Annual 2015-16 Accounts PDF

Building
on Strength
ANNUAL REPORT 2016
Bestway Building, 19-A, College Road,

F-7 Markaz, Islamabad 44000, Pakistan
Tel: +92 51 265 4856-64, Fax: +92 51 265 4865-66
UAN: +92 51 111 111 722 www.bestway.com.pk
Building
on Strength
Perfection of the CONTENT
Perfectionist
Company Information 04
Vision & Mission 06
Environment Excellence 08
Product Portfolio 10
Notice of Annual General Meeting 12
Directors’ Report to the Shareholders 14
Statement of Compliance of the Code of 20
Corporate Governance
22
Report of the Audit Committee 20
Review Report to the Members on 24
Statement of Compliance with the
Code of Corporate Governance
Auditors’ Report to the Members 25
CSR and Organisational Activities 26
Financial Statements
Balance Sheet 34
Profit and Loss Account 36
Bestway Cement, Pakistan’s largest cement company, prides itself on having the
widest range of best-selling cement products in the country. Today, we remain Statement of Comprehensive Income 37
committed to delivering superior cement solutions perfected to your needs.
Statement of Changes ín Equity 38
Cash Flow Statement 39
Notes to the Financial Statements 40
Key Operating and Financial Data for Six Years 92
Pattern of Shareholding 93
Say no to Corruption 96
Proxy Form 97
www.bestway.com.pk
COMPANY INFORMATION
Board of Directors Chakwal Legal Auditors
Sir Mohammed Anwar Pervez, O.B.E., H.Pk. Chairman Village Tatral, Near PSO Petrol Pump, Syed Hassan Ali Raza, Advocate High Court.
Mr. Zameer Mohammed Choudrey, CBE Chief Executive 22 km Kallar Kahar, Choa Saiden Shah Road,
Mr. Mohammed Younus Sheikh Director Chakwal, Pakistan. Shares Department
Mr. Dawood Pervez Director Tel: +92 (0) 543 584 560 – 62 Technology Trade (Pvt.) Ltd. Dagia House,
Mr. Muhammad Irfan A. Sheikh Director Finance & CFO Fax: +92 (0) 543 584 274 241-C, Block -2, P.E.C.H.S.,
Ms. Najma Naheed Pirzada Director Email: gmworks3@bestway.com.pk Shahrah-e-Quaideen, Karachi.
Tel: +92 (0) 213 439 1316-7 & 19, 213 438 7960-61
Audit Committee Kallar Kahar Fax: +92 (0) 213 439 1318
Mr. Mohammed Younus Sheikh Chairman Choie Mallot Road, Tehsil Kallar Kahar,
Mr. Dawood Pervez Distt. Chakwal, Pakistan. Bankers
Ms. Najma Naheed Pirzada Tel: +92 (0) 51 402 0111 • Allied Bank Limited
Fax: +92 (0) 51 402 0230 • Habib Bank Limited
Human Resource & Remuneration Committee Email: gmworks4@bestway.com.pk • MCB Bank Limited
Mr. Muhammad Irfan A. Sheikh Chairman • United Bank Limited
Mr. Mohammed Younus Sheikh Sales Head Office • Standard Chartered Bank (Pakistan) Limited
Mr. Dawood Pervez House 276, Near Riphah University, • Faysal Bank Limited
Opposite Roomi Park, Peshawar Road, • Askari Bank Limited
Company Secretary Rawalpindi. • Soneri Bank Limited
Ms. Sehar Husain Tel: +92 (0) 51 551 3110, 512 5128 – 9 • Meezan Bank Limited
Fax: +92 (0) 51 551 3109 • Bank Alfalah Limited
Registered / Head Office Email: directorsales@bestway.com.pk • Dubai Islamic Bank Pakistan Limited
Bestway Building, 19-A, College Road, • NIB Bank Limited
F-7 Markaz, Islamabad. Statutory Auditors • Citibank
Tel: +92 (0) 51 265 4856 – 64 KPMG Taseer Hadi & Co. Chartered Accountants. • National Bank of Pakistan
Fax: +92 (0) 51 265 4865
Email: management@bestway.com.pk Cost Auditors
BDO Ebrahim & Co., Chartered Accountants.
Plant Sites
Hattar
Suraj Gali Road, Village Shadi, Hattar, Distt. Haripur,
Khyber Pakhtunkhwa, Pakistan.
Tel: +92 (0) 995 639 261 – 3
Fax: +92 (0) 995 639 265
Email: gmworks1@bestway.com.pk
Farooqia
12 km, Taxila-Haripur Road,
Farooqia, Tehsil & Distt. Haripur,
Tel: +92 (0) 995 639 501 – 3
Fax: +92 (0) 995 639 505
04 Annual Report 2016 Bestway Cement Limited 05

COMPANY INFORMATION
Board of Directors Chakwal Legal Auditors
Sir Mohammed Anwar Pervez, O.B.E., H.Pk. Chairman Village Tatral, Near PSO Petrol Pump, Syed Hassan Ali Raza, Advocate High Court.
Mr. Zameer Mohammed Choudrey, CBE Chief Executive 22 km Kallar Kahar, Choa Saiden Shah Road,
Mr. Mohammed Younus Sheikh Director Chakwal, Pakistan. Shares Department
Mr. Dawood Pervez Director Tel: +92 (0) 543 584 560 – 62 Technology Trade (Pvt.) Ltd. Dagia House,
Mr. Muhammad Irfan A. Sheikh Director Finance & CFO Fax: +92 (0) 543 584 274 241-C, Block -2, P.E.C.H.S.,
Ms. Najma Naheed Pirzada Director Email: gmworks3@bestway.com.pk Shahrah-e-Quaideen, Karachi.
Tel: +92 (0) 213 439 1316-7 & 19, 213 438 7960-61
Audit Committee Kallar Kahar Fax: +92 (0) 213 439 1318
Mr. Mohammed Younus Sheikh Chairman Choie Mallot Road, Tehsil Kallar Kahar,
Mr. Dawood Pervez Distt. Chakwal, Pakistan. Bankers
Ms. Najma Naheed Pirzada Tel: +92 (0) 51 402 0111 • Allied Bank Limited
Fax: +92 (0) 51 402 0230 • Habib Bank Limited
Human Resource & Remuneration Committee Email: gmworks4@bestway.com.pk • MCB Bank Limited
Mr. Muhammad Irfan A. Sheikh Chairman • United Bank Limited
Mr. Mohammed Younus Sheikh Sales Head Office • Standard Chartered Bank (Pakistan) Limited
Mr. Dawood Pervez House 276, Near Riphah University, • Faysal Bank Limited
Opposite Roomi Park, Peshawar Road, • Askari Bank Limited
Company Secretary Rawalpindi. • Soneri Bank Limited
Ms. Sehar Husain Tel: +92 (0) 51 551 3110, 512 5128 – 9 • Meezan Bank Limited
Fax: +92 (0) 51 551 3109 • Bank Alfalah Limited
Registered / Head Office Email: directorsales@bestway.com.pk • Dubai Islamic Bank Pakistan Limited
Bestway Building, 19-A, College Road, • NIB Bank Limited
F-7 Markaz, Islamabad. Statutory Auditors • Citibank
Tel: +92 (0) 51 265 4856 – 64 KPMG Taseer Hadi & Co. Chartered Accountants. • National Bank of Pakistan
Fax: +92 (0) 51 265 4865
Email: management@bestway.com.pk Cost Auditors
BDO Ebrahim & Co., Chartered Accountants.
Plant Sites
Hattar
Suraj Gali Road, Village Shadi, Hattar, Distt. Haripur,
Tel: +92 (0) 995 639 261 – 3
Fax: +92 (0) 995 639 265
Farooqia
12 km, Taxila-Haripur Road,
Farooqia, Tehsil & Distt. Haripur,
Tel: +92 (0) 995 639 501 – 3
Fax: +92 (0) 995 639 505

VISION MISSION
To produce high quality cement at the lowest cost. Our mission is to:
• Consistently produce high quality cement.

• Endeavor to be the lowest cost producer.
• Achieve 25% of the market share of the North Zone in the short term and ultimately 30%
in the longer term.
• Consistently maintain a high standard of customer service.
• Continue to invest in human resource through training, development and promotions from
within whenever possible in order to meet future expansion needs.
• Continue to set aside adequate funds from net profits for fulfilling its various social
responsibilities particularly in the field of education and health.

VISION MISSION
To produce high quality cement at the lowest cost. Our mission is to:
• Consistently produce high quality cement.

• Endeavor to be the lowest cost producer.
• Achieve 25% of the market share of the North Zone in the short term and ultimately 30%
in the longer term.
• Consistently maintain a high standard of customer service.
• Continue to invest in human resource through training, development and promotions from
within whenever possible in order to meet future expansion needs.
• Continue to set aside adequate funds from net profits for fulfilling its various social
responsibilities particularly in the field of education and health.

ENVIRONMENT
EXCELLENCE

ENVIRONMENT
EXCELLENCE

BESTWAY PAKISTAN
PRODUCT PORTFOLIO
DOMESTIC EXPORT
BESTWAY PAKISTAN
PRODUCT PORTFOLIO
DOMESTIC EXPORT
NOTICE OF NOTES
1. The share transfer books of the Company will remain closed from 03-12-2016 to 09-12-2016 (both days inclusive). No
ANNUAL GENERAL MEETING transfer will be accepted for registration during this period. Transfers received in order at Technology Trade (Pvt.) Ltd,
Dagia House, 241-C, Block-2, P.E.C.H.S., Off: Shahrah-e-Quaideen, Karachi upto the close of business on 02-12-2016
will be treated in time to attend the Annual General Meeting.
Notice is hereby given that the 23rd Annual General Meeting of Bestway Cement Limited (the Company) will be held at
Bestway Building, 19-A, College Road, F-7 Markaz, Islamabad at 3:00 p.m. on Friday, December 9, 2016 to transact the 2. Any member who seeks to contest the election to the office of directors should file a notice of his intention to offer
following business: himself for election as a Director alongwith written consent with the Company, not later than 14 days before the date
of the meeting at which elections are to be held. The consent should accompany the relevant declarations as
ORDINARY BUSINESS required under the “Code of Corporate Governance”.
1. To confirm the minutes of Extraordinary General Meeting held on July 26, 2016. 3. A member entitled to attend and vote at this meeting may appoint another member as his/her proxy to attend the
meeting and vote instead of him/her. Proxies in order to be effective must be received by the Company not later than
2. To receive, consider and adopt the audited accounts for the year ended June 30, 2016 together with the Directors’ 48 hours before the meeting.
and Auditors’ Reports thereon.
4. If a member appoints more than one proxy and more than one instrument of proxy is deposited by a member with
3. To approve and declare final cash dividend of 25% in addition to 75% interim dividends already paid, as the Company, all such instruments shall be rendered invalid.
recommended by the Board of Directors.
For CDC Account Holders/Corporate Entities:
4. To appoint auditors of the Company and fix their remuneration for the year ending June 30, 2017. The present
auditors M/s KPMG Taseer Hadi & Co. retire and being eligible, offer themselves for reappointment. In addition to the above the following requirements have to be met:
5. To elect seven directors in accordance with the provisions of the Companies Ordinance, 2016 for a term of three 5. The proxy form shall be witnessed by two persons whose names, addresses and NIC numbers shall be mentioned on
years. One of the directors has resigned from the Board as of November 14, 2016 whereas the names of the six the form.
retiring directors are given below:
6. Attested copies of NIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.
i. Sir Mohammed Anwar Pervez iv. Mr. Dawood Pervez
ii. Mr. Zameer Mohammed Choudrey v. Mr. Mohammed Younus Sheikh 7. The proxy shall produce his original NIC or original passport at the time of meeting.
iii. Muhammad Irfan Anwar Sheikh vi. Ms. Najma Naheed Pirzada
8. In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature shall be
SPECIAL BUSINESS submitted (unless it has been provided earlier) along with proxy form to the Company.
6. To consider, and if thought fit, to pass the following resolution as Special Resolution 9. Shareholders are informed that w.e.f. July 01, 2015 rate of withholding tax has been increased to 17.5% in respect of
non filers and 12.5% for filers of the income tax returns. The shareholders are advised to e-file their returns as the
“RESOLVED that the Company be and is hereby authorized to circulate the annual balance sheet and profit and Department places the names of the e-filers on their website and to provide their NTN to the Shares Registrars of the
loss account, auditors’ report, directors’ report, notice of Annual General Meeting etc., (annual audited accounts) Company for availing the benefit of lower withholding rate.
to its members through CD/DVD/USB instead of hardcopy at their registered addresses.”
10. Members are requested to provide copies of their valid CNICs, mandatory for dispatch of dividend warrants and also
7. Any other business with the permission of the chair. promptly notify any changes in their addresses.
Statement as required by section 134(3) of the Companies Ordinance, 2016 in respect of the Special Business to be
considered at the Annual General Meeting of the Company:
By Order of the Board
To give effect to the notification S.R.O 470(I)2016 dated May 31, 2016 of the Securities and Exchange Commission of
November 18, 2016 Sehar Husain Pakistan (“SECP”), shareholder’s approval is being sought to allow the Company to circulate its Annual Audited Accounts
Islamabad Company Secretary through CD/DVD/USB to all members. The Company however, shall place on its website a standard request form to enable
those members requiring a hardcopy of the Annual Audited Accounts instead of through CD/DVD/USB, to intimate the
Company of their requirement.
The Directors of the Company have no interest in the Special Business except in their capacity as shareholders and
Directors of the Company.

NOTICE OF NOTES
1. The share transfer books of the Company will remain closed from 03-12-2016 to 09-12-2016 (both days inclusive). No
ANNUAL GENERAL MEETING transfer will be accepted for registration during this period. Transfers received in order at Technology Trade (Pvt.) Ltd,
Dagia House, 241-C, Block-2, P.E.C.H.S., Off: Shahrah-e-Quaideen, Karachi upto the close of business on 02-12-2016
will be treated in time to attend the Annual General Meeting.
Notice is hereby given that the 23rd Annual General Meeting of Bestway Cement Limited (the Company) will be held at
Bestway Building, 19-A, College Road, F-7 Markaz, Islamabad at 3:00 p.m. on Friday, December 9, 2016 to transact the 2. Any member who seeks to contest the election to the office of directors should file a notice of his intention to offer
following business: himself for election as a Director alongwith written consent with the Company, not later than 14 days before the date
of the meeting at which elections are to be held. The consent should accompany the relevant declarations as
ORDINARY BUSINESS required under the “Code of Corporate Governance”.
1. To confirm the minutes of Extraordinary General Meeting held on July 26, 2016. 3. A member entitled to attend and vote at this meeting may appoint another member as his/her proxy to attend the
meeting and vote instead of him/her. Proxies in order to be effective must be received by the Company not later than
2. To receive, consider and adopt the audited accounts for the year ended June 30, 2016 together with the Directors’ 48 hours before the meeting.
and Auditors’ Reports thereon.
4. If a member appoints more than one proxy and more than one instrument of proxy is deposited by a member with
3. To approve and declare final cash dividend of 25% in addition to 75% interim dividends already paid, as the Company, all such instruments shall be rendered invalid.
recommended by the Board of Directors.
For CDC Account Holders/Corporate Entities:
4. To appoint auditors of the Company and fix their remuneration for the year ending June 30, 2017. The present
auditors M/s KPMG Taseer Hadi & Co. retire and being eligible, offer themselves for reappointment. In addition to the above the following requirements have to be met:
5. To elect seven directors in accordance with the provisions of the Companies Ordinance, 2016 for a term of three 5. The proxy form shall be witnessed by two persons whose names, addresses and NIC numbers shall be mentioned on
years. One of the directors has resigned from the Board as of November 14, 2016 whereas the names of the six the form.
retiring directors are given below:
6. Attested copies of NIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.
i. Sir Mohammed Anwar Pervez iv. Mr. Dawood Pervez
ii. Mr. Zameer Mohammed Choudrey v. Mr. Mohammed Younus Sheikh 7. The proxy shall produce his original NIC or original passport at the time of meeting.
iii. Muhammad Irfan Anwar Sheikh vi. Ms. Najma Naheed Pirzada
8. In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature shall be
SPECIAL BUSINESS submitted (unless it has been provided earlier) along with proxy form to the Company.
6. To consider, and if thought fit, to pass the following resolution as Special Resolution 9. Shareholders are informed that w.e.f. July 01, 2015 rate of withholding tax has been increased to 17.5% in respect of
non filers and 12.5% for filers of the income tax returns. The shareholders are advised to e-file their returns as the
“RESOLVED that the Company be and is hereby authorized to circulate the annual balance sheet and profit and Department places the names of the e-filers on their website and to provide their NTN to the Shares Registrars of the
loss account, auditors’ report, directors’ report, notice of Annual General Meeting etc., (annual audited accounts) Company for availing the benefit of lower withholding rate.
to its members through CD/DVD/USB instead of hardcopy at their registered addresses.”
10. Members are requested to provide copies of their valid CNICs, mandatory for dispatch of dividend warrants and also
7. Any other business with the permission of the chair. promptly notify any changes in their addresses.
Statement as required by section 134(3) of the Companies Ordinance, 2016 in respect of the Special Business to be
considered at the Annual General Meeting of the Company:
By Order of the Board
To give effect to the notification S.R.O 470(I)2016 dated May 31, 2016 of the Securities and Exchange Commission of
November 18, 2016 Sehar Husain Pakistan (“SECP”), shareholder’s approval is being sought to allow the Company to circulate its Annual Audited Accounts
Islamabad Company Secretary through CD/DVD/USB to all members. The Company however, shall place on its website a standard request form to enable
those members requiring a hardcopy of the Annual Audited Accounts instead of through CD/DVD/USB, to intimate the
Company of their requirement.
The Directors of the Company have no interest in the Special Business except in their capacity as shareholders and
Directors of the Company.

DIRECTORS’ REPORT TO THE Cement market remained fiercely competitive during 2015-16. However, your Company persevered in maintaining its
position as the largest cement producer and the market leader in the country. Despite competition in international
markets, Bestway continued to be one of the largest exporters of cement to Afghanistan and India.
SHAREHOLDERS Operating Highlights

The Company recorded sales of Rs. 58.5 billion compared to Rs. 41.5 billion during the preceding year which is an increase
of 41%. Net turnover amounted to Rs. 45.7 billion compared to Rs. 32.7 billion for the preceding year. This increase is
The Board of Directors take pleasure in presenting their report together with the Company’s Financial Statements for the mainly due to the additional capacity of Kallar Kahar plant and excellent growth in domestic demand.
year ended 30 June 2016 and the Auditors’ Report thereon.
On a standalone basis, Bestway recorded sales of Rs. 43.3 billion compared to Rs. 38.7 billion during the preceding year,
Overview of the Economy which is an increase of 11.9%.
The country’s GDP growth improved slightly to 4.7% for the fiscal year ended 30 June 2016 as compared to 4.2% for the
year before. Inflation stood at 2.8% as against 4.5% of last year. Large Scale Manufacturing performed slightly better Gross Profit increased to Rs. 21.1 billion from Rs. 12.8 billion last year representing an increase of 65.3%.
growing at 4.7% for the first three quarters as compared to 3.3% for last year. The construction sector registered a growth
of 8.5% in the first three quarters as against 7.0% for last year. Acceleration in the construction activity in the country was During the year under review, financial charges quadrupled from Rs. 456.9 million last year to Rs. 1,822.5 million as a result
primarily driven by the government’s continued focus and expenditure on infrastructure projects and increased of long term borrowings for acquisition of Pakcem Limited.
investment in small scale construction. Pak Rupee depreciated by nearly 3% during the year under review. While interest
rates and inflation witnessed a declining trend, during the year, power shortage remained the single largest impediment Profit before taxation for the year ended 30 June 2016 stood at Rs. 17.1 billion as compared to Rs. 12.1 billion for the
to economic growth. previous year. Profit after taxation for the year amounted to Rs. 11.9 billion as compared to Rs. 9.6 billion for the year
ended 30 June 2015.
Industry Overview
Domestic demand grew by 17% from 28.2 million tonnes to 33.0 million tonnes. Exports on the other hand, registered a Earnings per share of the Company for the year ended 30 June 2016 stood at Rs. 20.16 as against restated EPS of Rs. 16.56
decline of 18.4% from 7.2 million tonnes to 5.9 million tonnes mainly due to slower demand and competitive prices over for the year ended 30 June 2015.
the corresponding period last year. Overall, industry dispatches grew by 9.9% from 35.4 million tonnes to 38.9 million
tonnes for the year under review. Balance Sheet
Your Company continued to discharge its repayment obligations on all types of loans on a timely basis. The Company’s
Merger of Pakcem Limited into Bestway Cement Limited total borrowings as at 30 June 2016 stood at Rs. 18.9 billion compared to Rs. 29.2 billion for the same period last year as
The scheme of amalgamation of Pakcem Limited into Bestway Cement Limited was approved by the shareholders of both the company repaid Rs. 10.3 billion of its loans.
companies in their respective Extraordinary General Meetings held on 4 May 2016. Both companies have been in the
business of manufacture and sale of cement and were under common management. The capital and reserves of your Company grew to Rs. 42 billion as compared to Rs. 34 billion for the year ended 30 June
2015.
The Scheme was sanctioned by the Honourable High Court of Islamabad on 18 August 2016 and submitted to the
Registrar SECP on 16 September 2016 (“Effective Date”). As a consequence, the Company is to issue 1 ordinary share of Net current assets on 30 June 2016 stood at Rs. 2 billion as against net current liabilities of Rs. 523.5 million on 30 June
Rs.10 each to the shareholders of Pakcem Limited (Other than the Company) for every 10 ordinary shares of Rs. 10 each 2015.
held in Pakcem Limited within ninety days of the Effective Date.
Other Investments
Pursuant to the scheme of amalgamation and in accordance with the substance of series of transactions of acquisition, Your Company’s investment in United Bank Limited continues to yield good returns for the Company. The Bank’s profit
subsequent merger and in accordance with the requirements of International Financial Reporting Standards, separate before tax for the year ended 31 December 2015 stood at Rs. 43.4 billion against Rs. 35.6 billion for the corresponding
financial statements for Pakcem Limited were no longer required from 22 April 2015 (acquisition date). The Company’s period last year which represents an increase of 22%.
financial statements for the year ended 30 June 2016 therefore comprise results of full year for Bestway and Kallar Kahar
Plant (formerly Pakcem Limited) and accordingly previous reported figures have also been restated to account for result We are delighted to inform you that the bank paid out a cash dividend of 130% for its year ended 31 December 2015 thus
after acquisition date. providing a return of Rs. 1.3 billion on your investment in the Bank as compared to Rs. 1.1 billion for the year ended 31
December 2014.
The merger is expected to result in higher operational efficiency and economies of scale.
Contribution to the National Exchequer
Production and Sales Review Bestway Cement is among the largest taxpayers in the country. During the year under review, your Company’s
contribution to the exchequer amounted to more than Rs. 19 billion on account of income tax, sales tax and excise duty.
Production and Sales In addition, your Company pays large amounts in the form of various indirect taxes to the federal, provincial and local
governments.
2016 2015 Increase
Tonnes Tonnes % % Appropriation
Bestway Pakcem Total Bestway Pakcem Total Bestway Total Your Company is mindful of providing a superior return to its shareholders. In view of the superb performance during the
year under review, the directors feel great pleasure in recommending a final dividend of Rs. 2.50 per share. Three Interim
Clinker production 4,306,488 1,516,892 5,823,380 4,043,634 251,101 4,294,735 6.50% 35.59% dividends of Rs. 2.50 each per share were declared along with quarterly results of the company and have been paid out
during the year. The total dividend is to be approved by the shareholders at the Annual General Meeting to be held on
Cement production 5,109,045 1,774,415 6,883,460 4,486,530 289,852 4,776,382 13.88% 44.11% 9 December 2016.
Cement sales 5,132,403 1,771,089 6,903,492 4,528,025 325,247 4,853,272 13.35% 42.24% Plants’ Performance
Your Company’s management follows an elaborate plan of preventative maintenance, which it has adopted right from
*Figures for 2015 comprise of full year for Bestway and two months & nine days for Kallar Kahar Plant (formerly Pakcem the beginning. This proactive approach ensures efficient and stable operations with minimum disruptions. Our well-knit
Limited). team of dedicated managers, engineers, technicians and other members of management and administrative staff play
key role in the successful implementation of this plan.
During the year under review, all our cement plants and the waste heat recovery plants operated satisfactorily.

DIRECTORS’ REPORT TO THE Cement market remained fiercely competitive during 2015-16. However, your Company persevered in maintaining its
position as the largest cement producer and the market leader in the country. Despite competition in international
markets, Bestway continued to be one of the largest exporters of cement to Afghanistan and India.
SHAREHOLDERS Operating Highlights

The Company recorded sales of Rs. 58.5 billion compared to Rs. 41.5 billion during the preceding year which is an increase
of 41%. Net turnover amounted to Rs. 45.7 billion compared to Rs. 32.7 billion for the preceding year. This increase is
The Board of Directors take pleasure in presenting their report together with the Company’s Financial Statements for the mainly due to the additional capacity of Kallar Kahar plant and excellent growth in domestic demand.
year ended 30 June 2016 and the Auditors’ Report thereon.
On a standalone basis, Bestway recorded sales of Rs. 43.3 billion compared to Rs. 38.7 billion during the preceding year,
Overview of the Economy which is an increase of 11.9%.
The country’s GDP growth improved slightly to 4.7% for the fiscal year ended 30 June 2016 as compared to 4.2% for the
year before. Inflation stood at 2.8% as against 4.5% of last year. Large Scale Manufacturing performed slightly better Gross Profit increased to Rs. 21.1 billion from Rs. 12.8 billion last year representing an increase of 65.3%.
growing at 4.7% for the first three quarters as compared to 3.3% for last year. The construction sector registered a growth
of 8.5% in the first three quarters as against 7.0% for last year. Acceleration in the construction activity in the country was During the year under review, financial charges quadrupled from Rs. 456.9 million last year to Rs. 1,822.5 million as a result
primarily driven by the government’s continued focus and expenditure on infrastructure projects and increased of long term borrowings for acquisition of Pakcem Limited.
investment in small scale construction. Pak Rupee depreciated by nearly 3% during the year under review. While interest
rates and inflation witnessed a declining trend, during the year, power shortage remained the single largest impediment Profit before taxation for the year ended 30 June 2016 stood at Rs. 17.1 billion as compared to Rs. 12.1 billion for the
to economic growth. previous year. Profit after taxation for the year amounted to Rs. 11.9 billion as compared to Rs. 9.6 billion for the year
ended 30 June 2015.
Industry Overview
Domestic demand grew by 17% from 28.2 million tonnes to 33.0 million tonnes. Exports on the other hand, registered a Earnings per share of the Company for the year ended 30 June 2016 stood at Rs. 20.16 as against restated EPS of Rs. 16.56
decline of 18.4% from 7.2 million tonnes to 5.9 million tonnes mainly due to slower demand and competitive prices over for the year ended 30 June 2015.
the corresponding period last year. Overall, industry dispatches grew by 9.9% from 35.4 million tonnes to 38.9 million
tonnes for the year under review. Balance Sheet
Your Company continued to discharge its repayment obligations on all types of loans on a timely basis. The Company’s
Merger of Pakcem Limited into Bestway Cement Limited total borrowings as at 30 June 2016 stood at Rs. 18.9 billion compared to Rs. 29.2 billion for the same period last year as
The scheme of amalgamation of Pakcem Limited into Bestway Cement Limited was approved by the shareholders of both the company repaid Rs. 10.3 billion of its loans.
companies in their respective Extraordinary General Meetings held on 4 May 2016. Both companies have been in the
business of manufacture and sale of cement and were under common management. The capital and reserves of your Company grew to Rs. 42 billion as compared to Rs. 34 billion for the year ended 30 June
2015.
The Scheme was sanctioned by the Honourable High Court of Islamabad on 18 August 2016 and submitted to the
Registrar SECP on 16 September 2016 (“Effective Date”). As a consequence, the Company is to issue 1 ordinary share of Net current assets on 30 June 2016 stood at Rs. 2 billion as against net current liabilities of Rs. 523.5 million on 30 June
Rs.10 each to the shareholders of Pakcem Limited (Other than the Company) for every 10 ordinary shares of Rs. 10 each 2015.
held in Pakcem Limited within ninety days of the Effective Date.
Other Investments
Pursuant to the scheme of amalgamation and in accordance with the substance of series of transactions of acquisition, Your Company’s investment in United Bank Limited continues to yield good returns for the Company. The Bank’s profit
subsequent merger and in accordance with the requirements of International Financial Reporting Standards, separate before tax for the year ended 31 December 2015 stood at Rs. 43.4 billion against Rs. 35.6 billion for the corresponding
financial statements for Pakcem Limited were no longer required from 22 April 2015 (acquisition date). The Company’s period last year which represents an increase of 22%.
financial statements for the year ended 30 June 2016 therefore comprise results of full year for Bestway and Kallar Kahar
Plant (formerly Pakcem Limited) and accordingly previous reported figures have also been restated to account for result We are delighted to inform you that the bank paid out a cash dividend of 130% for its year ended 31 December 2015 thus
after acquisition date. providing a return of Rs. 1.3 billion on your investment in the Bank as compared to Rs. 1.1 billion for the year ended 31
December 2014.
The merger is expected to result in higher operational efficiency and economies of scale.
Contribution to the National Exchequer
Production and Sales Review Bestway Cement is among the largest taxpayers in the country. During the year under review, your Company’s
contribution to the exchequer amounted to more than Rs. 19 billion on account of income tax, sales tax and excise duty.
Production and Sales In addition, your Company pays large amounts in the form of various indirect taxes to the federal, provincial and local
governments.
2016 2015 Increase
Tonnes Tonnes % % Appropriation
Bestway Pakcem Total Bestway Pakcem Total Bestway Total Your Company is mindful of providing a superior return to its shareholders. In view of the superb performance during the
year under review, the directors feel great pleasure in recommending a final dividend of Rs. 2.50 per share. Three Interim
Clinker production 4,306,488 1,516,892 5,823,380 4,043,634 251,101 4,294,735 6.50% 35.59% dividends of Rs. 2.50 each per share were declared along with quarterly results of the company and have been paid out
during the year. The total dividend is to be approved by the shareholders at the Annual General Meeting to be held on
Cement production 5,109,045 1,774,415 6,883,460 4,486,530 289,852 4,776,382 13.88% 44.11% 9 December 2016.
Cement sales 5,132,403 1,771,089 6,903,492 4,528,025 325,247 4,853,272 13.35% 42.24% Plants’ Performance
Your Company’s management follows an elaborate plan of preventative maintenance, which it has adopted right from
*Figures for 2015 comprise of full year for Bestway and two months & nine days for Kallar Kahar Plant (formerly Pakcem the beginning. This proactive approach ensures efficient and stable operations with minimum disruptions. Our well-knit
Limited). team of dedicated managers, engineers, technicians and other members of management and administrative staff play
key role in the successful implementation of this plan.
During the year under review, all our cement plants and the waste heat recovery plants operated satisfactorily.

Health, Safety and Environment
Alternative Energy & CPP Initiatives As a responsible corporate citizen, Bestway Cement recognises the importance of health and safety not only for its own
Cement manufacturing is an energy-intensive process. Power represents one of the largest costs of production. Persistent employees, but also for non-company personnel, in the successful conduct of our business. Your Company is therefore
power crisis in the country necessitated a shift from conventional fossil fuels to alternate energy solutions. As part of its committed to preventing injury at workplace and strives for continuous improvement in its environment, health and
strategy to reduce its reliance on the national grid, your Company set up waste heat recovery power plants at Chakwal, safety management and performance.
Hattar and Farooqia plant sites. Bestway’s WHRP plant at Chakwal was the first in the cement industry of Pakistan
prompting others to follow suit. Initiatives including training on health and safety, safety meetings, incident reporting, safety audits, safety champions,
good housekeeping and hygiene controls are actively and consistently pursued to instil safe behaviour in all personnel.
Soon after take-over, the Company embarked upon setting up a waste heat recovery power plant at Kallar Kahar with a Your Company has strived to make industrial operations safer, and has established numerous directives and standards to
generation capacity of 12MW. The project is at an advanced stage and is expected to be fully operational in the third increase awareness among both employees and contractors. These advisories are to be strictly adhered to across the
quarter of 2016-17. The project will not only generate power, but also reduce emission of waste gases and positively organisation and shared with external stakeholders as best practices.
impact the environment.
Bestway Cement actively pursues protection and upgradation of the environment by ensuring that its plants continue to
This is an important step in energy conservation for your Company, making it a forerunner in adopting WHR technology comply with established environmental quality standards at all times. Our plants not only meet the stringent
at all four operations. These projects serve to significantly reduce the Company’s dependence on external source of environmental quality standards prescribed by the Environment Protection Authority of Pakistan, they even surpass the
electricity thus helping in reduction of production costs, improving operational efficiency and protecting the international standards for emissions. In addition to having a robust environmental control mechanism in place to ensure
environment. cleaner environment, Bestway also conducts a quarterly review of its production facilities through an independent
expert.
Quality Assurance
Bestway Cement is a company driven by efficiency and quality consciousness. With strict quality control procedures in Bestway believes that it is possible to create a symbiotic relationship between multiple industries, so waste from one
place, the Company has deployed high quality control equipment at the plants. Bestway’s laboratories are equipped with company can be used as fuel or raw material for another, thus preserving natural resources. Our plants are ISO 14001:2004
state-of-the-art x-ray fluorescent analyser and diffractometer and were the first in Pakistan to introduce the technology. Environmental Management System (EMS) certified, and the Company regularly participates in various environment uplift
By virtue of this equipment, the Company has been able to consistently produce better quality cement than is currently programmes including tree plantation drives and quarry rehabilitation initiatives. The well being of the social
available in the country. Recently, our laboratories at Farooqia plant have attained ISO 17025 certification making Bestway environment in which Bestway operates is considered an integral part of the Company’s success.
only the 2nd cement producer in Pakistan to have achieved this milestone. Our laboratories at the other 3 plants are also
in process of securing this certification. You would be delighted to learn that for the seventh year running your Company has been given the prestigious
Environment Excellence Award by the National Forum for Environment and Health for all of its factories.
Marketing
Bestway is the largest cement producer in Pakistan and an ISO 9001 Quality Management System certified company. Your Corporate Social Responsibility
Company continues to be a top brand both in the domestic market, as well as various international markets, where it is As a business conglomerate with strong local roots, Bestway invests in its operations for the long term and thus
firmly established as a premium brand. Bestway Cement continues to maintain its position as the largest exporter of appreciates that it has a special responsibility towards society. This starts with our own employees, whose health and
cement to Afghanistan and among the largest to India. Your Company has been able to achieve its status as the market safety is one of our top priorities. Your Company plays an active part in the socio-economic development of local
leader due to its consistently superior quality, effective marketing strategy, customer care and sheer dedication of its sales communities such as improving access to health services and education, taking part in urban development and
and marketing teams. environmental conservation programs and helping create businesses and jobs.
Your Company is among the few in the country which are certified to export its cement to India and also possesses Bestway Foundation, the charitable trust of the Bestway Group to which your Company is a major contributor, was
EC-Certificate of Conformity. These certifications enable Bestway to pursue export opportunities in India, the European established in 1997. It works in close association with Bestway Cement and its main goal is provision of education in rural
Community and countries where EC certification is required. communities. The Foundation is also certified from the Pakistan Centre for Philanthropy.
Acquisition and subsequent merger of Pakcem Limited into Bestway has meant that your Company now offers widest In keeping with its philosophy, the Foundation decided to establish a large state-of-the-art school in District Chakwal. The
range of supreme quality products among its competitors which has further strengthened Bestway’s standing in both Bestway Foundation School, Tatral was completed during the year at a cost of Rs. 67 million and can accommodate more
domestic and international markets. than 400 pupils. Currently, 151 students are being provided free and quality education at the school.
Training and Development The Foundation continues to impart free education through its Girls College in Gujar Khan and provide support to
Bestway places great importance on the training, development and education of its personnel. In order to keep its numerous government schools in underprivileged rural areas in Punjab and KPK.
workforce abreast with best operational techniques and practices, technical and general managerial training courses are
organised for various departments and categories of personnel. Staff members are also sent on courses, workshops and The Foundation also provides scholarships to a large number of talented students throughout the country, a vast majority
seminars organised externally by other institutions. The Company actively encourages and assists its employees in pursuit of who are medical and engineering students, who for want of sufficient resources are unable to continue their higher
of professional development and career enhancement. studies.
As part of its commitment to skills development and grooming of workforce, Bestway regularly employs freshly qualified During the year, the Foundation also provided financial assistance of more than Rs. 32 million to various educational and
graduates, professionals and even unskilled human resource. There are carefully planned training programmes in place to health institutions. Some of the beneficiaries include Forman Christian College Lahore, Northern University Peshawar,
ensure that these personnel are equipped with necessary knowledge, hands-on experience and confidence to become National Society for Mentally and Emotionally Handicapped Children, Al Mustafa Trust, The Layton Rahmatullah
skilled and productive resource. Benevolent Trust and Thathi Foundation.
At any given time, Bestway employs more than 175 trainee engineers, management trainees and apprentices. Trainee In addition to pursuing its core objective of improving education, Bestway Foundation also provides financial assistance
engineers undergo intensive training in electrical, mechanical and mining departments, while management trainees are to a large number of widows and indigents of the local communities in the form of monthly stipends.
inducted in marketing, finance, personnel and administration where they are carefully trained to become effective
managers in the future. Apprentices are employed in various technical departments at all the factories. While some of In the area of basic health, free medical facilities are provided to the local communities through dispensaries located at
those trainees and apprentices are retained in the Company, others move on to other industries where they successfully our factory premises. During the year under review alone, more than 33,000 patients benefited from those free
build upon the foundation provided to them at Bestway Cement through the training imparted to them for the dispensaries.
advancement of their careers and contributing towards the development of the country.
Your Company also contributes generously towards various welfare causes such as flood relief activities and projects of
social and communal uplift.

Health, Safety and Environment
Alternative Energy & CPP Initiatives As a responsible corporate citizen, Bestway Cement recognises the importance of health and safety not only for its own
Cement manufacturing is an energy-intensive process. Power represents one of the largest costs of production. Persistent employees, but also for non-company personnel, in the successful conduct of our business. Your Company is therefore
power crisis in the country necessitated a shift from conventional fossil fuels to alternate energy solutions. As part of its committed to preventing injury at workplace and strives for continuous improvement in its environment, health and
strategy to reduce its reliance on the national grid, your Company set up waste heat recovery power plants at Chakwal, safety management and performance.
Hattar and Farooqia plant sites. Bestway’s WHRP plant at Chakwal was the first in the cement industry of Pakistan
prompting others to follow suit. Initiatives including training on health and safety, safety meetings, incident reporting, safety audits, safety champions,
good housekeeping and hygiene controls are actively and consistently pursued to instil safe behaviour in all personnel.
Soon after take-over, the Company embarked upon setting up a waste heat recovery power plant at Kallar Kahar with a Your Company has strived to make industrial operations safer, and has established numerous directives and standards to
generation capacity of 12MW. The project is at an advanced stage and is expected to be fully operational in the third increase awareness among both employees and contractors. These advisories are to be strictly adhered to across the
quarter of 2016-17. The project will not only generate power, but also reduce emission of waste gases and positively organisation and shared with external stakeholders as best practices.
impact the environment.
Bestway Cement actively pursues protection and upgradation of the environment by ensuring that its plants continue to
This is an important step in energy conservation for your Company, making it a forerunner in adopting WHR technology comply with established environmental quality standards at all times. Our plants not only meet the stringent
at all four operations. These projects serve to significantly reduce the Company’s dependence on external source of environmental quality standards prescribed by the Environment Protection Authority of Pakistan, they even surpass the
electricity thus helping in reduction of production costs, improving operational efficiency and protecting the international standards for emissions. In addition to having a robust environmental control mechanism in place to ensure
environment. cleaner environment, Bestway also conducts a quarterly review of its production facilities through an independent
expert.
Quality Assurance
Bestway Cement is a company driven by efficiency and quality consciousness. With strict quality control procedures in Bestway believes that it is possible to create a symbiotic relationship between multiple industries, so waste from one
place, the Company has deployed high quality control equipment at the plants. Bestway’s laboratories are equipped with company can be used as fuel or raw material for another, thus preserving natural resources. Our plants are ISO 14001:2004
state-of-the-art x-ray fluorescent analyser and diffractometer and were the first in Pakistan to introduce the technology. Environmental Management System (EMS) certified, and the Company regularly participates in various environment uplift
By virtue of this equipment, the Company has been able to consistently produce better quality cement than is currently programmes including tree plantation drives and quarry rehabilitation initiatives. The well being of the social
available in the country. Recently, our laboratories at Farooqia plant have attained ISO 17025 certification making Bestway environment in which Bestway operates is considered an integral part of the Company’s success.
only the 2nd cement producer in Pakistan to have achieved this milestone. Our laboratories at the other 3 plants are also
in process of securing this certification. You would be delighted to learn that for the seventh year running your Company has been given the prestigious
Environment Excellence Award by the National Forum for Environment and Health for all of its factories.
Marketing
Bestway is the largest cement producer in Pakistan and an ISO 9001 Quality Management System certified company. Your Corporate Social Responsibility
Company continues to be a top brand both in the domestic market, as well as various international markets, where it is As a business conglomerate with strong local roots, Bestway invests in its operations for the long term and thus
firmly established as a premium brand. Bestway Cement continues to maintain its position as the largest exporter of appreciates that it has a special responsibility towards society. This starts with our own employees, whose health and
cement to Afghanistan and among the largest to India. Your Company has been able to achieve its status as the market safety is one of our top priorities. Your Company plays an active part in the socio-economic development of local
leader due to its consistently superior quality, effective marketing strategy, customer care and sheer dedication of its sales communities such as improving access to health services and education, taking part in urban development and
and marketing teams. environmental conservation programs and helping create businesses and jobs.
Your Company is among the few in the country which are certified to export its cement to India and also possesses Bestway Foundation, the charitable trust of the Bestway Group to which your Company is a major contributor, was
EC-Certificate of Conformity. These certifications enable Bestway to pursue export opportunities in India, the European established in 1997. It works in close association with Bestway Cement and its main goal is provision of education in rural
Community and countries where EC certification is required. communities. The Foundation is also certified from the Pakistan Centre for Philanthropy.
Acquisition and subsequent merger of Pakcem Limited into Bestway has meant that your Company now offers widest In keeping with its philosophy, the Foundation decided to establish a large state-of-the-art school in District Chakwal. The
range of supreme quality products among its competitors which has further strengthened Bestway’s standing in both Bestway Foundation School, Tatral was completed during the year at a cost of Rs. 67 million and can accommodate more
domestic and international markets. than 400 pupils. Currently, 151 students are being provided free and quality education at the school.
Training and Development The Foundation continues to impart free education through its Girls College in Gujar Khan and provide support to
Bestway places great importance on the training, development and education of its personnel. In order to keep its numerous government schools in underprivileged rural areas in Punjab and KPK.
workforce abreast with best operational techniques and practices, technical and general managerial training courses are
organised for various departments and categories of personnel. Staff members are also sent on courses, workshops and The Foundation also provides scholarships to a large number of talented students throughout the country, a vast majority
seminars organised externally by other institutions. The Company actively encourages and assists its employees in pursuit of who are medical and engineering students, who for want of sufficient resources are unable to continue their higher
of professional development and career enhancement. studies.
As part of its commitment to skills development and grooming of workforce, Bestway regularly employs freshly qualified During the year, the Foundation also provided financial assistance of more than Rs. 32 million to various educational and
graduates, professionals and even unskilled human resource. There are carefully planned training programmes in place to health institutions. Some of the beneficiaries include Forman Christian College Lahore, Northern University Peshawar,
ensure that these personnel are equipped with necessary knowledge, hands-on experience and confidence to become National Society for Mentally and Emotionally Handicapped Children, Al Mustafa Trust, The Layton Rahmatullah
skilled and productive resource. Benevolent Trust and Thathi Foundation.
At any given time, Bestway employs more than 175 trainee engineers, management trainees and apprentices. Trainee In addition to pursuing its core objective of improving education, Bestway Foundation also provides financial assistance
engineers undergo intensive training in electrical, mechanical and mining departments, while management trainees are to a large number of widows and indigents of the local communities in the form of monthly stipends.
inducted in marketing, finance, personnel and administration where they are carefully trained to become effective
managers in the future. Apprentices are employed in various technical departments at all the factories. While some of In the area of basic health, free medical facilities are provided to the local communities through dispensaries located at
those trainees and apprentices are retained in the Company, others move on to other industries where they successfully our factory premises. During the year under review alone, more than 33,000 patients benefited from those free
build upon the foundation provided to them at Bestway Cement through the training imparted to them for the dispensaries.
advancement of their careers and contributing towards the development of the country.
Your Company also contributes generously towards various welfare causes such as flood relief activities and projects of
social and communal uplift.

Future Prospects ● Attendance by each director in the 5 Board Meetings held during the year was as follows:
Improving law and order situation and general economic environment bodes well for the country and in particular for the
construction sector. Inflation, although creeping up, is likely to remain below 5% in the short run. Interest rates are not
No. of Meetings Attended
expected to rise by much either. This, coupled with the Government’s focus on infrastructure development, is expected to
encourage economic activity in the country. Projects like Pakistan China Economic Corridor and increased allocation in Sir Mohammed Anwar Pervez 3
Public Sector Development Programme (PSDP) in particular, should generate healthy cement demand in the domestic Mr. Zameer Mohammed Choudrey 5
market. Increasing cement consumption should therefore result in stable prices which will help the Company to maintain
Mr. Muhammad Irfan Anwar Sheikh 5
healthy margins.
Mr. Mohammed Younus Sheikh 0
Alongside the positives, cement industry will have to contend with certain challenges. Coal prices, having remained Mr. Dawood Pervez 3
subdued for a long time, are on an upward trajectory on the back of limited supply and increasing trend in oil prices. Mr. Arshad Mehmood Chaudhary 1
Higher oil prices will soon begin to impact power tariffs and fuel inflation. Endemic power shortage will continue to Ms. Najma Naheed Pirzada 4
hamper smooth operations. Pak Rupee is also likely to come under some pressure thus adversely impacting the
Company’s imports, in particular coal. Growing cement demand has encouraged some producers to announce expansion
plans. Increase in production capacity might result in supply outstripping demand in the medium term. Leave of absence was granted to the Directors who could not attend some of the Board meetings.
Bestway, being one of the most efficient and lowest cost producers in the industry, is however comparatively better ● Attendance by each director in the 4 Audit Committee meetings held during the year was as follows:
positioned to face those challenges.
Like always, your management is cognisant of the challenges that lie ahead and will continue to make all out efforts to
ensure further growth and superior returns in the ensuing years. Mr. Mohammed Younus Sheikh 4
Mr. Dawood Pervez 4
Ms. Najma Naheed Pirzada 4
The Directors are pleased to state that:
● The financial statements prepared by the management of the Company fairly present its state of affairs, the results of ● Attendance by each director in the 2 HR and Remuneration Committee meetings held during the year was as follows:
its operations, cash flows and changes in equity.
● The Company has maintained proper books of account. No. of Meetings Attended
● Appropriate accounting policies have been adopted and consistently applied in preparation of financial statements
and accounting estimates are based on reasonable and prudent judgement.
Mr. Dawood Pervez 2
● International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of financial
statements. Auditors
The present auditors, Messrs KPMG Taseer Hadi & Co., Chartered Accountants retire at the conclusion of the meeting and
● The system of internal controls is sound in design and has been effectively implemented and monitored. The system being eligible, have offered themselves for reappointment. The Audit Committee of the Company having considered the
itself is also subject to continuous review for enhancement wherever and whenever necessary. matter recommend the retiring auditors for reappointment.
● There are no doubts about the Company’s ability to continue as a going concern. Acknowledgements
The Directors wish to place on record their appreciation for the continued support, contribution and confidence
● There has been no material departure from the best practices of corporate governance, as detailed in the listing demonstrated in the Company by its shareholders, members of staff, customers, suppliers, our Bankers particularly, Allied
regulations. Bank Limited, Habib Bank Limited, Faysal Bank Limited, Meezan Bank Limited, MCB Bank Limited, United Bank Limited,
Askari Bank Limited, Soneri Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, Standard Chartered
● None of the directors, executives, spouses and minor children transacted any shares of the Company during the book Bank (Pakistan) Limited, NIB Bank Limited , National Bank of Pakistan, and various government agencies throughout the
closure periods notified in the year under review. year.
● Key financial data for the last six years is given in subsequent pages.
● Outstanding taxes, duties and charges have been disclosed in the financial statements. For and on behalf of the Board
● A statement of the pattern of shareholding in the Company as at 30 June 2016 of certain classes of shareholders
whose disclosure is required under the Code of Corporate Governance is in subsequent pages.
Zameer Mohammed Choudrey Muhammad Irfan A. Sheikh

Chief Executive Director
18 November 2016
Islamabad

Future Prospects ● Attendance by each director in the 5 Board Meetings held during the year was as follows:
Improving law and order situation and general economic environment bodes well for the country and in particular for the
construction sector. Inflation, although creeping up, is likely to remain below 5% in the short run. Interest rates are not
expected to rise by much either. This, coupled with the Government’s focus on infrastructure development, is expected to
encourage economic activity in the country. Projects like Pakistan China Economic Corridor and increased allocation in Sir Mohammed Anwar Pervez 3
Public Sector Development Programme (PSDP) in particular, should generate healthy cement demand in the domestic Mr. Zameer Mohammed Choudrey 5
market. Increasing cement consumption should therefore result in stable prices which will help the Company to maintain
healthy margins.
Alongside the positives, cement industry will have to contend with certain challenges. Coal prices, having remained Mr. Dawood Pervez 3
subdued for a long time, are on an upward trajectory on the back of limited supply and increasing trend in oil prices. Mr. Arshad Mehmood Chaudhary 1
Higher oil prices will soon begin to impact power tariffs and fuel inflation. Endemic power shortage will continue to Ms. Najma Naheed Pirzada 4
hamper smooth operations. Pak Rupee is also likely to come under some pressure thus adversely impacting the
Company’s imports, in particular coal. Growing cement demand has encouraged some producers to announce expansion
plans. Increase in production capacity might result in supply outstripping demand in the medium term. Leave of absence was granted to the Directors who could not attend some of the Board meetings.
Bestway, being one of the most efficient and lowest cost producers in the industry, is however comparatively better ● Attendance by each director in the 4 Audit Committee meetings held during the year was as follows:
positioned to face those challenges.
Like always, your management is cognisant of the challenges that lie ahead and will continue to make all out efforts to
ensure further growth and superior returns in the ensuing years. Mr. Mohammed Younus Sheikh 4
Mr. Dawood Pervez 4
Ms. Najma Naheed Pirzada 4
The Directors are pleased to state that:
● The financial statements prepared by the management of the Company fairly present its state of affairs, the results of ● Attendance by each director in the 2 HR and Remuneration Committee meetings held during the year was as follows:
its operations, cash flows and changes in equity.
● The Company has maintained proper books of account. No. of Meetings Attended
● Appropriate accounting policies have been adopted and consistently applied in preparation of financial statements
and accounting estimates are based on reasonable and prudent judgement.
Mr. Dawood Pervez 2
● International Financial Reporting Standards, as applicable in Pakistan, have been followed in preparation of financial
statements. Auditors
The present auditors, Messrs KPMG Taseer Hadi & Co., Chartered Accountants retire at the conclusion of the meeting and
● The system of internal controls is sound in design and has been effectively implemented and monitored. The system being eligible, have offered themselves for reappointment. The Audit Committee of the Company having considered the
itself is also subject to continuous review for enhancement wherever and whenever necessary. matter recommend the retiring auditors for reappointment.
● There are no doubts about the Company’s ability to continue as a going concern. Acknowledgements
The Directors wish to place on record their appreciation for the continued support, contribution and confidence
● There has been no material departure from the best practices of corporate governance, as detailed in the listing demonstrated in the Company by its shareholders, members of staff, customers, suppliers, our Bankers particularly, Allied
regulations. Bank Limited, Habib Bank Limited, Faysal Bank Limited, Meezan Bank Limited, MCB Bank Limited, United Bank Limited,
Askari Bank Limited, Soneri Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, Standard Chartered
● None of the directors, executives, spouses and minor children transacted any shares of the Company during the book Bank (Pakistan) Limited, NIB Bank Limited , National Bank of Pakistan, and various government agencies throughout the
closure periods notified in the year under review. year.
● Key financial data for the last six years is given in subsequent pages.
● Outstanding taxes, duties and charges have been disclosed in the financial statements. For and on behalf of the Board
● A statement of the pattern of shareholding in the Company as at 30 June 2016 of certain classes of shareholders
whose disclosure is required under the Code of Corporate Governance is in subsequent pages.
Zameer Mohammed Choudrey Muhammad Irfan A. Sheikh

Chief Executive Director
18 November 2016
Islamabad

STATEMENT OF COMPLIANCE 9. Three (3) Directors of the Company are exempted from directors training programme due to 14 years of education
and 15 years of experience on the board of a listed company. Four directors Mr. Muhammad Irfan Anwar Sheikh, Mr.
Mohammed Younus Sheikh, Mr. Dawood Pervez and Ms. Najma Naheed Pirzada have completed the directors
WITH THE CODE OF CORPORATE

training program.
10. The board has approved appointment of CFO, Company Secretary and Head of Internal Audit, including their
GOVERNANCE
remuneration and terms and conditions of their employment.
11. The Directors’ report for this year has been prepared in compliance with the requirements of the CCG and fully
describes the salient matters required to be disclosed.
Name of Company Bestway Cement Limited
Year Ended June 30, 2016 12. The financial statements of the Company were duly endorsed by the CEO and the CFO before approval by the board.
This statement is being presented to comply with the Code of Corporate Governance (CCG) contained in the Regulation 13. The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed in
No. 5.19 of listing regulations of Pakistan Stock Exchange Limited for the purpose of establishing a framework of good the pattern of shareholding.
governance, whereby a listed company is managed in compliance with the best practices of corporate governance.
14. The Company has complied with all the corporate and financial reporting requirements of the CCG.
The Company has applied the principles contained in the CCG in the following manner:
15. The board has formed an Audit Committee. It comprises of three members of whom two members including the
1. The company encourages representation of independent non-executive directors and directors representing Chairman are non-executive directors while the third is an independent director.
minority interests on its Board of Directors. At present the Board includes:
16. The meetings of the Audit Committee were held at least once in every quarter prior to the approval of interim and
Category Names final results of the Company. As required by the CCG the terms of reference of the committee have been formed and
advised to the committee for compliance.
Independent Directors 1. Ms Najma Naheed Pirzada
Executive Directors 1. Mr. Zameer Mohammed Choudrey 17. The Board has formed an HR and Remuneration Committee. It comprises of three members, of whom the Chairman is
2. Mr. Muhammad Irfan Anwar Sheikh an executive director while the other two are non-executive directors.
Non-Executive Directors 1. Sir Mohammed Anwar Pervez
2. Mr. Dawood Pervez 18. The board has set up an effective internal audit function which is working since inception. The members of the
3. Mr. Arshad Mehmood Chaudhary department are considered suitably qualified and experienced for the purpose and are conversant with the policies
4. Mr. Mohammed Younus Sheikh and procedures of the Company.
The independent directors meets the criteria of independence under clause 5.19.1.(b) of the CCG. 19. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
Quality Control Review Programme of the Institute of Chartered Accountants of Pakistan, that they or any of the
2. The directors have confirmed that none of them is serving as a director on more than seven listed companies, partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and all its
including this Company. partners are in compliance with the International Federation of Accountants’ (IFAC) guidelines on the code of ethics
as adopted by Institute of Chartered Accountants of Pakistan.
3. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of
any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a 20. The statutory auditors or the persons associated with them have not been appointed to provide other services except
defaulter by that stock exchange. in accordance with the listing regulations and the auditors have confirmed that they have observed the IFAC
guidelines in this regard.
4. No causal vacancy occurred on the Board of Directors during the year ended June 30, 2016.
21. The ‘closed period’, prior to the announcement of interim/final results, and business decisions, which may materially
5. The Company has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to affect the market price of the Company’s securities, was determined and intimated to the Directors, employees and
disseminate it throughout the Company alongwith its supporting policies and procedures. the Stock Exchange.
6. The board has developed a vision/mission statement, overall corporate strategy and significant policies of the 22. Material/price sensitive information has been disseminated among all market participants at once through the Stock
Company. A complete record of the particulars of the significant policies alongwith the dates on which they were Exchange.
approved or amended has been maintained.
23. We confirm that all other material principles enshrined in the CCG have been complied with.
7. All the powers of the board have been duly exercised and decision on material transactions, including appointment
and determination of remuneration and terms and conditions of employment of CEO, other executive and
non-executive directors, have been taken by the board/shareholders.
8. The meetings of the board were presided over by the Chairman and, in his absence, by a director elected by the For and on behalf of the Board
board for this purpose and the board met at least once in every quarter. Written notices of the board meetings,
alongwith the agenda and working papers were circulated at least seven days before the meetings. The minutes of
the meeting were appropriately recorded and circulated.
Islamabad: Zameer Mohammed Choudrey
November 18, 2016 Chief Executive

STATEMENT OF COMPLIANCE 9. Three (3) Directors of the Company are exempted from directors training programme due to 14 years of education
and 15 years of experience on the board of a listed company. Four directors Mr. Muhammad Irfan Anwar Sheikh, Mr.
Mohammed Younus Sheikh, Mr. Dawood Pervez and Ms. Najma Naheed Pirzada have completed the directors
WITH THE CODE OF CORPORATE

training program.
10. The board has approved appointment of CFO, Company Secretary and Head of Internal Audit, including their
GOVERNANCE
remuneration and terms and conditions of their employment.
11. The Directors’ report for this year has been prepared in compliance with the requirements of the CCG and fully
describes the salient matters required to be disclosed.
Name of Company Bestway Cement Limited
Year Ended June 30, 2016 12. The financial statements of the Company were duly endorsed by the CEO and the CFO before approval by the board.
This statement is being presented to comply with the Code of Corporate Governance (CCG) contained in the Regulation 13. The directors, CEO and executives do not hold any interest in the shares of the Company other than that disclosed in
No. 5.19 of listing regulations of Pakistan Stock Exchange Limited for the purpose of establishing a framework of good the pattern of shareholding.
governance, whereby a listed company is managed in compliance with the best practices of corporate governance.
14. The Company has complied with all the corporate and financial reporting requirements of the CCG.
The Company has applied the principles contained in the CCG in the following manner:
15. The board has formed an Audit Committee. It comprises of three members of whom two members including the
1. The company encourages representation of independent non-executive directors and directors representing Chairman are non-executive directors while the third is an independent director.
minority interests on its Board of Directors. At present the Board includes:
16. The meetings of the Audit Committee were held at least once in every quarter prior to the approval of interim and
Category Names final results of the Company. As required by the CCG the terms of reference of the committee have been formed and
advised to the committee for compliance.
Independent Directors 1. Ms Najma Naheed Pirzada
Executive Directors 1. Mr. Zameer Mohammed Choudrey 17. The Board has formed an HR and Remuneration Committee. It comprises of three members, of whom the Chairman is
2. Mr. Muhammad Irfan Anwar Sheikh an executive director while the other two are non-executive directors.
Non-Executive Directors 1. Sir Mohammed Anwar Pervez
2. Mr. Dawood Pervez 18. The board has set up an effective internal audit function which is working since inception. The members of the
3. Mr. Arshad Mehmood Chaudhary department are considered suitably qualified and experienced for the purpose and are conversant with the policies
4. Mr. Mohammed Younus Sheikh and procedures of the Company.
The independent directors meets the criteria of independence under clause 5.19.1.(b) of the CCG. 19. The statutory auditors of the Company have confirmed that they have been given a satisfactory rating under the
Quality Control Review Programme of the Institute of Chartered Accountants of Pakistan, that they or any of the
2. The directors have confirmed that none of them is serving as a director on more than seven listed companies, partners of the firm, their spouses and minor children do not hold shares of the Company and that the firm and all its
including this Company. partners are in compliance with the International Federation of Accountants’ (IFAC) guidelines on the code of ethics
as adopted by Institute of Chartered Accountants of Pakistan.
3. All the resident directors of the Company are registered as taxpayers and none of them has defaulted in payment of
any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a 20. The statutory auditors or the persons associated with them have not been appointed to provide other services except
defaulter by that stock exchange. in accordance with the listing regulations and the auditors have confirmed that they have observed the IFAC
guidelines in this regard.
4. No causal vacancy occurred on the Board of Directors during the year ended June 30, 2016.
21. The ‘closed period’, prior to the announcement of interim/final results, and business decisions, which may materially
5. The Company has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to affect the market price of the Company’s securities, was determined and intimated to the Directors, employees and
disseminate it throughout the Company alongwith its supporting policies and procedures. the Stock Exchange.
6. The board has developed a vision/mission statement, overall corporate strategy and significant policies of the 22. Material/price sensitive information has been disseminated among all market participants at once through the Stock
Company. A complete record of the particulars of the significant policies alongwith the dates on which they were Exchange.
approved or amended has been maintained.
23. We confirm that all other material principles enshrined in the CCG have been complied with.
7. All the powers of the board have been duly exercised and decision on material transactions, including appointment
and determination of remuneration and terms and conditions of employment of CEO, other executive and
non-executive directors, have been taken by the board/shareholders.
8. The meetings of the board were presided over by the Chairman and, in his absence, by a director elected by the For and on behalf of the Board
board for this purpose and the board met at least once in every quarter. Written notices of the board meetings,
alongwith the agenda and working papers were circulated at least seven days before the meetings. The minutes of
the meeting were appropriately recorded and circulated.
Islamabad: Zameer Mohammed Choudrey
November 18, 2016 Chief Executive

REPORT OF THE AUDIT Internal Audit
● The internal control framework has been effectively implemented through an independent in-house Internal Audit
COMMITTEE ●
function established by the Board which is independent of the External Audit function.
The Company’s system of internal control is sound in design and has been continually evaluated for effectiveness and
adequacy.
The role of the Board Audit Committee in the context of the Board’s broader governance framework is to oversee:
● The integrity of Company’s financial statements;
● The Audit Committee has ensured the achievement of operational, compliance, risk management, financial reporting
● The appointment, remuneration, qualification, independence and performance of External Auditors;
and control objectives, safeguarding of the assets of the Company and the shareholders wealth at all levels within the
● Risk management and internal control arrangements;
Company.
● The performance of Internal audit function;
● Compliance with legal and regulatory requirements;
● The Internal Audit Department carried out independent audits in accordance with an internal audit plan which was
● Compliance by management with constraints imposed by Board.
approved by the Board Audit Committee. The Committee has reviewed material Internal Audit findings, taking
appropriate action or bringing the matters to the Board’s attention where required.
The Audit Committee has concluded its review of the conduct and operations of the Company during the year ended
June 30, 2016 and reports that:
● The Head of Internal Audit has direct access to the Chairman of the Board Audit Committee and the Committee has
ensured staffing of personnel with sufficient internal audit acumen and that the function has all necessary access to
● The Company has issued a “Statement of Compliance with the Code of Corporate Governance” which has also been
Management and the right to seek information and explanations.
reviewed and certified by the Auditors of the Company.
● During the year four Board Audit Committee meetings were held to ensure that the Audit Function effectively
● Understanding and compliance with Company’s code and policies has been affirmed by the Management and
performed its assigned task.
employees of the Company individually. The Company’s Code of Conduct has been disseminated and placed on
Company’s website.
● Coordination between the External and Internal Auditors was facilitated to ensure efficiency and contribution to the
Company’s objectives, including a reliable financial reporting system and compliance with laws and regulations.
● Appropriate accounting policies have been consistently applied. Applicable International Accounting Standards were
followed in preparation of financial statements of the Company on a going concern basis, for the financial year ended
External Auditors
30 June, 2016 which present fairly the state of affairs, results of operations, profits, cash flows and changes in equity
of the Company for the year under review.
● The statutory Auditors of the Company, KPMG Taseer Hadi & Co., Chartered Accountants, have completed their Audit
assignment of the “Company’s Financial Statements” and the “Statement of Compliance with the Code of Corporate
● The Chief Executive Officer and the Chief Financial Officer have endorsed the Financial Statements and Directors
Governance” for the financial year ended 30 June, 2016 and shall retire on the conclusion of the 23rd Annual General
Report. They acknowledge their responsibility for true and fair presentation of the Company’s financial condition and
Meeting.
results, compliance with regulations and applicable accounting standards and establishment and maintenance of
internal controls and systems of the Company.
● The Audit Committee has reviewed and discussed Audit observations and Audit Management Letter with the
External Auditors.
● Proper and adequate accounting records have been maintained by the Company in accordance with the Companies
Ordinance, 1984. The financial statements comply with the requirements of the Fourth Schedule to the Companies
● The Auditors have been allowed direct access to the Committee and the effectiveness, independence and objectivity
Ordinance, 1984 and the external reporting is consistent with Management processes and adequate for shareholder
of the Auditors has thereby been ensured. The Auditors attended the General Meeting of the Company during the
needs.
year and have indicated their willingness to continue as Auditors.
● The preparation of Financial Statements is in conformity with International Financial Reporting Standards as
● The Audit Committee has recommended the reappointment of KPMG Taseer Hadi & Co., Chartered Accountants, as
applicable in Pakistan and requires the use of certain critical accounting estimates. It also requires management to
External Auditors of the Company for the year ending 30 June 2017.
exercise its judgment in the process of applying the Company’s accounting policies. Estimates and judgments were
continually evaluated and are based on historical experience and other factors, including expectations of future
● The Firm has no financial or other relationship of any kind with the Company except that of External Auditors.
events that are believed to be reasonable under current circumstances.
● All direct or indirect trading and holdings of Company’s shares by Directors & executives or their spouses were
notified in writing to the Company Secretary along with the price, number of shares, form of share certificates and
nature of transaction which were notified by the Company Secretary to the Board within the stipulated time. All such
holdings have been disclosed in the Pattern of Shareholdings. The Annual Secretarial Compliance Certificates are
being filed regularly within stipulated time. 18 November 2016 Mohammad Younus Sheikh
Islamabad. Chairman, Board Audit Committee
● Closed periods were duly determined and announced by the Company, precluding the Directors, the Chief Executive
and executives of the Company from dealing in Company shares, prior to each Board meeting involving
announcement of interim / final results, distribution to shareholders or any other business decision, which could
materially affect the share market price of Company, along with maintenance of confidentiality of all business
information.

REPORT OF THE AUDIT Internal Audit
● The internal control framework has been effectively implemented through an independent in-house Internal Audit
COMMITTEE ●
function established by the Board which is independent of the External Audit function.
The Company’s system of internal control is sound in design and has been continually evaluated for effectiveness and
adequacy.
The role of the Board Audit Committee in the context of the Board’s broader governance framework is to oversee:
● The integrity of Company’s financial statements;
● The Audit Committee has ensured the achievement of operational, compliance, risk management, financial reporting
● The appointment, remuneration, qualification, independence and performance of External Auditors;
and control objectives, safeguarding of the assets of the Company and the shareholders wealth at all levels within the
● Risk management and internal control arrangements;
Company.
● The performance of Internal audit function;
● Compliance with legal and regulatory requirements;
● The Internal Audit Department carried out independent audits in accordance with an internal audit plan which was
● Compliance by management with constraints imposed by Board.
approved by the Board Audit Committee. The Committee has reviewed material Internal Audit findings, taking
appropriate action or bringing the matters to the Board’s attention where required.
The Audit Committee has concluded its review of the conduct and operations of the Company during the year ended
June 30, 2016 and reports that:
● The Head of Internal Audit has direct access to the Chairman of the Board Audit Committee and the Committee has
ensured staffing of personnel with sufficient internal audit acumen and that the function has all necessary access to
● The Company has issued a “Statement of Compliance with the Code of Corporate Governance” which has also been
Management and the right to seek information and explanations.
reviewed and certified by the Auditors of the Company.
● During the year four Board Audit Committee meetings were held to ensure that the Audit Function effectively
● Understanding and compliance with Company’s code and policies has been affirmed by the Management and
performed its assigned task.
employees of the Company individually. The Company’s Code of Conduct has been disseminated and placed on
Company’s website.
● Coordination between the External and Internal Auditors was facilitated to ensure efficiency and contribution to the
Company’s objectives, including a reliable financial reporting system and compliance with laws and regulations.
● Appropriate accounting policies have been consistently applied. Applicable International Accounting Standards were
followed in preparation of financial statements of the Company on a going concern basis, for the financial year ended
External Auditors
30 June, 2016 which present fairly the state of affairs, results of operations, profits, cash flows and changes in equity
of the Company for the year under review.
● The statutory Auditors of the Company, KPMG Taseer Hadi & Co., Chartered Accountants, have completed their Audit
assignment of the “Company’s Financial Statements” and the “Statement of Compliance with the Code of Corporate
● The Chief Executive Officer and the Chief Financial Officer have endorsed the Financial Statements and Directors
Governance” for the financial year ended 30 June, 2016 and shall retire on the conclusion of the 23rd Annual General
Report. They acknowledge their responsibility for true and fair presentation of the Company’s financial condition and
Meeting.
results, compliance with regulations and applicable accounting standards and establishment and maintenance of
internal controls and systems of the Company.
● The Audit Committee has reviewed and discussed Audit observations and Audit Management Letter with the
External Auditors.
● Proper and adequate accounting records have been maintained by the Company in accordance with the Companies
Ordinance, 1984. The financial statements comply with the requirements of the Fourth Schedule to the Companies
● The Auditors have been allowed direct access to the Committee and the effectiveness, independence and objectivity
Ordinance, 1984 and the external reporting is consistent with Management processes and adequate for shareholder
of the Auditors has thereby been ensured. The Auditors attended the General Meeting of the Company during the
needs.
year and have indicated their willingness to continue as Auditors.
● The preparation of Financial Statements is in conformity with International Financial Reporting Standards as
● The Audit Committee has recommended the reappointment of KPMG Taseer Hadi & Co., Chartered Accountants, as
applicable in Pakistan and requires the use of certain critical accounting estimates. It also requires management to
External Auditors of the Company for the year ending 30 June 2017.
exercise its judgment in the process of applying the Company’s accounting policies. Estimates and judgments were
continually evaluated and are based on historical experience and other factors, including expectations of future
● The Firm has no financial or other relationship of any kind with the Company except that of External Auditors.
events that are believed to be reasonable under current circumstances.
● All direct or indirect trading and holdings of Company’s shares by Directors & executives or their spouses were
notified in writing to the Company Secretary along with the price, number of shares, form of share certificates and
nature of transaction which were notified by the Company Secretary to the Board within the stipulated time. All such
holdings have been disclosed in the Pattern of Shareholdings. The Annual Secretarial Compliance Certificates are
being filed regularly within stipulated time. 18 November 2016 Mohammad Younus Sheikh
Islamabad. Chairman, Board Audit Committee
● Closed periods were duly determined and announced by the Company, precluding the Directors, the Chief Executive
and executives of the Company from dealing in Company shares, prior to each Board meeting involving
announcement of interim / final results, distribution to shareholders or any other business decision, which could
materially affect the share market price of Company, along with maintenance of confidentiality of all business
information.

REVIEW REPORT TO THE AUDITORS' REPORT
MEMBERS ON STATEMENT OF TO THE MEMBERS
COMPLIANCE WITH THE BEST We have audited the annexed balance sheet of Bestway Cement Limited (“the Company”) as at 30 June 2016 and the
related profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in
PRACTICES OF THE CODE OF

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.
CORPORATE GOVERNANCE 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 have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate
Governance (“the Code”) prepared by the Board of Directors of Bestway Cement Limited (“the Company”) for the year We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that
ended 30 June 2016 to comply with the requirements of Listing Regulations of Pakistan Stock Exchange where the we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any
Company is listed. 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
The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility is to management, as well as, evaluating the overall presentation of the financial statements. We believe that our audit
review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects provides a reasonable basis for our opinion and, after due verification, we report that:
the status of the Company's compliance with the provisions of the Code and report and if it does not and to highlight any
non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the Company's personnel (a) in our opinion, proper books of account have been kept by the Company as required by the Companies Ordinance,
and review of various documents prepared by the Company to comply with the Code. 1984;
As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and (b) in our opinion:
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 opinion (i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in
on the effectiveness of such internal controls, the Company's corporate governance procedures and risks. 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, except for changes as stated in note 8 to the
The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit accompanying financial statements with which we concur;
Committee, place before the Board of Directors for their review and approval of its related party transactions
distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions (ii) the expenditure incurred during the year was for the purpose of the Company’s business; and
and transactions which are not executed at arm's length price and recording proper justification for using such alternate
pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of the approval (iii) the business conducted, investments made and the expenditure incurred during the year were in accordance
of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not with the objects of the Company;
carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or
not. (c) in our opinion and to the best of our information and according to the explanations given to us, the balance sheet,
profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance equity together with the notes forming part thereof conform with the approved accounting standards as applicable
does not appropriately reflect the Company's compliance, in all material respects, with the best practices contained in the in Pakistan, and give the information required by the Companies Ordinance, 1984, in the manner so required and
Code as applicable to the Company for the year ended 30 June 2016. respectively give a true and fair view of the state of the Company’s affairs as at 30 June 2016 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 Central Zakat Fund established under section 7 of that Ordinance.
KPMG Taseer Hadi & Co. KPMG Taseer Hadi & Co.
Islamabad: Chartered Accountants Islamabad: Chartered Accountants
18 November 2016 Atif Zamurrad Malik 18 November, 2016 Atif Zamurrad Malik

REVIEW REPORT TO THE AUDITORS' REPORT
MEMBERS ON STATEMENT OF TO THE MEMBERS
COMPLIANCE WITH THE BEST We have audited the annexed balance sheet of Bestway Cement Limited (“the Company”) as at 30 June 2016 and the
related profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in
PRACTICES OF THE CODE OF

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.
CORPORATE GOVERNANCE 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 have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate
Governance (“the Code”) prepared by the Board of Directors of Bestway Cement Limited (“the Company”) for the year We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These standards require that
ended 30 June 2016 to comply with the requirements of Listing Regulations of Pakistan Stock Exchange where the we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any
Company is listed. 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
The responsibility for compliance with the Code is that of the Board of Directors of the Company. Our responsibility is to management, as well as, evaluating the overall presentation of the financial statements. We believe that our audit
review, to the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects provides a reasonable basis for our opinion and, after due verification, we report that:
the status of the Company's compliance with the provisions of the Code and report and if it does not and to highlight any
non-compliance with the requirements of the Code. A review is limited primarily to inquiries of the Company's personnel (a) in our opinion, proper books of account have been kept by the Company as required by the Companies Ordinance,
and review of various documents prepared by the Company to comply with the Code. 1984;
As a part of our audit of the financial statements we are required to obtain an understanding of the accounting and (b) in our opinion:
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 opinion (i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in
on the effectiveness of such internal controls, the Company's corporate governance procedures and risks. 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, except for changes as stated in note 8 to the
The Code requires the Company to place before the Audit Committee, and upon recommendation of the Audit accompanying financial statements with which we concur;
Committee, place before the Board of Directors for their review and approval of its related party transactions
distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions (ii) the expenditure incurred during the year was for the purpose of the Company’s business; and
and transactions which are not executed at arm's length price and recording proper justification for using such alternate
pricing mechanism. We are only required and have ensured compliance of this requirement to the extent of the approval (iii) the business conducted, investments made and the expenditure incurred during the year were in accordance
of the related party transactions by the Board of Directors upon recommendation of the Audit Committee. We have not with the objects of the Company;
carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or
not. (c) in our opinion and to the best of our information and according to the explanations given to us, the balance sheet,
profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance equity together with the notes forming part thereof conform with the approved accounting standards as applicable
does not appropriately reflect the Company's compliance, in all material respects, with the best practices contained in the in Pakistan, and give the information required by the Companies Ordinance, 1984, in the manner so required and
Code as applicable to the Company for the year ended 30 June 2016. respectively give a true and fair view of the state of the Company’s affairs as at 30 June 2016 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 Central Zakat Fund established under section 7 of that Ordinance.
KPMG Taseer Hadi & Co. KPMG Taseer Hadi & Co.
Islamabad: Chartered Accountants Islamabad: Chartered Accountants
18 November 2016 Atif Zamurrad Malik 18 November, 2016 Atif Zamurrad Malik

CSR AND INAUGURATION OF BESTWAY FOUNDATION
SCHOOL CHAKWAL
ORGANISATIONAL
A C T I V I T I E S
Bestway Foundation has established a Bestway Foundation School at Tat village near Bestway Cement Chakwal plant to
provide quality education to the local community.
BESTWAY
FOUNDATION
ACTTIVITIES

MEDICAL AWARENESS SESSION FIRE FIGHTING DAY
SCHOLARSHIP CHEQUES
DISTRIBUTION CERMONY
FIRE & SAFETY TRAINING AWARDS

DISTRIBUTION
BCL Hattar won the Fire & Safety Award 2016 organized by National Forum for Environment and Health in April 2016.
Scholarship cheques received from Mine Welfare Board KPK have been delivered by Mr. Ijaz Ahmad Malik
GM (W) to employees of Mining Department on 13-07-2016 at CCR Conference Room.
Some photographs taken on the occasion are attached for your information please.

MEDICAL AWARENESS SESSION FIRE FIGHTING DAY
SCHOLARSHIP CHEQUES
DISTRIBUTION CERMONY
FIRE & SAFETY TRAINING AWARDS

DISTRIBUTION
BCL Hattar won the Fire & Safety Award 2016 organized by National Forum for Environment and Health in April 2016.
Scholarship cheques received from Mine Welfare Board KPK have been delivered by Mr. Ijaz Ahmad Malik
GM (W) to employees of Mining Department on 13-07-2016 at CCR Conference Room.

HOUSE KEEPING DAY TVC LAUNCH
Bestway Cement Limited is the largest cement producer of the industry, setting trends and new benchmarks for others to
follow. Innovation is the key to our success; we are the custodians of the best in the market. Having introduced a wide
array of products, Bestway Cement Limited, believes in educating its clientele through clear messaging. A 360 degree
campaign was recently launched stating “Roshan Pakistan ki mazboot bunyad… Aik naye jazba e tameer kay saath”. Smart
mediums were selected to disseminate this powerful message, promoting nationalism and unity. Bestway TVC was well
received by the targeted audience and opinion leaders likewise.
Housekeeping / Cleaning of Plant was carried out on 20-05-2016 from 0900 AM to 1000 AM. All the departments
participated and completed the assigned task successfully.
DISTRIBUTORS' ENGAGEMENT &

IFTAR DINNERS

HOUSE KEEPING DAY TVC LAUNCH
Bestway Cement Limited is the largest cement producer of the industry, setting trends and new benchmarks for others to
follow. Innovation is the key to our success; we are the custodians of the best in the market. Having introduced a wide
array of products, Bestway Cement Limited, believes in educating its clientele through clear messaging. A 360 degree
campaign was recently launched stating “Roshan Pakistan ki mazboot bunyad… Aik naye jazba e tameer kay saath”. Smart
mediums were selected to disseminate this powerful message, promoting nationalism and unity. Bestway TVC was well
received by the targeted audience and opinion leaders likewise.
Housekeeping / Cleaning of Plant was carried out on 20-05-2016 from 0900 AM to 1000 AM. All the departments
participated and completed the assigned task successfully.
DISTRIBUTORS' ENGAGEMENT &

IFTAR DINNERS

FINANCIAL
STATEMENTS
FINANCIAL
STATEMENTS
BALANCE SHEET
AS AT 30 JUNE 2016
30 June 30 June 01 July

2016 2015 2014
Note (Rupees '000) (Rupees '000) (Rupees '000)
(Restated) (Restated)
SHARE CAPITAL AND RESERVES
Issued, subscribed and paid up share capital 9 5,793,849 5,793,849 5,793,849

Shares to be issued pursuant to amalgamation 10 168,679 - -
Share premium 11 5,381,821 3,225,770 3,225,770
Exchange translation reserve 1,102,338 1,111,398 1,069,489
Surplus on revaluation of available for sale investments 1,362,489 1,635,266 202,138
Unappropriated profit 28,174,199 22,149,923 18,283,450
Equity attributable to owners of the Company 41,983,375 33,916,206 28,574,696
Non-controlling interests 44 - 2,526,837 -
Total equity 41,983,375 36,443,043 28,574,696
NON CURRENT LIABILITIES
Long term financing 12 9,900,000 14,498,584 -

Long term musharaka 13 6,600,000 8,800,000 -
Long term advances - 1,996 5,988
Deferred liabilities 14 9,602,355 7,620,488 5,349,783
26,102,355 30,921,068 5,355,771
CURRENT LIABILITIES
Trade and other payables 15 7,047,658 6,131,988 4,899,142

Mark-up accrued 246,088 437,229 12,324
Short-term borrowings 16 2,440,678 2,052,863 2,373,832
Current portion of long term financing 12 - 2,675,000 -
Current portion of long term musharaka 13 - 1,200,000 -
Provision for taxation - net - - 160,738
9,734,424 12,497,080 7,446,036
77,820,154 79,861,191 41,376,503

- - -
CONTINGENCIES AND COMMITMENTS 17
The annexed notes 1 to 51 form an integral part of these financial statements.
34 Annual Report 2016

BALANCE SHEET
AS AT 30 JUNE 2016

2016 2015 2014
NON CURRENT ASSETS
Property, plant and equipment 18 42,955,029 43,448,134 24,224,368

Intangible assets and goodwill 19 11,022,747 12,962,557 32,374
Investment property 20 350,538 345,905 345,785
Long term investment 21 11,592,746 10,983,221 8,444,561
Long term advances - 14,333 8,006
Long term deposits 22 134,473 133,482 90,323
66,055,533 67,887,632 33,145,417
CURRENT ASSETS
Stores, spares parts and loose tools 23 6,045,626 4,223,925 4,044,671

Stock in trade 24 1,452,357 2,718,225 1,932,612
Trade debts 25 1,175,809 862,701 571,981
Advances 26 861,913 443,745 400,784
Deposits and prepayments 27 61,570 65,731 21,518
Other receivables 28 147,084 135,856 2,523
Advance tax - net 1,022,559 308,890 -
Due from Government agencies 29 615,146 726,554 1,040,735
Cash and bank balances 30 382,557 2,487,932 216,262
11,764,621 11,973,559 8,231,086
77,820,154 79,861,191 41,376,503
Bestway Cement Limited 35

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2016
2016 2015
Note (Rupees '000) (Rupees '000)
(Restated)
Turnover - net 31 45,721,040 32,693,050

Cost of sales 32 (24,573,384) (19,900,086)
Gross profit 21,147,656 12,792,964
Administrative expenses 33 (2,463,969) (755,012)

Distribution costs 34 (1,176,860) (811,078)
Other expenses 35 (890,963) (766,598)
Finance costs 36 (1,822,500) (456,928)
Other income 37 172,795 116,669
(6,181,497) (2,672,947)
14,966,159 10,120,017
Share of profit of associated company, net of tax 21 2,111,835 1,947,751
Profit before taxation 17,077,994 12,067,768
Taxation 38 (5,197,577) (2,446,950)
Profit for the year 11,880,417 9,620,818
Profit attributable to:

Owners of the Company 11,853,178 9,593,996
Non-controlling interests 44 27,239 26,822
11,880,417 9,620,818
Earnings per share - basic and diluted 39 20.16 16.56

STATEMENT OF COMPREHENSIVE INCOME
2016 2015
(Restated)
Profit for the year 11,880,417 9,620,818
Items that will never be reclassified to profit or loss

Experience adjustment on defined benefit liability 14.2 (26,025) (8,370)
Related tax effect 6,956 2,305
(19,069) (6,065)
Company's share of associate's:
Re-measurement of defined benefit liability 21.2.2 (15,971) 80,433
Related tax effect (14) (8,043)
(15,985) 72,390
(35,054) 66,325
Items that are or may be reclassified subsequently to profit or loss
Foreign operations - foreign currency translation differences 21.2.2 (9,060) 41,909
Available-for-sale financial assets - net change in fair value 21.2.2 (259,832) 1,592,365
Related tax effect (12,945) (159,237)
(281,837) 1,475,037
Other comprehensive income, net of tax (316,891) 1,541,362
Total comprehensive income for the year 11,563,526 11,162,180
Total comprehensive income attributable to:

Owners of the Company 11,536,287 11,135,358
Non-controlling interests 44 27,239 26,822
11,563,526 11,162,180

Attributable to owners of the Company Non-Controlling Total equity
Capital reserves Revenue reserve Interests (NCI)
Issued, subscribed Shares to be Share premium Exchange Surplus on Unappropriated Total
and paid up share issued pursuant to translation revaluation of profit
capital amalgamation reserve available for sale
investments
-------------------------- (Rupees '000) ------------------------------
Balance at 01 July 2014, as previously reported 5,793,849 - 3,225,770 - - 13,524,545 22,544,164 - 22,544,164
Effect of retrospective change in equity accounting for
associates - - - 1,069,489 202,138 4,758,905 6,030,532 - 6,030,532
Restated balance at 01 July 2014 5,793,849 - 3,225,770 1,069,489 202,138 18,283,450 28,574,696 - 28,574,696
Total comprehensive income (restated)

Profit for the year - - - - - 9,593,996 9,593,996 26,822 9,620,818
Other comprehensive income - - - 41,909 1,433,128 66,325 1,541,362 - 1,541,362
Total comprehensive income (restated) - - - 41,909 1,433,128 9,660,321 11,135,358 26,822 11,162,180

Transactions with owners of the Company
Distributions
Dividend - Final 2014 @ Rs. 2.5 per share - - - - - (1,448,462) (1,448,462) - (1,448,462)
Dividends - Interim 2015 @ Rs. 7.5 per share - - - - - (4,345,386) (4,345,386) - (4,345,386)
Total distributions - - - - - (5,793,848) (5,793,848) - (5,793,848)
Changes in ownership interests (restated)
Acquisition of Pakcem with NCI (note 43) - - - - - - - 2,500,015 2,500,015
Total transactions with owners of the Company - - - - - (5,793,848) (5,793,848) 2,500,015 (3,293,833)
Restated balance at 30 June 2015 5,793,849 - 3,225,770 1,111,398 1,635,266 22,149,923 33,916,206 2,526,837 36,443,043
- - - - - - - -
Restated balance at 01 July 2015 5,793,849 - 3,225,770 1,111,398 1,635,266 22,149,923 33,916,206 2,526,837 36,443,043
Total comprehensive income

Profit for the year - - - - - 11,853,178 11,853,178 27,239 11,880,417
Other comprehensive income - - - (9,060) (272,777) (35,054) (316,891) - (316,891)
Total comprehensive income - - - (9,060) (272,777) 11,818,124 11,536,287 27,239 11,563,526
Transactions with owners of the Company

Distributions
Dividend - Final 2015 @ Rs. 2.5 per share - - - - - (1,448,462) (1,448,462) - (1,448,462)
Dividends - Interim 2016 @ Rs. 7.5 per share - - - - - (4,345,386) (4,345,386) - (4,345,386)
Total distributions - - - - - (5,793,848) (5,793,848) - (5,793,848)
Changes in ownership interests
Shares to be issued pursuant to amalgamation (note 10) - 168,679 2,156,051 - - - 2,324,730 - 2,324,730
Dividend paid by Pakcem to NCI (42,941) (42,941)
Acquisition of NCI (note 44) - - - - - (2,511,135) (2,511,135)
Total transactions with owners of the Company - 168,679 2,156,051 - - (5,793,848) (3,469,118) (2,554,076) (6,023,194)
Balance at 30 June 2016 5,793,849 168,679 5,381,821 1,102,338 1,362,489 28,174,199 41,983,375 - 41,983,375
STATEMENT OF CHANGES IN EQUITY
- - - - - - - -
The annexed notes 1 to 51 form an integral part of these financial statements. -
CASH FLOW STATEMENT
2016 2015
(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 17,077,994 12,067,768
Adjustments for:
Gain on disposal of property, plant and equipment 37 (8,427) (12,347)
Depreciation 18.1.3 1,966,331 1,325,784
Property, plant and equipment-written off 183,347 -
Amortisation 19.1.4 1,753,404 340,252
Rental income from investment property 37 (27,051) (26,705)
Profit on deposit accounts 37 (125,241) (66,553)
Due from government agencies written off 33 40,102 -
Provision for impairment of investment 33 22,409 -
Provision for doubtful debts 33 1,335 -
Other advances and receivables written off 33 82,868 -
Provision for stamp duty 33 12,430 -
Provision for obsolete spare parts 23.1 3,932 -
Provision for slow moving stock 24.2 28,235 -
Gain on re-measurement of investment property to fair value 37 (4,633) (120)
Finance cost 36 1,822,500 456,928
Share of profit of equity-accounted investment, net of tax 21.2.2 (2,111,835) (1,947,751)
Provision for staff retirement benefits 57,998 53,292
3,697,704 122,780
20,775,698 12,190,548
Working capital changes:
Changes in:
Stores, spares parts and loose tools (1,825,633) 822,895
Stock in trade 1,237,633 718,502
Trade debts (314,443) (164,133)
Advances (501,036) 48,098
Deposits and prepayments 4,161 (15,075)
Other receivables (14,306) (28,798)
Due from government agencies 71,306 314,181
Trade and other payables 1,922,422 (1,918,039)
580,104 (222,369)
Cash generated from operations 21,355,802 11,968,179
Long term advances - net 12,337 11
Long term deposits - net (991) 42,240
Finance cost paid (2,013,641) (249,363)
Staff retirement benefits paid (23,483) (25,739)
Income tax paid (3,995,921) (1,976,577)
Net cash from operating activities 15,334,103 9,758,751
CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment (1,662,920) (1,476,026)
Proceeds from sale of property, plant and equipment 18.1.2 14,774 26,593
Acquisition of interest in jointly venture 21.1 (22,409) -
Cash paid on acquisition of subsidiary less cash and bank balances acquired - (25,806,342)
Rent received from investment property 25,554 27,054
Dividend received from associates 21.2.2 1,217,447 1,123,798
Profit on deposit accounts received 128,319 64,528
Net cash used in investing activities (299,235) (26,040,395)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from long term financing 12 - 15,000,000
Proceeds from long term musharaka 13 - 10,000,000
Repayment of long term financing 12 (7,273,584) (437,500)
Repayment of long term musharaka 13 (3,400,000) -
Dividends paid (6,811,533) (5,172,357)
Dividends paid to NCI 44 (42,941) -
Net cash (used in)/generated from financing activities (17,528,058) 19,390,143
Net (decrease)/ increase in cash and cash equivalents (2,493,190) 3,108,499

Cash and cash equivalents at beginning of the year - restated 45 435,069 (2,157,570)
Short term borrowings acquired as part of business combination 43.3 - (515,860)
Cash and cash equivalents at end of the year 45 (2,058,121) 435,069
- -

NOTES TO THE FINANCIAL STATEMENTS
1. THE COMPANY AND ITS OPERATIONS
1.1 Bestway Cement Limited (“the Company”) is a public limited company incorporated in Pakistan on 22 December 1993 under the
Companies Ordinance, 1984 and is listed on the Pakistan Stock Exchange Limited (previously Karachi Stock Exchange Limited)
since 09 April 2001. The Company is principally engaged in production and sale of cement. Its registered office is at Bestway
Building, 19-A, College Road, F-7 Markaz, Islamabad. The Company is a subsidiary of Bestway (Holdings) Limited, which holds
55.35% shares in the Company.
1.2 Amalgamation of Pakcem Limited with the Company
Pakcem Limited (“Pakcem”), formerly known as Lafarage Pakistan Cement Limited (”LPCL”), was incorporated on 23 May 1993 as
a private limited company and was subsequently converted into a public limited company, on 18 October 1994, under the
Companies Ordinance, 1984. The principal activity of Pakcem is the production and sale of cement.
On 22 April 2015, the Company assumed management control of Pakcem pursuant to the Company’s successful bid for 75.86%
of LPCL’s shares for an enterprise value of USD 329 million in July 2014 and acquisition of another 12.07% shares through the
public offer process. As a result, Pakcem became a subsidiary of the Company during the financial year ended 30 June 2015.
During the year, a scheme of arrangement for amalgamation of Pakcem with the Company (“the Scheme”) was approved by the
Board of Directors of both companies through resolutions dated 07 April 2016. The scheme was approved by the members of
both companies in their respective Extraordinary General Meetings held on 04 May 2016. The Scheme was sanctioned by the
Honorable High Court of Islamabad on 18 August 2016 with the Appointed Date of 31 December 2015 for the transfer of assets
and liabilities of Pakcem to the Company.
The Scheme envisages amalgamation by:
 Issuance of 1 ordinary share of Rs. 10 each of the Company for 10 shares of Pakcem to the shareholders of Pakcem in
consideration of vesting of Pakcem in the Company within ninety days from the Effective Date i.e. the date of filing of the
Court Order with the Joint Registrar of Companies, Islamabad.
 On the Effective Date, Pakcem shall together with all assets and liabilities of every description as subsisting on the
Appointed Date, pursuant to the provisions contained in Section 287 of the Companies Ordinance, 1984, without any
further act, deed, matter, or thing, be and same shall be deemed to have been transferred to and be transferred to be
vested in the Company. Further assets and liabilities of Pakcem as at the Appointed Date shall be and deemed to be
transferred to the Company at the values to be determined in accordance with the approved accounting standards in
Pakistan.
Pursuant to the Scheme and in accordance with the substance of series of transactions i.e., acquisition of Pakcem and
subsequent merger with the Company, management believes that continuation of acquisition accounting in accordance with
the requirements of International Financial Reporting Standard 3 ‘Business Combinations’ is appropriate to present the
amalgamation. Consequently, the acquisition of Pakcem has therefore been accounted for in these financial statements from 22
April 2015 (“Date of Acquisition”) being the date on which the Company assumed management control of Pakcem.
Detail of net identifiable assets acquired and liabilities assumed and the resulting goodwill at the date of acquisition is given in
note 43. Detail of subsequent acquisition of Non-controlling interests (“NCI”) is given in note 44.

1.3 Contemplated acquisition of shares of UBL Insurers Limited
The Company is in process of acquiring of 14,091,087 ordinary shares of Rs. 10 each representing 12.23% in UBL Insurers Limited
(“UIL”) currently held by the Abu Dhabi Group. The price has been negotiated between the Company and the Abu Dhabi Group
and the Share Purchase Agreement (“SPA”) is in process of approval. Currently, Bestway (Holdings) Limited and United Bank
Limited, associated companies of the Company jointly hold 85.60% of the shares in UIL along with management control. The
proposed transaction is subject to formal approval from the Competition Commission of Pakistan.
2. INDIVIDUAL FINANCIAL STATEMENTS
As stated in note 1.2, the acquisition of Pakcem has been accounted for effective 22 April 2015. Accordingly, the consolidated
financial statements are no longer required and the status of the Company’s separate financial statements has been changed to
individual financial statements. Consequently, investment in associate is now accounted for using equity method as required
under IAS 28 ‘Investments in Associates and Joint Ventures’. This investment was previously carried at cost in the Company’s
separate financial statements.
Comparative figures have been restated for the effects of this change. Comparative figures have also been restated to include
the financial results of Pakcem for the period from 22 April 2015 to 30 June 2015 and related balances at 30 June 2015.
Previously, investment in Pakcem was carried at cost in the Company’s separate financial statements.
Other than the above and the changes explained in note 43.3 relating to adjustments in net assets acquired, the comparative
figures in these financial statements reflect the amounts presented in the Company’s consolidated financial statements for the
year ended 30 June 2015.
3. STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with the approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of or the directives
issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies
Ordinance, 1984 shall prevail.
The applicable financial reporting framework for banks also includes the Banking Companies Ordinance, 1962 and the
provisions of and directives issued by the State Bank of Pakistan.
4. BASIS OF MEASUREMENT
These financial statements have been prepared on the historical cost basis, except for the following items:
- Investment property has been measured at fair value;

- Liability related to staff retirement benefits are measured at values determined through actuarial valuation.
5. FUNCTIONAL AND PRESENTATION CURRENCY
These financial statements are presented in Pak Rupees, which is the Company’s functional currency. Figures have been
rounded off to the nearest thousand of Rupee unless otherwise stated.

6. USE OF JUDGMENTS AND ESTIMATES
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the
application of the Company’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual
results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
estimates are recognised prospectively.
The areas where various assumptions and estimates are significant to the Company’s financial statements or where judgment
was exercised in application of accounting policies are as follows:
Note 14.2 – Measurement of defined benefit obligation – key actuarial assumptions

Note 19.1.3 – Impairment test – key assumptions underlying recoverable amounts
Notes 17, 38.2 and 38.3 – Contingencies including tax related contingencies: key assumptions about the likelihood and
magnitude of an outflow of resources
Note 43 – Acquisition of subsidiary – fair values measurement
Note 20 – Investment property
Note 42 – Financial instruments
Note 18 – Useful lives of property, plant and equipment
Note 19 – Recognition, measurement and useful life of intangible assets
Notes 23 and 24 – Provision for inventory obsolescence
Note 25 – Provision for doubtful debts
Note 38 – Provision for income tax
7. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO THE 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 2016:
 Amendments to IAS 38 Intangible Assets and IAS 16 Property, Plant and Equipment (effective for annual periods
beginning on or after 1 January 2016) introduce severe restrictions on the use of revenue-based amortisation for
intangible assets and explicitly state that revenue-based methods of depreciation cannot be used for property, plant and
equipment. The rebuttable presumption that the use of revenue-based amortisation methods for intangible assets is
inappropriate can be overcome only when revenue and the consumption of the economic benefits of the intangible asset
are ‘highly correlated’, or when the intangible asset is expressed as a measure of revenue. The amendments are not likely
to have an impact on the Company’s financial statements.
 Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10 – Consolidated Financial Statements
and IAS 28 – Investments in Associates and Joint Ventures) [effective for annual periods beginning on or after 1 January
2016] clarifies (a) which subsidiaries of an investment entity are consolidated; (b) exemption to present consolidated
financial statements is available to a parent entity that is a subsidiary of an investment entity; and (c) how an entity that is
not an investment entity should apply the equity method of accounting for its investment in an associate or joint venture
that is an investment entity. The amendments are not likely to have an impact on the Company’s financial statements.
 Accounting for Acquisitions of Interests in Joint Operations – Amendments to IFRS 11 ‘Joint Arrangements’ (effective for
annual periods beginning on or after 1 January 2016) clarify the accounting for the acquisition of an interest in a joint
operation where the activities of the operation constitute a business. They require an investor to apply the principles of
business combination accounting when it acquires an interest in a joint operation that constitutes a business. The
amendments are not likely to have an impact on the Company’s financial statements.

 Amendment to IAS 27 ‘Separate Financial Statements’ (effective for annual periods beginning on or after 1 January 2016)
allows entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their
separate financial statements. The amendment is not likely to have an impact on the Company’s financial statements.
 Agriculture: Bearer Plants [Amendment to IAS 16 and IAS 41] (effective for annual periods beginning on or after 1 January
2016). Bearer plants are now in the scope of IAS 16 Property, Plant and Equipment for measurement and disclosure
purposes. Therefore, a company can elect to measure bearer plants at cost. However, the produce growing on bearer
plants will continue to be measured at fair value less costs to sell under IAS 41 Agriculture. A bearer plant is a plant that: is
used in the supply of agricultural produce; is expected to bear produce for more than one period; and has a remote
likelihood of being sold as agricultural produce. Before maturity, bearer plants are accounted for in the same way as
self-constructed items of property, plant and equipment during construction. The amendments are not likely to have an
impact on the Company’s financial statements.
 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 are not likely to have an
impact on the 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
recognised for new and outstanding awards. The amendments are not likely to have an impact on the Company’s financial
statements.
 Annual Improvements 2012-2014 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:
- IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’. IFRS 5 is amended to clarify that if an entity
changes the method of disposal of an asset (or disposal group) i.e. reclassifies an asset from held for distribution to
owners to held for sale or vice versa without any time lag, then such change in classification is considered as
continuation of the original plan of disposal and if an entity determines that an asset (or disposal group) no longer
meets the criteria to be classified as held for distribution, then it ceases held for distribution accounting in the same
way as it would cease held for sale accounting.
- IFRS 7 ‘Financial Instruments- Disclosures’. IFRS 7 is amended to clarify when servicing arrangements on continuing
involvement in transferred financial assets in cases when they are derecognised in their entirety are in the scope of its
disclosure requirements. IFRS 7 is also amended to clarify that additional disclosures required by ‘Disclosures:
Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS 7)’ are not specifically required for inclusion
in condensed interim financial statements for all interim periods.

- IAS 19 ‘Employee Benefits’. IAS 19 is amended to clarify that high quality corporate bonds or government bonds used
in determining the discount rate should be issued in the same currency in which the benefits are to be paid.
- IAS 34 ‘Interim Financial Reporting’. IAS 34 is amended to clarify that certain disclosures, if not included in the notes
to interim financial statements and disclosed elsewhere, should be cross referred.
The above amendments are not likely to have an impact on the company’s financial statements.
8. SIGNIFICANT ACCOUNTING POLICIES
The Company has consistently applied the following accounting policies to all periods presented in these financial statements,
except for the following changes.
 IFRS 10 ‘Consolidated Financial Statements’ became effective from financial periods beginning on or after 01 January
2015. As a result of IFRS 10, the Company has changed its accounting policy for determining whether it has control over
and consequently whether it consolidates its investees. IFRS 10 introduces a new control model that focuses on whether
the Parent Company has power over an investee, exposure or rights to variable returns from its involvement with the
investee and ability to use its power to affect those returns. The Company reassessed the control conclusion for its
investees at 01 July 2015, however, there has been no change in the control conclusion.
 IFRS 12 ‘Disclosure of Interest in Other Entities’ became effective from financial periods beginning on or after 01 January
2015. As a result of IFRS 12, the Company has expanded its disclosures about interests in associates, jointly controlled
entities and subsidiaries.
 IFRS 13 ‘Fair Value Measurement’ became effective from financial periods beginning on or after 01 January 2015. IFRS 13
establishes a single framework for measuring fair value and making disclosures about fair value measurements when such
measurements are required or permitted by other IFRSs. It unifies the definition of fair value as a 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. It replaces and expands the disclosure requirements about fair value measurements in other IFRSs,
including IFRS 7. The application of IFRS 13 does not have any impact on the financial statements of the Company except
for certain additional disclosures.
8.1 Business combinations
The Company accounts for business combination using the acquisition method when control is transferred to the Company. The
consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any
goodwill that arises is tested annually for impairment. Any gain on bargain purchase is recognised in profit or loss immediately.
Transaction costs are expensed as incurred. The consideration transferred does not include amounts related to the settlement
of pre-existing relationships. Such amounts are generally recognised in profit or loss. Any contingent gain is measured at fair
value at the date of acquisition. If an obligation to pay contingent consideration that meets the definition of a financial
instrument is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise,
subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.
Subsidiaries
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to,
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control
commences until the date on which control ceases.

Non-controlling interests (NCI)
NCI are measured at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Changes in the
Company’s interest in a subsidiary, except those part of the initial acquisition transaction (see note 44.1), that do not result in a
loss of control are accounted for as equity transactions.
Loss of control
When the Company loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related
NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former
subsidiary is measured at fair value when control is lost.
Interests in equity-accounted investees
The Company’s interests in equity-accounted investees comprise of interests in an associate and a joint venture.
Associates are those entities in which the Company has significant influence, but not control over the financial and operating
policies. A joint venture is an arrangement in which the Company has joint control, whereby the Company has rights to the net
assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in associates and the joint venture are accounted for using the equity method. They are initially recognised at cost,
which includes transaction costs. Subsequent to initial recognition, the financial statements include the Company’s share of the
profit or loss and other comprehensive income of the equity-accounted investee, until the date on which significant influence
or joint control ceases.
Inter-company transactions
Intra-company balances and transactions, and any unrealized income and expenses arising from intra-company transactions,
are eliminated. Unrealized gains arising from transactions with equity accounted investees are eliminated against the
investment to the extent of the Company’s interest in the investee. Unrealized losses are eliminated in the same way as
unrealized gains, but only to the extent that there is no evidence of impairment.
8.2 Employee benefits
Defined contribution plan
The Company operates an approved contributory provident fund for all its employees whose services were transferred to the
Company upon amalgamation of Pakcem. Equal monthly contributions are made to the fund by the Company and the
employees, at the rate of 10% of the employee’s basic salary. The Company’s contribution to the provident fund are expenses as
the related service is provided. Prepaid contributions are recognised as asset to the extent that a cash refund or a reduction in
future payment is available.
Defined benefit plans
The Company operates the following defined benefit plans:
Gratuity: The Company maintains an unfunded gratuity scheme for all its eligible employees. The employees transferred to the
Company on the amalgamation of Pakcem into the Company are not covered under this scheme. The calculation of defined

benefit obligations in respect of gratuity is performed annually by a qualified actuary using the projected unit current method.
The Company’s net obligation in respect of defined benefit plans 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.
Re-measurement of the net defined benefit liability, which comprises actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other
Comprehensive Income (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 the 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 benefits payments. Net interest expense and other expenses related
to defined benefit plan is recognised in profit or loss.
Compensated absences: The Company recognises provision for compensated absences on an undiscounted basis and are
expensed as the related services are provided. A liability is recognised for the amount expected to be paid under compensated
absences if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided
by the employee, and the obligation can be estimated reliably. The compensated absences are payable to employees at the time
of retirement/termination of service. The provision is determined on the basis of last drawn salary and accumulated leaves
balance at the reporting date.
8.3 Income tax
Income tax expense comprises current and deferred tax. Income tax is recognised in profit or loss except to the extent that it
relates to a business combination or items recognised directly in equity or in Other Comprehensive Income (OCI).
Current tax: Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the
best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is
measured using tax rates enacted or substantially enacted at the reporting date. Current tax also includes any tax arising from
dividends.
Current tax assets and liabilities are offset if certain criteria are met.
Deferred tax: Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
 Temporary differences on initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit or loss;
 Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the
Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not
reverse in the foreseeable future; and
 Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the
extent it is probable that future taxable profits will be available against which they can be used. Future taxable profits are
determined based on business plans for the Company. Deferred tax assets are reviewed at each reporting date and are

reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed
when the probability of future taxable profits improves. Unrecognised deferred tax assets are reassessed at each reporting
date and recognised to the extent that it has become probable that future taxable profits will be available against which
they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse,
using tax rates enacted or substantially enacted at the reporting date. The measurement of deferred tax reflects the tax
consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities. For this purpose, the carrying amount of investment property
measured at fair value is presumed to be recovered through sale, and the Company has not rebutted this assumption.
Deferred tax assets and liabilities are offset if certain criteria are met.
8.4 Provisions
A provision is recognised in the balance sheet when the Company has a legal or constructive obligation as a result of a past
event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax
discount rate that reflects current market assessment of time value of money and risk specific to the liability. The unwinding of
discount is recognised as finance cost.
8.5 Borrowing costs
Mark-up, interest and other charges on borrowings used for the acquisition and construction of qualifying assets are capitalized
up to the date when the qualifying assets are substantially ready for their intended use. Borrowing cost is included in the related
property, plant and equipment acquired/constructed out of the proceeds of such borrowings. All other markup, interest and
related charges are charged to the profit or loss in the period in which they are incurred.
8.6 Property, Plant and Equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment
losses. Freehold land and capital work in progress are stated at cost less any accumulated impairment losses. If significant parts
of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is
recognised in profit or loss.
Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure
will flow to the Company.
Depreciation is charged to income applying the reducing balance method except leasehold land, buildings and plant and
machinery which are depreciated on a straight-line basis. Leased assets are depreciated over the shorter of the leased term and
their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Freehold
land is not depreciated. Rates of depreciation/estimated useful lives are mentioned in note 18.1. Depreciation is charged on
prorate basis from the month in which an asset is acquired or capitalized, while no depreciation is charged for the month in
which the asset is disposed off. Days in excess of fifteen days are considered as full month for the purpose of calculation of
depreciation.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

8.7 Intangible assets and goodwill
Goodwill: Goodwill arising on the acquisition of subsidiaries is measured at cost less any accumulated impairment losses.
Other intangible assets: Other intangible assets including operational benefits, brands that are acquired by the Company and
have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses.
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in
profit or loss as incurred.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line
method over their estimated useful lives, and is generally recognised in profit or loss. The estimated useful lives of intangible
assets are given in note 19.1.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
8.8 Investment property
Investment property is initially measured at cost and subsequently at fair value with any change therein recognised in profit or
loss. Any gain or loss on disposal of investment property (calculated as the difference between the net proceeds from disposal
and the carrying amount of the item) is recognised in profit or loss.
8.9 Impairment
Financial assets: Financial assets not classified at fair value through profit or loss, including an interest in equity-accounted
investee, are assessed at each reporting date to determine whether there is objective evidence of impairment.
Objective evidence that financial assets are impaired includes default or delinquency by a debtor, restructuring of an amount
due to the Company on the terms that the Company would not consider otherwise and indication that a debtor will enter
bankruptcy.
For an investment in an equity security, objective evidence of impairment includes significant or prolonged decline in its fair
value below its cost. For financial assets measured at amortised cost, the Company considers evidence of impairment for these
assets at both an individual asset and a collective level. All individually significant assets are assessed for impairment. Those
found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet individually
identified. Assets that are not individually significant are collectively assessed for impairment. Collective assessment is carried
out by grouping together assets with similar risk characteristics.
In assessing collective impairment, the Company uses historical information on the timing of recoveries and the amount of loss
incurred, and makes an adjustment if current economic and credit conditions are such that the actual losses are likely to be
greater or lesser than suggested by historical trends.
An impairment loss is calculated as the difference between an asset’s carrying amount and the present value of the estimated
future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit and loss account and
reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset,
the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is
reversed through profit or loss.

Non-financial assets: At each reporting date, the Company reviews the carrying amount of its non-financial assets (other than
investment property, inventories and deferred tax assets) to determine whether there is any indication of impairment. If any
such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows of other assets or Cash Generating Units (CGUs). Goodwill
arising from a business combination is allocated to CGUs or groups that are expected to benefit from the synergies of the
combination.
The recoverable amount of an asset or CGU is greater of its value in use and its fair value less costs to sell. Value in use is based
on the estimated future cash flows, discounted to their present value 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 CGU. An impairment loss is recognised if the
carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amounts of any goodwill
allocated to CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss
in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
8.10 Foreign currency
Foreign currency transactions: Transactions in foreign currency are recorded at the exchange rates prevailing on the date of
transactions. All monetary assets and liabilities denominated in foreign currencies at the year-end are translated in Pak Rupees
at exchange rates ruling on the balance sheet date and exchange differences are charged to income for the year. Foreign
currency gains and losses are reported on a net basis.
Foreign operations: The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to Pak Rupees at exchange rates at the reporting date. The income and expenses of foreign
operations are translated to Pak Rupees at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation
reserve in equity. When a foreign operation is disposed off in its entirety or partially such that control, significant influence is lost,
the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the
gain or loss on disposal. When the Company disposes off only part of its investment in an associate that includes a foreign
operation while retaining significant influence, the relevant proportion of the cumulative amount is reclassified to profit or loss.
8.11 Stores, spare parts and loose tools
Stores, spare parts and loose tools are valued at lower of weighted average cost and net realizable value. For items which are
slow moving and / or identified as surplus to the Company’s requirements, adequate provision is made for any excess book
value over estimated net realizable value. The Company reviews the carrying amount of stores, spare parts and loose tools on a
regular basis and provision is made for obsolescence.
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.

8.12 Stock in trade
Stocks of raw materials, work in process and finished goods are valued at the lower of weighted average cost and net realizable
value. Cost of raw materials, work in process and finished goods comprises of direct materials, labor and appropriate
manufacturing overheads. Net realizable value signifies estimated selling price less estimated cost of completion and estimated
cost to sell.
8.13 Revenue
Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or
receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of
ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible
return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of
revenue can be measured reliably. If it is probable that discounts will be granted and the amount can be measured reliably, then
the discount is recognised as a reduction of revenue as the sales are recognised.
The timing of transfer of risk and rewards varies depending on the individual terms of the sale agreements. For some
international shipments, transfer occurs on the loading of goods onto the relevant carrier at the port.
Return on deposit accounts is accounted for on a time proportion basis. Dividend income is recognised when the right to
receive such income is established. Rental income of investment property is recognised on a straight-line basis over the term of
the lease.
8.14 Financial instruments
Classification
The Company classifies non-derivative financial assets into the loans and receivables category. The Company classifies
non-derivative financial liabilities into other financial liabilities category.
Recognition and derecognition
The Company recognises financial assets and financial liabilities on the date that they are originated i.e. trade date which is the
date that the Company becomes a party to the contractual provisions of the instrument.
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers
the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of
the financial asset are transferred, or it neither retains substantially all of the risks and rewards of ownership and does not retain
control over the transferred asset. Any interest in such derecognised financial assets that is created or retained by the Company
is recognised as a separate asset or liability. The Company derecognises a financial liability when its contractual obligations are
discharged, cancelled or expired.
Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when, and only when,
the Company currently has a legally enforceable right to offset the amounts and intends either to settle them on a net basis or
to realize the asset and settle the liability simultaneously.

Measurement
Financial assets: Financial assets categorized as loans and receivables are initially measured at fair value plus any directly
attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest
method.
Financial liabilities: Non-derivative financial liabilities are initially measured at fair value less any directly attributable
transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest
method.
8.15 Lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.
8.16 Share capital and dividend
Ordinary shares are classified as equity and recognised at their face value. Dividend distribution to the shareholders is
recognised as liability in the period in which it is declared.
8.17 Earnings per share
The Company presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing the profit and loss
attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during
the period. Diluted EPS is determined by adjusting the profit and loss attributable to ordinary shareholders and the weighted
average number of ordinary shares outstanding, adjusted for the effects of all dilutive potential ordinary shares.
9. ISSUED, SUBSCRIBED AND PAID UP SHARE CAPITAL
2016 2015 2016 2015

Number of shares (Rupees '000) (Rupees '000)
514,163,552 514,163,552 Ordinary shares of Rs. 10 each 5,141,636 5,141,636

issued for cash
64,038,422 64,038,422 Ordinary shares of Rs. 10 each 640,384 640,384

issued as fully paid bonus shares
1,182,944 1,182,944 Ordinary shares of Rs. 10 each issued 11,829 11,829
pursuant to amalgamation of
Mustehkam Cement Limited
579,384,918 579,384,918 5,793,849 5,793,849
Authorized share capital
700,000,000 (2015: 700,000,000) ordinary shares of Rs. 10 each 7,000,000 7,000,000

9.1 Bestway (Holdings) Limited, U.K is the parent company controlling 320,667,055 i.e. 55.35% (2015: 319,885,740 i.e. 55.21%)
ordinary shares of Rs. 10 each of the Company and 81,928,735 (2015: 81,928,668) ordinary shares of Rs. 10 each and 38,516,376
(2015: 39,122,438) ordinary shares of Rs. 10 each are held by the directors and associated companies respectively.
10. SHARES TO BE ISSUED PURSUANT TO AMALGAMATION
Pursuant to the Scheme as explained in note 1.2, the Company will issue 16,867,865 ordinary shares of Rs. 10 each to the
minority shareholders of Pakcem. The market value of the Company's ordinary share was Rs. 137.82 at close of business on 31
December 2015 i.e. the Appointed Date. These shares are required to be issued by the Company within ninety days of the
effective date of the Scheme and upon issuance, the Company will transfer the face value of these shares to the share capital.
The excess of market value over the face value of the shares at the Appointed Date amounting to Rs. 2.16 billion has been
recognised as share premium (see note 11).
2016 2015
11. SHARE PREMIUM
Share premium on ordinary shares already issued 3,225,770 3,225,770

Share premium on ordinary shares to be issued pursuant to
amalgamation of Pakcem 10 2,156,051 -
5,381,821 3,225,770
2016 2015
12. LONG TERM FINANCING - secured (Restated)
Syndicate term finance facility 12.1 9,900,000 17,173,584

Current portion of long term financing 12.2 - (2,675,000)
9,900,000 14,498,584
12.1 This represents the outstanding balance of term finance facility of Rs. 15 billion (2015: Rs. 15 billion) from a syndicate of banks
with Allied Bank Limited as the lead bank. This facility is repayable in 10 stepped up semi annual installments starting from
October 2015. Markup is payable on semi annual basis at the rate of 6 months KIBOR plus 0.50% (2015: 6 months' KIBOR plus
0.50%) per annum. The facility is secured against all present and future assets excluding land and buildings of the Company for
an amount of Rs. 33.33 billion and a mortgage charge created by way of deposit of title deeds.
The comparative figures include the outstanding balance of term finance facility of Rs. 4 billion from a syndicate of banks with
Muslim Commercial Bank Limited as the lead bank. This facility was repayable in 5 equal semi annual installments. The facility
carried markup at the rate of 6 months KIBOR plus 0.40% at the previous year-end. During the year, the facility was repaid in full.
12.2 During the year, the Company prepaid all installments due within twelve months from the balance sheet date. Accordingly, no
amount has been transferred to current portion.
2016 2015
13. LONG TERM MUSHARAKA - secured (Restated)
Syndicate musharaka facility 13.1 6,600,000 10,000,000

Current portion of long term musharaka 13.2 - (1,200,000)
6,600,000 8,800,000

13.1 This represents the outstanding balance of musharaka facility of Rs. 10 billion (2015: Rs. 10 billion) from a syndicate of banks. This
facility is repayable in 10 stepped up semi annual installments starting from October 2015. Markup is payable on semi annual
basis at the rate of 6 months KIBOR plus 0.50% (2015: 6 months KIBOR plus 0.50%) per annum. The facility is secured as
explained in Note 12.1.
13.2 During the year, the Company prepaid all installments due within 12 months from the balance sheet date. Accordingly, no
amount has been transferred to current portion.
2016 2015
(Restated)
14. DEFERRED LIABILITIES
Deferred taxation 14.1 9,286,595 7,365,268

Provision for gratuity 14.2 300,150 236,483
Provision for compensated absences 14.3 15,610 18,737
9,602,355 7,620,488

14.1 Deferred taxation
Movement in deferred tax balances is as follows:
Net balance at Recognised in Recognised in Acquired in Adjustment of Balance at 30 June 2016

2016 01 July 2015 profit or loss OCI business group relief Net Deferred tax Deferred tax
combination asset liability
(Rupees '000)
Property, plant and equipment 8,445,892 35,838 - - - 8,481,730 - 8,481,730

Intangible assets 1,503,297 (460,868) - - - 1,042,429 - 1,042,429
Available for sale investments 181,696 - 12,945 - - 194,641 - 194,641
Share of profit of associate 611,163 264,589 - - - 875,752 - 875,752

Other differences related to associates OCI 8,043 - 14 - - 8,057 - 8,057
Tax losses (3,003,730) 3,003,730 - - - - - -
Tax credits (380,250) (917,038) - - - (1,297,288) (1,297,288) -
Other temporary differences (843) (17,883) - - - (18,726) (18,726) -
Tax (assets)/ liabilities before set off 7,365,268 1,908,368 12,959 - - 9,286,595 (1,316,014) 10,602,609
Set-off of tax - 1,316,014 (1,316,014)
Net tax liabilities 9,286,595 - 9,286,595
Net balance at Recognised in Recognised in Acquired in Adjustment of Balance at 30 June 2015 (Restated)
2015 (Restated) 01 July 2014 profit or loss OCI business group relief Net Deferred tax Deferred tax
combination asset liability
(Rupees '000)
Property, plant and equipment 4,571,911 (711,571) - 4,585,552 - 8,445,892 - 8,445,892

Intangible assets 7,348 (352,754) - 1,848,703 - 1,503,297 - 1,503,297
Available for sale investments 22,460 - 159,236 - - 181,696 - 181,696
Share of profit of associate 528,767 82,396 - - - 611,163 - 611,163
Other differences related to associates OCI - - 8,043 - - 8,043 - 8,043
Tax losses - 430,225 - (4,258,955) 825,000 (3,003,730) (3,003,730) -
Tax credits - (171,012) - (209,238) - (380,250) (380,250) -
Other temporary differences - - - (843) - (843) (843) -
Tax (assets)/ liabilities before set off 5,130,486 (722,716) 167,279 1,965,219 825,000 7,365,268 (3,384,823) 10,750,091
Set-off of tax - 3,384,823 (3,384,823)
Net tax liabilities (Restated) 7,365,268 - 7,365,268
14.1.1 Based on the Company's estimate of future export sales, adjustment of Rs. 1 billion (2015: Rs. 1.36 billion) has been made in the taxable temporary differences at the year end.
2016 2015
(Rupees '000) (Rupees '000)
14.2 Provision for gratuity
Present value of defined benefit obligation 300,150 236,483

Net defined benefit liability 300,150 236,483
14.2.1 Movement in net defined benefit liability
The following table shows a reconciliation from the opening balances to the closing balances for net defined benefit liability:
2016 2015
Balance at the beginning of the year 236,483 199,730
Included in profit or loss:

Current service cost 35,933 28,478
Interest cost 22,065 24,814
57,998 53,292
Included in OCI:
Re-measurement loss - Experience adjustment 26,025 8,370
320,506 261,392
Benefits paid (20,356) (24,909)
Balance at the end of the year 300,150 236,483
14.2.2 Actuarial assumptions
The following were the principal actuarial assumptions at the reporting date (expressed as weighted averages):
2016 2015
Discount rate 7.25% 9.75%

Future salary growth 6.25% 8.75%
Withdrawal rates Moderate Moderate
Assumption regarding future mortality has been based on published statistics and mortality tables. The mortality rates are
based on State Life Insurance Corporation (SLIC) 2001-05 ultimate mortality rate (2015: SLIC 2001-05 ultimate mortality rate),
rated down by one year.
14.2.3 Sensitivity analysis
Reasonably possible changes at the reporting date in one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligations by the amounts shown below:
2016 2016 2015 2015

Increase Decrease Increase Decrease
(Rupees '000) (Rupees '000) (Rupees '000) (Rupees '000)
Discount rate (1% movement) (20,328) 23,717 (16,027) 18,869

Future salary growth (1% movement) 24,894 (21,658) 19,881 (17,339)
Future mortality (1 year change) 80 (80) 63 (63)
Withdrawal rate (10% movement) 463 (486) 380 (398)
Although the analysis does not take into account full distribution of cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumptions shown.

14.2.4 Expected maturity profile
Following are the expected distribution and timing of benefit payments at year end:
2016 2015
Year 1 84,722 67,977

Year 2 17,590 10,231
Year 3 17,496 15,242
Year 4 22,812 14,431
Year 5 19,975 21,359
Year 6 to Year 10 68,546 71,701
Year 11 and beyond 382,896 483,485
Expected gratuity expense for the next financial year is Rs. 56.21 million (2015: Rs. 50.33 million).
14.2.5 Risks associated with defined benefit plan
Longitivity risks
The risk arises when the actual lifetime of retiree is longer than the estimate of future employee lifetime expectation. This risk is
measured at the plan level over the entire retiree population.
Salary increase risk

The most common type of retirement benefit is one where the benefit is linked with final salary. The risk arises when the actual
increases are higher than expectation and impacts the liability accordingly.
Withdrawal risk
The risk of actual withdrawals varying with the actuarial assumptions can impose a risk to the benefit obligation. The movement
of the liability can go either way.
14.2.6 Historical information

Present value of Net liability at
defined benefit the end of the
obligation year
2016 300,150 300,150

2015 236,483 236,483
2014 199,730 199,730
2013 164,451 164,451
2012 125,605 125,605
14.3 Provision for compensated absences
Actuarial valuation of compensated absences has not been carried out since the management believes that the effect of actuar-
ial valuation would not be material.

2016 2015
15. TRADE AND OTHER PAYABLES (Restated)
Payable to contractors and suppliers 2,528,678 1,157,335

Accrued liabilities 15.1 1,969,335 2,257,410
Advances from customers 409,897 167,393
Security deposits 91,224 80,661
Retention money 27,041 50,664
Workers' Profit Participation Fund payable 15.2 833,498 594,979
Workers' Welfare Fund payable 15.3 285,107 312,966
Sales tax payable 215,486 -
Excise duty payable 243,982 187,655
Advance rent of investment property 6,338 7,835
Donations payable to Bestway Foundation 266,330 166,401
Dividend payable 27,496 1,045,181
Withholding taxes payable 14,389 -
Other payables 15.4 128,857 103,508
7,047,658 6,131,988
15.1 This includes an amount of Rs. 12.44 million (2015: Rs. 32.84 million) payable to Sui Northern Gas Pipelines Limited (SNGPL)
against gas consumption during the month of June 2016 by the Company. The Company has issued bank guarantees in the
normal course of business to SNGPL for commercial and industrial use of gas for an amount of Rs. 1.25 billion (2015: Rs. 1.25
billion).
2016 2015
(Restated)
15.2 Workers' Profit Participation Fund payable

Acquisition through business combination - 86,961
Allocation for the year 35 784,518 576,349
Markup on funds utilized by the Company - 6,359
Payments to the Fund during the year (545,999) (770,460)
15.3 Workers' Welfare Fund payable

Allocation for the year 35 106,445 190,249
Payments to the Fund during the year (134,304) (68,306)
15.4 These include an amount of Rs. 42 million (2015: Rs. 42 million) on account of provision, recorded on a prudent basis, which the
management feels may ultimately be required to be paid to the land owners as compensation against land acquired for Hattar
plant. The Honorable Peshawar High Court in its order dated 01 November 2012 enhanced the amount of compensation award
to Rs. 320 million. Against this substantial increase, the Company has filed nine appeals in the Honorable Supreme Court of
Pakistan. No hearing date has been fixed so far due to non appointment of legal counsel by the respondent(s).

2016 2015
(Restated)
16. SHORT TERM BORROWINGS - secured
Running finance facilities from banking companies 16.1 2,440,678 2,052,863
16.1 These facilities are obtained from various commercial banks with an aggregate limit of Rs. 4.02 billion (2015: Rs. 4.32 billion). The
facilities carry mark-up at 3 months KIBOR plus 0.10% to 0.50% and one month KIBOR plus 0.15% (2015: 3 months KIBOR plus
0.40% to 1.50% per annum and 1 month KIBOR plus 0.40% per annum). These facilities are secured by first pari passu
hypothecation charge on all present and future movable assets for an amount of Rs. 3.47 billion (2015: Rs. 4.50 billion) and
current assets of the Company for an amount of Rs. 1.69 billion (2015: Rs. 1.29 billion).
16.2 Un-availed running finance facilities
The Company has running finance and other short term borrowing facilities aggregating to Rs. 1.69 billion (2015: Rs. 1.49 billion)
which remained un-availed at the year end.
2016 2015
(Restated)
17. CONTINGENCIES AND COMMITMENTS
17.1 Contingencies
17.1.1 Guarantees and claims
Letters of guarantee issued by banks on behalf of the Company 17.1.1.1 495,982 284,487
Post-dated cheques issued in favour of the Collector of Customs 2,830 4,070
Company's share of guarantees and claims of equity-accounted investee:

- Letters of guarantee 1,626,187 1,084,479
- Performance bonds, bid bonds and warrantees 12,013,895 8,704,469
- Claims not acknowledged as debt 950,264 925,467
17.1.1.1 Facilities of letters of guarantee are secured by first pari passu charge on present and future assets of the Company.
17.1.1.2 As at 30 June 2016, facilities of letters of guarantee amounting to Rs. 2.36 billion (2015: Rs. 1.65 billion) are available to the
Company.
17.1.2 Litigations
17.1.2.1 The Competition Commission of Pakistan (CCP) issued a show cause notice dated 28 October 2008 to 21 cement companies
(including the Company) under section 30 of the Competition Ordinance, 2007. On 27 August 2009, CCP imposed a penalty
aggregating Rs. 1.12 billion on the Company and Pakcem (acquired by the Company). The cement manufacturers (including
the Company) have challenged the CCP order in Honorable High Court and the Honorable High Court has passed an interim
order restraining CCP from taking any adverse action against those 21 cement companies.
Appeals against the CCP's orders were also filed as an abundant precaution in the Honorable Supreme Court of Pakistan under
Section 42 of the Competition Ordinance, 2007. During the year, the cases were fixed for hearing on time to time, however, due
to non availability of defendant, the hearings of the case were adjourned. These appeals are still pending and management is
confident of a favorable outcome of the case and accordingly no provision has been made in these financial statements.

17.1.2.2 In 2002, State Life Insurance Corporation of Pakistan (an initial shareholder of Pakcem) filed two suits before the Honorable
Sindh High Court against Mr. Khawaja Mohammad Jaweed (the then Chairman of the Chakwal Group, the previous parent of
Pakcem) for recovery of an aggregate amount of Rs. 461 million plus markup (at rates ranging from 16% to 20%) on account of
agreements of sale and repurchase of shares, executed at various times in August 1995, between State Life Insurance
Corporation of Pakistan and the then Chairman of the Chakwal Group. During the year 2014, Pakcem received a letter from
Chakwal Group stating that Pakcem is also a party to the case and can be held liable to pay the damages by the Honorable
Sindh High Court. The legal advisor of the Company is of the opinion that the Company can be extricated from the case,
provided that it can be shown to the Court that the then Chairman of the Chakwal Group was not authorized to act in this
regard on behalf of Pakcem. No provision has been made against the aforementioned case in these financial statements, as the
management and its legal counsel are confident that the matter will ultimately be decided in favor of the Company.
17.1.2.3 Contingencies relating to sales tax and federal excise duty of the Company are as follows. Sales tax and excise duty
contingencies of Pakcem, acquired by the Company, are disclosed in note 17.1.2.4.
i) The Commissioner Inland Revenue (Appeals-I) [CIR (A)] while deciding the appeal filed against the Order-in-Original No. 20
of 2013 dated 07 May 2013 [the OIO] for the years 2010, 2011 and 2012 passed by the tax authority raising alleged
aggregate demand of Rs.19.09 billion (including Rs. 3.33 billion related to Mustehkam Cement Limited [MCL], which was
amalgamated into the Company in 2013), remanded the case back to the tax authority by observing that the OIO is
completely silent about the earlier judgment passed by the Customs, Excise and Sales Tax Appellate Tribunal dated 30 April
2003 on the similar issue that the cement produced/sold by the Company was less than the quantity of cement worked out
in standard mix of 95:5 (5 being gypsum). The Company is in appeal against the order of the CIR(A) which is pending
disposal to date. On similar issue in a parallel case, the Appellate Tribunal Inland Revenue [the ATIR] has set aside the
demand raised by the tax authority by observing that working out production on the basis of working back gypsum
percentage should not be followed as there are many other ingredients required to manufacture cement.
Further, taking up the reassessment proceedings, the tax authority passed the Order-in-Original No. 09/065 of 2014 dated
18 March 2013 [the Order] by following a completely different view that the production of cement should be worked out
at the rate of 98% of installed capacity for all years under review. Resultantly, an aggregate demand of Rs. 8.54 billion
(including Rs. 1.56 billion related to MCL) against the Company was raised. Being aggrieved with this decision, the
Company filed an appeal before the CIR(A) who upheld the treatment followed by the tax authority with modification that
instead of 98%, the capacity should be worked out on average production in parallel cases for the years. However, the tax
authority has worked out production by applying a rate of 86.66% instead of 98%. As a result, demand of Rs. 5.28 billion
(including Rs. 0.92 billion related to MCL) along with default surcharge and penalty was raised. On appeal filed by the
Company the ATIR has annulled the orders of the tax authority. The tax authority has filed a reference before the
Honourable Islamabad High Court against the appellate orders of the ATIR.
ii) The tax authority conducted an audit of sales tax of the Company and consequent to audit proceedings framed
Order-in-Original No. 01 of 2015 dated 31 August 2015 through which a tax demand of Rs. 230.91 million was raised.
Against the said order, the Company filed an appeal before the CIR(A), who upheld the impugned order. Being dissatisfied
with the order, the Company has filed an appeal before the ATIR, which is pending to date.
iii) Based on an audit for the period from July 2009 to June 2010, the tax authority vide Order-in-Original No. 23 of 2013 dated
30 April 2013 raised aggregate sales tax demand of Rs. 639.17 million against the Company mainly alleging suppression of
production. On appeal by the Company, the CIR(A) vide order dated 25 July 2013, set aside the Order-in-Original and
directed the tax authority for de novo consideration. The Company has filed an appeal before the ATIR against the order of
the CIR(A), which is pending adjudication.

iv) The tax authority has raised a tax demand of Rs. 52.75 million vide order dated 27 March 2010 mainly for
misconstrued/duplicate demand of sales tax and federal excise duty on sale of clinker and rejection of input tax on certain
eligible items. On first appeal, the CIR(A) confirmed the order while in second appeal by the Company, the ATIR vide order
dated 24 February 2011 has set aside the assessment for de novo consideration, resultantly no demand exists at the
moment. The Company has also filed an appeal before Honourable Islamabad High Court against the set aside order
praying for annulment of the assessment. In re-assessment proceedings the sales tax department again maintained the
assessment at a tax demand of Rs. 52.75 million vide order dated 14 September 2012. On appeal, the CIR(A), vide an order
dated 21 November 2012, set aside the assessment for de novo consideration, hence no demand exists as of today.
17.1.2.4 Contingencies relating to sales tax and federal excise duty of Pakcem (acquired by the Company) are as follows:
i) For the tax period January 2007 to December 2007, the tax authority raised sales tax/federal excise duty demand of Rs. 690
million, vide Order-in-Original No.19 of 2011 dated 25 October 2011. Pakcem filed an appeal against the said order before
the CIR(A). The CIR(A) endorsed the view of the tax authority, but reduced the demand to Rs. 489 million. Pakcem filed an
appeal before the ATIR against the order of the CIR(A) and ATIR, vide its order dated 30 March 2012, set aside the orders of
the CIR(A) and directed the tax authority for de novo consideration. Pakcem then filed an appeal before the Honorable
Islamabad High Court against the order of the ATIR. In the meanwhile as directed by the ATIR, the tax authority vide its
re-assessment order dated 31 October 2012 again raised a demand of Rs. 489 million. Pakcem filed an appeal before the
CIR(A) against the aforementioned order of the tax authority. The CIR(A) vide its order dated 20 December 2012 remanded
back the order of the tax authority for re-assessment. Pakcem has also filed an appeal before the ATIR, against the order of
the CIR (A), which is pending a decision. Further, as directed by the CIR(A), the matter is also pending for adjudication with
the tax authority. To date no order has been passed.
ii) The tax authority vide orders dated 23 April 2010 and 05 May 2010, raised demand of Rs. 56.23 million against Pakcem, on
account of federal excise duty on royalty and fee for technical services, paid for the years 2006 to 2008. On appeal, the
CIR(A) vide an order dated 20 September 2010 set aside the demand. In consequence of appeal filed by tax authority, the
ATIR decided the matter against Pakcem, vide its order dated 06 August 2012. Pakcem has filed an appeal before the
Honorable Islamabad High Court and also filed an application for injunction against the recovery proceedings of default
surcharge and penalty of Rs. 49.79 million along with an application for early fixation of hearing. The injunction was granted
and date of hearing was fixed for 15 March 2016. The case was heard and the judgement stands reserved as of the reporting
date.
iii) The tax authority, vide a demand notice dated 06 January 2014, raised an aggregate sales tax demand of Rs. 297.9 million
by alleging that Pakcem had short paid sales tax, owing to an adjustment of input tax credit and suppression of output tax,
for the period from July 2010 to June 2011. Pakcem filed an appeal before the CIR(A) and in 2014, the CIR(A) directed the
taxation officer to re-examine the matter. The issue is pending to date.
iv) The Sindh Revenue Board (SRB) after conducting audit of financial statements of Pakcem for the years 2012 and 2013
demanded sales tax on royalty and technical assistance fee on franchise services received by Pakcem from the then
ultimate parent company ‘Lafarge’. Being aggrieved on account of SRB jurisdiction over the case, Pakcem filed a petition in
the Honorable Sindh High Court against unwarranted demand and inquiry initiated by the SRB. The Honorable Sindh High
Court granted an interim order in favor of Pakcem and refrained SRB for further proceedings in the case. The matter is
pending to date.
v) The tax authority, vide an order dated 31 January 2012 raised a demand of Rs. 33.63 million on account of federal excise
duty and default surcharge and penalty on royalty and fee for technical services paid by Pakcem, for the years 2009 and
2010. Pakcem filed an appeal before the CIR(A). However, the CIR(A) endorsed the view of the tax authority. Being aggrieved
Pakcem filed a second appeal before the ATIR which is pending to date. Further the tax authority has adjusted the subject

demand against income tax refund of Pakcem, for the tax year 2011, hence no provision for a potential liability is recorded
in these financial statements.
vi) For the tax period January 2011 to December 2011, the tax authority, vide Order-in-Original No.28 of 2013 dated 23
September 2013 raised federal excise duty demand of Rs. 9.67 million on account of non-payment of federal excise duty on
Industrial Franchise Fee. Thereafter, the CIR(A), vide its order dated 16 December 2013, deleted the federal excise duty
demand of Rs. 9.67 million with an observation that the tax authority may take action against Pakcem on account of late
payment of federal excise duty. Being aggrieved with the decision of the CIR(A), both the department and the Company
have filed appeals before the ATIR. Currently, both appeals are pending decision with the ATIR.
vii) For the tax period July 2011 to February 2015, the tax authority, vide Order-in-Original No. 06 of 2016 dated 02 February
2016, raised sales tax demand of Rs.177.10 million on account of inadmissible input tax adjustment on purchases made
from blacklisted/suspended/inactive/un-registered persons. Thereafter, the CIR(A) upheld the sales tax demand on account
of purchases from unregistered suppliers; whereas remanded back the matter of inadmissible adjustment of input tax on
purchases made from black-listed, suspended or non-active suppliers. Being aggrieved with the decision of the CIR(A), both
the department and the Company have filed appeals before the ATIR, which are pending adjudication.
viii) In August 2016, Pakcem filed application for condonation in time limit to the Federal Board of Revenue (FBR) along with
application for refund of sales tax of Rs. 25.71 million paid on import of coal during the tax period July 2013. The decision
on application is pending with the FBR.
Pending the outcome of the matters as discussed in notes from 17.1.2.3 and 17.1.2.4, no provision has been made in these
financial statements for the demands raised as management is confident that the matters will ultimately be decided in
favour of the Company.
17.1.2.5 Certain cases (including those relating to Pakcem), other than those disclosed in these financial statements, are pending in
different courts of law. The management is of the view that the outcome of those cases is expected to be favourable and a
liability, if any, arising at the conclusion of those cases is not likely to be material. Accordingly, no provision has been made in
these financial statements.
17.1.3 See notes 38.2 and 38.3 for income tax related contingencies.
2016 2015
(Restated)
17.2 Commitments
Outstanding letters of credit 1,133,182 788,943

Capital expenditure 157,876 15,151
Rentals for use of land 130,183 131,862
Minimum advance rent to Saba Generation Company (Private) Limited 155,520 228,902
Ijarah facilities 17.2.1 95,380 200,248
Company's share of commitments of equity-accounted investee:

- Outstanding letters of credit 14,632,185 11,393,215
- Forward foreign exchange contracts - purchases 15,440,777 16,111,368
- Forward foreign exchange contracts - sales 14,180,437 13,542,397
- Derivatives 806,112 878,327
- Capital expenditure 197,096 231,484

17.2.1 The amount of future payments under Ijarah facilities and the period in which these payments will become due are as follows:
2016 2015
(Restated)
Payable not later than one year 41,877 58,499

Payable later than one year but not later than five years 53,503 141,749
95,380 200,248
17.2.2 As at 30 June 2016, facilities of letters of credit amounting to Rs. 7.25 billion (2015: Rs. 5.92 billion) are available to the Company.
2016 2015
(Restated)
18. PROPERTY, PLANT AND EQUIPMENT
Operating fixed assets 18.1 41,930,513 43,334,193

Capital work in progress (CWIP) 18.2 1,024,516 113,941
42,955,029 43,448,134

18.1 Operating fixed assets
18.1.1 Reconciliation of carrying amounts
Freehold Leasehold Buildings on Plant and Quarry Laboratory Furniture and Vehicles Office Total
land land freehold machinery equipment and other fixture equipment
land equipment
(----------------------------------------------------- Rupees '000-----------------------------------------------------------------------)
Cost
Balance at 01 July 2014 (Restated) 1,185,975 39,517 6,231,094 21,346,984 1,568,051 134,639 102,689 224,887 118,605 30,952,441
Acquisition through business combination 333,295 - 3,382,067 14,263,030 - 707,236 4,024 18,942 1,660 18,710,254
Additions 21,771 - 7,020 2,006 38,069 13,891 7,355 62,277 16,754 169,143
Transfers from CWIP (note 18.2) - - 456,207 1,583,559 - - - - - 2,039,766
Disposals - - - - - - - (57,843) - (57,843)
Balance at 30 June 2015 (Restated) 1,541,041 39,517 10,076,388 37,195,579 1,606,120 855,766 114,068 248,263 137,019 51,813,761
Balance at 01 July 2015 (Restated) 1,541,041 39,517 10,076,388 37,195,579 1,606,120 855,766 114,068 248,263 137,019 51,813,761
Additions 24,258 - 15,052 282,444 131,130 39,083 9,253 109,381 11,650 622,251
Transfers from CWIP (note 18.2) - - 11,434 115,592 - 3,068 - - - 130,094
Disposals - - - - - - - (24,100) - (24,100)
Write offs - - (25,108) (229,576) (27,316) (45) - - - (282,045)
Balance at 30 June 2016 1,565,299 39,517 10,077,766 37,364,039 1,709,934 897,872 123,321 333,544 148,669 52,259,961
Accumulated depreciation
Balance at 01 July 2014 (Restated) - 21,032 1,621,707 4,583,450 689,914 71,114 48,653 123,421 61,247 7,220,538
Depreciation - 1,251 235,119 897,828 134,551 17,904 6,004 23,259 9,868 1,325,784
Transfer - - - (23,157) - - - - (23,157)
Disposals - - - - - - - (43,597) - (43,597)
Balance at 30 June 2015 - 22,283 1,856,826 5,458,121 824,465 89,018 54,657 103,083 71,115 8,479,568
Balance at 01 July 2015 - 22,283 1,856,826 5,458,121 824,465 89,018 54,657 103,083 71,115 8,479,568
Depreciation - 1,159 339,975 1,366,946 123,258 80,665 6,363 36,365 11,600 1,966,331
Disposals - - - - - - - (17,753) - (17,753)
Write offs - - (5,925) (71,553) (21,205) (15) - - - (98,698)
Balance at 30 June 2016 - 23,442 2,190,876 6,753,514 926,518 169,668 61,020 121,695 82,715 10,329,448
Carrying amounts
At 30 June 2015 1,541,041 17,234 8,219,562 31,737,458 781,655 766,748 59,411 145,180 65,904 43,334,193
At 30 June 2016 1,565,299 16,075 7,886,890 30,610,525 783,416 728,204 62,301 211,849 65,954 41,930,513
Useful life (years)/rates of depreciation per annum 30 years / 3% 30 years / 3% 30 years / 10% 15% 10-15% 10% 20% 15%
Bestway Cement Limited

63
18.1.2 Disposal of operating fixed assets
Description Cost Carrying Sale Gain/(loss) Mode of Sold to

amount proceeds disposal
(Rupees '000)
Suzuki Mehran (IDM - 7162) 385 21 283 262 Negotiation Mr. Abrar Hussain
Honda City (RF - 416) 1,409 568 1,175 607 Negotiation Mr. Ehsan Muhammad
Suzuki Alto (KH - 482) 514 68 373 305 Negotiation Mr. Hassan Akhter Abbasi
Suzuki Alto (KV - 721) 519 73 416 343 Negotiation Mr. Muhammad Younus
Suzuki Cultus (QW - 661) 897 295 423 128 Negotiation Mr. Taj Ghani

Suzuki Cultus (QU - 435) 874 282 354 72 Negotiation Mr. Zaigham Abbasi
Suzuki Cultus (QJ - 784) 871 271 340 69 Negotiation Mr. Shabbir Hussain
Suzuki Cultus (SA - 367) 892 300 300 - Negotiation Mr. Raza Mir
Toyota Corolla (QS -118) 1,445 435 1,233 798 Negotiation Mr. Shahid Baig
Suzuki Cultus (HH - 576) 598 48 416 368 Negotiation Mr. Ashfaq Alam
Hyundai Van (IDL - 6420) 1,360 70 455 385 Negotiation Mr. Nisar Ahmed
Honda Civic (SD - 325) 1,709 564 671 107 Negotiation Mr. Ijaz Ahmed Malik
Suzuki Cultus (SB - 726) 898 276 398 122 Negotiation Mr. Amjad Ghaffar
Honda City (SH - 104) 1,403 465 711 246 Negotiation Col. (R) Muhammad Tariq
Suzuki Alto (KC - 753) 514 61 416 355 Negotiation Mr. Shahid Baig
Toyota Corolla (IDL - 3786) 1,205 59 850 791 Negotiation Mr. Fayyaz Kiani
Suzuki Alto (KU - 719) 514 64 389 325 Negotiation Mr. Faisal Shahzad
Honda City (SJ - 720) 1,378 440 1,111 671 Negotiation Mr. Faisal Rafique
Toyota Corolla (YD - 192) 1,733 864 1,500 636 Insurance claim Insurance claim
Shahzore (HK - 136) 801 55 620 565 Negotiation Mr. Muhammad Kashif
Mazda Pick-up (IDT - 1863) 701 6 195 189 Negotiation Mr. Malik Arshad Mehmood
Honda Civic (YU - 124) 2,130 1,062 1,300 238 Auction Mr. Syed Faisal Maqsood
Suzuki Cultus (JD - 924) 675 - 428 428 Auction Mr. Shahid Baig
Suzuki Cultus (JD - 923) 675 - 417 417 Auction Mr. Muhammad Imran
2016 24,100 6,347 14,774 8,427
2015 57,843 14,246 26,593 12,347

2016 2015
(Restated)
18.1.3 Allocation of depreciation charge
Cost of sales 1,941,728 1,309,185

Administrative expenses 15,017 10,445
Distribution costs 9,586 6,154
1,966,331 1,325,784
18.2 Capital work in progress (CWIP)
Opening balance 113,941 492,464

Acquisition through business combination 43.3 - 223,403
Additions during the year 18.2.1 1,040,669 1,437,840
1,154,610 2,153,707
Transferred to operating fixed assets:
Buildings on freehold land (11,434) (456,207)
Plant and machinery (115,592) (1,583,559)
Laboratory and other equipment (3,068) -
(130,094) (2,039,766)
18.2.2 1,024,516 113,941
18.2.1 This includes borrowing cost capitalized amounting to Rs. 3.90 million (2015: Rs. 131 million) calculated at a rate of 6.92% (2015:
9.66%) per annum.
18.2.2 Break up of CWIP is as follows:

2016 2015
(Restated)
Plant and machinery and other equipment 924,924 83,694

Civil development works 99,592 30,247
1,024,516 113,941
19. INTANGIBLE ASSETS AND GOODWILL
Computer software 39,237 46,613

Operational benefit 19.1.1 2,959,795 4,596,652
Brands 19.1.2 961,604 1,070,775
Goodwill 7,062,111 7,248,517
19.1 11,022,747 12,962,557

19.1 Reconciliation of carrying amounts
Computer Operational Brands Goodwill Total

software benefit
(Rupees '000)
Cost
Balance at 01 July 2014 53,411 - - - 53,411
Acquisition through business combination (note 43) 19,636 4,910,570 1,091,712 7,248,517 13,270,435
Additions - - - - -
Balance at 30 June 2015 (Restated) 73,047 4,910,570 1,091,712 7,248,517 13,323,846
Balance at 01 July 2015 (Restated) 73,047 4,910,570 1,091,712 7,248,517 13,323,846
Adjustments (note 44.1) - - - (186,406) (186,406)
Balance at 30 June 2016 73,047 4,910,570 1,091,712 7,062,111 13,137,440
Accumulated amortisation and impairment losses

Balance at 01 July 2014 (Restated) 21,037 - - - 21,037
Amortisation 5,397 313,918 20,937 - 340,252
Balance at 30 June 2015 (Restated) 26,434 313,918 20,937 - 361,289
Balance at 01 July 2015 (Restated) 26,434 313,918 20,937 - 361,289
Amortisation 7,376 1,636,857 109,171 - 1,753,404
Balance at 30 June 2016 33,810 1,950,775 130,108 - 2,114,693
Carrying amounts
At 30 June 2015 46,613 4,596,652 1,070,775 7,248,517 12,962,557
At 30 June 2016 39,237 2,959,795 961,604 7,062,111 11,022,747
Useful life (years)/Rates of amortisation 6.66% - 29.3% 3 years 10 years -
19.1.1 Operational benefit
This represents the value of benefit the Company expects to derive from acquiring a running business when compared with a
greenfield project of size similar to Pakcem. This intangible has been recognised on acquisition and measured at present value
of incremental cash flows to be generated over a period of three years from the date of acquisition. Since management believes
that cash flows from the acquisition will be similar to the greenfield project after a period of three years, the intangible is being
amortised over a period of incremental cash flows i.e. three years.
19.1.2 Brands
This represents intangible assets in the form of Brands on acquisition of Pakcem and reflects the expected economic benefits to
the Company from the retention differential of those Brands. The value of Brands has been determined on the basis of
incremental cash flows to be generated from retention of those brands which the Company intends to use. The management
has estimated useful life of the Brands to be ten years starting from the date of acquisition.
19.1.3 Goodwill
This represents excess of the amount paid over fair value of net assets of Pakcem on its acquisition on 22 April 2015 (see note
43). The recoverable amount of goodwill is tested for impairment annually based on its value in use, determined by discounting
the future cash flows to be generated by Pakcem. The key assumptions used in the estimation of value in use were as follows:
2016 2015
Discount rate 15% 17%

Terminal value growth rate 5% 5%
Budgeted growth rate (average of next five years) 6.8% 6.8%

This discount rate represents estimate of rate implicit in relevant market for the same currency in which the cash flows arise. Five
years of free equity cash flows were included in the discounted cash flow model, and thereafter on the basis of terminal value
growth rate.
Budgeted growth was based on expectations of future outcomes taking into account past experience, adjusted for anticipated
revenue growth. Revenue growth was projected taking into account the average growth levels experienced in the recent years
and the estimated sales volume and price growth for the next five years.
Following the impairment testing, management concludes that recoverable amount of investment exceeds its carrying value.
However, in the future years, any adverse movement in the key assumptions may lead to reduction in recoverable amount.
2016 2015
19.1.4 Allocation of amortisation (Restated)
Cost of sales 4,128 4,856

Administrative expenses 1,640,105 314,459
Distribution costs 109,171 20,937
1,753,404 340,252
20. INVESTMENT PROPERTY

Surplus on re-measurement of investment property to fair value 4,633 120
Balance at the end of the year 20.1 350,538 345,905
20.1 The investment property is a portion of the Company's head office building in Islamabad held for letting. On 30 June 2016, an
independent exercise was carried out to determine the fair value of investment property. To assess the land and building prices,
market survey was carried out in the vicinity of the investment property. Fair value of the investment property is based on
independent valuer's judgment about average prices prevalent on the aforementioned date and has been prepared on openly
available/provided information after making relevant inquiries from the market. Valuation was carried out by an independent
valuer who holds a recognised and relevant professional qualification and has recent experience in the location and category of
the investment property being valued.
The investment property is placed in level 3 of the fair value hierarchy (see note 42.2.2). Since the value has been determined by
a third party and inputs are not observable, sensitivity analysis has not been presented.

2016 2015 2014
21. LONG TERM INVESTMENTS
Investment in joint venture 21.1 - - -

Investment in associated company 21.2 11,592,746 10,983,221 8,444,561
Investment in subsidiary company 21.3 - - -
11,592,746 10,983,221 8,444,561

2016 2015
21.1 Investment in joint venture
Ecocem Pakistan (Private) Limited - unquoted

Cost of 300,002 shares (2015: nil) of Rs. 100 each 22,409 -
Less: Provision for impairment loss (22,409) -
21.1.1 - -
21.1.1 During the year, the Company acquired 300,002 shares representing 50% of the issued share capital in Ecocem Pakistan (Private)
Limited ('Ecocem') held by Lafarge Industrial Ecology International for a consideration of Rs. 22.4 million. Ecocem is in the
business of sorting, processing and selling solid municipal waste. Ecocem is in losses and its Board of Directors has decided to
wind up its operations and to liquidate the company. Accordingly, the management believes that the carrying amount is not
recoverable and therefore impairment for the entire amount has been recognised.
21.2 Investment in associated company
21.2.1 As at 30 June 2016, the Company holds 93,649,744 (30 June 2015: 93,649,744) ordinary shares in United Bank Limited ('UBL'), a
leading commercial bank in Pakistan with its registered office situated in Islamabad, Pakistan. The Company's shareholding in
UBL constitutes 7.65% (2015: 7.65%) of total ordinary shares of UBL. UBL's ordinary shares are listed on Pakistan Stock Exchange.
UBL is treated as an associate due to common directorship.
21.2.2 Reconciliation of carrying amount

01 July
2014
(Rupees '000)
Cost of 93,649,744 shares (2015: 93,649,744) of Rs. 10 each 1,862,803
Balance at 01 July 2014, as previously reported 1,862,803

Effects of change in accounting policy:
- Post acquisition profits, net of dividends received 5,287,672
- Exchange translation reserve 1,069,489
- Surplus on revaluation of available-for-sale investments 224,597
6,581,758
Balance at 01 July 2014 (Restated) 8,444,561
2016 2015
(Restated)
Balance at the beginning of the year 10,983,221 8,444,561
Company's share of associate's profit for the year 2,111,835 1,947,751

- Re-measurement of defined benefit liability (15,971) 80,433
- Change in exchange translation reserve (9,060) 41,909
- Re-measurement of available-for-sale investments (259,832) 1,592,365
(284,863) 1,714,707
Less: Dividends received (1,217,447) (1,123,798)
Balance at the end of the year 11,592,746 10,983,221

21.2.3 The following table summarizes the financial information of UBL as included in its financial statements for the un-audited
consolidated condensed financial information for the period ended 30 June 2016, adjusted for difference in accounting policies
in respect of revaluation of assets. The financial year-end of UBL is 31 December.
2016 2015
Percentage of ownership (%) 7.65% 7.65%
Total assets 1,625,872,719 1,362,133,149

Total liabilities (1,482,043,322) (1,226,194,177)
Net assets 143,829,397 135,938,972
Non-controlling interests (4,887,279) (4,964,501)
Net assets attributable to ordinary shareholders (100%) 138,942,118 130,974,471
Company's share of net assets (7.65%) 10,629,072 10,019,547

Goodwill 963,674 963,674
Carrying amount of interest in associates 11,592,746 10,983,221
Net mark-up / return / interest income for the year 101,005,185 91,950,243
Profit after tax (100%) 27,605,689 25,460,797
Company's share of net profit for the year (7.65%) 2,111,835 1,947,751
Other Comprehensive Income (OCI):

- (Loss)/gain on re-measurement of defined benefit liability (208,771) 1,051,412
- Change in exchange reserve (118,431) 547,830
- Change in surplus on revaluation of available-for-sale investments (3,396,497) 20,815,229
Total OCI (100%) (3,723,699) 22,414,471
Company's share of OCI (7.65%) (284,863) 1,714,707
21.2.4 Market value of investment in UBL as at 30 June 2016 was Rs. 16.57 billion (2015: Rs. 16.01 billion). The investment in UBL is
placed in level 1 of the fair value hierarchy (see note 42.2.2).
21.3 Investment in subsidiary company
This represented investment in Pakcem carried at cost in the Company's unconsolidated (separate) financial statements for the
year ended 30 June 2015. Consequent to accounting for acquisition of Pakcem effective 22 April 2015, as more fully explained
in notes 1.2 and 43, the post acquisition financial results and related balances of Pakcem are included in the Company's financial
statements. Investment in Pakcem as previously stated at cost has been reversed and comparative figures have been restated
accordingly.
22. LONG TERM DEPOSITS
These include security deposits amounting to Rs. 70.29 million (2015: Rs.108.08 million) given for the electricity connections of
the plants.
2016 2015
23. STORES, SPARE PARTS AND LOOSE TOOLS (Restated)
Stores, spare parts and loose tools 4,707,455 3,908,519

Stores and spare parts in transit 1,346,494 319,797
6,053,949 4,228,316
Less: Provision for obsolete spare parts 23.1 (8,323) (4,391)
6,045,626 4,223,925

2016 2015
(Restated)
23.1 Movement in provision for obsolete spare parts
Balance at the beginning of the year 4,391 -

Provision for the year 3,932 -
24. STOCK IN TRADE
Raw and packing material 439,517 401,499

Work in process 795,489 1,942,205
Finished stock 275,449 404,567
24.1 1,510,455 2,748,271
Less: Provision for slow moving stock 24.2 (58,098) (30,046)
1,452,357 2,718,225
24.1 This includes stock in transit amounting to Rs. 2.54 million (2015: Rs. 22.12 million).
24.2 Movement in provision for slow moving stock

Provision for the year 28,235 -
Less: Reversals (183) -
25. TRADE DEBTS - considered good
Secured
Considered good 125,073 66,480
Unsecured
Considered good 25.1 1,050,736 796,221
Considered doubtful 2,935 1,600
1,053,671 797,821
Less: Provision against doubtful trade debts 43.3.2 (2,935) (1,600)
1,050,736 796,221
1,175,809 862,701
25.1 These include Rs. 210.41 million (2015: Rs. 174.71 million) receivable from customers against export sales.
2016 2015
26. ADVANCES (Restated)
Considered good - unsecured:

Advances to employees and executives 13,121 7,082
Advances to suppliers and contractors 834,459 422,330
Current portion of long term advance 14,333 14,333
861,913 443,745

2016 2015
(Restated)
27. DEPOSITS AND PREPAYMENTS
Security deposits 49,389 46,616

Short-term prepayments 12,181 19,115
61,570 65,731
28. OTHER RECIEVABLES
Ecocem Pakistan (Private) Limited - Joint Venture - 77,188

Export rebate 5,877 10,107
Accrued interest 119 3,197
Fuel Price Adjustment (FPA) receivable 79,383 -
Receivable from Lafarge S.A. 42,808 -
Others 18,897 45,364
147,084 135,856
29. DUE FROM GOVERNMENT AGENCIES
Customs duty - 28,373

Capital value tax - 11,729
Excise duty 29.1 615,146 615,146
Sales tax -net - 71,306
615,146 726,554
29.1 The Honorable Supreme Court of Pakistan in its judgment dated 14 April 2007 in a comparable case for levy of excise duty,
dismissed the appeal filed by the Federal Board of Revenue (FBR) and upheld the decisions made by the Honorable High Courts
of Peshawar, Sindh and Punjab. The matter in dispute is whether excise duty be levied on retail price inclusive of excise duty or
retail price exclusive of excise duty. The FBR's point of view was that excise duty be calculated on declared retail price inclusive
of excise duty whereas the concerned respondents disagreed with that interpretation. The full bench of the Honourable
Supreme Court upheld the judgments made by the Honourable High Courts and dismissed the appeal of the FBR. The FBR
moved a review petition before the Honourable Supreme Court of Pakistan which to date is pending.
The Company has filed a claim for Rs. 615.15 million relating to duty paid during the period from June 1998 to April 1999 which,
pursuant to the above decisions, was otherwise not leviable and payable under the law. The Commissioner Appeals rejected the
claim of Rs. 211.15 million pertaining to the Company (excluding Mustehkam Cement Limited) and the Company has filed an
appeal with Appellate Tribunal against unlawful rejection of refund claims. A number of hearings were conducted during the
year but the case has yet to be decided. Further, on refund claim of Mustehkam Cement Limited (amalgamated with the Compa-
ny) of Rs. 404 million, tax authorities held the proceedings in abeyance awaiting result of litigation pertaining to the Company's
refund claim. The management believes that the Company's claim is valid and the amount is fully recoverable.
2016 2015
30. CASH AND BANK BALANCES (Restated)
Cash in hand 530 2,360

Cash at banks:
in current accounts 30.1 344,854 191,294
in deposit accounts 30.2 & 30.3 37,173 2,294,278
382,027 2,485,572
382,557 2,487,932

30.1 This includes Rs. 110.48 million (2015: Rs. 53.37 million) held in current accounts maintained with United Bank Limited (UBL), an
associated company.
30.2 Deposit accounts carry profit rates ranging from 1% to 4% (2015: 1% to 8.6%) per annum and include balances of Rs. 29.38
million (2015: Rs. 23.29 million) maintained with United Bank Limited (UBL).
30.3 These include balances amounting to Rs. 17.77 million (2015: Rs. 39.09 million) held in US Dollar accounts.
30.4 Pursuant to completion of acquisition process of Pakcem by the Company, the balances of Pakcem with Lafarge S.A. (previous
parent entity of Pakcem) and its affiliates as of 21 April 2015 were agreed between the Company and Lafarge S.A and have been
transferred to an escrow account maintained with Citi Bank N.A, pursuant to the Escrow Agreement dated 21 April 2015
between the Company and Lafarge S.A. and CitiBank N.A. According to the agreement the transferred funds will be utilised
exclusively for payments to Lafarge S.A. from time to time and the Company will be entitled only to the balance left in the
escrow account after completion of payments to Lafarge S.A. Accordingly, the amount in escrow account and payable balances,
aggregating to Rs.194.13 million (2015: Rs. 194.8 million) related to Lafarge S.A. and its affiliates, have not been recognised in
these financial statements till final settlement of escrow account. During the year, an amount equivalent to Rs. 42.81 million has
been paid to Lafarge S.A. which has been recognised as receivable (note 28).
2016 2015
31. TURNOVER - net (Restated)
Gross turnover
- Local 53,421,851 36,963,180
- Export 5,121,656 4,552,779
58,543,507 41,515,959
Government levies:
- Sales tax (8,586,220) (5,899,407)
- Excise duty (2,600,775) (1,731,110)
(11,186,995) (7,630,517)
Rebates and discounts (1,635,472) (1,192,392)
45,721,040 32,693,050
32. COST OF SALES
Raw and packing materials consumed 32.1 4,554,941 3,272,828

Fuel and power 13,133,365 12,062,477
Stores, spares and loose tools consumed 32.2 1,429,447 1,052,908
Repairs and maintenance 252,451 188,360
Salaries, wages and benefits 32.3 1,306,701 753,509
Support services 286,036 288,091
Rent, rates and taxes 12,370 21,228
Insurance 43,292 33,495
Equipment rental 18,197 27,186
Utilities 21,231 12,041
Travelling, conveyance and subsistence 182,851 67,126
Communication 5,921 4,773
Printing and stationery 7,893 6,027
Entertainment 9,363 11,909
Depreciation 18.1.3 1,941,728 1,309,185
Amortization 19.1.4 4,128 4,856
Provision for slow moving stock 24.2 28,235 -
Legal and professional charges 4,027 1,383
Fees and subscriptions 13,036 8,107
Other manufacturing expenses 42,337 46,208
23,297,550 19,171,697
2016 2015
(Restated)
Opening work in process 1,942,205 1,303,695
Acquisition through business combination 43.3 - 1,168,613
Closing work in process (795,489) (1,942,205)
Cost of goods manufactured 24,444,266 19,701,800
Opening finished goods stock 404,567 397,880

Closing finished goods stock (275,449) (404,567)
24,573,384 19,900,086
32.1 Raw and packing materials consumed
Opening stock 401,499 231,037

Purchases during the year 4,592,959 3,312,763
Closing stock (439,517) (401,499)
4,554,941 3,272,828
32.2 Stores, spare parts and loose tools consumed include provision for obsolete spare parts amounting to Rs. 3.93 million
(2015: Rs. nil).
32.3 Salaries, wages and benefits include staff retirement benefits amounting to Rs. 56.63 million (2015: Rs. 46.33 million).
33. ADMINISTRATIVE EXPENSES
Salaries, wages and benefits 33.1 284,137 193,277

Insurance 2,394 1,688
Utilities 5,294 4,825
Advertisements 6,183 4,073
Donations 33.2 105,112 88,656
Legal and professional charges 26,639 31,857
Auditors' remuneration 33.3 7,007 11,111
Depreciation 18.1.3 15,017 10,445
Amortization 19.1.4 1,640,105 314,459
Security expenses 1,165 -
Due from government agencies written off 40,102 -
Provision for impairment of investment 21.1 22,409 -
Provision for doubtful debts 1,335 -
Other advances and receivables written off 82,868 -
Provision for stamp duty 12,430 -
Others 45,772 765
2,463,969 755,012

33.2 These include a provision of Rs. 102.82 million (2015: Rs. 86.65 million) made for donation to Bestway Foundation. The Chief
Executive and the following directors are among the trustees of the Foundation:
- Sir Mohammed Anwar Pervez

- Zameer Mohammed Choudrey
- M. Irfan A. Sheikh
- Arshad Mehmood Chaudhary
Above directors or their spouses do not have a beneficial interest in Bestway Foundation.
2016 2015
33.3 Auditors' remuneration (Restated)
Annual audit fee 3,472 2,637

Audit fee for audit of consolidated financial statements 660 600
Fee for half yearly review 550 500
Statutory certifications 430 1,110
Taxation services 1,470 150
Acquisition related advisory services - 5,608
Out of pocket expenses 425 506
7,007 11,111
34. DISTRIBUTION COSTS
Salaries, wages and benefits 34.1 144,424 81,500

Support services 772 1,111
Utilities 1,430 1,995
Advertising and promotion 17,660 1,546
Depreciation 18.1.3 9,586 6,154
Amortization 19.1.4 109,171 20,937
Legal and professional charges 2,925 948
Freight and handling - Local 258,709 75,759
Freight and handling - Export 492,144 546,450
Others 3,301 2,593
1,176,860 811,078
35. OTHER EXPENSES
Workers' Welfare Fund 106,445 190,249

Workers' Profit Participation Fund 784,518 576,349
890,963 766,598

2016 2015
36. FINANCE COSTS
(Restated)
Markup on long term financing 1,076,455 229,973
Markup on long term musharaka 654,699 164,909
Markup on short term borrowings 34,018 12,136
Bank charges and commissions 51,304 43,551
Interest on Workers' Profit Participation Fund - 6,359
Exchange loss - net 6,024 -
1,822,500 456,928
37. OTHER INCOME
Income from financial assets

Profit on deposit accounts 125,241 66,553
Mark up on long term advance 297 44
Exchange gain - net - 1,163
125,538 67,760
Income from non-financial assets
Gain on disposal of operating fixed assets 18.1.2 8,427 12,347
Rental income from investment property 27,051 26,705
Gain on re-measurement of investment property to fair value 20.1 4,633 120
40,111 39,172
Others
Management fee from related party 1,166 1,200
Liabilities no longer payable, written back - 4,479
Others 5,980 4,058
7,146 9,737
172,795 116,669
38. TAXATION
Current tax 3,289,209 3,169,666

Deferred tax 1,908,368 (722,716)
Tax expense for the year 5,197,577 2,446,950
38.1 Reconciliation of effective tax rate
Accounting profit before tax 17,077,994 12,067,768
Tax at the applicable tax rate of 32% (2015: 33%) 5,464,958 3,982,363
Super tax 567,511 266,114
Tax effect of share of profit of associate (411,808) (447,983)
Tax effect of income taxable under final tax regime (exports) (443,029) (348,932)
Tax effect of permanent differences 66,052 (392,768)
Reduction in tax rate for deferred taxation and change in
proportion of local and export sales 344,902 (440,832)
Recognition of tax credits (391,469) (171,012)
Tax expense for the year 5,197,117 2,446,950
Average effective tax rate (%) 30.43% 20.28%

38.2 Status of the Company's tax assessments is as follows. Income tax contingencies of Pakcem, acquired by the Company, are
disclosed in note 38.3.
38.2.1 The assessments for the Assessment Year 2000-2001 to 2002-2003 were finalized by the tax authorities mainly by curtailing
business expenditure claimed by the Company and charging surcharge on minimum tax. The appeals for Assessment Year
2000-2001 were decided against the Company by the Appellant Tribunal Inland Revenue (“ATIR”) against which the Company
filed reference with the Honourable Islamabad High Court which is pending adjudication. The appeal filed with the Commis-
sioner Inland Revenue (Appeals) [the “CIR(A)”] for the Assessment Year 2001-2002 was decided against the Company while
certain issues were decided in favour of the Company for the Assessment Year 2002-2003. Against these orders of the CIR(A), the
Company is in appeal with the ATIR which is pending for adjudication.
38.2.2 The assessment of the Company for the Tax Years 2003 through 2015 stood finalized under the self assessment scheme
envisaged under the Income Tax Ordinance, 2001 [the “Ordinance”].
38.2.3 The tax authority levied tax of Rs. 99.08 million under section 161 of the Ordinance along with default surcharge of Rs. 124.93
million for Tax Year 2005 by rejecting the legal ground of time limitation raised by the Company. On the Company's appeal, the
CIR(A) passed an order by setting aside the assessment order which was agitated by the Company before the ATIR which is
pending for adjudication. The ATIR stayed the re-assessment proceedings till disposal of appeal by the ATIR.
38.2.4 The tax authority amended assessment of the Company for the Tax Year 2007 charging tax of Rs. 29.26 million by making various
disallowances and levying tax on property income and dividend income under the presumptive mode of taxation (PTR). The
CIR(A) annulled the order on all the issues except for upholding the taxation of property income and dividend income under PTR
and disallowance of deduction claimed on account of donations paid during the year. The Company as well as the tax authority
have filed cross appeals before the ATIR which are pending for adjudication.
38.2.5 The tax authority amended the assessment of the Company for the Tax Year 2009 thereby making various disallowances. The
Company filed appeal with the CIR(A) and simultaneously moved rectification application with the tax authority. While dispos-
ing of the rectification application, the tax authority allowed partial relief to the Company. In terms of rectification order, the
revised taxable income for the year was worked out to Rs. 1.82 billion which was however, set off against brought forward
business losses. The remaining issues were decided by the CIR(A) in favour of the Company except the issue of disallowance of
deductions claimed on account of donations. The Company as well as the tax authority have filed cross appeals before the ATIR
on the issues not decided in their favour by the CIR(A). These appeals are subjudice before the ATIR, till date.
38.2.6 Income tax assessments of the Company for the Tax Years 2010 to 2012 were amended on alleged concealment of sales by
working back production taking gypsum consumed as five per cent of cement produced and raising tax demand of Rs. 16.97
billion (including Rs. 2.10 billion related to MCL). On appeal by the Company, the CIR(A) cancelled the assessments for the Tax
Years 2010 and 2011 and set aside the assessment for the Tax Year 2012 for de novo consideration. Being dissatisfied with the
order of the CIR(A), the Company has filed a second appeal before the ATIR for the Tax Year 2012.
The tax authority has again taken up the same issues through notice dated 12 November 2013 for all the years under consider-
ation. On detailed reply by the Company, the tax authority changed the dimension of the case to under utilization of installed
capacity and confronted the Company to assess the sales by assuming 98% capacity utilization. The amended assessment for
the Tax Years 2010 and 2011 has been made at a demand of Rs. 2.48 billion against which the Company has filed appeals before
the CIR(A) who deleted the addition made on the ground of suppression of sales and set-aside the order on the remaining issues
assailed in appeal. Both the Company and the tax authority have filed cross appeals before the ATIR, which are subjudice till
date.

30.2.7 The tax authority framed an order under section 4B of the Ordinance to recover Rs. 23 million on account of super tax allegedly
short paid by the Company for the Tax Year 2015. Being aggrieved with the order, the Company preferred an appeal before the
CIR(A), which is subjudice till date.
38.2.8 The tax authority framed ex-parte amended assessment order for the Tax Year 2013 thereby charging tax on dividend income at
corporate rate of tax at 35% and curtailing the adjustment of tax loss by Rs. 664 million. On appeal filed by the Company, the
CIR(A) set aside the amended assessment order. Being not satisfied with the order of the CIR(A), the Company has filed an appeal
before the ATIR which is subjudice till date. The tax authority has initiated the reassessment proceedings and has also proceeded
to further amend the assessment thereby raising various issues. The Company has filed detailed replies to the aforesaid notices,
however, so far, no order has been framed by the tax authority.
38.2.10 The following tax contingencies stand transferred to the Company from Mustehkam Cement Limited ('MCL') under the scheme
of amalgamation:
i) The tax authority required MCL to furnish a reconciliation for various expenses incurred during the Tax Year 2007 with
payments there-against divulged in the withholding tax statements. MCL contested this notice by contending that the
information requisitioned by the tax authority is hit by time limitation laid down in section 174(3) of the Ordinance for
maintenance of records. However, the tax authority did not concur with the stance of MCL and held that MCL did not
withhold tax from the payments made against those heads of accounts and ordered to recover the tax from MCL under
section 161 of the Ordinance along with default surcharge under section 205 of the Ordinance. Through the said order, tax
demand of Rs. 24 million was raised. Being aggrieved, MCL has preferred an appeal before the CIR(A) and also moved a
rectification application with the tax authority. In disposal of appeal filed by MCL, the CIR(A) has set aside the order of the
tax authority and has directed the tax authority to frame the order after proper examination of records. The rectification
application of MCL is however pending adjudication till date. Being dissatisfied with the order of the CIR(A), MCL had filed
second appeal before the ATIR, which is subjudice till date.
ii) For the Assessment Year 1998-99, the tax authority charged additional tax amounting to Rs. 10.39 million in terms of
section 87 of the repealed Income Tax Ordinance, 1979 for non-payment of advance tax. At that time, no appeal was filed
with the CIR(A) against the impugned order on instructions of the Government of Pakistan (GoP) as MCL was a state-owned
enterprise then, and the GoP insisted to resolve the disputes with the Federal Board of Revenue (FBR) through
inter-ministerial consultations. After MCL‘s privatization, it pursued it’s case before the appellate authorities and
accordingly filed an appeal with the CIR(A) with the request for condonation of delay in time for filing of appeal within the
prescribed time. This request for condonation of delay was not accepted. MCL filed an appeal with the ATIR where the
request for condonation in filling of appeal was also not entertained. Accordingly, MCL filed a reference with the
Honourable Islamabad High Court, which is subjudice till date.
iii) The tax authority passed a rectification order for the Tax Year 2011, thereby, charging minimum tax on export sales and
charging surcharge on minimum tax liability. Being aggrieved with the rectification, MCL filed an appeal before the CIR(A)
who has set-aside the rectification order. The management is in the process of filing an appeal against the said order before
the ATIR.
The management of the Company is confident of the favourable outcome of the appeals filed by it and accordingly no provision
has been recognised in these financial statements in respect of the matters discussed above.

38.3 The following income tax contingencies stand transferred to the Company pursuant to the Scheme of amalgamation of Pakcem
with the Company:
i) The tax authority, vide an order dated 14 March 2011, raised a demand of Rs. 268.56 million by subjecting reversal of
interest and penal charges on foreign currency loans to tax, for the Tax Year 2005. Pakcem filed an appeal with the CIR(A)
which was decided against Pakcem. Pakcem then filed an appeal before the ATIR against the aforementioned order of
CIR(A). The ATIR decided the appeal in favour of Pakcem. However, the tax authority being aggrieved by the order of the
ATIR, has filed a reference application with the Honourable Islamabad High Court.
ii) The tax authority vide an order dated 28 June 2013, reduced the tax refund of Pakcem from Rs. 122.66 million to Rs. 71.48
million for the Tax Year 2010. Owing to alleged suppression of sales amounting to Rs. 331.90 million, charging of minimum
tax, and apportionment of expenses between local and export sales, Pakcem filed a rectification application with the tax
authority and also filed an appeal with the CIR(A). The CIR(A) vide its order dated 30 January 2014 has remanded the case
for de novo consideration.
iii) The tax authority amended the assessment for the Tax Year 2008 and reduced tax losses by Rs. 2.58 billion on account of a
waiver of customs duties amounting to Rs. 815.18 million, alleged suppression of sales amounting to Rs. 1.19 billion and
computation of profits attributable to exports. However, no tax demand was raised by the tax authority. Pakcem filed an
appeal before the CIR(A) against the amended order. In 2014, the CIR(A) set aside the matters of additions to income on
account of waiver of customs duties and taxes amounting to Rs. 815.18 million and suppression of sales amounting to Rs.
1.19 billion. The matter of computation of profits attributable to exports was, however, decided against Pakcem. Pakcem
has filed an appeal against the decision of the CIR(A) before the ATIR. The tax authority, based on the decision of the CIR(A),
has initiated the re-assessment proceedings which are in progress.
iv) The tax authority amended the assessment for the Tax Year 2010, alleging suppression of sales by Rs. 331.90 million on the
basis of consumption of gypsum and further reduced the tax losses by not agreeing to the mode of computation of export
profits. Pakcem filed a rectification application with the tax authority as well as an appeal before the CIR(A) against the
amended assessment order. In 2014, the CIR(A) decided the appeal in favour of Pakcem by setting aside the entire
assessment for de novo consideration. The re-assessment proceedings are in progress.
The management of the Company is confident of the favourable outcome of the appeals filed by it and accordingly no provision
has been recognised in these financial statements in respect of tax demands raised by the tax authorities through amend-
ments/rectifications of assessments in the matters discussed above.
38.4 The Finance Act, 2015 introduced a new tax under Section 5A of the Income Tax Ordinance, 2001 on every public company other
than a scheduled bank or modaraba, that derives profits for tax year and does not distribute cash dividend within six months of
the end of said tax year or distribute dividends to such an extent that its reserves, after such distribution, are in excess of 100%
of its paid up capital. However, this tax on undistributed reserves is not applicable to a public company which distributes profit
equal to either 40 percent of its after tax profits or 50% of its paid up capital, whichever is less, within six months of the end of
the tax year.
During the year, the company has distributed sufficient interim dividends for the year ended 30 June 2016, which complies with
the above stated requirements. Accordingly, no provision for tax on undistributed reserves has been recognised in these
financial statements for the year ended 30 June 2016.

39. EARNINGS PER SHARE - basic and diluted

Note 2016 2015
(Restated)
Profit for the year attributable to owners of the Company

(Rupees in '000) 11,853,178 9,593,996
Weighted average number of ordinary shares in issue 39.1 587,818,851 579,384,918
Earnings per share - basic (Rupees) 20.16 16.56
39.1 These include effect of ordinary shares to be issued pursuant to the Scheme of amalgamation (see note 10).
39.2 There is no dilution effect on earnings per share of the Company.
40. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
The aggregate amounts charged in these financial statements in respect of remuneration including benefits and perquisites of
the chief executive, directors and executives of the Company are given below:
2016 2015
Chief Executive Directors Executives Chief Executive Directors Executives
(-----------------Rupees '000-------------) (-----------------Rupees '000 -------------)
Managerial remuneration
and allowances 24,000 13,963 494,455 24,000 54,989 280,388
Bonus - 1,939 92,766 - 3,064 45,622
Provision for gratuity - 1,915 59,417 - 1,968 24,101
Compensated absences - 1,530 25,662 - 1,626 3,598
Others - - 23,684 - - 13,451
24,000 19,347 695,984 24,000 61,647 367,160
Number of persons 1 1 314 1 5 286
40.1 The Chairman, Chief Executive, Executive Director and eligible executives are also provided with vehicle facility while medical
facility is provided to the Executive Director and eligible executives as per their entitled limits.
41. RELATED PARTIES
41.1 Parent and ultimate controlling party
The Company is a subsidiary of Bestway (Holdings) Limited, UK which is also the Company's ultimate controlling party.
41.2 Transactions and balances with related parties
The Company is a subsidiary of Bestway (Holdings) Limited, UK ("the ultimate parent company"), therefore, all subsidiaries and
associated undertakings of the ultimate parent company are related parties of the Company. Other related parties comprise of
directors, key management personnel, entities with common directorships and entities over which the directors are able to
exercise influence. Balances with related parties are shown in notes 9.1, 21, 28 and 30 and transactions with related parties are
disclosed in notes 18.1.2, 33.2 and 40. Transactions and balances with related parties other than those disclosed elsewhere in
these financial statements are as follows:

2016 2015
Transactions and balances with parent company (Restated)
Dividend paid during the year - net of tax 3,793,563 2,334,226

Dividend payable at year-end (unsecured) 17,215 965,749
Transactions with associated undertakings under common directorship

Management fee received 1,166 1,200
Service/bank charges 11,786 7,119
Donations 101,405 87,407
Dividend received 1,217,447 1,123,797
Sale of cement 3,590 5,704
Utility expense paid 75 54
Bank profit received 3,534 -
Transactions and balances with key management personnel

Remuneration, allowances and benefits 739,331 452,807
Repayments of advances - 1,379
Dividend paid 716,801 342,267
Transactions with jointly controlled entity

Purchase of fuel 23,068 35,921
Return/sale of shredding equipment (56,306) 56,306
Expenses paid 9,260 13,045
Other related party transactions

Contributions to provident fund 19,649 10,365
42. FINANCIAL INSTRUMENTS - Fair values and risk management

42.1 Accounting classification
The following table shows the carrying amounts of financial assets and financial liabilities by categories:
30 June 2016 30 June 2015 (Restated)

Loans and Other financial Total Loans and Other financial Total
receivables liabilities receivables liabilities
Note
(-----------------Rupees - '000------------) (-----------------Rupees - '000------------)
Financial assets measured at fair value - - - - - -

Financial assets not measured at fair value
Deposits 22 & 27 183,862 - 183,862 180,098 - 180,098
Trade debts 25 1,175,809 - 1,175,809 862,701 - 862,701
Advances 26 27,454 - 27,454 35,748 - 35,748
Other receivables 28 147,084 - 147,084 135,856 - 135,856
Cash and bank balances 30 382,557 - 382,557 2,487,932 - 2,487,932
1,916,766 - 1,916,766 3,702,335 - 3,702,335
Financial liabilities measured at fair value - - - - - -

Financial liabilities not measured at fair value
Secured financing 12 - 9,900,000 9,900,000 - 17,173,584 17,173,584
Secured musharaka 13 - 6,600,000 6,600,000 - 10,000,000 10,000,000
Advances - - - - 1,996 1,996
Markup accrued 246,088 246,088 - 437,229 437,229
Trade and other payables 15 - 2,803,296 2,803,296 - 2,437,349 2,437,349
Running finance 16 - 2,440,678 2,440,678 - 2,052,863 2,052,863
- 21,990,062 21,990,062 - 32,103,021 32,103,021

42.2 Fair values
42.2.1 Fair value versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows:
2016 2015
Carrying Carrying
amount amount
(Restated)
Financial assets not measured at fair value
Deposits 183,862 180,098
Trade debts 1,175,809 862,701
Advances 27,454 35,748
Other receivables 147,084 135,856
Cash and bank balances 382,557 2,487,932
Financial liabilities not measured at fair value

Secured financing 9,900,000 17,173,584
Secured musharaka 6,600,000 10,000,000
Advances - 1,996
Markup accrued 246,088 437,229
Trade and other payables 2,803,296 2,437,349
Running finance 2,440,678 2,052,863
The Company has not disclosed the fair values of financial assets and financial liabilities as these are for short-term or reprice
over short-term. Therefore, the carrying amounts are reasonable approximation of their values.
42.2.2 Fair value hierarchy
The different levels have been defined as follows:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
42.2.3 Determination of fair values
A number of the Company’s accounting policies and disclosures require determination of fair values, for both financial and
non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on
the following methods. Fair values information for non-financial assets are disclosed in respective notes.
Financial assets
Fair values of non-derivative financial assets are estimated as the present value of future cash flows, discounted at the market
rate of interest at the reporting date. These fair values are determined for disclosure purposes.

Financial liabilities
Fair values which are determined for disclosure purposes, are calculated based on the present value of future principal and
interest cash flows, discounted at the market rate of interest at the reporting date.
42.3 Financial risk management
The Company has exposure to the following risks arising from financial instruments:
1) Credit risk
2) Liquidity risk
3) Market risk
42.3.1 Risk management framework
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The Board is also responsible for development and monitoring of 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.
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. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad-
hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
42.3.2 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, and arises principally from the Company's receivables from customers and balances with banks. The
carrying amount of financial assets represents the maximum credit exposure.
Trade debts
The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the credit risk of its customer base. The Company has established a credit policy under which each
new customer is assessed individually for creditworthiness before the Company's standard payment and delivery terms and
conditions are offered. Sales limits are established for each customer and are reviewed on monthly basis. Trade debts
amounting to Rs. 125.07 million (2015: Rs 53.90 million) are secured against letters of credit. The Company maintains provision
for doubtful debts that represents its estimate of probable losses in respect of trade debts.

At 30 June 2016, the maximum credit exposure in trade debts by geographic region was as follows:
2016 2015
(Restated)
Domestic 965,401 687,997

Middle East and African region - 84,561
Asia 210,408 90,143
1,175,809 862,701
At 30 June 2016, the maximum credit exposure in trade debts by type of

customer was as follows:
Dealers 852,002 844,391
End-user customers 323,807 18,310
1,175,809 862,701
At 30 June 2016, the Company's most significant customer, a local dealer, accounted for Rs. 58.35 million (2015: Rs. 37.49 million)
of the trade debts carrying amount.
At 30 June 2016, the ageing of trade debts and provision for doubtful debts were as follows:
Gross amount Provision for doubtful debts

2016 2015 2016 2015
Past due 1-30 days 1,140,797 855,369 - -

Past due 31-60 days 1,079 98 - -
Past due 61-90 days 5,944 - - -
Over 90 days 30,923 8,834 (2,935) (1,600)
1,178,743 864,301 (2,935) (1,600)
The management believes that all unimpaired amounts are collectable in full, based on historical payment behavior and exten-
sive analysis of customer credit risk.
The movement in provision for doubtful debts during the year was as follows:
2016 2015
(Restated)

Provision for the year 32 1,335 -
Bank balances
The Company has placed funds in financial institutions with high credit ratings. All balances are held with financial institutions
in Pakistan. The Company assesses the credit quality of the counter parties as satisfactory.
42.3.3 Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to

ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. The Company
uses different methods which assists it in monitoring cash flow requirements and optimizing its cash return on investments. The
Company aims to maintain the level of its cash and cash equivalents and other highly liquid assets at an amount in excess of
expected cash outflows on financial liabilities. In addition, the Company maintains lines of credit as mentioned in note 16.
Following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted, and include contractual interest payments and exclude the impact of netting agreements.
Carrying amount Contractual cash flows

Total 6 months or 6 to 12 months 1 to 2 years 2 to 5 years More than 5
less years
30 June 2016 (Rupees '000) (Rupees '000)
Secured financing 9,900,000 11,633,773 208,090 338,146 3,921,792 7,165,745 -
Secured musharaka 6,600,000 7,755,848 138,726 225,431 2,614,528 4,777,163 -
Markup accrued 246,088 246,088 246,088 - - - -
Trade and other payables 2,803,296 2,803,296 2,803,296 - - - -
Running finance 2,440,678 2,440,678 2,440,678 - - - -
21,990,062 24,879,683 5,836,878 563,577 6,536,320 11,942,908 -
30 June 2015 (Restated)
Secured financing 17,173,584 21,129,964 2,045,841 1,992,194 5,289,189 11,802,740 -
Secured musharaka 10,000,000 12,469,177 1,019,145 993,996 2,889,826 7,566,210 -
Advances 1,996 1,996 1,996 - - - -
Markup accrued 473,229 437,229 437,229 - - - -
Trade and other payables 2,437,349 2,437,349 2,437,349 - - - -
Running finance 2,052,863 2,052,863 2,052,863 - - - -
32,103,021 38,528,578 7,994,423 2,986,190 8,179,015 19,368,950 -
The contractual cash flows relating to long and short term borrowings have been determined on the basis of expected mark-up
rates. The mark-up rates have been disclosed in notes 12, 13 and 16. Cash flows included in the maturity analysis are not
expected to occur significantly earlier or at significantly different amounts.
42.3.4 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 returns. The Company is exposed to
currency risk and interest rate risk.
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. Currency risk arises mainly from future commercial transactions of receivables and payables that exist
due to transactions in foreign currency.
Exposure to currency risk
The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales and
purchases are denominated and its functional currency. The currencies in which these transactions are primarily denominated
are US Dollar (USD) and Euro.

The Company's exposure to foreign currency risk is as follows:

2016 2015 (Restated)
USD Euro USD Euro
Trade debts 165,663 - 174,672 -

Cash and bank balances 17,708 - 39,800 227
Trade and other payables (10,121) (5,411) (8,041) (7,708)
Net exposure 173,250 (5,411) 206,430 (7,482)
The following significant exchange rates have been applied:
Average rate Year-end spot rate

2016 2015 2016 2015
USD 1 104.50 101.65 104.72 101.79

Euro 1 115.77 112.88 116.80 113.36
Sensitivity analysis
A reasonably possible strengthening (weakening) of the USD and Euro against Pak Rupee at 30 June would have affected the
measurement of financial instruments denominated in a foreign currency and affected the equity and profit or loss by the
amount shown below. This analysis assumes that all other variables remain constant and ignores any impact of forecast sales
and purchases.
Profit or loss Equity, net of tax

Strengthening Weakening Strengthening Weakening
30 June 2016
USD (5% movement) 8,663 (8,663) 8,663 (8,663)
Euro (5% movement) (271) 271 (271) 271

USD (5% movement) 10,322 (10,322) 10,322 (10,322)
Euro (5% movement) (374) 374 (374) 374
Interest rate risk
The interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Majority of the interest rate exposure arises from short and long term borrowings and short
term deposits with banks.
Exposure to interest rate risk
The interest rate profile of the Company's interest-bearing financial instruments is as follows.
Nominal amount
2016 2015
(Restated)
Fixed-rate instruments
Financial assets 37,173 2,294,278
Variable-rate instruments
Financial liabilities 18,940,678 29,226,447

Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.
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 increased (decreased) equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
Profit or loss Equity, net of tax

100 bp increase 100 bp decrease 100 bp increase 100 bp decrease
30 June 2016
Variable-rate instruments (189,407) 189,407 (189,407) 189,407

Cash flow sensitivity (net) (189,407) 189,407 (189,407) 189,407
Variable-rate instruments (292,264) 292,264 (292,264) 292,264

Cash flow sensitivity (net) (292,264) 292,264 (292,264) 292,264
42.4 Capital management
The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and sustain
future development of the business. The Board of Directors of the Company monitors the return on capital, which the Company
defines as net profit after taxation divided by total shareholders' equity. The Board of Directors also determines the level of
dividend to ordinary shareholders. There were no changes to the Company's approach to capital management during the year
and the Company was not subject to externally imposed capital requirements.
43. ACQUISITION OF SUBSIDIARY
On 22 April 2015, the Company assumed management control of Pakcem, pursuant to the Company's successful bid for LPCL’s
shares. Taking control of Pakcem enabled the Company to increase its market share. The Company expects to reduce costs
through economies of scale.
In 70 days to 30 June 2015, Pakcem contributed revenue of Rs. 2.18 billion and profit of Rs. 209.66 million to the Company’s
results. If the acquisition had occurred on 01 July 2014, management estimates that revenue would have been Rs. 41.35 billion,
and profit for the year would have been Rs. 9.22 billion.
As explained in note 1.2, Pakcem has been amalgamated into the Company and its assets and liabilities have been transferred
to the Company on the Appointed Date i.e. 31 December 2015. However, the acquisition of Pakcem has been accounted for as
a business combination effective from the date when management assumed control i.e. on 22 April 2015 in accordance with
IFRS 3 'Business Combinations'. Accordingly, comparative figures have been restated to include the financial results of Pakcem
for the period from 22 April 2015 to 30 June 2015 and corresponding balances as at 30 June 2015. Other than the adjustments
in net assets acquired as explained in note 43.3, the comparative figures mainly reflect the amounts presented in the Company's
consolidated financial statements for the year ended 30 June 2015.
An explanation of accounting for acquisition of non-controlling interest in Pakcem has been disclosed in note 44.

2015
(Rupees '000)
43.1 Consideration transferred (Restated)
Cash 25,941,898
43.2 Acquisition related costs
The Company incurred acquisition related costs of Rs. Nil (2015: Rs. 46.85 million) on legal fees and due diligence. These costs
have been included in 'administrative expenses'.
43.3 Identifiable assets acquired and liabilities assumed
For the purpose of acquisition accounting, fair values of acquired net assets of Pakcem were measured provisionally at the date
of acquisition. During the year, the Company carried out an exercise to firm up the fair values of net assets acquired, including
identification of certain intangible assets, to complete the acquisition accounting within a period of twelve months from the
date of acquisition in accordance with IFRS 3 'Business Combinations'. Accordingly, the fair values of net assets acquired have
been revised and goodwill has also been re-measured. The effect of these adjustments has been taken from the date of
acquisition by revising the comparative figures pursuant to the requirements of IFRS 3 'Business Combinations'. The related
revision in the recognised amounts of acquired net assets are as follows:
2015 (Restated)
Recognised Amounts
values after measured on
measurement provisional basis
period
Property, plant and equipment 18,933,657 18,933,657

Intangible assets 6,021,918 19,636
Long term advances 10,330 10,330
Long term deposits 85,399 85,399
Stores, spares and loose tools 1,025,306 937,382
Stock in trade 1,504,114 1,038,906
Trade debts - considered good 126,587 126,587
Advances 91,059 91,059
Deposits and prepayments 29,138 29,138
Accrued profit on deposits 468 468
Other receivables 102,042 102,042
Advance tax - net 460,336 460,336
Cash and bank balances 135,556 135,556
Deferred taxation - net (1,965,219) (116,516)
Long term financing (2,609,076) (2,609,076)
Trade and other payables (2,153,968) (2,153,968)
Mark up accrued (88,391) (88,391)
Short term borrowings (515,860) (515,860)
Total identifiable net assets acquired 21,193,396 16,486,685
The above revision in the recognised values of identifiable net assets acquired has resulted in a decrease of Rs. 447.56 million in
the profit for the year ended 30 June 2015 as reported in the consolidated financial statements of the Company.

43.3.1 Measurement of fair values
The valuation techniques used for measuring the fair value of material assets acquired were as follows:
Asset acquired Valuation technique
Property, plant and equipment Market comparison and cost technique: The valuation model considers market
prices for similar items when they are available, and depreciated replacement cost
when appropriate. Depreciated replacement cost reflects adjustments for physical
deterioration as well as functional and economic obsolescence.
Intangible assets Multi-period excess earnings method: The multi-period excess earnings method
considers the present value of net cash flows expected to be generated by the
intangibles in the form of operational benefit and brands acquired, by excluding any
cash flows related to contributory assets.
Stock in trade Market comparison technique: The fair value is determined based on the estimated
selling price in the ordinary course of business less the estimated costs of completion
and sale, and a reasonable profit margin based on efforts required to complete and
sell the inventories.
43.4 Goodwill
Pursuant to revision in acquired net assets, goodwill arising from the acquisition has been recognised as follows:
2015 (Restated)
Recognised Amounts
values after measured on
measurement provisional basis
period
Consideration transferred 25,941,898 25,941,898
Fair value of identifiable net assets 21,193,396 16,486,685

Less: NCI, based on proportionate interests in acquired net assets of Pakcem (2,500,015) (1,944,802)
18,693,381 14,541,883
Goodwill 7,248,517 11,400,015
The goodwill is attributable mainly to synergies expected to be achieved from integrating Pakcem into the Company's existing
cement sale business. None of the goodwill recognised is expected to be deductible for tax purposes.

44. ACQUISITION OF NON CONTROLLING INTERESTS (NCI)
As more fully explained in note 1.2, Pakcem has been amalgamated into the Company during the year pursuant to the Scheme.
Movement in NCI during the year is as follows:
2016 2015
(Restated)
Balance at the beginning of the year 2,526,837 -

Proportionate interest in the net assets of Pakcem - 2,500,015
Profit attributable to NCI 44.2 27,239 26,822
Dividend paid to NCI by Pakcem (42,941) -
2,511,135 2,526,837
Consideration paid to NCI (fair value of shares to be issued) 10 (2,324,729) -
Amount adjusted against goodwill 44.1 (186,406) -
Balance at the end of the year - 2,526,837
44.1 This represents the difference between the fair value of consideration and the carrying amount of NCI at the date of acquisition
of NCI and has been adjusted in the goodwill as the management believes that the acquisition of NCI pursuant to amalgamation
was part of the acquisition transaction.
44.2 The following table summarizes the information relating to Pakcem.
2016 2015
(Restated)
NCI percentage - 11.80%
Non-current assets - 25,084,688

Current assets - 3,598,401
Non-current liabilities - (3,907,640)
Current liabilities - (3,354,686)
Net assets - 21,420,764
Net assets attributable to NCI - 2,526,837
Revenue 5,365,961 2,183,502

Profit 230,835 227,395
Total comprehensive income 230,835 227,395
Profit allocated to NCI 27,239 26,833
Cash flows from operating activities 2,307,642 (1,495,273)

Cash flows from investing activities (182,981) 1,302,898
Cash flows from financing activities (1,672,974) (389,631)
Net increase/(decrease) in cash and cash equivalents 451,687 (582,006)
The Company assumed management control of Pakcem on 22 April 2015 and subsequently Pakcem was amalgamated into the
Company on 31 December 2015. Accordingly, the information presented above for the current year relates to the period from
01 July 2015 to 31 December 2015 and the comparative figures cover the period from 22 April 2015 to 30 June 2015.

2016 2015
(Restated)
45. CASH AND CASH EQUIVALENTS
Cash and bank balances 30 382,557 2,487,932

Short term borrowings 16 (2,440,678) (2,052,863)
Cash and cash equivalents for the purpose of cash flow statement (2,058,121) 435,069
46. PROVIDENT FUND TRUST
The following information is based on un-audited financial statements of the Provident Fund Trust as at 30 June 2016:
Note 2016 2015
Size of the trust (Rupees '000) 232,434 242,334

Cost of investments (Rupees '000) 120,815 120,815
Percentage of investments made (%) 52% 51%
Fair value of investments made (Rupees '000) 46.1 180,184 185,289
46.1 The break-up of fair value of investments is as follows:

2016 2015 2016 2015
(%) (%) (Rupees '000) (Rupees '000)
With scheduled banks:

Saving accounts 6% 14% 11,312 25,415
6% 14% 11,312 25,415
Quoted investments:
National Investment Trust 18% 16% 32,302 29,527
UBL's United Composite Islamic Fund 4% 3% 6,319 5,532
UBL's Separately Managed Account 22% 19% 39,526 35,139
44% 38% 78,147 70,198
Others:
Defense Saving Certificates 11% 11% 20,350 20,580
Certificates of Islamic Investment - Meezan Bank Limited 23% 22% 40,742 41,053
Term Deposit Receipts - Bank Islami Pakistan Limited 7% 6% 12,638 11,067
Term Deposit Receipts - MCB Islamic Bank 9% 9% 16,995 16,976
50% 48% 90,725 89,676
100% 100% 180,184 185,289
46.2 All the investments of the 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.
47. PLANT CAPACITY AND PRODUCTION - Clinker

Available Capacity Actual Production
2016 2015 2016 2015
(Metric Tonnes) (Metric Tonnes)
Hattar 1,170,000 1,170,000 944,860 982,588

Farooqia 1,109,700 1,109,700 914,719 802,324
Chakwal 3,420,000 3,420,000 2,446,909 2,258,722
Kallar Kahar (Pakcem) - see note 46.1 2,367,090 475,358 1,516,892 251,101
8,066,790 6,175,058 5,823,380 4,294,735
47.1 The available capacity and actual production of Kallar Kahar (Pakcem) plant for the year 2015 is presented for the period from
22 April 2015 to 30 June 2015.

47.2 Actual production is less than the installed capacity due to planned maintenance shut down and in line with the cement
demand.
48. NUMBER OF EMPLOYEES 2016 2015
Number of employees including contractual employees at year end 2,857 2,378
Average number of employees 2,546 2,357
49. PROPOSED DIVIDEND
The Board Directors in their meeting held on 18 November 2016 has proposed a final dividend of Rs. 2.50 per share. These
financial statements do not reflect the proposed final dividend on ordinary shares as payable, which will be accounted for in the
statement of changes in equity as an appropriation from the unappropriated profit in the year ending 30 June 2017.
50. DATE OF AUTHORISATION
These financial statements were authorised for issue on 18 November 2016 by the Board of Directors of the Company.
51. GENERAL
Corresponding figures have also been rearranged and reclassified, wherever necessary, for better presentation.

KEY OPERATING AND FINANCIAL
DATA FOR SIX YEARS
Restated
2016 2015 2014 2013 2012 2011
Operating Results Rupees in millions
Turnover (net) 45,721 32,693 28,951 24,074 17,789 13,332
Cost of sales 24,573 19,900 17,570 14,104 12,093 10,419
Gross profit 21,148 12,793 11,380 9,970 5,696 2,914
Operating profit 17,507 11,226 10,371 8,577 5,152 2,405
Financial charges 1,823 457 462 1,009 1,916 2,489
Profit/(loss) before taxation 17,078 12,068 10,434 8,135 3,934 424
Profit/(loss) after taxation 11,880 9,621 7,872 4,399 3,061 179
Balance Sheet Rupees in millions

Shareholders' funds 41,983 36,443 22,544 18,444 14,032 10,972
Operating fixed assets 42,955 43,448 24,224 23,470 15,804 16,433
Long term financing 16,500 23,299 - 5,116 5,574 8,221
Liability subject to finance lease - - - - 57 110
Net current (liabilities)/ assets 2,031 (523) 785 1,222 (2,917) (4,526)
Significant Financial Ratios Percentages

Gross profit ratio 46.25 39.13 39.31 41.41 32.02 21.86
Net profit ratio 25.98 29.43 27.19 18.27 17.21 1.34
Interest coverage ratio 10.37 27.41 23.58 9.06 3.05 1.17
Return on equity 28.30 26.40 34.92 23.85 21.81 1.63
Earnings/(loss) per share 20.16 16.56 13.79 7.59 5.29 0.57
Dividend 100.00 100.00 65.00 20.00 - -
In thousand metric tonnes

Despatches of cement 6,904 4,853 4,372 3,977 3,270 3,208

PATTERN OF SHAREHOLDING
AS AT 30 JUNE 2016
No. of Shareholding Total Shares
Shareholders From To Held
3963 1 100 81,427

447 101 500 102,537
101 501 1000 74,275
114 1001 5000 279,757
28 5001 10000 206,292
7 10001 15000 92,464
4 15001 20000 71,208
3 20001 25000 69,008
2 25001 30000 59,550
4 30001 35000 129,227
3 35001 40000 112,850
6 40001 45000 257,019
3 50001 55000 154,105
6 65001 70000 402,632
3 70001 75000 215,410
7 75001 80000 543,493
1 80001 85000 81,301
1 95001 100000 100,000
1 105001 110000 105,100
1 110001 115000 115,000
2 125001 130000 255,704
1 130001 135000 134,000
1 145001 150000 145,682
3 150001 155000 463,491
1 155001 160000 160,000
1 185001 190000 185,425
4 215001 220000 878,460
1 230001 235000 234,256
4 240001 245000 969,449
2 275001 280000 556,358
1 285001 290000 289,159
2 300001 305000 607,794
1 445001 450000 447,020
2 505001 510000 1,012,420
1 515001 520000 515,114
1 620001 625000 623,664
1 670001 675000 673,486
5 675001 680000 3,394,400
1 800001 805000 803,037
1 840001 845000 841,857
2 955001 960000 1,917,290
2 1085001 1090000 2,178,724
1 1355001 1360000 1,357,760
1 1570001 1575000 1,573,445
1 1805001 1810000 1,808,309
1 1905001 1910000 1,905,652
1 2695001 2700000 2,698,994
1 4170001 4175000 4,174,000
2 4320001 4325000 4,323,753
1 6165001 6170000 12,339,942
1 6185001 6190000 6,188,213
1 7875001 7880000 7,878,441
1 9625001 9630000 9,626,632
1 9900001 9905000 9,903,204
1 12010001 12015000 12,014,147
1 15190001 15195000 15,191,463
2 17150001 17155000 17,153,461
2 18695001 18700000 37,390,634
1 18745001 18750000 37,496,432
1 28185001 28190000 28,188,568
1 31135001 31140000 31,139,368
316490001 316495000 316,493,055
4,768 579,384,918

AS AT 30 JUNE 2016
Categories of Shareholders Shares Held Percentage
DIRECTORS, CHIEF EXECUTIVE OFFICER, AND THEIR

SPOUSE AND MINOR CHILDREN
SIR MOHAMMED ANWAR PERVEZ 21,640,779

ZAMEER MOHAMMED CHOUDREY 12,358,184
DAWOOD PERVEZ 28,188,568
MUHAMMAD IRFAN ANWAR SHEIKH 151,183
RAKHSHANDACHOUDREY 185,425
MOHAMMED YOUNUS SHEIKH 11,711,513
ARSHAD MEHMOOD CHAUDHARY 7,878,441
MRS. NAJMA NAHEED PIRZADA 67
Sub-Totals: 82,114,160 14.17
ASSOCIATED COMPANIES, UNDERTAKING AND RELATED

PARTIES.
BESTWAY (HOLDINGS) LIMITED 320,667,055

BESTWAY NORTHERN LIMITED 15,191,463
BESTWAY FOUNDATION 23,323,432
Sub-Totals : 359,181,950 61.99
MODARABAS AND MUTUAL FUNDS.
NH CAPITAL FUND LIMITED 3

FIRST UDL MODARABA 4,300
KASB PREMIER FUND LIMITED 1 98
Sub-Totals : 4,501 0.00
BANKS DEVELOPMENT FINANCIAL INSTITUTIONS, NON

BANKING FINANCIAL INSTITUTIONS.
UNITED BANK LIMITED 22

MCB BANK LIMITED – TREASURY 160,000
ALLIED BANK OF PAKISTAN LIMITED 1,359
HABIB BANK LIMITED 537
MCB BANK LIMITED 75
BANK OF BAHAWALPUR LIMITED 11
COMMERCE BANK LIMITED 294
ALLIED BANK OF PAKISTAN, HEAD OFFICE 660
ALLIED BANK OF PAKISTAN LIMITED 44
ISLAMIC INVESTMENT BANK LIMITED 1,650
UNITED BANK LIMITED 1,167
NATIONAL BANK OF PAKISTAN 252
MCB BANK LIMITED 46
Sub-Totals : 166,409 0.03
MUSLIM INSURANCE CO. LIMITED 264

CENTURY INSURANCE COMPANY LIMITED 44,300
STATE LIFE INSURANCE CORPORATION 5,320
AMERICAN EXPRESS CO. INC. LAHORE 61
THE EASTERN FEDERAL UNION INSURANCE 1,023
Sub-Totals : 50,968 0.01

AS AT 30 JUNE 2016
Categories of Shareholders Shares Held Percentage
NIT AND ICP
INVESTMENT CORPORATION OF PAKISTAN 564

NATIONAL BANK OF PAKISTAN 363
Sub-Totals : 927 0.00
OTHERS
IGI FINEX SECURITIES LIMITED 1

ADHI SECURITIES (PVT.) LIMITED. 900
ASIAN SECURITIES LIMITED 105,100
PRUDENTIAL SECURITIES LIMITED 500
Y.S. SECURITIES & SERVICES (PVT.) LIMITED 44
PREMIER FASHIONS (PVT.) LIMITED 80,000
SIZA (PRIVATE) LIMITED 72,600
AGA KHAN UNIVERSITY EMPLOYEES P.F 10,000
YOUSUF YAQOOB KOLIA AND COMPANY (PVT.) LIMITED 51,700
TRUSTEE NATIONAL BANK OF PAKISTAN EMPLOY 40,959
TRUSTEE NATIONAL BANK OF PAKISTAN EMP BE 1,437
SARFRAZ MAHMOOD (PRIVATE) LIMITED 71
MAPLE LEAF CAPITAL LIMITED 1
HI-TECH COMPUTERS ASSOCIATES (PVT.) LTD 53
FDM CAPITAL SECURITIES (PVT.) LIMITED 7,500
BANDENAWAZ (PVT.) LIMITED 5,000
RAHIMTOOLA MANAGEMENT (PVT.) LIMITED 1,500
FAIR DEAL SECURITIES (PVT) LIMITED 500
MUHAMMAD AHMED NADEEM SECURITIES (SMC-PVT.) LIMITED 64
DR. ARSLAN RAZAQUE SECURITIES (SMC-PVT.) LIMITED 150
FAIR DEAL SECURITIES (PVT.) LIMITED 50
FIKREE'S (SMC-PVT.) LIMITED 136
CDC - TRUSTEE NATIONAL INVESTMENT (UNIT) 447,020
NAEEM'S SECURITIES LIMITED 2,292
KAZI & KAZI LIMITED 79
ADAMJEE SONS LIMITED 9
M/S. MAMOON JI ALI BHOY 209
M/S. TECHNICAL SERVICES ASSOCIATION 154
HABIB BANK LIMITED A/C AHMED MOTORS LIMITED 44
THE AHMEDIYYA ANJUMAN ISHEUT-I-ISLAM 246
AHMED MOTORS LIMITED 158
M.F. CORPORATION LIMITED 440
M/S. SHERIAR F. IRANI INVESTMENT 96
GHARIBWAL CEMENT LIMITED 3,740
PUNJAB COOPERATIVE BOARD FOR LIQUIDATION 374
NH SECURITIES (PVT.) LIMITED 44
M/S. MIR AFZAL KHAN & BROS. 180
Sub-Totals : 833,351 0.14
Individual
Individuals 137,032,652
Sub-Totals : 137,032,652 23.65
G-Totals : 579,384,918 100.00

PROXY FORM
The Company Secretary Folio No. /
Bestway Cement Limited CDC A/C No.
Shares held
F-7 Markaz, Islamabad.
I/We of
being a member (s) of Bestway Cement Limited (the ‘Company’) hereby appoint Mr./Mrs./Miss
_________________ of ____________ or failing him/her Mr./M r s . / M i s s ___________________ of ___________
(being member(s) of the Company as my/our Proxy to attend and vote for me/us and on my/our behalf at
the Annual General Meeting of the Company to be held on Friday December 09, 2016 at 3:00 p.m at the
SAY NO TO Registered Office, Bestway Building, 19-A, College Road, F-7 Markaz, Islamabad and at every adjournment
thereof.
CORRUPTION Signed this ____________________________________ day of ________________2016.
1. Witness:
Signature AFFIX
Name REVENUE
CNIC/Passport No. STAMP
Address
2. Witness:
Signature Signature________________
Name (Signature appended above
CNIC/Passport No. should agree with the
Address specimen signatures
registered with the
Company.)
Important:
1. This form of proxy, duly completed and signed, must be received at the Registered Office of the Company,
Bestway Building, 19-A, College Road, F-7 Markaz, Islamabad not less than 48 hours before the time of
holding meeting.
2. No person shall act as proxy unless he/she himself/herself is a member of the Company, except that a
corporation may appoint a person who is not a member.
3. If a member appoints more than one proxy and more than one instrument of proxy is deposited by the
member with the Company, all such instruments of proxy shall be rendered invalid.
For CDC Account Holders the following requirements have to be met:
(i) The form of proxy shall be witnessed by two persons whose names, addresses and CNIC numbers shall be
mentioned on the form.
(ii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the
form of proxy.
(iii) The proxy shall produce his original CNIC or original passport at the time of meeting.
(iv) In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature
shall be submitted (unless it has been provided earlier) alongwith the form of proxy to the Company.

PROXY FORM
The Company Secretary Folio No. /
Bestway Cement Limited CDC A/C No.
Shares held
F-7 Markaz, Islamabad.
I/We of
being a member (s) of Bestway Cement Limited (the ‘Company’) hereby appoint Mr./Mrs./Miss
_________________ of ____________ or failing him/her Mr./M r s . / M i s s ___________________ of ___________
(being member(s) of the Company as my/our Proxy to attend and vote for me/us and on my/our behalf at
the Annual General Meeting of the Company to be held on Friday December 09, 2016 at 3:00 p.m at the
SAY NO TO Registered Office, Bestway Building, 19-A, College Road, F-7 Markaz, Islamabad and at every adjournment
thereof.
CORRUPTION Signed this ____________________________________ day of ________________2016.
1. Witness:
Signature AFFIX
Name REVENUE
CNIC/Passport No. STAMP
Address
2. Witness:
Signature Signature________________
Name (Signature appended above
CNIC/Passport No. should agree with the
Address specimen signatures
registered with the
Company.)
Important:
1. This form of proxy, duly completed and signed, must be received at the Registered Office of the Company,
Bestway Building, 19-A, College Road, F-7 Markaz, Islamabad not less than 48 hours before the time of
holding meeting.
2. No person shall act as proxy unless he/she himself/herself is a member of the Company, except that a
corporation may appoint a person who is not a member.
3. If a member appoints more than one proxy and more than one instrument of proxy is deposited by the
member with the Company, all such instruments of proxy shall be rendered invalid.
For CDC Account Holders the following requirements have to be met:
(i) The form of proxy shall be witnessed by two persons whose names, addresses and CNIC numbers shall be
mentioned on the form.
(ii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the
form of proxy.
(iii) The proxy shall produce his original CNIC or original passport at the time of meeting.
(iv) In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature
shall be submitted (unless it has been provided earlier) alongwith the form of proxy to the Company.

Building
on Strength
ANNUAL REPORT 2016

F-7 Markaz, Islamabad 44000, Pakistan
Tel: +92 51 265 4856-64, Fax: +92 51 265 4865-66
UAN: +92 51 111 111 722 www.bestway.com.pk

Annual 2015-16 Accounts PDF

Enviado por

Dados do documento

Título original

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Annual 2015-16 Accounts PDF

Enviado por

Direitos autorais:

Formatos disponíveis

Building

Bestway Building, 19-A, College Road,

04 Annual Report 2016 Bestway Cement Limited 05

04 Annual Report 2016 Bestway Cement Limited 05

• Consistently produce high quality cement.

06 Annual Report 2016 Bestway Cement Limited 07

• Consistently produce high quality cement.

06 Annual Report 2016 Bestway Cement Limited 07

08 Annual Report 2016 Bestway Cement Limited 09

08 Annual Report 2016 Bestway Cement Limited 09

12 Annual Report 2016 Bestway Cement Limited 13

12 Annual Report 2016 Bestway Cement Limited 13

SHAREHOLDERS Operating Highlights

14 Annual Report 2016 Bestway Cement Limited 15

SHAREHOLDERS Operating Highlights

14 Annual Report 2016 Bestway Cement Limited 15

16 Annual Report 2016 Bestway Cement Limited 17

16 Annual Report 2016 Bestway Cement Limited 17

Zameer Mohammed Choudrey Muhammad Irfan A. Sheikh

18 Annual Report 2016 Bestway Cement Limited 19

Zameer Mohammed Choudrey Muhammad Irfan A. Sheikh

18 Annual Report 2016 Bestway Cement Limited 19

WITH THE CODE OF CORPORATE

20 Annual Report 2016 Bestway Cement Limited 21

WITH THE CODE OF CORPORATE

20 Annual Report 2016 Bestway Cement Limited 21

22 Annual Report 2016 Bestway Cement Limited 23

22 Annual Report 2016 Bestway Cement Limited 23

PRACTICES OF THE CODE OF

24 Annual Report 2016 Bestway Cement Limited 25

PRACTICES OF THE CODE OF

24 Annual Report 2016 Bestway Cement Limited 25

26 Annual Report 2016 Bestway Cement Limited 27

FIRE & SAFETY TRAINING AWARDS

28 Annual Report 2016 Bestway Cement Limited 29

FIRE & SAFETY TRAINING AWARDS

28 Annual Report 2016 Bestway Cement Limited 29

DISTRIBUTORS' ENGAGEMENT &

30 Annual Report 2016 Bestway Cement Limited 31

DISTRIBUTORS' ENGAGEMENT &

30 Annual Report 2016 Bestway Cement Limited 31

30 June 30 June 01 July

Issued, subscribed and paid up share capital 9 5,793,849 5,793,849 5,793,849

NON CURRENT LIABILITIES

Long term financing 12 9,900,000 14,498,584 -

Trade and other payables 15 7,047,658 6,131,988 4,899,142

77,820,154 79,861,191 41,376,503

The annexed notes 1 to 51 form an integral part of these financial statements.

34 Annual Report 2016

30 June 30 June 01 July

Property, plant and equipment 18 42,955,029 43,448,134 24,224,368

Stores, spares parts and loose tools 23 6,045,626 4,223,925 4,044,671

77,820,154 79,861,191 41,376,503

Bestway Cement Limited 35

Turnover - net 31 45,721,040 32,693,050

Administrative expenses 33 (2,463,969) (755,012)

Taxation 38 (5,197,577) (2,446,950)

Profit for the year 11,880,417 9,620,818

Profit attributable to:

Earnings per share - basic and diluted 39 20.16 16.56

The annexed notes 1 to 51 form an integral part of these financial statements.

36 Annual Report 2016

Profit for the year 11,880,417 9,620,818