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I
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9260 of the document.]
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CEMCIAL
STATE
ENT
MENTS
COM
PAN
Y
LIMI
TED
PRESENTED TO:
SIR MAQBOOL-UR-REHMAN
PRESENTED BY:
ID# 9260
The cement plant operating in the Fauji Cement is one of the most efficient
and best maintained in the Country and has an annual production capacity of
1.165 million tons of cement. The quality portland cement produced at this
plant is the best in the Country and is preferred in the construction of
highways, bridges, commercial and industrial complexes, residential homes,
and a myriad of other structures, fundamental to Pakistan's economic vitality
and quality of life.
In line with the Cement Industry, Fauji Cement has signed a contract with
Polysius, a German cement plant manufacturing firm for installation of state
of the art, the largest single line (7200 tons per day of clinker) ever
commissioned in Pakistan. Meaningful expansion will help the Company to
expand its market share. The project is expected to be commissioned in the
3rd/4th quarter of 2010.
COMPANY HISTORY
Fauji Cement Company Limited was sponsored by Fauji Foundation and
incorporated as a public limited company on 23 November 1992. It obtained
the Certificate of Commencement of Business on 22 May 1993. The
Company has been setup with primary objective of producing and selling
Ordinary Portland Cement (OPC). For the purpose of selection of sound
process technology, state of the art equipment, civil design and project
monitoring, local and foreign consultants were engaged.
The Company entered into a contract with World renowned cement plant
manufacturers M/s F.L. Smidth to carry out design, engineering,
procurement, manufacturing, delivery, erection, installation, testing and
commissioning at site of a new, state of the art, cement plant including all
auxiliary and ancillary equipment, complete in all respects for the purpose of
manufacturing a minimum of 3,000 tpd clinker and corresponding quantity of
Ordinary Portland Cement as per Pakistan/ British Standard Specifications.
The contract came into force on 1 January 1994. Physical work on the project
started in August 1994.
In line with the Cement Industry, Fauji Cement has signed a contract with
Polysius, a German cement plant manufacturing firm for installation of state
of the art, the largest single line (7200 tons per day of clinker) ever
commissioned in Pakistan. Meaningful expansion will help the Company to
expand its market share. The project is expected to be commissioned in the
3rd/4th quarter of 2010.
BUSINESS
The Company has been set up with the primary objective of producing and
selling ordinary Portland cement. The finest quality of cement is available for
all types of customers whether for dams, canals, industrial structures,
highways, commercial or residential needs using latest state of the art dry
process cement manufacturing process.
VISION
To transform FCCL into a role model cement manufacturing Company fully
aware of generally accepted principles of corporate social responsibilities
engaged in nation building through most efficient utilization of resources and
optimally benefiting all stake holders while enjoying public respect and
goodwill.
MISSION
FCCL while maintaining its leading position in quality of cement and through
greater market outreach will build up and improve its value addition with a
view to ensuring optimum returns to the shareholders.
STRATEGIES
We shall achieve our vision by maintaining high quality product, relentless
pursuit of customer satisfaction, empowering FCCL employees to lead
cement industry and achieve manufacturing excellence, producing superior
returns to our shareholders.
VALUES
We listen to our customers and improve our product to meet their present
Customers
and future needs.
Our success depends upon high performing people working together in a safe
People and healthy work place where diversity, development and team work are
valued and recognized.
We expect superior performance and results. Our leaders set clear goals and
Accountability
expectations, are supportive and provide and seek frequent feed back.
We support the communities where we do business, hold ourselves to the
Social
highest standards of ethical conduct and environment responsibility, and
Responsibility
communicate openly with public and FCCL employees.
MANAGEMENT
Board of Directors
- Clinker 95%
- Gypsum 5%
28 days compressive strength up to 9000 psi
- ASTM-C-150, Type I
- BS EN-197-1, Strength Class 42.5 N
Quality Policy
• Fauji Cement Company supplies cement throughout Pakistan especially in the provinces of
Punjab, AJK and NWFP through extensive dealer’s network.
• Fauji cement is a first choice for all hydro electric power projects and projects which
specially requires strength and durability to overcome structural problems.
Direct Sales
Direct sales have been made to mega and large projects. Some of them are:-
- CGGC- CMEC- NJ (Neelum Jehlum Hydro Electric Power Project), Muzaffarabad City
- Mangla Dam Raising Development Project
- Motorway (M1-Project, Islamabad-Peshawar)
- Bahria Town / Safari Villas, Rawalpindi City
- Pak Gulf Construction Pvt Ltd (CENTAURUS)
- Karakorum Highway (KKH Project) Islamabad
- Dong Fang Electric Corp, Batagram, NWFP
- Yucel Turk Const (Pvt)Ltd, Mansehra City
- Sino Hydro Power Project, Duber Khwar, Bisham Swat City
- Siyahkalem Engineering,Construction Company, Muzaffarabad City
- Essem Hotel and Serena Hotel, Islamabad.
- Malakand (Dargai) Hydro Power Projects
- Army Housing Schemes
- Air Force Housing Schemes
- National Logistic Cell Projects
- Fauji Foundation Projects
- Agha Khan Development Network, Muzaffarabad City.
- Projects of Izhar Group of Industries.
- Mineral Development Project, Islamabad.
- A Q Khan Laboratory, Rawalpindi City
- National Highway Authority Projects
- Shifa International Hospital, Islamabad.
- Habib Rafique (Pvt)Ltd, Islamabad.
Exports
Fauji Cement is one of the major exporters of cement to Afghanistan, with an effective
presence in all cities. Our dealer’s network effectively cover the markets of Jalalbad, Kabul,
Northern Afghanistan (Kunduz-Mazar Sharif and surrounding areas) and other markets of
Afghanistan.
We also export to Tajikistan and India.
INVESTORS
Pattern of the shareholding is as under
Shares Percentage
Company Snapshot
===========================================
Symbol FCCL
-------------------------------------------
Nature of the Business Cement Production
Market Price Rs 4.94
Outstanding Shares 741,988
Market Capitalization 3,665,421
EPS Rs 0.31
Price/Earnings 20.87
Production Of Selected Large-Scale Manufacturing Items
Perce
ntage Adj Percentage
Adjus Chang ust Change
e We
Weig ted ed
Items Items igh
hts Weig We F
ts
hts FY FY igh Y
ts 1 FY11
10 11
0
- Automobil 3.9 5.2 2
24.49 32.62
Textile 0.0 14. e 55 68 3.
2 3
3 6
- Cars & 2.5 3.3 -
13.06 17.40 -
Cotton Yarn 12. jeeps 34 75 0.
6 4 0.3
9 3
Tractors 0.7 0.9 2
10.05 -
Cotton Cloth 7.549 2.6 00 32 6.
6 3.1
6
LCVs 0.4 0.5 -
13. 41 87 3
Cotton Ginned 3.368 4.486 0.0
0 7.
0
- - 0.1 0.1 2
Other Five Items 0.509 0.677 13. 32. Motorcycle 37 82 8.
5 3s 2
Buses 0.0 0.1 -
Food, Beverages & 14.35 19.11 - - 84 12 2
Tobacco 2 6 4.1 5.3 2.
2
Trucks 0.0 0.0 -
60 80 4
Vegetable Ghee 4.242 5.651 3.0 2.4
5.
9
Metal 3.4 4.6 -
industries 75 28 5
Sugar 4.150 5.527 0.0 0.0
0.
5
Pig iron 1.6 2.1 -
-
- 13 49 6
Cigarettes 3.055 4.069 12.
3.4 2.
4
2
Coke 1.4 1.9 4
17. 20.
Cooking Oil 1.319 1.757 41 19 0.
9 4
6
Billets 0.3 0.4 -
40 52 4
Wheat Milling 0.988 1.315 6.2 6.1
6.
6
H.R/coils 0.0 0.1 -
- - and plates 81 08 5
Tea 0.319 0.425
3.5 8.3 5.
4
-
15.
Beverages 0.279 0.372 12.
8
8
- Fertilizers 3.3 4.5 -
Petroleum products 5.232 6.969 20. 5.9 83 06 2.
1 7
1.8 2.5 -
Pharmaceuticals 5.030 6.700 0.5 0.0 Phosphatic 85 11 9.
9
1.4 1.9 -
Tablets 2.575 3.430 0.4 0.7 Nitrogenou 98 95 1.
s 4
- 11. Electronic 2.4 3.3 3.
Syrup 1.525 2.031
1.2 3 s 85 10 2
Electric 0.5 0.7 -
Injections 0.444 0.591 36.
1.3 s 2.
3
5
0.5 0.7 4.
10.
Capsules 0.217 0.289 2.5 Refrigerato 89 85 9
3
rs
Deep 0.3 0.5 3
28.
Other Two Items 0.270 0.359 4.0 freezers 99 32 7.
0
9
TV sets 0.2 0.3 -
- 26 02 4
Chemicals 4.800 6.393 7.7
2.1 2.
1
- Air 0.0 0.0 3
-
Caustic Soda 0.731 0.974 26. conditioner 74 99 5.
5.7
4 s 1
Electric 0.1 0.2 1
12.
Soda Ash 0.088 0.551 5.0 Fans 83 43 4.
8
2
Other five 0.4 0.5 6.
Other Ten Items 3.981 4.869 0.8 3.8
items 44 91 4
24. Engineerin 0.4 0.5 9.
Non Metallic Minerals 4.192 5.583 9.1
8 g items 46 94 3
Safety 0.2 0.3 5.
13. -
Cement 4.141 5.516 razor 60 46 0
5 4.7
blades
- Bicycles 0.0 0.0 3
Glass Sheets 0.051 0.067 2.1 13. 64 86 3.
0 9
Sewing 0.0 0.1 -
- 37. machines 81 07 1
Leather Products 2.272 3.027
9.3 3 6.
1
- Power 0.0 0.0 2
22.
Paper & Board 0.600 0.799 10. looms 16 21 2.
8
1 6
Diesel 0.0 0.0 -
38. - engines 11 15 5
Tyres & Tubes 0.303 0.404
3 0.5 1.
2
- Other five 0.0 0.0 -
29.
Wood Products 0.030 0.040 61. items 14 19 8.
0
9 9
-
1.
Overall Growth
0
ANALYSIS OF FINANCIAL
STATEMENTS
2000-2009
Fauji Cement Co Ltd
Summarized Income Statement
Less : Sales tax and excise duty 978,254 951,031 1,076,219 1,397,317 1,316,753
Factory Overhead
Other General and Admin Expenses 7,917 14,542 13,991 22,706 23,095
The current ratio determines short term debt paying ability and is computed as:
Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Interpretation
In the above table the ratio is increasing in the first years that mean the company
has more funds to pay its current liabilities. But in the coming year there is a
decrease in the ratio. That affects the company’s debt paying ability. In the last two
years the ratio increased due to increase in the current assets. So that is the
positive sign for the company. It increases the short term, liquidity of the company
and it attracts the short term loan providers on the cost of profitability.
The acid test ratio relates the most liquid assets to current liabilities. Inventory is
removed from current assets when computing the acid test ratio. Reason for
removing inventory is that inventory may be slow moving or possibly obsolete and
parts of the inventory may have been pledged to specific creditors.
Acid Test Ratio / Quick Ratio = (Current Assets – Inventory) / Current
Liabilities
Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Interpretation
In the above table we can see that there is a decreasing trend in the ratio. This ratio
is taken on the basis of quick assets (cash or cash equivalents). The main reason of
the decline is the increase in the current liabilities. The other reason is increase in
the inventory that decreases the required ratio.
• Cash Ratio
The best indicator for the company’s short term liquidity may be the cash ratio. It is
computed as follows,
Cash & Cash Equivalent & 193992 197088 603110 847590 423133
Marketable Securities
0.80
0.67
0.70
Cash Ratio ( Times)
Interpretation
A high cash ratio indicates that the firm is not using its cash to its best advantage. A
cash ratio that is too low could indicate an immediate problem with paying bills.