“ENGINEERING ECONOMICS BH-323”

“PROJECT REPORT”

“FINANCIAL STATEMENT OF
BESTWAY CENENT LIMITED (BWCL)”

Submitted To:-
Engg. Awais Islam
Submitted By:-
Asif Nazeer (15-ENC-30)
Muhammad Ismail (15-ENC-40)
Sufyan Rasool (15-ENC-14)
Ubaid-ur-Rehman (15-ENC-12)
Date of Submission:-
10-July-2018 (Tuesday)

Department of Electronics Engineering

University of Engineering and Technology
Taxila

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 Letter of Transmittal

Dated: 10-07-2018
Engg. Awais Islam, (Lecturer),
Department of Electronics Engineering,
University of Engineering and Technology, Taxila.

Respected Sir,

It is stated that we are students of 6th semester in Electronics Engineering, As a Semester Project
we are submitting the report of project entitled “Financial Statement”. This report will cover the
basics and detailed information of Bestway Cement Limited Financial Statement.
The detailed Balance Sheet along with income statement, statement of retained earnings are
attached with the report.

Yours Obediently,
Muhammad Ismail (15-ENC-40),
Asif Nazeer (15-ENC-30),
Sufyan Rasool (15-ENC-14),
Ubaid-ur-Rehman (15-ENC-12).

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 Table of Contents
Introduction ..................................................................................................................................... 4
Organization that we choose? ......................................................................................................... 4
Visit to BESTWAY ........................................................................................................................ 4
THE BESTWAY CEMENT LIMITED INFO ............................................................................... 4
STOCK RATES .............................................................................................................................. 4
PLANT SITES ................................................................................................................................ 5
 Hattar ..................................................................................................................... 5
 Farooqia ................................................................................................................. 5
 Chakwal ................................................................................................................. 5
 Kalar Kahar ........................................................................................................... 6
Products of BESTWAY CEMNT LIMITED ................................................................................. 6
 Domestic product .................................................................................................... 6
 Export Products....................................................................................................... 7
BESTWAY CEMENT LIMITED financial statement ................................................................... 7
 Balance sheet ......................................................................................................... 7
 Income statement ................................................................................................. 10
 Cash Flows .......................................................................................................... 10
 Statement of retained Earnings............................................................................ 13
Summery ........................................................................................................................................14
References ..................................................................................................................................... 15

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Introduction:-

The task assigned to us was to visit any organization to check out its financial statements that how
company works with its financial matters, how company deals with the investors, how they deal
with their customers and finally their labors, engineers and supervisors. Simply the flow of cash
within the company or outside the company, by the company or for the company if it is related to
the company we have to check it out how it happens.

ORGANIZATION THAT WE CHOOSE?

For this purpose we decided to visit “BESTWAY CEMENT LIMITED”. BESTWAY Group
valiantly enlists businesses in Pakistan as the largest cement manufacturer – Bestway Cement
Limited, the second largest bank – United Bank Limited and one of the biggest rice milling
facilities – MAP Rice Mills; aside from owning in the United Kingdom, the second largest
Wholesale – Bestway Wholesale, the third largest pharmacy business – Well Pharmacy, real estate
investments, string of retail outlets and, ethnic food and beverage import and distribution.

VIST TO BESTWAY:-
From the above mentioned businesses of BESTWAY we chose BESTWAY CEMENT LIMITED
so for this we visited the FAROOQIA PLANT of BESTWAY CEMENT LIMITED. We visited
the plant and witnessed the production of the plant we check out their machinery but the main
purpose was to collect of their financial statements data. So we discussed it with them they told us
about some main figures like their labors pay their investor investment information but we want
full detailed so they gave us two reports entitled “ANNUAL REPORT 2015-2016” and
“ANNUAL REPORT 2016-2017” reports attached.
These reports covers all their financial data very precisely it include all the basic and detailed
information of their financial matters like “BALANCE SHEET”, “CASH FLOWS”, “INCOME
STATEMENT” etc.

THE BESTWAY CEMENT LIMITED INFO:-

Company Registration Number 0031894
National Tax Number (NTN) 0656656-1
Symbol of Company in PSX BWCL
Free Float 4.68%

STOCK RATES:-
BWCL: PKR 130.00
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Plant Sites:-

 Hattar
 Farooqia
 Chakwal
 Kallar Kahar

 Hattar:-
 Green Field Plant
 Instrumentation: European Origin
 Capacity: 1.27 m TPY
 lab Equipment: Japan/European Origin
 Production Start: April 1998
 Design & Supply: Mitsubishi Japan
 Electrical Control Equipment: Siemens Germany
 Major Mechanical Equipment: Japanese/European Origin
 Electrical Equipment: Siemens Germany/Pakistan Origin

 Farooqia:-
 Plant Acquired: November 2005
 Capacity: 1.12 m TPY
 Design & Supply: KHD Germany/Upgrade by FLS Denmark
 Major Mechanical Equipment: European Origin
 Electrical Equipment: European/Pakistan Origin
 Electrical Control Equipment: Supcon China
 Instrumentation: European Origin
 lab Equipment: Japan/European Origin

 Chakwal:-
 Green Field Plant

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  Production Line I & II: May 2006 & June 2008
 Capacity: 3.6 m TPY
 Design & Supply: CBMC China. Hybrid Equipment Supplied from
Europe/China
 Major Mechanical Equipment: European Origin
 Electrical Equipment: Siemens Germany/Pakistan Origin
 Electrical Control Equipment: Siemens Germany
 Instrumentation: European Origin
 lab Equipment: European Origin

 Kalar kahar:-
 Plant Acquired: April 2015
 Capacity: 2.5 m TPY
 Design & Supply: FLS Denmark
 Major Mechanical Equipment: European Origin
 Electrical Equipment: ABB Sweden
 Electrical Control Equipment: modicon France
 Instrumentation: European Origin
 lab Equipment: European Origin

PRODUCTS OF BESTWAY CEMENT LIMITED:-

They not only provides the need of cement in Pakistan but also export their good to other world
 Domestic products
 Exports products

o DOMESTIC PRODUCTS:-
 Bestway
 PAKCEM
 ECOCEM

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  Sulphate Resistant Cement
 Xtreme Tile Bond
 Xtreme Tile Grout
 DURACEM
 Low Alkali Cement
 Low Heat Cement
 Stallion –Early Settling Cement
o EXPORT PRODUCTS:-
 Bestway
 PAKCEM
 Stallion – High Quality Cement
 Lion Export – Low Chrome CEM I & CEM II

BESTWAY CEMENT LIMITED FINNACIL STATEMENTS:-

Financial statements are written records that convey the financial activities and conditions of a
business or entity and consist of four major components”.
 Balance sheets
 Income statements,
 Statements of retained earnings
 Cash flows

 BALANCE SHEET:-

“Balance sheet is a statement of the assets, liabilities, and capital of a business or other
organization at a particular point in time, detailing the balance of income and
expenditure over the preceding period”.
Total Equity of the company grew to Rs. 47.8 Billion compared to Rs. 41.9 billion for the year
ended 30-June-2017 The Company continued to discharge its repayment obliation on all types
of loans on a timely basis. The company’s term loan as at 30- June-2017 stood at Rs. 10 billion
compared to Rs. 16.5 billion for last year.
Net current assets on 30-June-2017 were maintained at Rs. 2 billion

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 BALANCE
SHEET

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 BALANCE SHEET FOR LAST SIX YEARS

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INCOME STATEMENT:-
“Income statement shows the results of the entity's operations and financial
activities for the reporting period. It includes revenues, expenses, gains, and losses”

PROFIT AND LOSE

CONTROL

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 Notes 2017 2016

(Rupees ‘000) (Rupees ‘000)

Net finance cost 35 830,715 1,822,500

Share of profit of equity, net of tax 36 2,055,638 2,111,835

Profit before tax 18,664,166 17,077,994

Income tax expense 13.1 5,371,526 5,197,577

Profit 13,292,640 11,880,417

Profit attributable to:

Owners of the company 13,292,640 11,853,178

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 Non-controlling interests - 27,239

13,292,640 11,880,417

Earnings per share-base and diluted 37 22.29 20.16

CASH FLOWS:-
The cash flow statement merges the balance sheet and the income statement. Due to accounting
convention, net income can fall out of alignment with cash flow. The cash flow statement
reconciles the income statement with the balance sheet in three major business activities
 Operating include cash flows made from regular business operations.
 Investing include cash flows from the acquisition and disposition of assets.
 Financing include cash flows from debt and equity investment capital..

CASH FLOWS
\

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 Notes 2017 2016
(Rupees ‘000) (Rupees ‘000)

CASH FLOW FROM FINANCIAL ACTIVITIES

Payment of long term financing 3,900,000 7,273,584

Repayment of long term musharaka 2,600,000 3,400,000

Dividends period 6,856,907 6,811,533

Dividends paid to NCI - 42,941

Net cash using financing activities 13,356,907 17,528,058

Net decrease in cash and cash equivalent 2,621,405 2,493,190

Cash and cash equivalents of the year-restated 2,058,121 435,069

Cash and cash equivalents at end of the year 4,697,526 2,058,121

DEFERRED LIABILITIES

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 ALLOCATION OF DEPRECIATION CHARGE

STATEMENTS OF RETAINED EARNING:-

“Includes explanations of various activities, additional detail on some accounts, and other
items as mandated by the applicable accounting framework”.

TRADE DEBTS

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 GROSS TURNOVER

Local 66,204,506 53,421,851

Export 5,236,342 5,121,656

71,440,848 58,543,507

SUMMERY:-
By visiting this industry we know about the financial transactions of a huge industry BESTWAY
CEMENT LIMITED. We also learned the basic terms of Engg Economics used by them for
making financial statements. Along this we also have experienced how to deal with the peoples
when you are in any organization.

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References

[1] BESTWAY CEMENT LIMITED,ISLAMABAD: ANNUAL REPORT, 2016-17.

[2] BESTWAY CEMENT LIMITED, ISLAMABAD: ANNUAL REPORT , 2015-2016.

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