIVES 2017-2018
Following are the main principles that constitute the strategic objectives of Maple Leaf Cement
Factory Limited: -
1. Improved capacity utilization of the Company’s production facilities.

2. Modernization of production facilities in order to ensure the most effective production.
3. Effective marketing and innovative concepts.
4. Implementation of effective human resource solutions through personnel development, creating
proper environment for professional growth of highly skilled professionals, ensuring safe labour
environment, competitive staff remuneration and social benefits in accordance with scope and
quality of their work.
5. Effective use of available resources.
6. Explore alternative energy resources.
7. Further improvements in Code of Corporate Governance through restructuring of assets and
optimization of management processes.
8. Compliance with local and international environmental and quality management standards,
implementation of technologies allowing to comply with the limitations imposed on pollutant
emissions.
9. Implementation of projects in social and economic development of communities.


NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the 57th Annual General Meeting of the members of Maple Leaf Cement Factory Limited (the
“Company”) will be held on Thursday, October 26, 2017 at 11:00 AM at 42-Lawrence Road, Lahore, the Registered
Office of the Company, to transact the following business:
ORDINARY BUSINESS: “Resolved by way of special resolution that consent

and approval of Maple Leaf Cement Factory Limited
(the “Company”) be and is hereby accorded under
Section 199 of the Companies Act, 2017 (the “Act”)
for investment in the form of loans/advances from time
to time to Kohinoor Textile Mills Limited, the holding
company, upto an aggregate sum of Rs. 1,000 million
(Rupees one thousand million only) for a period of
one year commencing from November 01, 2017 to
October 31, 2018 (both days inclusive) at the mark-
up rate of one percent above the average borrowing
cost of the Company. Vide special resolution passed
in general meeting held on October 31, 2016 by the
shareholders, the Company was authorized to extend
1) To receive, consider and adopt the audited accounts a facility of similar nature to the extent of Rs. 1,000
of the Company including consolidated financial million which is valid till October 31, 2017.
statements for the year ended June 30, 2017 together
with the Directors’ and Auditors’ Reports thereon. Resolved further that the Chief Executive and the
Company Secretary of the Company be and are
2) To approve final cash dividend for the year ended hereby authorized singly to take all steps necessary,
June 30, 2017 at Rs. 1.75 per share (17.50%), as ancillary and incidental, corporate and legal formalities
recommended by the Board of Directors. This is in for the completion of transactions in relation to the
addition to the interim cash dividend already paid loans / advances to the holding company but not
to the shareholders at Rs. 2/- per share (20%), thus limited to filing of all the requisite statutory forms
making a total cash dividend at Rs. 3.75 per share and all other documents with the Securities and
(37.50%) for the year. Exchange Commission of Pakistan (SECP), executing
documents all such notices, reports, letters and any
3) To appoint Auditors for the year ending on June other document or instrument to give effect to the
30, 2018 and fix their remuneration. The Board has above resolution.”
recommended, as suggested by the Audit Committee,
the appointment of M/s. KPMG Taseer Hadi & Co.,
Chartered Accountants, the retiring auditors and
being eligible offer themselves for re-appointment. BY ORDER OF THE BOARD
SPECIAL BUSINESS:
4) To consider and, if deemed fit, pass the following

resolution as a special resolution under Section
199 of the Companies Act, 2017, with or without
modification, as recommended by the Directors: (Muhammad Ashraf)
Lahore: October 05, 2017 Company Secretary

participant/IAS and physical shareholders will
Notes: provide the same to the Company’s Share
Registrar, M/s. Vision Consulting Limited 3-C,
1. The Share Transfer Books of the Company LDA Flats, Lawrence Road, Lahore:
will remain closed from October 21, 2017 to
October 31, 2017 (both days inclusive). Physical Transferee Detail
transfers / CDS Transaction IDs received at Title of Bank Account
the Company’s Share Registrar, M/s. Vision
Consulting Ltd, 3-C, LDA Flats, First Floor, Bank Account Number
Lawrence Road, Lahore, at the close of business IBAN
on October 20, 2017 will be considered in time Bank’s Name
for the purpose of above entitlement and to
Branch Name and Address
determine voting rights of the shareholders for
attending the meeting. Branch Code
CNIC Number
2. A member eligible to attend, speak and vote Cell Number
at this meeting may appoint another member
as his/her proxy and CDC shareholders shall Email
attach an attested copy of his/her Computerized
National Identity Card (CNIC) / Passport. 5. If the Company receives consent from members
Proxies, in order to be effective, must be holding aggregate 10% or more shareholding,
received at the Company’s Registered Office not residing in geographical location to participate
later than 48 hours before the time for holding in the meeting through video conference at
the meeting and must be duly stamped, signed least 07 days prior to the date of meeting, the
and witnessed. Company will arrange video conference facility.
3. In case of corporate entity, the Board of In this regard, please fill the following and submit
Directors’ resolution / power of attorney with at Registered Office of the Company situated at
specimen signature of the nominee should be 42-Lawrence Road, Lahore, at least 07 days
attached with the proxy form. prior to the date of Annual General Meeting.
4. Pursuant to requirement of Section 242 of the “I/We,___________________________________

Companies Act, 2017, any dividend payable in of __________________________________,
cash declared by a listed company shall only being a member of Maple Leaf Cement Factory
be paid through electronic mode directly into Limited, holder of ___________________
the bank account designated by the entitled Ordinary Share(s) as per Registered Folio / CDC
shareholder. A/c # _________ hereby opt for video conference
facility at ___________.
Keeping in view the mandatory requirement,
all valued shareholders are advised to provide
electronic dividend mandate information. CDC ___________________________
Account Holder(s) will provide the following Signature of Member / Attorney”
information directly to his/her concerned broker/

6. The Members, who desire for receiving the annual c. Valid and legible copies of National Tax Number
audited financial statements and AGM Notice through (NTN) or NTN Certificate(s) of corporate entities and
e-mail, are requested to send their written consent on must quote the company name and their respective
a Standard Request Form available on website www. folio numbers thereon while sending the copies;
kmlg.com in order to avail this facility.
d. Pursuant to requirement of the Finance Act, 2017
effective July 01, 2017, the ‘Filer’ & ‘Non-Filer’
7. The audited financial statements for the year ended shareholders will pay tax on dividend income @15%
June 30, 2017 are available on website of the and 20% respectively. Therefore, please ensure that
Company www.kmlg.com. their name(s) have been entered into Active Taxpayers
List (ATL) provided on website www.fbr.gov.pk of the
8. Shareholders are requested to notify / submit the Federal Board of Revenue (FBR), despite the fact that
following information & documents, in case of book the shareholder is a filer, before the payment date of
entry securities in CDS to their respective CDS final cash dividend i.e. November 23, 2017, otherwise
participants and in case of physical shares to our tax on cash dividend will be deducted @20% instead
Share Registrar, if not earlier provided / notified: of 15%;
e. As per clarification of FBR, each joint holder is to be

a. Change in their addresses;
treated individually as either a ‘Filer’ or ‘Non-Filer’
and tax will be deducted on the basis of shareholding
b. Valid and legible copies of CNIC for printing of CNIC notified by each joint holder. Accordingly, such
number(s) on their Dividend Warrant(s) as required shareholder(s) may notify in writing within 10 days
vide SRO 831 (I)/2012 dated July 05, 2012. In case from entitlement date i.e. October 20, 2017 as per
of non-submission of valid & legible copy of CNIC, under format to our Share Registrar. If no notification
the Company will be constrained to withhold the is received to our Share Registrar, then it will be
Dividend Warrant(s) till such time the CNIC copy is assumed that the shares are held in equal proportion
provided by them; by the principal shareholder and the joint holder(s);
Folio / CDC Total Principal Shareholder Joint Shareholder(s) Signature(s)

Account No. Shares
Name & Shareholding Name & Shareholding

CNIC No. Proportion CNIC No. Proportion
(No. of Shares) (No. of Shares)
f. Valid income tax exemption certificate issued by the g. For any query / information, the shareholders may
concerned Commissioner of Inland Revenue is to be contact with the Company Secretary at the above
furnished to the Company / Share Registrar in order Registered Office and / or Mr. Abdul Ghaffar Ghaffari
to avail tax exemption u/s 150 of the Income Tax of Share Registrar, Vision Consulting Ltd. 3-C,
Ordinance, 2001 (tax on dividend) where the statutory LDA Flats, Lawrence Road, Lahore, Ph. Nos. (042)
exemption under clause 47B of Part-IV of Second 36283096-97.
Schedule is available and want to avail exemption u/s
150 of the Ordinance, otherwise tax will be deducted
under the provisions of laws;

STATEMENT UNDER SECTION 134(3)
OF THE ACT:
This statement sets out the material facts pertaining to the special business to be transacted at the
Annual General Meeting of the Company to be held on October 26, 2017.
Investment in Kohinoor Textile Mills Limited
Kohinoor Textile Mills Limited (“KTML”), the holding company, having its Registered Office at
42-Lawrence Road, Lahore, is manufacturer of yarn and cloth, processing and stitching the cloth and
trade of textile products and its production comprise 156,528 ring spindles capable of spinning a wide
range of counts using cotton and man-made fibers. The weaving facilities at Raiwind comprise 288
looms capable of weaving wide range of greige fabrics. The processing facilities at the Rawalpindi unit
are capable of dyeing and printing fabrics for the home textile market. The stitching facilities produce a
diversified range of home textiles for the export market. Both the dyeing and stitching facilities are being
augmented to take advantage of greater market access.
The Board of Directors of the Company in their meeting held on September 13, 2017 has approved
Rs.1,000 million as loans / advances, being a reciprocal facility, to KTML on the basis of escalating profit
trend of KTML subject to approval of the members. The Company shall extend the facility of loans /
advances from time to time for working capital requirements to KTML in accordance with an agreement
in writing including all relevant terms and conditions as prescribed in the Regulations.
Directors of the Company have also provided their duly signed undertaking / due diligence report with
recommendations that they have carried out necessary due diligence for the proposed investment in
KTML and it has been kept at Registered Office of the Company for inspection of the members along
with audited accounts of KTML as required under the Regulations.

The information under clauses 3(1)(b) & 4(1) of the Companies (Investment in Associated
Companies or Associated Undertakings) Regulations, 2012.
Ref. Requirement Information

No.
(i) Name of the associated company or Kohinoor Textile Mills Limited

associated undertaking along with (the “KTML”)
criteria based on which the associated
relationship is established; KTML is a holding company of Maple Leaf
Cement Factory Limited (the “Company”).
(ii) Amount of loans or advances; Rs.1,000 million (Rupees one thousand million
only).
(iii) Purpose of loans or advances and Purpose: To earn income on the loans and/or
benefits likely to accrue to the investing advances to be provided to KTML from time to
company and its members from such time for working capital requirements of KTML.
loans or advances;
Benefits: The Company will receive mark up
at the rate of one percent above of its average
borrowing cost. This shall benefit the Company’s
cash flow by earning profit on idle funds.
Period: For a period of one year from November

01, 2017 to October 31, 2018.
(iv) In case any loan has already been A similar nature of loan/advance facility of
granted to the said associated company Rs.1,000 million from time to time for working
or associated undertaking, the complete capital requirements has been granted by
details thereof; the valued shareholders of the Company vide
special resolution passed in the Annual General
Meeting held on October 31, 2016 which is valid
till October 31, 2017.
(v) Financial position, including main items Based on the audited financial statements for
of balance sheet and profit and loss the financial year ended 30 June 2017, the
account of the associated company or financial position of KTML is as under:
associated undertaking on the basis of its
latest financial statements;

No.
Particulars Amount
Rupees (000)
Paid up capital 2,823,551
Reserves 7,276,792
Surplus on revaluation
of land and investment
properties 3,822,453
Current liabilities 5,046,039
Current assets 5,297,408
Breakup value per
share (Rs.) without
revaluation 35.77
Sales 17,404,708
Gross Profit 2,581,315
Operating Profit 3,170,104
Net Profit 2,351,779
Earnings per share (Rs.) 8.33
(vi) Average borrowing cost of the investing
company or in case of absence of Average borrowing cost of the Company is
borrowing the Karachi Inter Bank Offered 5.86% for the year ended June 30, 2017.
Rate for the relevant period;
Rate of interest, mark up, profit, fees or Mark-up will be charged from KTML at one
(vii) percent above the average borrowing cost of
commission etc. to be charged;
the Company.
Sources of funds from where loans or Loan and / or advance will be given out of own
(viii) advances will be given; funds of the Company.
(ix) Where loans or advances are being

granted using borrowed funds,- N/A
(I) justification for granting loan or
advance out of borrowed funds;
(II) detail of guarantees / assets pledged
for obtaining such funds, if any; and
(III) repayment schedules of borrowing of
the investing company;
(x) Particulars of collateral security to be No collateral is considered necessary since
obtained against loan to the borrowing KTML is a holding company of the Company.
company or undertaking, if any;


No.
(xi) If the loans or advances carry conversion

feature i.e. it is convertible into N/A
securities, this fact along with complete
detail including conversion formula,
circumstances in which the conversion
may take place and the time when the
conversion may be exercisable;
Repayment schedule and terms of loans The loan / advance would be for a period of
(xii) or advances to be given to the investee one year from November 01, 2017 to October
company; 31, 2018 (both days inclusive). KTML will pay
interest / mark-up on quarterly basis whereas
repayment of principal amount shall be on or
before October 31, 2018.
Salient features of agreements entered Nature : Loan / advance

(xiii) or to be entered with its associated
company or associated undertaking with Purpose : To earn mark- up /
regards to proposed investment; profit on loan / advance
being provided to KTML
which will augment the
Company’s cash flow
Period : One Year
Rate of Mark-up : Above one percent the
average borrowing cost
of the Company
Repayment : Principal plus mark up/
profit upto October 31,
2018
Penalty charges : @3-months KIBOR plus
one percent in addition
to the outstanding
amount(s).
(xiv) Direct or indirect interest of directors, Investing Company i.e. the Company is a
sponsors, majority shareholders and subsidiary company of KTML and seven
Directors are common in both the companies
their relatives, if any, in the associated
may be deemed to be interested to the extent of
company or associated undertakings or their shareholding.
the transaction under consideration; and
Any other important details necessary for None of the Directors or their relatives or
associates are interested in any of the above
resolution in any way except as members of the
Company.

No.
(xv) the members to understand the transaction. N/A
Seven Directors including sponsor Directors of the Company are also the members of investee company i.e. KTML
and are interested to the extent of their shareholding as under:
Name %age of shareholding %age of shareholding

in KTML in the Company
Mr. Tariq Sayeed Saigol & his spouse.................................... 14.3755 ....................................0.0193

Mr. Taufique Sayeed Saigol ................................................... 14.5090 ....................................0.0015
Mr. Sayeed Tariq Saigol ......................................................... 0.1286 .....................................0.0010
Mr. Waleed Tariq Saigol.......................................................... 0.0112 .....................................0.0010
Mr. Danial Taufique Saigol ...................................................... 0.0010 .....................................0.0005
Mr. Zamiruddin Azar .............................................................. 0.0024 .....................................0.0020
Mr. Shafiq Ahmed Khan ......................................................... 0.0010 .....................................0.0014
Statement under Rule 4(2) of the Companies (Investment in Associated Companies or Associated Undertakings)
Regulations, 2012
Name of Investee Company Kohinoor Textile Mills Limited
Total Investment Approved: Investment of Rupees one billion by way of loans and
advances was approved by members in AGM held on
31 October 2016 for the period of one (1) year.
Amount of Investment Made to date: NIL.
Reasons for not having made complete investment No loan has been extended after the approval because
so far where resolution required it to be implemented funds request has not yet been made by the investee
in specified time: company.
Material change in financial statements of associated As per financial statements for the year ended 30 June
company or associated undertaking since date of the 2017, the Basic Earnings Per Share is Rs. 8.33 and
resolution passed for approval of investment in such Break-up Value Per Share (without surplus) is Rs. 35.77.
company:

CHAIRMAN’S REVIEW
I am pleased to present the earmarked for the coming year and support the same in attaining the
annual report and audited financial Board’s effectiveness is measured in objectives dilated therein.
statements of the Company for the the context of achievement of such
year ended 30th June, 2017 to our objectives. Accordingly, Board has STRATEGIC DECISION MAKING:
valued shareholders. Significant completed its annual self-evaluation Overall corporate strategy and
aspects of performance of your for the year 2017 and I am pleased objectives have been set in line with
Company have been shared with to report that the overall performance the strategic vision of the Board from
you during the course of the financial benchmarked on the basis of criteria which the annual business plan is
year 2016-17. The Management set for the year 2017, remained derived, as well as, projected plans
of the Company is encouraged by satisfactory. Such assessment for the next five years have been
the future prospects and expects was based on standards set by the set by the Management, covering
to continue to demonstrate robust Board in line with best corporate all functional and operational areas
performance through its efforts and governance practices. by utilization of available resources,
strategic directions provided by the modernization and expansion
Board. COMPOSITION OF THE BOARD: and production facilities to ensure
The composition of the Board depicts continued growth in the bottom line
Pursuant to requirement of the reasonable balance of executive and which should hopefully result in high
Code of Corporate Governance non-executive Directors including growth.
as contained in the Rule Book independent Director and as a
of Pakistan Stock Exchange Group, possess the requisite skills, DILIGENCE: The Board reviews
Limited, mechanism has been put core competencies and industry the quality and appropriateness of
in place for annual evaluation of knowledge to lead the Company. financial statements of the Company,
the performance of the Board of All Board members have exercised reporting and transparency of
Directors (the “Board”) of Maple their individual business judgment disclosures, Company’s accounting
Leaf Cement Factory Limited (the and are involved in important Board policies, corporate objective plans,
“Company”). The main objective of decisions. budgets and other reports. The
this exercise is to internally evaluate meetings of the Board are held at
the performance of the Board and its VISION & MISSION STATEMENTS: required frequencies and agenda
Committees in order to facilitate the Board members are aware of the alongwith working papers are
Management and to play an effective high level of ethical and professional circulated in sufficient time prior to
role as a coordinated team for the standards laid down in our Vision Board and Committee meetings.
success of the Company. Strategic & Mission Statements which are
goals for the Management have been adopted by the Company and fully

ADEQUATE GOVERNANCE: The Board has framed the Code of Conduct which defines requisite behavior and has
been disseminated throughout the Company, alongwith supporting policies and procedures. Adequate controls and
robust systems are in place to ensure effective control environment so compliance of best policies of Corporate
Governance are achieved. The Board sets high standards of honesty and integrity which we consider are vital for
success of the business.
PRESENTATIONS: During the course of discussion and approvals of financial statements, comprehensive
presentations are placed before the Board based on incisive, critical and strategic analysis of all functional areas
relating to core business of the Company. Benchmarking compared with the industry’s peer group are carried out.
This practice provides ample opportunity for objective analysis of the Company’s goals and evaluation of its own
financial performance with the peer group. The Board provides appropriate directions and oversight emanated on the
basis of thorough and detailed discussions.
(Tariq Sayeed Saigol)

Lahore: September 13, 2017 Chairman


DIRECTORS’ REPORT
TO THE SHAREHOLDERS
The Directors are pleased to present the 57th annual report along with audited financial statements
and Auditors’ Report thereon for the year ended June 30, 2017.
The financial highlights of the Company (standalone) are as follows:
Year Ended
July to June Variance
2017 2016 Amount %
(Rupees in thousand)
Net Sales Revenue 23,992,079 23,432,696 559,383 2.39%
Gross Profit 9,482,302 10,022,132 (539,830) (5.39%)
Operating Profit 7,188,705 7,553,042 (364,337) (4.82%)
Finance Cost 318,349 435,504 (117,155) (26.90%)
Profit Before Taxation 6,870,356 7,117,538 (247,182) (3.47%)
Taxation 2,093,275 2,232,953 (139,678) (6.26%)
Profit After Taxation 4,777,081 4,884,585 (107,504) (2.20%)
Earnings Per Share (Rs.) 9.05 9.26 (0.21) (2.20%)
The Company registered record net logged a negative growth of 28% on South Africa. India also imposed
sales of Rs. 23,992 million against volumetric basis due to lackluster anti-dumping duty around 19%,
Rs. 23,433 million in the previous demand from overseas leading to which makes it difficult to compete
year. During the financial year 2016- concentration on domestic side. with local manufacturers there,
17, local dispatches increased to a Volumes to Afghanistan, one of having lesser input cost.
new level of 2,931,708 metric tons as Pakistan’s biggest export markets,
compared to 2,740,718 metric tons declined due to border restrictions However, the growth in high margin
in corresponding period, growing by in the wake of mounting tension local dispatches has mitigated to
7% on the back of economic upcycle and increased competition from some extent, the adverse effects of
due to improved domestic activities. Iranian cement. The other factors falling exports. White cement local
This development can be credited contributing to decline in exports sale during the current reported
to acceleration in private sector were increase in fuel prices and other year has shown quantitative growth
construction activities and partial input cost. The most challenging of 11% in comparison to the
materialization of the budgeted factor has been the barriers erected corresponding period.
Public-Sector Development Program by countries we export to, such
(PSDP). Export volume however, has as anti-dumping duty imposed by

Capacity utilization for clinker and local dispatches has improved as evident from the data shown below: -
July to June Variance

Particulars 2017 2016 Qty % age
------------------M. Tons-----------------
Production
Clinker Production 3,299,047 3,092,793 206,254 6.67%
Cement Production 3,341,970 3,340,410 1,560 0.05%
Sales
Domestic 2,931,708 2,740,718 190,990 6.97%
Exports 432,694 599,605 (166,911) -27.84%
3,364,402 3,340,324 24,078 0.72%
Total sales volume of 3,364,402 in international coal market. This due to surges in furnace oil prices
tons achieved is an increase of hike is attributable to economic on account of hike in international
0.72% over 3,340,324 tons sold principle of demand and supply i.e. oil prices. The Company is also
during the corresponding period of production days cut in coal mining continuously benefiting from lower
last year, mainly due to reduction in China resulting in increased level inland transportation costs through
in export sales. The domestic sales of coal imported in China, prolonged haulage via the railway network
volume increased to 2,931,708 tons rains in the coal producers’ locations resulting in competitive savings.
registering an increase of 7% and and restricted supply from mines
exports sales volume decreased to due to logistical difficulties resulting Keeping in view above factors, gross
432,694 tons, a decrease of 27.84% in increase in coal prices. The profit decreased by Rs. 540 million to
as compared to corresponding Company, however, derived benefit Rs. 9,482 million in current reported
period. of best negotiated prices throughout year, compared to Rs. 10,022 million
the year to enable timely building up of in the corresponding year. Gross
stock. Power cost, which is another profit historical trend for the last 5
Coal prices in global markets had an
major input in the cost of production years is presented below: -
upward trend due to sharp recovery of cement, increased during the year

The above-mentioned dip in gross changed from the last year mainly year from 31.4% to 30.5%, where
profitability, mainly due to increase in due to debt utilization in last quarter reduced tax rate benefit on export
coal and fuel prices during the year of 2017 to finance capital expenditure sales is washed away through
2017 has led to an overall decrease of Company’s new coal power plant continued imposition of Super Tax
in operating profit. Distribution cost where work is in full swing. Due to by the Government in Finance Bill
reduced owing to slump in exports. early repayments, finance costs of 2017-18. The Company recorded
Operating profits for the reported the Company reduced considerably. post-tax profit of Rs. 4,777 million
year stands at Rs. 7,189 million, Debt equity ratio and finance cost during the year against Rs. 4,885
compared to Rs. 7,553 million in the trends are shown in graphs. million in the corresponding period
corresponding year. last year, showing a decline of 2.2%.
Prudently responding to the risk
Finance costs continue to reduce of Pak Rupee devaluation against Board of Directors has established
resulting in a decrease of 27% as the dollar, management has fully adequate internal financial controls.
average outstanding debt financing discharged outstanding liability Periodical operational and financial
has decreased in the current against foreign currency loan budgets are in place, and actual
reporting year. As apparent from the obtained from Islamic Corporation for performance is constantly monitored
graph below, debt equity mix has the Development of Private Sector against budgeted targets.
(“ICD”). Total outstanding exposure
against principal DIVIDEND
repayments as of
close of current Keeping in view the results, the
financial year Board of Directors has announced
30th June 2017 final cash dividend @17.5% i.e.
was US$ 4.577 Rs.1.75 per share. This is in addition
million. to the already paid interim cash
dividend @20% i.e. Rs.2.0 per share,
Effective tax rate thus making a total cash dividend @
has decreased 37.5% i.e. Rs. 3.75 per share for the
in the current year ended June 30, 2017.

Profit after tax distribution is as under:
Rupees in Thousand
Profit after tax 4,777,081
Final dividend declared for the year ended 30 June 2016 (1,319,335)
Interim dividend declared during the year ended 30 June 2017 (1,055,468)
Profit for year transferred to Retained Earnings 2,402,278
ANALYSIS OF PRIOR PERIOD’S FORWARD LOOKING Name of Directors Designation

DISCLOSURES
Mr. Tariq Sayeed Saigol Chairman / Non Executive
Despite political noise and prevailing uncertainty during Director
the second half of financial year 2016-17, the Company Mr. Sayeed Tariq Saigol CEO / Executive Director
has achieved highest level of local dispatches registering Mr. Taufique Sayeed Saigol Non Executive Director
Mr. Waleed Tariq Saigol Non Executive Director
an increase of 7% on YoY basis. Due to implementation
Mr. Danial Taufique Saigol Non Executive Director
of effective cost control measures and efficient planning, Syed Mohsin Raza Naqvi GDF / CFO /
the Company has mitigated the adverse impacts Executive Director
arising on account of non-controllable factors such Mr. Zamiruddin Azar Non Executive Director
as actual growth in cement industry in comparison to Mr. Shafiq Ahmed Khan Independent
projected, unexpected high rise in international coal rates Non Executive Director
accompanied by higher components of taxation such as
Mr. Karim Hatim retired and ceased to be a director of the
Federal Excise Duty, Super tax etc. Effectual utilization of Company.
resources and power generation equipment based on
WHRP and backup HFO engines has also supported to
NON FINANCIAL PERFORMANCE
confront the adverse effect on operating profitability due
to the rise in production cost. Quality, customer’s satisfaction, employee’s development
and professional standards are Company’s key areas
By virtue of election of Directors held on December 30, where management has taken necessary measures
2016 for the next term, the following eight Directors were to improve them. The Company is currently producing
elected as fixed by the Board: and supplying the high quality products which ensure
maximum satisfaction to the customers. During the

year, the Company has conducted developments on CPEC and this areas and the Company has adopted
various training courses for the opportunity is expected to prove to be various strategies to reduce cost
development of existing human of great benefit for the whole nation. including use of alternative fuels and
capital. The Company is maintaining Speedy progress is being registered optimized operations of the plant
a highly satisfactory relationship with on CPEC projects due to collective despite the recent rise in oil prices
measures of the political and military and increasing prices of coal.
all stakeholders. The Company has
leadership and would be a trigger
formed various committees which
to absorb future supply from new Maple Leaf Power Limited
are responsible for the effective capacities. An historic allocation for
monitoring of key areas. PSDP in budget for the financial year For Maple Leaf Power Limited (a
2017-18 is a clear indication that the wholly owned subsidiary), all the
focus of the Government will remain civil works including plant erection
Corporate Social Responsibility on the completion of infrastructure relating to 40 MW imported coal-
schemes including power projects, fired power plant is completed. The
As part of corporate social motorways, Orange train and low- project is now in test phase and
responsibility, the Company income housing schemes. as per plan it is expected to be
acknowledges its responsibility operational in October 2017. This
towards the society and performs its Afghanistan market is contracting due project will add another reliable and
duty by providing financial assistance to availability of inexpensive Iranian inexpensive source of power as
to projects for society development cement which is a worrying factor. compared to the national grid and
by various charitable institutions on Moreover, exports to Afghanistan reduce dependency on the same.
consistent basis. The Company has market are also affected on account It will also provide a cushion against
been recognized by Pakistan Centre of border restrictions by Government current bullish trend in furnace oil
for Philanthropy as a leader in social due to cross border terrorism. prices and is expected to be the
and charitable contributions and Owing to this development and not cheapest source of electricity after
strikes to be a constructive member to put all eggs in one basket, the waste heat recovery plant.
of the communities in which it has Company is determined to explore
a presence. Kohinoor Maple Leaf new export markets to improve Capacity Expansion Project
Group has received “6th Corporate capacity utilization. However, the
Social Responsibility Award 2017” profitability of the cement sector The Board of Directors has already
on account of its performance in should continue to progress as local approved for setting up of an
various projects. dispatches increase. additional dry process clinker
production line of 7,300 tpd grey
FUTURE PROSPECTS However, gross margins are clinker production for enhancing
expected to remain under pressure grey cement capacity upto 18,000
Going forward, we expect increased owing to rising coal and fuel prices tons per day at the existing plant site
domestic demand for cement on including anticipated devaluation of (brown field project). Total project
account of rise in PSDP allocations Pak rupee in terms of US dollar and cost is estimated at Rs. 23 billion.
in the wake of upcoming election moderate increase in discount rate. In this regard, the Company after
year, together with construction Cost reduction efforts continue to signing EPC contract, has opened
activities in the private sector. The be the main focus in all operational Letter of Credit as on March 17,
cement industry is also keenly eyeing

2017 in favor of plant supplier M/s FLSmidth A/S, Denmark for supply and setting up of said production line. Civil and
piling work has started at site. Shipments from plant supplier have already been started and plant is targeted to begin
commercial operations in March 2019. Funds are required to partially finance the expansion project through equity
which includes internal cash generation and issuance of right shares and rest of the project cost will be met through
borrowings. Therefore, Board has approved to issue 12.50% right shares of Rs. 10/- each at a price of Rs. 65/- per
share (inclusive of premium of Rs. 55/- per share).
ACKNOWLEDGEMENTS
The Board takes this opportunity to express its deep sense of gratitude and thanks to the shareholders, employees,
customers, bankers and other stakeholders for the confidence and faith they have always reposed in us.
For and on behalf of the Board
Lahore: (Syed Mohsin Raza Naqvi) (Sayeed Tariq Saigol)

September 13, 2017 Director Chief Executive

CORPORATE BRIEFING
SEGMENTAL REVIEW OF Operating Procedures (SOPs). Total properly evaluated against the
BUSINESS PERFORMANCE Quality Management (TQM) function respective strategic objectives to
has been implemented that seeks confirm the achievement.
The financial statements of the to lower non-conformance costs
Company have been prepared on through an active focus on health, There is no material change in
the basis of single reporting segment. safety, environment, housekeeping Company’s objectives and strategies
Revenue from sale of cement and operations. from the previous year.
represents 100% of gross sales
of the Company. Sale comprises Apart from the above, we have ENTITY’S SIGNIFICANT
91.4% of grey cement and 8.6% implemented scientific performance RESOURCES
of white cement. During the year, evaluation techniques that are
white cement segment has shown linked to KPIs (Key Performance Our resources mainly consist of
tremendous growth where margins Indicators). We have also developed human resource, financial resource,
are relatively higher as compared Reliability Center Maintenance and technological resource. The
to grey cement profit margins. The System for achieving run factor Company assorted and hired team
Company operates in two principal of 330 days considering it as an of professionals with enormous
geographical areas, Asia and Africa. opportunity to improve our bottom expertise in latest technologies
Moreover, all assets of the Company line. We believe that training is the who proficiently design the ways
as at June 30, 2017 are located in source of all process driven thinking. for improving and upgrading our
Pakistan. Local and international trainings for production process, networking and
top management were arranged control systems. We have developed
MANAGEMENT’S OBJECTIVES during the year 2016-17 including a dedicated team to analyze the
AND STRATEGIES 6 Sigma trainings. We have framed human resource right from selection
well defined different teams to till retirement. We believe in adding
Prime objective of management is address the key areas like Team value to our human resource by
to change the culture from a State Energy, Team Reliability Centered extensive trainings and development
Cement traditional hierarchy and Maintenance, Team Improvement program.
status quo enterprise to a customer and Team Culture Development.
driven, empowered and cross Priority is being assigned to control LIQUIDITY AND CAPITAL
functionality focused company. production cost. STRUCTURE
Our objectives are determined to
increase our retention value along We have reduced variable cost due Our liquidity condition has
with reduction in cost. We strive to to efficient energy management significantly improved over the
achieve our objectives with collective and other cost reduction measures. period with reduced payment cycle.
wisdom and empathy. We are The todate results, financial and The management of the Company
committed to enhance stakeholder’s nonfinancial, are the reflection of has breadth of experience and
value. To achieve our corporate achievement of management’s knowledge of best practices in
objectives, we have given priorities objectives which are strategically liquidity management pertaining
to refine and implement our human placed to increase the wealth of to policies, processes, regulatory
resource policies and Standard stakeholders. The said results are constraints, tax considerations and


liquidity management system. Capital

structure mainly consists of ordinary
share capital and long term / short
term debts. Management believes
that there is no inadequacy in capital
structure in status quo.
The Company is highly efficient to

manage liquidity risk and in order to
cope with it, we invest only in highly
liquid resources to mitigate the
risk. Efficient utilization of available
resources, better control over
production overheads and better
retention resulted in increased cash
generation from operations and
recovery of losses. The Company
continues with its plan to utilize that
cash generated from operations for
repayment of its debt on a timely basis,
which will result in the reduction of
financial cost and resultantly, net profit
of the Company will be increased.
SIGNIFICANT CHANGES IN
FINANCIAL POSITION
During the year, the Company availed

new long-term loans amounting to
Rs. 2,176 million to partially finance
the coal fired power project. At the
close of current financial year 2016-
17, the company was operating
at the debt equity mix of 16:84 as
compared to 9:91 computed for
the preceding financial year. The
Company has adopted the strategy
to utilize maximum cash profits with
minimal reliance on debt, allowing
higher returns to shareholders as
evident from continued reduction
in total finance cost resulting in

improved interest cover ratio. Net ton including more efficient sales volume based on the
cash generated from operations yield; philosophy of being a brand
decreased by Rs. 2,348 million c. lower power cost including where our product is demanded
mainly on account of payments decline in per ton KWH by consumers to create a pull
against mobilization advances to power consumption; and effect.
project contractors related to new d. lower weighted average
production line and partially utilized cost of capital. 4. Integrity of managers – Being
in other working capital changes. one of the core values of the
3. Reduction in debt burden based Company, trainings have been
PROSPECTS OF THE ENTITY on healthy cash flows to be planned to further drill this value
INCLUDING TARGETS FOR generated from increased sales into the middle and lower staff.
FINANCIAL AND NON-FINANCIAL and reduced costs as mentioned
MEASURES above to reinforce the reduction KEY SOURCES OF ESTIMATION
in finance cost. UNCERTAINTY
Prospects of the Entity – The
financial projections of the Company Non-Financial Measures – Non- The preparation of financial
are very encouraging with continued financial measures are the many statements requires management
growth expected locally as new intangible variables that impact and the Board of Directors to make
potential markets are being explored performance. These are difficult to estimates and judgments that affect
and various measures adopted by quantify as compared to financial reported amounts of assets, liabilities,
the Company to reduce the cost. measures but they are equally revenues and expenses and related
Different marketing strategies are important. Following are the non- disclosure of contingencies. These
being carried out to increase sales financial measures of the Company: estimates are based on historical
and profitability. experience and various other
1. Stakeholder’s engagement – assumptions that management and
Financial Measures – Various Through different committees the Board believe are reasonable
financial considerations are used to and forums, management under the circumstances, the results
make the projections of Maple Leaf expects to further increase of which form the basis for making
Cement. Following are the financial stakeholder’s engagement judgments about the carrying
measures to determine the healthy and increase the awareness values of assets and liabilities that
prospects of the Company: in different qualitative aspects are not readily apparent from other
of the business through cross sources. Actual results may differ
1. Increase in sales volume for all functionality. from these estimates under different
types of products with special assumptions or conditions.
emphasis on white cement. 2. Customer s a t i s f a c t i o n -The
Company places great focus on Key estimates and assumptions
2. Reduced cost of production customer satisfaction and going concerning the future include:
through: forward, this remains a prime
objective of the management. Estimating useful life of assets
a. reduction in raw material
cost per ton; 3. Brand recognition – Marketing The useful lives are estimated having
b. savings in fuel cost per efforts will be in place to increase regard to the factors as asset usage,

maintenance, rate of technical and effective communication and Grievance policy is supported by a
commercial obsolescence. The customer focused approach because review mechanism, to minimize the
useful lives of assets are reviewed without doing this, we may affect our recurrence of similar issues in future.
annually. Company’s performance and values Investors has the facility to call toll
of our entity. We follow the best free call centre 24/7 to register
Taxation policy to maintain the relationship their grievances. The Company’s
with our stakeholders which Grievance policy follows the following
Determining income tax provisions includes satisfaction of customers principles:
involves judgment on the tax by providing quality products and
treatment of certain transactions. timely payments to all creditors. The • Investors are treated fairly at all
Deferred tax is recognized on tax call centre established two years ago times.
losses not yet used and on temporary is in full swing in achieving the main
differences where it is probable purpose of being a bridge between • Complaints raised by Investors
that there will be taxable revenue the Company and its stakeholders are dealt with courtesy and in a
against which these can be offset. including customers and supply timely manner.
Management has made judgments chain staff. Moreover, the Company
as to the probability of future taxable maintains good relationship with • Investors are informed of
revenues being generated against its Bankers and also arranges avenues to raise their queries and
which tax losses will be available for Investors’ Conferences periodically complaints within the organization
offset. to discuss business prospects and and their rights if they are not
financial management plans with the satisfied with the resolution of
Employee benefit scheme lenders which also enhances their their complaints.
confidence in the Company.
The defined benefit obligations are • Queries and complaints are
based on actuarial assumptions such INVESTORS’ GRIEVANCES POLICY treated efficiently and fairly.
as discount rate, expected rate of
return on plan assets, expected rate The Company believes that • The Company’s employees
of growth in salaries and expected Investor services is a vital element work in good faith and without
average remaining working life of for sustained business growth prejudice, towards the interests of
employees which are extensively and we want to ensure that our the Investors.
detailed in note 12 to the financial Investors receive exemplary service
statements. across different touch points of the CRITICAL PERFORMANCE
Company. Prompt and efficient MEASURES
ENTITY’S SIGNIFICANT service is essential to retain existing
RELATIONSHIPS relationships and therefore, Investor Following are some of the critical
satisfaction becomes critical to the performance measures and
The Company has very prominent Company. Investor queries and indicators against stated objectives
and good relationships with complaints constitute an important of the Company.
all stakeholders. We maintain voice of Investor, and this policy
collaborative relations with our details grievance handling through
stakeholders, good harmony, a structured grievance framework.

Sr. No. Objectives Measures
1 Improved capacity utilization of the Number of days run factor

Company’s production facilities
2 Modernization of production facilities in order Reduction in unplanned stoppages

to ensure the most effective production
3 Effective marketing and innovative concepts Increase in retention and sales volume
4 Implementation of effective human resource Higher return on human capital

solutions through personnel development,
creating proper environment for professional
growth of highly skilled professionals,
ensuring safe labour environment,
competitive staff remuneration and social
benefits in accordance with scope and
quality of their work
5 Effective use of available resources Decrease in variable cost
6 Explore alternative energy resources Reduced dependence on national grid
Further improvements in Code of Corporate Higher legal compliance level and reduction
7 Governance through restructuring of assets in contingencies
and optimization of management processes
8 Compliance with local and international Compliance with SOPs

environmental and quality management
standards, implementation of technologies
allowing to comply with the limitations
imposed on pollutant emissions
9 Implementation of projects in social and Allocation of funds for CSR and their
economic development of communities monitoring

Management believes that current

critical performance measures
continue to be relevant in future as
well.
HUMAN RESOURCE
MANAGEMENT
The Company is committed to

build a strong organizational culture
that is shaped by empowered
employees who demonstrate a
deep belief in Company’s vision
and values. Therefore, Human
Resource Management (HRM) is
an integral part of our business
strategy. The Company fosters
leadership, individual accountability
and teamwork. The main objectives
of the Company’s HRM policy are:
• Selecting the right person,

with the right experience, at achieve a high quality of work- terms of finances and time for the
the right time, offering the right life balance. training of its resources as is evident
compensation. from the below trainings held during
• Developing management SUCCESSION PLANNING the year:
philosophies and practices
to promote and encourage The Company believes in proactive 1. Emotional Intelligence
motivation and retention of the approach towards succession 2. Effective Communication Skills
best employees. planning. We recruit employees, 3. Project Management
• Recognizing and rewarding develop their knowledge, skills, 4. Kiln Alignment
employees’ contribution to the abilities, and prepare them for 5. Supply Chain Management
business. advancement or promotion into ever 6. Simatic Program Logic
• Fostering the concept of team more challenging roles. Rigorous Controllers
work and synergetic efforts. succession planning is also in 7. Situational Leadership II
• Encouraging and supporting place throughout the organization. 8. Building Impactful Brands
team concepts and team Succession planning ensures that 9. Benchmarking Session
building techniques. employees are constantly developed 10. Management Development
• Nurturing a climate of open to fill each needed role. We look for Program
communications between people who exemplify continuous 11. HSE Emergency Response
management and employees. improvement when we are spotting Training
• Making all reasonable efforts to future successors. In this relation, 12. Developing Future Leaders
the Company also expends a lot in

APPROVED TRAINING ORGANIZATION – ICAP &
ICAEW
On 31st August 2016, MLCF was granted the status of

Training Organization Outside Practice (TOoP) by Institute
of Chartered Accountants of Pakistan to impart practical
industry exposure to CA trainee students. The Company
is also an Approved Training Employer recognized by
Institute of Chartered Accountants of England & Wales
(ICAEW). This demonstrates the level of confidence of
these renowned institutes in company’s pool of qualified
professionals and at the same time, raises the opportunity
for trainee students to be trained in one of the best
organizations’ in Pakistan.
MARKET SHARE
Presently the Company due to its unique marketing

efforts and superior quality has 7.2% market share for
grey cement (on capacity based) as evident from the All
Pakistan Cement Manufacturing Association (APCMA)
website. Therefore, the Company is a leading brand in
Pakistan with a diverse customer base and presence in
almost all cities of Pakistan. Carrying on with the legacy
of Leaf, Maple Leaf brand is widely acknowledged as
best quality cement brand in all the markets, where it is
exported. It is also the largest producer of White Cement
in the country with more than 90% of local market share
and the biggest white cement exporter of Pakistan.
MITIGATING EFFORTS TO CONTROL INDUSTRY EFFLUENTS
Traditionally, cement plants are assumed to be lacking

environment friendliness but the Company has installed
most modern and state of the art equipment to control
industry effluents. In order to mitigate the effects of
industrial effluents on surrounding environment, the
Company is putting forth all efforts for providing healthy
environment to employees and natives. In this regard


following major environment friendly efforts are
carried out by the Company:
1) Regular monthly environmental monitoring for

stack emissions and effluents complying with
Natural Environmental Quality Standards.
2) The Company has state of the art FLSmidth A/S

cement manufacturing technology, equipped
with the world class dust collection electrostatic
precipitators and bag filters for environment
protection.
3) Massive Tree Plantation Program was carried out

for maintaining healthy and green environment
as a part of Corporate Social Responsibility in
coordination with District Officer (Environment)
Mianwali.
4) The Company has its own hospital and trauma

centers at plant site. Keeping in view the
occupational health of employees, regular first
aid and CPR training programs are conducted
to ensure safe health of workers.
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

POLICY
The Company’s Social and Environmental

Responsibility Policy reflects the Company’s
recognition that there is a strong, positive correlation
between financial performance and corporate, social
and environmental responsibility. The Company
believes that the observance of sound environmental
and social strategies is essential for building strong
brand and safeguarding reputation, which in turn is
vital for long term success.
Social Responsibility Policy:
• Implementation of Employee Code of Conduct

that fits with local customs and regulations.

• Culture of ethics and behavior which improve values CORPORATE SUSTAINABILITY

like integrity and transparency.
• Focusing on social involvement by developing a) Corporate Social Responsibility
multicultural teams with different competencies.
• Promoting the culture of work facilitation and For community investment and welfare, the Company
knowledge transfer. acknowledges its responsibility towards society and
• Carrying out corporate philanthropy actions that performs its duty by providing financial assistance to
focus in particular on preserving life and the projects for society development by various charitable
environment. institutions on consistent basis. The Company
• Maintaining collaborative relations with has been recognized by Pakistan Centre
the society through a good harmony for Philanthropy as a leader in social and
and effective communication. charitable contributions and strikes to be a
constructive member of the communities
Environmental Responsibility policy: in which it has a presence. Kohinoor Maple
Leaf Group has received “6th Corporate
• Ensure our products, operations Social Responsibility Award 2017” on
and services comply with relevant account of its performance in various
projects. The Company has taken an array
environmental legislation and regulations.
of initiatives for the welfare of its workforce, local
• Maintain and continually improve our
community as well as stakeholders. The Company
environmental management systems to
has contributed in medical social sciences project
conform to the ISO Standards or more
and in this regard, has donated a state of the art
stringent requirements as dictated by specific
Cardiac facility to the Gulab Devi Chest Hospital
markets or local regulations.
(GDCH) in Lahore by constructing Sayeed Saigol
• Operate in a manner that is committed to
Cardiac Complex (SSCC) at GDCH. Other
continuous improvement in environmental initiatives are as follows:
sustainability through recycling, conservation
of resources, prevention of pollution, •Maple Leaf recognizes its responsibility to
product development and promotion of contribute to the community including the
environmental responsibility amongst our minority. In this regard, Christmas party was
employees. arranged both at Head Office and Plant Site
• Responsibly managing the use of on the 23rd of December 2016 to celebrate
hazardous materials in our operations, with the Christian community on their joyous
products and services and promote occasion.
recycling or reuse of our products.
• Inform suppliers, including •Maple Leaf is continually committed to
contractors, of our environmental its Master Mistri Program which aims to
expectations and require them to enhance skills and standard of living of
adopt environmental management masons. To facilitate the program, Maple
practices aligned with these Leaf built a state of the art lodge at its
expectations. plant site for boarding and lodging of
masons.

including waste, rice husk and its employees are actively involved
• Civil defense week was held in carbon black. Company’s 100% in welfare schemes. We believe
October 2016 for training of staff owned 40 Mega Watt Coal Fired that investing in our communities
in defense matters. Power Plant is currently in its trial- is an integral part of our social
run phase and all set to commence commitment to ensure the sustained
b) Industrial Relations commercial production as per success of the Company. We aim to
plan in October 2017 and this will ensure that our business and factory
The Company has set procedures, reduce our dependence on national have the resources and support to
rules and regulations which grid. Also, planning is under way to identify those projects, initiatives and
regulate employment guidance. The automate the switching of lights with partnerships that can make a real
Company has allocated Gratuity, the help of motion and occupancy difference in their communities.
Provident Fund and Worker’s Profit sensors. Moreover, currently we are
Participation Fund for its employees. studying the adoption of solar based • Management of the Company,
The Company also pays bonuses electricity at non-production areas. for maintaining healthy and
to employees on the basis of green environment, celebrated
Company’s profitability and also d) Consumer Protection Measures the World Environment Day
awards performance bonuses to star in coordination with District
performers. Appropriate opportunity We ensure that our products are Officer Environment Mianwali
is provided to employees to shipped in a safe manner complying along with other community
participate in Collective Bargaining with safety standards and legal stakeholders on June 5th, 2017.
Agreement (CBA) activities and to requirements. The Company takes The main aim of celebrating
elect representatives of their choice. care and applies appropriate World Environment Day was
procedures to manufacture cement to demonstrate the continual
The Company is committed to products so as to ensure that no efforts and commitment of the
provide equal opportunity to all harmful substances are present in its Company’s Management for the
existing and prospective employees products. The Company has strict healthy working environment
without any discrimination on the policy to control any activity which is and awareness of people
basis of religion, gender, race, age against the consumer rights. through the Environment Walk
etc. The Company also organized and Seminar in pursuance of
several rewards and recognition e) Employment of Special Persons the community investment and
programs for acknowledgment of welfare schemes.
work done by its employees. The Company has employed
disabled persons in compliance with • In pursuance of the green
c) Energy Saving Measures the rules set out by the Government vision and commitment of
of Pakistan which is 3% quota of the management of the Company
We have developed a Team Energy total workforce necessitated to be for maintaining healthy and
that is striving to attain maximum allocated to disabled persons. green environment, Maple
energy efficiency with environmental Plantation Day was carried out
protection at minimal cost including f) Community Investment and at Maple Leaf Cement Factory
development of alternative sources Welfare Schemes Limited Iskandarabad, Mianwali
like efficient usage of Waste Heat on 21st March, 2017. The
Recovery Boiler, installation of The Company has a strong tradition main aim of the ceremony was
LED lights and other alternatives of good community relations and to demonstrate the continual

the importance of its activities

and continues to play an active role
in this regard.
h) Health Care
Maple Health Care Centre operated

by Al-Shifa International Hospital
Islamabad, has completed during
the current financial year. It is a
health facility concept with state
of the art equipment for the health
benefits of the employees of Maple
Leaf and their dependents. Shifa
International is a known name in
Pakistan with hospitals in Islamabad
and Faisalabad.
Meanwhile, the free medical and
efforts and commitment of the plant site is an area deprived with hospital centre is treating patients
Company’s Management for the updated facilities and medical with the help of quality human capital
healthy working environment aid. In such a case, prevention working there. Keeping in view the
for its workers as well as for the becomes more important than occupational health of employees,
people in neighborhood of the cure but unfortunately due to lack regular first aid and Cardiopulmonary
Company. of knowledge, new cases keep Resuscitation (CPR) training
coming up of such serious diseases. programs are conducted to ensure
• The Company celebrated “The The management realizes safe health of workers.
World Water Day” on the 22nd
of March 2017 at site with the
collaboration of community
and DO Environment. The main
purpose of the seminar was to
raise the awareness of water
preserveness and right use.
g) Rural Development Program
Being setup in a rural area, The

Company realizes its responsibility
to create awareness amongst the
local masses relating to dengue
and other serious diseases through
awareness campaigns and various
other techniques. The area of the

i) Jungle Mein Mangal - Vehicle term, continued to be the heart has established five schools in
Parking spot (VPS) of the Company’s CSR initiatives. Iskandarabad city, which provide
The Company has fully sponsored quality education not only to children
The Company believes that the most construction and furniture for 10 of employees of the Company but
effective way to maximize customer class-rooms for Police Public also to the local residents. The
experience is to move beyond mere Middle School Mianwali. School is Company has provided buildings
customer satifaction and connect operational and ready to induct its and complete infrastructure to these
to all the stakeholders. With this first batch of students in September schools. In addition, the Company
strategy in mind, the Company 2017. Moreover, the Company gives monthly subsidy to partly cover
has recently launched an exclusive
hotel to provide truck drivers a life
time experience. While vehicles are
in queue for their turn, instead of
waiting for long, drivers can visit the
hotel to relax with the touch of fun
and refreshment.
j) Education and Training for

Corporate Sustainability
The Company is fully aware of its

responsibility towards imparting
education to future generations.
Educating the children, ranks the
best future investment for long


the running expenses. About 2,854 Company is certified and areas amongst our employees,
students are currently enrolled in • not only meets customers’ customers, suppliers and all those
these schools. requirements but exceed their who are associated with us in our
requirements and expectations. activities. Our goal in respect of
QUALITY MANAGEMENT safety, health and environment is to
SYSTEMS To achieve these goals, the Quality
Control Department has adopted minimize all adverse environmental
various procedures and is fully and health impacts arising out of our
The Company manufactures
equipped with state-of-the art operations and to conserve all kinds
cement through the plant based
technologies such as: of resources and adhere to all legal
on state of the art technology of
world renowned FLSmidth A/S regulations.
• X-ray Fluorescent Analyzers
Denmark. Quality is assured through and X-ray Diffraction Analyzer
systematic and effective adoption, Maintenance of health and safety
to analyze chemical and
implementation, monitoring and standards at our plants and offices
mineralogical composition
continuous enhancement of quality • Online QCX system software is our top priority. The Company is
control systems using latest methods • Sample preparation tools committed to managing health and
of analysis. To ensure that each bag such as a jaw crusher, sample safety risks associated with our
being used by our valued customers dividers, disk grinding mill, mixer business and is actively working
/ consumers is of the highest mill and press mills towards improving our procedures
quality, all stages of the production • Automatic Moisture Analyzers
process right from the selection • Precision Electronic Balances to reduce, remove or control the
of raw materials, drying, grinding, • Drying Ovens & Furnaces risk of fire, accidents or injuries
homogenization, clinkerization and • Lab glassware to employees and visitors. The
the finished product are tested • Automatic Free Lime Apparatus Company strives to provide a
rigorously. The quality check • PC Based Automatic Calorimeter safe and healthy workplace for its
parameters during each level of and Sulfur
employees and to act responsibly
the process are monitored and • Determinator to analyze fuels
• Latest A u t o m a t i c towards the communities and
controlled by the latest version of
Compressive Strength machines environment, in which it operates. It
technology & equipment connected
on-line with Central Control Room for determination of cement realizes this through the commitment
through PLC system. The frequency compressive strength of its leadership, the dedication
of sampling and testing along with • Latest whiteness tester of its staff, and application of the
control parameters is defined. highest professional standards
OCCUPATIONAL HEALTH, SAFETY
of work. Management takes all
Procedures Adopted for Quality AND ENVIRONMENTAL (HSE)
possible measures to prevent unsafe
Assurance: PROTECTION MEASURES
activities by following best practices
Main purpose is to ensure that the The Company is committed to and through the implementation
cement produced: achieve excellence in Occupational of effective management, human
resources and operational policies.
Safety, Health and Environmental
• meets all the standard The environmental friendly projects
protection. The Company
requirements to which the completed at our plants include:
encourages awareness in these

Waste Heat Recovery Plant: Through No employee is allowed to run a Mianwali and Jahanara Memorial
this project the Company has been parallel business. The Company is Trust for social cause. The Company
able to replace 16 MW of grid maintaining sophisticated Oracle also constructed class-rooms
electricity by utilizing exhaust gases based online software using which and donated furniture in schools
emitted to the atmosphere through any employee can report the non- improving educational facilities at
the stacks of clinker cooler and conformance (NC) to the top Mianwali. The Company has also
kiln. The emissions are significantly management. All the NCs reported donated in the form of cement for
reduced and herewith it relieves the are being addressed by the top construction of schools, mosques
atmosphere radically. management on timely basis and and other social projects.
a regular follow up activity is being
Trees Plantation: To enhance carried out in order to ensure that all CONTRIBUTION TO NATIONAL
environmental standards and issues highlighted are being resolved EXCHEQUER
continuously promoting a better permanently. Moreover, the company
and green environment within the has also formulated whistle blowing During the year, Company has
factory as well in the nearby areas policy. contributed an amount of Rs. 9,902
the Company is arranging regular million towards national exchequer
Tree Plantation activities twice a NATIONAL CAUSE DONATIONS in shape of taxes, duties, cess,
year and the Company has planted levies etc. The Company has also
approximately 45,000 new trees During the year, the Company has contributed through earnings
during the year 2016-17, enabling donated in cash to Gulab Devi of valuable foreign exchange
the total count to cross 170,000 Chest Hospital, DHQ Hospital amounting to US$ 23 million.
plants at different locations within
factory premises and nearby areas
to provide healthy environment to
employees and other community
living in surroundings. This activity
will continue in the future and further
trees will be planted to ensure
healthy and green environment.
BUSINESS ETHICS & ANTI-

CORRUPTION MEASURES
The Company, through its training,

management standards and
procedures, aims to develop
a disciplined and constructive
control environment in which all
employees understand their roles
and obligations. Employees are
encouraged to report any deal that
may be supported by kickbacks.

SAFA BPA AWARD Recovery (BC/DR) plan

to ensure that critical
The Company added business functions will be
another feather to its cap available to customers,
by being nominated for suppliers, regulators, and
the second time for the other entities that have
SAFA best presented access to those functions
accounts and was even under extraordinary
declared for runner-up circumstances. BC/ DR plan
award in SAFA countries’ mainly includes daily tasks
manufacturing category. such as customer/suppliers
The ceremony was held in correspondence, production
Dhaka Bangladesh Maple data, trading activities,
Leaf was one of the two project management,
cement companies being system backups and help
nominated from Pakistan. desk operations.
BEST CORPORATE REPORT AWARD The primary activities of the Board for the
execution of the plan include:
The Company keeping the tradition of winning
the Best Corporate Report award in Sugar and 1) To develop and maintain a formal plan that is
Cement Sector jointly presented by ICAP and responsive to the Company’s current business
ICMAP throughout Pakistan, has once again won needs and operating environment.
the award this year. This award was presented
to MLCF management in a ceremony held on 2) To ensure that a Business Continuity Recovery
25th August 2017 in Karachi. MLCFL is the leader Team includes representatives from all business
in most transparent and easily understandable
units.
Financial Reports thus reflecting the sound financial
systems of the company. These recognitions have
3) To provide ongoing business continuity training to
strengthened the Company’s resolve to be positioned
all employees, including executive management and
the best in the area of corporate reporting.
the Board.
BUSINESS CONTINUITY AND DISASTER
RECOVERY PLAN 4) Ensure that thorough current business impact
analysis and risk assessments are maintained.
The Board of Directors periodically review the 5) Ensure a centralized executive view of the
Company’s Business Continuity & Disaster business continuity plan and programs.

CEO PERFORMANCE REVIEW present fairly its state of affairs, trust, based on their respective
the result of its operations, cash audited / unaudited accounts of
The performance of the CEO is flows and changes in equity. June 30, 2017 is as under:
regularly evaluated by the Board
of Directors and this evaluation b) Proper books of account Rupees in
is based on the criteria defined have been maintained by the thousand
by the Board of Directors which Company.
includes various financial and non- Provident Fund 626,742
financial key performance indicators c) Appropriate accounting policies Gratuity Fund 153,899
have been consistently applied
(KPIs). At the start of the year, CEO
in preparation of financial
presents his KPI for the upcoming There has been no material changes
statements and accounting
year to the Board of Directors. The since June 30, 2017 except as
estimates are based on
Board periodically evaluates the disclosed in this annual report and
reasonable and prudent
actual performance against those the Company has not entered into
judgment.
KPIs during the year and discusses any commitment, which would affect
the future course of action to attain d) International Financial Reporting its financial position at the date
the Company’s stated goals. The Standards, as applicable in except for those mentioned in the
CEO also appraises to the Board Pakistan, have been followed audited financial statements of the
regarding an assessment of senior in preparation of financial Company for the year ended June
management and their potential statements and any departure 30, 2017.
to achieve the objectives of the there from have been adequately
Company. disclosed and explained. During the year, the Company
has complied with all applicable
COMPLIANCE OF THE CODE OF provisions, filed all returns / forms and
e) The existing internal control
CORPORATE GOVERNANCE furnished all the relevant particulars as
system and procedures are
continuously reviewed by the required under the Companies Act,
The Board reviews the Company’s 2017 and allied rules, the Securities
strategic direction and business Internal Audit Department. The
process of review will continue by and Exchange Commission of
plans on regular basis. The Audit Pakistan (SECP) Regulations and the
Committee is empowered for the Audit Committee to monitor
the effective implementation. listing requirements.
effective compliance of the Code
of Corporate Governance. The DIRECTORS AND BOARD
Board is committed to maintain a f) There are no significant doubts
upon the Company’s ability to MEETINGS
high standard of good corporate
governance. continue as a going concern.
During the year under review, four
g) Key operating and financial data meetings of the Board of Directors
Your Directors are pleased to report were held in Pakistan and no meeting
that: of last six years is annexed.
was held outside Pakistan. Attendance
h) The value of investment of by each Director was as follows:
a) The financial statements,
prepared by the management provident fund and gratuity

Sr. # Name of Directors Designation Meetings attended
1) Mr. Tariq Sayeed Saigol Chairman / Non Executive Director 4

2) Mr. Sayeed Tariq Saigol CEO / Executive Director 4
3) Mr. Taufique Sayeed Saigol Non Executive Director 4
4) Mr. Waleed Tariq Saigol Non Executive Director 2
5) Mr. Danial Taufique Saigol Non Executive Director 4
6) Syed Mohsin Raza Naqvi GDF / CFO / Executive Director 4
7) Mr. Zamiruddin Azar Non Executive Director 4
8) Mr. Shafiq Ahmed Khan Independent Non Executive Director 2
9) Mr. Karim Hatim Independent Non Executive Director (Retired) 1
Leave of absence was granted to the Directors who could not attend the Board meetings.
ix. The Board considers the quality and appropriateness

ANNUAL EVALUATION OF BOARD PERFORMANCE of financial accounting and reporting and the
transparency of disclosures.
The Board has set a criterion based on emerging and
leading practices to assist in the self-assessment of an EVALUATION CRITERIA OF BOARD PERFORMANCE
individual director and the full Board’s performance. It
is not intended to be all-inclusive. When completing the Following is the main criteria:
performance evaluation, Board considers the following
main performance evaluation process or behavior: 1. Financial policies reviewed and updated;
2. Capital and operating budgets approved annually;
i. Adequate Board composition. 3. Board receives regular financial reports;
ii. Satisfactory processes and procedures for Board 4. Procedure for annual audit;
meetings. 5. Board approves annual business plan;
iii. The Board sets objectives and formulates an overall 6. Board focuses on goals and results;
corporate strategy. 7. Availability of Board’s guideline to management;
iv. The Board has set up adequate number of its 8. Regular follow up to measure the impact of Board’s
Committees. decisions;
v. Each Director has adequate knowledge of economic 9. Assessment to ensure compliance with code of ethics
and business environment in which the company and corporate governance.
operates.
vi. Each Board member contributes towards effective QUALIFICATION OF CFO AND HEAD OF INTERNAL
and robust oversight. AUDIT
vii. The Board has established a sound internal control
system and regularly reviews it. The Chief Financial Officer and the Head of Internal Audit
viii. The Board reviews the Company’s significant possess the requisite qualifications and experience as
accounting policies according to the adequate prescribed in the Code of Corporate Governance.
financial reporting regulatory framework.

FORMAL ORIENTATION TRAINING PROGRAM FOR DIRECTORS
The Board had arranged Orientation Courses for its Directors namely, Mr. Danial Taufique Saigol and Syed Mohsin Raza
Naqvi from recognized institutions of Pakistan approved by the SECP whereas some Directors having the requisite
experience on the Board(s) of Listed Companies are exempt from the Directors’ Training Program. Further, the Directors
have also provided declarations that they are aware of their duties, powers and responsibilities under the Companies
Act 2017 and the Listing Regulations of the Pakistan Stock Exchange.
TRANSACTION / TRADE OF COMPANY’S SHARES
The Board has reviewed the threshold for disclosure of interest by executives holding of Company’s shares which
includes Chief Executive Officer, Chief Financial Officer, Head of Internal Audit and Company Secretary. Since the
previous Directors’ Report, following transactions / transfer of shares were noted:
Name & Designation No. of Shares Nature of Transaction
Mr. Taufique Sayeed Saigol-Director 2,500 Received from his son, Mr. Kamil Taufique Saigol by
virtue of Gift Deed
Zimpex (Pvt) Limited Associated Co. 1,706 Sold
Mrs. Shehla Tariq Saigol 1,850,000 Sold
Spouse of Mr. Tariq Sayeed Saigol-Director
-do- 3,125 Received from her daughter, Ms. Jahanara Saigol by
virtue of Gift Deed
-do- 80,823 Received from her deceased parents by virtue of
succession certificate
Mr. Shafiq Ahmed Khan-Director 2,500 Purchased
Mr. Karim Hatim, Ex-Director 2,500 Sold
-do- 2,500 Purchased
Further, none of the Directors other than disclosed above, CEO, CFO, Head of Internal Audit and Company Secretary
(including their spouses and minor children) traded in the shares of the Company.
PATTERN OF SHAREHOLDING
Pattern of shareholding of the Company in accordance with the Companies Act, 2017 and Code of Corporate
Governance as at June 30, 2017 is annexed.
AUDITORS
The present auditors of the Company M/s. KPMG Taseer Hadi & Co., Chartered Accountants, audited the financial
statements of the Company and have issued report to the members. The auditors will retire at the conclusion of the
Annual General Meeting. Being eligible, they have offered themselves for re-appointment. The Board has recommended
the appointment of M/s. KPMG Taseer Hadi & Co., Chartered Accountants as auditors for the ensuing year, as suggested
by the Audit Committee, subject to approval of the members in the forthcoming Annual General Meeting.


BRIEF PROFILE OF DIRECTORS

MR. TARIQ SAYEED SAIGOL Right Sizing of State owned Corporations and Resource
(CHAIRMAN / DIRECTOR) Mobilization. He is the author of Textile Vision 2005
which was adopted by the Government in 2000 and its
OTHER ENGAGEMENTS critique prepared in 2006. He joined the Central Board
of State Bank of Pakistan for a second term in 2007
CHAIRMAN / DIRECTOR and was a member of the Prime Minister’s Economic
Kohinoor Textile Mills Limited Advisory Council established in 2008.
Maple Leaf Power Limited
He takes keen interest in the development of education
CHAIRMAN / CHIEF EXECUTIVE / DIRECTOR in Pakistan. He has been a member of the Board
Maple Leaf Capital Limited of Governors of Lahore University of Management
Sciences, Aitchison College, Founding Chairman of the
Mr. Tariq Sayeed Saigol is the Chairman of Kohinoor Board of Governors of Chandbagh School, Founder
Maple Leaf Group (KMLG). He is a member of the reputed Trustee of Textile University of Pakistan and member
Saigol Family who pioneered in textile manufacturing of the Syndicate of University of Health Sciences. He is
after partition and later ventured into the financial sector, conferred with Sitara-e-Isaar by President of Pakistan in
chemicals, synthetic fibres, sugar, edible oil refining, civil 2006.
engineering, construction, cement and energy.
He is a keen golfer and has represented Pakistan at Golf
Mr. Saigol was schooled at Aitchison College, Lahore in Sri Lanka and Pakistan in 1967.
and graduated from Government College University,
Lahore following which, he studied Law at University MR. SAYEED TARIQ SAIGOL
Law College, Lahore. (CHIEF EXECUTIVE / DIRECTOR)
He started his career in 1968 at Kohinoor’s Chemical OTHER ENGAGEMENTS

Complex at Kala Shah Kaku. Upon trifurcation of the
Group in 1976, he became Chief Executive of Kohinoor CHIEF EXECUTIVE / DIRECTOR
Textile Mills Limited, Rawalpindi. Since 1984, he has Maple Leaf Power Limited
been Chairman of Kohinoor Maple Leaf Group which has
interests in textiles, energy and cement manufacturing. DIRECTOR
Kohinoor Textile Mills Limited
He remained Chairman of All Pakistan Textile Mills
Association from 1992 to 94, President of Lahore Mr. Sayeed Tariq Saigol is the Chief Executive of Maple
Chamber of Commerce and Industry for 1995-97 Leaf Cement. He graduated from McGill University with
and Chairman of All Pakistan Cement Manufacturers a degree in management. Mr. Sayeed Saigol also has
Association from 2003-2006. several years of work experience in the textile industry.
Prior to joining Maple Leaf Cement he was involved in
Mr. Saigol was a member of the Federal Export Promotion setting up and managing an apparel dyeing company.
Board and Central Board of State Bank of Pakistan. He He is a member of the Board of Governors of the Lahore
has also served on several Government Commissions University of Management Sciences.
and Committees on a number of subjects, including
Export Promotion, reorganization of WAPDA and EPB,

MR. TAUFIQUE SAYEED SAIGOL MR. DANIAL TAUFIQUE SAIGOL
(DIRECTOR) (DIRECTOR)
OTHER ENGAGEMENTS OTHER ENGAGEMENTS
CHIEF EXECUTIVE / DIRECTOR DIRECTOR

Kohinoor Textile Mills Limited Kohinoor Textile Mills Limited
DIRECTOR
Maple Leaf Power Limited Mr. Danial Taufique Saigol is the younger son of
Maple Leaf Capital Limited Mr.Taufique Sayeed Saigol, CEO of KTML. Danial began
his career with KMLG in January 2012 as Executive
Mr. Taufique Sayeed Saigol is the Chief Executive of Director. He holds a bachelor’s degree in Finance from
Kohinoor Textile Mills Limited and Director in all KMLG McGill University, Montreal, Canada. He is currently
companies. He is a leading and experienced industrialist posted at Kohinoor Textile Mills, Rawalpindi.
of Pakistan. He graduated as an Industrial Engineer from
Cornell University, USA in 1974. He is widely traveled and
his special forte is in the export business. MR. ZAMIRUDDIN AZAR
(DIRECTOR)
He is a business man of impeccable credibility and vision
and has substantial experience of working in different Mr. Zamiruddin Azar has been actively involved in various
environments. corporate activities of the Kohinoor Maple Leaf Group.
As a Non Executive Director, he is also the Chairman
MR. WALEED TARIQ SAIGOL of the Audit Committee. With 35 years of experience at
(DIRECTOR) Glaxo Pakistan, Mr. Azar provides invaluable insight into
project management, human resource development and
OTHER ENGAGEMENTS administration.
DIRECTOR MR. SHAFIQ AHMED KHAN

Kohinoor Textile Mills Limited (DIRECTOR)
Maple Leaf Capital Limited OTHER ENGAGEMENTS
DIRECTOR
Mr. Waleed Tariq Saigol is Director in all KMLG companies. Kohinoor Textile Mills Limited
He holds a bachelor’s degree in Political Science from the
London School of Economics & Political Science. Apart Mr. Shafiq Ahmed Khan got his bachelor degree from
from his responsibilities in textiles he is also involved Punjab University and joined Habib Bank Limited at entry
in identifying and developing new areas of business level in 1968 and spent over a period of 24 years in order
for KMLG. He is a keen golfer and has won several to become Executive Vice President while performing in
tournaments in Pakistan. different areas of services. In 1992, he spent a period
of five years in Fidelity Investment Bank Limited, Lahore,

as first President & CEO of a major investment bank in implementing financial software, organizing finance and
the country and guided with sound business and risk treasury functions of the Company.
management.
He is former board member of Kohinoor Mills Limited, Al-
Since 1996 to 2005, he has been associated with Pakistan’s Wazan Group, Kuwait and Trust Investment Bank Limited.
largest private sector commercial bank as Senior Executive
Vice President / Group Head and taken responsibilities for He has experience of working in several countries which
devising and implementing business strategies for MCB include Saudi Arabia, Kuwait, Philippines, Morocco,
Bank Limited. Over the course of 36 years in a career, Jordan and Pakistan.
he used up in domestic and international market with all
necessary skills for developing & implementing successful
strategies for institutions’ businesses across geographical
segments particularly in banking relationships and enjoy
sound relationships with regulatory authorities in various
countries. Currently, being an Independent Director, he is
member of Audit Committee.
SYED MOHSIN RAZA NAQVI

(DIRECTOR) / GROUP DIRECTOR FINANCE /
CHIEF FINANCIAL OFFICER
OTHER ENGAGEMENTS
DIRECTOR / CHIEF FINANCIAL OFFICER

Kohinoor Textile Mills Limited
DIRECTOR
Mr. Mohsin Naqvi is Fellow Member of the Institute of

Chartered Accountants of Pakistan with over 28 years of
Financial Management experience.
His areas of expertise include: financial projections,

forecasting-short term and long-term cash flows, business
strategy development, acquisitions and evaluations
of business units, establishing company’s reporting
structure, implementing budgetary control procedures,

THE BOARD STRUCTURE AND ITS
COMMITTEES
BOARD STRUCTURE
Following are the Board members along with their status.
NAME STATUS
MR. TARIQ SAYEED SAIGOL Chairman/Non-Executive Director

MR. SAYEED TARIQ SAIGOL CEO/Executive Director
SYED MOHSIN RAZA NAQVI GDF/CFO/Executive Director
MR. TAUFIQUE SAYEED SAIGOL Non Executive Director
MR. WALEED TARIQ SAIGOL Non Executive Director
MR. DANIAL TAUFIQUE SAIGOL Non Executive Director
MR. ZAMIRUDDIN AZAR Non Executive Director
MR. SHAFIQ AHMED KHAN Independent Non Executive Director
AUDIT COMMITTEE
By virtue of election of Directors held during the year, the following Audit Committee was re-constituted:
NAME DESIGNATION
MR. ZAMIRUDDIN AZAR Chairman / Non-Executive Director

MR. WALEED TARIQ SAIGOL Member / Non-Executive Director
MR. DANIAL TAUFIQUE SAIGOL Member / Non-Executive Director
MR. SHAFIQ AHMED KHAN Member / Independent Non-Executive Director
A total number of five meetings of the Audit Committee were held during the year. The attendance of each
member was as under:
NAME MEETINGS ATTENDED
MR. ZAMIRUDDIN AZAR 5

MR. WALEED TARIQ SAIGOL 2
MR. DANIAL TAUFIQUE SAIGOL 5
MR. KARIM HATIM (ex-member) 1
MR. SHAFIQ AHMED KHAN 2
Leave of absence was granted to the Members who could not attend the meetings.

Terms of Reference f. Ensuring coordination between the internal and

external auditors of the Company;
The main terms of reference of the Audit Committee of
the Company include the following: g. Review of the scope and extent of internal audit
and ensuring that the internal audit function has
a. Determination of appropriate measures to adequate resources and is appropriately placed
safeguard the Company’s assets; within the Company;
b. Review of quarterly, half-yearly and annual financial h. Consideration of major findings of internal
statements of the Company, prior to their approval investigations of activities characterized by fraud,
by the Board of Directors, focusing on: corruption and abuse of power and management’s
response thereto;
• Major judgmental areas;
i. Ascertaining that the internal control systems
• Significant adjustments resulting from the including financial and operational controls,
audit; accounting systems for timely and appropriate
recording of purchases and sales, receipts and
• The going concern assumption; payments, assets and liabilities and the reporting
structure are adequate and effective;
• Any changes in accounting policies and
practices; j. Review of the Company’s statement on internal
control systems prior to endorsement by the Board
• Compliance with applicable accounting of Directors and internal audit reports;
standards;
k. Instituting special projects, value for money studies
• Compliance with listing regulations and other or other investigations on any matter specified by
statutory and regulatory requirements and the Board of Directors, in consultation with the
CEO and to consider remittance of any matter to
• Significant related party transactions. the external auditors or to any other external body;
c. Review of preliminary announcements of results l. Determination of compliance with relevant statutory

prior to publication; requirements;
d. Facilitating the external audit and discussion with m. Monitoring compliance with the best practices
external auditors of major observations arising of corporate governance and identification of
from interim and final audits and any matter that significant violations thereof; and
the auditors may wish to highlight (in the absence
of management, where necessary); n. Consideration of any other issue or matter as may
be assigned by the Board of Directors.
e. Review of management letter issued by external
auditors and management’s response thereto;

HUMAN RESOURCE & REMUNERATION COMMITTEE (HR & R COMMITTEE)
By virtue of election of Directors held during the year, the following Human Resource & Remuneration (HR&R) Committee
was reconstituted as under:
NAME DESIGNATION
MR. WALEED TARIQ SAIGOL Chairman / (Non-Executive Director)

MR. ZAMIRUDDIN AZAR Member / (Non-Executive Director)
MR. DANIAL TAUFIQUE SAIGOL Member / (Non-Executive Director)
NUMBER OF MEETINGS HELD – 01

b. Recommendations in respect of compensation
(All Members attended the meeting other than including performance incentives will ensure that:
Mr. Waleed Tariq Saigol. • The Company is able to recruit, motivate and retain
persons of high ability, caliber and integrity.
Terms of Reference • The packages are consistent with what is normal in
industry and / or specific job wise, as determined
The main terms of reference of the HR & R Committee of through surveys conducted.
the Company include the following: • Incentives where applicable are based on criteria
which have been carefully examined, discussed
The Committee shall be responsible to: and authorized.
c. Selection recommendation should ensure that the
i) recommend human resource management policies Company has a formal selection procedure which
to the Board; provides for;
ii) recommend to the Board the selection, evaluation, • A description of the position that requires to be
compensation (including retirement benefits) and filled with a profile of the ideal candidate;
succession planning of the CEO; • Selection Boards for various levels of recruitment.
iii) recommend to the Board the selection, evaluation,
compensation (including retirement benefits) of d. Performance evaluation should:
CFO, Company Secretary and Head of Internal • Be based on procedures formally specified and
Audit. This will include benefits in kind, pension which override individual likes and dislikes;
rights and compensation payments, including any • Provide for a discussion of the Annual Performance
compensation payable for loss or termination of Report with each manager concerned.
their office or appointment and;
iv) consider and approve on recommendations e. The Committee will also:
of CEO on such matters for key management • Review and approve compensation payable to
positions who report directly to CEO. senior management for any loss or on termination
a. The remuneration of executive and non-executive of service to ensure that it is consistent with
Directors shall not fall within the preview of the HR contractual terms and is otherwise fair.
& R Committee. • Review and advise on the training, development

and succession planning for the senior management with reference to the Board’s corporate goals and objectives.
• Devise a procedure for the approval of HR related policies of the Company.
• Review from time to time as appropriate these Terms of Reference and the effectiveness of the Committee and
recommend to the Board any necessary changes.
Team Energy
Higher management of the company has formulated a team of pioneer executives with diversified skills to cope up the
situation regarding increased energy cost for cement manufacturing. Energy consumption is quite intensive at cement
plant; therefore, the price fluctuation of cement requires some cheap and efficient energy solutions. The team has been
working since four and a half years to ensure the improved performance through prudent energy use by the process of
monitoring, controlling, and conserving energy in the organization. Composition of team is as follows:
MEMBERS:
MR. SAYEED TARIQ SAIGOL MR. MUHAMMAD BASHARAT

MR. ABDUL HANAN MR. NASIR IQBAL
MR. AMIR FEROZE MR. SOHAIL SADIQ
MR. ARIF IJAZ MR. ZEESHAN MALIK BHUTTA
MR. MUHAMMAD ALI REHMAT
Team improvement
A team of proficient personnel has been formulated to encourage the concept of sustainable development through total
quality management that supports the process of continuous improvement of products and processes involved within
the organization. They accentuate on the development of long term strategies for achieving the company objectives
for sustainable development and reinforce the culture of quality. All stages of the production process right from the
selection of raw materials, processing of materials and the finished product are subjected to rigorous quality testing to
ensure that each bag of cement is of the best quality.
MEMBERS:
MR. SAYEED TARIQ SAIGOL MR. MUHAMMAD ALI REHMAT

MR. ABDUL HANAN MR. MUHAMMAD SAJJAD
MR. AMER BILAL MR. NAUMAN AHMED
MR. AMIR FEROZE MR. SOHAIL SADIQ
MR. ARIF IJAZ MR. YAHYA HAMID
MR. FAROOQ AHMAD HASHMI MR. ZEESHAN MALIK BHUTTA

Team Reliability Centered Maintenance
Reliability Centered Maintenance (RCM) team has been established to evaluate the equipment’s condition
and then determine the maintenance requirements for each piece of equipment in operating context of
our cement plant. RCM Team is specialized in using various maintenance techniques such as predictive,
preventive and proactive maintenance to keep in pace all the machinery and equipment for their adequate
functionality and to increase cost effectiveness, machine uptime, and a greater understanding of the level
of risk that the organization is presently managing.
MEMBERS:
MR. SAYEED TARIQ SAIGOL MR. MUHAMMAD BASHARAT

MR. ABDUL HANAN MR. NASIR IQBAL
MR. AMIR BILAL MR. SOHAIL SADIQ
MR. AMIR FEROZE MR. TARIQ MIR
MR. ARIF IJAZ MR. UMAR BUTT
MR. MUHAMMAD ALI REHMAT MR. ZEESHAN MALIK BHUTTA
Team Culture
To promote socio-economic culture, arts and national heritage, a team is engaged in our organization.
Keeping in mind the social, cultural and economic needs of employees and workers, it proposes strategies
to ensure wellbeing of people and to have all participate in sports and active recreation. It sets out to make
Maple Leaf Cement Factory Ltd. a culture supporter organization in Pakistan, to harness the creativity of
the employees and where all people are treated equally.
MEMBERS:
MR. SAYEED TARIQ SAIGOL MR. MUHAMMAD SAJJAD

MR. ABDUL HANAN MR. SOHAIL SADIQ
MR. AMIR FEROZE MR. YAHYA HAMID
MR. ARIF IJAZ MR. ZEESHAN MALIK BHUTTA
NUMBER OF MEETINGS HELD -15

POLICY AND PROCEDURES FOR

STAKEHOLDERS’ ENGAGEMENT
1) Policy Note:
Maple Leaf Cement maintains sound collaborative relationships with its stakeholders.
2) Procedures:
Procedure for stakeholders’ engagement includes effective communication, good harmony, compliance
with laws & regulations and customer focused approach which is the key success factor for establishment
of collaborative relationship with stakeholder.
3) Engagement frequency:
STAKEHOLDERS NATURE OF ENGAGEMENT FREQUENCY
SHAREHOLDERS Annual general meeting Annually

Annual report / Quarterly reports Annually / Quarterly
Investor conference Annually
Analyst briefing Continuous
EMPLOYEES Trade unions Continuous
Maple magazine Quarterly
Annual get together Annually
Team cultural activities Monthly
CUSTOMERS Customer call center Continuous
Customer events Continuous
Customer satisfaction survey Continuous
SUPPLIERS Regular meeting with major
suppliers Continuous
Supplier forums Occasionally
Newspapers advertisement As required
INSTITUTIONAL Business briefings Occasionally
INVESTOR / LENDERS Periodic meetings As required
Financial reporting Continuous
Head office / site visits As required
COMMUNITY Environmental campaign Continuous
ORGANIZATIONS Safety management system As required
MEDIA Media announcements and briefings As required
Media interviews As required
REGULATORS Submission of periodic reports Periodic basis
Responding / enquiring various As required
queries / information
ANALYST Corporate briefing and analysis As required
Forecasting and financial modelling As required

SWOT Analysis
SWOT analysis is being used at Maple Leaf Cement as a strategy formulation tool, in order to match our strengths
with perceived opportunities and minimize our weaknesses to avoid market and other threats. Management at Maple
Leaf considers the following factors of SWOT analysis relevant to us:
STRENGTHS WEAKNESSES
• Single largest cement producing site in Pakistan. • Cyclical industry.

• State of the Art FL Smidth plants. • High transport cost.
• Higher EBITDA %. • Highly regionalized and localized
• Excellent logistic management including Pakistan Railway market.
arrangement. • High electricity cost.
• Fully diversified cement producer. • Energy load shedding.
• Strong local and international branding
• High taxation.
• Offering over 330 days/year production.
• Well diversified fuel mix and efficient operation.
• Well developed refined human resource.
• Lowest energy cost per ton of clinker.
• Self power generation - owned coal based power plant.
OPPORTUNITIES
THREATS
• Focus on cost optimization.
• Huge Govt. expenditure in infrastructure development. • Rising cost of logistics.
• Availability of housing loan from financial institutions. • Rising cost of power.
• Rising population works as a catalyst for housing boom. • Currency devaluation risk.
• Low per capita consumption. • New entrant threats due to high
• Research to develop new products.
potential market.
• Long term growth at the rate of 7% to 8%.
• High incidence of taxes.
ISSUES RAISED IN LAST AGM consequently the current year would up shares will impact Company’s
not reflect the full impact of the EPS due to resultant dilution.
On query of a shareholder, the new prices. He apprized the House
Chairman informed the House that about estimated debt equity ratio in Decisions Taken and their
during the first quarter of the current financing the additional dry process Implementation Status
year, coal prices rebounded in the line 3 of 7,000 tpd grey clinker
international markets and bullish production capacity at the existing New production line ground breaking
trend in fuel prices would have plant site. Regarding issuance ceremony was held at plant site
unfavorable impact. The Company of Right Shares for financing the where civil and piling work is in its
had procured a reasonable stock proposed expansion project, the full swing. Regarding query related
of coal at the lower price and Chairman said that increase in paid to right issue, management, as a

strategic measure, maintains an optimum mix of debt- facilitate compliance with the Policy as well as to highlight
equity. In particular, there was no action required to be the consequences of non-compliance with the Policy
taken in pursuance of issues raised in AGM. by all its employees and directors. The Company Policy
provides a guide as to what constitutes a conflict of
SAFETY OF RECORD interest, the processes and procedures that are in place
in order to facilitate compliance and, the consequences of
MLCF is effectively implementing the policy to ensure the noncompliance. The Policy is intended to assist directors
safety of the records. All records must be retained for as and employees in making the right decisions when
long as they are required to meet legal, administrative, confronted with potential conflict of interest issues.
operational, and other requirements of the Company. The
main purposes of the Company Policy are: Management of Conflict of Interest:
• To ensure that the Company’s records are created, The primary goal of MLCF policy is to manage conflicts of
managed, retained, and disposed off in an effective interest to ensure that decisions are made and are seen
and efficient manner; to be made on proper grounds, for legitimate reasons
• To facilitate the efficient management of the and without bias. To do this MLCF has set the following
Company’s records through the development of a procedures to manage and monitor the conflict of Interest:
coordinated Records Management Program;
• To ensure preservation of the Company’s records of 1. Identify areas of risk.
permanent value to support both protection of privacy
2. Develop strategies and responses for risky areas.
and freedom of information services throughout the
3. Educate all employees about the conflict of interest
Company to promote collegiality and knowledge
policy.
sharing;
4. Communicate with stakeholders to provide the
• Information will be held only as long as required and
disposed off in accordance with the record retention platform for proper disclosure.
policy and retention schedules and 5. Enforce the policy.
• Records and information are owned by the Company,
not by the individual or team. Further, the directors are annually reminded of the insider
trading circular issued by the Securities and Exchange
CONFLICT OF INTEREST MANAGEMENT POLICY Commission of Pakistan to avoid dealing in shares while
they are in possession of the insider information. Every
Policy Statement director is required to provide to the Board complete
details regarding any material transaction which may bring
The company has the policy for actual and perceived conflict of interest with the Company for prior approval
conflicts of interest and measures are adopted to avoid of the Board. The interested directors do not participate
any conflict of interest, identify the existence of any in the discussion neither they vote on such matters. The
conflict of interest, and to disclose the existence of transactions with all the related parties are made on
conflict of Interest. The Company annually circulates and arms-length basis and complete details are provided to
obtains a signed copy of Code of Conduct applicable the Board for their approval. Further all the transactions
to all its employees and directors, which also relates to with the related parties are fully disclosed in the financial
matters relating to conflict of interest. Further, it seeks to statements of the Company.
set out the process, procedures and internal controls to

ROLE OF CHAIRMAN AND THE CEO
The Company’s Chairman reports to the Board and the CEO reports to the Chairman (acting on behalf of the Board)
and to the Board directly. Their respective roles are being described hereunder:
Role of the Chairman Role of the CEO
Principal responsibility is the effective running of the Principal responsibility is running the Company’s
Board. business.
Responsible for ensuring that the Board as a whole Responsible for proposing and developing the
plays a full and constructive part in the development Company’s strategy and overall commercial
and determination of the Company’s strategy and objectives, which he does in close consultation
overall commercial objectives. with the Chairman and the Board.
Guardian of the Board’s decision-making process. Responsible with the executive team for
implementing the decisions of the Board and its
Committees.
Responsible for promoting the highest standards Responsible for promoting, and conducting the
of integrity, probity and corporate governance affairs of the Company with the highest standards
throughout the Company and particularly at Board of integrity, probity and corporate governance.
level.
IT Governance Policy
MLCF has properly documented and implemented IT Governance Policy to ensure an integrated framework for
evolving and maintaining existing information technology and acquiring new technology to achieve the Company’s
strategic focus. The purpose of this policy is to define the IT governance scope, and its roles and responsibilities.
IT Governance Policy consists of the following:
• It provides a structured decision making process around IT investment decisions.

• Promotes accountability, due diligence, efficient and economic delivery of the Company’s IT services.
• It lays down solid foundation for management decision making and oversight.
• Safeguard of Company’s financial data.
• Development and upgradation of different modules to provide reliable, efficient and timely information.
• To create a culture of paperless environment within the Company.


Whistle Blowing Policy
In accordance with the Company’s continued commitment to ‘Good Governance’ a ‘Whistle Blowing’ policy has been
adopted. The policy ensures that the ‘Whistle Blower’ will be fully protected and the said non-conformance, will be
investigated in a fair, transparent, reliable and principled manner.
Highlights of the policy are as follows:
1. All Protected Disclosures should be addressed to the nominated Ombudsman of the Company.
2. The Protected Disclosures should be reported in writing clearly stating the issue that is being raised. It should be
preferably typed but legible handwritten versions in English or Urdu are also acceptable.
3. The Protected Disclosures should be forwarded with a covering letter bearing the identity of the whistle blower.
4. Anonymous disclosures will not be entertained.
5. If in an initial enquiry by the Ombudsman, it is felt that the complaint is not substantial, it can be dismissed.
6. If initial enquiry establishes that further investigation is necessary, the Ombudsman will ensure that an investigation
is carried out in a neutral and fair manner without presumption of guilt. A written request of the finding will be
prepared.
7. Further investigation shall only be carried out if the Ombudsman feels that the complaint is factual, fair and not
speculative. It should contain as much factual information to necessitate a preliminary investigation.
In MLCF, no whistle blowing incidence was highlighted and reported under the above said procedures during the year.


REPORT OF THE AUDIT COMMITTEE
The Audit Committee comprises management processes and

of one independent non-executive 2. Appropriate accounting policies adequate for shareholder needs.
Director and three non-executive have been consistently applied.
Directors. The Chief Financial Officer, All core and other applicable 4. The Audit Committee reviewed
the Chief Internal Auditor and the International Accounting Standards and approved all related party
external auditors attend the Audit were followed in preparation transactions.
Committee meetings as provided in of financial statements of the
the Code of Corporate Governance. Company and consolidated 5. No cases of material complaints
Five meetings of the Audit Committee financial statements on a going regarding accounting, internal
were held during the year 2016-2017. concern basis, which present accounting controls or audit
Based on reviews and discussions in fairly the state of affairs, results matters, or Whistle Blowing were
these meetings, the Audit Committee of operations, cash flows and received by the Committee.
reports that: changes in equity of the Company.
6. The Company’s system of
1. The Audit Committee reviewed 3. Accounting estimates are based internal control is sound in design
and approved the quarterly, on reasonable and prudent and is continually evaluated for
half yearly and annual financial judgment. Proper and adequate effectiveness and adequacy.
statements of the Company accounting records have been
including consolidated financial maintained by the Company in 7. The Board has established
statements and recommended accordance with the Companies internal audit function being an
them for approval of the Board of Act, 2017, and the external independent appraisal function
Directors. reporting is consistent with for the review of the internal

control system in all areas of the business activity and 14. The external auditors KPMG Taseer Hadi & Co.,
provides management with objective evaluations, Chartered Accountants, were allowed direct access
appraisals and recommendations on the adequacy, to the Audit Committee and necessary coordination
effectiveness and compliance with each system with internal auditors was also ensured. Major findings
reviewed. arising from audits and any matters that the external
auditors wished to highlight were freely discussed
8. Company’s internal audit function is headed by a with them.
Chartered Accountant with a team of professionals
who are suitably qualified and experienced and well 15. The Audit Committee reviewed the Management
aware of the Company’s policies and procedures. Letter issued by the external auditors and the
management response thereto. Observations were
9. Internal audit function operates under the charter discussed with the auditors and required actions
approved by the Audit Committee and head of the recorded.
internal audit function has direct access to the Audit
Committee. 16. Appointment of external auditors and fixing of their
audit fee was reviewed and the Audit Committee
10. Company’s internal audit function prepares annual following this review recommended to the Board of
plan for the financial year and a strategic audit Directors re-appointment of KPMG Taseer Hadi &
plan for following two years during which all major Co., Chartered Accountants, as external auditors for
systems and areas of activity will be audited. Annual the year 2017-2018.
and strategic audit plan is approved by the Audit
Committee.
By order of the Audit Committee
11. Internal audit reports include findings, conclusions,
recommendations and action plans agreed with
management. These are reported promptly to the
appropriate level of management. Follow up in
implementation is ensured.
12. The Audit Committee, on the basis of the internal (Zamiruddin Azar)
audit reports, reviewed the adequacy of controls Chairman, Audit Committee
and compliance shortcomings in areas audited September 13, 2017
and discussed corrective actions in the light of
management’s responses. This has ensured the
continual evaluation of controls and improved
compliance.
13. The Audit Committee ensured that statutory and

regulatory obligations and requirements of best
practices of governance have been met.

RISK AND OPPORTUNITY REPORT

OBJECTIVES:
The goal of Board of Directors is to minimize all risks and take advantage of potential opportunities in order to
systematically and sustainably improve the value of the Company for all stakeholders. Management has adopted a risk
management approach and internal control framework, based on its business philosophy and corporate objectives,
which is explained step by step below:
A. STRATEGY FORMULATION
Management reviews the Statement of Strategic Objectives annually that represent the Stakeholder’ expectations
and are the lead indicators for determining the success level of the Company. In order to materialize the
objectives, Management adopts certain strategies. These strategies are approved by the Board of Directors
and are subject to adjustment, depending upon any changes in the external business environment or internal
organizational factors.
B. RISK ASSESSMENT
Risk assessment is an on-going process that highlights numerous uncertainties that poses potential threats
which may hinder the accomplishment of objectives of the Company. If these risks are not being addressed
in timely manner, may culminate in loss. Such risks and uncertainties can arise both from external as well as
internal factors within the Company. Broad categories of risks which may hinder operations of the Company are
as follows:
Risks Type Implication
Strategic Risks Strategic risks can be defined as the uncertainties and untapped opportunities embedded
in strategic intent. These risks are key matters for the Board of Directors, and impinge on
the whole business, rather than just an isolated unit.
Commercial Risks Commercial risks refer to potential losses arising from the trading partners or the market in
which the Company operates.
Operational Risks Operational risks refer to risks resulting from breakdowns in internal procedures, people
and system.
Financial Risks Financial risk is an umbrella term for multiple types of risk associated with financing,
profitability, liquidity and credit.

C. MATERIALITY APPROACH
Management believes materiality as a key component of an effective communication with stakeholders. The
management has adopted materiality approach which is based on a combination of stakeholder engagement,
understanding of environmental limits and strategic alignment. It has made the process, assumptions and
evidence base for identifying material issues for more transparent, credible and amenable disclosures to have
more transparency on risk and opportunities.
Not being conclusive, management considers that following are the major risks which may affect the operations
of the Company and mitigating strategies for these risks.
D. RISK AND COUNTER STRATEGY MATRIX
Corporate Objective Risk Mitigation Strategies
Industry Competition: Strategic Risk: Through efficient use of marketing

To maintain Company’s Due to the significant focus of strategy, Maple Leaf is creating a pull
prominent position one the present Government on effect by locking-in its customers
of the leading brands of infrastructure and PSDP, there and also to tap potential markets.
cement industry of Pakistan. is increased potential for major
players of the industry.
Financial Risk: The Company is actively looking

Increased packing cost and into alternate sources of power
power generation cost may generation to reduce cost.
result in increase in cost of
production and squeeze
margins for the Company.
Legislative and Legal Strategic Risk: Management is proactively following

Environment: Continuous changes in the any changes occurring in the
To operate in a stable regulatory framework and regulatory framework relating to the
market being compliant statutory obligations may result cement sector.
with all relevant laws of the in non-compliance.
country and international
regulations.

Technology: Strategic Risk: Management continuously investing

To automate and upgrade Lag in production reporting considerable amounts for upgradation
supporting processes and due to different MIS platforms of technological infrastructure in
related MIS in relation to may result in delayed decision order to harmonize the MIS platform
production of cement to making for corrective actions. throughout the Company.
speed up such activities.
Operations: Operational Risk: To avoid such stoppages, a reliability

To ensure continuity of Machinery breakdown / centre has been established which
operations without any stoppages adversely affect the runs a number of operational checks
disruptions in production profitability of the entity as it to ensure smooth operations and
and minimize idle time. hinders production and delays avoid breakdown and Enterprise
operation. Asset Management module is in
place as the system to monitor this.
Human Capital: Operational Risk: Succession planning and capacity

To have an adequate reserve Loss of the qualified and building of existing resources are
of trained professionals competent staff. one of the primary focus of the
excelling in their respective Company.
domains.
Health and Safety: Operational Risk: A sound system of HSE is in place

To ensure health and safety Accidents can take place which for timely identification of potential
of employees in workplaces. can cause serious injuries to hazards and to remove such threats.
employees, and also cause
disruptions in operations
Logistics: Commercial Risk: Adequate stock levels have been

To ensure availability of coal Due to dependency on Pakistan maintained with provision of such
for uninterrupted operations. Railways for coal transportation, incidents in mind.
delays can occur owing to
strikes or railway breakdown..

Finance: Financial Risk: Management has addressed

To maintain strong financial Increase in the cost of the risk of shortage of working
capital by availing sufficient lines
position and produce borrowing may adversely affect from the diversified financial
financial performance which the profitability of the Company. institutions in order to meet the
is reflective of the Company’s short term finance requirements
scale of business and Payment defaults by counter of the company. Moreover
Shareholders’ expectations parties may leave the Company average credit period of the
Company is also being improved
with inadequate resources for along with improved operation
discharging its own liabilities. cycle.
Strong follow up and adherence

to procedures and credit terms
ensures that the risk of default
from counter parties is kept to
a minimum. Adequate steps are
taken for any dispute that may
arise.
E. OPPORTUNITY ANALYSIS
Unlocking and exploiting operational opportunities is an important aspect of MLCF entrepreneurial activities. We
are committed to use existing products and new solutions in order to systematically enhance our growth and
strengthen our position in global markets. Investing in new projects and increasing the productivity of existing ones
are key elements for future organic growth. In the year under review, we strengthened the basis for further growth
in the coming years by making selective investments in our existing businesses and developing innovations that
support in achievement of company’s stated vision.
SHARE PRICE SENSITIVITY ANALYSIS
Company’s share price is directly linked with the operational and financial performance of Company. Following are
the major factors which might affect the share price of the company in the stock exchanges.
1) INCREASE IN DEMAND:
Increase in demand of cement may result in increase in market price of bag which will contribute towards better
profitability and Earning per Share (EPS), which will ultimately increase the share price.
2) INCREASE IN VARIABLE COST:
Any increase in variable cost (Mainly includes Coal, Power and Raw Material Cost) may badly effect the gross
margins and will exultancy fall in the profitability and all in EPS. This may badly affect the market price of the share
downward.


3) INCREASE IN FIXED COST:
Fixed cost which mainly consists of financial charges, exchange losses, and other overheads. If SBP Discount
rate goes up, rupee devaluation occurs and increase in inflation happens than net profitability of the company
will be affected and will have negative effect on the EPS which results into fall in share prices. If the said factors
happen on the positive sides than share price will improve.
4) CHANGE IN GOVERNMENT POLICIES:
Any change in Government policies related to cement sector may affect the share price of the company. If policy
change is positive than share price will increase, otherwise vice versa.
BUSINESS FINANCIAL FORECAST
The Company expects local dispatches to further improve in coming period due to increase in demand of cement for
public sector projects and construction activities in the private sector. Oil and coal prices are expected to rise slightly
in the future which will affect profitability. The Company is working actively on the establishment of its coal fired power
plant which is expected to reduce the power cost. Reduction in the Company’s weighted average borrowing costs
should also improve the profitability. Based on management’s best estimates, future consolidated financial forecast of
MLCF and its wholly owned subsidiary MLPL are as follows:
Financial Year 2017-2018 2018-2019
Sales – net 26,120 30,131
Profits after taxation 5,505 7,090
EPS (Rupees) 9.27 11.94
Paid up Share Capital 5,937 5,937
FAIR VALUE OF PROPERTY, PLANT AND EQUIPMENT
The Company’s buildings on freehold land, roads, bridges and railway sidings and plant and machinery are stated at
revalued amount being the fair value at the date of revaluation less any subsequent accumulated depreciation and
impairment losses as per stated company policy. Freehold land is stated at revalued amount being the fair value at the
date of revaluation less any subsequent impairment loss in the financial statements.
SUMMARY OF SIGNIFICANT / MATERIAL ASSETS OR IMMOVABLE PROPERTY
The Company’s material assets comprise of land, building, three complete cement lines (including one white cement
line) comprising of kiln, cooler, preheater, raw mills etc., Wartsila, Nigatta engines and waste heat recovery plant.

CALENDAR OF NOTABLE EVENTS
JULY 2016 - JUNE 2017
21-Jan
2017
Maple Families
Hungama
21-Mar
2017
11-13-Nov 23-Dec World Forest
Day (Maple
5-Sep 2016 2016 15-Feb Plantation Day)
Christmas
2016 Team Culture
Motivational Celebrations 2017
Issuance of Trip (HO & Plant)
New Line 25-Apr
Annual Report Ground Breaking
2016 Ceremony 2017
3rd Qtr
results
25-Oct 16-Feb
2016 10-Dec 2017 22-Mar 24-May
24-Aug Qtr 1 Results 2016 21-22-Jan Half yearly
Results
2017 2017
2016
Mehfil-e-Milad 2017 World Water
Day Movie Night for
Maple Branding Head Office
Maple Leaf Police Staff
Rest House Session
Inauguration
(Mianwali)
31-Oct 16-Feb 29-Apr

1st-Jan 2017 2017
2016
Annual General 2017 Interim Dividend
declared @
Maple LA LA
Night for
Meeting Maple Safety Rs.2/share Families
Week
14-Aug
5-Jun
2016
Independence 2017
Day World
Celebrations Environment
Day

ORGANIZATION CHART
Executive Director Executive Director Executive Director

Marketing Plant Operations Finance

DEFINITIONS AND GLOSSARY OF TERMS
Gross Profit Ratio current liabilities: the higher above 1, is a widely followed measure of
the better. profitability, thus the higher the
The relationship of the gross profit number the better. As long as a
made for a specified period and the Debt-Equity Ratio company’s ROA exceeds its interest
sales or turnover achieved during rate on borrowing, it’s said to have
that period. The ratio of a company’s liabilities positive financial leverage.
to its equity. The higher the level
Net Profit Ratio of debt, the more important it is Return on Equity (ROE)
for a company to have positive
Net profit ratio is the ratio of net profit earnings and steady cash flow. For A percentage that indicates how
(after taxes) to net sales. comparative purposes, debt-equity well common stockholders’ invested
ratio is most useful for companies money is being used. The percentage
Operating Profit Ratio within the same industry. is the result of dividing net earnings
by common stockholders’ equity.
The operating profit margin ratio Earnings per Share (EPS) The ROE is used for measuring
indicates how much profit a company growth and profitability. You can
makes after paying for variable costs The portion of a company’s profit compare a company’s ROE to the
of production. allocated to each outstanding share ROE of its industry to determine how
of common stock. Earnings per a company is doing compared to its
Current Asset Ratio share serve as an indicator of a competition.
company’s profitability.
The key indicator of whether you Return on Investment (ROI)
can pay your creditors on time. Profit Margin
The relationship between current Also known as return on invested
assets like cash, book debts, stock Determined by dividing net income capital (ROIC). ROI is a measure of
and work in progress and current by net sales during a time period how well management has used
liabilities like overdraft, trade and and is expressed as a percentage. the company’s resources. ROI is
expense creditors and other current Net profit margin is a measure of calculated by dividing earnings by
debt. efficiency and the higher the margin, total assets. It is a broader measure
the better. Trends in margin can be than return on equity (ROE) because
Current Ratio attributed to rising/falling production assets include debt as well as equity.
costs or rising/falling price of the It is useful to compare a company’s
A company’s current assets divided goods sold. ROI with others in the same industry.
by its current liabilities. This ratio
gives you a sense of a company’s Return on Assets (ROA)
ability to meet short-term liabilities,
and is a measure of financial strength The amount of profits earned (before
in the short term. A ratio of 1 implies interest and taxes), expressed as
adequate current assets to cover a percentage of total assets. This

92
Maple Leaf Cement
Horizontal Analysis - Six Years
2017 17 vs 16 2016 16 vs 15 2015 15 vs 14 2014 14 vs 13 2013 13 vs 12 2012 12 vs 11

Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ %
Balance Sheet
Total equity 19,384,152 15.73 16,749,880 29.73 12,911,658 32.43 9,749,577 43.99 6,770,913 76.84 3,828,861 22.20
Total surplus on revaluation
of fixed assets 4,323,909 (5.74) 4,587,255 (3.45) 4,751,082 (2.87) 4,891,515 (3.17) 5,051,836 (4.66) 5,298,809 (4.49)
Total non-current liabilities 7,344,681 29.82 5,657,496 4.50 5,414,116 (46.59) 10,137,641 (15.39) 11,981,790 (7.80) 12,995,935 (11.31)
Total current liabilities 7,764,031 54.44 5,027,065 (38.28) 8,144,461 14.19 7,132,572 (16.76) 8,568,551 (19.20) 10,604,368 2.41
Total equity and liabilities 38,816,773 21.22 32,021,696 2.56 31,221,317 (2.16) 31,911,305 (1.43) 32,373,090 (1.08) 32,727,973 (2.86)
Total non-current assets 28,405,142 20.65 23,543,989 (1.00) 23,782,112 (3.97) 24,765,860 (3.60) 25,690,184 (4.29) 26,841,888 (5.07)
Total current assets 10,411,631 22.81 8,477,707 13.96 7,439,205 4.11 7,145,445 6.92 6,682,906 13.54 5,886,085 8.71
Total assets 38,816,773 21.22 32,021,696 2.56 31,221,317 (2.16) 31,911,305 (1.43) 32,373,090 (1.08) 32,727,973 (2.86)
Profit and Loss Account

Sales - net 23,992,079 2.39 23,432,696 13.09 20,720,054 9.23 18,968,547 9.28 17,357,376 12.26 15,461,356 18.27
Cost of sales (14,509,777) 8.20 (13,410,564) 1.41 (13,224,431) 6.26 (12,445,562) 10.02 (11,312,341) (1.17) (11,446,583) 5.03
Gross profit 9,482,302 (5.39) 10,022,132 33.71 7,495,623 14.91 6,522,985 7.91 6,045,035 50.57 4,014,773 84.57
Distribution cost (1,275,182) (6.23) (1,359,896) 3.52 (1,313,696) 24.60 (1,054,336) 32.16 (797,751) (5.71) (846,098) (48.62)
Administrative expenses (621,076) 27.80 (485,959) 27.43 (381,363) 28.54 (296,689) 16.78 (254,065) (1.69) (258,433) 11.98
Other operating expenses (536,369) (18.69) (659,631) 150.63 (263,187) 33.35 (197,372) 18.02 (167,239) 11.73 (149,681) (7.83)
Other operating income 139,030 281.99 36,396 (21.17) 46,173 (42.70) 80,585 95.18 41,287 21.18 34,070 (92.43)
Profit from operations 7,188,705 (4.82) 7,553,042 35.27 5,583,550 10.45 5,055,173 3.86 4,867,267 74.16 2,794,631 377.31
Finance cost (318,349) (26.90) (435,504) (59.77) (1,082,639) (26.09) (1,464,772) (14.07) (1,704,652) (27.48) (2,350,565) 8.50
Profit before taxation 6,870,356 (3.47) 7,117,538 58.14 4,500,911 25.36 3,590,401 13.53 3,162,615 612.19 444,066 (128.09)
Taxation (2,093,275) (6.26) (2,232,953) 113.35 (1,046,616) 37.67 (760,227) (1,324.59) 62,080 19.09 52,128 (127.71)
Profit after taxation 4,777,081 (2.20) 4,884,585 41.41 3,454,295 22.05 2,830,174 (12.23) 3,224,695 549.89 496,194 (128.05)
Vertical Analysis - Six Years
2017 2016 2015 2014 2013 2012
Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ % Rs. ‘000’ %
Balance Sheet
Total equity 19,384,152 49.94 16,749,880 52.31 12,911,658 41.36 9,749,577 30.55 6,770,913 20.92 3,828,861 11.70
Total surplus on revaluation
of fixed assets 4,323,909 11.14 4,587,255 14.33 4,751,082 15.22 4,891,515 15.33 5,051,836 15.61 5,298,809 16.19
Total non-current liabilities 7,344,681 18.92 5,657,496 17.67 5,414,116 17.34 10,137,641 31.77 11,981,790 37.01 12,995,935 39.71
Total current liabilities 7,764,031 20.00 5,027,065 15.70 8,144,461 26.09 7,132,572 22.35 8,568,551 26.47 10,604,368 32.40
Total equity and liabilities 38,816,773 100.00 32,021,696 100.00 31,221,317 100.00 31,911,305 100.00 32,373,090 100.00 32,727,973 100.00
Total non-current assets 28,405,142 73.18 23,543,989 73.53 23,782,112 76.17 24,765,860 77.61 25,690,184 79.36 26,841,888 82.02
Total current assets 10,411,631 26.82 8,477,707 26.47 7,439,205 23.83 7,145,445 22.39 6,682,906 20.64 5,886,085 17.98
Total assets 38,816,773 100.00 32,021,696 100.00 31,221,317 100.00 31,911,305 100.00 32,373,090 100.00 32,727,973 100.00
Profit and Loss Account

Sales - net 23,992,079 100.00 23,432,696 100.00 20,720,054 100.00 18,968,547 100.00 17,357,376 100.00 15,461,356 100.00
Cost of sales (14,509,777) (60.48) (13,410,564) (57.23) (13,224,431) (63.82) (12,445,562) (65.61) (11,312,341) (65.17) (11,446,583) (74.03)
Gross profit 9,482,302 39.52 10,022,132 42.77 7,495,623 36.18 6,522,985 34.39 6,045,035 34.83 4,014,773 25.97
Distribution cost (1,275,182) (5.32) (1,359,896) (5.80) (1,313,696) (6.34) (1,054,336) (5.56) (797,751) (4.60) (846,098) (5.47)
Administrative expenses (621,076) (2.59) (485,959) (2.07) (381,363) (1.84) (296,689) (1.56) (254,065) (1.46) (258,433) (1.67)
Other operating expenses (536,369) (2.24) (659,631) (2.82) (263,187) (1.27) (197,372) (1.04) (167,239) (0.96) (149,681) (0.97)
Other operating income 139,030 0.58 36,396 0.16 46,173 0.22 80,585 0.42 41,287 0.24 34,070 0.22
Profit from operations 7,188,705 29.96 7,553,042 32.23 5,583,550 26.95 5,055,173 26.65 4,867,267 28.04 2,794,631 18.07
Finance cost (318,349) (1.33) (435,504) (1.86) (1,082,639) (5.23) (1,464,772) (7.72) (1,704,652) (9.82) (2,350,565) (15.20)
Profit before taxation 6,870,356 28.64 7,117,538 30.37 4,500,911 21.72 3,590,401 18.93 3,162,615 18.22 444,066 2.87
Taxation (2,093,275) (8.72) (2,232,953) (9.53) (1,046,616) (5.05) (760,227) (4.01) 62,080 0.36 52,128 0.34
Profit after taxation 4,777,081 19.91 4,884,585 20.85 3,454,295 16.67 2,830,174 14.92 3,224,695 18.58 496,194 3.21
Annual Report 2017

93

SUMMARY OF CASH FLOW

STATEMENT - SIX YEARS
2017 2016 2015 2014 2013 2012
Cash generated from operations before
working capital changes 9,573,733 10,042,012 7,673,904 6,987,258 6,578,095 4,495,054
Changes in working capital
Stores, spare parts and loose tools (1,366,836) (1,199,205) (370,709) (21,417) (685,476) (68,997)
Stock-in-trade (428,415) 320,681 (123,798) (252,033) (35,504) (364,311)
Trade debts (105,665) (2,867) 245,909 (86,152) (190,327) (55,898)
Loans and advances (12,949) 180,084 (77,742) (745,805) 19,464 (36,107)
Trade and other payables 28,381 (430,056) (309,606) 306,320 (688,335) (425,593)
Due from subsidiary - - - - - 383,934
Other receivables 69,131 (212,056) (32,637) 68,614 26,530 (80,961)
Retirement benefits adjusted / (paid) (27,256) (23,023) (17,963) (21,737) (11,242) 952
Workers’ Profit Participation Fund paid - (89,119) (71,867) (57,301) - -
Workers’ Welfare Fund paid (112,622) - - - - -
Taxes paid (1,989,248) (632,781) (326,386) (238,857) (14,127) (158,071)
Others (4,444) 18,260 (17,362) 296 43,467 3,088
Net Cash generated from operating activities 5,623,810 7,971,930 6,571,743 5,939,186 5,042,545 3,693,090
Fixed capital expenditure (2,917,312) (1,106,002) (786,684) (768,756) (496,784) (207,108)

Intangible asset purchased (29,032) - - - - -
Proceeds from sale of property, plant and equipment 195,191 56,327 70,267 12,696 5,282 2,287
Redemption of long term investments - - 1,625 - 1,412 (3,037)
Dividend received - - - - 448 384
Proceeds from disposal of short term investments - - - - 8,455 2,450
Acquisition of short term investments (15,000) - - - - (15,000)
Long term investment (4,010,000) (660,000) - - - -
Profit on bank deposits received 16,628 14,191 15,848 11,844 - -
(Increase) / decrease in long term deposits (607) (809) (1,045) 733 (1,396) (1,285)
Net Cash used in investing activities (6,760,132) (1,696,293) (699,989) (743,483) (482,583) (221,309)
Drawdown of long term loans from

banking companies- Secured - net 2,176,462 771,484 (397,744) (1,674,205) (613,591) (101,874)
Repayment of redeemable capital - secured - (3,433,011) (2,854,714) (1,032,869) (1,067,131) (6,800)
Repayment of syndicated term finance - secured - (433,500) (762,500) (183,125) (117,875) (1,200)
Payment of liabilities against assets subject to
finance lease - net (164,614) (132,746) (108,574) (152,545) (134,768) (55,556)
Acquisition / repayment of short term borrowings 1,467,065 (1,065,150) 323,981 (322,891) (770,120) (835,282)
Finance cost paid (255,224) (483,813) (1,123,209) (1,646,567) (2,053,219) (2,296,662)
Redemption of preference shares (478) - (20) (163,780) (362,903) -
Dividend paid (2,315,788) (1,283,026) (524,391) (20) (179,253) (1)
Others 2,200 (120) (260) (150) 810 650
Net cash generated from / (used in ) financing activities 909,623 (6,059,882) (5,447,431) (5,176,152) (5,298,050) (3,296,725)
Net increase / (decrease) in cash and cash equivalents (226,699) 215,755 424,323 19,551 (738,088) 175,056
Cash and cash equivalents at beginning of the years 384,767 169,012 (255,311) (274,862) 463,226 288,170
Cash and cash equivalents at end of the years 158,068 384,767 169,012 (255,311) (274,862) 463,226

COMMENTS ON SIX YEARS ANALYSIS
HORIZONTAL ANALYSIS to sales in 2010-11 whereas cost of also has increased except in 2016-
sales increased by merely 26.8% 17 where its proportion decreased
Balance Sheet depicting effectiveness of cost by 2.37% when compared to the
The Company’s equity has increased control measures implemented by last year due to increase in current
again this year owing to healthy management. These measures liabilities to meet the working capital
profits. Company’s current liabilities along premium sale price charged on requirements. Equity closed at
increased during the year owing account of quality cement product 49.9% of the equity and liabilities
increased short-term borrowing to has resulted in overall increase in side.
meet working capital requirements. gross profit. Rise in HFO and coal
Long term liabilities were on a price has caused the cost of sales Due to nature of industry, a capital-
declining trend till financial year 2014- for the year 2016-17 to increase by intensive sector, ratio of non-current
15, however, to partially finance the 8.2% as compared to last year. assets to total assets remained in
newly constructed power project, the range of 73% to 82% as evident
additional funds were drawn down in The Company paid off its debts at from last 6 years reported figures. On
reporting year 2015-16 and 2016-17 an accelerated pace and paid off account of new investment in wholly-
last quarter triggered an increase. its loans prior to scheduled dates owned subsidiary, non-current
which resulted in enormous savings assets have increased during the
Increase in long-term assets of the in finance cost. Finance costs year 2016-17 in rupee terms. The
Company pertains to investment in continued to show a significantly proportion of current asset vs. non-
MLPL, wholly owned subsidiary of declining trend over the last 6 years. current assets remained almost the
the Company and partially relates Finance cost decreased by 26.9% in same during last two years due to
to CWIP reflecting progress on new current year 2016-17 in comparison increase in current asset meeting the
production line. Whereas, no other to last year. higher operational levels.
major addition was made during the
year. Current assets increased on Tax component charged to profit Profit & Loss Account
account of increased working capital & loss has increased mainly due As a strategic decision, the
requirements to support higher to increase in profitability coupled Company targeted savings in its
operational levels. with imposition of super tax @ 3% cost of production and achieved a
on company’s profit, introduced substantial reduction as is evident
Profit & Loss Account in Finance Act 2015 and is still in the gross profit ratio 39.52%
Quantitative growth along applicable. logged in 2016-17 despite pressure
incremental prices has continued to on earning due to rising production
contribute to the overall increase in VERTICAL ANALYSIS cost. This YoY increase during last
net sales during last 6 years mainly 2 years has also helped in boosting
on account of economic upcycle Balance Sheet the operating profit which ended
resulting in lucrative domestic The equity of the Company up at 30% in 2016-17, the second
market. Sales in financial year 2016- continued to improve on account highest operating profit after 32.23%
17 increased by 55.2% as compared of healthy profits, its weightage last year.

The above results also impacted the profit before tax as a percentage of sales which decreased to close at 19.9% in
year 2016-17, again the second highest during the last 6 years after 20.85% reported for 2015-16. The Company has
achieved this performance on account of better cost control measure and increased sales volumes.
COMMENTS ON CASH FLOW STATEMENTS
The Company has turned around its operations since 2012 and cash flows from operations have been on the rise. Due
to very good profits, the Company has generated high cash flows from operations on account of high sales and low
costs. Cash generated from operations is consistent with operational profitability, however, record component of taxes
paid during the current financial year on account of utlization of all available tax credits and absorption of carried forward
tax losses by 2015-16 has affected the cash generated from operations for 2016-17.
The major change in investing activity is the investment of the Company in its wholly owned subsidiary i.e. Maple Leaf
Power Limited. The amount of investment for the financial year was Rs. 4,010 million.
Increase in financing activities is on account of drawdown from banks to partially meet the power project financing.
Meeting the shareholders’ dividend expectations on account of increasing profitability, the company has paid Rs. 2,316
million as cash dividend during the year 2016-17 being the highest ever dividend distribution in the Company history.

ANALYSIS OF FINANCIAL RATIOS
For Six Years from Year 2012 to Year 2017
Ratios Description 2017 2016 2015 2014 2013 2012
Profitability Ratios:
Gross profit ratio 39.52% 42.77% 36.18% 34.39% 34.83% 25.97%
Net profit to sales 19.91% 20.85% 16.67% 14.92% 18.58% 3.21%
EBITDA Margin to Sales 40.00% 42.45% 37.91% 37.65% 39.34% 30.37%
Operating leverage ratio -2.02 2.69 1.13 0.42 6.05 20.65
Return on equity 24.64% 29.16% 26.75% 29.03% 47.63% 12.96%
Return on capital employed 23.47% 29.02% 20.87% 16.47% 20.45% 3.27%
Effective tax rate 30.47% 31.37% 23.25% 21.17% -1.96% -11.74%
Liquidity Ratios:
Current ratio 1.34 1.69 0.91 1.00 0.78 0.56
Quick / acid test ratio 0.30 0.44 0.25 0.31 0.23 0.18
Cash to current liabilities 0.05 0.08 0.03 0.03 0.06 0.04
Cash flow from operations to sales 0.23 0.34 0.32 0.31 0.29 0.24
Investment / Market Ratios:

Earnings Per Share (EPS)
Basic 9.05 9.26 6.55 5.36 6.11 0.84
Diluted 9.05 9.26 6.55 5.36 6.11 0.83
Price earnings ratio 12.30 11.40 12.00 5.60 3.59 5.49
Market value per share
Closing 111.36 105.51 78.56 30.05 21.93 4.63
High 139.89 109.25 84.30 30.25 22.54 4.83
Low 86.15 65.50 24.31 29.80 21.80 4.60
Break up value per share
With revaluation surplus 44.92 40.43 33.47 27.74 22.40 17.30
Without revaluation surplus 36.73 31.74 24.47 18.47 12.83 7.26
Cash dividend per share 3.75 4.00 2.00 - - -
Dividend pay out ratio 41.43% 43.22% 30.56% 0.00% 0.00% 0.00%
Dividend yield ratio 3.37% 3.79% 2.55% 0.00% 0.00% 0.00%
Dividend cover ratio 2.41 2.31 3.27 - - -
Capital Structure Ratios:

Financial leverage ratio 0.35 0.18 0.57 1.18 2.24 4.45
Weighted average cost of debt 5.86% 7.04% 10.02% 10.46% 10.94% 13.09%
Net Borrowing / EBITDA 0.69 0.28 0.96 1.67 2.25 3.74
Av. operating working capital to sales ratio 26.75% 19.05% 13.82% 11.21% 0.70% -3.51%
Debt to equity ratio 16:84 9:91 27:73 48:52 64:36 78:22
Interest cover ratio 22.58 17.34 5.16 3.45 2.86 1.19
Activity / Turnover Ratios:

Inventory turnover ratio 13.35 12.90 11.22 11.91 12.28 15.87
No. of days in inventory 27.34 28.30 32.54 30.65 29.72 23.00
Debtor turnover ratio 38.10 40.84 29.40 23.76 26.03 27.22
No. of days in receivables 9.58 8.94 12.42 15.36 14.02 13.41
Total assets turnover ratio 0.62 0.73 0.66 0.59 0.54 0.47
Fixed assets turnover ratio 1.01 1.03 0.87 0.77 0.68 0.58
Creditor turnover ratio 19.85 15.18 11.95 10.75 8.07 6.27
No. of days in creditors 18.39 24.05 30.53 33.96 45.21 58.17
Operating cycle 18.54 13.18 14.42 12.06 -1.47 -21.76

COMMENTS ON RATIO ANALYSIS

Profitability Ratios – The profitability ratios have seen an upward trend owing to higher margins on
account of increased sales and reduced costs except in year 2016-17 where increase in non-controllable
production cost has undermined the increase in sales volume. The said increase in production cost has
also reduced the EBITDA margin for current year which was recording an upward trend. After a slight
decline, the Company has reported a healthy EBTDA margin of 40% for the current year depicting a
clear reflection of continued operational efficiency of the Company.
Liquidity Ratios – Current ratio for the year 2016-17 is reported at 1.34 in comparison to 1.69 last year.
Increased working capital cycle, on account of enhanced operations has caused current ratio including
other liquidity ratios to move slightly down.
Investment / Market Ratios – Increase in profitability during the last 6 years has translated into increased
EPS. EPS for the year 2016-17 closed 9.05, the second highest reported during the last 6 year period.
Last year reported EPS was 9.26. The Company’s market share price remained in the range of Rs.
86.16 to Rs. 139.86, closing at Rs. 111.36 in comparison to Rs. 105.51 at the close of last year. This
shows the trust of the general market in the Company. The breakup value has also moved positively on
account of better operational performance.
Capital Structure Ratios – the Company is operating at optimal level of debt-equity mix. Relying mainly
on internal cash generation to maximize shareholders’ return. The results of this strategy are evident
from improving trend in interest cover ratio, interest cover ratio for the year 2016-17 is 22.58%.
Activity / Turnover Ratios – Turnover ratios have shown a positive trend during the last 6 years, which
shows that the Company is recovering cash from customers, maintaining inventories at optimum level
and also paying off creditors quickly. Higher sales also mean that the Company has managed to rotate
its inventory at a faster pace.

DUPONT ANALYSIS
Years Return on Equity Profit Margin Total Asset Turnover Return on Assets Equity Multiplier
(Profit Margin * Total (Pre Tax Profit / (Sales / ( Avg. Assets /
Asset Turnover*
Equity Multiplier)
Sales) Avg. Assets) Avg. Equity)
E= C*D A B C= A*B D
2017 30.50% 0.29 0.68 19.40% 1.57

2016 36.50% 0.30 0.74 22.51% 1.62
2015 27.87% 0.22 0.66 14.26% 1.95
2014 27.13% 0.19 0.59 11.17% 2.43
2013 30.19% 0.18 0.53 9.72% 3.11
2012 4.99% 0.03 0.47 1.34% 3.73
Following are the DuPont analysis Conclusion:

highlights: 4. Better operations have led
to higher profits which have The DuPont analysis confirms that
1. Better operational results have inflated the equity. Thus the the Company is on the right track to
yielded better profit margins equity multiplier continues to
achieve the objective of increasing
based on increased sales and decrease as the base figure
reduced variable cost, which increases. value to all its stakeholders with
has increased the profit margin margins at a record high.
percentage.
2. Assets turnover has continued

the upward trend which shows
continued improvement in
utilization of assets to generate
the sales and also higher sales
volume.
3. Based on the above two

factors, the Return on Assets
which is dependent on the
above two factors, has also
gone up sharply.


KEY OPERATING AND FINANCIAL DATA

For Six Years from Year 2011-12 to Year 2016-17
2016-17 2015-16 2014-15 2013-14 2012-13 2011-12
Quantitative Data (M. Tons)
Cement:
Production 3,341,970 3,340,410 3,005,456 2,753,142 2,715,643 2,648,643
Sales 3,364,402 3,340,324 2,960,501 2,740,901 2,687,911 2,649,092
Sales (Rs. 000)

Gross Sales 31,799,079 28,890,304 25,393,341 23,263,584 20,671,865 18,677,240
Less:
Excise Duty 2,931,708 1,194,966 935,201 838,618 820,596 983,313
Sales Tax 4,764,821 4,144,108 3,590,939 3,324,741 2,361,879 2,103,135
Commission 110,471 118,534 147,147 131,678 132,014 129,436
Net Sales 23,992,079 23,432,696 20,720,054 18,968,547 17,357,376 15,461,356
Profitability (Rs. 000)

Gross Profit/(Loss) 9,482,302 10,022,132 7,495,623 6,522,985 6,045,035 4,014,773
Profit/(Loss) Before Tax 6,870,356 7,117,538 4,500,911 3,590,401 3,162,615 444,066

Provision for Income Tax (2,093,275) (2,232,953) (1,046,616) (760,227) 62,080 52,128
Profit/(Loss) After Tax 4,777,081 4,884,585 3,454,295 2,830,174 3,224,695 496,194
Financial Position (Rs. 000)

Tangible Fixed Assets-Net 23,647,663 22,822,494 23,720,541 24,705,782 25,630,205 26,774,317
Other Non-Current Assets 4,757,479 721,495 61,571 60,078 59,979 67,571
28,405,142 23,543,989 23,782,112 24,765,860 25,690,184 26,841,888
Current Assets 10,411,631 8,477,707 7,439,205 7,145,445 6,682,906 5,886,085

Current Liabilities (7,764,031) (5,027,065) (8,144,461) (7,132,572) (8,568,551) (10,604,368)
Net Working Capital 2,647,600 3,450,642 (705,256) 12,873 (1,885,645) (4,718,283)
Capital Employed 31,052,742 26,994,631 23,076,856 24,778,733 23,804,539 22,123,605

Less: Non Current Liabilities (7,344,681) (5,657,496) (5,414,116) (10,137,641) (11,981,790) (12,995,935)
Shareholders’ Equity 23,708,061 21,337,135 17,662,740 14,641,092 11,822,749 9,127,670
Represented By: (Rs. 000)

Share Capital 5,277,340 5,277,340 5,277,340 5,277,340 5,277,340 5,805,603
Reserves & Un-appropriated Profit 14,106,812 11,472,540 7,634,318 4,472,237 1,493,573 (1,976,742)
Surplus on Revaluation of PPE 4,323,909 4,587,255 4,751,082 4,891,515 5,051,836 5,298,809
23,708,061 21,337,135 17,662,740 14,641,092 11,822,749 9,127,670

STATEMENT OF CASH FLOWS
DIRECT METHOD 2017 2016
Cash flows from operating activities
Cash receipts from customers 23,886,414 23,429,829
Cash paid to suppliers and employees 16,133,307 14,713,861
Net Cash generated from operations 7,753,107 8,715,968

(Increase) / decrease in long term loans to employees (171) 885
Retirement benefits paid (27,256) (23,023)
Workers’ profit participation fund paid - (89,119)
Workers’ welfare fund paid (112,622) -
Taxes paid (1,989,248) (632,781)
Net cash generated from operating activities 5,623,810 7,971,930

Cash flows from investing activities
Capital expenditure (2,917,312) (1,106,002)
Intangible asset purchased (29,032) -
Proceeds from disposal of property, plant and equipment 195,191 56,327
Increase in long term deposits (607) (809)
Short term investment (15,000) -
Long term investment (4,010,000) (660,000)
Profit on bank deposits received 16,628 14,191
Net cash used in investing activities (6,760,132) (1,696,293)
Cash flows from financing activities
Drawdown of long term loans from
banking companies - secured - net 2,176,462 771,484
Redemption of redeemable capital - secured - (3,433,011)
Repayment of syndicated term finances - secured - (433,500)
Increase / (decrease) in long term deposits 2,200 (120)
Payment of liabilities against assets subject to finance lease - net (164,614) (132,746)
Acquisition / (repayment) of short term borrowings 1,467,065 (1,065,150)
Finance cost paid (255,224) (483,813)
Redemption of preference shares (478) -
Dividend paid (2,315,788) (1,283,026)
Net cash generated from / (used in) financing activities 909,623 (6,059,882)
Net (decrease) / increase in cash and cash equivalents (226,699) 215,755

Cash and cash equivalents at the beginning of the year 384,767 169,012
Cash and cash equivalents at the end of the year 158,068 384,767

RESULTS REPORTED IN INTERIM FINANCIAL

STATEMENTS AND FINAL ACCOUNTS
Interim Results Annual Results
3 Months Period 6 Months Period 9 Months Period Year Ended
Ended 30-09-2016 Ended 31-12-2016 Ended 31-03-2017 30-06-2017
Rupees ‘000 % Rupees ‘000 % Rupees ‘000 % Rupees ‘000 %
Net Turnover 5,556,065 11,970,137 18,293,754 23,992,079
Gross Profit 2,380,828 42.85% 5,190,532 43.36% 7,623,524 41.67% 9,482,302 39.52%
Operating Profit 1,740,753 31.33% 3,941,558 32.93% 5,882,431 32.16% 7,188,705 29.96%
Net Profit Before Tax 1,694,687 30.50% 3,837,752 32.06% 5,696,679 31.14% 6,870,356 28.64%
Net Profit After Tax 1,223,410 22.02% 2,694,115 22.51% 4,051,886 22.15% 4,777,081 19.91%
Debt Equity Ratio 1,691,680 09:91 2,540,449 12:88 3,355,330 15:85 3,584,375 16:84
19,730,167 20,787,418 21,960,260 22,968,527
Current Ratio 9,968,997 1.79 9,900,242 1.58 11,376,690 1.38 10,411,631 1.34
5,565,537 6,258,095 8,219,675 7,764,031
Analysis of Variation in Results reduction in distribution cost on

Reported in Interim Financial account of less branding activities in 6 Months Ended December 31,
Statements with the Final Accounts 1st quarter. 2016
3 Months Ended September 30, Net Profit After Tax was 22.02% Gross Profit Ratio was 43.36%
2016 as compared to 19.91% in annual as compared to annual GP of
due to high Profit Before Tax in 1st 39.52%, mainly due to better sales
Gross Profit Ratio for the 1st Quarter quarter and provision of super tax @ performance in first half year on
was 42.85% as compared to annual 3% in annual. account of increased demand in
GP of 39.52%, mainly due to lower local market. However, low sales
coal and furnace oil rates and Debt Equity Ratio was 09:91 in first demand in 2nd half year, increase in
relatively high sale prices. quarter as compared to 16:84 in coal rates in international market and
annual, mainly due to drawdown annual plant maintenance cost in 2nd
Operating Profit was 31.33% as of debt over the year for capital half resulted the overall reduction in
compared to 29.96% in annual investment. annual Gross Profit Ratio.
mainly due to high GP in 1st quarter.
Current ratio was 1.79 as compared Operating Profit was 32.93% as
Net Profit Before Tax was 30.50% as to annual of 1.34, due to extra compared to 29.96% in annual
compared to annual 28.64%, mainly balance of current maturities of long mainly due to high gross profit, low
due to high GP %age in 1st quarter term debts in annual falling due in distribution and finance cost in first
and due to reduction in finance cost next twelve months and increase half.
on account of reduction in mark in short term borrowings due to
up due to lower debt and due to working capital requirements.

Net Profit Before Tax was 32.06% as compared to annual 28.64% due to high gross profit percentage on account of
controlled input cost during first half of financial year 2017.
Net Profit After Tax was 22.51% as compared to 19.91% in annual because of higher provision of income tax at annual
on account of super tax @ 3%.
Debt Equity Ratio was 12:88 in first half year as compared to 16:84 in annual, mainly due to disbursement of loans later
in the year as needed for capital investment.
Current ratio was 1.58 as compared to annual of 1.34 mainly due to increased current maturity in annual on account of
long term debts and due to increase in short term borrowings on account of working capital needs.
9 Months Ended March 31, 2017
Gross Profit Ratio was 41.67% as compared to annual GP of 39.52%. Main contributing factor to lower gross profit in
last quarter was less demand of cement in local market due to adverse weather and political conditions that resulted the
drop in sales prices and volumes. Further, the rise in coal rates in international markets adversely affected the annual GP.
Operating Profit was 32.16% as compared to 29.96% in annual mainly due to increase in distribution cost in last quarter
on account of more branding activities. Further, increase in finance cost on account of loan disbursements resulted
lower annual operating profit as compared to first nine months.
Net Profit Before Tax was 31.14% as compared to annual 28.64% mainly due to low gross profit and high distribution
and finance cost in last quarter.
Net Profit After Tax was 22.15% as compared to 19.91% in annual mainly due to low profit before tax and provision of
super tax in last quarter.
Debt Equity Ratio was 15:85 as compared to 16:84 in annual because of disbursement of loans in 4th quarter.
Current ratio was 1.38 as compared to annual of 1.34 due to increase in short term borrowings and current maturity in
annual.

STATEMENT OF VALUE ADDED AND

HOW DISTRIBUTED
2017 2016
Rs. (000) % age Rs. (000) % age
Wealth Generated
Sales net of commission 31,688,608 99.56% 28,771,770 99.87%

Other Operating Income 139,030 0.44% 36,396 0.13%
31,827,638 100.00% 28,808,166 100.00%

Distribution of Wealth
Cost of Sales (excluding employees’ remuneration) 13,654,328 42.90% 12,722,885 44.16%
Marketing, Selling & Administration expenses 2,064,105 6.49% 2,232,010 7.75%
To Employees as remuneration 1,202,917 3.78% 944,164 3.28%
To Government as taxes 9,789,804 30.76% 7,572,027 26.28%
To Providers of Capital as dividend 2,374,803 7.46% 1,319,335 4.58%
To Providers of Finance as financial charges 318,349 1.00% 435,504 1.51%
To Society / Donations 21,054 0.07% 16,991 0.06%
Retained within the business 2,402,278 7.55% 3,565,250 12.38%
31,827,638 100.00% 28,808,166 100.00%

Statement of Charity 2017 2016
Rs. (000) Rs. (000)
Police Welfare Middle School 8,150 -

DHQ Hospital Mianwali 3,832 -
District Public School Sargodha 2,334 -
Gulab Devi Chest Hospital 2,088 -
Daud Khel Health care Centre 1,124 -
Jahanara Memorial Trust 1,000 -
Miscellaneous donations in the form of cement 1,457 993
Aitchison College 500 -
Tariq Niazi Hocky Stadium 169 -
Starfall Foundation 100 -
Bushra Shaheen 300 25
Pakistan Air Force (PAF) Mianwali - 1,402
Punjab Institute of Cardiology (PIC) Lahore - 10,000
Police Line Mianwali - 2,600
Civil Hospital Mianwali - 1,971
21,054 16,991

Graphical Presentation - Stakeholders’ Information
Market Ratios Profitability Ratios
Liquidity Ratios Turnover Ratios
Capital Structure Ratios Return on Equity and Capital
CASH GENERATED / UTILIZED

Graphical Presentation - Stakeholders’ Information
Horizontal Analysis - Balance Sheet Horizontal Analysis - Profit & Loss Account
Equity and Equity and

Liabilities-2017 Liabilities-2016
Assets-2017 Assets-2016
P & L- 2017 P & L- 2016

PATTERN OF SHAREHOLDING
1. CUIN (Incorporation Number) 0001107
2. Name of the Company MAPLE LEAF CEMENT FACTORY LIMITED
3. Pattern of holding of the shares

held by the shareholders as at 30-06-2017
4. No. of Size of Holding Total

Shareholders From To shares held
1,967 1 - 100 88,231

2,480 101 - 500 771,557
1,357 501 - 1000 1,115,353
1,856 1001 - 5000 4,486,779
398 5001 - 10000 3,077,794
115 10001 - 15000 1,426,860
75 15001 - 20000 1,377,086
68 20001 - 25000 1,603,790
31 25001 - 30000 877,119
26 30001 - 35000 853,802
15 35001 - 40000 575,379
11 40001 - 45000 471,757
26 45001 - 50000 1,282,100
9 50001 - 55000 468,677
7 55001 - 60000 410,750
13 60001 - 65000 815,857
7 65001 - 70000 478,750
3 70001 - 75000 218,500
8 75001 - 80000 630,409
2 80001 - 85000 169,000
7 85001 - 90000 618,293
3 90001 - 95000 279,500
10 95001 - 100000 996,700
3 100001 - 105000 303,949
1 105001 - 110000 110,000
3 110001 - 115000 339,500
2 115001 - 120000 237,900
2 120001 - 125000 246,600
3 125001 - 130000 381,945
1 130001 - 135000 130,800
4 135001 - 140000 549,100
2 140001 - 145000 283,800

4 145001 - 150000 599,126

4 150001 - 155000 614,336
3 155001 - 160000 474,800
3 160001 - 165000 488,145
1 165001 - 170000 168,700
1 170001 - 175000 175,000
3 180001 - 185000 546,102
1 185001 - 190000 185,892
9 195001 - 200000 1,795,153
2 200001 - 205000 405,700
2 205001 - 210000 415,061
2 210001 - 215000 424,091
2 220001 - 225000 450,000
1 225001 - 230000 229,500
4 230001 - 235000 930,900
3 235001 - 240000 717,184
2 245001 - 250000 497,534
1 250001 - 255000 252,280
1 255001 - 260000 258,600
1 260001 - 265000 264,000
1 265001 - 270000 269,500
2 285001 - 290000 577,500
4 295001 - 300000 1,200,000
1 300001 - 305000 301,100
1 315001 - 320000 317,000
2 345001 - 350000 694,900
1 355001 - 360000 356,000
2 360001 - 365000 722,584
1 370001 - 375000 371,795
1 395001 - 400000 396,500
1 410001 - 415000 412,000
1 425001 - 430000 427,500
1 435001 - 440000 435,847
1 445001 - 450000 448,000
2 460001 - 465000 927,800
2 465001 - 470000 933,500
1 470001 - 475000 473,000
2 490001 - 495000 982,400
2 495001 - 500000 997,016
1 535001 - 540000 540,000
1 540001 - 545000 541,639


1 550001 - 555000 555,000

5 555001 - 560000 2,787,000
1 560001 - 565000 562,600
1 565001 - 570000 566,100
1 595001 - 600000 600,000
2 605001 - 610000 1,217,900
1 610001 - 615000 614,700
1 620001 - 625000 623,000
1 645001 - 650000 649,500
1 665001 - 670000 670,000
1 700001 - 705000 702,800
1 715001 - 720000 718,500
1 740001 - 745000 745,000
2 750001 - 755000 1,507,900
1 770001 - 775000 774,000
2 775001 - 780000 1,554,193
2 795001 - 800000 1,597,500
1 815001 - 820000 820,000
1 820001 - 825000 820,639
1 855001 - 860000 859,200
1 875001 - 880000 877,600
1 900001 - 905000 901,500
1 960001 - 965000 962,600
2 990001 - 995000 1,987,000
1 995001 - 1000000 1,000,000
1 1015001 - 1020000 1,017,500
1 1020001 - 1025000 1,025,000
1 1045001 - 1050000 1,049,200
1 1050001 - 1055000 1,050,700
1 1115001 - 1120000 1,119,100
1 1195001 - 1200000 1,200,000
1 1225001 - 1230000 1,228,495
1 1245001 - 1250000 1,250,000
1 1255001 - 1260000 1,256,698
1 1260001 - 1265000 1,261,300
1 1285001 - 1290000 1,288,700
1 1310001 - 1315000 1,312,500
1 1370001 - 1375000 1,373,100
1 1420001 - 1425000 1,423,000
1 1460001 - 1465000 1,461,000
1 1620001 - 1625000 1,624,000

1 1695001 - 1700000 1,700,000

1 1790001 - 1795000 1,792,700
1 1910001 - 1915000 1,914,000
3 2020001 - 2025000 6,068,600
1 2045001 - 2050000 2,046,500
1 2075001 - 2080000 2,076,000
1 2275001 - 2280000 2,279,492
1 2395001 - 2400000 2,399,000
1 2440001 - 2445000 2,444,783
1 2450001 - 2455000 2,452,000
1 2470001 - 2475000 2,471,900
1 2535001 - 2540000 2,538,500
1 2575001 - 2580000 2,578,800
1 2605001 - 2610000 2,610,000
1 2660001 - 2665000 2,660,800
1 2690001 - 2695000 2,694,500
1 2695001 - 2700000 2,696,700
1 2920001 - 2925000 2,924,441
1 3155001 - 3160000 3,160,000
1 3210001 - 3215000 3,213,300
1 3235001 - 3240000 3,236,000
1 3505001 - 3510000 3,510,000
1 3680001 - 3685000 3,682,559
1 3795001 - 3800000 3,800,000
1 3860001 - 3865000 3,861,100
1 4125001 - 4130000 4,127,700
1 4240001 - 4245000 4,240,577
1 5455001 - 5460000 5,455,600
1 7360001 - 7365000 7,361,900
1 9065001 - 9070000 9,066,600
1 9395001 - 9400000 9,397,902
1 9430001 - 9435000 9,431,478
1 9610001 - 9615000 9,613,600
1 14305001 - 14310000 14,306,622
1 291410001 - 291415000 291,410,425
8,683 527,733,926
Note: The slabs not applicable above have not been shown.

5. Categories of Shares Percentage

Shareholders Held of Capital
5.1 Directors, CEO and their spouses & minor children
Mr. Tariq Sayeed Saigol - Chairman 15,582 0.0030

Mr. Sayeed Tariq Saigol - Chief Executive 5,156 0.0010
Mr. Taufique Sayeed Saigol 7,656 0.0015
Mr. Waleed Tariq Saigol 5,432 0.0010
Mr. Danial Taufique Saigol 2,500 0.0005
Mr. Zamiruddin Azar 10,573 0.0020
Mr. Shafiq Ahmed Khan 7,500 0.0014
Mrs. Shehla Tariq Saigol - Spouse of Mr. Tariq Sayeed Saigol 86,448 0.0164
140,847 0.0268
5.2 Associated Companies, undertakings

and related parties
Kohinoor Textile Mills Ltd. 291,410,425 55.2192
5.3 NIT and ICP

National Bank of Pakistan, Trustee Deptt. 13,097 0.0025
Investment Corporation of Pakistan 6,200 0.0012
19,297 0.0037
5.4 Banks, Development Financial Institutions,
Non-banking Financial Institutions 7,839,609 1.4855
5.5 Insurance & Takaful Companies 10,122,200 1.9180
5.6 Modarabas and Leasing Companies 16,960 0.0031
5.6.1 Mutual Funds
GROWTH MUTUAL FUND LIMITED 110

CDC - TRUSTEE MCB PAKISTAN STOCK MARKET FUND 2,046,500
CDC - TRUSTEE ALHAMRA ISLAMIC STOCK FUND 614,700
CDC - TRUSTEE MEEZAN BALANCED FUND 557,000
CDC - TRUSTEE UBL GROWTH AND INCOME FUND 466,000
CDC - TRUSTEE ALFALAH GHP VALUE FUND 234,700

Categories of Shares Percentage
5.6.1 Mutual Funds
CDC - TRUSTEE UNIT TRUST OF PAKISTAN 45,500

CDC - TRUSTEE AKD INDEX TRACKER FUND 52,900
CDC - TRUSTEE AL MEEZAN MUTUAL FUND 901,500
CDC - TRUSTEE MEEZAN ISLAMIC FUND 5,455,600
CDC - TRUSTEE NAFA STOCK FUND 1,288,700
CDC - TRUSTEE NAFA MULTI ASSET FUND 61,000
CDC - TRUSTEE MEEZAN TAHAFFUZ PENSION FUND -
EQUITY SUB FUND 467,500
CDC - TRUSTEE ALFALAH GHP ISLAMIC STOCK FUND 2,021,300
CDC - TRUSTEE NAFA ISLAMIC ASSET ALLOCATION FUND 994,000
CDC - TRUSTEE ALFALAH GHP STOCK FUND 349,000
CDC - TRUSTEE ALFALAH GHP ALPHA FUND 198,700
CDC - TRUSTEE FIRST HABIB STOCK FUND 60,500
CDC - TRUSTEE LAKSON EQUITY FUND 345,900
CDC-TRUSTEE NAFA ASSET ALLOCATION FUND 136,500
CDC-TRUSTEE NAFA SAVINGS PLUS FUND - MT 203,800
CDC - TRUSTEE MCB DYNAMIC CASH FUND - MT 18,100
CDC - TRUSTEE PICIC INCOME FUND - MT 5,100
CDC - TRUSTEE ALFALAH GHP INCOME FUND - MT 7,800
CDC - TRUSTEE KSE MEEZAN INDEX FUND 497,016
CDC - TRUSTEE LAKSON INCOME FUND - MT 800
CDC-TRUSTEE FIRST HABIB ISLAMIC STOCK FUND 80,000
CDC - TRUSTEE FIRST CAPITAL MUTUAL FUND 18,000
CDC - TRUSTEE PIML ISLAMIC EQUITY FUND 50,000
CDC - TRUSTEE FAYSAL SAVINGS GROWTH FUND - MT 62,300
CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) TRUST 239,746
CDC - TRUSTEE ASKARI HIGH YIELD SCHEME - MT 85,600
CDC - TRUSTEE NAFA ISLAMIC STOCK FUND 859,200
CDC - TRUSTEE NAFA INCOME OPPORTUNITY FUND - MT 141,800
CDC - TRUSTEE PIML VALUE EQUITY FUND 22,500
MCBFSL - TRUSTEE NAFA INCOME FUND - MT 301,100
CDC - TRUSTEE ALFALAH GHP INCOME MULTIPLIER FUND - MT 1,400
CDC - TRUSTEE NAFA ISLAMIC ACTIVE ALLOCATION EQUITY FUND 356,000
CDC - TRUSTEE MEEZAN ASSET ALLOCATION FUND 558,500
CDC - TRUSTEE LAKSON TACTICAL FUND 38,700
CDC - TRUSTEE LAKSON ISLAMIC TACTICAL FUND 5,900
CDC - TRUSTEE UNITED GROWTH AND INCOME FUND - MT 232,300
20,083,272 3.8056


5.7 Shareholders holding Five Percent

or more voting interest in the Company
Refer to 5.2 above - -
5.8 General Public

Individuals 46,831,589 8.8741
Foreign Investors 137,834,740 26.1182
5.9 Executive(s) 1 -
5.10 Public Sector Companies

and Corporations 1,230,505 0.2331
5.11 Joint Stock Companies 9,573,293 1.8139
5.12 Others
AKHUWAT 7,000
CDC - TRUSTEE AGIPF EQUITY SUB-FUND 6,800
CDC - TRUSTEE AGPF EQUITY SUB-FUND 5,700
CDC - TRUSTEE NAFA ISLAMIC PENSION FUND EQUITY ACCOUNT 159,000
CDC - TRUSTEE NAFA PENSION FUND EQUITY SUB-FUND ACCOUNT 138,000
CDC - TRUSTEE PAKISTAN PENSION FUND - EQUITY SUB FUND 142,000
CDC-TRUSTEE PAKISTAN ISLAMIC PENSION FUND - EQUITY SUB FUND 91,000
DAWOOD FAMILY TAKAFUL LIMITED EMPLOYEES PROVIDENT FUND 3,000
HABIB EDUCATION TRUST STAFF PROVIDENT FUND 6,500
LSE FINANCIAL SERVICES LIMITED 5,700
LSE FINANCIAL SERVICES LIMITED - MT 40,800
MANAGING COMMITTEE GHAZALI EDUCATION TRUST 440
PAKISTAN HERALD PUBLICATIONS (PVT) LTD. STAFF PENSION FUND 6,000
TRUSTEE CHERAT CEMENT CO. LTD EMPLOYEES PROVIDENT FUND 60,000
TRUSTEE CHERAT CEMENT COMPANY LTD STAFF GRATUITY FUND 60,000
TRUSTEE CHERAT CEMENT COMPANY LTD.STAFF GRATUITY FUND 20,000
TRUSTEE- GUL AHMED TEXTILE MILLS LTD. EMP. PROVIDENT FUND 18,000
TRUSTEE KARACHI PARSI ANJUMAN TRUST FUND 4,000
TRUSTEE LEVER BROTHERS EMPLOYEES 5,000

TRUSTEE MOMIN ADAMJEE WELFARE TRUST 185,000

TRUSTEE NATIONAL BANK OF PAKISTAN EMP BENEVOLENT FUND TRUST 7,488
TRUSTEE NATIONAL BANK OF PAKISTAN EMPLOYEES PENSION FUND 213,391
TRUSTEE PAKISTAN MOBILE COMMUNICATIONS LTD - PROVIDENT FUND 100,000
TRUSTEE-CHERAT CEMENT COMPANY LTD. EMPLOYEES PROVIDENT FUND 25,000
TRUSTEE-MILLAT TRACTORS LTD. EMPLOYEES PENSION FUND 19,000
TRUSTEES D.G.KHAN CEMENT CO.LTD.EMP. P.F 7,000
TRUSTEES HILAL GROUP EMPLOYEES PROVIDENT FUND 2,500
TRUSTEES HOMMIE & JAMSHED NUSSERWANJEE C.T 50,000
TRUSTEES NESTLE PAKISTAN LTD EMPLOYEES PROVIDENT FUND 149,226
TRUSTEES OF CRESENT STEEL & ALLIED PRODUCTS LTD-PENSION FUND 500
Trustees of GETZ PHARMA Pakistan (Pvt) Limited-EPF 7,000
Trustees of Karachi Sheraton Hotel Employees Provident Fund 143
Trustees of Pakistan Human Development Fund 47,000
Trustees of Pharm Evo Pvt. Ltd. Employees Provident Fund 3,200
Trustees of TCS (Pvt.) Ltd. Employee Provident Fund Trust 2,000
TRUSTEES THALL LIMITED- EMPLOYEES RETIREMENT BENEFIT FUND 1,000
TRUSTEES THE CRESCENT TEXTILE MILLS EMP PROVIDENT FUND TRUST 500,000
Trustees Wah Nobel P. Ltd. Mang. Staff PF 20,000
TRUSTEE-SULAIMANIYAH TRUST 12,000
TRUSTEE-THE CRESCENT TEXTILE MILLS LTD EMPL. PROVIDENT FUND 464,800
TRUSTEE-THE KOT ADDU POWER CO. LTD. EMPLOYEES PENSION FUND 36,000
2,631,188 0.4986
Grand Total 527,733,926 100.00

STATEMENT OF COMPLIANCE WITH THE

CODE OF CORPORATE GOVERNANCE
Name of Company: Maple Leaf Cement 2. The Directors have confirmed that none of them
Factory Limited is serving as a Director on more than seven listed
Year Ended: June 30, 2017 companies, including this Company.
This statement is being presented to comply with the 3. All the resident Directors of the Company are
Code of Corporate Governance (CCG) contained in registered as taxpayers and none of them has
Regulation No. 5.19 of listing regulations of Pakistan defaulted in payment of any loan to a banking
Stock Exchange Limited for the purpose of establishing company, a DFI or an NBFI or, being a member of a
a framework of good governance, whereby a listed broker of a stock exchange, has been declared as a
company is managed in compliance with the best defaulter by that stock exchange.
practices of corporate governance.
4. No casual vacancy occurred on the Board of
The Company has applied the principles contained in the Directors during the year. However, during the year,
CCG in the following manner: election of Directors was held on December 30,
2016 for the next term and eight Directors were
1. The Company encourages representation of elected as fixed by the Board.
independent non-executive directors and directors
representing minority interests on its Board of 5. The Company has prepared a “Code of Conduct”
Directors. At present, the Board includes: and has ensured that appropriate steps have been
taken to disseminate it throughout the Company
Category Names along with its supporting policies and procedures.
Independent Director Mr. Shafiq Ahmed Khan 6. The Board has developed a vision/mission
statement, overall corporate strategy and significant
Executive Directors Mr. Sayeed Tariq Saigol policies of the Company. A complete record of
Syed Mohsin Raza Naqvi particulars of significant policies along with the dates
on which they were approved or amended has been
Non-Executive Directors Mr. Tariq Sayeed Saigol maintained.
Mr. Taufique Sayeed Saigol
Mr. Waleed Tariq Saigol 7. All the powers of the Board have been duly exercised
Mr. Danial Taufique Saigol and decisions on material transactions, including
Mr. Zamiruddin Azar appointment and determination of remuneration and
terms and conditions of employment of the CEO,
The Independent Director meets the criteria of other executive and non-executive directors, have
independence under clause 5.19.1(b) of the CCG. been taken by the Board.

8. The meetings of the Board were presided over by the 14. The Company has complied with all the corporate
Chairman and the Board met at least once in every and financial reporting requirements of the CCG.
quarter. Written notices of the Board meetings, along
with agenda and working papers, were circulated at 15. The Board has formed an Audit Committee
least seven days before the meetings. The minutes comprising of four non-executive directors including
of the meetings were appropriately recorded and independent director.
circulated.
16. The meetings of the Audit Committee were held at
9. The Board had arranged orientation courses for least once every quarter prior to approval of interim
its Directors during the preceding years from and final results of the Company and as required by
recognized institutions of Pakistan that meet the the CCG. The terms of reference of the committee
criteria specified by the SECP whereas some have been formed and advised to the committee for
Directors having the requisite experience on the compliance.
Board(s) of Listed Companies are exempt from the
Directors’ Training Program. Further, the Directors 17. The Board has formed an HR & Remuneration
have also provided declarations that they are aware Committee comprising of three non-executive
of their duties, powers and responsibilities under directors including the chairman of the committee.
the applicable law and the Listing Regulations of
Pakistan Stock Exchange. 18. The Board has set up an effective internal audit
function.
10. There were no new appointments of the CFO
and the Company Secretary. However, Head of 19. The statutory auditors of the Company have
Internal Audit was appointed during the year. All confirmed that they have been given a satisfactory
such appointments including their remuneration rating under the quality control review program of
and terms and conditions of employment are duly the ICAP, that they or any of the partners of the firm,
approved by the Board. their spouses and minor children do not hold shares
of the Company and that the firm and all its partners
11. The Directors’ Report for this year has been prepared are in compliance with International Federation of
in compliance with the requirements of the CCG Accountants (IFAC) guidelines on code of ethics as
and fully describes the salient matters required to be adopted by the ICAP.
disclosed.
20. The statutory auditors or the persons associated
12. The financial statements of the Company were duly with them have not been appointed to provide
endorsed by CEO and CFO before approval of the other services except in accordance with the listing
Board. regulations and the auditors have confirmed that
they have observed IFAC guidelines in this regard.
13. The Directors, CEO and executives do not hold any
interest in the shares of the Company other than that 21. The ‘closed period’, prior to the announcement
disclosed in the pattern of shareholding. of interim/final results, and business decisions,
which may materially affect the market price of the

Company’s securities, was determined and intimated to Directors, executives and stock exchange.
22. Material / price sensitive information has been disseminated among all market participants at once through
stock exchange.
23. The Company has complied with the requirements relating to maintenance of register of persons having access
to inside information by designated senior management officer in a timely manner and maintained proper record
including basis for inclusion or exclusion of names of persons from the said list.
24. We confirm that all other material principles enshrined in the CCG have been complied with.
Lahore: (Syed Mohsin Raza Naqvi) (Sayeed Tariq Saigol)

September 13, 2017 Director Chief Executive

This disclosure is being added as per requirements of Securities and
Exchange Commission of Pakistan vide SRO 924(1) / 2015, dated 09
September 2015.

KPMG Taseer Hadi & Co.

Chartered Accountants Telephone + 92 (42) 3579 0901-6
2nd Floor, Fax + 92 (42) 3579 0907
Servis House Internet www.kpmg.com.pk
2-Main Gulberg Jail Road,
Lahore Pakistan
Review Report to the Members on the

Statement of Compliance with the Code
of Corporate Governance
We have reviewed the enclosed Statement of Audit Committee, place before the Board of Directors for
Compliance with the best practices contained in the their review and approval, its related party transactions
Code of Corporate Governance (“the Code”) prepared distinguishing between transactions carried out on terms
by the Board of Directors of Maple Leaf Cement Factory equivalent to those that prevail in arm’s length transactions
Limited (“the Company”) for the year ended 30 June and transactions which are not executed at arm’s length
2017 to comply with the requirements of rule No. 5.19.24 price and recording proper justification for using such
of the Rule Book of Pakistan Stock Exchange, where the alternate pricing mechanism. We are only required and
Company is listed. have ensured compliance of this requirement to the
extent of the approval of the related party transactions by
The responsibility for compliance with the Code is that of the Board of Directors upon recommendation of the Audit
the Board of Directors of the Company. Our responsibility Committee. We have not carried out any procedures to
is to review, to the extent where such compliance can be determine whether the related party transactions were
objectively verified, whether the Statement of Compliance undertaken at arm’s length price or not.
reflects the status of the Company’s compliance with the
provisions of the Code and report if it does not and to Based on our review, nothing has come to our
highlight any non-compliance with the requirements of attention which causes us to believe that the Statement
the Code. A review is limited primarily to inquiries of the of Compliance does not appropriately reflect the
Company’s personnel and review of various documents Company’s compliance, in all material respects, with the
prepared by the Company to comply with the Code. best practices contained in the Code as applicable to the
Company for the year ended 30 June 2017.
As a part of our audit of the financial statements we are
required to obtain an understanding of the accounting and
internal control systems sufficient to plan the audit and
develop an effective audit approach. We are not required
to consider whether the Board of Directors’ statement on
internal control covers all risks and controls or to form an Lahore KPMG Taseer Hadi & Co
opinion on the effectiveness of such internal controls, the Date: 13 September 2017 Chartered Accountants
Company’s corporate governance procedures and risks. (Bilal Ali)
The Code requires the Company to place before the

Audit Committee, and upon recommendation of the

Financial
Statements
for the Year Ended June 30, 2017


2nd Floor, Fax + 92 (42) 3579 0907
Lahore Pakistan
Auditors’ Report to the Members

We have audited the annexed unconsolidated balance sheet of Maple Leaf Cement Factory Limited (“the Company”) as at 30 June 2017
and the related unconsolidated profit and loss account, unconsolidated statement of comprehensive income, unconsolidated cash flow
statement and unconsolidated statement of changes in equity together with the notes forming part thereof, for the year then ended and
we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the
purposes of our audit.
It is the responsibility of the Company’s management to establish and maintain a system of internal control, and prepare and present the
above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984.
Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts and disclosures in the above said statements. An audit also includes
assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the
above said statements. We believe that our audit provides a reasonable basis for our opinion and, after due verification, we report that:
a) in our opinion, proper books of account have been kept by the Company as required by the Companies Ordinance, 1984;
b) in our opinion:
i) the unconsolidated balance sheet and unconsolidated profit and loss account together with the notes thereon have been
drawn up in conformity with the Companies Ordinance, 1984, and are in agreement with the books of account and are further
in accordance with accounting policies consistently applied;
ii) the expenditure incurred during the year was for the purpose of the Company’s business; and
iii) the business conducted, investments made and the expenditure incurred during the year were in accordance with the
objects of the Company;
(c) in our opinion and to the best of our information and according to the explanations given to us, the unconsolidated balance sheet,
unconsolidated profit and loss account, unconsolidated statement of comprehensive income, unconsolidated cash flow statement
and unconsolidated statement of changes in equity together with the notes forming part thereof conform with approved accounting
standards as applicable in Pakistan, and, give the information required by the Companies Ordinance, 1984, in the manner so
required and respectively give a true and fair view of the state of the Company’s affairs as at 30 June 2017 and of the profit, its cash
flows and changes in equity for the year then ended; and
(d) in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Company
and deposited in the Central Zakat Fund established under section 7 of that Ordinance.
Lahore KPMG Taseer Hadi & Co.

Chartered Accountants
Date: 13 September 2017 (Bilal Ali)

Unconsolidated Balance Sheet

As at June 30, 2017
2017 2016
Note (Rupees in thousand)
EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES
Authorized share capital 5 7,000,000 7,000,000
Issued, subscribed and paid-up share capital 5 5,277,340 5,277,340

Capital reserves 6 2,058,137 2,058,137
Accumulated profits 12,048,675 9,414,403
19,384,152 16,749,880
SURPLUS ON REVALUATION OF FIXED ASSETS - NET OF TAX 7 4,323,909 4,587,255

NON - CURRENT LIABILITIES
Long term loans from banking companies - secured 8 2,890,226 927,298
Liabilities against assets subject to finance lease - secured 9 270,615 479,243
Long term deposits 10 8,699 6,499
Deferred taxation 11 4,024,363 4,124,673
Retirement benefits 12 150,778 119,783
7,344,681 5,657,496
CURRENT LIABILITIES
Current portion of:
- Long term loans from banking companies - secured 8 213,534 -
- Liabilities against assets subject to finance lease - secured 9 210,000 167,519
Trade and other payables 13 3,680,346 3,193,583
Accrued profit / interest / mark-up 14 101,465 36,807
Provision for taxation - net 15 420,527 204,245
Short term borrowings 16 3,138,159 1,424,911
7,764,031 5,027,065
CONTINGENCIES AND COMMITMENTS 17
38,816,773 32,021,696
The annexed notes from 1 to 53 form an integral part of these unconsolidated financial statements.
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

2017 2016
ASSETS
NON - CURRENT ASSETS
Property, plant and equipment 18 23,647,663 22,822,494

Intangible assets 19 25,206 -
Long term investment 20 4,670,000 660,000
Long term loans to employees - secured 21 5,799 5,628
28,405,142 23,543,989
CURRENT ASSETS
Stores, spare parts and loose tools 23 6,750,586 5,383,750

Stock-in-trade 24 1,301,235 872,820
Trade debts 25 682,526 576,861
Loans and advances 26 818,116 805,167
Short term investment 27 77,659 12,000
Short term deposits and prepayments 28 75,867 71,594
Accrued profit 29 1,356 1,582
Refunds due from Government 30 16,797 16,797
Other receivables 31 273,531 342,662
Cash and bank balances 32 413,958 394,474
10,411,631 8,477,707
38,816,773 32,021,696

Unconsolidated Profit and Loss Account

For the year ended June 30, 2017
2017 2016
Sales - net 33 23,992,079 23,432,696

Cost of goods sold 34 (14,509,777) (13,410,564)
Gross profit 9,482,302 10,022,132
Distribution cost 35 (1,275,182) (1,359,896)

Administrative expenses 36 (621,076) (485,959)
Other charges 37 (536,369) (659,631)
(2,432,627) (2,505,486)
Other income 38 139,030 36,396
Profit from operations 7,188,705 7,553,042

Finance cost 39 (318,349) (435,504)
Profit before taxation 6,870,356 7,117,538

Taxation 40 (2,093,275) (2,232,953)
Profit after taxation 4,777,081 4,884,585
---------- (Rupees) ----------
Earnings per share - basic and diluted 41 9.05 9.26

Unconsolidated Statement of Comprehensive Income
2017 2016
Other comprehensive income
Items that will not be reclassified to profit and loss account:
a) Other comprehensive income - transferred to equity
Remeasurement of defined benefit liability (19,408) 2,185

Related tax 4,891 (544)
(14,517) 1,641
b) Other comprehensive income - not transferred to equity
Surplus on revaluation of fixed assets - -

Deferred tax liability on revaluation of fixed assets - -
- -
Total comprehensive income for the year 4,762,564 4,886,226

Unconsolidated Cash Flow Statement

2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for:
Depreciation 18.4 1,894,105 1,817,658
Amortization 19 3,826 -
Reversal of provision against doubtful debts 38 - (3,423)
Provision for Workers’ Profit Participation Fund 13.3 374,174 386,524
Provision for Workers’ Welfare Fund 37 138,293 126,052
Stock-in-trade written off 34 - 13,072
Loss on disposal of property, plant and equipment 37 2,848 130,064
Gain on re-measurement of short term investments at fair value 38 (50,659) (1,470)
Finance cost 39 318,349 435,504
Profit on bank deposits 38 (16,402) (14,810)
Cash generated from operations before working capital changes 9,573,733 10,042,012
Effect on cash flow due to working capital changes
(Increase) / decrease in current assets:
Stores, spare parts and loose tools (1,366,836) (1,199,205)
Stock-in-trade (428,415) 320,681
Trade debts (105,665) (2,867)
Loans and advances (12,949) 180,084
Short term deposits and prepayments (4,273) 17,375
Other receivables 69,131 (212,056)
(1,849,007) (895,988)
Increase / (decrease) in current liabilities:
Trade and other payables 28,381 (430,056)
(1,820,626) (1,326,044)
Net cash generated from operations 7,753,107 8,715,968

Workers’ Profit Participation Fund paid - (89,119)
Workers’ Welfare Fund paid (112,622) -
Taxes paid (1,989,248) (632,781)

2017 2016
CASH FLOWS FROM INVESTING ACTIVITIES
Intangible asset purchased (29,032) -
Long term investment (4,010,000) (660,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Drawdown of long term loans from banking companies - secured - net 2,176,462 771,484
Dividend paid (2,315,788) (1,283,026)
Net cash generated from / (used in) financing activities 909,623 (6,059,882)
Cash and cash equivalents at beginning of the year 384,767 169,012
Cash and cash equivalents at end of the year 42 158,068 384,767

Unconsolidated Statement of Changes in Equity

Capital Reserves Revenue Reserves
Share Share Capital Sub- Accumulated Total
Capital premium redemption total profits Equity
reserve
…...……………………...…… ( Rupees in thousand ) …...……………………...……
At 30 June 2015 5,277,340 1,529,874 528,263 2,058,137 5,576,181 12,911,658

Total comprehensive income for the year
Profit for the year ended 30 June 2016 - - - - 4,884,585 4,884,585
Other comprehensive income for the year ended 30 June 2016 - - - - 1,641 1,641
- - - - 4,886,226 4,886,226
Transfer of incremental depreciation from surplus on revaluation
of fixed assets - net of tax - - - - 261,564 261,564
Reversal of revaluation surplus on disposal of fixed assets - net of tax - - - - 9,767 9,767
Transaction with owners of the Company
Final cash dividend @ Re. 1 per share for the year ended 30 June 2015 - - - - (527,734) (527,734)
Interim cash dividend @ Rs. 1.5 per share for the year ended 30 June 2016 - - - - (791,601) (791,601)
At 30 June 2016 5,277,340 1,529,874 528,263 2,058,137 9,414,403 16,749,880
Other comprehensive income for the year ended 30 June 2017 - - - - (14,517) (14,517)
- - - - 4,762,564 4,762,564
Transaction with owners of the Company
Final cash dividend @ Rs. 2.5 per share for the year ended 30 June 2016 - - - - (1,319,335) (1,319,335)
Interim cash dividend @ Rs. 2 per share for the year ended 30 June 2017 - - - - (1,055,468) (1,055,468)
At 30 June 2017 5,277,340 1,529,874 528,263 2,058,137 12,048,675 19,384,152

Notes to the Unconsolidated Financial Statements
1. REPORTING ENTITY
Maple Leaf Cement Factory Limited (“the Company”) was incorporated in Pakistan on 13 April 1960 under the
Companies Act, 1913 (now the Companies Act, 2017) as a public company limited by shares. The Company
is listed on Pakistan Stock Exchange. The registered office of the Company is situated at 42-Lawrence Road,
Lahore, Pakistan. The cement factory is located at Iskanderabad District Mianwali in the province of Punjab. The
principal activity of the Company is production and sale of cement. The Company is a subsidiary of Kohinoor
Textile Mills Limited (“the Holding Company”).
2. BASIS OF PREPARATION
2.1 Separate financial statements
These unconsolidated financial statements are the separate financial statements of the Company in which
investment in subsidiary is accounted for on the basis of direct equity interest rather than on the basis of
reported results and net assets of the investee. Consolidated financial statements of the Company are
prepared and presented separately.
The Company has the following long term investment:
2017 2016
(Direct holding percentage)
Subsidiary Company
Maple Leaf Power Limited 100 100
2.2 Statement of compliance
These unconsolidated financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984. Approved
accounting standards comprise of such International Financial Reporting Standards (“IFRSs”) issued by the
International Accounting Standards Board as notified under the Companies Ordinance, 1984, provisions of
and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions of
or directives of the Companies Ordinance, 1984 shall prevail.
During the year on 30 May 2017, the Companies Act, 2017 (the Act) was enacted which replaced and
repealed the Companies Ordinance, 1984 (the repealed Ordinance). However, the Securities and Exchange
Commission of Pakistan (SECP) through its Circular No. 17 of 2017 dated 20 July 2017 has advised the
Companies whose financial year closes on or before 30 June 2017 shall prepare their financial statements
in accordance with the provisions of the repealed Companies Ordinance, 1984.
During the year, the Companies Act, 2017 (the Act) was enacted which replaced and repealed the previous
Companies Ordinance, 1984 (the repealed Ordinance). Section 235 of the repealed Ordinance related to
treatment of surplus arising on revaluation of property, plant and equipment has not been carried forward

in the Act. Consequent to deletion of said Section from the Act, the Company will be required to change
its accounting policy with respect to revaluation of property, plant and equipment to conform it to the
requirement of IAS 16 “Property, Plant and Equipment” for the accounting year commencing from 01 July
2017.
2.3 Basis of measurement
These unconsolidated financial statements have been prepared under the historical cost convention except
for the following:
- certain financial instruments at fair value;

- certain property, plant and equipment at revalued amounts; and
- recognition of employee retirement benefits at present value.
2.4 Functional and presentation currency
These unconsolidated financial statements have been prepared in Pak Rupees (“Rs.”) which is the
Company’s functional currency.
2.5 Use of estimates and judgments
The preparation of unconsolidated financial statements in conformity with approved accounting standards
requires management to make judgments, estimates and assumptions that affect the application of policies and
reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are
based on historical experience and various other factors that are believed to be reasonable under circumstances,
and the results of which form the basis for making judgment about carrying value of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which estimates are revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
The areas where assumptions and estimates are significant to the Company’s unconsolidated financial
statements or where judgment was exercised in application of accounting policies are as follows:
2.5.1 Property, plant and equipment
The Company reviews the useful lives and residual values of property, plant and equipment on regular
basis. Any change in estimates in future years might affect the carrying amounts of the respective items of
property, plant and equipment with a corresponding effect on the depreciation charge and impairment.
2.5.2 Stores, spare parts and loose tools
The Company reviews the stores, spare parts and loose tools for possible impairment on an annual basis.
Any change in estimates in future years might affect the carrying amounts of the respective items of stores,
spare parts and loose tools with a corresponding effect on the provision.

2.5.3 Stock-in-trade
The Company reviews the carrying amount of stock-in-trade on a regular basis. Carrying amount of stock-
in-trade is adjusted where the net realizable value is below the cost. Net realizable value is the estimated
selling price in the ordinary course of business, less the estimated costs of completion and estimated costs
necessary to make the sale.
2.5.4 Provision for doubtful debts, advances and other receivables
The Company reviews the recoverability of its trade debts, advances and other receivables to assess
amount of bad debts and provision required there against on annual basis.
2.5.5 Employee benefits
The Company operates approved funded gratuity scheme covering all its full time permanent workers who
have completed the minimum qualifying period of service as defined under the respective scheme. The
gratuity scheme is managed by trustees. The calculation of the benefit requires assumptions to be made
of future outcomes, the principal ones being in respect of increase in remuneration and the discount rate
used to convert future cash flows to current values. The assumptions used for the plan are determined by
independent actuary on annual basis.
The amount of the expected return on plan assets is calculated using the expected rate of return for
the year and the market-related value at the beginning of the year. Gratuity cost primarily represents the
increase in actuarial present value of the obligation for benefits earned on employee service during the year
and the interest on the obligation in respect of employee service in previous years, net of the expected
return on plan assets. Calculations are sensitive to changes in the underlying assumptions.
2.5.6 Impairment
The management of the Company reviews carrying amounts of its assets including receivables and
advances and cash generating units for possible impairment and makes formal estimates of recoverable
amount if there is any such indication.
2.5.7 Taxation
The Company takes into account the current income tax law and decisions taken by the taxation authorities.
Instances where the Company’s views differ from the views taken by the income tax department at the
assessment stage and where the Company considers that its view on items of material nature is in
accordance with law, the amounts are shown as contingent liabilities.
The Company also regularly reviews the trend of proportion of incomes between Presumptive Tax Regime
income and Normal Tax Regime income and the change in proportions, if significant, is accounted for in
the year of change.
2.5.8 Provisions and contingencies
The Company reviews the status of all pending litigations and claims against the Company. Based on the
judgment and the advice of the legal advisors for the estimated financial outcome, appropriate disclosure
or provision is made. The actual outcome of these litigations and claims can have an effect on the carrying
amounts of the liabilities recognized at the balance sheet date.

2.5.9 Revaluation of property, plant and equipment
Revaluation of property, plant and equipment is carried out by an independent professional valuer.
Revalued amounts of non-depreciable items are determined by reference to local market values and that
of depreciable items are determined by reference to present depreciated replacement values.
The frequency of revaluations depends upon the changes in fair values of the items of property, plant
and equipment being revalued. When the fair value of a revalued asset differs materially from its carrying
amount, a further revaluation is required. Such frequent revaluations are unnecessary for items of property,
plant and equipment with only insignificant changes in fair value. Instead, it may be necessary to revalue
the item only every three or five years.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of these unconsolidated financial statements are
set out below. The policies have been consistently applied to all the years presented.
3.1 Employee benefits
Defined contribution plan
The Company operates a defined contributory approved Provident Fund Trust for all its employees. Equal
monthly contributions are made both by the Company and employees at the rate of 10.00% of the basic
salary to the Provident Fund Trust. Obligation for contributions to defined contribution plan is expensed as
the related service is provided.
Defined benefit plan
The Company operates approved funded gratuity scheme for all its full time permanent workers who have
completed the minimum qualifying period of service as defined under the respective scheme. Provision is
made annually to cover obligations under the scheme on the basis of actuarial valuation and is charged to
unconsolidated profit and loss account.
The Company’s net obligation in respect of defined benefit plan is calculated by estimating the amount of
future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.
Calculation of defined benefit obligation is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for the Company, the recognized asset
is limited to the present value of economic benefits available in the form of any future refunds from the
plan or reductions in future contribution to the plan. To calculate the present value of economic benefits,
consideration is given to any applicable minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset ceiling (if, any excluding interest), are recognized
immediately in OCI. The Company determines the net interest expense (income) on the net defined benefit
liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation

at beginning of the annual period to the then-net defined benefit liability (asset), taking into account any
changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit
payments. Net interest expense and other expenses related to defined benefit plan is recognized in
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment is recognized immediately in unconsolidated profit
and loss account. The Company recognizes gains and losses on the settlement of a defined benefit plan
when the settlement occurs.
Liability for employees’ compensated absences
The Company accounts for the liability in respect of employees’ compensated absences in the year in which
these are earned. Provision to cover the obligations is made using the current salary level of employees.
3.2 Taxation
Current
Current tax is the amount of tax payable on taxable income for the year, using tax rates enacted or
substantively enacted by the reporting date, and any adjustment to the tax payable in respect of previous
years. Provision for current tax is based on current rates of taxation in Pakistan after taking into account tax
credits, rebates and exemptions available, if any. The amount of unpaid income tax in respect of the current
or prior periods is recognized as a liability. Any excess paid over what is due in respect of the current or
prior periods is recognized as an asset.
Deferred
Deferred tax is recognized using the balance sheet liability method on all temporary differences between
the carrying amounts of assets and liabilities for the financial reporting purposes and the amounts used for
taxation purposes.
Deferred tax asset is recognized for all the deductible temporary differences only to the extent that it is
probable that future taxable profits will be available against which the asset may be utilized. Deferred tax
asset is reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred tax liabilities are recognized for all the taxable temporary differences.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled, based on the tax rates that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax is charged or credited in the income statement, except in the case of items credited or
charged to comprehensive income or equity, in which case it is included in unconsolidated comprehensive
income or equity.

3.3 Leases
Leases are classified as finance lease whenever terms of the lease transfer substantially all risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
The liability to the lessor is included in the balance sheet as liabilities against assets subject to finance lease.
The liabilities are classified as current and non-current depending upon the timing of payment. Lease payments
are apportioned between finance charges and reduction of the liabilities against assets subject to finance
lease so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are
charged to unconsolidated profit and loss account, unless they are directly attributable to qualifying assets,
in which case they are capitalized in accordance with the Company’s general policy on borrowing costs.
Rentals payable under operating leases are charged to unconsolidated profit and loss account on a
straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to
enter into an operating lease are also spread on a straight line basis over the lease term.
3.4 Property, plant and equipment
3.4.1 Tangible assets
Owned
Tangible assets except freehold land, buildings on freehold land, roads, bridges and railway sidings, plant
and machinery are stated at cost less accumulated depreciation and impairment in value, if any. Buildings
on freehold land, roads, bridges and railway sidings and plant and machinery are stated at revalued amount
being the fair value at the date of revaluation, less any subsequent accumulated depreciation and impairment
losses while freehold land is stated at revalued amount being the fair value at the date of revaluation, less
any subsequent impairment losses, if any. Increase in the carrying amount arising on revaluation is credited
to ‘Revaluation of fixed assets’ and the same is dealt in accordance with section 235 of the Companies
Ordinance, 1984. Surplus on revaluation is booked by restating gross carrying amounts of respective assets
being revalued, proportionately to the change in their carrying amounts due to revaluation. The accumulated
depreciation at the date of revaluation is also adjusted to equal difference between gross carrying amounts
and the carrying amounts of the assets after taking into account accumulated impairment losses. The surplus
on revaluation of fixed assets to the extent of the annual incremental depreciation based on the revalued
carrying amount of the asset and the depreciation based on the assets’ original cost is transferred annually to
retained earnings net of related deferred tax. Upon disposal, any revaluation reserve relating to the particular
assets being sold is transferred to retained earnings. All transfers to / from surplus on revaluation of fixed
assets account are net of applicable deferred income tax.
Capital work-in-progress is stated at cost less identified impairment losses, if any. All expenditure connected
with specific assets incurred during installation and construction period are carried under capital work-in-
progress. These are transferred to specific assets as and when these are available for use.
All other repair and maintenance costs are charged to income during the period in which these are incurred.
Gains / losses on disposal or retirement of tangible assets, if any, are taken to unconsolidated profit and
loss account.

Depreciation is calculated at the rates specified in note 18.1 on reducing balance method except that
straight-line method is used for the plant and machinery and buildings relating to dry process plant after
deducting residual value. Depreciation on additions and deletions is charged on the month in which the
addition / deletion is made.
Leased
Assets held under finance lease arrangements are initially recorded at the lower of present value of minimum
lease payments under the lease agreements and the fair value of the leased assets. Depreciation on leased
assets is charged by applying reducing balance method at the rates used for similar owned assets, so as
to depreciate the assets over their estimated useful lives in view of certainty of ownership of assets at end
of the lease term.
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each balance
sheet date.
3.4.2 Intangible assets
Intangible asset is stated at cost less accumulated amortization for finite intangible asset and any identified
impairment loss. The estimated useful life and amortization method is reviewed at the end of each annual
reporting period, with effect of any changes in estimate being accounted for on a prospective basis.
Finite intangible assets are amortized using straight-line method over a period of usage. Amortization on
additions to intangible assets is charged from the month in which an asset is put to use and on disposal
up to the month of disposal.
3.5 Impairment
3.5.1 Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence
that it is impaired. Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.
A financial asset is considered to be impaired if objective evidence indicates that one or more events have
had a negative effect on the estimated future cash flows of the asset.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the
original effective interest rate. Impairment loss in respect of a financial asset measured at fair value is
determined by reference to that fair value. All impairment losses are recognized in unconsolidated profit
and loss account. An impairment loss is reversed if the reversal can be related objectively to an event
occurring after the impairment loss was recognized. An impairment loss is reversed only to the extent
that the financial asset’s carrying amount after the reversal does not exceed the carrying amount that
would have been determined, net of amortization, if no impairment loss had been recognized. Reversal of
impairment loss is recognized in profit and loss account except in the case of available for sale instruments
where the reversal is included in unconsolidated other comprehensive income.

3.5.2 Non-financial assets
The carrying amount of the Company’s non-financial assets, other than inventories and deferred tax assets
are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or
cash generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value
in use, the estimated future cash flows are discounted to their present values using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset or
cash generating unit.
An impairment loss is recognized if the carrying amount of the assets or its cash generating unit exceeds
its estimated recoverable amount. Impairment losses are recognized in unconsolidated profit and loss
account. Impairment losses recognized in respect of cash generating units are allocated to reduce the
carrying amounts of the assets in a unit on a pro rata basis. Impairment losses recognized in prior periods
are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to that extent that the asset’s carrying amount after the
reversal does not exceed the carrying amount that would have been determined, net of depreciation and
amortization, if no impairment loss had been recognized.
3.6 Investments
Investment in equity instruments of subsidiary
Investment in subsidiary company is measured at cost as per the requirements of IAS 27 “Separate Financial
Statements”. However, at subsequent reporting dates, the Company reviews the carrying amount of the
investment and its recoverability to determine whether there is an indication that such investment has
suffered an impairment loss. If any such indication exists the carrying amount of the investment is adjusted
to the extent of impairment loss. Impairment losses are recognized as an expense in unconsolidated
profit and loss account. Where impairment losses subsequently reverse, the carrying amounts of the
investments are increased to the revised recoverable amounts but limited to the extent of initial cost of
investments. A reversal of impairment loss is recognized in unconsolidated profit and loss account.
At fair value through profit and loss account
Investments at fair value through profit and loss account are those which are acquired for generating a profit
from short-term fluctuation in prices. All investments are initially recognized at cost, being the fair value of
the consideration given. Subsequent to initial recognition, these investments are re-measured at fair value
(quoted market price). Any gain or loss from a change in the fair value is recognized in unconsolidated profit
and loss account.
3.7 Loans and receivables
Loans and receivables are recognized initially at fair value, plus attributable transaction costs. Subsequent
to initial recognition, loans and receivables are stated at amortized cost with any difference between cost
and redemption value being recognized in the unconsolidated profit and loss account over the period of
the investments on an effective yield method less impairment loss, if any.

3.8 Stores, spare parts and loose tools
These are stated at lower of cost and net realizable value. Cost is determined using the weighted average
method. Items in transit are valued at cost comprising invoice value plus other charges paid thereon.
3.9 Stock-in-trade
Stocks are valued at the lower of cost and net realizable value. Cost is determined as follows:
Raw material at weighted average cost

Packing material at weighted average cost
Work in process at weighted average manufacturing cost
Finished goods at weighted average manufacturing cost
Average manufacturing cost in relation to work in process and finished goods consists of direct material,
labor and a proportion of appropriate manufacturing overheads.
Net realizable value signifies the estimated selling price in the ordinary course of business less estimated
costs of completion and estimated costs necessary to make the sale.
3.10 Financial instruments
Financial assets and liabilities are recognized when the Company becomes a party to contractual provisions
of the instrument and de-recognized when the Company looses control of contractual rights that comprise
the financial asset and in case of financial liability when the obligation specified in the contract is discharged,
cancelled or expired. Any gain or loss on de-recognition of financial assets and liabilities are included in
unconsolidated profit and loss account for the year.
Non-derivative financial liabilities are initially recognized at fair value less any directly attributable transaction
costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using effective
interest method. The carrying values of liabilities approximates to their amortized cost.
3.11 Trade and other payables
Creditors relating to trade and other payables are carried at cost which is the fair value of consideration to
be paid in the future for goods and services received, whether or not billed to the Company.
3.12 Trade debts
Trade debts are stated initially at the fair value, subsequent to initial recognition, these are stated at their
amortized cost as reduced by appropriate provision for impairment. Known impaired receivables are
written off, while receivables considered doubtful are fully provided for.

3.13 Off setting of financial instruments
Financial assets and liabilities are off-set and the net amount reported in the balance sheet when there is a
legally enforceable right to offset the recognized amounts and there is an intention and ability to settle on
a net basis, or realize the asset and settle the liability simultaneously.
3.14 Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand, running finance
and cash at banks.
3.15 Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be measured reliably. Revenue is measured at fair value of consideration received or
receivable on the following basis:
- Sales are recorded when significant risks and rewards of ownership of the goods have passed to the
customers;
- Dividend income is recognized when the Company’s right to receive the dividend is established; and
- Interest income is recognized as and when accrued on effective interest method.
3.16 Foreign currency translations
Transactions in foreign currencies are initially recorded at the rates of exchange ruling on the dates of
transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated into Pak
Rupees at exchange rates prevailing on the balance sheet date. All exchange differences are charged to
3.17 Borrowings
All borrowings are recorded at the proceeds received. Borrowing costs directly attributable to the
acquisition, construction or production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use are added to the cost of those assets,
until such time as the assets are substantially ready for their intended use. All other borrowing costs are
charged to unconsolidated profit and loss account in the period in which these are incurred.
3.18 Provisions
Provisions are recognized when the Company has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable
estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate.
3.19 Earnings per share (EPS)
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company
by weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated by adjusting basic EPS with weighted average number of ordinary shares that
would be issued on conversion of all dilutive potential ordinary shares into ordinary shares and post-tax
effect of changes in profit or loss attributable to ordinary shareholders of the Company that would result
from conversion of all dilutive potential ordinary shares into ordinary shares.
3.20 Dividend distribution
Dividend is recognized as a liability in the period in which it is declared.
3.21 Mark-up bearing borrowings
Mark-up bearing borrowings are recognized initially at cost representing the fair value of consideration
received less attributable transaction costs. Subsequent to initial recognition, mark-up bearing borrowings
are stated at original cost less subsequent repayments, while the difference between the original recognized
amounts (as reduced by periodic payments) and redemption value is recognized in the unconsolidated
profit and loss account over the period of borrowings on an effective rate basis. The borrowing cost on
qualifying asset is included in the cost of related asset.
4. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROVED ACCOUNTING STANDARDS
The following standards, amendments and interpretations of approved accounting standards will be effective for
accounting periods beginning on or after 01 July 2017:
- Amendments to IAS 12 ‘Income Taxes’ are effective for annual periods beginning on or after 1 January
2017. The amendments clarify that the existence of a deductible temporary difference depends solely on
a comparison of the carrying amount of an asset and its tax base at the end of the reporting period, and
is not affected by possible future changes in the carrying amount or expected manner of recovery of the
asset. The amendments further clarify that when calculating deferred tax asset in respect of insufficient
taxable temporary differences, the future taxable profit excludes tax deductions resulting from the reversal
of those deductible temporary differences. The amendments are not likely to have an impact on Company’s
financial statements.
- Amendments to IAS 7 ‘Statement of Cash Flows’ are part of IASB’s broader disclosure initiative and are
effective for annual periods beginning on or after 1 January 2017. The amendments require disclosures
that enable users of financial statements to evaluate changes in liabilities arising from financing activities,
including both changes arising from cash flow and non-cash changes.
- Amendments to IFRS 2 - Share-based Payment clarify the accounting for certain types of arrangements
and are effective for annual periods beginning on or after 1 January 2018. The amendments cover three
accounting areas (a) measurement of cash-settled share-based payments; (b) classification of share-
based payments settled net of tax withholdings; and (c) accounting for a modification of a share-based
payment from cash-settled to equity-settled. The new requirements could affect the classification and /
or measurement of these arrangements and potentially the timing and amount of expense recognized for
new and outstanding awards. The amendments are not likely to have an impact on Company’s financial
statements.

Transfers of Investment Property (Amendments to IAS 40 ‘Investment Property’ -effective for annual periods
beginning on or after 1 January 2018) clarifies that an entity shall transfer a property to, or from, investment
property when, and only when there is a change in use. A change in use occurs when the property meets,
or ceases to meet, the definition of investment property and there is evidence of the change in use. In
isolation, a change in management’s intentions for the use of a property does not provide evidence of a
change in use. The amendments are not likely to have an impact on Company’s unconsolidated financial
statements.
Annual Improvements 2014-2016 cycles (amendments are effective for annual periods beginning on or after 1
January 2016). The new cycle of improvements contain amendments to the following standards:
- Amendments to IFRS 12 ‘Disclosure of Interests in Other Entities’ (effective for annual periods beginning
on or after 1 January 2017) clarify that the requirements of IFRS 12 apply to an entity’s interests that are
classified as held for sale or discontinued operations in accordance with IFRS 5 – ‘Non-current Assets Held
for Sale and Discontinued Operations’. The amendments are not likely to have an impact on Company’s
unconsolidated financial statements.
- Amendments to IAS 28 ‘Investments in Associates and Joint Ventures’ (effective for annual periods
beginning on or after 1 January 2018) clarifies that a venture capital organization and other similar entities
may elect to measure investments in associates and joint ventures at fair value through profit or loss, for
each associate or joint venture separately at the time of initial recognition of investment. Furthermore, similar
election is available to non-investment entity that has an interest in an associate or joint venture that is an
investment entity, when applying the equity method, to retain the fair value measurement applied by that
investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests
in subsidiaries. This election is made separately for each investment entity associate or joint venture. The
amendments are not likely to have an impact on Company’s unconsolidated financial statements.
- IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration’ (effective for annual periods beginning
on or after 1 January 2018) clarifies which date should be used for translation when a foreign currency
transaction involves payment or receipt in advance of the item it relates to. The related item is translated
using the exchange rate on the date the advance foreign currency is received or paid and the prepayment
or deferred income is recognized. The date of the transaction for the purpose of determining the exchange
rate to use on initial recognition of the related asset, expense or income (or part of it) would remain the date
on which receipt of payment from advance consideration was recognized. If there are multiple payments
or receipts in advance, the entity shall determine a date of the transaction for each payment or receipt of
advance consideration.
- IFRIC 23 ‘Uncertainty over Income Tax Treatments’ (effective for annual periods beginning on or after 1
January 2019) clarifies the accounting for income tax when there is uncertainty over income tax treatments
under IAS 12. The interpretation requires the uncertainty over tax treatment be reflected in the measurement
of current and deferred tax.
The above amendments are not likely to have an impact on the Company’s unconsolidated financial
statements.

2017 2016
5. SHARE CAPITAL
5.1 Authorized share capital
Number of shares
600,000,000 (2016: 600,000,000) ordinary shares of Rs. 10 each 6,000,000 6,000,000
100,000,000 (2016: 100,000,000) 9.75 % redeemable

cumulative preference shares of Rs. 10 each 1,000,000 1,000,000
700,000,000 7,000,000 7,000,000
5.2 Issued, subscribed and paid-up share capital
Number of shares
290,359,856 (2016: 290,359,856) ordinary shares

of Rs. 10 each fully paid in cash 2,903,599 2,903,599
35,834,100 (2016: 35,834,100) ordinary shares
of Rs. 10 each issued as fully paid
for consideration other than cash 358,341 358,341
46,069,400 (2016: 46,069,400) ordinary shares of Rs. 10 each
issued as fully paid bonus shares 460,694 460,694
issued as fully paid right shares at discount 5.2.1 1,538,462 1,538,462
1,624,417 (2016: 1,624,417) ordinary shares of
Rs. 10 each issued as conversion of
preference shares into ordinary shares 5.2.2 16,244 16,244
527,733,926 5,277,340 5,277,340
5.2.1 During the financial year ended 30 June 2011, Company issued 153,846,153 shares at Rs. 6.50 per share at
a discount of Rs. 3.50 per share otherwise than right against Rs. 1,000 million to the Holding Company, after
complying with all procedural requirements in this respect.
5.2.2 During the financial years ended 30 June 2011 and 30 June 2012, 1,321,095 preference shares were converted into
1,624,417 ordinary shares at a conversion rate of 1.2296.
5.3 The Holding Company holds 291,410,425 (2016: 291,410,425) ordinary shares, which represents 55.22% (2016:
55.22%) of total ordinary issued, subscribed and paid-up share capital of the Company.
5.4 Zimpex (Private) Limited, an associated undertaking, holds Nil (2016: 1,706) ordinary shares of the Company.

2017 2016
6. CAPITAL RESERVES
Capital redemption reserve 6.1 528,263 528,263

Share premium reserve 6.2 1,529,874 1,529,874
2,058,137 2,058,137
6.1 This reserve has been created under section 85 of the repealed Companies Ordinance, 1984 for redemption
of preference shares.
6.2 This reserve can be utilized by the Company only for the purpose specified in section 83(2) of the repealed
Companies Ordinance, 1984.
2017 2016
7. SURPLUS ON REVALUATION OF FIXED ASSETS - NET OF TAX
At beginning of the year 5,984,429 6,345,722

Surplus on disposal of fixed assets during the year - net of deferred tax (23,419) (9,767)
Related deferred tax liability (3,694) (3,238)
Transfer to unappropriated profit in respect of incremental depreciation
charged during the year - net of deferred tax (223,092) (261,564)
At end of the year 5,659,065 5,984,429
Deferred tax liability on revaluation surplus

Transferred to unappropriated profit in respect of disposal of fixed
assets during the year (3,694) (3,238)
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year (75,159) (86,724)
Effect of change in tax rate and proportion of local and export sales 16,835 (107,504)
1,335,156 1,397,174
At end of the year 4,323,909 4,587,255

7.1 The Company’s freehold land, buildings on freehold land, roads, bridges and railway sidings and plant and
machinery were revalued by Arif Evaluators, an independent valuer not connected with the Company and
approved by Pakistan Banks’ Association (PBA) in “any amount” category, at 22 June 2015. The basis of
revaluation for items of these fixed assets were as follows:
Freehold land
Fair market value of freehold land was assessed through inquiries to real estate agents and property dealers
in near vicinity of freehold land. Different valuation methods and exercises were adopted according to
experience, location and other usage of freehold land. Valuer had also considered all relevant factors as well.
Buildings on freehold land, roads, bridges and railway sidings
Construction specifications were noted for each building and structure and new construction rates are
applied according to construction specifications for current replacement values. After determining current
replacement values, depreciation was calculated to determine the current assessed market value.
Plant and machinery
Suppliers and different cement plant consultants in Pakistan and abroad were contacted to collect information
regarding current prices of comparable cement plant to determine current replacement value. Fair depreciation
factor for each item is applied according to their physical condition, usage and maintenance.
2017 2016
8. LONG TERM LOANS FROM BANKING COMPANIES - SECURED
Askari Bank Limited - Term Finance 8.3 500,000 500,000

Bank of Punjab - Demand Finance 8.4 1,252,580 183,140
MCB Bank Limited - Demand Finance 8.5 675,590 122,079
National Bank of Pakistan - Demand Finance 8.6 675,590 122,079
3,103,760 927,298
8.1 Less: Current portion of long term loans from
banking companies - secured
Askari Bank Limited - Term Finance 8.3 25,000 -

Bank of Punjab - Demand Finance 8.4 62,629 -
MCB Bank Limited - Demand Finance 8.5 92,126 -
National Bank of Pakistan - Demand Finance 8.6 33,779 -
213,534 -
Long term portion of loans from banking companies 2,890,226 927,298
8.2 These are interest / mark-up based loans from conventional banks.

2017 2016
8.3 Askari Bank Limited - Term Finance
At beginning of the year 500,000 -

Add: Disbursements during the year - 500,000
Less: Payment made during the year - -
500,000 500,000
Less: Current maturity presented under current liabilities (25,000) -
At end of the year 475,000 500,000
During financial year 2016, the Company entered into term finance agreement with Askari Bank Limited for
Rs. 500 million. As per terms of the agreement, the tenor of loan is seven (7) years including two (2) years
grace period. The principal shall be repaid in twenty (20) equal, consecutive, quarterly installments of Rs. 25
million from 04 June 2018 to 04 March 2023. This facility carries mark-up rate at 3 months KIBOR+125
bps per annum to be paid quarterly in arrears.
This facility will be secured against 1st joint pari passu hypothecation charge and equitable mortgage
charge of Rs. 667 million over all present and future plant and machinery and land and building respectively
of cement unit-II. Disbursement has been made in tranches against ranking charge on all present and
future plant and machinery of the Company that shall be upgraded / replaced by aforesaid charge within
180 days from 1st draw down.
Personal guarantees also provided by Mr. Tariq Sayeed Saigol and Mr. Sayeed Tariq Saigol (sponsoring
directors) duly supported by net worth statements.
2017 2016
8.4 Bank of Punjab - Demand Finance

Add: Disbursements during the year 1,069,440 183,140
1,252,580 183,140
At end of the year 1,189,951 183,140
During the financial year 2016, the Company entered into demand finance agreement with The Bank
of Punjab for Rs. 1,500 million. The tenor of loan is seven (7) years including 24 months grace period.
Disbursement shall be made in tranches during the availability period as per terms of the agreement.
The principal shall be repaid in twenty (20) equal, consecutive, quarterly installments of Rs. 75 million each
starting from 31 March 2018 to 25 March 2023. Prepayment can be made after two (2) years of completion
of draw down, with a 30 days prior notice to the lenders without early payment penalty.
This facility carries mark-up rate at 3 months KIBOR+125 bps per annum to be paid quarterly in arrears.
charge over all present and future fixed assets of the Company with 25% margin. It is also secured by lien
over import documents.
A floating charge on fixed assets of Maple Leaf Power Limited shall be registered with 25% margin, before
establishment of LCs, which shall be vacated upon LC settlement / retirement.
Personal guarantees by Mr. Tariq Sayeed Saigol and Mr. Sayeed Tariq Saigol (sponsoring directors) duly
supported by net worth statements and cross corporate guarantee of the Company and Maple Leaf Power
Limited (MLPL) has also been provided.
2017 2016
8.5 MCB Bank Limited - Demand Finance

Add: Disbursements during the year 553,511 122,079
675,590 122,079
During the financial year 2016, the Company entered into demand finance agreement with MCB Bank
Limited for Rs. 1,000 million. The tenor of loan is seven (7) years including grace period of 18 months.
The principal shall be repaid in twenty two (22) equal, consecutive, quarterly installments of Rs. 45.45
million each starting from 14 October 2017 to 14 Jan 2023. Prepayment can be made after two (2) years
with a 30 days prior notice. This facility carries mark-up rate at 3 months KIBOR+115 bps per annum to be
paid quarterly in arrears. This facility will be secured against 1st joint pari passu hypothecation charge and
equitable mortgage charge over all present and future fixed assets of the Company with 25% margin.
2017 2016
8.6 National Bank of Pakistan - Demand Finance

675,590 122,079

During financial year 2016, the Company entered into demand finance agreement with National Bank of
Pakistan for Rs. 1,000 million. The tenor of loan is seven (7) years including two (2) years grace period.
Principal shall be repaid in twenty (20) equal quarterly installments of Rs. 50 million each starting from 30 April
2018 to 30 January 2023.
This facility will be secured against 1st joint pari passu hypothecation charge and equitable mortgage charge
over all present and future fixed assets of the Company amounting to Rs. 1,334 million. Disbursement is
being made in tranches against ranking charge of Rs. 1334 million over all present and future fixed assets of
the Company that shall be upgraded / replaced by aforesaid charge within 120 days from 1st draw down.
directors).
8.7 As per the financing document the Company is required to comply with certain financial covenants which
mainly include current ratio, minimum debt service coverage ratio, minimum interest coverage ratio, gearing
ratio and maximum leverage ratio. Further, the Company is required to comply with certain conditions
imposed by the providers of finance to make dividend payment.
8.8 As on 30 June 2017 Company has an un-availed long term facilities amounting to Rs. 11,000 million.
These facilities are sanctioned on 17 March 2017 by a consortium of banks led by National Bank of
Pakistan amounting to Rs 9,000 million and MCB Bank Limited (formally NIB Bank Limited) amounting
to Rs. 2,000 million and carry markup at the rate of 3 months KIBOR plus 0.75 %. Tenure of the facilities
would be nine (9) years including a grace period of 2 years from the date of disbursement.
These facilities are secured against joint first pari passu hypothecation charge of Rs 14,666.67 million over
fixed assets of the Company.
2017 2016
9. LIABILITIES AGAINST ASSETS SUBJECT TO

FINANCE LEASE - SECURED
Present value of minimum lease payments 9.1.1 480,615 646,762

Less: Current maturity presented under current liabilities (210,000) (167,519)
270,615 479,243
Taxes, repair and insurance costs are borne by the Company. The Company intends to exercise its option to
purchase the above assets upon completion of the lease period.

9.1 The amount of future lease payments and the period in which they will become due are as follows:
2017 2016
Minimum lease payments:
Not later than one year 225,962 187,683

Later than one year but not later than five years 274,663 496,592
500,625 684,275
Less: Finance cost allocated to future period (20,010) (37,513)
480,615 646,762
270,615 479,243
9.1.1 Present value of minimum lease payments

480,615 646,762
9.2 The Company had entered into restructuring agreement of lease facility outstanding amount with Islamic
Corporation for the Development of Private Sector (“ICD”) on 17 December 2012 (“the Effective Date”) to acquire
power generation plant Wartsila. Finance lease liabilities are obtained from conventional leasing companies.
As per terms of restructuring agreement, the outstanding principal as at 30 June 2017 amounting to USD
4.58 million is to be repaid in six installments as per following schedule terms:
Period No. of Amount (USD) Total

Installments Per installment Amount (USD)
15 September 2017 - 15 June 2018 4 500,000 2,000,000

15 September 2018 - 15 December 2018 2 1,288,643 2,577,286
This facility carries mark-up rate at six months USD LIBOR plus a spread of 2.50% per annum. During the
current year mark-up has ranged from 3.44% to 3.92% (2016: 2.95% to 3.57%) per annum.
10. LONG TERM DEPOSITS
These represent deposits received from dealers and are being utilized by the Company in accordance with the
terms of dealership agreements.

2017 2016
11. DEFERRED TAXATION
Deferred tax liability on taxable temporary differences arising in respect of:
- accelerated tax depreciation on fixed assets 2,744,010 2,809,851

- surplus on revaluation of fixed assets 1,335,156 1,397,174
4,079,166 4,207,025
Deferred tax asset on deductible temporary differences
arising in respect of:
- liabilities against assets subject to finance lease (16,807) (52,526)

- employees’ retirement benefits (37,996) (29,826)
(54,803) (82,352)
4,024,363 4,124,673
11.1 Movement in deferred tax balances is as follows:

Recognized in profit and loss account:
- accelerated tax depreciation on fixed assets (65,841) (358,927)
- surplus on revaluation of fixed assets (78,853) (89,962)
- unused tax losses - 706,403
- liabilities against assets subject to finance lease 35,719 27,119
- provision for doubtful debts - 1,027
- tax credits utilized / (tax credits) under section 113, 113C
and 65B of Income Tax Ordinance, 2001 - 1,248,602
(112,254) 1,533,179
Recognized in surplus on revaluation of fixed assets
Effect of change in proportion of local and export sales 16,835 (107,504)
Recognized in other comprehensive income:

- employees’ retirement benefits (4,891) 544
4,024,363 4,124,673

2017 2016
12. RETIREMENT BENEFITS
Accumulated compensated absences 12.1 76,360 57,059

Gratuity 12.2 74,418 62,724
150,778 119,783
12.1 Accumulated compensated absences
At beginning of the year 57,059 41,138

Provision for the year 29,825 23,809
Less: Payments made during the year (10,524) (7,888)
12.2 Gratuity
The latest actuarial valuation of the Company’s defined benefit plan, was conducted on 30 June 2017
using projected unit credit method. Detail of obligation for defined benefit plan is as follows:
The amounts recognized in the balance sheet are as follows:
2017 2016
Present value of defined benefit obligation 12.2.1 153,921 131,316

Less: Fair value of plan assets 12.2.2 (79,503) (68,592)
Net liability at end of the year 74,418 62,724
Net liability at beginning of the year 62,724 68,550

Charge to profit and loss account for the year 12.2.3 9,018 11,494
Charge to other comprehensive income for the year 12.2.3 19,408 (2,185)
Less: Contribution made during the year (16,732) (15,135)

12.2.1 Movement in the present value of defined benefit obligations is as follows:
2017 2016
Present value of defined benefit obligations at beginning of the year 131,316 137,998
Current service cost for the year 5,076 5,548
Interest cost for the year 8,914 12,717
Actuarial losses / (gain) on present value of defined benefit obligations 25,347 (9,812)
Less: Benefits paid during the year (16,732) (15,135)
Present value of defined benefit obligation at end of the year 153,921 131,316
12.2.2 Movement in the fair value of plan assets is as follows:
Fair value of plan assets at beginning of the year 68,592 69,448

Contributions made during the year 16,732 15,135
Expected return on plan assets for the year 4,972 6,771
Actuarial loss / (gain) on plan assets 5,939 (7,627)
Fair value of plan assets at end of the year 79,503 68,592
Fair value of plan assets are as follows:
NIB Bank including accrued interest 37,000 37,000

NAFA Government Securities Liquid Fund 19,435 14,449
Trust Investment Bank including accrued interest 15,000 15,000
Cash at bank 8,068 2,143
79,503 68,592
2017 2016
(Percentage)
Plan assets comprise of:
Equity 24.45% 21.06%

Cash at bank 75.55% 78.94%
100.00% 100.00%

2017 2016
12.2.3 Charge for the year
In profit and loss account

Expected return on plan assets for the year (4,972) (6,771)
9,018 11,494
In other comprehensive income
Actuarial losses / (gain) on retirement benefits - net 19,408 (2,185)
28,426 9,309
12.2.4 Movement in actuarial gain is as follows:
At beginning of the year - -

Actuarial (gain) / loss on present value (5,939) 7,627
Remeasurement of loss / (gain) on defined benefit obligation 25,347 (9,812)
19,408 (2,185)
Actuarial (gains) / losses recognised directly in other
comprehensive income (19,408) 2,185
- -
Actuarial assumptions
The following are the principal actuarial assumptions at 30 June:

2017 2016
(Percentage)
Discount rate used for year end obligations 7.25% 7.25%

Expected return on plan assets 7.25% 9.75%
Expected rate of growth per annum in future salaries 6.75% 6.25%
Expected mortality rate SLIC 2001-2005 SLIC 2001- 2005
Setback 1 Year Setback 1 Year
Retirement assumptions 60 Years 60 Years
12.3 The Company expects to charge Rs. 10.98 million to unconsolidated profit and loss account on account of
defined benefit plan in 2018.

12.4 Sensitivity analysis
If the significant actuarial assumptions used to estimate the defined benefit obligation at the reporting date,
had fluctuated by 100 bps with all other variables held constant, the present value of the defined benefit
obligation as at 30 June 2017 would have been as follows:
Gratuity
Impact on present value of
defined benefit obligation
Increase Decrease
Discount rate + 100 bps 146,340 124,305
Future salary increase + 100 bps 162,250 139,050
The sensitivity analysis of the defined benefit obligation to the significant actuarial assumptions has been
performed using the same calculation techniques as applied for calculation of defined benefit obligation
reported in the balance sheet.
12.5 At 30 June 2017, the weighted average duration of the defined benefit obligation was 6 years ( 2016: 6 years).
2017 2016
13. TRADE AND OTHER PAYABLES
Trade creditors 690,865 713,785

Bills payable - secured 13.1 3,955 53,375
Accrued liabilities 13.4 593,777 488,475
Advances from customers 13.5 253,779 246,502
Security deposits repayable on demand 13.2 55,976 54,076
Contractors’ retention money 97,309 47,952
Royalty and Excise Duty payable 33,569 31,645
Payable to Provident Fund Trust 10,485 7,791
Other Taxes payable 97,876 54,918
Sales Tax payable - net 234,507 332,980
Excise Duty payable 203,091 192,379
Unclaimed dividend 100,424 41,191
Preference dividend payable 795 1,013
Payable to Workers’ Profit Participation Fund 13.3 1,140,473 766,299
Payable to Workers’ Welfare Fund 157,210 131,539
Payable against redemption of preference shares 1,041 1,519
Other payables 5,214 28,144
3,680,346 3,193,583

13.1 These are secured against the securities as detailed in note 16.1 to these unconsolidated financial statements.
13.2 This represents security deposits received from distributors and contractors of the Company. Distributors
and contractors have given the Company a right to utilize deposits in ordinary course of business.
2017 2016
13.3 Payable to Workers’ Profit Participation Fund

Allocation for the year 368,876 381,213
Interest for the year 5,298 5,311
Less: Paid during the year - (89,119)
At end of the year 1,140,473 766,299
13.3.1 The outstanding WPPF liability includes Rs. 677.4 million being the left over amount out of the total WPPF
liability of Rs. 766.30 million pertaining to the financial year ended 30 June 2012 to 30 June 2016. The amount
is payable to the WPPF as decided by the Honorable Lahore Court through order dated 04 May 2016.
13.4 This includes Rs. 227.38 million booked on account of Gas Infrastructure Development Cess (GIDC) for
the period from September 2014 to June 2017. The Company, along with various other companies has
challenged the legality and validity of levy and demand of GIDC in Honorable Lahore High Court which is
pending adjudication. However, on a prudent basis, the Company has recorded the GIDC amount for the
mentioned period. Further, due to non payment, default surcharge of Rs. 135.80 million for the period from
September 2015 to June 2017 has been imposed on the Company, which has not been recorded in these
unconsolidated financial statement based on the opinion of legal advisor. The management is hopeful that
the Company will not be required to pay the default surcharge.
13.5 This includes balance of Rs. 0.258 million (2016: Nil) payable to KTML - Holding Company against sale of
cement.
2017 2016
14. ACCRUED PROFIT / INTEREST / MARK-UP
Profit / interest / mark-up accrued on:

- Long term loans 49,674 10,435
- Redeemable capital - 440
- Syndicated term finances - 9
- Liabilities against assets subject to finance lease 898 1,224
- Short term borrowings 50,893 24,699
101,465 36,807
14.1 Interest / mark-up accrued on all loans are from conventional banks.

2017 2016
15. PROVISION FOR TAXATION - NET

Tax deducted / deposited at source (526,869) (332,781)
Advance income tax paid (1,462,378) (300,000)
(1,785,002) (495,529)
Less: Provision for taxation:
- current (2,188,241) (647,042)
- prior (17,288) (52,732)
(2,205,529) (699,774)
420,527 204,245
15.1 The deemed assessment earlier made under section 120(1) of the Ordinance has been rectified through
order dated 10 May 2011 passed u/s 221 of the Ordinance on the grounds that minimum tax liability payable
u/s 113 of the Ordinance of Rs. 34.60 million for the tax year 2010 was leviable in addition to taxes payable
under various final tax regimes. The Company has contested the rectification order in appeal before the ATIR,
which has been disposed through appellate order dated 09 July 2014 in favour of the Company. The appeal
order has not yet been issued by the department in this respect.
order dated 02 February 2011 passed u/s 221 of the Ordinance on the grounds that minimum tax liability
payable u/s 113 of the Ordinance of Rs. 35.69 million was also leviable in addition to taxes payable under
various final tax regimes. The Company has contested the rectification order in appeal before the ATIR, which
has not been taken up for hearing to date.
15.3 Through Order-in-Original No.18/2009 dated 24 December 2009, the tax department finalized the adjudication
proceeding in respect of audit conducted by the department auditors for tax year 2009 and raised a demand
of principal sales tax and FED aggregating to Rs. 336.74 million along with applicable default surcharges and
penalties. The Company preferred appeal against such order under the applicable provisions of Sales Tax
Act, 1990 and Federal Excise Act, 2005 before the Commissioner of Inland Revenue (appeals).
It is, however, appropriate to highlight that the Company has also filed a writ petition with the Honorable
Lahore High Court against the above referred Order-In-Original demand. The Honorable Lahore High Court
has ordered that the tax department be restrained from taking any measures against the Company.
15.4 Through Order-In-Original No. 10/2011 dated 30 July 2011, Company’s refund claim of Central Excise Duty
(CED) of Rs. 913.01 million representing the excess payment of duty based on an inadvertent computation of
related ‘retail price’ of cement products manufactured and supplied by the Company, was rejected principally
on the grounds that related incidence of duty has been passed on to the consumers and hence the resultant
refund claim is hit by the mischief of provisions of then applicable section 3(d) of the Central Excise Act, 1944.
The Company preferred appeal against the said order before the CIR(A) both on legal as well as factual
grounds, however, such appeal was not entertained by the Commissioner of Inland Revenue (Appeals) and
accordingly, the matter has been further agitated in appeal by the Company before the Appellate Tribunal
Inland Revenue (“ATIR”).
15.5 Company filed appeal before Appellate Tribunal Inland Revenue [ATIR] against Commissioner Inland Revenue
(CIR appeals) order for tax years 2009. The Appellate Tribunal Inland Revenue [ATIR] have accepted all
issues except for the issue of apportionment of expenses to dividend income and investment income which
was remanded back to the taxation officer. The company has filed an application with the tax department
for issuance of appeal effects of aforementioned appellate order. The tax department has assailed the relief
granted by CIR(A) to the Company before ATIR and this appeal is pending adjudication.
15.6 The Additional Commissioner Inland Revenue (ACIR) through notices u/s 122(9) b/122(5A) of the Income Tax
Ordinance 2001 dated 16 March 2016 and 03 May 2017 and raised demand amounting to Rs 1,001.39
million pertaining to tax year 2016 on account of disallowance of carry-forward losses and disallowance
of adjustment of prior year refunds amounting to Rs 625.563 million and Rs 375.825 million respectively.
Company filed appeal against the above referred order before the Commissioner Inland Revenue (Appeals)
[‘CIR(A)’] who allowed relief to the extent of Rs 332.138 million on account of adjustment of ‘minimum tax’
and also directed the officer to allow adjustment of prior year refunds after verification. The Company has also
filed an appeal against the above referred appellate orders before Appellate Tribunal Inland Revenue dated
07 August 2017 which is pending for adjudication.
15.7 The Additional Commissioner Inland Revenue (ACIR) through an order u/s 122(5A) of the Income Tax
Ordinance 2001 dated 27 December 2016, initiated proceeding against the Company intending to amend
the deemed assessment of various issues and raised a tax demand of Rs. 241.74 million. The Company filed
an appeal before CIR (A). CIR (A) decided all the matters except for the issue of inclusion of exchange gain
related to export sales in favor of the Company. The department has challenged CIR (A) decision before ATIR
which is pending adjudication.
Ordinance 2001 dated 31 October 2016, initiated proceeding against the Company intending to amend
the deemed assessment of various issues and raised a tax demand of Rs. 68 million. The Company filed
an appeal before CIR (A). CIR (A) decided all the matters except for the issue of inclusion of exchange gain
related to export sales in favor of the Company. The department has challenged CIR (A) decision before ATIR
which is pending adjudication.
15.9 Through notices dated 19 February 2016 and 23 January 2017 issued under section 122 (9) / 122 (5A) of
the Income Tax Ordinance 2001, the Company was confronted on the issue of non-charging of Super Tax
imposed under section 4B of the Income Tax Ordinance 2001 for tax years 2015 and 2016 respectively . The
subject notices were challenged by the Company through filling a writ petition before Honorable Lahore High
Court. Further, Honorable Lahore High Court through its interim order, has directed the department not to
pass any order in pursuance of the subject notice.
15.10 The Company has preferred an appeal against the order in original No. 576/99 dated 18 September 1999,
whereby the Company was denied the benefit of SRO 484(1)/92 dated 14 May 1992, and SRO 978(1)/95
dated 04 October 1995. Accordingly the demand of Rs. 0.81 million was raised against the Company.
Appeal was dismissed by Central Excise and Sales Tax Tribunal on 19 May 2009. The Company has filed
petition before the Honorable Lahore High Court, which is pending adjudication. A rectification application
under section 194 is also pending before the Customs, Federal Excise and Sales Tax Appellate Tribunal
beside the customs reference. No provision has been made in these unconsolidated financial statements as
the management and the Company’s legal advisor are confident that the ultimate outcome of this case will
be in favor of the Company.
Based on opinion of the Company’s legal counsel, management is confident of favorable outcome in all
aforementioned matters, hence no provision is being recognized in respect of these matters in the unconsolidated

2017 2016
16. SHORT TERM BORROWINGS
Banking and financial institutions:
- Cash finance and others 16.1 2,820,233 1,398,000

- Running finance 16.2 255,890 9,707
Temporary bank overdrafts - unsecured 16.3 62,036 17,204
3,138,159 1,424,911
16.1 These facilities have been obtained from various banking companies for working capital requirements
and are secured by charge over current and future assets of the Company, personal guarantees of the
Directors, pledge of stock, lien over import documents and title of ownership of goods imported under
letters of credit. These facilities will be expiring on various dates by 30 June 2018.
The cash finance and other facilities carry mark-up at the rates ranging from 2.75% to 16.78 % (2016:
4.25% to 19%) per annum payable quarterly.
The Company has unavailed cash finance and others funded facilities aggregating Rs.740 million (2016:
Rs. 663 million) at the year end and the Company has unavailed facilities for opening letters of credit /
guarantee aggregating Rs. 2,032 million (2016: Rs.2,938 million) at the year end.
16.2 The Company has unavailed running finance funded facilities aggregating Rs.393 million (2016: 325 million)
The running finance carry mark-up at the rates ranging from 6.33 % to 8.75 % (2016: 6.75% to 9.49%) per
annum payable quarterly.
16.3 This represents temporary overdraft due to cheques issued by the Company at the reporting date.
16.4 All loans are interest / mark-up based from conventional banks.
17. CONTINGENCIES AND COMMITMENTS

17.1 Contingencies
17.1.1 The Company has filed writ petitions before the Honorable Lahore High Court against the legality of
judgment passed by the Customs, Excise and Sales Tax Appellate Tribunal whereby the Company was held
liable on account of wrongful adjustment of input sales tax on raw materials; the amount involved pending
adjudication before the Honorable Lahore High Court is Rs.10.01 million. No provision has been made in
these unconsolidated financial statements in respect of the matter as the management and the Company’s
legal advisor are confident that the ultimate outcome of this case will be in favor of the Company.
17.1.2 The Company has filed an appeal before the Customs, Central Excise and Sales Tax Appellate Tribunal,
Karachi against the order of the Deputy Collector Customs whereby the refund claim of the Company
amounting to Rs. 12.35 million was rejected and the Company was held liable to pay an amount of Rs.
37.05 million by way of 10% customs duty allegedly leviable in terms of SRO 584(I)/95 and 585(I)/95
dated 01 July 1995. The impugned demand was raised by the department on the alleged ground that the
Company was not entitled to exemption from payment of customs duty and sales tax in terms of SRO
279(I)/94 dated 02 April 1994.

The Honorable Lahore High Court, upon the Company’s appeal, vide its order dated 06 November 2001
has decided the matter in favor of the Company; however, the Collector of Customs has preferred a petition
before the Honorable Sindh High Court, which is pending adjudication. No provision has been made in these
unconsolidated financial statements in respect of the above stated amount as the management and the
Company’s legal advisor are confident that the ultimate outcome of this case will be in favor of the Company.
17.1.3 The Federal Board of Revenue (FBR) has filed an appeal before the Honorable Supreme Court of Pakistan
against the judgment delivered by the Honorable Lahore High Court in favor of the Company in a writ
petition. The Company, through the said writ petition, had challenged the demand raised by the FBR
for payment of duties and taxes on the plant and machinery imported by the Company pursuant to the
exemption granted in terms of SRO 484 (I) / 92 dated 14 May 1992. The FBR, however, alleged that the
said plant & machinery could be locally manufactured and duties and taxes were therefore not exempted.
A total demand of Rs. 1,386.72 million was raised by the FBR out of which an amount of Rs. 269.33 million
was deposited by the Company as undisputed liability. No provision has been made in these unconsolidated
financial statements in respect of the above stated amount as the management and the Company’s legal
advisor are confident that the ultimate outcome of this case will be in favor of the Company.
17.1.4 The Company has filed an appeal before the Honorable Supreme Court of Pakistan against the judgment
of the Division Bench of the Honorable High Court of Sindh at Karachi. The Division Bench, by judgment
dated 15 September 2008, has partly accepted the appeal by declaring that the levy and collection of
infrastructure cess / fee prior to 28 December 2006 was illegal and ultra vires and after 28 December 2006,
it was legal and the same was collected by the Excise Department in accordance with the law. The appeal
has been filed against the declaration that after 28 December 2006, the Excise Department has collected
the infrastructure cess / fee in accordance with law. The Province of Sindh and Excise and Taxation
Department has also preferred an appeal against the judgment decided against them. The Honorable
Supreme Court consolidated both the appeals and were set aside. Thereafter, law has been challenged in
constitution petition in the Honorable Sindh High Court Karachi. Stay has been granted by the Honorable
High Court on 31 May 2011 on payment of 50% of the cess to the Excise Department and on furnishing
of bank guarantee for remaining 50% to them. The petition is pending for hearing and stay is continuing.
The management and the Company’s legal advisor are confident that the ultimate outcome of this case will
be in favor of the Company.
17.1.5 Competition Commission of Pakistan, vide order dated 27 August 2009, has imposed penalty on twenty
cement factories of Pakistan at the rate of 7.5% of the turnover value. The Commission has imposed
penalty amounting to Rs. 586.19 million on the Company. The Commission has alleged that provisions
of section 4(1) of the Competition Commission Ordinance, 2007 have been violated. However, after the
abeyance of Honorable Islamabad High Court pursuant to the judgment of Honorable Supreme Court of
Pakistan dated 31 July 2009, the titled petition has become infructuous and the Company has filed a writ
petition No. 15618/2009 before the Honorable Lahore High Court. No provision has been made in these
unconsolidated financial statements as the management and the Company’s legal advisor are confident
that the ultimate outcome of this case will be in favor of the Company.
17.1.6 The Additional Collector, Karachi has issued show cause notice alleging therein that the Company has
wrongly claimed the benefits of SRO No. 575(I)/2006 dated 05 June 2006 on the import of pre-fabricated
buildings structure. Consequently, the Company is liable to pay Government dues amounting to Rs. 5.55
million. The Company has submitted reply to the show cause notice and currently proceedings are pending
before the Additional Collector. No provision has been made in these unconsolidated financial statements
as the management and the Company’s legal advisor are confident that the ultimate outcome of this case
will be in favor of the Company.
17.1.7 The customs department has filed an appeal against the judgment dated 19 May 2009, passed in favor of
the Company pursuant to which the Company is not liable to pay custom duty amounting to Rs. 0.59 million
relating to import of some machinery vide L/C No. 0176-01-46-518-1201 in terms of SRO 484(1)/92 dated
14 May 1992, and SRO 978(1)/95 dated 04 October 1995. The appeal is pending before the Honorable
Lahore High Court. No provision has been made in these unconsolidated financial statements as the
management and the Company’s legal advisor are confident that the ultimate outcome of this case will be
in favor of the Company.
17.1.8 Surcharge of Rs. 154 million has been imposed by Mines and Minerals Department, Government of the
Punjab under Rule 68(2) of Punjab Mining Concession Rules, 2002 (“Rules”) against which the Company
has filed writ petition against Government of Punjab via writ petition No. 1008/2014 to challenge the basis
of Rules. The titled petition is currently pending before the Honorable Lahore High Court. Management
and the Company’s legal advisor are confident that the ultimate outcome of this case will be in favor of the
Company.
17.1.9 Guarantees given by banks on behalf of the Company are of Rs. 483.387 million (2016: Rs. 463.32 million)
in favor of Sui Northern Gas Pipeline Limited and Government Institutions.
17.1.10 Contingencies relating to tax matters are disclosed in note 15 to these unconsolidated financial statements.
2017 2016
17.2 Commitments
17.2.1 in respect of:
- capital expenditure 14,954,991 94,606

- irrevocable letters of credit for spare parts 847,495 1,204,256
15,802,486 1,298,862
18. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 18.1 22,168,016 22,399,800

Capital work in progress - at cost 18.6.1 1,479,647 422,694
23,647,663 22,822,494

18.1 Operating fixed assets
Cost / Revalued amount Depreciation
Net book
At At At At
For the value at
01 July Additions Disposals 30 June Rate 01 July Disposals 30 June
year 30 June
2016 2017 2016 2017 2017
------------------- Rupees in thousand ------------------- Percentage ---------------------- Rupees in thousand ----------------------
Owned
Freehold land
- cost 56,810 - (1,792) 55,018 - - - - - 55,018
- surplus on revaluation 373,286 - (12,456) 360,830 - - - - - 360,830
430,096 - (14,248) 415,848 - - - - 415,848

Buildings on freehold land
- cost 4,747,570 435,709 (120,411) 5,062,868 5 - 10 2,006,104 213,065 (48,149) 2,171,020 2,891,848
- surplus on revaluation 303,168 - (5,561) 297,607 5 - 10 83,393 11,434 (3,557) 91,270 206,337
5,050,738 435,709 (125,972) 5,360,475 2,089,497 224,499 (51,706) 2,262,290 3,098,185
Roads, bridges and railway sidings

- cost 96,927 3,026 - 99,953 5 - 10 74,400 2,313 - 76,713 23,240
- surplus on revaluation 3,854 - - 3,854 5 - 10 1,925 200 - 2,125 1,729
100,781 3,026 - 103,807 76,325 2,513 - 78,838 24,969
Plant and machinery

- cost 24,902,357 1,300,293 (239,601) 25,963,049 5 - 20 12,064,231 1,289,088 (149,132) 13,204,187 12,758,862
- surplus on revaluation 7,294,860 - (23,754) 7,271,106 5 - 20 1,907,250 286,617 (11,101) 2,182,766 5,088,340
32,197,217 1,300,293 (263,355) 33,234,155 13,971,481 1,575,705 (160,233) 15,386,953 17,847,202
Furniture, fixtures and equipment 368,900 68,718 (34,628) 402,990 10 - 30 188,869 36,115 (31,781) 193,203 209,787
Quarry equipment 185,023 - - 185,023 20 165,608 3,882 - 169,490 15,533
Vehicles 212,407 52,613 (21,792) 243,228 20 92,500 29,369 (18,237) 103,632 139,596
Share of joint assets 6,000 - - 6,000 10 4,726 127 - 4,853 1,147
38,551,162 1,860,359 (459,995) 39,951,526 16,589,006 1,872,210 (261,957) 18,199,259 21,752,267
Leased
Plant and machinery
- cost 679,676 - - 679,676 5 243,861 21,895 - 265,756 413,920
- surplus on revaluation 2,852 - - 2,852 5 1,023 - - 1,023 1,829
682,528 - - 682,528 244,884 21,895 - 266,779 415,749
2017 39,233,690 1,860,359 (459,995) 40,634,054 16,833,890 1,894,105 (261,957) 18,466,038 22,168,016


Net book
At At At At
For the value at
year 30 June
2015 2016 2015 2016 2016
Owned
Freehold land
- cost 56,810 - - 56,810 - - - - - 56,810
- surplus on revaluation 373,286 - - 373,286 - - - - - 373,286
430,096 - - 430,096 - - - - 430,096
- cost 4,550,741 217,969 (21,140) 4,747,570 5 - 10 1,826,601 198,789 (19,286) 2,006,104 2,741,466
- surplus on revaluation 303,364 - (196) 303,168 5 - 10 70,589 12,869 (65) 83,393 219,775
4,854,105 217,969 (21,336) 5,050,738 1,897,190 211,658 (19,351) 2,089,497 2,961,241
- cost 95,583 1,344 - 96,927 5 - 10 71,968 2,432 - 74,400 22,527
99,437 1,344 - 100,781 73,683 2,642 - 76,325 24,456
Plant and machinery
- cost 24,740,485 467,222 (305,350) 24,902,357 5 - 20 11,007,926 1,190,546 (134,241) 12,064,231 12,838,126
32,053,051 467,222 (323,056) 32,197,217 12,584,895 1,525,659 (139,073) 13,971,481 18,225,736
Furniture, fixtures and equipment 304,288 64,800 (188) 368,900 10 - 30 162,861 26,173 (165) 188,869 180,031
Quarry equipment 197,795 - (12,772) 185,023 20 173,444 4,869 (12,705) 165,608 19,415
Vehicles 171,091 47,989 (6,673) 212,407 20 75,356 23,484 (6,340) 92,500 119,907
38,115,863 799,324 (364,025) 38,551,162 14,972,016 1,794,624 (177,634) 16,589,006 21,962,156
Leased
Plant and machinery
- cost 679,676 - - 679,676 5 220,923 22,938 - 243,861 435,815
- surplus on revaluation 2,852 - - 2,852 5 927 96 - 1,023 1,829
682,528 - - 682,528 221,850 23,034 - 244,884 437,644
2016 38,798,391 799,324 (364,025) 39,233,690 15,193,866 1,817,658 (177,634) 16,833,890 22,399,800
18.2 Additions in operating fixed assets include transfers from capital work-in-progress amounting to Rs. 560.727 million (2016: Rs. 296.80 million).
18.3 Ownership of the housing colony’s assets included in the operating fixed assets is shared by the Company jointly with Agritech Limited in ratio of 101:245
since the time when both the companies were managed by Pakistan Industrial Development Corporation. These assets are in possession of the
housing colony establishment for mutual benefits.

18.4 Depreciation charge for the year has been allocated as follows:
2017 2016
Cost of sales 34 1,849,351 1,784,695

Administrative expenses 36 43,290 32,963
Distribution expenses 35.2 1,464 -
1,894,105 1,817,658
18.5 Disposal of Property, plant and equipment

Net
Particulars Cost Accumulated Book Sale Gain Mode of Particulars of
Depreciation Value Value / (Loss) Disposal Purchaser
(----------- Rupees in thousand -----------)
Plant and machinery
Mechanical Workshop Equipments 2,526 2,273 253 132 (121) Auction M. Saddique & Co.
Gas Valve 750 417 333 244 (89) Auction M/s. Maqsood & Brothers
Valve Seat Exhaust 1,206 694 512 393 (119) Auction M/s. Maqsood & Brothers
Slide Shoe Fixed 2,605 626 1,979 398 (1,581) Insurance Claim M/s. EFU General Insurance Co.
Humidity Cabinet 1,169 333 836 178 (658) Insurance Claim M/s. EFU General Insurance Co.
Welding Plant 623 383 240 95 (145) Insurance Claim M/s. EFU General Insurance Co.
Intelligent Panel 1,709 409 1,300 261 (1,039) Insurance Claim M/s. EFU General Insurance Co.
Fuel Feed Pump Complete 3,846 2,260 1,586 587 (999) Insurance Claim M/s. EFU General Insurance Co.
Service Kits and Flender Drive 102,028 88,264 13,764 15,569 1,805 Insurance Claim M/s. EFU General Insurance Co.
Bucket Elevator 4,980 2,468 2,512 760 (1,752) Insurance Claim M/s. EFU General Insurance Co.
Shaft Machine 956 694 262 146 (116) Insurance Claim M/s. EFU General Insurance Co.
Inducer Wheel 841 610 231 128 (103) Insurance Claim M/s. EFU General Insurance Co.
Compressors 1,024 743 281 156 (125) Insurance Claim M/s. EFU General Insurance Co.
Gas Analyzer 1,198 211 987 448 (539) Auction M/s. Niaz & Co.
LECO-250 Electronic 384 97 287 187 (100) Auction M/s. Niaz & Co.
Rollers 14,006 12,122 1,884 2,676 792 Auction M/s. Niaz & Co.
Load Cell 857 217 640 110 (530) Auction M/s. Niaz & Co.
Gas Inlet Casing 529 175 354 416 62 Auction M/s. Niaz & Co.
Fiber Glass Tank 204 66 138 160 22 Auction M/s. Niaz & Co.
Nozzel Air Assembly 2,344 686 1,658 255 (1,403) Auction M/s.Imtiaz Traders
Slide Shoe Moveable 4,031 968 3,063 1,878 (1,185) Auction M/s.Imtiaz Traders
Impeller 620 480 140 68 (72) Auction M/s.Imtiaz Traders
Dust Collecting Blower 846 585 261 92 (169) Auction M/s.Imtiaz Traders
Transmission Shaft 585 386 199 64 (135) Auction M/s.Imtiaz Traders
Air Blasters 4,421 2,308 2,113 1,938 (175) Auction M/s.Imtiaz Traders
Hydraulic Drive Cylinder 2,843 789 2,054 310 (1,744) Auction M/s.Imtiaz Traders
Rotary Blower 312 214 98 34 (64) Auction M/s.Imtiaz Traders
Roller Tyre 8,103 5,000 3,103 2,852 (251) Auction M/s.Imtiaz Traders
Stainless Steel Hose 356 272 84 39 (45) Auction M/s.Imtiaz Traders
X-Ray Tube 1,595 898 697 440 (257) Auction M/s.Imtiaz Traders
Shut Off Gate 2,193 806 1,387 608 (779) Auction M/s.Imtiaz Traders
Electric Hilti Machine 233 168 65 25 (40) Auction M/s.Imtiaz Traders
Lynx Camera 5,313 1,276 4,037 2,475 (1,562) Auction M/s.Imtiaz Traders
Host With Motor 843 247 596 92 (504) Auction M/s.Imtiaz Traders
Pipe for Coal Material 440 Heat Resistant 2,158 1,718 440 288 (152) Auction M/s.Imtiaz Traders
Hydraulic Breaker 2,859 902 1,957 776 (1,181) Auction M/s.Imtiaz Traders
Weighbridge Steel Plate Form 1,425 369 1,056 648 (408) Auction M/s.Imtiaz Traders
Valve Inlet Air Complete Unit 1,100 314 786 482 (304) Auction M/s.Imtiaz Traders
Gear Box 497 229 268 54 (214) Auction M/s.Imtiaz Traders
Bearings 20,961 7,101 13,860 2,282 (11,578) Auction M/s.Imtiaz Traders
Axial Fan With Motor Complete 3,026 959 2,067 821 (1,246) Auction M/s.Imtiaz Traders
Cover For Cable 981 163 818 107 (711) Auction M/s.Imtiaz Traders
RH Wire Feed Unit 326 151 175 35 (140) Auction M/s.Imtiaz Traders
Net
Depreciation Value Value / (Loss) Disposal Purchaser
Lime Stone Bin 2,072 622 1,450 226 (1,224) Auction M/s.Imtiaz Traders
Kinetrol Van Actuator Complete 133 59 74 14 (60) Auction M/s.Imtiaz Traders
Gas Conditioning Equipment 4,625 1,666 2,959 1,174 (1,785) Auction M/s.Imtiaz Traders
Compressors 161 68 93 18 (75) Auction M/s.Imtiaz Traders
Domestic Feeder 8,062 2,617 5,445 3,268 (2,177) Auction M/s.Imtiaz Traders
Rollers 657 121 536 71 (465) Auction M/s.Imtiaz Traders
Side Liner 785 171 614 85 (529) Auction M/s.Imtiaz Traders
Drive Plate Inlet 5,091 1,608 3,483 1,383 (2,100) Auction M/s.Imtiaz Traders
Magnet Separator 1,150 1,035 115 70 (45) Auction M/s.Imtiaz Traders
Rotary Sluice Complete 3,939 1,365 2,574 1,803 (771) Auction M/s.Muhammad Hayat
Change Over Valve 2,292 403 1,889 876 (1,013) Auction M/s.Muhammad Hayat
Side Liner 8,646 3,550 5,096 1,964 (3,132) Auction S.N International Lahore
Gyro Prima Whip Complete 1,316 156 1,160 461 (699) Auction S.N International Lahore
Compressors 2,466 973 1,493 592 (901) Auction S.N International Lahore
Suspended Electromagnetic 7,390 3,141 4,249 1,686 (2,563) Auction S.N International Lahore
Filter Bronze 1,936 802 1,134 450 (684) Auction S.N International Lahore
Cooler 1,922 797 1,125 447 (678) Auction S.N International Lahore
262,055 159,205 102,850 54,295 (48,555)

Vehicles
Honda Civic LE-11-717 1,953 1,391 562 1,200 638 Auction Mr.M. Asif S/O. M.Akram
Honda Civic LEB-07-5131 1,461 1,305 156 660 504 Auction Mr.Rana Shamshir
Honda Civic LEB-09-6040 1,924 1,561 363 1,205 842 Auction Mr.Muhammad Yousaf Nabeel
Honda Civic LED-09-3499 1,896 1,483 413 1,230 817 Auction Mr.Muhammad Mushtaq
Toyota Corolla LE-10-5156 1,446 1,052 394 700 306 Auction Mr.Talha Bin Shehzad
Toyota Corolla LEJ-07-8507 1,423 1,223 200 826 626 Auction Mr.Tariq Amjad
Toyota Corolla LED-08-4095 1,350 1,140 210 865 655 Auction Mr.Habibullah Khan
Suzuki Cultus APY-646 792 654 138 372 234 Auction Mr.Haroon Ameer
Suzuki Cultus LEC-09-7102 803 660 143 656 513 Auction Mr.Faisal Yaqoob
Suzuki Cultus LEE-12-6646 1,037 601 436 822 386 Auction Mr.Muhammad Awais
Suzuki Cultus LEF-12-2803 1,036 589 447 780 333 Auction Mr.Saleem ud Din Baig
15,121 11,659 3,462 9,316 5,854

Cement Silos Part 118,421 47,866 70,555 66,000 (4,555) Insurance Claim M/s. EFU General Insurance Co.
Compressors 2,906 2,616 290 1,093 803 Auction M.Saddique & Co
Building Family Club 4,153 852 3,301 140 (3,161) Auction Malik Mehar M.Naveed
Power House-Concrete Pavement 352 317 35 950 915 Auction M.Saddique & Co
Protection Boundary Wall 140 56 84 646 562 Sale Land Acquisition Collector Mianwali
125,972 51,707 74,265 68,829 (5,436)

Freehold Land
Land 14,248 - 14,248 52,555 38,307 Sale Land Acquisition Collector Mianwali
Furniture, Fixtures & Office Equipments

Laptop 218 93 125 393 268 Insurance Claim M/s. EFU General Insurance Co.
Projectors 518 249 269 934 665 Insurance Claim M/s. EFU General Insurance Co.
Air Conditioner 83 19 64 150 86 Insurance Claim M/s. EFU General Insurance Co.
Other Equipments 10,727 10,451 276 41 (235) Auction M/s. Muhammad Hayat
Furniture 4,375 4,196 179 29 (150) Auction M/s. Muhammad Hayat
Television (Plasma) 378 285 93 18 (75) Auction M/s. Muhammad Hayat
16,299 15,293 1,006 1,565 558
Other asset having
book value below Rs.50,000 26,300 24,093 2,207 8,631 6,424
2017 459,995 261,957 198,038 195,191 (2,848)
2016 364,025 177,634 186,391 56,327 (130,064)

2017 2016
18.6 Movement in capital work-in-progress - at cost

Additions during the year 1,617,680 603,478
Less: Transfers during the year 18.2 (560,727) (296,800)
At end of the year 18.6.1 1,479,647 422,694
18.6.1 Capital work-in-progress - at cost
Civil Works 469,109 320,396

Land 550,918 -
Plant and machinery 8,951 5,171
Un-allocated capital expenditure 18.6.1.1 97,988 1,001
Advances to suppliers against:
- civil works 39,089 77,702
- furniture and fixtures - 11,043
- plant and machinery 310,770 794
- vehicles 2,822 1,891
- others - 4,696
1,479,647 422,694
18.6.1.1 Un-allocated capital expenditure
Salaries and wages 30,452 -

Traveling 2,722 -
Fee and subscription 43,256 -
Legal and professional expenses 8,379 1,001
Repair and maintenance 2,419 -
Finance cost 2,000 -
Vehicles running cost 743 -
Rent, rates & taxes 84 -
Insurance 452 -
Communication expenses 123 -
Energy expense 47 -
Others expenses 7,311 -
97,988 1,001

2017 2016
19. INTANGIBLE ASSETS - COST

Additions during the year 29,032 -
Accumulated Amortization
Amortization for the year 3,826 -
Net book value 25,206 -
Amortization rate - % per annum 33% 33%
20. LONG TERM INVESTMENT

Investment in Maple Leaf Power Limited - Unquoted 20.1 4,670,000 660,000
4,670,000 660,000
20.1 The Company holds 100% (30 June 2016: 100%) shares in the Maple Leaf Power Limited, a wholly owned
subsidiary of the Company.
2017 2016
21. LONG TERM LOANS TO EMPLOYEES - SECURED

House building 2,956 3,261
Vehicles 2,388 2,553
Others 4,949 3,977
10,293 9,791
Less: Current portion presented under current assets 26 (4,494) (4,163)
5,799 5,628
21.1 These loans are secured against employees’ retirement benefits and carry interest at the rates ranging from
6% to 12% per annum (30 June 2016: 6% to 12 % per annum). These loans are recoverable in 30 to 120
monthly installments.
21.2 This includes loans to executives amounting to Rs. 2.42 million ( 2016: Rs. 2.58 million). Further, no
amount was due from Directors and Chief Executive at the year end (2016: Rs. Nil).

This includes deposits with various utility companies, regulatory authorities and others.
2017 2016
23. STORES, SPARE PARTS AND LOOSE TOOLS
Stores 23.1 3,111,284 2,806,644

Spare parts 3,549,109 2,524,619
Loose tools 90,193 52,487
6,750,586 5,383,750
23.1 Stores include items in transit amounting to Rs. 720.60 million (2016: Rs. 1257.04 million).
2017 2016
24. STOCK-IN-TRADE
Raw material 105,006 38,793

Packing material 169,129 168,590
Work-in-process 819,353 395,257
Finished goods 207,747 283,252
1,301,235 885,892
Less: Cement stock written off - (13,072)
1,301,235 872,820
25. TRADE DEBTS
Considered good
Export - secured 25.1 34,849 46,947
Local - unsecured 25.2 647,677 529,914
682,526 576,861
25.1 These are secured against letters of credit.
25.2 This includes balance of Rs.1.23 million (2016: Rs. 11.99 million) receivable from Maple Leaf Power Limited
against sale of cement and are due by not more than 150 days.

2017 2016
26. LOANS AND ADVANCES
Advances - unsecured, considered good
- Employees 26.1 20,086 39,587

- Suppliers 26.2 793,536 761,417
813,622 801,004
Current portion of long term loans to employees 21 4,494 4,163
818,116 805,167
26.1 This includes loans to executives amounting to Rs. 8.64 million (2016: Rs. 10.58 million). Further, there are
no loans due from Directors and Chief Executive at the year end (2016: Nil).
26.2 This includes an amount of Rs. 502.414 million (2016: Rs. 318.55 million) advanced to Ministry of Railways
for transportation of coal and cement.
2017 2016
27. SHORT TERM INVESTMENT
Investment at fair value through profit or loss - listed securities
Next Capital Limited:

1,875,000 (2016: Nil) right shares of Rs. 8 each
Market value Rs. 23.01 per share (2016: Rs. 8 per share)
Cost
At beginning and end of the year 30,000 15,000
Unrealized fair value gain / (loss)
At beginning of the year (3,000) (4,470)

Fair value gain for the year 38 50,659 1,470
At end of the year 47,659 (3,000)
Fair value at 30 June 77,659 12,000

2017 2016
28. SHORT TERM DEPOSITS AND PREPAYMENTS
Margin against:
- letters of credit 17,144 9,353

- bank guarantees 58,014 59,229
Prepayments 709 1,890
Security deposits - 1,122
75,867 71,594
29. ACCRUED PROFIT
This represents profit accrued on deposits and PLS bank accounts at the rates ranging from 2.50% to 5.87%
(2016: 2.50 % to 5.87% ) per annum.
2017 2016
30. REFUNDS DUE FROM GOVERNMENT
Sales Tax and Customs Duty 30.1 16,797 16,797
30.1 This represents amount paid to Government under protest for various cases which have been decided in
favor of the Company.
2017 2016
31. OTHER RECEIVABLES
Due from the Holding Company - unsecured 31.1 32,437 21,311

Due from the Subsidiary Company - unsecured 31.1 180,414 189,515
Others 60,680 131,836
273,531 342,662
31.1 These carry interest at 1% (2016: 1%) per annum in addition to the average borrowing rate of the
Company.

2017 2016
32. CASH AND BANK BALANCES
- Cash in hand in local currency 5,394 11,222

- Cash in hand in foreign currency 930 473
6,324 11,695
Cash at bank
Current accounts:
- foreign currency 1,944 3,206
- local currency 32.1 211,845 233,206
213,789 236,412
Deposit accounts 32.2 193,845 146,367

407,634 382,779
413,958 394,474
32.1 These include deposits amounting to Rs. 2.758 million (2016: Rs.12.316 million) placed under an
arrangement permissible under Shariah.
32.2 These carry return at 2.50% to 5.60% (2016: 2.50 % to 5.87%) per annum. These include deposits
amounting to Rs. 124.38 million (2016: Rs.100.50 million) placed under an arrangement permissible under
Shariah. Remaining balances represents deposits with conventional banks.
2017 2016
33. SALES - NET
Gross local sales 29,626,399 25,607,553

Less:
Federal Excise Duty (2,931,708) (1,194,966)
Sales Tax (4,764,821) (4,144,108)
Discount (281,286) (166,723)
Commission (110,471) (118,534)
(8,088,286) (5,624,331)
Net local sales 21,538,113 19,983,222

Export sales 2,453,966 3,449,474
23,992,079 23,432,696

2017 2016
34. COST OF GOODS SOLD
Raw materials consumed 34.1 964,601 834,337

Packing materials consumed 1,298,453 1,458,266
Fuel 4,768,365 4,032,659
Power and associated costs 3,159,400 2,650,949
Stores, spare parts and loose tools consumed 1,186,943 929,224
Salaries, wages and other benefits 34.2 855,449 687,679
Rent, rates and taxes 25,219 26,254
Insurance 57,813 53,172
Repairs and maintenance 464,575 385,427
Depreciation 18.4 1,849,351 1,784,695
Vehicles running and maintenance 99,941 79,326
Cement stock written off - 13,072
Other expenses 34.3 141,331 128,231
14,871,441 13,063,291
Work in process:
At end of the year (819,354) (395,257)
(424,097) 302,100
Cost of goods manufactured 14,447,344 13,365,391
Finished goods:
At end of the year (207,747) (283,252)
62,433 45,173
Cost of goods sold 14,509,777 13,410,564
34.1 Raw materials consumed

Add: Purchases made during the year 1,030,535 834,155
1,069,328 873,130
Less: At end of the year 104,727 38,793
964,601 834,337
34.2 Salaries, wages and other benefits expense includes contribution to provident fund trust amounting to
Rs. 32.43 million (2016: Rs. 27.27 million) and gratuity and compensated absence amounting to Rs. 30.02
million (2016: Rs. 8.37 million).
34.3 Other expenses include housing colony expenses aggregating to Rs. 73.23 million (2016: Rs. 67.35 million).
2017 2016
35. DISTRIBUTION COST

Travelling and conveyance 80,349 54,730
Vehicle running and maintenance 13,989 13,009
Postage, telephone and fax 7,423 5,769
Printing, stationery and office supplies 4,066 3,415
Entertainment 8,850 6,799
Repair and maintenance 5,811 2,359
Advertisement and sale promotions 338,071 140,451
Freight and forwarding 668,977 1,027,561
Other expenses 35.2 24,513 12,126
1,275,182 1,359,896
35.1 Salaries, wages and other benefits expense includes contribution to Provident Fund Trust amounting to
35.2 It includes depreciation of Rs. 1.464 million (2016: Nil).

2017 2016
36. ADMINISTRATIVE EXPENSES

Travelling 80,622 82,578
Vehicle running and maintenance 19,499 23,511
Legal and professional charges 36.2 24,069 27,373
Depreciation 18.4 43,290 32,963
Rent, rates and taxes 5,494 227
Other expenses 83,720 71,377
621,076 485,959
36.2 Legal and professional charges include following in respect of Auditors’ remuneration for:
2017 2016
Annual statutory audit 1,200 1,200

Interim review 400 400
Interim audit and other certification 1,058 1,058
Out of pocket expenses 375 375
3,033 3,033
36.3 The Company has shared expenses aggregating Rs. 13.96 million (2016: Rs. 14.97 million) on account
of combined offices with the Holding Company. These expenses have been recorded in respective
account.
2017 2016
37. OTHER CHARGES
Donation 37.1 21,054 16,991

Workers’ Profit Participation Fund (WPPF) 368,876 381,213
Interest on Workers’ Profit Participation Fund (WPPF) 5,298 5,311
Workers’ Welfare Fund (WWF) 138,293 126,052
Loss on disposal of property, plant and equipment 2,848 130,064
536,369 659,631
37.1 Donations for the year have been given to:

Daud Khel Health care Centre 1,124 -
Tariq Niazi Hockey Stadium 169 -
21,054 16,991
37.1.1 None of the Directors of the Company or their spouse have any interest in donees.

2017 2016
38. OTHER INCOME
Income from financial assets

Profit on bank deposits 38.1 16,402 14,810
Interest on advances to the Holding and Subsidiary companies 33,982 11,609
Interest on loans to employees 522 518
Unrealized gain on re-measurement of short term investment 27 50,659 1,470
Reversal of provision against doubtful debts - 3,423
101,565 31,830
Income from non financial assets
Sale of scrap 4,178 2,186
Exchange gain 27,360 -
Miscellaneous 5,927 2,380
37,465 4,566
139,030 36,396
38.1 This includes profit earned on deposits under an arrangements which are permissible under Shariah
amounting to Rs. 4.41 million (2016: Rs. 3.65 million). The remaining profit relates to interest / markup
based arrangement from conventional banks.
2017 2016
39. FINANCE COST
Profit / interest / mark up on:

- Long term loans and finances 143,902 19,694
- Redeemable capital - 180,382
- Syndicated term finances 3,189 12,334
- Liabilities against assets subject to finance lease 21,928 23,860
- Short term borrowings 16 115,687 136,248
284,706 372,518
Exchange loss - net 39.1 - 27,635
Bank and other charges 33,643 35,351
318,349 435,504
39.1 This represents exchange loss incurred on actual currency transactions.

2017 2016
40. TAXATION
Income tax
- current 2,188,241 647,042
- prior 17,288 52,732
2,205,529 699,774
Deferred (112,254) 1,533,179
2,093,275 2,232,953
40.1 Tax charge reconciliation
Numerical reconciliation between tax expense and accounting profit:

Applicable tax rate as per Income Tax Ordinance, 2001 31% 32%
Tax on accounting profit 2,129,810 2,277,612

Effect of final tax regime (289,546) (236,102)
Change in proportion of local and export sales 31,133 (74,414)
Super Tax 204,590 213,125
Effect of prior year adjustment 17,288 52,732
2,093,275 2,232,953
40.2 The Finance Act, 2017 amended Section 5A of the Income Tax Ordinance, 2001 under which every public
company other than a scheduled bank or modaraba, that derives profits for a tax year and does not
distribute atleast 40 percent of its after tax profits within six months of the end of the tax year through cash
or bonus shares shall be liable to pay tax at the rate of seven and a half percent of its accounting profit
before tax.
During the year, the Company has paid interim dividend equivalent to 22 % of its after tax profits. Accordingly,
no provision for tax under the above mentioned section has been recognized in these unconsolidated
As explained in note 51 to the unconsolidated financial statements, the Board of Directors in their meeting
held on September 13, 2017 has recommended sufficient cash dividend for the year ended 30 June 2017
which complies with the above stated requirements. Accordingly, no provision for tax on undistributed
reserves has been recognized in these unconsolidated financial statements for the year ended 30 June
2017.

41. EARNINGS PER SHARE - BASIC AND DILUTED
Unit 2017 2016
41.1 Basic earnings per share

Profit after taxation Rupees in ‘000 4,777,081 4,884,585
Weighted average number of
ordinary shares No. of shares in ‘000 527,734 527,734
Rupees 9.05 9.26
There is no dilution effect on the basic earnings per share.
2017 2016
42. CASH AND CASH EQUIVALENTS
Short term running finance 16 (255,890) (9,707)

Cash and bank 32 413,958 394,474
158,068 384,767
43. TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Related parties comprise of the Holding Company, subsidiary company, associated companies, directors, key
management personnel, employee benefits fund and other companies where directors have significant influence.
Details of transactions and balances with related parties except those disclosed else where in these unconsolidated
financial statements are as follows:
2017 2016
Holding Company (Kohinoor Textile Mills Limited)

Sale of goods and services 42,618 25,297
Markup charged during the year 2,847 1,230
Dividend paid 1,311,347 728,526
Balance at the year end - receivable 32,179 21,311
Wholly owned subsidiary company (Maple Leaf Power Limited)

Expenses incurred on behalf of subsidiary company 179,262 33,743
Net amount disbursed during the year (39,005) 136,488

2017 2016
Key management personnel

Remuneration and other benefits 520,966 312,388
Other related parties

Dividend paid 4,986 4,738
Post employment benefit plans

Contributions to Provident Fund Trust 110,288 82,494
Balance of Provident Fund Trust 10,485 7,791
Payments to Employees Gratuity Fund Trust 16,732 15,135
Balance of Employees Gratuity Fund Trust 74,418 62,724
44. REMUNERATION OF CHAIRMAN, CHIEF EXECUTIVE, DIRECTORS,

NON-EXECUTIVE DIRECTORS AND EXECUTIVES
The aggregate amounts charged in the unconsolidated financial statements for the year for remuneration, including
all benefits to the Chairman, Chief Executive, Directors and Executives of the Company are as follows:
2017
Directors
Chairman Chief Executive Non-Executive Executives

Executive
(-------------------------- Rupees in thousand ------------------------ )
Short term benefits

Managerial remuneration 20,412 14,040 29,154 - 251,380
House rent 3,024 720 3,981 - 104,022
Medical - - 322 - 6,103
Conveyance - 1,917 1,248 - 31,261
Utilities 1,764 180 1,990 - 21,490
25,200 16,857 36,695 - 414,256
Post employment benefits
Contribution to Provident Fund Trust 1,688 1,278 2,279 - 22,713
26,888 18,135 38,974 - 436,969
Numbers 1 1 4 5 274

2016
Directors

Executive
Short term benefits

House rent 1,920 480 509 - 59,632
Medical - - 52 - 3,527
Conveyance - 1,473 452 - 21,396
Utilities 1,120 120 254 - 13,232
16,000 11,433 8,073 - 260,467
Contribution to Provident Fund Trust 1,072 852 509 - 13,982
17,072 12,285 8,582 - 274,449
Numbers 1 1 1 5 148
44.1 The Chairman, Chief Executive, Directors and some of the Executives are also provided with the Company
maintained cars in accordance with their terms of employment.
44.2 Aggregate amount charged in these unconsolidated financial statements in respect of meeting fee paid to
Directors is Rs. 0.31 million (2016: Rs.0.19 million).
45. CAPACITY AND PRODUCTION

Capacity Actual Production
2017 2016 2017 2016
----------------------- Metric tons ----------------------
Clinker 3,360,000 3,360,000 3,299,047 3,092,793
Lower capacity utilization of cement plant is due to gap between demand and supply of cement. The capacity of
plant has been determined on the basis of 300 days.

46. OPERATING SEGMENT
Information about operating segment

These unconsolidated financial statements have been prepared on the basis of single reportable segment.
Geographical information
The Company operates in two principal geographical areas, Asia and Africa other than Pakistan and revenue from
continuing operations from external customers based on geographical areas is as follows:
2017 2016
(Percentage)
Geographical area
Asia 99.11% 97.84%
Africa 0.89% 2.16%
100.00% 100.00%
All assets of the Company as at 30 June 2017 are located in Pakistan.
47. FINANCIAL RISK MANAGEMENT
The Company has exposure to the following risks arising from financial instruments:
- credit risk
- liquidity risk
- market risk
This note presents information about the Company’s exposure to each of the above risks, the Company’s
objectives, policies and processes for measuring and managing risk, and the Company’s management of capital.
Risk management framework
The Company’s Board of Directors has overall responsibility for establishment and oversight of the Company’s
risk management framework. The Board is responsible for developing and monitoring the Company’s risk
management policies.
The Company’s risk management policies are established to identify and analyze the risks faced by the Company,
to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The
Company, through its training and management standards and procedures, aims to develop a disciplined and
constructive control environment in which all employees understand their roles and obligations. All derivative
activities for risk management purposes are carried out by specialist teams that have the appropriate skills,
experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes shall
be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks.

The Company’s audit committee oversees how management monitors compliance with the Company’s risk
management policies and procedures and reviews the adequacy of the risk management framework in relation
to the risks faced by the Company. Audit committee is assisted in its oversight role by internal audit department.
Internal audit department undertakes both regular and ad hoc reviews of risk management controls and
procedures, the results of which are reported to the audit committee.
47.1 Credit risk and concentration of credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. To manage credit risk the Company maintains procedures
covering the application for credit approvals, granting and renewal of counterparty limits and monitoring
of exposures against these limits. As part of these processes the financial viability of all counterparties is
regularly monitored and assessed.
47.1.1 Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure
to credit risk as at the end of the reporting period was as follows:
2017 2016
Financial asset at fair value through profit and loss account

Short term investments 77,659 12,000
Loans and receivables
Security deposits 56,474 55,867

Trade debts 682,526 576,861
Long term loans to employees 10,293 9,791
Short term deposits 75,867 69,704
Accrued profit 1,356 1,582
Other receivables 212,851 262,061
Bank balances 407,634 382,779
1,447,001 1,358,645
1,524,660 1,370,645

47.1.2 Concentration of credit risk
The Company identifies concentrations of credit risk by reference to type of counter party. Maximum
exposure to credit risk by type of counterparty is as follows:
2017 2016
Customers 682,526 576,861

Banking companies and financial institutions 482,792 451,361
Others 359,342 342,423
1,524,660 1,370,645
47.1.3 Credit quality and impairment
Credit quality of financial assets is assessed by reference to external credit ratings, where available, or to
historical information about counterparty default rates. All counterparties, with the exception of customers,
have external credit ratings determined by various credit rating agencies. Credit quality of customers is
assessed by reference to historical defaults rates and present ages.
47.1.3(a) Counterparties with external credit ratings
These include banking companies and financial institutions. These counterparties have reasonably high
credit ratings as determined by various credit rating agencies. Due to long standing business relationships
with these counterparties and considering their strong financial standing, management does not expect
non-performance by these counterparties on their obligations to the Company. Following are the credit
ratings of counterparties with external credit ratings:

Rating 2017 2016

Short term Long term Agency (Rupees in thousand)
Bank balances
Allied Bank Limited A1+ AA+ PACRA 84 64,120

Askari Bank Limited A1+ AA+ PACRA 2 21,950
Bank Al-Habib Limited A1+ AA+ PACRA 80,955 55,081
Bank Alfalah A1+ AA PACRA 6,578 14,870
Bank Islami Pakistan Limited A1+ A+ PACRA 124,238 100,495
Bank of Punjab A1+ AA- PACRA 664 12,322
Burj Bank Limited A-2 BBB+ JCR-VIS 9 741
Dubai Islamic Bank Pakistan Limited A-1 A+ JCR-VIS 741 9
Faysal Bank Limited A1+ AA PACRA 758 369
Habib Bank Limited A-1+ AAA JCR-VIS 11,378 1,435
Habib Metropolitan Bank Limited A1+ AA+ PACRA 65,967 1,459
KASB Bank Limited - - - - 5
Meezan Bank Limited A-1+ AA JCR-VIS 672 663
MCB Bank Limited A1+ AAA PACRA 56,111 41,130
National Bank of Pakistan A1+ AAA PACRA 20,741 22,887
NIB Bank Limited A1+ AA- PACRA 26,457 34,768
Silk Bank Limited A-2 A- JCR-VIS 10 9
Soneri Bank Limited A1+ AA- PACRA 1,263 1,265
Standard Chartered Bank (Pakistan) Limited A1+ AAA PACRA 2,505 5,352
Summit Bank Limited A-1 A- JCR-VIS 25 25
United Bank Limited A-1+ AAA JCR-VIS 7,577 2,924
U Micro finance Bank Limited A-2 A- JCR-VIS 899 899
407,634 382,779
Margin against bank guarantees
Allied Bank Limited A1+ AA+ PACRA 1,700 1,700

United Bank Limited A-1+ AAA JCR-VIS 31,214 31,214
Summit Bank Limited A-1 A- JCR-VIS 12,792 12,792
Trust Investment Bank - - - 5,345 5,344
NIB Bank Limited A1+ AA- PACRA - 1,215
58,015 59,229
Margin against letters of credit

15,930 9,353

47.1.3(b) Counterparties without external credit ratings
These include customers which are counter parties to local and foreign trade debts against sale of cement.
Out of gross trade debts of Rs. 682.53 million (2016: Rs. 576.86 million), trade debts that are subject to
credit risk amount to Rs. 647.77 million (2016: Rs. 529.91 million). The analysis of ages of trade debts of the
Company as at the reporting date is as follows:
2017 2016
Gross Impairment Gross Impairment
------------------- (Rupees in thousand) -------------------
The aging of trade debts at the reporting date is:
Not past due 222,788 - 268,857 -

Past due 1 to 30 days 279,680 - 191,652 -
Past due 30 to 150 days 70,393 - 18,965 -
Past due 150 days 109,665 - 97,387 -
682,526 - 576,861 -
Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures
and controls relating to customer credit risk management. Credit limits are established for all customers based on
internal rating criteria. Credit quality of the customer is assessed based on an extensive credit rating. Outstanding
customer receivables are regularly monitored and shipments to the customers are generally covered by letters of
credit or other form of credit insurance.
As at year end, trade debts includes balance of Rs. 1.23 million (2016: Rs.11.99 million) receivable from Maple
Leaf Power Limited against sale of cement and are due by not more than 150 days.
47.2 Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial assets, or that such obligations will have to be
settled in a manner unfavorable to the Company. Management closely monitors the Company’s liquidity and cash
flow position. This includes maintenance of balance sheet liquidity ratios, debtors and creditors concentration
both in terms of the overall funding mix and avoidance of undue reliance on large individual customers.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an
appropriate liquidity risk management framework for the management of the Company’s short, medium and
long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities. Included in note 16.1 and
16.2 to these unconsolidated financial statements is a listing of additional undrawn facilities that the Company
has at its disposal to further reduce liquidity risk.

47.2.1 Exposure to liquidity risk

47.2.1(a) Contractual maturities of financial liabilities, including estimated interest payments
The following are the remaining contractual maturities at the reporting date. The amounts are grossed and
undiscounted, and include estimated interest payments and exchange rates and exclude the impact of
netting agreements.
2017
Carrying Contractual Less than Between Above
amount cash flows 1 year 1 to 5 years 5 years
------------------- (Rupees in thousand) ---------------------

Non-derivative financial liabilities
Long term loans from banking companies 3,103,760 3,623,846 473,133 2,879,224 271,489
Liabilities against assets subject to finance lease 480,615 484,974 188,196 496,079 -
Long term deposits 8,699 8,699 - 8,699 -
Trade and other payables 1,559,841 1,559,841 1,559,841 - -
Accrued profit / interest / mark-up 101,465 101,465 101,465 - -
Short term borrowings 3,138,159 3,138,159 3,138,159 - -
8,392,539 8,916,984 5,460,794 3,384,002 271,489
2016

Long term loans from banking companies 927,298 1,296,963 69,060 892,426 335,477
4,479,598 4,886,776 3,156,295 1,395,004 335,477

47.3 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Company’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing return.
47.3.1 Currency risk
The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which
advances, sales and purchases and bank balances are denominated and the respective functional currency of
the Company. The functional currency of the Company is Pak Rupee. The currencies in which these transactions
are primarily denominated are Euros and US dollars.
47.3.1(a) Exposure to currency risk
The summary quantitative data about the Company’s exposure to currency risk as reported to the
management of the Company is as follows. The figures represent foreign currency balances after conversion
in Pak Rupees using exchange rates prevailing at the balance sheet date.
2017
GBP CHF EURO USD YEN RUPEES
--------------------------- in thousand ---------------------------
Assets
Trade debts - - - 333 - 34,849
Cash and bank 2 - - 25 - 2,874
2 - - 358 - 37,723
Liabilities
Liabilities against assets
subject to finance lease - - - (4,577) - (480,615)
Creditors and bills payables - - 23 - - 2,753
2 - 23 (4,577) - (477,862)
Net balance sheet exposure 2 - 23 (4,219) - (440,139)
Off balance sheet items
Outstanding letters of credit - - 82,117 5,735 10,486 10,458,620
Net exposure 2 - 82,140 1,516 10,486 10,018,481
2016
--------------------------- in thousand ---------------------------
Assets
Trade debts - - - 449 - 46,947
Cash and bank 2 - - 33 - 3,680
2 - - 482 - 50,627
Liabilities
Liabilities against assets subject
to finance lease - - - (6,177) - (646,762)
Creditors and bills payables - - (23) - - (2,670)
2 - (23) (6,177) - (649,432)
Net balance sheet exposure 2 - (23) (5,695) - (598,805)
Outstanding letters of credit - 55 5,547 5,283 - 1,204,256
Net exposure 2 55 5,524 (412) - 605,451

47.3.1(b) Exchange rates applied during the year
The following significant exchange rates have been applied during the year:
2017
Reporting date spot rate Average rate
Buying Selling for the year
CHF 109.75 109.54 105.83

EURO 120.14 119.91 114.37
USD 104.80 105.00 104.75
YEN 0.94 0.94 0.96
GBP 136.42 136.68 133.05
2016
CHF 116.64 106.85 97.88

EURO 116.08 116.31 115.61
USD 104.50 104.70 104.50
YEN 1.02 1.02 0.90
GBP 140.12 140.39 152.24
47.3.1(c) Sensitivity analysis
A reasonably possible strengthening / (weakening) of 10% in Pak Rupee against the following currencies
would have affected the measurement of financial instruments denominated in foreign currency and affected
profit and loss by the amounts shown below at the balance sheet. The analysis assumes that all other
variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
Profit
2017 2016
EURO 276 (268)

USD (44,300) (59,627)
YEN - -
CHF - -
GBP 27 28
(43,997) (59,867)

47.3.1(d) Currency risk management
Since the maximum amount exposed to currency risk is only 2.81% (2016: 1.86%) of the Company’s net
assets, any adverse / favorable movement in functional currency with respect to US dollar and Euro will not
have any material impact on the operational results.
47.3.2 Interest rate risk
Interest rate risk is the risk that fair values or future cash flows of a financial instrument will fluctuate because
of changes in interest rates. Sensitivity to interest rate risk arises from mismatch of financial assets and
financial liabilities that mature or re-price in a given period.
47.3.2(a) Fixed rate financial instruments
The effective interest / mark-up rates for interest / mark-up bearing financial instruments are mentioned
in relevant notes to the unconsolidated financial statements. The Company’s interest / mark-up bearing
financial instruments as at the reporting date are as follows:
2017 2016
Financial Financial Financial Financial
assets liabilities assets liabilities
Note ----------- Rupees in thousand -----------
Non-derivative financial instruments
Short term borrowings 16 - 2,820,233 - 1,398,000

Bank balances at PLS accounts 32 193,845 - 146,367 -
193,845 2,820,233 146,367 1,398,000
The related profit / mark-up / interest rates for fixed rate financial instruments are indicated in the related
notes to the unconsolidated financial statements.
Fair value sensitivity analysis for fixed rate instruments
The Company does not account for any fixed rate financial assets and liabilities at fair value through profit and
loss account. Therefore, a change in profit / mark-up / interest rates at the reporting date would not affect
profit and loss account.

47.3.2(b) Variable rate financial instruments

2017 2016
Long term loans 8 - 3,103,760 - 927,298

Liabilities against assets subject to finance lease 9 - 480,615 - 646,762
Short term borrowings 16 - 255,890 - 9,707
- 3,840,265 - 1,583,767
Cash flow sensitivity analysis for variable rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would have (decreased) /
increased profit by amounts shown below. The analysis assumes that all other variables, in particular foreign
exchange rates, remain constant. The analysis is performed on the same basis for the year 2016.
Profit
2017 2016
Increase of 100 basis points
Variable rate instruments (38,403) (15,838)
Decrease of 100 basis points
Variable rate instruments 38,403 15,838
The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year and the
outstanding liabilities of the Company at the year end.

47.3.2(c) Interest rate risk management
The Company manages these mismatches through risk management strategies where significant changes in
gap position can be adjusted. The Company’s significant borrowings are based on variable rate pricing that
is mostly dependent on Karachi Inter Bank Offer Rate (“KIBOR”) as indicated in respective notes.
47.3.3 Price risk
Price risk represents the risk that the fair value or future cash flows of financial instrument will fluctuate
because of changes in market prices, other than those arising from interest rate risk or currency risk, whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors
affecting all similar financial instruments trading in market.
47.3.3(a) Investments exposed to price risk
At the balance sheet date, the Company’s investment in quoted equity securities and investments in money
market mutual funds is as follows:
2017 2016
Investment in equity securities 77,659 12,000
47.3.3(b) Sensitivity analysis
A 10.00% increase / (decrease) share prices at year end would have increased / (decreased) the Company’s
fair value gain on investment as follows:
Equity
2017 2016
Short term investment at fair value through profit and loss account
Effect of increase 7,766 1,200

Effect of decrease (7,766) (1,200)
47.3.3(c) Price risk management
The Company manages price risk by monitoring exposure in quoted equity securities and implementing
the strict discipline in internal risk management and investment policies. The carrying value of investments
subject to equity price risk are based on quoted market prices as at reporting date. Market prices are
subject to fluctuation and consequently the amount realized in the subsequent sale of an investment may
significantly differ from reported market value. Fluctuations in the market price of a security may result from
perceived changes in the underlying economic characteristics of the investee, the relative price of alternative
investments and general market conditions. Furthermore, amount realized in the sale of a particular security
may be affected by the relative quantity of the security being sold.

47.4 Fair value of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the Company is a going concern without any
intention or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse
terms.
The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the
quoted market prices at the close of trading on the period end date. The quoted market prices used for financial
assets held by the Company is current bid price.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis.
IFRS 13, ‘Fair Value Measurements’ requires the Company to classify fair value measurements using a fair value
hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy
has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date (level 1).
- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly (level 2).
- Unobservable inputs for the asset or liability (level 3).

47.5 Financial instruments-fair values
The additional disclosures due to the adoption of IFRS 13 Fair value measurement are as follows :
Carrying Amount Fair Value

Fair Value
through Loans Other
Income and financial
Statement receivables liabilities Total Level 1 Level 2 Level 3
Note - - - - - - - - - - - - - - - - - Rupees in thousand - - - - - - - - - - - - - - - - - -
On-Balance sheet financial instruments
30 June 2017
Financial assets measured at fair value
Short term investments 77,659 - - 77,659 77,659 - -
77,659 - - 77,659 77,659 - -
Financial assets not measured at fair value
Cash and bank balances - 413,958 - 413,958 - - -

Long term loans to employees - 10,293 - 10,293 - - -
Short term deposits - 75,867 - 75,867 - - -
Other receivables - 212,851 - 212,851 - - -
Accrued profit - 1,356 - 1,356 - - -
Long term deposits - 56,474 - 56,474 - - -
Trade debts - unsecured, considered good - 682,526 - 682,526 - - -
47.6 - 1,453,325 - 1,453,325 - - -
Financial liabilities measured at fair value - - - - - - -
- - - - - - -
Financial liabilities not measured at fair value
Long term finances - - 3,103,760 3,103,760 - - -

Liabilities against assets subject to finance lease - - 480,615 480,615 - - -
Trade and other payables - - 1,559,841 1,559,841 - - -
Short term borrowing - - 3,138,159 3,138,159 - - -
Long term deposits - - 8,699 8,699 - - -
Accrued mark up - - 101,465 101,465 - - -
47.6 - - 8,392,539 8,392,539 - - -

Financial instruments-fair values
Carrying Amount Fair Value

Fair Value
through Loans Other
30 June 2016
12,000 - - 12,000 12,000 - -
Accrued profit - 1,582 - 1,582 - - -
47.6 - 1,370,340 - 1,370,340 - - -

- - - - - - -
Long term finances - - 927,298 927,298 - - -
Accrued mark up - - 36,807 36,807 - - -
47.6 - - 4,479,598 4,479,598 - - -

47.6 The Company has not disclosed the fair values of these financial assets and liabilities as these are for short
term or reprice over short term. Therefore, their carrying amounts are reasonable approximation of fair value.
Freehold land, buildings on freehold land, roads, bridges and railway sidings, plant and machinery have
been carried at revalued amounts determined by professional valuers (level 3 measurement) based on their
assessment of the market values as disclosed in note 7.1. The valuations are conducted by the valuation
experts appointed by the Company. The valuation experts used a market based approach to arrive at the
fair value of the Company’s properties. For revaluation of freehold land fair market value was assessed
through inquiries to real estate agents and property dealers in near vicinity of freehold land. Different
valuation methods and exercises were adopted according to experience, location and other usage of
freehold land. Valuer had also considered all relevant factors as well. In case of buildings on freehold land,
roads, bridges and railway sidings, construction specifications were noted for each building and structure
and new construction rates are applied according to construction specifications for current replacement
values. After determining current replacement values, depreciation was calculated to determine the
current assessed market value. For revaluation of plant and machinery, suppliers and different cement
plant consultants in Pakistan and abroad were contacted to collect information regarding current prices
of comparable cement plant to determine current replacement value. Fair depreciation factor for each
item is applied according to their physical condition, usage and maintenance. The effect of changes in the
unobservable inputs used in the valuations cannot be determined with certainty, accordingly a qualitative
disclosure of sensitivity has not been presented in these financial statements.
48. CAPITAL MANAGEMENT
The Board’s policy is to maintain an efficient capital base so as to maintain investor, creditor and market confidence
and to sustain the future development of its business. The Board of Directors monitors the return on capital
employed, which the Company defines as operating income divided by total capital employed. The Board of
Directors also monitors the level of dividends to ordinary shareholders.
The Company’s objectives when managing capital are:
i. to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns
for shareholders and benefits for other stakeholders; and
ii. to provide an adequate return to shareholders.
The Company manages the capital structure in the context of economic conditions and the risk characteristics of
the underlying assets. In order to maintain or adjust the capital structure, the Company may, for example, adjust
the amount of dividends paid to shareholders, issue new shares, or sell assets to reduce debt.
Unit 2017 2016
Total debt Rupees in ‘000 6,722,534 2,998,971

Less: Cash and bank balances 413,958 394,474
Net debt 6,308,576 2,604,497
Total Equity Rupees in ‘000 19,384,152 16,749,880
Total capital employed Rupees in ‘000 25,692,728 19,354,377
Gearing Percentage 24.55% 13.46%

Total debt comprises of long term loans from ba5mpanies, redeemable capital, syndicated term finances, liabilities
against assets subject to finance lease and short term borrowings.
There were no changes in the Company’s approach to capital management during the year. The Company is not
subject to externally imposed capital requirements.
49. PROVIDENT FUND TRUST
The following information is based on the latest un-audited financial statements of the Provident Fund Trust:
Un-audited Audited
2017 2016
Size of the fund - total assets 616,561 521,829
Cost of investments made 448,971 462,352
Percentage of investments made 78.96% 92.87%
Fair value of investments 486,850 484,603
The break-up of fair value of investments is:
2017 2016
Rs. in thousand Percentage Rs. in thousand Percentage
Shares in quoted securities 52,544 10.79% 84,710 17.48%

Term deposit receipts 84,000 17.25% 130,000 26.83%
Government securities 244,003 50.12% 217,059 44.79%
Mutual funds 106,303 21.84% 52,834 10.90%
486,850 100.00% 484,603 100.00%
The investments out of Provident Fund Trust have been made in accordance with the provisions of section 227
of the Companies Ordinance, 1984 and the rules formulated for this purpose.

50. NUMBER OF EMPLOYEES
The total and average number of employees of the Company during the year and as at 30 June 2017 and 2016
respectively are as follows:
2017 2016
Average number of employees during the year 1,230 1,104

Total number of employees as at 30 June 1,292 1,150
51. NON ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE
The Board of Directors of the Company in its meeting held on September 13, 2017 has proposed a final cash
dividend of Rs. 1.75 per share, for the year ended 30 June 2017, for approval of the members in the Annual
General Meeting to be held on October 26, 2017 at 11:00 am.
52. DATE OF AUTHORIZATION FOR ISSUE
These unconsolidated financial statements were authorized for issue by the Board of Directors of the Company
in their meeting held on September 13, 2017.
53. GENERAL
53.1 Figures in the unconsolidated financial statements have been rounded-off to the nearest thousand Rupees
except stated otherwise.
53.2 Corresponding figures have been rearranged and reclassified for better presentation,wherever considered
necessary. No material reclassification has been made in these financial statements.


Consolidated
Financial Statements
For the Year Ended June 30, 2017

Directors’ Report on Audited Consolidated Financial

Statements
The Directors are pleased to present the audited consolidated financial statements of Maple Leaf Cement Factory Limited (the
Holding Company) and its wholly owned subsidiary company Maple Leaf Power Limited (collectively referred to as group) for the year
ended 30 June 2017.
GROUP RESULTS
The Group has earned gross profit of Rupees 9,376 million as compared to Rupees 10,013 million of corresponding year. The Group
made after tax profit of Rupees 4,776 million during the year as compared to Rupees 4,843 million during the corresponding year.
The overall group financial results are as follows:
30 June 30 June
2017 2016
(Rupees in million)
Sales 23,885 23,416

Gross Profit 9,376 10,013
Profit from operations 7,044 7,511
Financial charges 174 436
Net Profit after tax 4,776 4,843
-------- (Rupees) --------
Earnings per share – Basic and diluted 9.05 9.18
SUBSIDIARY COMPANY
MAPLE LEAF POWER LIMITED (MLPL)
Maple Leaf Cement Factory Limited has formed a subsidiary company namely “Maple Leaf Power Limited (MLPL).” MLPL (“the
Subsidiary) was incorporated in Pakistan on 15 October 2015 under the Companies Ordinance, 1984 as public limited company.
The principal objective of MLPL is to develop, design, operate and maintain electric power generation plant in connection therewith
to engage in the business of generation, sale and supply of electricity to the Holding Company.
ACKNOWLEDGEMENT
The Directors are grateful to the group’s members, financial institutions, customers and employees for their cooperation and support.
They also appreciate the hard work and dedication of the employees working in different roles.
Syed Mohsin Raza Naqvi Sayeed Tariq Saigol

Lahore: 13 September 2017 Director Chief Executive Officer

2nd Floor, Fax + 92 (42) 3579 0907
Lahore Pakistan
Auditors’ Report to the Members on Consolidated

Financial Statements
We have audited the annexed consolidated financial statements comprising consolidated Balance Sheet of Maple Leaf Cement
Factory Limited (“the Holding Company”) and its subsidiary Company as at 30 June 2017 and the related consolidated Profit and
Loss Account, consolidated Statement of Comprehensive Income, consolidated Cash Flow Statement and consolidated Statement
of Changes in Equity together with the notes forming part thereof, for the year then ended. We have also expressed separate opinions
on the financial statements of Maple Leaf Cement Factory Limited and its subsidiary company. These financial statements are the
responsibility of the Holding Company’s management. Our responsibility is to express an opinion on these financial statements based
on our audit.
Our audit was conducted in accordance with the International Standards on Auditing and accordingly included such tests of
accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements present fairly the financial position of the Maple Leaf Cement Factory Limited
and its subsidiary company as at 30 June 2017 and the results of their operations for the year then ended.
Lahore KPMG Taseer Hadi & Co.

Chartered Accountants
Date: 13 September 2017 (Bilal Ali)

Consolidated Balance Sheet

As at June 30, 2017
2017 2016
EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERvES
Authorized share capital 5 7,000,000 7,000,000
Issued, subscribed and paid-up share capital 5 5,277,340 5,277,340

Capital reserves 6 2,058,137 2,058,137
Accumulated profits 12,006,120 9,372,617
19,341,597 16,708,094
SURPLUS ON REvALUATION OF FIxED ASSETS - NET OF TAx 7 4,323,909 4,587,255
NON - CURRENT LIABILITIES
Long term loans from banking companies - secured 8 2,890,226 927,298

Liabilities against assets subject to finance lease - secured 9 270,615 479,243
Deferred taxation 11 4,024,363 4,124,673
7,344,681 5,657,496
CURRENT LIABILITIES
Current portion of:
- Long term loans from banking companies - secured 8 213,534 -
- Liabilities against assets subject to finance lease - secured 9 210,000 167,519
Trade and other payables 13 3,968,719 3,239,509
Accrued profit / interest / mark-up 14 101,465 36,807
Provision for taxation - net 15 420,527 203,316
Short term borrowings 16 3,138,159 1,424,911
8,052,404 5,072,062
CONTINGENCIES AND COMMITMENTS 17
39,062,591 32,024,907
The annexed notes from 1 to 52 form an integral part of these consolidated financial statements.
CHIEF ExECUTIvE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

2017 2016
ASSETS
NON - CURRENT ASSETS
Property, plant and equipment 18 28,296,283 23,618,926

Intangible assets 19 25,206 -
Long term loans to employees - secured 20 5,799 5,628
28,383,762 23,680,421
CURRENT ASSETS
Stores, spare parts and loose tools 22 6,750,586 5,383,750

Stock-in-trade 23 1,301,235 872,820
Trade debts 24 681,293 564,866
Loans and advances 25 818,116 805,167
Short term investment 26 77,659 12,000
Short term deposits and prepayments 27 87,565 71,594
Accrued profit 28 2,628 1,857
Refunds due from Government 29 417,148 37,557
Other receivables 30 93,117 153,147
Cash and bank balances 31 449,482 441,728
10,678,829 8,344,486
39,062,591 32,024,907

Consolidated Profit and Loss Account

2017 2016
Sales - net 32 23,885,410 23,416,196

Cost of goods sold 33 (14,509,777) (13,403,591)
Gross profit 9,375,633 10,012,605
Distribution cost 34 (1,275,182) (1,359,896)

Administrative expenses 35 (636,170) (508,262)
Other charges 36 (536,369) (659,631)
(2,447,721) (2,527,789)
Other income 37 115,922 26,466
Profit from operations 7,043,834 7,511,282

Finance cost 38 (174,247) (435,530)

Taxation 39 (2,093,275) (2,232,953)
-------- (Rupees) --------
Earnings per share - basic and diluted 40 9.05 9.18

Consolidated Statement of Comprehensive Income
2017 2016
Other comprehensive income
Items that will not be reclassified to profit and loss account:
Other comprehensive income - transferred to equity
Remeasurement of defined benefit liability (19,408) 2,185

Related tax 4,891 (544)
(14,517) 1,641
Other comprehensive income - not transferred to equity
Surplus on revaluation of fixed assets - -

Deferred tax liability on revaluation of fixed assets - -
- -
Total comprehensive income for the year 4,761,795 4,844,440

Consolidated Cash Flow Statement

2017 2016
CASH FLOWS FROM OPERATING ACTIvITIES

Adjustments for:
Depreciation 18.4 1,895,719 1,817,803
Reversal of provision against doubtful debts 37 - (3,423)
Provision for Workers’ Profit Participation Fund 13.3 374,174 386,524
Provision for Workers’ Welfare Fund 36 138,293 126,052
Stock-in-trade written off 33 - 13,072
Loss on disposal of property, plant and equipment 36 2,848 130,064
Gain on re-measurement of short term investments at fair value 37 (50,659) (1,470)
Finance cost 38 174,247 435,530
Profit on bank deposits 37 (19,913) (15,258)
Cash generated from operations before working capital changes 9,426,965 9,999,949
Effect on cash flow due to working capital changes
(Increase) / decrease in current assets:
Stores, spare parts and loose tools (1,366,836) (1,199,205)
Stock-in-trade (428,415) 320,681
Trade debts (116,427) 9,128
Loans and advances (12,949) 180,084
Short term deposits and prepayments (15,971) 17,375
Other receivables (156,913) (22,541)
(2,097,511) (694,478)
Increase / (decrease) in current liabilities:
Trade and other payables 270,828 (404,890)
(1,826,683) (1,099,368)
Net cash generated from operations 7,600,282 8,900,581
Workers’ Profit Participation Fund paid - (89,119)
Workers’ Welfare Fund paid (112,622) -
Taxes paid (2,150,967) (633,710)

2017 2016
CASH FLOWS FROM INvESTING ACTIvITIES
Intangibles (29,032) -
CASH FLOWS FROM FINANCING ACTIvITIES

Drawdown of long term loans from banking companies - secured - net 2,176,462 771,484
Dividend paid (2,315,788) (1,283,026)
Net cash generated from / (used in) financing activities 1,053,725 (6,059,908)
Cash and cash equivalents at beginning of the year 432,021 169,012
Cash and cash equivalents at end of the year 41 193,592 432,021

Consolidated Statement of Changes in Equity

Capital Reserves Revenue Reserves
Share Share Capital Sub- Accumulated Total
Capital premium redemption total profits Equity
reserve
…...……………………...…… ( Rupees in thousand ) …...……………………...……
At 30 June 2015 5,277,340 1,529,874 528,263 2,058,137 5,576,181 12,911,658

Other comprehensive income for the year ended 30 June 2016 - - - - 1,641 1,641
- - - - 4,844,440 4,844,440
Transaction with owners of the Group
Final cash dividend @ Re. 1 per share for the year ended 30 June 2015 - - - - (527,734) (527,734)
Interim cash dividend @ Rs. 1.5 per share for the year ended 30 June 2016 - - - - (791,601) (791,601)
At 30 June 2016 5,277,340 1,529,874 528,263 2,058,137 9,372,617 16,708,094

Other comprehensive income for the year ended 30 June 2017 - - - - (14,517) (14,517)
- - - - 4,761,795 4,761,795
Transaction with owners of the Group

Final cash dividend @ Rs. 2.5 per share for the year ended 30 June 2016 - - - - (1,319,335) (1,319,335)
Interim cash dividend @ Rs. 2 per share for the year ended 30 June 2017 - - - - (1,055,468) (1,055,468)
At 30 June 2017 5,277,340 1,529,874 528,263 2,058,137 12,006,120 19,341,597

Notes to the Consolidated Financial Statements
1. LEGAL STATUS AND NATURE OF BUSINESS
1.1 Maple Leaf Cement Factory Limited - (“the Holding Company”)
Maple Leaf Cement Factory Limited (“the Holding Company”) was incorporated in Pakistan on 13 April 1960
under the Companies Act, 1913 (now the Companies Ordinance, 1984) as a public company limited by
shares. The Company is listed on Pakistan Stock Exchange. The registered office of the Holding Company
is situated at 42-Lawrence Road, Lahore, Pakistan. The cement factory is located at Iskanderabad District
Mianwali in the province of Punjab. The principal activity of the Holding Company is production and sale of
cement. The Company is a subsidiary of Kohinoor Textiles Mills Limited (“ the Ultimate Holding Company”).
1.2 Maple Leaf Power Limited - (“the Subsidiary Company”)
Maple Leaf Power Limited (‘the Subsidiary Company’ ) was incorporated in Pakistan on 15 October
2015 as a public limited company under the Companies Ordinance, 1984. The Subsidiary Company has
been established to set up and operate a 40 megawatt power generation plant at Iskanderabad, District
Mianwali for generation of electricity. The Subsidiary Company’s registered office is located at
42 - Lawrence Road, Lahore. The principal objective of the Subsidiary Company is to develop, design,
operate and maintain electric power generation plant and in connection therewith to engage in the business
of generation, sale and supply of electricity to the Holding Company. During the year, the Company has
been granted electricity generation license from National Electric and Power Regulatory Authority (NEPRA)
on 20 December 2016.
The Holding and the Subsidiary companies are collectively referred to as “ the Group” in these consolidated
2. BASIS OF PREPARATION
2.1 Statement of compliance
These consolidated financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan and the requirements of the Companies Ordinance, 1984. Approved
accounting standards comprise of such International Financial Reporting Standards (“IFRSs”) issued by the
International Accounting Standards Board as notified under the Companies Ordinance, 1984, provisions of
and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions of
or directives of the Companies Ordinance, 1984 shall prevail.
During the year on 30 May 2017, the Companies Act, 2017 (the Act) was enacted which replaced and
repealed the Companies Ordinance, 1984 (the repealed Ordinance). However, the Securities and Exchange
Commission of Pakistan (SECP) through its Circular No. 17 of 2017 dated 20 July 2017 has advised the
Companies whose financial year closes on or before 30 June 2017 shall prepare their financial statements
in accordance with the provisions of the repealed Companies Ordinance, 1984.
During the year, the Companies Act, 2017 (the Act) was enacted which replaced and repealed the previous
Companies Ordinance, 1984 (the repealed Ordinance). Section 235 of the repealed Ordinance related to

treatment of surplus arising on revaluation of property, plant and equipment has not been carried forward
in the Act. Consequent to deletion of said Section from the Act, the Group will be required to change
its accounting policy with respect to revaluation of property, plant and equipment to conform it to the
requirement of IAS 16 “Property, Plant and Equipment” for the accounting year commencing from 01 July
2017.
2.2 Basis of measurement
These consolidated financial statements have been prepared under the historical cost convention except
for the following:
- certain financial instruments at fair value;

- certain property, plant and equipment at revalued amounts; and
- recognition of employee retirement benefits at present value.
2.3 Functional and presentation currency
These consolidated financial statements have been prepared in Pak Rupees (“Rs.”) which is the Group’s
functional currency.
2.4 Use of estimates and judgments
The preparation of consolidated financial statements in conformity with approved accounting standards requires
management to make judgments, estimates and assumptions that affect the application of policies and reported
amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on
historical experience and various other factors that are believed to be reasonable under circumstances, and the
results of which form the basis for making judgment about carrying value of assets and liabilities that are not
readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which estimates are revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
The areas where assumptions and estimates are significant to the Group’s consolidated financial statements
or where judgment was exercised in application of accounting policies are as follows:
2.4.1 Property, plant and equipment
The Group reviews the useful lives and residual values of property, plant and equipment on regular basis.
Any change in estimates in future years might affect the carrying amounts of the respective items of
property, plant and equipment with a corresponding effect on the depreciation charge and impairment.
2.4.2 Stores, spare parts and loose tools
The Group reviews the stores, spare parts and loose tools for possible impairment on an annual basis. Any
change in estimates in future years might affect the carrying amounts of the respective items of stores,
spare parts and loose tools with a corresponding effect on the provision.

2.4.3 Stock-in-trade
The Group reviews the carrying amount of stock-in-trade on a regular basis. Carrying amount of stock-
in-trade is adjusted where the net realizable value is below the cost. Net realizable value is the estimated
selling price in the ordinary course of business, less the estimated costs of completion and estimated costs
necessary to make the sale.
2.4.4 Provision for doubtful debts, advances and other receivables
The Group reviews the recoverability of its trade debts, advances and other receivables to assess amount
of bad debts and provision required there against on annual basis.
2.4.5 Employee benefits
The Group operates approved funded gratuity scheme covering all its full time permanent workers who
have completed the minimum qualifying period of service as defined under the respective scheme. The
gratuity scheme is managed by trustees. The calculation of the benefit requires assumptions to be made
of future outcomes, the principal ones being in respect of increase in remuneration and the discount rate
used to convert future cash flows to current values. The assumptions used for the plan are determined by
independent actuary on annual basis.
The amount of the expected return on plan assets is calculated using the expected rate of return for
the year and the market-related value at the beginning of the year. Gratuity cost primarily represents the
increase in actuarial present value of the obligation for benefits earned on employee service during the year
and the interest on the obligation in respect of employee service in previous years, net of the expected
return on plan assets. Calculations are sensitive to changes in the underlying assumptions.
2.4.6 Impairment
The management of the Group reviews carrying amounts of its assets including receivables and advances
and cash generating units for possible impairment and makes formal estimates of recoverable amount if
there is any such indication.
2.4.7 Taxation
The Group takes into account the current income tax law and decisions taken by the taxation authorities.
Instances where the Group’s views differ from the views taken by the income tax department at the
assessment stage and where the Group considers that its view on items of material nature is in accordance
with law, the amounts are shown as contingent liabilities.
The Group also regularly reviews the trend of proportion of incomes between Presumptive Tax Regime
income and Normal Tax Regime income and the change in proportions, if significant, is accounted for in
the year of change.

2.4.8 Provisions and contingencies
The Group reviews the status of all pending litigations and claims against the Group. Based on the judgment
and the advice of the legal advisors for the estimated financial outcome, appropriate disclosure or provision
is made. The actual outcome of these litigations and claims can have an effect on the carrying amounts of
the liabilities recognized at the balance sheet date.
2.4.9 Revaluation of property, plant and equipment
Revaluation of property, plant and equipment is carried out by an independent professional valuer.
Revalued amounts of non-depreciable items are determined by reference to local market values and that
of depreciable items are determined by reference to present depreciated replacement values.
The frequency of revaluations depends upon the changes in fair values of the items of property, plant
and equipment being revalued. When the fair value of a revalued asset differs materially from its carrying
amount, a further revaluation is required. Such frequent revaluations are unnecessary for items of property,
plant and equipment with only insignificant changes in fair value. Instead, it may be necessary to revalue
the item only every three or five years.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of these consolidated financial statements are set
out below. The policies have been consistently applied to all the years presented.
3.1 Basis of consolidation
3.1.1 Subsidiary
The financial statements of the Subsidiary Company have been consolidated on a line-by-line basis and
the carrying values of the investments held by the Holding Company have been eliminated against the
shareholders’ equity in the Subsidiary Company.
The financial statements of the subsidiaries are prepared for the same reporting year as the Holding
Company, using consistent accounting policies.
All intragroup balances, transactions, income and expenses and profits and losses resulting from intragroup
transactions that are recognized in assets and liabilities have been eliminated in full.
3.2 Employee benefits
Defined contribution plan
The Group operates a defined contributory approved Provident Fund Trust for all its employees. Equal
monthly contributions are made both by the Group and employees at the rate of 10.00% of the basic salary
to the Provident Fund Trust. Obligation for contributions to defined contribution plan is expensed as the
related service is provided.

Defined benefit plan
The Group operates approved funded gratuity scheme for all its full time permanent workers who have
completed the minimum qualifying period of service as defined under the respective scheme. Provision is
made annually to cover obligations under the scheme on the basis of actuarial valuation and is charged to
consolidated profit and loss account.
The Group’s net obligation in respect of defined benefit plan is calculated by estimating the amount of
future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.
Calculation of defined benefit obligation is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for the Group, the recognized asset
is limited to the present value of economic benefits available in the form of any future refunds from the
plan or reductions in future contribution to the plan. To calculate the present value of economic benefits,
consideration is given to any applicable minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset ceiling (if, any excluding interest), are recognized
immediately in OCI. The Group determines the net interest expense (income) on the net defined benefit
liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation
at beginning of the annual period to the then-net defined benefit liability (asset), taking into account any
changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit
payments. Net interest expense and other expenses related to defined benefit plan is recognized in
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment is recognized immediately in consolidated profit
and loss account. The Group recognizes gains and losses on the settlement of a defined benefit plan when
the settlement occurs.
Liability for employees’ compensated absences
The Group accounts for the liability in respect of employees’ compensated absences in the year in which
these are earned. Provision to cover the obligations is made using the current salary level of employees.
3.3 Taxation
Current
Current tax is the amount of tax payable on taxable income for the year, using tax rates enacted or
substantively enacted by the reporting date, and any adjustment to the tax payable in respect of previous
years. Provision for current tax is based on current rates of taxation in Pakistan after taking into account tax
credits, rebates and exemptions available, if any. The amount of unpaid income tax in respect of the current
or prior periods is recognized as a liability. Any excess paid over what is due in respect of the current or
prior periods is recognized as an asset.

Deferred
Deferred tax is recognized using the balance sheet liability method on all temporary differences between
the carrying amounts of assets and liabilities for the financial reporting purposes and the amounts used for
taxation purposes.
Deferred tax asset is recognized for all the deductible temporary differences only to the extent that it is
probable that future taxable profits will be available against which the asset may be utilized. Deferred tax
asset is reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred tax liabilities are recognized for all the taxable temporary differences.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled, based on the tax rates that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax is charged or credited in the income statement, except in the case of items credited or
charged to comprehensive income or equity, in which case it is included in consolidated comprehensive
income or equity.
3.4 Leases
Leases are classified as finance lease whenever terms of the lease transfer substantially all risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
The liability to the lessor is included in the balance sheet as liabilities against assets subject to finance
lease. The liabilities are classified as current and non-current depending upon the timing of payment.
Lease payments are apportioned between finance charges and reduction of the liabilities against assets
subject to finance lease so as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are charged to consolidated profit and loss account, unless they are directly attributable
to qualifying assets, in which case they are capitalized in accordance with the Group’s general policy on
borrowing costs.
Rentals payable under operating leases are charged to consolidated profit and loss account on a straight-
line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into
an operating lease are also spread on a straight line basis over the lease term.
3.5 Property, plant and equipment
3.5.1 Tangible assets
Owned
Tangible assets except freehold land, buildings on freehold land, roads, bridges and railway sidings, plant
and machinery are stated at cost less accumulated depreciation and impairment in value, if any. Buildings
on freehold land, roads, bridges and railway sidings and plant and machinery are stated at revalued amount
being the fair value at the date of revaluation, less any subsequent accumulated depreciation and impairment
losses while freehold land is stated at revalued amount being the fair value at the date of revaluation, less

any subsequent impairment losses, if any. Increase in the carrying amount arising on revaluation is credited
to ‘Revaluation of fixed assets’ and the same is dealt in accordance with section 235 of the Companies
Ordinance, 1984. Surplus on revaluation is booked by restating gross carrying amounts of respective assets
being revalued, proportionately to the change in their carrying amounts due to revaluation. The accumulated
depreciation at the date of revaluation is also adjusted to equal difference between gross carrying amounts
and the carrying amounts of the assets after taking into account accumulated impairment losses. The surplus
on revaluation of fixed assets to the extent of the annual incremental depreciation based on the revalued
carrying amount of the asset and the depreciation based on the assets’ original cost is transferred annually to
retained earnings net of related deferred tax. Upon disposal, any revaluation reserve relating to the particular
assets being sold is transferred to retained earnings. All transfers to / from surplus on revaluation of fixed
assets account are net of applicable deferred income tax.
Capital work-in-progress is stated at cost less identified impairment losses, if any. All expenditure connected
with specific assets incurred during installation and construction period are carried under capital work-in-
progress. These are transferred to specific assets as and when these are available for use.
All other repair and maintenance costs are charged to income during the period in which these are incurred.
Gains / losses on disposal or retirement of tangible assets, if any, are taken to consolidated profit and loss
account.
Depreciation is calculated at the rates specified in note 18.1 on reducing balance method except that
straight-line method is used for the plant and machinery and buildings relating to dry process plant after
deducting residual value. Depreciation on additions and deletions is charged on the month in which the
addition / deletion is made.
Leased
Assets held under finance lease arrangements are initially recorded at the lower of present value of minimum
lease payments under the lease agreements and the fair value of the leased assets. Depreciation on leased
assets is charged by applying reducing balance method at the rates used for similar owned assets, so as
to depreciate the assets over their estimated useful lives in view of certainty of ownership of assets at end
of the lease term.
The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at each balance
sheet date.
3.5.2 Intangible assets
Intangible asset is stated at cost less accumulated amortization for finite intangible asset and any identified
impairment loss. The estimated useful life and amortization method is reviewed at the end of each annual
reporting period, with effect of any changes in estimate being accounted for on a prospective basis.
Finite intangible assets are amortized using straight-line method over a period of usage. Amortization on
additions to intangible assets is charged from the month in which an asset is put to use and on disposal
up to the month of disposal.

3.6 Impairment
3.6.1 Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence
that it is impaired. Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.
A financial asset is considered to be impaired if objective evidence indicates that one or more events have
had a negative effect on the estimated future cash flows of the asset.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the
original effective interest rate. Impairment loss in respect of a financial asset measured at fair value is
determined by reference to that fair value. All impairment losses are recognized in consolidated profit and
loss account. An impairment loss is reversed if the reversal can be related objectively to an event occurring
after the impairment loss was recognized. An impairment loss is reversed only to the extent that the
financial asset’s carrying amount after the reversal does not exceed the carrying amount that would have
been determined, net of amortization, if no impairment loss had been recognized. Reversal of impairment
loss is recognized in profit and loss account except in the case of available for sale instruments where the
reversal is included in consolidated other comprehensive income.
3.6.2 Non-financial assets
The carrying amount of the Group’s non-financial assets, other than inventories and deferred tax assets
are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or
cash generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value
in use, the estimated future cash flows are discounted to their present values using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset or
cash generating unit.
An impairment loss is recognized if the carrying amount of the assets or its cash generating unit exceeds its
estimated recoverable amount. Impairment losses are recognized in consolidated profit and loss account.
Impairment losses recognized in respect of cash generating units are allocated to reduce the carrying
amounts of the assets in a unit on a pro rata basis. Impairment losses recognized in prior periods are
assessed at each reporting date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to that extent that the asset’s carrying amount after the
reversal does not exceed the carrying amount that would have been determined, net of depreciation and
amortization, if no impairment loss had been recognized.
3.7 Investments
At fair value through profit and loss account
Investments at fair value through profit and loss account are those which are acquired for generating a profit
from short-term fluctuation in prices. All investments are initially recognized at cost, being the fair value of

the consideration given. Subsequent to initial recognition, these investments are re-measured at fair value
(quoted market price). Any gain or loss from a change in the fair value is recognized in consolidated profit
and loss account.
3.8 Loans and receivables
Loans and receivables are recognized initially at fair value, plus attributable transaction costs. Subsequent
to initial recognition, loans and receivables are stated at amortized cost with any difference between cost
and redemption value being recognized in the consolidated profit and loss account over the period of the
investments on an effective yield method less impairment loss, if any.
3.9 Stores, spare parts and loose tools
These are stated at lower of cost and net realizable value. Cost is determined using the weighted average
method. Items in transit are valued at cost comprising invoice value plus other charges paid thereon.
3.10 Stock-in-trade
Stocks are valued at the lower of cost and net realizable value. Cost is determined as follows:
Raw material at weighted average cost

Packing material at weighted average cost
Work in process at weighted average manufacturing cost
Finished goods at weighted average manufacturing cost
Average manufacturing cost in relation to work in process and finished goods consists of direct material,
labor and a proportion of appropriate manufacturing overheads.
Net realizable value signifies the estimated selling price in the ordinary course of business less estimated
costs of completion and estimated costs necessary to make the sale.
3.11 Financial instruments
Financial assets and liabilities are recognized when the Group becomes a party to contractual provisions of
the instrument and de-recognized when the Group looses control of contractual rights that comprise the
financial asset and in case of financial liability when the obligation specified in the contract is discharged,
cancelled or expired. Any gain or loss on de-recognition of financial assets and liabilities are included in
consolidated profit and loss account for the year.
Non-derivative financial liabilities are initially recognized at fair value less any directly attributable transaction
costs. Subsequent to initial recognition, these liabilities are measured at amortized cost using effective
interest method. The carrying values of liabilities approximates to their amortized cost.
3.12 Trade and other payables
Creditors relating to trade and other payables are carried at cost which is the fair value of consideration to
be paid in the future for goods and services received, whether or not billed to the Group.

3.13 Trade debts
Trade debts are stated initially at the fair value, subsequent to initial recognition, these are stated at their
amortized cost as reduced by appropriate provision for impairment. Known impaired receivables are
written off, while receivables considered doubtful are fully provided for.
3.14 Off setting of financial instruments
Financial assets and liabilities are off-set and the net amount reported in the balance sheet when there is a
legally enforceable right to offset the recognized amounts and there is an intention and ability to settle on
a net basis, or realize the asset and settle the liability simultaneously.
3.15 Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand, running finance
and cash at banks.
3.16 Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group
and the revenue can be measured reliably. Revenue is measured at fair value of consideration received or
receivable on the following basis:
- Sales are recorded when significant risks and rewards of ownership of the goods have passed to the
customers;
- Dividend income is recognized when the Group’s right to receive the dividend is established; and
- Interest income is recognized as and when accrued on effective interest method.
3.17 Foreign currency translations
Transactions in foreign currencies are initially recorded at the rates of exchange ruling on the dates of
transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated into Pak
Rupees at exchange rates prevailing on the balance sheet date. All exchange differences are charged to
3.18 Borrowings
All borrowings are recorded at the proceeds received. Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are assets that necessarily take a substantial period
of time to get ready for their intended use are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use. All other borrowing costs are charged to consolidated
profit and loss account in the period in which these are incurred.

3.19 Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and a reliable
estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate.
3.20 Earnings per share (EPS)
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by
weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by adjusting basic EPS with weighted average number of ordinary shares that
would be issued on conversion of all dilutive potential ordinary shares into ordinary shares and post-tax
effect of changes in profit or loss attributable to ordinary shareholders of the Group that would result from
conversion of all dilutive potential ordinary shares into ordinary shares.
3.21 Dividend distribution
Dividend is recognized as a liability in the period in which it is declared.
3.22 Mark-up bearing borrowings
Mark-up bearing borrowings are recognized initially at cost representing the fair value of consideration
received less attributable transaction costs. Subsequent to initial recognition, mark-up bearing borrowings
are stated at original cost less subsequent repayments, while the difference between the original recognized
amounts (as reduced by periodic payments) and redemption value is recognized in the consolidated profit
and loss account over the period of borrowings on an effective rate basis. The borrowing cost on qualifying
asset is included in the cost of related asset.
4. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED APPROvED ACCOUNTING STANDARDS
The following standards, amendments and interpretations of approved accounting standards will be effective for
accounting periods beginning on or after 01 July 2017:
- Amendments to IAS 12 ‘Income Taxes’ are effective for annual periods beginning on or after 1 January
2017. The amendments clarify that the existence of a deductible temporary difference depends solely on
a comparison of the carrying amount of an asset and its tax base at the end of the reporting period, and
is not affected by possible future changes in the carrying amount or expected manner of recovery of the
asset. The amendments further clarify that when calculating deferred tax asset in respect of insufficient
taxable temporary differences, the future taxable profit excludes tax deductions resulting from the reversal
of those deductible temporary differences.
- Amendments to IAS 7 ‘Statement of Cash Flows’ are part of IASB’s broader disclosure initiative and are
effective for annual periods beginning on or after 1 January 2017. The amendments require disclosures
that enable users of financial statements to evaluate changes in liabilities arising from financing activities,
including both changes arising from cash flow and non-cash changes.

- Amendments to IFRS 2 - Share-based Payment clarify the accounting for certain types of arrangements
and are effective for annual periods beginning on or after 1 January 2018. The amendments cover three
accounting areas (a) measurement of cash-settled share-based payments; (b) classification of share-
based payments settled net of tax withholdings; and (c) accounting for a modification of a share-based
payment from cash-settled to equity-settled. The new requirements could affect the classification and / or
measurement of these arrangements and potentially the timing and amount of expense recognized for new
and outstanding awards.
Transfers of Investment Property (Amendments to IAS 40 ‘Investment Property’ -effective for annual periods
beginning on or after 1 January 2018) clarifies that an entity shall transfer a property to, or from, investment
property when, and only when there is a change in use. A change in use occurs when the property meets, or
ceases to meet, the definition of investment property and there is evidence of the change in use. In isolation,
a change in management’s intentions for the use of a property does not provide evidence of a change in use.
Annual Improvements 2014-2016 cycles (amendments are effective for annual periods beginning on or after
1 January 2016). The new cycle of improvements contain amendments to the following standards:
- Amendments to IFRS 12 ‘Disclosure of Interests in Other Entities’ (effective for annual periods beginning
on or after 1 January 2017) clarify that the requirements of IFRS 12 apply to an entity’s interests that are
classified as held for sale or discontinued operations in accordance with IFRS 5 – ‘Non-current Assets Held
for Sale and Discontinued Operations’.
- Amendments to IAS 28 ‘Investments in Associates and Joint ventures’ (effective for annual periods beginning
on or after 1 January 2018) clarifies that a venture capital organization and other similar entities may elect to
measure investments in associates and joint ventures at fair value through profit or loss, for each associate or
joint venture separately at the time of initial recognition of investment. Furthermore, similar election is available
to non-investment entity that has an interest in an associate or joint venture that is an investment entity, when
applying the equity method, to retain the fair value measurement applied by that investment entity associate
or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is
made separately for each investment entity associate or joint venture.
- IFRIC 22 ‘Foreign Currency Transactions and Advance Consideration’ (effective for annual periods beginning
on or after 1 January 2018) clarifies which date should be used for translation when a foreign currency
transaction involves payment or receipt in advance of the item it relates to. The related item is translated
using the exchange rate on the date the advance foreign currency is received or paid and the prepayment
or deferred income is recognized. The date of the transaction for the purpose of determining the exchange
rate to use on initial recognition of the related asset, expense or income (or part of it) would remain the date
on which receipt of payment from advance consideration was recognized. If there are multiple payments
or receipts in advance, the entity shall determine a date of the transaction for each payment or receipt of
advance consideration.
- IFRIC 23 ‘Uncertainty over Income Tax Treatments’ (effective for annual periods beginning on or after 1
January 2019) clarifies the accounting for income tax when there is uncertainty over income tax treatments
under IAS 12. The interpretation requires the uncertainty over tax treatment be reflected in the measurement
of current and deferred tax.
The above amendments are not likely to have an impact on the Group’s consolidated financial statements.

2017 2016
5. SHARE CAPITAL
5.1 Authorized share capital
Number of shares
600,000,000 (2016: 600,000,000) ordinary shares of Rs. 10 each 6,000,000 6,000,000
100,000,000 (2016: 100,000,000) 9.75 % redeemable

cumulative preference shares of Rs. 10 each 1,000,000 1,000,000
700,000,000 7,000,000 7,000,000
5.2 Issued, subscribed and paid-up share capital
Number of shares
290,359,856 (2016: 290,359,856) ordinary shares

of Rs. 10 each fully paid in cash 2,903,599 2,903,599
35,834,100 (2016: 35,834,100) ordinary shares
of Rs. 10 each issued as fully paid
for consideration other than cash 358,341 358,341
issued as fully paid bonus shares 460,694 460,694
issued as fully paid right shares at discount 5.2.1 1,538,462 1,538,462
1,624,417 (2016: 1,624,417) ordinary shares of
Rs. 10 each issued as conversion of
preference shares into ordinary shares 5.2.2 16,244 16,244
527,733,926 5,277,340 5,277,340
5.2.1 During the financial year ended 30 June 2011, Holding Company issued 153,846,153 shares at Rs. 6.50 per share
at a discount of Rs. 3.50 per share otherwise than right against Rs. 1,000 million to the Holding Company, after
complying with all procedural requirements in this respect.
5.2.2 During the financial years ended 30 June 2011 and 30 June 2012, 1,321,095 preference shares were converted into
1,624,417 ordinary shares at a conversion rate of 1.2296.
5.3 The Ultimate Holding Company holds 291,410,425 (2016: 291,410,425) ordinary shares, which represents 55.22%
(2016: 55.22%) of total ordinary issued, subscribed and paid-up share capital of the Holding Company.
5.4 Zimpex (Private) Limited, an associated undertaking, holds Nil (2016: 1,706) ordinary shares of the Holding Company.

2017 2016
6. CAPITAL RESERvES
Capital redemption reserve 6.1 528,263 528,263

Share premium reserve 6.2 1,529,874 1,529,874
2,058,137 2,058,137
6.1 This reserve has been created under section 85 of the repealed Companies Ordinance, 1984 for redemption
of preference shares.
6.2 This reserve can be utilized by the Group only for the purpose specified in section 83(2) of the repealed
Companies Ordinance, 1984.
2017 2016
7. SURPLUS ON REvALUATION OF FIxED ASSETS - NET OF TAx

Surplus on disposal of fixed assets during the year - net of deferred tax (23,419) (9,767)
Transfer to unappropriated profit in respect of incremental depreciation
charged during the year - net of deferred tax (223,092) (261,564)
At end of the year 5,659,065 5,984,429
Deferred tax liability on revaluation surplus

Transferred to unappropriated profit in respect of disposal of fixed
assets during the year (3,694) (3,238)
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year (75,159) (86,724)
Effect of change in tax rate and proportion of local and export sales 16,835 (107,504)
1,335,156 1,397,174
At end of the year 4,323,909 4,587,255

7.1 The Group’s freehold land, buildings on freehold land, roads, bridges and railway sidings and plant and
machinery were revalued by Arif Evaluators, an independent valuer not connected with the Group and
approved by Pakistan Banks’ Association (PBA) in “any amount” category, at 22 June 2015. The basis of
revaluation for items of these fixed assets were as follows:
Freehold land
Fair market value of freehold land was assessed through inquiries to real estate agents and property dealers
in near vicinity of freehold land. Different valuation methods and exercises were adopted according to
experience, location and other usage of freehold land. valuer had also considered all relevant factors as well.
Buildings on freehold land, roads, bridges and railway sidings
Construction specifications were noted for each building and structure and new construction rates are
applied according to construction specifications for current replacement values. After determining current
replacement values, depreciation was calculated to determine the current assessed market value.
Plant and machinery
Suppliers and different cement plant consultants in Pakistan and abroad were contacted to collect information
regarding current prices of comparable cement plant to determine current replacement value. Fair depreciation
factor for each item is applied according to their physical condition, usage and maintenance.
2017 2016
8. LONG TERM LOANS FROM BANKING COMPANIES - SECURED
Askari Bank Limited - Term Finance 8.3 500,000 500,000

Bank of Punjab - Demand Finance 8.4 1,252,580 183,140
MCB Bank Limited - Demand Finance 8.5 675,590 122,079
National Bank of Pakistan - Demand Finance 8.6 675,590 122,079
3,103,760 927,298
8.1 Less: Current portion of long term loans from
banking companies - secured
Askari Bank Limited - Term Finance 8.3 25,000 -

Bank of Punjab - Demand Finance 8.4 62,629 -
MCB Bank Limited - Demand Finance 8.5 92,126 -
National Bank of Pakistan - Demand Finance 8.6 33,779 -
213,534 -
Long term portion of loans from banking companies 2,890,226 927,298
8.2 These are interest / mark-up based loans from conventional banks.

2017 2016
8.3 Askari Bank Limited - Term Finance

Add: Disbursements during the year - 500,000
500,000 500,000
During financial year 2016, the Holding Company entered into term finance agreement with Askari Bank
Limited for Rs. 500 million. As per terms of the agreement, the tenor of loan is seven (7) years including two
(2) years grace period. The principal shall be repaid in twenty (20) equal, consecutive, quarterly installments
of Rs. 25 million from 04 June 2018 to 04 March 2023. This facility carries mark-up rate at 3 months
KIBOR+125 bps per annum to be paid quarterly in arrears.
charge of Rs. 667 million over all present and future plant and machinery and land and building respectively
of cement unit-II. Disbursement has been made in tranches against ranking charge on all present and
future plant and machinery of the Holding Company that shall be upgraded / replaced by aforesaid charge
within 180 days from 1st draw down.
2017 2016
8.4 Bank of Punjab - Demand Finance

Add: Disbursements during the year 1,069,440 183,140
1,252,580 183,140
At end of the year 1,189,951 183,140

During the financial year 2016, the Holding Company entered into demand finance agreement with The
Bank of Punjab for Rs. 1,500 million. The tenor of loan is seven (7) years including 24 months grace period.
The principal shall be repaid in twenty (20) equal, consecutive, quarterly installments of Rs. 75 million
each starting from 31 March 2018 to 25 March 2023. Prepayment can be made after two (2) years of
completion of draw down, with a 30 days prior notice to the lenders without early payment penalty.
charge over all present and future fixed assets of the Holding Company with 25% margin. It is also secured
by lien over import documents.
A floating charge on fixed assets of Subsidiary shall be registered with 25% margin, before establishment
of LCs, which shall be vacated upon LC settlement / retirement.
Personal guarantees by Mr. Tariq Sayeed Saigol and Mr. Sayeed Tariq Saigol (sponsoring directors) duly
supported by net worth statements and cross corporate guarantee of the Holding Company and Subsidiary
Company has also been provided.
2017 2016
8.5 MCB Bank Limited - Demand Finance

675,590 122,079
During the financial year 2016, the Holding Company entered into demand finance agreement with MCB
Bank Limited for Rs. 1,000 million. The tenor of loan is seven (7) years including grace period of 18 months.
The principal shall be repaid in twenty two (22) equal, consecutive, quarterly installments of Rs. 45.45
million each starting from 14 October 2017 to 14 Jan 2023. Prepayment can be made after two (2) years
with a 30 days prior notice.

charge over all present and future fixed assets of the Holding Company with 25% margin.
2017 2016
8.6 National Bank of Pakistan - Demand Finance

675,590 122,079
During financial year 2016, the Holding Company entered into demand finance agreement with National
Bank of Pakistan for Rs. 1,000 million. The tenor of loan is seven (7) years including two (2) years grace
period. Disbursement shall be made in tranches during the availability period as per terms of the agreement.
Principal shall be repaid in twenty (20) equal quarterly installments of Rs. 50 million each starting from 30 April
2018 to 30 January 2023.
charge over all present and future fixed assets of the Holding Company amounting to Rs. 1,334 million.
Disbursement is being made in tranches against ranking charge of Rs. 1334 million over all present and
future fixed assets of the Company that shall be upgraded / replaced by aforesaid charge within 120 days
from 1st draw down.
directors).
8.7 As per the financing document the Holding Company is required to comply with certain financial covenants
which mainly include current ratio, minimum debt service coverage ratio, minimum interest coverage ratio,
gearing ratio and maximum leverage ratio. Further, the Holding Company is required to comply with certain
conditions imposed by the providers of finance to make dividend payment.

8.8 As on 30 June 2017 Holding Company has an un-availed long term facilities amounting to Rs 11,000
million. These facilities are sanctioned on 17 March 2017 by a consortium of banks led by National Bank
of Pakistan amounting to Rs 9,000 million and MCB Bank Limited (formally NIB Bank Limited) amounting
to Rs 2,000 million and carry markup at the rate of 3 months KIBOR plus 0.75 %. Tenure of the facilities
would be nine (9) years including a grace period of 2 years from the date of disbursement.
These facilities are secured against joint first pari passu hypothecation charge of Rs 14,666.67 million over
fixed assets of the Holding Company.
2017 2016
9. LIABILITIES AGAINST ASSETS SUBJECT TO

FINANCE LEASE - SECURED
Present value of minimum lease payments 9.1.1 480,615 646,762

270,615 479,243
Taxes, repair and insurance costs are borne by the Holding Company. The Holding Company intends to exercise
its option to purchase the above assets upon completion of the lease period.
9.1 The amount of future lease payments and the period in which they will become due are as follows:
2017 2016
Minimum lease payments:

500,625 684,275
Less: Finance cost allocated to future period (20,010) (37,513)
480,615 646,762
270,615 479,243

2017 2016
9.1.1 Present value of minimum lease payments

480,615 646,762
9.2 The Holding Company had entered into restructuring agreement of lease facility outstanding amount with
Islamic Corporation for the Development of Private Sector (“ICD”) on 17 December 2012 (“the Effective
Date”) to acquire power generation plant Wartsila. Finance lease liabilities are obtained from conventional
leasing companies.
As per terms of restructuring agreement, the outstanding principal as at 30 June 2017 amounting to USD
4.58 million is to be repaid in six installments as per following schedule terms:
Period No. of Amount (USD) Total

Installments Per installment Amount (USD)
15 September 2017 - 15 June 2018 4 500,000 2,000,000

15 September 2018 - 15 December 2018 2 1,288,643 2,577,286
This facility carries mark-up rate at six months USD LIBOR plus a spread of 2.50% per annum. During the
current year mark-up has ranged from 3.44% to 3.92% (2016: 2.95% to 3.57%) per annum.
These represent deposits received from dealers and are being utilized by the Company in accordance with the
terms of dealership agreements.

2017 2016
11. DEFERRED TAxATION
Deferred tax liability on taxable temporary differences arising in respect of:
- accelerated tax depreciation on fixed assets 2,744,010 2,809,851

- surplus on revaluation of fixed assets 1,335,156 1,397,174
4,079,166 4,207,025
Deferred tax asset on deductible temporary differences
arising in respect of:
- liabilities against assets subject to finance lease (16,807) (52,526)

(54,803) (82,352)
4,024,363 4,124,673
11.1 Movement in deferred tax balances is as follows:

Recognized in profit and loss account:
- accelerated tax depreciation on fixed assets (65,841) (358,927)
- surplus on revaluation of fixed assets (78,853) (89,962)
- unused tax losses - 706,403
- liabilities against assets subject to finance lease 35,719 27,119
- provision for doubtful debts - 1,027
- tax credits utilized / (tax credits) under section 113, 113C
and 65B of Income Tax Ordinance, 2001 - 1,248,602
(112,254) 1,533,179
Recognized in surplus on revaluation of fixed assets
Effect of change in proportion of local and export sales 16,835 (107,504)
Recognized in other comprehensive income:

- employees’ retirement benefits (4,891) 544
4,024,363 4,124,673

2017 2016
12. RETIREMENT BENEFITS
Holding Company
Accumulated compensated absences 12.1 76,360 57,059
Gratuity 12.2 74,418 62,724
150,778 119,783
12.1 Accumulated compensated absences

Provision for the year 29,825 23,809
Less: Payments made during the year (10,524) (7,888)
12.2 Gratuity
The latest actuarial valuation of the Holding Company’s defined benefit plan, was conducted on 30 June
2017 using projected unit credit method. Detail of obligation for defined benefit plan is as follows:
The amounts recognized in the balance sheet are as follows:
2017 2016
Present value of defined benefit obligation 12.2.1 153,921 131,316

Less: Fair value of plan assets 12.2.2 (79,503) (68,592)
Net liability at beginning of the year 62,724 68,550

Charge to profit and loss account for the year 12.2.3 9,018 11,494
Charge to other comprehensive income for the year 12.2.3 19,408 (2,185)
Less: Contribution made during the year (16,732) (15,135)

12.2.1 Movement in the present value of defined benefit obligations is as follows:
2017 2016
Present value of defined benefit obligations at beginning of the year 131,316 137,998
Actuarial losses / (gain) on present value of defined benefit obligations 25,347 (9,812)
Present value of defined benefit obligation at end of the year 153,921 131,316
12.2.2 Movement in the fair value of plan assets is as follows:
Fair value of plan assets at beginning of the year 68,592 69,448

Contributions made during the year 16,732 15,135
Expected return on plan assets for the year 4,972 6,771
Actuarial loss / (gain) on plan assets 5,939 (7,627)
Fair value of plan assets at end of the year 79,503 68,592
Fair value of plan assets are as follows:
NIB Bank including accrued interest 37,000 37,000

NAFA Government Securities Liquid Fund 19,435 14,449
Trust Investment Bank including accrued interest 15,000 15,000
Cash at bank 8,068 2,143
79,503 68,592
2017 2016
(Percentage)
Plan assets comprise of:
Equity 24.45% 21.06%

Cash at bank 75.55% 78.94%
100.00% 100.00%

2017 2016
12.2.3 Charge for the year
In profit and loss account

Expected return on plan assets for the year (4,972) (6,771)
9,018 11,494
In other comprehensive income
Actuarial losses / (gain) on retirement benefits - net 19,408 (2,185)
28,426 9,309
12.2.4 Movement in actuarial gain is as follows:
At beginning of the year - -

Actuarial (gain) / loss on present value (5,939) 7,627
Remeasurement of loss / (gain) on defined benefit obligation 25,347 (9,812)
19,408 (2,185)
Actuarial (gains) / losses recognised directly in other
comprehensive income (19,408) 2,185
- -
Actuarial assumptions
The following are the principal actuarial assumptions at 30 June:

2017 2016
(Percentage)
Discount rate used for year end obligations 7.25% 7.25%

Expected return on plan assets 7.25% 9.75%
Expected rate of growth per annum in future salaries 6.75% 6.25%
Expected mortality rate SLIC 2001-2005 SLIC 2001- 2005
Setback 1 Year Setback 1 Year
Retirement assumptions 60 Years 60 Years
12.3 The Holding Company expects to charge Rs. 10.98 million to consolidated profit and loss account on account
of defined benefit plan in 2018.

12.4 Sensitivity analysis
If the significant actuarial assumptions used to estimate the defined benefit obligation at the reporting date,
had fluctuated by 100 bps with all other variables held constant, the present value of the defined benefit
obligation as at 30 June 2017 would have been as follows:
Gratuity
Impact on present value of
defined benefit obligation
Increase Decrease
Discount rate + 100 bps 146,340 124,305
Future salary increase + 100 bps 162,250 139,050
The sensitivity analysis of the defined benefit obligation to the significant actuarial assumptions has been
performed using the same calculation techniques as applied for calculation of defined benefit obligation
reported in the balance sheet.
12.5 At 30 June 2017, the weighted average duration of the defined benefit obligation was 6 years ( 2016: 6 years).
2017 2016
13. TRADE AND OTHER PAYABLES
Trade creditors 932,981 738,684

Bills payable - secured 13.1 3,955 53,375
Accrued liabilities 13.4 594,077 488,775
Advances from customers 13.5 253,779 246,502
Security deposits repayable on demand 13.2 55,976 54,076
Contractors’ retention money 133,524 52,375
Royalty and Excise Duty payable 33,569 31,645
Payable to Provident Fund Trust 10,485 7,791
Other Taxes payable 107,618 71,222
Sales Tax payable - net 234,507 332,980
Excise Duty payable 203,091 192,379
Unclaimed dividend 100,424 41,191
Preference dividend payable 795 1,013
Payable to Workers’ Profit Participation Fund 13.3 1,140,473 766,299
Payable to Workers’ Welfare Fund 157,210 131,539
Payable against redemption of preference shares 1,041 1,519
Other payables 5,214 28,144
3,968,719 3,239,509

13.1 These are secured against the securities as detailed in note 16.1 to these consolidated financial statements.
13.2 This represents security deposits received from distributors and contractors of the Holding Company.
Distributors and contractors have given the Holding Company a right to utilize deposits in ordinary course
of business.
2017 2016
13.3 Payable to Workers’ Profit Participation Fund

Allocation for the year 368,876 381,213
Interest for the year 5,298 5,311
Less: Paid during the year - (89,119)
At end of the year 1,140,473 766,299
13.3.1 The outstanding WPPF liability includes Rs. 677.4 million being the left over amount out of the total WPPF
liability of Rs. 766.30 million pertaining to the financial year ended 30 June 2012 to 30 June 2016. The amount
is payable to the WPPF as decided by the Honorable Lahore Court through order dated 04 May 2016.
13.4 This includes Rs. 227.38 million booked on account of Gas Infrastructure Development Cess (GIDC) for the
period from September 2014 to June 2017. The Holding Company, along with various other companies
has challenged the legality and validity of levy and demand of GIDC in Honorable Lahore High Court which
is pending adjudication. However, on a prudent basis, the Holding Company has recorded the GIDC
amount for the mentioned period. Further, due to non payment, default surcharge of Rs. 135.80 million for
the period from September 2015 to June 2017 has been imposed on the Holding Company, which has
not been recorded in these consolidated financial statement based on the opinion of legal advisor. The
management is hopeful that the Holding Company will not be required to pay the default surcharge.
13.5 This includes balance of Rs. 0.258 million (2016: Nil) payable to KTML - Holding Company against sale of
cement.
2017 2016
14. ACCRUED PROFIT / INTEREST / MARK-UP
Profit / interest / mark-up accrued on:

- Long term loans 49,674 10,435
- Redeemable capital - 440
- Syndicated term finances - 9
- Liabilities against assets subject to finance lease 898 1,224
- Short term borrowings 50,893 24,699
101,465 36,807
14.1 Interest / mark-up accrued on all loans are from conventional banks.

2017 2016
15. PROvISION FOR TAxATION - NET

Tax deducted / deposited at source (525,940) (333,710)
Advance income tax paid (1,462,378) (300,000)
(1,785,002) (496,458)
Less: Provision for taxation:
- current (2,188,241) (647,042)
- prior (17,288) (52,732)
(2,205,529) (699,774)
420,527 203,316
order dated 10 May 2011 passed u/s 221 of the Ordinance on the grounds that minimum tax liability payable
u/s 113 of the Ordinance of Rs. 34.60 million for the tax year 2010 was leviable in addition to taxes payable
under various final tax regimes. The Holding Company has contested the rectification order in appeal before
the ATIR, which has been disposed through appellate order dated 09 July 2014 in favour of the Holding
Company. The appeal order has not yet been issued by the department in this respect.
order dated 02 February 2011 passed u/s 221 of the Ordinance on the grounds that minimum tax liability
payable u/s 113 of the Ordinance of Rs. 35.69 million was also leviable in addition to taxes payable under
various final tax regimes. The Holding Company has contested the rectification order in appeal before the
ATIR, which has not been taken up for hearing to date.
15.3 Through Order-in-Original No.18/2009 dated 24 December 2009, the tax department finalized the adjudication
proceeding in respect of audit conducted by the department auditors for tax year 2009 and raised a demand
of principal sales tax and FED aggregating to Rs. 336.74 million along with applicable default surcharges
and penalties. The Holding Company preferred appeal against such order under the applicable provisions of
Sales Tax Act, 1990 and Federal Excise Act, 2005 before the Commissioner of Inland Revenue (appeals).
It is, however, appropriate to highlight that the Holding Company has also filed a writ petition with the Honorable
Lahore High Court against the above referred Order-In-Original demand. The Honorable Lahore High Court has
ordered that the tax department be restrained from taking any measures against the Holding Company.
15.4 Through Order-In-Original No. 10/2011 dated 30 July 2011, Holding Company’s refund claim of Central Excise Duty
(CED) of Rs. 913.01 million representing the excess payment of duty based on an inadvertent computation of related
‘retail price’ of cement products manufactured and supplied by the Holding Company, was rejected principally on the
grounds that related incidence of duty has been passed on to the consumers and hence the resultant refund claim is
hit by the mischief of provisions of then applicable section 3(d) of the Central Excise Act, 1944.
The Holding Company preferred appeal against the said order before the CIR(A) both on legal as well as
factual grounds, however, such appeal was not entertained by the Commissioner of Inland Revenue (Appeals)
and accordingly, the matter has been further agitated in appeal by the Holding Company before the Appellate
Tribunal Inland Revenue (“ATIR”).

15.5 Holding Company filed appeal before Appellate Tribunal Inland Revenue [ATIR] against Commissioner Inland
Revenue (CIR appeals) order for tax years 2009. The Appellate Tribunal Inland Revenue [ATIR] have accepted all
issues except for the issue of apportionment of expenses to dividend income and investment income which was
remanded back to the taxation officer. The Holding Company has filed an application with the tax department
for issuance of appeal effects of aforementioned appellate order. The tax department has assailed the relief
granted by CIR(A) to the Holding Company before ATIR and this appeal is pending adjudication.
15.6 The Additional Commissioner Inland Revenue (ACIR) through a notice u/s 122(9) b/122(5A) of the Income
Tax Ordinance 2001 dated 16 March 2016 and 03 May 2017 and raised demand amounting to Rs 1,001.39
million pertaining to tax year 2016 on account of disallowance of carry-forward and disallowance of adjustment
of prior year refunds amounting to Rs 625.563 million and Rs 375.825 million respectively. Holding Company
filed appeal against the above referred order before the Commissioner Inland Revenue (Appeals) [‘CIR(A)’]
who allowed relief to the extent of Rs 332.138 million on account of adjustment of ‘minimum tax’ and also
directed the officer to allow adjustment of prior year refunds after verification. The Holding Company has also
filed an appeal against the above referred appellate orders before Appellate Tribunal Inland Revenue dated
07 August 2017 which is pending for adjudication.
Ordinance 2001 dated 27 December 2016, initiated proceeding against the Holding Company intending to
amend the deemed assessment of various issues and raised a tax demand of Rs. 241.74 million. The Holding
Company filed an appeal before CIR (A). CIR (A) decided all the matters except for the issue of inclusion of
exchange gain related to export sales in favor of the Holding Company. The department has challenged CIR
(A) decision before ATIR which is pending adjudication.
Ordinance 2001 dated 31 October 2016, initiated proceeding against the Holding Company intending to
amend the deemed assessment of various issues and raised a tax demand of Rs. 68 million. The Holding
Company filed an appeal before CIR (A). CIR (A) decided all the matters except for the issue of inclusion of
exchange gain related to export sales in favor of the Holding Company. The department has challenged CIR
(A) decision before ATIR which is pending adjudication.
15.9 Through notices dated 19 February 2016 and 23 January 2017 issued under section 122 (9) / 122 (5A)
of the Income Tax Ordinance 2001, the Holding Company was confronted on the issue of non-charging
of Super Tax imposed under section 4B of the Income Tax Ordinance 2001 for tax years 2015 and 2016
respectively . The subject notices were challenged by the Holding Company through filling a writ petition
before Honorable Lahore High Court. Further, Honorable Lahore High Court through its interim order, has
directed the department not to pass any order in pursuance of the subject notice.
15.10 The Holding Company has preferred an appeal against the order in original No. 576/99 dated 18 September
1999, whereby the Holding Company was denied the benefit of SRO 484(1)/92 dated 14 May 1992, and
SRO 978(1)/95 dated 04 October 1995. Accordingly the demand of Rs. 0.81 million was raised against the
Holding Company. Appeal was dismissed by Central Excise and Sales Tax Tribunal on 19 May 2009. The
Holding Company has filed petition before the Honorable Lahore High Court, which is pending adjudication.
A rectification application under section 194 is also pending before the Customs, Federal Excise and Sales
Tax Appellate Tribunal beside the customs reference. No provision has been made in these consolidated
financial statements as the management and the Holding Company’s legal advisor are confident that the
ultimate outcome of this case will be in favor of the Holding Company.
Based on opinion of the Holding Company’s legal counsel, management is confident of favorable outcome in all
aforementioned matters, hence no provision is being recognized in respect of these matters in the consolidated

2017 2016
16. SHORT TERM BORROWINGS
Banking and financial institutions:

- Cash finance and others 16.1 2,820,233 1,398,000
- Running finance 16.2 255,890 9,707
Temporary bank overdrafts - unsecured 16.3 62,036 17,204
3,138,159 1,424,911
16.1 These facilities have been obtained from various banking companies for working capital requirements and
are secured by charge over current and future assets of the Holding Company, personal guarantees of
the Directors, pledge of stock, lien over import documents and title of ownership of goods imported under
letters of credit. These facilities will be expiring on various dates by 30 June 2018.
The cash finance and other facilities carry mark-up at the rates ranging from 2.75% to 16.78 % (2016:
4.25% to 19%) per annum payable quarterly.
The Holding Company has unavailed cash finance and others funded facilities aggregating Rs.740 million
(2016: Rs. 663 million) at the year end and the Holding Company has unavailed facilities for opening letters
of credit / guarantee aggregating Rs. 2,032 million (2016: Rs.2,938 million) at the year end.
16.2 The Holding Company has unavailed running finance funded facilities aggregating Rs.393 million (2016:
325 million).
The running finance carry mark-up at the rates ranging from 6.33 % to 8.75 % (2016: 6.75% to 9.49%) per
annum payable quarterly.
16.3 This represents temporary overdraft due to cheques issued by the Holding Company at the reporting date.
16.4 All loans are interest / mark-up based from conventional banks.
17. CONTINGENCIES AND COMMITMENTS

17.1 Contingencies
17.1.1 The Holding Company has filed writ petitions before the Honorable Lahore High Court against the legality of
judgment passed by the Customs, Excise and Sales Tax Appellate Tribunal whereby the Holding Company was
held liable on account of wrongful adjustment of input sales tax on raw materials; the amount involved pending
adjudication before the Honorable Lahore High Court is Rs.10.01 million. No provision has been made in these
consolidated financial statements in respect of the matter as the management and the Holding Company’s legal
advisor are confident that the ultimate outcome of this case will be in favor of the Holding Company.
17.1.2 The Holding Company has filed an appeal before the Customs, Central Excise and Sales Tax Appellate
Tribunal, Karachi against the order of the Deputy Collector Customs whereby the refund claim of the
Holding Company amounting to Rs. 12.35 million was rejected and the Holding Company was held liable
to pay an amount of Rs. 37.05 million by way of 10% customs duty allegedly leviable in terms of SRO
584(I)/95 and 585(I)/95 dated 01 July 1995. The impugned demand was raised by the department on the
alleged ground that the Holding Company was not entitled to exemption from payment of customs duty
and sales tax in terms of SRO 279(I)/94 dated 02 April 1994.
The Honorable Lahore High Court, upon the Holding Company’s appeal, vide its order dated 06 November
2001 has decided the matter in favor of the Holding Company; however, the Collector of Customs has
preferred a petition before the Honorable Sindh High Court, which is pending adjudication. No provision
has been made in these consolidated financial statements in respect of the above stated amount as the
management and the Holding Company’s legal advisor are confident that the ultimate outcome of this case
will be in favor of the Holding Company.
17.1.3 The Federal Board of Revenue (FBR) has filed an appeal before the Honorable Supreme Court of Pakistan
against the judgment delivered by the Honorable Lahore High Court in favor of the Holding Company in a writ
petition. The Holding Company, through the said writ petition, had challenged the demand raised by the FBR
for payment of duties and taxes on the plant and machinery imported by the Holding Company pursuant to
the exemption granted in terms of SRO 484 (I) / 92 dated 14 May 1992. The FBR, however, alleged that the
said plant & machinery could be locally manufactured and duties and taxes were therefore not exempted. A
total demand of Rs. 1,386.72 million was raised by the FBR out of which an amount of Rs. 269.33 million was
deposited by the Holding Company as undisputed liability. No provision has been made in these consolidated
financial statements in respect of the above stated amount as the management and the Holding Company’s
legal advisor are confident that the ultimate outcome of this case will be in favor of the Holding Company.
17.1.4 The Holding Company has filed an appeal before the Honorable Supreme Court of Pakistan against the
judgment of the Division Bench of the Honorable High Court of Sindh at Karachi. The Division Bench, by
judgment dated 15 September 2008, has partly accepted the appeal by declaring that the levy and collection
of infrastructure cess / fee prior to 28 December 2006 was illegal and ultra vires and after 28 December 2006,
it was legal and the same was collected by the Excise Department in accordance with the law. The appeal
has been filed against the declaration that after 28 December 2006, the Excise Department has collected the
infrastructure cess / fee in accordance with law. The Province of Sindh and Excise and Taxation Department
has also preferred an appeal against the judgment decided against them. The Honorable Supreme Court
consolidated both the appeals and were set aside. Thereafter, law has been challenged in constitution petition
in the Honorable Sindh High Court Karachi. Stay has been granted by the Honorable High Court on 31 May
2011 on payment of 50% of the cess to the Excise Department and on furnishing of bank guarantee for
remaining 50% to them. The petition is pending for hearing and stay is continuing.
The management and the Holding Company’s legal advisor are confident that the ultimate outcome of this
case will be in favor of the Holding Company.
17.1.5 Competition Commission of Pakistan, vide order dated 27 August 2009, has imposed penalty on twenty
cement factories of Pakistan at the rate of 7.5% of the turnover value. The Commission has imposed
penalty amounting to Rs. 586.19 million on the Holding Company. The Commission has alleged that
provisions of section 4(1) of the Competition Commission Ordinance, 2007 have been violated. However,
after the abeyance of Honorable Islamabad High Court pursuant to the judgment of Honorable Supreme
Court of Pakistan dated 31 July 2009, the titled petition has become infructuous and the Holding Company
has filed a writ petition No. 15618/2009 before the Honorable Lahore High Court. No provision has been
made in these consolidated financial statements as the management and the Holding Company’s legal
advisor are confident that the ultimate outcome of this case will be in favor of the Holding Company.
17.1.6 The Additional Collector, Karachi has issued show cause notice alleging therein that the Holding Company
has wrongly claimed the benefits of SRO No. 575(I)/2006 dated 05 June 2006 on the import of pre-
fabricated buildings structure. Consequently, the Holding Company is liable to pay Government dues
amounting to Rs. 5.55 million. The Holding Company has submitted reply to the show cause notice and
currently proceedings are pending before the Additional Collector. No provision has been made in these
consolidated financial statements as the management and the Holding Company’s legal advisor are
confident that the ultimate outcome of this case will be in favor of the Holding Company.

17.1.7 The customs department has filed an appeal against the judgment dated 19 May 2009, passed in favor of
the Holding Company pursuant to which the Holding Company is not liable to pay custom duty amounting
to Rs. 0.59 million relating to import of some machinery vide L/C No. 0176-01-46-518-1201 in terms of
SRO 484(1)/92 dated 14 May 1992, and SRO 978(1)/95 dated 04 October 1995. The appeal is pending
before the Honorable Lahore High Court. No provision has been made in these consolidated financial
statements as the management and the Holding Company’s legal advisor are confident that the ultimate
outcome of this case will be in favor of the Holding Company.
17.1.8 Surcharge of Rs. 154 million has been imposed by Mines and Minerals Department, Government of the
Punjab under Rule 68(2) of Punjab Mining Concession Rules, 2002 (“Rules”) against which the Holding
Company has filed writ petition against Government of Punjab via writ petition No. 1008/2014 to challenge
the basis of Rules. The titled petition is currently pending before the Honorable Lahore High Court.
Management and the Holding Company’s legal advisor are confident that the ultimate outcome of this
case will be in favor of the Holding Company.
17.1.9 Guarantees given by banks on behalf of the Holding Company are of Rs. 483.387 million (2016: Rs. 463.32
million) in favor of Sui Northern Gas Pipeline Limited and Government Institutions.
17.1.10 Contingencies relating to tax matters are disclosed in note 15 to these consolidated financial statements.
2017 2016
17.2 Commitments
17.2.1 in respect of:
Holding Company
- capital expenditure 14,954,991 94,606
- irrevocable letters of credit for spare parts 847,495 1,204,256
Subsidiary Company
- plant and machinery 428,400 2,420,542
- civil works 117,717 1,046,423
- mechanical services 40,745 -
16,389,348 4,765,827
18. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 18.1 22,185,383 22,409,641

Capital work-in-progress - at cost 18.6.1 5,944,809 1,201,848
Stores held for capitalization 166,091 7,437
28,296,283 23,618,926

18.1 Operating fixed assets

Net book
At At At At
For the value at
year 30 June
2016 2017 2016 2017 2017
Owned
Freehold land
- cost 56,810 - (1,792) 55,018 - - - - - 55,018
- surplus on revaluation 373,286 - (12,456) 360,830 - - - - - 360,830
430,096 - (14,248) 415,848 - - - - 415,848

- cost 4,747,570 435,709 (120,411) 5,062,868 5 - 10 2,006,104 213,065 (48,149) 2,171,020 2,891,848
- surplus on revaluation 303,168 - (5,561) 297,607 5 - 10 83,393 11,434 (3,557) 91,270 206,337
5,050,738 435,709 (125,972) 5,360,475 2,089,497 224,499 (51,706) 2,262,290 3,098,185

- cost 96,927 3,026 - 99,953 5 - 10 74,400 2,313 - 76,713 23,240
100,781 3,026 - 103,807 76,325 2,513 - 78,838 24,969

Plant and machinery
- cost 24,912,343 1,309,433 (239,601) 25,982,175 5 - 20 12,064,376 1,290,702 (149,132) 13,205,946 12,776,229
32,207,203 1,309,433 (263,355) 33,253,281 13,971,626 1,577,319 (160,233) 15,388,712 17,864,569
Furniture, fixtures and equipment 368,900 68,718 (34,628) 402,990 10 - 30 188,869 36,115 (31,781) 193,203 209,787
Quarry equipment 185,023 - - 185,023 20 165,608 3,882 - 169,490 15,533
vehicles 212,407 52,613 (21,792) 243,228 20 92,500 29,369 (18,237) 103,632 139,596
38,561,148 1,869,499 (459,995) 39,970,652 16,589,151 1,873,824 (261,957) 18,201,018 21,769,634
Leased
Plant and machinery
- cost 679,676 - - 679,676 5 243,861 21,895 - 265,756 413,920
- surplus on revaluation 2,852 - - 2,852 5 1,023 - - 1,023 1,829
682,528 - - 682,528 244,884 21,895 - 266,779 415,749
2017 39,243,676 1,869,499 (459,995) 40,653,180 16,834,035 1,895,719 (261,957) 18,467,797 22,185,383

Net book
At At At At
For the value at
01 July Additions Disposals 30 June Rate 01 July year Disposals 30 June 30 June
2015 2016 2015 2016 2016
Owned
Freehold land
- cost 56,810 - - 56,810 - - - - - 56,810
- surplus on revaluation 373,286 - - 373,286 - - - - - 373,286
430,096 - - 430,096 - - - - 430,096
- cost 4,550,741 217,969 (21,140) 4,747,570 5 - 10 1,826,601 198,789 (19,286) 2,006,104 2,741,466
- surplus on revaluation 303,364 - (196) 303,168 5 - 10 70,589 12,869 (65) 83,393 219,775
4,854,105 217,969 (21,336) 5,050,738 1,897,190 211,658 (19,351) 2,089,497 2,961,241
- cost 95,583 1,344 - 96,927 5 - 10 71,968 2,432 - 74,400 22,527
99,437 1,344 - 100,781 73,683 2,642 - 76,325 24,456
Plant and machinery
- cost 24,740,485 471,254 (305,350) 24,906,389 5 - 20 11,007,926 1,190,571 (134,241) 12,064,256 12,842,133
32,053,051 471,254 (323,056) 32,201,249 12,584,895 1,525,684 (139,073) 13,971,506 18,229,743
Furniture, fixtures and equipment 304,288 70,754 (188) 374,854 10 - 30 162,861 26,293 (165) 188,989 185,865
Quarry equipment 197,795 - (12,772) 185,023 20 173,444 4,869 (12,705) 165,608 19,415
vehicles 171,091 47,989 (6,673) 212,407 20 75,356 23,484 (6,340) 92,500 119,907
38,115,863 809,310 (364,025) 38,561,148 14,972,016 1,794,769 (177,634) 16,589,151 21,971,997
Leased
Plant and machinery
- cost 679,676 - - 679,676 5 220,923 22,938 - 243,861 435,815
- surplus on revaluation 2,852 - - 2,852 5 927 96 - 1,023 1,829
682,528 - - 682,528 221,850 23,034 - 244,884 437,644
2016 38,798,391 809,310 (364,025) 39,243,676 15,193,866 1,817,803 (177,634) 16,834,035 22,409,641
18.2 Additions in operating fixed assets include transfers from capital work-in-progress amounting to Rs. 569.87 million (2016: Rs. 296.80 million).
18.3 Ownership of the housing colony’s assets included in the operating fixed assets is shared by the Holding Company jointly with Agritech Limited in ratio of 101:245 since the
time when both the companies were managed by Pakistan Industrial Development Corporation. These assets are in possession of the housing colony establishment for
mutual benefits.

18.4 Depreciation charge for the year has been allocated as follows:
2017 2016
Cost of sales 33 1,849,351 1,784,695

Administrative expenses 35 43,290 32,963
Capital work-in-progress 34.2 & 18.6.1.1 3,078 145
1,895,719 1,817,803
18.5 Disposal of Property, plant and equipment

Net
Depreciation value value / (Loss) Disposal Purchaser
Plant and machinery
Mechanical Workshop Equipments 2,526 2,273 253 132 (121) Auction M.Saddique & Co.
Gas valve 750 417 333 244 (89) Auction M/s. Maqsood & Brothers
valve Seat Exhaust 1,206 694 512 393 (119) Auction M/s. Maqsood & Brothers
Slide Shoe Fixed 2,605 626 1,979 398 (1,581) Insurance Claim M/s. EFU General Insurance Co.
Humidity Cabinet 1,169 333 836 178 (658) Insurance Claim M/s. EFU General Insurance Co.
Welding Plant 623 383 240 95 (145) Insurance Claim M/s. EFU General Insurance Co.
Intelligent Panel 1,709 409 1,300 261 (1,039) Insurance Claim M/s. EFU General Insurance Co.
Fuel Feed Pump Complete 3,846 2,260 1,586 587 (999) Insurance Claim M/s. EFU General Insurance Co.
Service Kits and Flender Drive 102,028 88,264 13,764 15,569 1,805 Insurance Claim M/s. EFU General Insurance Co.
Bucket Elevator 4,980 2,468 2,512 760 (1,752) Insurance Claim M/s. EFU General Insurance Co.
Shaft Machine 956 694 262 146 (116) Insurance Claim M/s. EFU General Insurance Co.
Inducer Wheel 841 610 231 128 (103) Insurance Claim M/s. EFU General Insurance Co.
Compressors 1,024 743 281 156 (125) Insurance Claim M/s. EFU General Insurance Co.
Gas Analyzer 1,198 211 987 448 (539) Auction M/s. Niaz & Co.
LECO-250 Electronic 384 97 287 187 (100) Auction M/s. Niaz & Co.
Rollers 14,006 12,122 1,884 2,676 792 Auction M/s. Niaz & Co.
Load Cell 857 217 640 110 (530) Auction M/s. Niaz & Co.
Gas Inlet Casing 529 175 354 416 62 Auction M/s. Niaz & Co.
Fiber Glass Tank 204 66 138 160 22 Auction M/s. Niaz & Co.
Nozzel Air Assembly 2,344 686 1,658 255 (1,403) Auction M/s.Imtiaz Traders
Slide Shoe Moveable 4,031 968 3,063 1,878 (1,185) Auction M/s.Imtiaz Traders
Impeller 620 480 140 68 (72) Auction M/s.Imtiaz Traders
Dust Collecting Blower 846 585 261 92 (169) Auction M/s.Imtiaz Traders
Transmission Shaft 585 386 199 64 (135) Auction M/s.Imtiaz Traders
Air Blasters 4,421 2,308 2,113 1,938 (175) Auction M/s.Imtiaz Traders
Hydraulic Drive Cylinder 2,843 789 2,054 310 (1,744) Auction M/s.Imtiaz Traders
Rotary Blower 312 214 98 34 (64) Auction M/s.Imtiaz Traders
Roller Tyre 8,103 5,000 3,103 2,852 (251) Auction M/s.Imtiaz Traders
Stainless Steel Hose 356 272 84 39 (45) Auction M/s.Imtiaz Traders
x-Ray Tube 1,595 898 697 440 (257) Auction M/s.Imtiaz Traders
Shut Off Gate 2,193 806 1,387 608 (779) Auction M/s.Imtiaz Traders
Electric Hilti Machine 233 168 65 25 (40) Auction M/s.Imtiaz Traders
Lynx Camera 5,313 1,276 4,037 2,475 (1,562) Auction M/s.Imtiaz Traders
Host With Motor 843 247 596 92 (504) Auction M/s.Imtiaz Traders
Pipe for Coal Material 440 Heat Resistant 2,158 1,718 440 288 (152) Auction M/s.Imtiaz Traders
Hydraulic Breaker 2,859 902 1,957 776 (1,181) Auction M/s.Imtiaz Traders
Weighbridge Steel Plate Form 1,425 369 1,056 648 (408) Auction M/s.Imtiaz Traders
valve Inlet Air Complete Unit 1,100 314 786 482 (304) Auction M/s.Imtiaz Traders
Gear Box 497 229 268 54 (214) Auction M/s.Imtiaz Traders
Bearings 20,961 7,101 13,860 2,282 (11,578) Auction M/s.Imtiaz Traders
Axial Fan With Motor Complete 3,026 959 2,067 821 (1,246) Auction M/s.Imtiaz Traders
Cover For Cable 981 163 818 107 (711) Auction M/s.Imtiaz Traders
RH Wire Feed Unit 326 151 175 35 (140) Auction M/s.Imtiaz Traders
Net
Depreciation value value / (Loss) Disposal Purchaser
Lime Stone Bin 2,072 622 1,450 226 (1,224) Auction M/s.Imtiaz Traders
Kinetrol van Actuator Complete 133 59 74 14 (60) Auction M/s.Imtiaz Traders
Gas Conditioning Equipment 4,625 1,666 2,959 1,174 (1,785) Auction M/s.Imtiaz Traders
Compressors 161 68 93 18 (75) Auction M/s.Imtiaz Traders
Domestic Feeder 8,062 2,617 5,445 3,268 (2,177) Auction M/s.Imtiaz Traders
Rollers 657 121 536 71 (465) Auction M/s.Imtiaz Traders
Side Liner 785 171 614 85 (529) Auction M/s.Imtiaz Traders
Drive Plate Inlet 5,091 1,608 3,483 1,383 (2,100) Auction M/s.Imtiaz Traders
Magnet Separator 1,150 1,035 115 70 (45) Auction M/s.Imtiaz Traders
Rotary Sluice Complete 3,939 1,365 2,574 1,803 (771) Auction M/s.Muhammad Hayat
Change Over valve 2,292 403 1,889 876 (1,013) Auction M/s.Muhammad Hayat
Side Liner 8,646 3,550 5,096 1,964 (3,132) Auction S.N International Lahore
Gyro Prima Whip Complete 1,316 156 1,160 461 (699) Auction S.N International Lahore
Compressors 2,466 973 1,493 592 (901) Auction S.N International Lahore
Suspended Electromagnetic 7,390 3,141 4,249 1,686 (2,563) Auction S.N International Lahore
Filter Bronze 1,936 802 1,134 450 (684) Auction S.N International Lahore
Cooler 1,922 797 1,125 447 (678) Auction S.N International Lahore
262,055 159,205 102,850 54,295 (48,555)

vehicles
Honda Civic LE-11-717 1,953 1,391 562 1,200 638 Auction Mr.M. Asif S/O. M.Akram
Honda Civic LEB-07-5131 1,461 1,305 156 660 504 Auction Mr.Rana Shamshir
Honda Civic LEB-09-6040 1,924 1,561 363 1,205 842 Auction Mr.Muhammad Yousaf Nabeel
Honda Civic LED-09-3499 1,896 1,483 413 1,230 817 Auction Mr.Muhammad Mushtaq
Toyota Corolla LE-10-5156 1,446 1,052 394 700 306 Auction Mr.Talha Bin Shehzad
Toyota Corolla LEJ-07-8507 1,423 1,223 200 826 626 Auction Mr.Tariq Amjad
Toyota Corolla LED-08-4095 1,350 1,140 210 865 655 Auction Mr.Habibullah Khan
Suzuki Cultus APY-646 792 654 138 372 234 Auction Mr.Haroon Ameer
Suzuki Cultus LEC-09-7102 803 660 143 656 513 Auction Mr.Faisal Yaqoob
Suzuki Cultus LEE-12-6646 1,037 601 436 822 386 Auction Mr.Muhammad Awais
Suzuki Cultus LEF-12-2803 1,036 589 447 780 333 Auction Mr.Saleem ud Din Baig
15,121 11,659 3,462 9,316 5,854

Cement Silos Part 118,421 47,866 70,555 66,000 (4,555) Insurance Claim M/s. EFU General Insurance Co.
Compressors 2,906 2,616 290 1,093 803 Auction M.Saddique & Co.
Building Family Club 4,153 852 3,301 140 (3,161) Auction Malik Mehar M.Naveed
Power House-Concrete Pavement 352 317 35 950 915 Auction M.Saddique & Co.
Protection Boundary Wall 140 56 84 646 562 Sale Land Acquisition Collector Mianwali
125,972 51,707 74,265 68,829 (5,436)

Freehold Land
Land 14,248 - 14,248 52,555 38,307 Sale Land Acquisition Collector Mianwali
Furniture, Fixtures & Office Equipments

Laptop 218 93 125 393 268 Insurance Claim M/s. EFU General Insurance Co.
Projectors 518 249 269 934 665 Insurance Claim M/s. EFU General Insurance Co.
Air Conditioner 83 19 64 150 86 Insurance Claim M/s. EFU General Insurance Co.
Other Equipments 10,727 10,451 276 41 (235) Auction M/s.Muhammad Hayat
Furniture 4,375 4,196 179 29 (150) Auction M/s.Muhammad Hayat
Television (Plasma) 378 285 93 18 (75) Auction M/s.Muhammad Hayat
16,299 15,293 1,006 1,565 559
Other asset having
book value below Rs.50,000 26,300 24,093 2,207 8,631 6,424
2017 459,995 261,957 198,038 195,191 (2,848)
2016 364,025 177,634 186,391 56,327 (130,064)

2017 2016
18.6 Movement in capital work-in-progress - at cost
At beginning of the year 1,201,848 116,016

Additions during the year 5,312,828 1,382,632
Less: Transfers during the year 18.2 (569,867) (296,800)
At end of the year 18.6.1 5,944,809 1,201,848
18.6.1 Capital work-in-progress - at cost
Civil works 1,462,228 509,042

Land 550,918 -
Plant and machinery 2,470,483 5,171
Un-allocated capital expenditure 18.6.1.1 270,574 36,403
Mechanical works 442,293 6,453
Electrical works 174,030 4,284
Finance Cost 144,342 -
Advances to suppliers against:
- civil works 101,584 144,544
- furniture and fixtures - 11,043
- electrical items 3,502 33,929
- mechanical items 7,642
- plant and machinery 310,770 441,832
- vehicles 2,822 1,891
- others 3,621 7,256
5,944,809 1,201,848
18.6.1.1 Un-allocated capital expenditure
Salaries and wages 100,153 19,123

Traveling 7,237 -
Fee and subscription 43,256 -
Legal and professional expenses 8,379 1,001
Repair and maintenance 2,419 -
Finance cost 2,000 -
vehicles running cost 743 -
Rent, rates & taxes 84 -
Insurance 452 -
Communication expenses 123 -
Energy expense 47 -
Consultancy 40,898 11,249
Depreciation 1,759 145
Others expenses 63,024 4,885
270,574 36,403

2017 2016
19. INTANGIBLE ASSETS - COST

Additions during the year 29,032 -
Accumulated Amortization
Amortization for the year 3,826 -
Net book value 25,206 -
Amortization rate - % per annum 33% 33%
20. LONG TERM LOANS TO EMPLOYEES - SECURED
House building 2,956 3,261

vehicles 2,388 2,553
Others 4,949 3,977
10,293 9,791
Less: Current portion presented under current assets 25 (4,494) (4,163)
5,799 5,628
20.1 These loans are secured against employees’ retirement benefits and carry interest at the rates ranging from
6% to 12% per annum (30 June 2016: 6% to 12 % per annum). These loans are recoverable in 30 to 120
monthly installments.
20.2 This includes loans to executives amounting to Rs. 2.42 million (2016: Rs. 2.58 million). Further, no amount
was due from Directors and Chief Executive at the year end (2016: Rs. Nil).
This includes deposits with various utility companies, regulatory authorities and others.

2017 2016
22. STORES, SPARE PARTS AND LOOSE TOOLS
Stores 22.1 3,111,284 2,806,644

Spare parts 3,549,109 2,524,619
Loose tools 90,193 52,487
6,750,586 5,383,750
22.1 Stores include items in transit amounting to Rs. 720.60 million (2016: Rs. 1257.04 million).
2017 2016
23. STOCK-IN-TRADE
Raw material 105,006 38,793

Packing material 169,129 168,590
Work-in-process 819,353 395,257
Finished goods 207,747 283,252
1,301,235 885,892
Less: Cement stock written off - (13,072)
1,301,235 872,820
24. TRADE DEBTS
Considered good
Export - secured 24.1 34,849 46,947
Local - unsecured 646,444 517,919
681,293 564,866
24.1 These are secured against letters of credit.

2017 2016
25. LOANS AND ADvANCES
Advances - unsecured, considered good
- Employees 25.1 20,086 39,587

- Suppliers 25.2 793,536 761,417
813,622 801,004
Current portion of long term loans to employees 20 4,494 4,163
818,116 805,167
25.1 This includes loans to executives amounting to Rs. 8.64 million (2016: Rs. 10.58 million). Further, there are
no loans due from Directors and Chief Executive at the year end (2016: Nil).
25.2 This includes an amount of Rs. 502.41 million (2016: Rs. 318.55 million) advanced to Ministry of Railways
for transportation of coal and cement.
2017 2016
26. SHORT TERM INvESTMENT
Investment at fair value through profit or loss - listed securities
Next Capital Limited:

1,875,000 (2016: Nil) right shares of Rs. 8 each
Market value Rs. 23.01 per share (2016: Rs. 8 per share)
Cost
At beginning and end of the year 30,000 15,000
Unrealized fair value gain / (loss)
At beginning of the year (3,000) (4,470)

Fair value gain for the year 37 50,659 1,470
At end of the year 47,659 (3,000)
Fair value at 30 June 77,659 12,000

2017 2016
27. SHORT TERM DEPOSITS AND PREPAYMENTS
Margin against:
- letters of credit 17,144 9,353

- bank guarantees 68,014 59,229
Prepayments 2,407 1,890
Security deposits - 1,122
87,565 71,594
28. ACCRUED PROFIT
This represents profit accrued on deposits and PLS bank accounts at the rates ranging from 2.50% to 5.87%
(2016: 2.50 % to 5.87% ) per annum.
2017 2016
29. REFUNDS DUE FROM GOvERNMENT
Advance Income Tax - Subsidiary Company 162,649 -

Sales Tax refundable - Subsidiary Company 237,702 20,760
Sales Tax and Customs Duty 29.1 16,797 16,797
417,148 37,557
29.1 This represents amount paid to Government under protest for various cases which have been decided in
favor of the Group.
2017 2016
30. OTHER RECEIvABLES
Due from the Ultimate Holding Company - unsecured 30.1 32,437 21,311
Others 60,680 131,836
93,117 153,147
30.1 This carry interest at 1% (2016: 1%) per annum in addition to the average borrowing rate of the Holding
Company.

2017 2016
31. CASH AND BANK BALANCES
- Cash in hand in local currency 6,025 11,222

- Cash in hand in foreign currency 930 473
6,955 11,695
Cash at bank:
Current accounts:
- foreign currency 1,944 3,206
- local currency 31.1 215,599 235,203
217,543 238,409
Deposit accounts 31.2 224,984 191,624

442,527 430,033
449,482 441,728
31.1 These include deposits amounting to Rs. 2.758 million (2016: Rs.12.316 million) placed under an
arrangement permissible under Shariah.
31.2 These carry return at 2.50% to 5.60% (2016: 2.50 % to 5.87%) per annum. These include deposits
amounting to Rs. 124.38 million (2016: Rs.100.50 million) placed under an arrangement permissible under
Shariah. Remaining balances represents deposits with conventional banks.
2017 2016
32. SALES - NET
Gross local sales 29,519,730 25,591,053

Less:
Federal Excise Duty (2,931,708) (1,194,966)
Sales Tax (4,764,821) (4,144,108)
Discount (281,286) (166,723)
Commission (110,471) (118,534)
(8,088,286) (5,624,331)
Net local sales 21,431,444 19,966,722

Export sales 2,453,966 3,449,474
23,885,410 23,416,196

2017 2016
33. COST OF GOODS SOLD
Raw materials consumed 33.1 964,601 827,364

Packing materials consumed 1,298,453 1,458,266
Fuel 4,768,365 4,032,659
Power and associated costs 3,159,400 2,650,949
Stores, spare parts and loose tools consumed 1,186,943 929,224
Rent, rates and taxes 25,219 26,254
Insurance 57,813 53,172
Repairs and maintenance 464,575 385,427
Depreciation 18.4 1,849,351 1,784,695
vehicles running and maintenance 99,941 79,326
Cement stock written off - 13,072
Other expenses 33.3 141,331 128,231
14,871,441 13,056,318
Work in process:
At end of the year (819,354) (395,257)
(424,097) 302,100
Cost of goods manufactured 14,447,344 13,358,418
Finished goods:
At end of the year (207,747) (283,252)
62,433 45,173
Cost of goods sold 14,509,777 13,403,591
33.1 Raw materials consumed

Add: Purchases made during the year 1,030,535 827,182
1,069,328 866,157
Less: At end of the year 104,727 38,793
964,601 827,364
33.2 Salaries, wages and other benefits expense includes contribution to provident fund trust amounting to
33.3 Other expenses include housing colony expenses aggregating to Rs. 73.23 million (2016: Rs. 67.35 million).
2017 2016
34. DISTRIBUTION COST

Travelling and conveyance 80,349 54,730
vehicle running and maintenance 13,989 13,009
Advertisement and sale promotions 338,071 140,451
Freight and forwarding 668,977 1,027,561
Other expenses 34.2 24,513 12,126
1,275,182 1,359,896
34.2 It includes depreciation of Rs. 1.464 million (2016: Nil).
2017 2016
35. ADMINISTRATIvE ExPENSES

Travelling 80,622 82,578
vehicle running and maintenance 19,499 23,511
Legal and professional charges 35.2 28,934 46,525
Depreciation 18.4 43,290 32,963
Rent, rates and taxes 5,494 227
Security Charges 7,359 -
Other expenses 83,720 71,377
636,170 508,262

35.2 Legal and professional charges include following in respect of Auditors’ remuneration for:
2017 2016
Annual statutory audit 1,450 1,450

Interim review 400 400
Interim audit and other certification 1,058 1,058
Out of pocket expenses 425 425
3,333 3,333
35.3 The Holding Company has shared expenses aggregating Rs. 13.96 million (2016: Rs. 14.97 million) on
account of combined offices with the Ultimate Holding Company. These expenses have been recorded in
respective account.
2017 2016
36. OTHER CHARGES
Donation 36.1 21,054 16,991

Workers’ Profit Participation Fund (WPPF) 368,876 381,213
Interest on Workers’ Profit Participation Fund (WPPF) 5,298 5,311
Workers’ Welfare Fund (WWF) 138,293 126,052
Loss on disposal of property, plant and equipment 2,848 130,064
536,369 659,631
36.1 Donations for the year have been given to:

Daud Khel Health Care Centre 1,124 -
Tariq Niazi Hockey Stadium 169 -
21,054 16,991
36.1.1 None of the Directors of the Holding Company or their spouse have any interest in donees.
2017 2016
37. OTHER INCOME
Income from financial assets:

Profit on bank deposits 37.1 19,913 15,258
Tender fee 25 -
Interest on advances to the Ultimate Holding Company 2,847 1,231
Unrealized gain on re-measurement of short term investment 50,659 1,470
Reversal of provision against doubtful debts - 3,423
Interest on loans to employees 522 518
73,966 21,900
Income from non-financial assets:
Sale of scrap 8,669 2,186
Exchange gain 27,360 -
Miscellaneous 5,927 2,380
41,956 4,566
115,922 26,466
37.1 This includes profit earned on deposits under an arrangements which are permissible under Shariah
amounting to Rs. 4.41 million (2016: Rs. 3.65 million). The remaining profit relates to interest / markup
based arrangement from conventional banks.
2017 2016
38. FINANCE COST
Profit / interest / mark up on:

- Long term loans and finances - 19,694
- Redeemable capital - 180,382
- Syndicated term finances 3,189 12,334
- Liabilities against assets subject to finance lease 21,928 23,860
- Short term borrowings 16 115,247 136,248
140,364 372,518
Exchange loss - net 38.1 - 27,635
Bank and other charges 33,883 35,377
174,247 435,530
38.1 This represents exchange loss incurred on actual currency transactions.

2017 2016
39. TAxATION
Income tax
- current 2,188,241 647,042
- prior 17,288 52,732
2,205,529 699,774
Deferred (112,254) 1,533,179
2,093,275 2,232,953
39.1 Tax charge reconciliation
Numerical reconciliation between tax expense and accounting profit:

Applicable tax rate as per Income Tax Ordinance, 2001 31% 32%
Tax on accounting profit 2,129,810 2,264,241

Effect of final tax regime (289,546) (236,102)
Change in proportion of local and export sales 31,133 (74,414)
Super Tax 204,590 213,125
Effect of prior year adjustment 17,288 52,732
Others - 13,371
2,093,275 2,232,953
39.2 The Finance Act, 2017 amended Section 5A of the Income Tax Ordinance, 2001 under which every public
company other than a scheduled bank or modaraba, that derives profits for a tax year and does not
distribute atleast 40 percent of its after tax profits within six months of the end of the tax year through cash
or bonus shares shall be liable to pay tax at the rate of seven and a half percent of its accounting profit
before tax.
During the year, the Holding Company has paid interim dividend equivalent to 22 % of its after tax profits.
Accordingly, no provision for tax under the abovementioned section has been recognized in these
consolidated financial statements.
As explained in note 50 to the consolidated financial statements, the Board of Directors in their meeting
held on September 13, 2017 has recommended sufficient cash dividend for the year ended 30 June 2017
which complies with the above stated requirements. Accordingly, no provision for tax on undistributed
reserves has been recognized in these consolidated financial statements for the year ended 30 June
2017.

40. EARNINGS PER SHARE - BASIC AND DILUTED
Unit 2017 2016
40.1 Basic earnings per share
Profit after taxation Rupees in ‘000 4,776,312 4,842,799
Weighted average number of

ordinary shares No. of shares in ‘000 527,734 527,734
Rupees 9.05 9.18
There is no dilution effect on the basic earnings per share.
2017 2016
41. CASH AND CASH EQUIvALENTS
Short term running finance 16 (255,890) (9,707)

Cash and bank 31 449,482 441,728
193,592 432,021
42. TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Related parties comprise of the Ultimate Holding Company, associated companies, directors, key management
personnel, employee benefits fund and other companies where directors have significant influence.
Details of transactions and balances with related parties except those disclosed else where in these consolidated
financial statements are as follows:
2017 2016
Ultimate Holding Company (Kohinoor Textile Mills Limited)

Dividend paid 1,311,347 728,526
Key management personnel
Remuneration and other benefits 520,966 312,388

2017 2016
Other related parties

Dividend paid 4,986 4,738
Post employment benefit plans
Contributions to Provident Fund Trust 110,288 82,494

Balance of Provident Fund Trust 10,485 7,791
Payments to Employees Gratuity Fund Trust 16,732 15,135
Balance of Employees Gratuity Fund Trust 74,418 62,724
43. REMUNERATION OF CHAIRMAN, CHIEF ExECUTIvE, DIRECTORS,

NON-ExECUTIvE DIRECTORS AND ExECUTIvES
The aggregate amounts charged in the consolidated financial statements for the year for remuneration, including all
benefits to the Chairman, Chief Executive, Directors and Executives of the Group are as follows:
2017
Directors

Executive
Short term benefits

House rent 3,024 720 3,981 - 108,808
Medical - - 322 - 6,103
Conveyance - 1,917 1,248 - 32,357
Utilities 1,764 180 1,990 - 21,490
Special Allowance - - - - 508
25,200 16,857 36,695 - 430,642

Contribution to Provident Fund Trust 1,688 1,278 2,279 - 22,713
26,888 18,135 38,974 - 453,355
Numbers 1 1 4 5 283

2016
Directors

Executive
Short term benefits

House rent 1,920 480 509 - 62,549
Medical - - 52 - 3,527
Conveyance - 1,473 452 - 21,396
Utilities 1,120 120 254 - 13,232
16,000 11,433 8,073 - 272,473

Contribution to Provident Fund Trust 1,072 852 509 - 13,982
17,072 12,285 8,582 - 286,455
Numbers 1 1 1 5 157
43.1 The Chairman, Chief Executive, Directors and some of the Executives are also provided with the Group
maintained cars in accordance with their terms of employment.
43.2 Aggregate amount charged in these consolidated financial statements in respect of meeting fee paid to
Directors is Rs. 0.31 million (2016: Rs.0.19 million).
44. CAPACITY AND PRODUCTION

Capacity Actual Production
2017 2016 2017 2016
----------------------- Metric tons ----------------------
Clinker 3,360,000 3,360,000 3,299,047 3,092,793
Lower capacity utilization of cement plant is due to gap between demand and supply of cement. The capacity of
plant has been determined on the basis of 300 days.

45. OPERATING SEGMENT
Information about operating segment

These consolidated financial statements have been prepared on the basis of single reportable segment.
Geographical information
The Group operates in two principal geographical areas, Asia and Africa other than Pakistan and revenue from
continuing operations from external customers based on geographical areas is as follows:
2017 2016
(Percentage)
Geographical area
Asia 99.11% 97.84%
Africa 0.89% 2.16%
100.00% 100.00%
All assets of the Group as at 30 June 2017 are located in Pakistan.
46. FINANCIAL RISK MANAGEMENT
The Group has exposure to the following risks arising from financial instruments:
- credit risk
- liquidity risk
- market risk
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives,
policies and processes for measuring and managing risk, and the Group’s management of capital.
Risk management framework
The Group’s Board of Directors has overall responsibility for establishment and oversight of the Group’s risk
management framework. The Board is responsible for developing and monitoring the Group’s risk management
policies.
The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group,
through its training and management standards and procedures, aims to develop a disciplined and constructive
control environment in which all employees understand their roles and obligations. All derivative activities for
risk management purposes are carried out by specialist teams that have the appropriate skills, experience and
supervision. It is the Group’s policy that no trading in derivatives for speculative purposes shall be undertaken.
The Board of Directors reviews and agrees policies for managing each of these risks.

The Group’s audit committee oversees how management monitors compliance with the Group’s risk management
policies and procedures and reviews the adequacy of the risk management framework in relation to the risks
faced by the Group. Audit committee is assisted in its oversight role by internal audit department. Internal audit
department undertakes both regular and ad hoc reviews of risk management controls and procedures, the
results of which are reported to the audit committee.
46.1 Credit risk and concentration of credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations. To manage credit risk the Group maintains procedures covering the
application for credit approvals, granting and renewal of counterparty limits and monitoring of exposures
against these limits. As part of these processes the financial viability of all counterparties is regularly
monitored and assessed.
46.1.1 Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure
to credit risk as at the end of the reporting period was as follows:
2017 2016
Financial asset at fair value through profit and loss account

Short term investments 77,659 12,000
Loans and receivables
Security deposits 56,474 55,867

Trade debts 681,293 564,866
Long term loans to employees 10,293 9,791
Short term deposits 85,158 69,704
Accrued profit 2,628 1,857
Other receivables 12,516 72,546
Bank balances 442,527 430,033
1,290,889 1,204,664
1,368,548 1,216,664

46.1.2 Concentration of credit risk
The Group identifies concentrations of credit risk by reference to type of counter party. Maximum exposure
to credit risk by type of counterparty is as follows:
2017 2016
Customers 681,293 564,866

Banking companies and financial institutions 527,685 498,615
Others 159,570 153,183
1,368,548 1,216,664
46.1.3 Credit quality and impairment
Credit quality of financial assets is assessed by reference to external credit ratings, where available, or to
historical information about counterparty default rates. All counterparties, with the exception of customers,
have external credit ratings determined by various credit rating agencies. Credit quality of customers is
assessed by reference to historical defaults rates and present ages.
46.1.3(a) Counterparties with external credit ratings
These include banking companies and financial institutions. These counterparties have reasonably high
credit ratings as determined by various credit rating agencies. Due to long standing business relationships
with these counterparties and considering their strong financial standing, management does not expect
non-performance by these counterparties on their obligations to the Group. Following are the credit ratings
of counterparties with external credit ratings:

Rating 2017 2016
Short term Long term Agency (Rupees in thousand)
Bank balances
Allied Bank Limited A1+ AA+ PACRA 84 64,120

Askari Bank Limited A1+ AA+ PACRA 7,498 35,251
Bank Al-Habib Limited A1+ AA+ PACRA 80,955 55,081
Bank Alfalah A1+ AA PACRA 6,578 14,870
Bank Islami Pakistan Limited A1+ A+ PACRA 124,238 100,495
Bank of Punjab A1+ AA- PACRA 963 14,907
Burj Bank Limited A-2 BBB+ JCR-vIS 9 741
Dubai Islamic Bank Pakistan Limited A-1 A+ JCR-vIS 741 9
Faysal Bank Limited A1+ AA PACRA 758 369
Habib Bank Limited A-1+ AAA JCR-vIS 11,378 1,435
KASB Bank Limited - - - - 5
Meezan Bank Limited A-1+ AA JCR-vIS 672 663
MCB Bank Limited A1+ AAA PACRA 78,817 62,544
National Bank of Pakistan A1+ AAA PACRA 22,823 30,845
Silk Bank Limited A-2 A- JCR-vIS 10 9
Summit Bank Limited A-1 A- JCR-vIS 25 25
United Bank Limited A-1+ AAA JCR-vIS 7,577 2,924
U Micro finance Bank Limited A-2 A- JCR-vIS 899 900
Total 442,527 430,033
Margin against bank guarantees

United Bank Limited A-1+ AAA JCR-vIS 31,214 31,214
Summit Bank Limited A-1 A- JCR-vIS 12,792 12,792
Trust Investment Bank - - - 5,344 5,344
59,229 59,229
Margin against letters of credit
Soneri Bank Limited A1+ AA- PACRA - -

15,930 9,353

46.1.3(b) Counterparties without external credit ratings
These include customers which are counter parties to local and foreign trade debts against sale of cement.
Out of gross trade debts of Rs. 681.29 million (2016: Rs. 564.87 million), trade debts that are subject to
credit risk amount to Rs. 646.44 million (2016: Rs. 517.20 million). The analysis of ages of trade debts of the
Group as at the reporting date is as follows:
2017 2016
Gross Impairment Gross Impairment
------------------- (Rupees in thousand) -------------------
The aging of trade debts at the reporting date is:
Not past due 222,788 - 268,857 -

Past due 1 to 30 days 278,542 - 179,657 -
Past due 30 to 150 days 70,297 - 18,965 -
Past due 150 days 109,666 - 97,387 -
681,293 - 564,866 -
Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and
controls relating to customer credit risk management. Credit limits are established for all customers based on
internal rating criteria. Credit quality of the customer is assessed based on an extensive credit rating. Outstanding
customer receivables are regularly monitored and shipments to the customers are generally covered by letters of
credit or other form of credit insurance.
46.2 Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial assets, or that such obligations will have to be
settled in a manner unfavorable to the Group. Management closely monitors the Group’s liquidity and cash flow
position. This includes maintenance of balance sheet liquidity ratios, debtors and creditors concentration both in
terms of the overall funding mix and avoidance of undue reliance on large individual customers.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an
appropriate liquidity risk management framework for the management of the Group’s short, medium and long-
term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash
flows and matching the maturity profiles of financial assets and liabilities. Included in note 16.1 and 16.2 to these
consolidated financial statements is a listing of additional undrawn facilities that the Group has at its disposal to
further reduce liquidity risk.

46.2.1 Exposure to liquidity risk
46.2.1(a) Contractual maturities of financial liabilities, including estimated interest payments
The following are the remaining contractual maturities at the reporting date. The amounts are grossed and
undiscounted, and include estimated interest payments and exchange rates and exclude the impact of
netting agreements.
2017

Long term loans from banking companies 3,103,760 3,623,846 473,133 2,879,224 271,489
8,671,170 9,195,615 5,739,425 3,384,002 271,489
2016

Long term loans from banking companies 927,298 1,296,963 69,060 892,426 335,477
4,509,220 4,916,398 3,185,917 1,395,004 335,477

46.3 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimizing return.
46.3.1 Currency risk
The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which
advances, sales and purchases and bank balances are denominated and the respective functional currency of
the Group. The functional currency of the Group is Pak Rupee. The currencies in which these transactions are
primarily denominated are Euros and US dollars.
46.3.1(a) Exposure to currency risk
The summary quantitative data about the Group’s exposure to currency risk as reported to the management
of the Group is as follows. The figures represent foreign currency balances after conversion in Pak Rupees
using exchange rates prevailing at the balance sheet date.
2017
--------------------------- in thousand ---------------------------
Assets
Trade debts - - - 333 - 34,849
Cash and bank 2 - - 25 - 2,874
2 - - 358 - 37,723
Liabilities
Liabilities against assets
subject to finance lease - - - (4,577) - (480,615)
Creditors and bills payables - - 23 - - 2,753
2 - 23 (4,577) - (477,862)
Net balance sheet exposure 2 - 23 (4,219) - (440,139)
Outstanding letters of credit - - 82,117 5,735 10,486 10,458,620
Net exposure 2 - 82,140 1,516 10,486 10,018,481
2016
--------------------------- in thousand ---------------------------
Assets
Trade debts - - - 449 - 46,947
Cash and bank 2 - - 33 - 3,680
2 - - 482 - 50,627
Liabilities
Liabilities against assets subject
to finance lease - - - (6,177) - (646,762)
Creditors and bills payables - - (23) - - (2,670)
2 - (23) (6,177) - (649,432)
Net balance sheet exposure 2 - (23) (5,695) - (598,805)
Outstanding letters of credit - 55 5,547 5,283 - 1,204,256
Net exposure 2 55 5,524 (412) - 605,451

46.3.1(b) Exchange rates applied during the year
The following significant exchange rates have been applied during the year:
2017
CHF 109.75 109.54 105.83

EURO 120.14 119.91 114.37
USD 104.80 105.00 104.75
YEN 0.94 0.94 0.96
GBP 136.42 136.68 133.05
2016
CHF 116.64 106.85 97.88

EURO 116.08 116.31 115.61
USD 104.50 104.70 104.50
YEN 1.02 1.02 0.90
GBP 140.12 140.39 152.24
46.3.1(c) Sensitivity analysis
A reasonably possible strengthening / (weakening) of 10% in Pak Rupee against the following currencies
would have affected the measurement of financial instruments denominated in foreign currency and affected
profit and loss by the amounts shown below at the balance sheet. The analysis assumes that all other
variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
Profit
2017 2016
EURO 276 (268)

USD (44,300) (59,627)
YEN - -
CHF - -
GBP 27 28
(43,997) (59,867)

46.3.1(d) Currency risk management
Since the maximum amount exposed to currency risk is only 2.81% (2016: 1.86%) of the Company’s net
assets, any adverse / favorable movement in functional currency with respect to US dollar and Euro will not
have any material impact on the operational results.
46.3.2 Interest rate risk
Interest rate risk is the risk that fair values or future cash flows of a financial instrument will fluctuate because
of changes in interest rates. Sensitivity to interest rate risk arises from mismatch of financial assets and
financial liabilities that mature or re-price in a given period.
46.3.2(a) Fixed rate financial instruments
The effective interest / mark-up rates for interest / mark-up bearing financial instruments are mentioned in
relevant notes to the consolidated financial statements. The Group’s interest / mark-up bearing financial
instruments as at the reporting date are as follows:
2017 2016
Short term borrowings 16 - 2,820,233 - 1,398,000

Bank balances at PLS accounts 31 224,984 - 191,624 -
224,984 2,820,233 191,624 1,398,000
notes to the consolidated financial statements.
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit and
loss account. Therefore, a change in profit / mark-up / interest rates at the reporting date would not affect
profit and loss account.

46.3.2(b) variable rate financial instruments
2017 2016
Long term loans 8 - 3,103,760 - 927,298

Liabilities against assets subject to finance lease 9 - 480,615 - 646,762
Short term borrowings 16 - 255,890 - 9,707
- 3,840,265 - 1,583,767
notes to the consolidated financial statements.
Cash flow sensitivity analysis for variable rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would have (decreased)
/ increased profit by amounts shown below. The analysis assumes that all other variables, in particular foreign
exchange rates, remain constant. The analysis is performed on the same basis for the year 2016.
Profit
2017 2016
Increase of 100 basis points
variable rate instruments (38,403) (15,838)
Decrease of 100 basis points
variable rate instruments 38,403 15,838
The sensitivity analysis prepared is not necessarily indicative of the effects on profit for the year and the
outstanding liabilities of the Group at the year end.
46.3.2(c) Interest rate risk management
The Group manages these mismatches through risk management strategies where significant changes in
gap position can be adjusted. The Group’s significant borrowings are based on variable rate pricing that is
mostly dependent on Karachi Inter Bank Offer Rate (“KIBOR”) as indicated in respective notes.

46.3.3 Price risk
Price risk represents the risk that the fair value or future cash flows of financial instrument will fluctuate
because of changes in market prices, other than those arising from interest rate risk or currency risk, whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors
affecting all similar financial instruments trading in market.
46.3.3(a) Investments exposed to price risk
At the balance sheet date, the Group’s investment in quoted equity securities and investments in money
market mutual funds is as follows:
2017 2016
Investment in equity securities 77,659 12,000
46.3.3(b) Sensitivity analysis
A 10.00% increase / (decrease) share prices at year end would have increased / (decreased) the Group’s fair
value gain on investment as follows:
Equity
2017 2016
Short term investment at fair value through profit and loss account
Effect of increase 7,766 1,200

Effect of decrease (7,766) (1,200)
46.3.3(c) Price risk management
The Group manages price risk by monitoring exposure in quoted equity securities and implementing the
strict discipline in internal risk management and investment policies. The carrying value of investments
subject to equity price risk are based on quoted market prices as at reporting date. Market prices are
subject to fluctuation and consequently the amount realized in the subsequent sale of an investment may
significantly differ from reported market value. Fluctuations in the market price of a security may result from
perceived changes in the underlying economic characteristics of the investee, the relative price of alternative
investments and general market conditions. Furthermore, amount realized in the sale of a particular security
may be affected by the relative quantity of the security being sold.

46.4 Fair value of financial instruments
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Underlying the definition of fair value is the presumption that the Group is a going concern without any intention
or requirement to curtail materially the scale of its operations or to undertake a transaction on adverse terms.
The fair value of financial assets and liabilities traded in active markets i.e. listed equity shares are based on the
quoted market prices at the close of trading on the period end date. The quoted market prices used for financial
assets held by the Group is current bid price.
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s length basis.
IFRS 13, ‘Fair value Measurements’ requires the Group to classify fair value measurements using a fair value
hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy
has the following levels:
- Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at
the measurement date (level 1).
- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly or indirectly (level 2).
- Unobservable inputs for the asset or liability (level 3).

46.5 Financial instruments-fair values
Carrying Amount Fair value

Fair value
through Loans Other
30 June 2017
77,659 - - 77,659 77,659 - -

Accrued profit - 2,628 - 2,628 - - -
46.6 - 1,297,844 - 1,297,844 - - -
- - - - - - -
Long term finances - - 2,890,226 2,890,226 - - -

Accrued mark up - - 101,465 101,465 - - -
46.6 - - 8,457,636 8,457,636 - - -

Financial instruments-fair values
Carrying Amount Fair value

Fair value
through Loans Other
30 June 2016
12,000 - - 12,000 12,000 - -
Accrued profit - 1,857 - 1,857 - - -
46.6 - 1,216,359 - 1,216,359 - - -

- - - - - - -
Long term finances - - 927,298 927,298 - - -
Accrued mark up - - 36,807 36,807 - - -
46.6 - - 4,509,220 4,509,220 - - -

46.6 The Group has not disclosed the fair values of these financial assets and liabilities as these are for short term
or reprice over short term. Therefore, their carrying amounts are reasonable approximation of fair value.
Freehold land, buildings on freehold land, roads, bridges and railway sidings, plant and machinery have
been carried at revalued amounts determined by professional valuers (level 3 measurement) based on their
assessment of the market values as disclosed in note 7.1. The valuations are conducted by the valuation
experts appointed by the Group. The valuation experts used a market based approach to arrive at the fair
value of the Group’s properties. For revaluation of freehold land fair market value was assessed through
inquiries to real estate agents and property dealers in near vicinity of freehold land. Different valuation
methods and exercises were adopted according to experience, location and other usage of freehold land.
valuer had also considered all relevant factors as well. In case of buildings on freehold land, roads, bridges
and railway sidings, construction specifications were noted for each building and structure and new
construction rates are applied according to construction specifications for current replacement values. After
determining current replacement values, depreciation was calculated to determine the current assessed
market value. For revaluation of plant and machinery, suppliers and different cement plant consultants in
Pakistan and abroad were contacted to collect information regarding current prices of comparable cement
plant to determine current replacement value. Fair depreciation factor for each item is applied according to
their physical condition, usage and maintenance. The effect of changes in the unobservable inputs used
in the valuations cannot be determined with certainty, accordingly a qualitative disclosure of sensitivity has
not been presented in these consolidated financial statements.
47. CAPITAL MANAGEMENT
The Board’s policy is to maintain an efficient capital base so as to maintain investor, creditor and market
confidence and to sustain the future development of its business. The Board of Directors monitors the return on
capital employed, which the Group defines as operating income divided by total capital employed. The Board of
Directors also monitors the level of dividends to ordinary shareholders.
The Group’s objectives when managing capital are:
i. to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns
for shareholders and benefits for other stakeholders; and
ii. to provide an adequate return to shareholders.
The Group manages the capital structure in the context of economic conditions and the risk characteristics of
the underlying assets. In order to maintain or adjust the capital structure, the Group may, for example, adjust the
amount of dividends paid to shareholders, issue new shares, or sell assets to reduce debt.
Unit 2017 2016
Total debt Rupees in ‘000 6,722,534 2,998,971

Less: Cash and bank balances 449,482 441,728
Net debt 6,273,052 2,557,243
Total Equity Rupees in ‘000 19,341,597 16,708,094
Total capital employed Rupees in ‘000 25,614,649 19,265,337
Gearing Percentage 24.49% 13.27%

Total debt comprises of long term loans from banking companies, redeemable capital, syndicated term finances,
liabilities against assets subject to finance lease and short term borrowings.
There were no changes in the Group’s approach to capital management during the year. The Group is not subject
to externally imposed capital requirements.
48. PROvIDENT FUND TRUST
The following information is based on the latest un-audited financial statements of the Provident Fund Trust:
Un-audited Audited
2017 2016
Size of the fund - total assets 616,561 502,058
Cost of investments made 448,971 467,708
Percentage of investments made 78.96% 97.70%
Fair value of investments 486,850 490,489
The break-up of fair value of investments is:
2017 2016
Rs. in thousand Percentage Rs. in thousand Percentage
Shares in quoted securities 52,544 10.79% 84,710 17.27%

Bank balances 84,000 17.25% 9,495 1.94%
Term deposit receipts 244,003 50.12% 130,000 26.50%
Government securities 106,303 21.84% 212,919 43.41%
Mutual funds - 0.00% 53,365 10.88%
486,850 100.00% 490,489 100.00%
The investments out of Provident Fund Trust have been made in accordance with the provisions of section 227
of the Companies Ordinance, 1984 and the rules formulated for this purpose.

49. NUMBER OF EMPLOYEES
The total and average number of employees of the Company during the year and as at 30 June 2017 and 2016
respectively are as follows:
2017 2016
Average number of employees during the year 1,266 1,122

Total number of employees as at 30 June 1,330 1,180
50. NON ADJUSTING EvENTS AFTER THE BALANCE SHEET DATE
The Board of Directors of the Group in its meeting held on September 13, 2017 has proposed a final cash
dividend of Rs. 1.75 per share, for the year ended 30 June 2017, for approval of the members in the Annual
General Meeting to be held on October 26, 2017 at 11:00 am.
51. DATE OF AUTHORIZATION FOR ISSUE
These consolidated financial statements were authorized for issue by the Board of Directors of the Group in their
meeting held on September 13, 2017.
52. GENERAL
Figures in the consolidated financial statements have been rounded-off to the nearest thousand Rupees except
stated otherwise.

MAPLE LEAF CEMENT FACTORY LIMITED
42-LAWRENCE ROAD, LAHORE
PROxY FORM
I/We__________________________________________________________________________________________
of _____________________________________________________________________________________________________
being a member of MAPLE LEAF CEMENT FACTORY LIMITED hereby appoint _________________________________
__________________________________________________________________________________________________
(Name)
of ________________________________________________________________________another member of the Company
or failing him/her ______________________________________________________________________________________
(Name)
of ________________________________________________________________________another member of the Company
as my/our proxy to attend, speak and vote for and on my/our behalf, at the 57th Annual General Meeting of the
Company to be held at its Registered Office, 42-Lawrence Road, Lahore on Thursday, October 26, 2017 at 11:00 AM
and any adjournment thereof.
As witnessed given under my/our hand(s) _________________ day of October 2017.
1. Witness: 2. Witness:
Signature : _______________________ Signature : _______________________
Affix
Name : _______________________ Name : _______________________ Revenue
Stamp of Rs. 5/-
CNIC : _______________________ CNIC : _______________________
Address : _______________________ Address : _______________________
: _______________________ : _______________________
____________________________
Signature of Member / Attorney
Notes:
1. Proxies, in order to be effective, must be received at
the Company’s Registered Office not later than 48 Shares Held: ____________________________
hours before the time for holding the meeting and
must be duly stamped, signed and witnessed. Folio No. CDC Account No.
Participant Account
2. CDC Shareholders, entitled to attend, speak and vote at I.D. No.
this meeting, must bring with them their Computerized
National Identity Cards (CNIC) /Passports in original
to prove his/her identity, and in case of Proxy, must
enclose an attested copy of his/her CNIC or Passport.
CNIC No.
3. In case of corporate entity, the Board of Directors’
resolution / power of attorney with specimen signature
of the nominee should be attached with the proxy
form.
AFFIX
CORRECT
POSTAGE
The Company Secretary

Tel: 042-36278904-05
AFFIX
CORRECT
POSTAGE
The Company Secretary

Tel: 042-36278904-05




Maple Leaf Cement Factory

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Annual Report 2017

Annual Report 2017 1

8% -2% 16% 10%

2 Maple Leaf Cement

Regional Sales Office, Rawalpindi

Regional Sales Office, Faisalabad

Regional Sales Office, Multan

Annual Report 2017 3

4 Maple Leaf Cement

Annual Report 2017 5

6 Maple Leaf Cement

Annual Report 2017 7

8 Maple Leaf Cement

Annual Report 2017 9

10 Maple Leaf Cement

12 Maple Leaf Cement

Annual Report 2017 13

CODE OF BUSINESS CONDUCT AND

14 Maple Leaf Cement

Maple Leaf Cement Factory Limited

Annual Report 2017 15

e) Fiscal Development – Despite Government’s effective i) Ordinary Portland Cement

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1. Improved capacity utilization of the Company’s production facilities.

Annual Report 2017 17

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NOTICE OF ANNUAL GENERAL MEETING

ORDINARY BUSINESS: “Resolved by way of special resolution that consent

4) To consider and, if deemed fit, pass the following

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4. Pursuant to requirement of Section 242 of the “I/We,___________________________________

Annual Report 2017 21

e. As per clarification of FBR, each joint holder is to be

Folio / CDC Total Principal Shareholder Joint Shareholder(s) Signature(s)

Name & Shareholding Name & Shareholding

22 Maple Leaf Cement

Investment in Kohinoor Textile Mills Limited

Annual Report 2017 23

Ref. Requirement Information

(i) Name of the associated company or Kohinoor Textile Mills Limited

Period: For a period of one year from November

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(ix) Where loans or advances are being

Annual Report 2017 25

Ref. Requirement Information

(xi) If the loans or advances carry conversion

Salient features of agreements entered Nature : Loan / advance

26 Maple Leaf Cement

(xv) the members to understand the transaction. N/A

Name %age of shareholding %age of shareholding

Mr. Tariq Sayeed Saigol & his spouse.................................... 14.3755 ....................................0.0193

Name of Investee Company Kohinoor Textile Mills Limited

Amount of Investment Made to date: NIL.

Annual Report 2017 27

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(Tariq Sayeed Saigol)

Annual Report 2017 31

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Annual Report 2017 33

July to June Variance

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Annual Report 2017 35

Profit after tax distribution is as under: