Annual 2008

GHARIBWAL CEMENT LIMITED
Contents
Company Profile
Vision & Mission
Notice of Annual General Meeting
Statement U/S 160 of the Companies Ordinance, 1984
Statement of Compliance
Statement of Ethics and Business Practices
Review Report to the Members
Directors’ Report to the Members
Summary of Last Ten Years’ Financial Results
Pattern of Shareholding
Auditors’ Report to the Members
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Accounts
Form of Proxy
1 ANNUAL REPORT 2008
ents
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REPORT 2008
Company Profile
BOARD OF DIRECTORS
Mr. Muhammad Tousif Peracha
Chairman & Chief Executive
Mr. Abdur Rafique Khan
Mrs. Tabassum Tousif Peracha
Mr. Ali Rashid Khan
Mrs. Amna Khan
Mr. M. Niaz Piracha
Mr. Asif Muhammad Ali AUDIT COMMITTEE

BANKERS Chairperson and Member
Askari Bank Limited Mr. M. Niaz Piracha
Citibank N.A.
Faysal Bank Limited Mr. Asif M. Ali
Habib Bank Limited
KASB Bank Limited CHIEF FINANCIAL OFFICER
MCB Bank Limited Mr. Waqar Naeem
My Bank Limited
(Bolan Bank Limited)
National Bank of Pakistan COMPANY SECRETARY
NIB Bank Limited
Mr. Abbas Rashid Siddiqi
Saudi Pak Commercial Bank Limited
The Bank of Khyber AUDITORS
The Bank of Punjab
The Royal Bank of Scotland
(ABN AMRO Bank (Pakistan) Limited) M/s. Viqar A. Khan & Co.
Chartered Accountants
United Bank Limited
REGISTERED OFFICE INTERNAL AUDITORS
34 Main Gulberg, P.O. Box 1285, Lahore. M/s. Aftab Nabi & Co.
Chartered Accountants
UAN : 042 111210310
Fax : 042 5871039 & 59
Email: info@gharibwalcement.com LEGAL ADVISOR
M/s. Bandial & Associates, Lahore.
WORKS
Ismailwal, Distt. Chakwal SHARES REGISTRAR
M/s. Corplink (Pvt.) Limited
WEBSITE Shares Registrar, Wings Arcade,
www.gharibwalcement.com 1K, Commercial,
Model Town, Lahore.
Tel: 0425887262, 5839182
Fax: 0425869037
m Tousif Peracha
and Member
NCIAL OFFICER
ECRETARY
& Associates, Lahore.
(Pvt.) Limited
ar, Wings Arcade,
Vision Statement
GHARIBWAL has been at the forefront in building a strong and solid Pakistan being
GHARIBWAL strives to ensure and maintain its excellence in the field of
GHARIBWAL envisions that the administrative and financial reforms
GHARIBWAL’s new cement plant, situated in the Punjab province near the
GHARIBWAL accordingly has a focused vision to rank high in performance
Mission Statement
GHARIBWAL’s mission is to constantly seek excellence in all spheres of its
GHARIBWAL’s mission is to promote mutually satisfactory relationships

ng and solid Pakistan being produced from the new cement plant shall strive
ce in the field of
province near the
igh in performance
ment
PAIDAR CEMENT
y relationships
Notice of Annual Gener

NOTICE is hereby given that the 48th Annual General Meeting of the shareholders of Gharibwal
Ordinary Business
1 To confirm the minutes of the Extra Ordinary General Meeting (E.O.G.M.) of the Mem
held on 3rd December 2007.
2 To receive, consider and adopt the Annual Audited Accounts of the Company for the
ended June 30, 2008 together with the Auditors’ and Directors’ Reports thereon.
3 To appoint the Auditors and to fix their remuneration. The retiring auditors M/s. Viq
Khan & Co., Chartered Accountants are eligible for reappointment. However, Board
Special Business
4 To renew and enhance the temporary short term advance facility from Rs. 50.00 Milli
300.00 Million accorded by the Company to Balochistan Glass Limited (BGL), an asso
“RESOLVED that the consent and approval of the members of the Company be and i
accorded under Section 208 of the Companies Ordinance, 1984 for renewal of the tem
FURTHER RESOLVED
that Company Secretary be and is hereby authorized to give effect
to the above resolution, take all necessary steps as required by the Companies Ordina
Other Business
5 To transact any other business with the permission of the Chair.
The Statement Under Section 160(1)(b) of The Companies Ordinance, 1984, pertaining to the
By Order of the Board
Lahore : October 04, 2008 ABBAS RASHID SIDDIQI
Company Secretary

nual General Meeting
shareholders of Gharibwal
eeting (E.O.G.M.) of the Members
ounts of the Company for the year
ectors’ Reports thereon.
he retiring auditors M/s. Viqar A.
ppointment. However, Board Audit
e facility from Rs. 50.00 Million to Rs.
Glass Limited (BGL), an associated
bers of the Company be and is hereby
, 1984 for renewal of the temporary
authorized to give effect
ed by the Companies Ordinance, 1984
e, 1984, pertaining to the
y Order of the Board
ABBAS RASHID SIDDIQI
Company Secretary
REPORT 2008
Notice of Annual Gener

NOTES:
1 The Register of Members and the Share Transfer Books of the Company will remain c
from Saturday, October 25, 2008 to Friday, October 31, 2008 (both days inclusive). Tra
2 A member of the Company entitled to attend and vote at the Meeting may appoint an
member as his/her proxy to attend and vote on his/her behalf. An instrument appoi
3 CDC shareholders are requested to bring their original CNIC Card, Account and Par
I.D. Numbers and will further have to follow the guidelines as laid down in SECP’s C
4 Members are requested to quote their Folio Number in all correspondence and at the
attending the Meeting.
5 Members are requested to notify any change in their address / contact numbers imm
to the Company’s Shares Registrar, M/s. Corplink (Pvt.) Ltd., Wings Arcade, 1K, Co

nual General Meeting
of the Company will remain closed
008 (both days inclusive). Transfers,
t the Meeting may appoint another
behalf. An instrument appointing a
CNIC Card, Account and Participant
nes as laid down in SECP’s Circular
ll correspondence and at the time of
dress / contact numbers immediately
Ltd., Wings Arcade, 1K, Commercial
STATEMENT U/S 160 OF THE COMPANIES ORDINANCE, 1984
ITEM NO.4 TO ACCORD TEMPORARY SHORT TERM ADVANCE FACILITY TO BALO
Name of the investee Company
– Balochistan Glass Limited (BGL) is an associated company of
Outstanding Advance
– Neither any advance is outstanding as at June 30, 2008 nor has any loan
Financial position of the investee company
– Based on the latest unaudited financial statements
Rupees in
Million
Paid up Capital 858 Long Term Loans / Leases

and Liabilities
Share Premium Reserve Nil
Sponsors' Loans long term
Accumulated Loss 505.77
Fixed Capital Expenditure
Fixed Assets 1322.72
Rate of markup
– Markup will be charged at a rate of 1% above the rate charged to the Company
Long Term Loans & Deposit
Net Current Assets 354.12
Particulars of collateral security
– Management does not consider it necessary to obtain collateral
Source of funds
– The advance will be advanced out of the Company’s available surplus funds.
Repayment schedule
– The advance would be for a period of one year and would be renewable
Personal interest of the directors of GCL The directors of GCL are interested in the business to

NCE FACILITY TO BALOCHISTAN GLASS LTD.
sociated company of
nor has any loan
ited financial statements
Rupees in
Million
522.75
816.45
20.05
14.6
ary to obtain collateral
vailable surplus funds.
ould be renewable
nterested in the business to
Statement of Comp
with the Code of Corpor
This Statement is being presented to comply with the Code of Corporate Governance contained in
The Company has applied the principles contained in the Code in the following manner:
1 The Company encourages representation of independent nonexecutive directors on
of Directors. At present, the Board includes four nonexecutive directors.
2 The directors have confirmed that none of them is serving as a director in more than
companies, including this Company.
3 To the best of our knowledge, all the resident directors of the Company are registered
taxpayers and none of them has defaulted in payment of any loan to a banking comp
4 There were 4 casual vacancies in the Board during the year, which were immediately
up. The details are as under :
(a) Mr. Abdul Shoeb Piracha resigned as Director of the Company and in h
Mrs. Amna Khan was appointed as Director of the Company on 30th O
(b) Mr. Aameen Taqi Butt resigned as Director of the Company and in his
Muhammad Ali was appointed as Director of the Company on 22nd N
(c) Mr. Muhammad Saleem Peracha was removed / retired as Director of
the E.O.G.M. held on 3rd December 2007 and in his place Mr. M. Niaz P
(d) Mr. M. Ishaque Khokhar resigned as Director of the Company and in his place Mr
Rashid Khan was appointed as Director of the Company on 5th Decem
5 The Company has prepared a “Statement of Ethics and Business Practices”, which ha
signed by all the directors and employees of the Company.
6 The Board has developed a vision and mission statement, overall corporate strategy a
significant policies of the Company. A complete record of particulars of significant po
7 All the powers of the Board have been duly exercised and decisions on material trans
including appointment and determination of remuneration and terms and conditions
8 The meetings of the Board were presided over by the Chairman and in his absence, b
Director elected by the Board for this purpose and the Board met at least once in ever

nt of Compliance
of Corporate Governance
te Governance contained in
e following manner:
t nonexecutive directors on its Board
cutive directors.
g as a director in more than ten listed
f the Company are registered as
any loan to a banking company, a
ear, which were immediately filled
ctor of the Company and in his place
or of the Company on 30th October 2007 for
r of the Company and in his place Mr. Asif
of the Company on 22nd November 2007 for
oved / retired as Director of the Company in
nd in his place Mr. M. Niaz Paracha was
Company and in his place Mr. Ali
the Company on 5th December 2007 for the
Business Practices”, which has been
t, overall corporate strategy and
of particulars of significant policies
d decisions on material transactions,
on and terms and conditions of
airman and in his absence, by a
oard met at least once in every quarter.
REPORT 2008
9 In house orientation courses for the directors have been arranged for them during the
apprise them of their duties and responsibilities.
10 Mr. Iqbal Ahmed Rizvi resigned from the office of CFO & Chief Accountant during t
on 31st October 2007 and his resignation was duly accepted by the Board on that date
11 The directors’ report for this year has been prepared in compliance with the requirem
the Code and it fully describes the salient matters required to be disclosed.
12 The financial statements of the Company were duly endorsed by the two Directors of
Company duly authorized for this purpose instead of CEO as the CEO is out of Pakis
13 The directors, CEO and executives do not hold any interest in the shares of the Comp
than that disclosed in the pattern of shareholding.
14 The Company has complied with all the corporate and financial reporting requireme
Code.
15 The Board has formed an Audit Committee. It comprises three members, of whom tw
nonexecutive directors including the Chairman / Chairperson of the Committee. Th
16 The meetings of the Audit Committee were held at least once every quarter prior to a
of interim and final results of the Company and as required by the Code. The terms o
17 The Board has outsourced the internal audit function to M/s. Aftab Nabi & Co., Cha
Accountants, who are considered suitably qualified and experienced for the purpose
18 The statutory auditors of the Company have confirmed that they have been given a s
rating under the quality control review programme of the Institute of Chartered Acco
19 The statutory auditors or the persons associated with them have not been appointed
other services except in accordance with the listing regulations and the auditors have
20 The management of the Company is committed to good corporate governance, and a
steps are being taken to comply with the best practices.
Dated : October 04, 2008
(ASIF MUHAMMAD ALI) (ABDUR RAFIQUE KHAN)
Director Director
Statement under Section 241(2) of the Companies Ordinance, 1984

arranged for them during the year to
& Chief Accountant during the year
ted by the Board on that date. In his
ompliance with the requirements of
ed to be disclosed.
orsed by the two Directors of the
EO as the CEO is out of Pakistan and
est in the shares of the Company other
nancial reporting requirements of the
s three members, of whom two are
person of the Committee. The Company
once every quarter prior to approval
red by the Code. The terms of reference
M/s. Aftab Nabi & Co., Chartered
experienced for the purpose and are
hat they have been given a satisfactory
e Institute of Chartered Accountants
em have not been appointed to provide
ations and the auditors have confirmed
corporate governance, and appropriate
ABDUR RAFIQUE KHAN)

Statement of Ethic
and Business Pract
Introduction – Gharibwal Cement Limited is committed to allround excellence in th
Code of Conduct – Gharibwal Cement Limited steadfastly adheres to implementing tran
Employees – Gharibwal Cement Limited has a historical track record of outstanding manageme
Community – Gharibwal Cement Limited observes and pursues good community r
Quality Assurance – Gharibwal Cement Limited produces durable “Ordinary Portland Ce
Public Relations – Gharibwal Cement Limited is an independent public limited compan
Financial Reporting – Gharibwal Cement Limited deals with all its valued stakeholders, es
Conclusion – Gharibwal Cement Limited shall ensure that this Statement of Ethics

nt of Ethics
ness Practices
d to allround excellence in the sphere of
dheres to implementing transparent
d of outstanding management
d pursues good community relations.
rable “Ordinary Portland Cement”
ndent public limited company, listed
ll its valued stakeholders, especially
that this Statement of Ethics & Business
REPORT 2008
Review Report to the Memb

on Statement of Compliance wit
of Code of Corporate Govern
We have reviewed the Statement of Compliance with the best practices contained in the Code of
The responsibility for compliance with the Code of Corporate Governance is that of the Board of
As part of our audit of financial statements we are required to obtain an understanding of the
Based on our review, nothing has come to our attention which causes us to believe that the Stateme
M/S. VIQAR A. KHAN
Lahore: October 04, 2008 CHARTERED ACCOUNTANTS

the Members
liance with Best Practices
ate Governance
s contained in the Code of
ance is that of the Board of
n understanding of the
us to believe that the Statement
D ACCOUNTANTS
Directors’ Report to the Me

Your Directors have pleasure in submitting the Annual Report along with the audited financial
Operational Performance of the Old Cement Plant

Your company has been in production since the early sixties operating with three kilns based on
Clinker Production M. Tons 2008
Cement Production M. Tons Nil
Despatches M. Tons Nil

The operation of the plant had become uneconomical and thus was closed during the year ending
Operating Results
The Company has posted Loss per share of Rs.1.40 for the year ended June 30, 2008 as against Loss
During the year under review, the Company suffered Loss before Taxation of Rs.363.082 million
The management has tried to be frugal and has endeavored to control any wasteful expenditure.

to the Members
with the audited financial
with three kilns based on
Nil 162124 2007
202225
201563
sed during the year ending
June 30, 2008 as against Loss
ation of Rs.363.082 million
any wasteful expenditure.

to match the fixed and semi variable expenses with sale revenues. The Rs. 363 million loss for the
Dividends
The Board has not recommended any dividend for the shareholders for the year ended June 30,
Future Prospects
In 2005 your Company embarked on setting up a new 6700 TPD clinker production capacity plant
By the Grace of Almighty Allah, the new plant began producing clinker from the 25th of July 2008.
“PAIDAR CEMENT”
We are pleased to report that your

Rs. 363 million loss for the
r the year ended June 30,
r production capacity plant
er from the 25th of July 2008.
Significant Plans & Decisions
(a) Financial
We are pleased to report that the 3rd Right Share (R3) issue of the Company comprising 60 Million
(b) Expansion Project
In 2005 the company embarked on setting
(c) Manpower Transition and
The management of the Company has
Fixed Assets Register
During the financial year under review, the management has outsourced the upgradation of the
Corporate and Financial Reporting Framework

The management is fully aware of the compliance with Code of Corporate Governance and steps
Statements as required by the Code are given below:
1 Presentation of Financial Statements
– The financial statements prepared by the management
present fairly the Company’s state of affairs, the results of its operations, cash flows,
2 Books of Account
– Proper books of account have been maintained;
3 Accounting Policies
– Appropriate accounting policies have been consistently applied in
preparation of financial statements and accounting estimates are based on reasonable

mpany comprising 60 Million
ced the upgradation of the
rate Governance and steps
repared by the management
of its operations, cash flows, and
en consistently applied in
mates are based on reasonable and
4 Compliance with International Accounting Standards (IAS)
Standards (IAS), as applicable in Pakistan, have been followed in preparation of the f
5 Internal Control System – The system of internal control is sound in design and h
effectively implemented and is being monitored continuously. The review will contin
6 Going Concern – There are no doubts on the Company’s ability to contin
7 Best Practices of Corporate Governance – There has been no material
Practices of Corporate Governance, as detailed in the listing regulations wherever ap
8 Financial Highlights – Key operating and financial data of last ten years is ann
9 Outstanding Statutory Dues – There are no outstanding payments on ac
levies and charges, which are outstanding as at June 30, 2008 except for those disclose
10 Statements of value of Staff Retirement Funds
Retirement Funds are as follows:
Gratuity Fund as at June 30, 2008 (Unaudited) Rs. 0.493 millio
11 Board Meetings – During the year, 8 (eight) meetings of the Board of Dire
Attendance by each Director at the Board Meeting is as under:
Mr. M. Tousif Peracha
Mr. A. Rafique Khan
Mr. A. Shoeb Piracha
Mr. M. Saleem Peracha
Mr. M. Ishaque Khokhar
Mr. Aameen Taqi Butt
Mrs. Amna Khan
(appointed Director in place of Mr. A. Shoeb Piracha resigned)
Mr. Asif Muhammad Ali
(appointed Director in place of Mr. Aameen Taqi Butt resigned)
Mr. M. Niaz Paracha
(appointed Director in place of Mr. M. Saleem Peracha retired)
Mr. Ali Rashid Khan
(appointed Director in place of Mr. M. Ishaque Khokhar resigned)
Mr. M. Ejaz Rasool
(Alternate Director to Mrs. Tabassum Tousif Peracha)
Note: The Directors who could not attend the Board Meeting were duly gran
absence from the Board in accordance with the law and this information was duly no
14 ANNUAL REPORT 20
– International Accounting
owed in preparation of the financial
trol is sound in design and has been
ously. The review will continue for
e Company’s ability to continue as a going concern;
– There has been no material departure from the Best
ing regulations wherever applicable
al data of last ten years is annexed;
outstanding payments on account of taxes, duties,
2008 except for those disclosed in the
– The value of investments/assets of Employees
Unaudited) Rs. 0.493 million.
meetings of the Board of Directors were held.
No. of Meetings Attended
7
8
3
1
0
5
4
4
oard Meeting were duly granted leave of
his information was duly noted in
ANNUAL REPORT 2008

12. Trading in Company

’ ’’’’’’’’s Shares
During the year, shares purchased / sold / transferred / received by Directors, their spouses
and minor children are given as under:
No. of Right Shares
Purchased (R3)
i) Mr. M. Tousif Peracha 40136442
(CEO / Chairman / Director)
ii) Mr. A. Rafique Khan 9924981
(Director)
iii) Mrs. Salma Khan W/o A. Rafique Khan 26586
(Director)
No. of Shares
(Market)
Purchased
i) Mr. Asif Muhammad Ali 500
(Director)
iii) Mrs. Salma Khan W/o A. Rafique Khan 51000
(Director)
No. of Shares
(Face Value)
Received
i) Mr. M. Tousif Peracha
(CEO / Chairman / Director)
ii) Mrs. Amna Khan
(Director) 17933497
13. Pattern of Shareholding
The Pattern of Shareholding and additional information required in this regard is enclosed.
External Auditors
The retiring auditors, M/s. Viqar A. Khan & Co., Chartered Accountants are eligible for re
Acknowledgement
The Board of Directors appreciates the financial institutions for extending their valued cooperation
For and on behalf of the Board.
(ASIF MUHAMMAD ALI)
Director
Lahore: October 04, 2008

Directors, their spouses
No. of Right Shares
Purchased (R3) Sold

No. of Shares
Sold

No. of Shares
Face Value)
Transferred
17933497
is regard is enclosed.
nts are eligible for re
ing their valued cooperation
(ABDUR RAFIQUE KHAN)
Director
REPORT 2008
Summary of
Last Ten Years’ Financial Re
2008 2007 2006 2005
(Rupees in Thousands)
Trading Results
Turnover 521,716 1,588,439 1,469,504 1,164,889
Gross Profit / (Loss)
(75,230) (188,432) 274797 149619
Operating Profit / (Loss)
(293,582) (334,508) 183656 71299
Profit / (Loss) Before Taxation
(363,082) (202,074) 170245 196378
Profit / (Loss) After Taxation
(315,198) (222,916) 167155 188878
Balance Sheet
Shareholders Equity
1,995,779 1,678,007 1,880,680 1,114,743
Operating Fixed Assets
2,316,429 2,416,455 2,520,973 1,142,201 1,173,421 1,222,537 1,318,676 1,347,281 1,015,39
Net current assets / (liabilities )
479907 131917 94570 284,931 (231,768) (488,610) (34
Long term liabilities
5,873,548 4,349,215 450719 388563
Significant Ratios
Gross Profit Ratio %
36.12 17.3 10.18
Net Profit Ratio %
38.7 10.52 12.85
Fixed Assets Turnover Ratio
.22 .63 1.29
Debt : Equity Ratio 2.94 2.5 .24 .35

Current Ratio .7 1.12 1.14 1.67
Interest Cover Ratio 2.31 1.97 5.24 2.57

nancial Results
2004 2003 2002 2001 2000 1999
561,735 936,352 812227 969046 755305

95,641 (136,565) 1,523 (61,149) 121,134 (57,360)
47,999 (117,239) (54,311) (109,613) 70,124 (98,599)
112,894 (260,431) (162,717) (243,930) 18,768 (152,909)
115,323 (199,765) (156,916) (224,169) 44,465 (151,207)
66,875 (257,186) (487,068) (330,152) 66696 22231

7 1,318,676 1,347,281 1,015,398 1,083,123
84,931 (231,768) (488,610) (343,124) (281,081) 128,748 (72,746)
752174 667,382 694,130 575912 443787 172775
8.21 24.31 .16 7.53 12.5 7.59
9.9 35.56 16.76 27.6 4.59 20.02

.99 .46 .71 .6 .95 .7
11.25 6.65 7.77

.51 .32 .47 .44 1.21 .77
3.57 1.65 .35 .57 1.36 1.77

Pattern of Shareholding
As at June 30, 2008
Sr. Number of From Shareholdings To Total
No Shareholders Shares Held
1 824 1 100 32847
2 740 101 500 212442
3 358 501 1000 273410
4 553 1001 5000 1333443
5 115 5001 10000 800520
6 34 10001 15000 430844
7 20 15001 20000 355105
8 12 20001 25000 270609
9 9 25001 30000 251778
10 5 30001 35000 164749
11 3 35001 40000 107397
12 2 40001 45000 84718
13 7 45001 50000 338423
14 3 50001 55000 158602
15 1 55001 60000 60000
16 1 60001 65000 60945
17 1 65001 70000 69817
18 2 70001 75000 148251
19 1 75001 80000 80000
20 2 80001 85000 164500
21 1 95001 100000 100000
22 1 100001 105000 102500
23 1 115001 120000 115500
24 1 125001 130000 127500
25 1 150001 155000 153747
26 1 165001 170000 165937
27 1 185001 190000 189000
28 1 245001 250000 246500
29 1 295001 300000 298660
30 1 415001 420000 420000
31 1 455001 460000 456500
32 1 500001 505000 500074
33 1 505001 510000 508586
34 1 545001 550000 546500
35 1 840001 845000 843180
36 1 995001 1000000 1000000
37 1 1335001 1340000 1339000
38 1 1740001 1745000 1742885
39 1 2530001 2535000 2533691
40 1 2710001 2715000 2712819
41 1 3000001 3005000 3000061
42 1 3495001 3500000 3500000
43 1 4080001 4085000 4082112
44 1 4280001 4285000 4282112
45 1 5995001 6000000 6000000
46 1 6665001 6670000 6666666
47 1 16060001 16065000 16062541
48 1 17930001 17935000 17933497
49 1 21735001 21740000 21739000
50 1 38355001 38360000 38356155
51 1 90750001 90755000 90753294
TOTAL: 2724 231876417
Categories of Number of
Shareholders Shares Held
Directors, Chief Executive Officer, and their spouse
and minor childern 200673816
Associated Companies, undertakings and
related parties. (Parent Company)
NIT and ICP
Banks, Development Financial Institutions,
NonBanking Financial Institutions. 1828987
Insurance Companies 1072374
Modarabas and Mutual Funds
Share holders holding 10% or more 166515176
General Public
a. Local 19248266
b. Foreign
Others (to be specified)
1. Joint Stock Companies 629578
2. Foreign Companies 8364224
3. Associations 43637
4. Government Authority 14872
5. Others
areholding
Percentage
.0142%
.0916%
.1179%
.5751%
.3452%
.1858%
.1531%
.1167%
.1086%
.0711%
.0463%
.0365%
.1459%
.0684%
.0259%
.0263%
.0301%
.0639%
.0345%
.0709%
.0431%
.0442%
.0498%
.055%
.0663%
.0716%
.0815%
.1063%
.1288%
.1811%
.1969%
.2157%
.2193%
.2357%
.3636%
.4313%
.5775%
.7516%
1.0927%
1.1699%
1.2938%
1.5094%
1.7605%
1.8467%
2.5876%
2.8751%
6.9272%
7.7341%
9.3753%
16.5416%
39.1386%
100.%
Percentage of
Shareholding
86.5434%
0 0.0
630 .0003%
.7888%
.4625%
0 0.0
71.812%
8.3011%
.2715%
3.6072%
.0188%
.0064%
33 0.0
Pattern of Shareho
As at June 30, 200
Additonal Information as Required b
Code of Corporate Governa
Categories of
Shareholders
I Associated Companies, Undertakings & Related Parties
i. M/s. Astoria Investments Limited
ii. M/s. Topaz Holdings Limited
II NIT/ICP
i. Investment Corporation of Pakistan
III Directors, Chief Executive Officer,
their Spouse and Minor Children
Directors
i Mr. Abdur Rafique Khan
ii Mrs. Tabassum Tousif Peracha
iii Mr. Ali Rashid Khan
iv Mrs. Amna Khan
v Mr. Muhammad Niaz Paracha
vi Mr. Asif Muhammad Ali
Chief Executive Officer
i. Mr. Muhammad Tousif Peracha
Directors’ Spouse
i. Mrs. Salma Khan W/O Mr. Abdur Rafique Khan
IV Executives
V Public Sector Companies and Corporations
VI Banks, Development Finance Institutions,
NonBanking Finance Institutions,
Insurance Companies, Modarabas and Mutual Funds
VII Shareholders Holding Ten Percent or More Voting Interests
i. Mr. Abdur Rafique Khan
ii. Mr. Muhammad Tousif Peracha
(ASIF MUHAMMAD ALI)
Director
18 ANNUAL REPORT 20
f Shareholding
As at June 30, 2008
tion as Required by the
Corporate Governance
Number of Number of
ShareholdersShares held
2 8364224
1 4282112
1 4082112
1 630
1 630
8 200673816
1 38356155
1 6025
1 16062541
1 17933497
1 2330
1 500
1 128159021
1 153747
NIL NIL
NIL NIL
18 2901361
2 166515176
1 38356155
1 128159021
Director
ANNUAL REPORT 2008

Auditors’ Report t
We have audited the annexed balance sheet of GHARIBWAL CEMENT LIMITED
It is the responsibility of the company's management to establish and maintain a system of internal
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These
a) in our opinion, proper books of account have been kept by the company as required
Companies Ordinance, 1984; except for fixed assets register which is being maintaine
b) in our opinion:
i) the balance sheet and profit and loss account together with the notes th
drawn up in conformity with the Companies Ordinance, 1984 and are i
ii) the expenditure incurred during the year was for the purpose of the com
and
iii) the business conducted, investments made and the expenditure incurre
were in accordance with the objects of the company;
c) the Company has not provided for Rs. 201.864 million relating to the Golden Handsh
Scheme in accordance with para 137 of IAS19. This amount has been disclosed as a c
d) in our opinion and to the best of our information and according to the explanations g
us, except for the effect on the financial statements of matters referred to in the prece
e) in our opinion, no Zakat was deductible at source under the Zakat and Ushr Ordinan
(XVIII of 1980).
(M/S. VIQAR A. KHAN)
Lahore : October 04, 2008 CHARTERED ACCOUNTAN

Report to the Members
CEMENT LIMITED as at JUNE 30, and the related profit and loss account, cash flow statement and statement of change
maintain a system of internal
applicable in Pakistan. These
by the company as required by the
ter which is being maintained on non
nt together with the notes thereon, have been
es Ordinance, 1984 and are in agreement with
was for the purpose of the company's business;
and the expenditure incurred during the year
lating to the Golden Handshake
unt has been disclosed as a contingent
cording to the explanations given to
atters referred to in the preceding JUNE 30, 2008 and of the loss, its cash flows
the Zakat and Ushr Ordinance, 1980
M/S. VIQAR A. KHAN)
CHARTERED ACCOUNTANTS
REPORT 2008
ment and statement of changes in equity
Balance S
2008
Note (Rupees in thousand)
SHARE CAPITAL AND RESERVES
Authorized share capital
250,000,000 (2007: 250,000,000) ordinary shares
of Rs. 10 each 2500000
Issued, subscribed and paid up share capital 4 2318764
General reserve 332000
Accumulated loss 654985
1995779
SURPLUS ON REVALUATION OF FIXED ASSETS 5 1041449
NON CURRENT LIABILITIES
Redeemable capital 6 399840
Long term murabah finance 7 107041
Long term loans, finances and other payables 8 5138675
Long term foreign currency loans 9
Liabilities against assets subject to finance lease 10 107520
Long term deposits from customers 11 1150
Deferred taxation 12 113952
Deferred liabilities 13 5370
5873548
CURRENT LIABILITIES
Trade and other payables 14 482013
Accrued interest / markup 15 311185
Short term loans and finances 16 192537
Current portion of redeemable capital 160
Current portion of murabah finance 59467
Current portion of noncurrent liabilities 17 509681
Taxes and duties 18 41444
1596487
CONTINGENCIES AND COMMITMENTS 19
10507263
The annexed notes 1 to 51 form an integral part of these financial statements.
(ASIF MUHAMMAD ALI)
Director

Balance Sheet
2007
Rupees in thousand)
) 2500000 )
) 1718764 )
) 332000 )
372757
) 1678007 )
) 1074419 )
) 225000 )
) )))))
) 3594943 )
))))) 188097 )
) 172393 )
) 1225 )
) 161836 )
) 5721 )
) 4349215 )
) 572513 )
) 123834 )
) 298540 )
) )))))
) )))))
) 99325 )
) 29804 )
) 1124016 )
))))) )))))
) 8225657 )
as at June 30, 2008

2008
PROPERTY, PLANT & EQUIPMENT
Operating fixed assets 20 2316429
Capital workinprogress 21 6928369
Stores held for capital expenditure 22 74888
9319686
OTHER NON CURRENT ASSETS
Long term investments 23
Long term loans and advances to staff 24 1245
Long term deposits and prepayments 25 54907
Deferred cost 26 14192
70997
9390683
CURRENT ASSETS
Stores, spares and loose tools 27 262388
Stock in trade 28 77753
Trade debtors 29
Loans and advances 30 507432
Trade deposits and short term prepayments 31 26956
Accrued interest 32
Other receivables 33 85213
Cash and bank balances 34 156506
1116580
10507263

2007
Rupees in thousand)
2416455
4439639
74888
6930982
653 942
1710
1898
34192
38742
6969724
176318
77753
))))) )))))
194491
24386
332 599
31454
750932
1255933
8225657
ABDUR RAFIQUE KHAN)
Director
Profit and Loss Account

for the Year ended June 30, 2008
2008
Sales net 35
Cost of sales 36 75230
GROSS LOSS 75230
General and administrative expenses 37 71778
Selling and distribution expenses 38 5408
Other operating expenses 39 18277
95463
170693
Other operating income 40 13281
157412
Finance costs 41 136170
OPERATING LOSS 293582
Termination benefits 69500
Gain on sale of investment in an associate
69500
LOSS BEFORE TAXATION 363082
TAXATION
Current
Deferred 12 47884
47884
LOSS AFTER TAXATION 315198
LOSS PER SHARE (RUPEES) 42 1.4
Director

s Account
2007
Rupees in thousand)
))))) 521716 )
) 710148 )
188432
) 51957 )
) 3375 )
) 10425
) 65757 )
254189
) 32149 )
222040
) 112468 )
334508
)))))
))))) 132434 )
132434 )
202074
))))) 2538 )
18304 )
20842 )
222916
1.18
ABDUR RAFIQUE KHAN)
Director
Cash Flow Statement

2008
CASH FLOW FROM OPERATING ACTIVITIES
Cash (used)/generated by operations 43 678882
Financial charges paid 118499
Taxes and duties paid
Gratuity payments 1280
Compensated absences paid 727
Prior years bonus paid
Net decrease in long term loans and advances to staff 476
Net increase in long term deposits and prepayments 5009
Net decrease in long term deposits from customers
Net cash (outflow)/inflow from operating activities 803996
CASH FLOW FROM INVESTING ACTIVITIES
Fixed capital expenditure 1280555
Proceeds from sale of fixed assets 321
Proceeds from sale of investments in associate
Security deposits paid against finance lease 48757
Interest paid 353947
Interest received 4461
Net cash outflow from investing activities 1678477
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issuance of right shares 600000
Proceeds from redeemable capital 175000
Payment of long term loans
Proceeds of long term loans and finances 711831
Proceeds of long term murabah finance 166508
Proceeds of director’s loans 432619
Repayment of directors’ loan
Repayment of foreign currency loans 188097
Proceeds from lease finance net
Repayment of lease finance liabilities 35811
Dividend paid
Short term finances net 25997
Net cash inflow from financing activities 1888047
NET (DECREASE)/INCREASE IN CASH AND
CASH EQUIVALENTS 594426
CASH AND CASH EQUIVALENTS
at the beginning of the year 750932
CASH AND CASH EQUIVALENTS
at the end of the year 34 156506
Director
2007
Rupees in thousand)
268656 )
4041
))))) 167950
)))))
13731
))))) 11252
) 6426 )
532
75 85
77491 )
3604801
) 900 ) )
293958
)))))
))))) )
) 13621
3296322
) ) ))))) )
225000
))))) 20638
) ) 1788966 )
)))))
) 1757990 )
))))) 10170
)))))
))))) 43229 )
38999
))))) 12999
) 80423 )
) 3812802 )
593971 )
) 156961 )
) 750932 )
ABDUR RAFIQUE KHAN)
Director
Statement of Changes i
Particulars Share
Capital
(Rupees in thousand)
Balance as at June 30, 2006 1718764
Loss for the year ended
June 30, 2007 )))))
Cash dividend out of
profit for the year )))))
Surplus on revaluation of
fixed assets transferred:
Incremental depreciation
charged during the year
[net off deferred tax of )))))
Right issue of 60,000 million
No. of shares at Rs. 10 each 600000
Loss for the year ended
June 30, 2008 )))))
Surplus on revaluation of
fixed assets transferred:
Incremental depreciation
charged during the year
[net off deferred tax of )))))
(ASIF MUHAMMAD ALI)
Director

Changes in Equity
General Dividend Accumulated
Reserve Reserve Loss
Rupees in thousand)
332000 13878 ) (183,962) 1,880,680
))))) ))))) 222916 222916
))))) 13878 )))))
))))) ))))) 34121 )

332000 ))))) (372,757) 1,678,007
))))) ))))) )))))
))))) ))))) 315198 315198
))))) ))))) 32970 )

332000 ))))) (654,985) 1,995,779
Director
REPORT 2008
Total
13878
34121 )
)
600000 )
32970 )
)
Notes to the Accounts

1 LEGAL STATUS AND OPERATIONS
The company was incorporated in Pakistan on December 29, 1960 as a Public Limited
its shares are quoted on Karachi and Lahore Stock Exchanges. It is principally engage
The company has incurred a net loss of Rs. 315.198 million for the year ended June 30
The accumulated loss at that date was Rs. 654.985 million and current liabilities excee
By the grace of Almighty Allah, the company has started trial production from its n
process gray cement plant of 6,700 TPD during July 2008. The different segments of
The sponsoring directors, being the majority share holders of the Company have inje
term loans amounting to Rs. 2.2 billion to the Company upto June 30, 2008. Further, t
The sponsoring directors of the company are confident that in view of their continuin
support to the Company and the commencement of commercial production of the ne
Accordingly, these financial statements have been prepared on a going concern basis
not include any adjustments relating to the recoverability and classification of record
2 STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with approved account
standards as applicable in Pakistan. Approved accounting standards comprise of suc
3 SIGNIFICANT ACCOUNTING POLICIES
3.1. Basis of preparation
These accounts have been prepared under the historical cost convention except that
certain fixed assets have been included at revalued amounts and certain exchange ele
3.2 Significant accounting judgments and estimates
The preparation of financial statements in conformity with approved accounting stan
as applicable in Pakistan, requires the use of certain critical accounting estimates. It a

r 29, 1960 as a Public Limited Company;
nges. It is principally engaged in
on for the year ended June 30, 2008.
n and current liabilities exceeded
d trial production from its new dry
8. The different segments of the
rs of the Company have injected long
upto June 30, 2008. Further, the
hat in view of their continuing financial
mercial production of the new dry
red on a going concern basis and do
y and classification of recorded assets
ance with approved accounting
ng standards comprise of such
cost convention except that
unts and certain exchange elements
th approved accounting standards,
cal accounting estimates. It also
circumstances. These estimates and assumptions are reviewed on an ongoing basis.
The matters involving a higher degree of judgment or complexity, or areas where
assumptions and estimates are significant to the financial statements, are as under:
a) determining the cost of defined benefit plan by actuarial valuation (not
b) recognition of taxation and deferred tax (note 3.5);
c) determining the appropriateness of the rate of depreciation, residual va
useful lives of property, plant and equipment (note 3.6);
d) impairment of assets (note 3.7);
e) impairment of inventories / adjustment of inventories to their NRV (no
f) impairment of stores / adjustment of stores to their NRV (note 3.9); and
g) impairment of financial assets (note 3.15).
3.3 Standards, interpretations and amendments to published approved accoun
are not yet effective
The following standards, interpretations and amendments of approved accounting
standards, effective for the company’s accounting periods beginning on or after July 01,
Publications
i) IAS1 Presentation of Financial Statements Revised Sep. 2007
ii) IAS23 Borrowing cost Revised Mar. 2007
iii) IAS27 Amendments Consolidated and separate financial statements 0
iv) IFRS3 (Revised)Business combination
v) IFRS7 Financial instruments
vi) IFRS8 Operating segments
vii) IFRIC13 Customer loyalty programmes
viii) IFRIC15 Agreement for the construction of real estate
ix) IFRIC16 Hedges of a net investment in a foreign operation
These standards are not expected to have any material impact on the Company’s financial
statements other than an increase in disclosures in certain cases.
3.4 Employees benefits
a) Defined benefit plan
The Company operates a funded gratuity scheme for all its permanent
subject to completion of a prescribed qualifying period of service. Cont
The cost of defined benefit plan is determined using actuarial valuation
valuation involves making assumptions disclosed in note 14.2. Due to l
Actuarial gains or losses are recognized as income or expense when the
unrecognized actuarial gains or losses for each individual plan exceeds
b) Defined contribution plan
The company also operates a funded contributory provident fund sche
employees. Equal monthly contributions are made by the company and

ngoing basis.
n by actuarial valuation (note 3.4);
e of depreciation, residual value and
ent (note 3.6);
inventories to their NRV (note 3.8);
s to their NRV (note 3.9); and
ished approved accounting standards that
d accounting
on or after July 01,
Effective From
Revised Sep. 2007 01Jan2009
01Jan2009
parate financial statements 01Jul2009
01Jul2009
28Apr2008
01Jan2009
01Jul2008
01Jan2009
oreign operation 01Oct2008
Company’s financial
scheme for all its permanent employees
fying period of service. Contribution to
ned using actuarial valuation. The actuarial
sclosed in note 14.2. Due to long term
income or expense when the cumulative
each individual plan exceeds 10% of the
ibutory provident fund scheme for its
re made by the company and the employees
REPORT 2008
to the fund. Contribution of the Company is charged to the income for the year.
c) Compensated absences
Provisions are made to cover the obligation for accumulated compensated absences
on the basis of actuarial valuation and are charged to income. Actuarial gains and
3.5 Taxation
Current
The charge for current taxation is based on taxable income at current rates of taxation
after taking into account tax credits and rebates available, if any.
Deferred
Deferred tax is accounted for using the balance sheet liability method in respect of
temporary differences arising from differences between the carrying amount of assets
A deferred tax asset is recognized only to the extent that it is probable that future taxable
profit will be available and the credits can be utilized. Deferred tax assets are reduced
3.6 Property, plant & equipment and depreciation
Owned
Operating fixed assets, except freehold land, are stated at cost or revalued amounts less
accumulated depreciation. Freehold land is stated at revalued amount. Capital workin
Borrowing cost during erection period is capitalized as part of the related assets.
Depreciation is charged at the rates stated in note 20 applying reducing balance method
on all operating fixed assets except for plant and machinery on which it is based on
Gain/loss on disposal of fixed assets is taken to profit and loss account.
Normal repairs and maintenance are charged to income as and when incurred. Major
improvements and modifications are capitalized and assets replaced, if any, other than
Leased
Assets subject to finance lease are stated at the lower of present value of minimum lease
payments under the lease agreements and the fair value of the assets except for the two
Depreciation is charged at the rates stated in note 20 applying reducing balance method
except for plant and machinery on which depreciation is charged on straight line method

he income for the year.
ated compensated absences
ome. Actuarial gains and
ates of taxation
mount of assets
that future taxable
ets are reduced
ued amounts less
. Capital workin
g balance method
it is based on
ncurred. Major
f any, other than
of minimum lease
xcept for the two
g balance method
raight line method
to writeoff the cost of the asset over its estimated remaining useful life in view of certainty
Financial charges and depreciation on leased assets are charged to income currently.
3.7 Impairment of assets
The management assesses at each balance sheet date whether there is any indication that
an asset is impaired. If any such indication exists, the management estimates the recoverable
3.8 Stock-in-trade
Basis of valuation are as follows:
Particulars Mode of valuation
Raw materials At lower of annual average cost and net realizable value.
Workinprocess At cost.
Finished goods At lower of cost and net realizable value.
Packing materials At lower of moving average cost and net realizable value
Cost in relation to workinprocess and finished goods represents the annual average
manufacturing cost which consists of prime cost and appropriate manufacturing overheads.
Stockintrade is regularly reviewed by the management and any obsolete items are
brought down to their NRV.
Net realizable value signifies the selling price in the ordinary course of business less cost
necessary to be incurred to effect such sale.
3.9 Stores and spares
These are valued at lower of moving average cost and net realizable value except item
intransit which are valued at cost accumulated to the balance sheet date. Stores, spares
3.10 Investments
Investments intended to be held for less than twelve months from the balance sheet date
or to be sold to raise operating capital, are included in current assets, all other investments
Investments in associated company: investments in associated company are carried at
cost.
Investments at fair value through profit or loss: All investments classified as investments
at fair value through profit or loss, are initially measured at cost being fair value of
Investment available for sale: All investments classified as available for sale are initially
recognized at cost being fair value of consideration given. At subsequent reporting dates

e in view of certainty
ome currently.
any indication that
mates the recoverable
ost and net realizable value.
cost and net realizable value.
annual average
ufacturing overheads.
lete items are
business less cost
alue except item
te. Stores, spares
balance sheet date
ll other investments
mpany are carried at
ts classified as investments
fair value of
available for sale are initially
ent reporting dates
Investments held to maturity: Investments with fixed maturity that the management
has the intention and ability to hold to maturity are classified as held to maturity and are
3.11 Foreign currency translation
Assets and liabilities in foreign currencies are translated into Pak Rupees at rates of
exchange prevalent on the balance sheet date except those covered under forward
All exchange differences arising from foreign currency transactions/translations are
charged to profit and loss account except exchange differences arising from translation
3.12 Cash and cash equivalents
Cash and cash equivalent consist of cashinhand and balances with banks.
Cash and cash equivalent included in cash flow statement comprise of cashinhand,
balances with banks and temporary bank overdrafts.
3.13 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to
3.14 Provisions
Provisions are recognized in the balance sheet when the company has a present legal or
constructive obligation as a result of past events, it is probable that an outflow of resources
Provisions are reviewed at each balance sheet date and adjusted to reflect the current
best estimate. If it is no longer probable that an outflow of resources embodying economic
3.15 Financial instruments
Financial assets are short term investment, certificate of investments, long term deposits,
long term loans and advances to staff, trade debtors, loans and advances and other
Financial liabilities are classified according to the substance of the contractual arrangements
entered into. Significant financial liabilities are liabilities against assets subject to finance
Equity instruments are recorded at their face value. All incremental external costs directly
attributable to the equity transaction are charged directly to equity net of any related
3.16 Related party transaction
All transactions with related parties are at arm’s length prices determined in accordance
with the pricing method as approved by the Board of Directors.

urity that the management
o maturity and are
ees at rates of
anslations are
from translation
cashinhand,
r production of
eriod of time to
a present legal or
outflow of resources
ect the current
mbodying economic
ong term deposits,
es and other
ractual arrangements
subject to finance
ternal costs directly
of any related
ned in accordance
3.17 Revenue recognition

Sales are recorded on dispatch of goods to customers.
Interest income is accounted for on ‘accrual basis’.
Dividend income is recognized when the company’s righ
established.
3.18 Off setting of financial assets and liabilities
Financial assets and financial liabilities are set off and the net amount is
financial statements when there is a legally enforceable right to set off a
3.19 Deferred cost

All deferred costs including discount on issue of shares incurred and de
05, 2004 are amortized over a period of five years in accordance with th
3.20 Leases
Finance leases
Leases that transfer substantially all the risks and rewards incidentals t
asset is classified as finance lease. Assets on finance lease are capitalized
Operating leases
Leases in which a significant portion of the risks and rewards of owner
by the lessor are classified as operating leases. Payments made under o
4 ISSUED, SUBSCRIBED AND PAID-UP SHARE CAPITAL
Ordinary shares of Rs. 10 each fully paid:
158445000 158445000
60000000
218445000 158445000
13431417 13431417
231876417 2008 171876417 2007
Nos. Nos.
4.1 Shares of the Company held by foreign associated undertakings incorp
of Nevis:
Astoria Investment Limited
Topaz Holdings Limited
ch of goods to customers.
for on ‘accrual basis’.
ed when the company’s right to receive payment is
set off and the net amount is reported in the
enforceable right to set off and the company
sue of shares incurred and deferred before July
e years in accordance with the provisions of
ks and rewards incidentals to ownership of an
n finance lease are capitalized at the
risks and rewards of ownership are retained
ses. Payments made under operating leases
In cash 1584450 1584450

Issue of fully paid rigth share
)))))) during the year 600000
2184450 1584450
fully paid bonus shares 134314 134314
2318764 2008 1718764 2007
ociated undertakings incorporated in Island
4282112 4282112
4082112 4082112
8364224 8364224
2008 2007
Nos. Nos.

))))))
4.2 A Right Shares Issue (R3) of 34.908% (60 million right shares at Rs. 10 p
par) was announced by the Board of Directors of the Company in their
5 SURPLUS ON REVALUATION OF FIXED ASSETS
Opening balance
Surplus transferred to retained earnings (accumulated loss):
Incremental depreciation charged during the year
[net off deferred tax of Rs. 17.753 million
(2007:Rs.18.37 million)]
Revaluations of freehold land, buildings, plant & machinery including heavy vehicle
railway sidings were carried out during June 2006 and March 1993 which produced s
6 This represents redeemable capital in the form of Privately Placed Term Finance Cert
(PPTFC) issued on January 18, 2008 to the financial institutions aggregating to Rs. 400
Interest on these PPTFC is charged at the same rate as mentioned in preceding parag
the date of issuance. This redeemable capital is secured by way of fixed deposit of Rs
7 This represents Murabaha finance facility availed out of total available facility of Rs.2
from Faysal Bank Ltd. for import of coal mill for new dry cement plant. This finance i

million right shares at Rs. 10 per share i.e. at
tors of the Company in their meeting held on
2008 2007
1074419 (Rupees in thousand)
)
32970 34121
1041449 ) )
nery including heavy vehicles and
March 1993 which produced surplus
ly Placed Term Finance Certificates
utions aggregating to Rs. 400 million
entioned in preceding paragraph till
by way of fixed deposit of Rs. 10
total available facility of Rs.215 million
y cement plant. This finance is repayable
REPORT 2008
8 LONG TERM LOANS, FINANCES AND OTHER PAYABLES

Banks and financial institutions secured
Saudi Pak Commercial Bank Limited
Saudi Pak Industrial & Agricultural
Investment Co. Limited
Orix Investment Bank (Pakistan) Limited
First Credit and Investment Bank Limited
Syndicate Term Finance
The Bank of Punjab
Pak Brunie Investment Company Limited
The Bank of Punjab Letter of credit payable
Askari Bank Limited
KASB Bank Limited
Un secured Loans and other payable
Directors’ loans
Other
Less: Current portion grouped under current liabilities
8.1 This represents the balance of demand finance limit of Rs. 65 million an
over a period of six years (including one year’s grace period) in twenty
8.2 This represents the balance of demand finance limit of Rs. 30 million an
over a period of five years (including one year’s grace period) in sixteen
The finances at 8.1 and 8.2 above carries markup @ KIBOR (six months
+ 5% p.a. with a floor of 10% p.a. and with no cap. These finances are se
8.3 These represent the balance of term finance facility aggregating to Rs. 4
to note 8.4). This finance carries mark up @ KIBOR (six month average
8.4 During the year ended June 30, 2005, the Company entered into a finan
a consortium of financial institutions lead by Orix Investment Bank Pak
According to the agreement, Rs. 320 million has been contributed for th
following manner:
by way of lease finance (note 10)
by way of term finance (note 8.3)
by the Company
This finance arrangement is secured by way of first pari passu mortgag
company’s assets to the extent of Rs. 426.67 million.
32 ANNUAL REPORT 20
2008 2007
PAYABLES
8.1 26000 32500
8.2 13125 16875

8.3 17368 20526
8.3 4737 5790
8.5 1545258 1538966
8.6 350000 )))))
8.7 250000 )))))
8.8 644285 )))))
8.9 120000 )))))
8.1 132000 )))))
3102773 1614657
8.11 2200109 1767490

8.12 250000 250000
5552882 3632147
17 414207 37204
5138675 3594943
nce limit of Rs. 65 million and is repayable
ear’s grace period) in twenty quarterly
nce limit of Rs. 30 million and is repayable
year’s grace period) in sixteen quarterly
arkup @ KIBOR (six months average ask rate)
no cap. These finances are secured by way
e facility aggregating to Rs. 40 million (referred
KIBOR (six month average ask rate) + 6%
ompany entered into a finance agreement with
by Orix Investment Bank Pakistan Ltd. (Orix)
n has been contributed for the purpose in the
250000
40000
30000
320000
y of first pari passu mortgage charge on
ANNUAL REPORT 2008

Rs. 6 million was paid by a foreign associated company to the suppliers of these gene
(Refer to Note 9.2).
8.5 This represents disbursements against term finance facility of Rs. 1.548 billion obtaine
from a consortium of financial institutions lead by Saudi Pak Leasing Co. Ltd. to fina
This finance carries markup @ KIBOR (6 months ask rate) + 5.5% p.a. with floor of 8.
p.a. and no ceiling. The principal amount shall be repaid in five years including two y
8.6 This represents demand finance facility obtained to meet the cost overrun of new dr
cement project of 6700 TPD. The said loan is repayable over a period of three years
8.7 Company intends to issue privately placed Sukuk certificates of Rs.2.5 billion in fores
future to be arranged by the consortium of financial institutions. Against the issuance
The said loan is repayable in July 2009 by a bullet payment and carries markup @ 6
month KIBOR + 3.0% p.a on quarterly rests. The facility is secured by way of joint fir
8.8 This represents payable against Letter of credit usance facility of 720 days obtained fr
the Bank of Punjab upto Rs.544 million being 90% of import cost of 3 dual fuel power
8.9 This represents disbursement against sale of packing plant machinery for new dry ce
plant under a sale and lease back transaction entered with Askari Bank Ltd. The secu
8.10 This represents a frozen short term bridge loan carrying markup @ KIBOR (three months
ask rate) + 4% p.a(2007:KIBOR(three months ask rate)+5%) payable on quarterly basi
8.11 These are loans obtained from sponsoring directors of the company. They include
Rs.166.508 million (2007:Rs.216 million) which is subordinated to the payment of fina
8.12 This loan was obtained from a past associated company and had to be repaid during
June 30, 2008. Initially this loan carried a markup @ 10% p.a., however, on the reques

o the suppliers of these generators
ty of Rs. 1.548 billion obtained
Pak Leasing Co. Ltd. to finance
e) + 5.5% p.a. with floor of 8.5%
in five years including two years
the cost overrun of new dry
ver a period of three years
cates of Rs.2.5 billion in foreseeable
tutions. Against the issuance
nt and carries markup @ 6
is secured by way of joint first
cility of 720 days obtained from
port cost of 3 dual fuel power
nt machinery for new dry cement
h Askari Bank Ltd. The security
@ KIBOR (three months
%) payable on quarterly basis
ny. They include
inated to the payment of finance
o be repaid during
p.a., however, on the request
of the company, the past associated company agreed not to charge any
9 LONG TERM FOREIGN CURRENCY LOANS Note

Associated undertakings unsecured
Infiniti Continental Inc. 9.1
Orion Shipping & Trading Limited 9.2
9.1 This represented three loans aggregating GBP 833,600 obtained through
during the year ended June 30, 2002 for the purpose of repaying Pak Ru
Interest was payable on biannually basis on the outstanding principal a
of six months LIBOR + 1%. The payment of these foreign currency loan
9.2 This represented US$ 900,000 and US$ 429,828 payable against supply o
press plant & machinery and coal firing system while the remaining US
These foreign currency loans were interest free and the payment of thes
subordinated to the payment of finances obtained from financial institu
10. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE
Present value of future minimum lease payments due:
not later than one year
later than one year and not later than five years
Less: Current portion grouped under current liabilities:
Overdue installments
Installments due within following twelve months
17
Reconciliation of MLPs with present value of MLPs:
Minimum lease payments due:
not later than one year
later than one year and not later than five years
Financial charges:
accrued but not paid
allocated to future lease payments
Less: Security deposits adjustable
on expiry of lease terms
Present value of future minimum lease payments

ny agreed not to charge any further markup
2008 2007
)))))) 101449
)))))) 86648
)))))) 188097
GBP 833,600 obtained through one of its director
e purpose of repaying Pak Rupee loan obtained
n the outstanding principal amount at the rate
f these foreign currency loans was subordinated
828 payable against supply of complete filter
stem while the remaining US$ 100,000
free and the payment of these loans were
btained from financial institutions.
95474 62121
107520 172393
202994 234514
28689 6990
66785 55131
95474 62121
107520 172393
140292 101843
157493 242325
297785 344168
18097 8799
44405 68999
62502 77798
235283 266370
32288 31856
202995 234514
REPORT 2008
Lease finance facility of Rs. 250 million had been obtained to finance the import value of gas
based electric power generators (Refer to Note 8.4). The present value of minimum lease
For the remaining leases the implicit rate used as discounting factor ranges from 8% to 24%
p.a. and these leases are secured against security deposits of Rs. 32.288 million and personal
The company intends to exercise its option to purchase the leased assets upon completion of
the respective lease terms.
11. LONG TERM DEPOSITS FROM CUSTOMERS
These represent interest free securities received from dealers which are refundable on termination
of dealerships (Refer to Note. 34.1).
2008
12. DEFERRED TAXATION
Deferred tax on taxable temporary differences:
Accelerated depreciation for tax purposes 398086
Leased assets 66126
464212
Deferred tax on deductible temporary differences:
Lease finance liabilities 71048
Provisions 8982
80030
384182
Deferred tax on available tax losses 270230
Net deferred tax liability 113952
Deferred tax (gain)/expense transferred to
the profit & loss account 47884
13. DEFERRED LIABILITIES

Accumulated compensated absences 13.1 3426
Frozen termination benefits 13.2 1944
5370

he import value of gas
of minimum lease
nges from 8% to 24%
million and personal
ts upon completion of
e refundable on termination
2007
Rupees in thousand)
) 415384 )
) 71809 )
) 487193 )
82080
8264
90344
) 396849 )
235013
) 161836 )
18304 )
) 3777 )
) 1944 )
) 5721 )
2008
13.1 Movement in the liability recognized
in the balance sheet
Net liability at the beginning of the year 3777
Expense recognized in income statement 376
Contribution to the fund by the company 727
3426
Reconciliation of the present value of
defined benefit obligation
Present value of defined benefit obligationsopening 3777
Current service cost 142
Interest cost 378
Benefits paid 727
Actuarial gain on PVDBO 144
Present value of defined benefit obligationsclosing 3426
Expense recognized in profit and loss account
Interest cost 378
Actuarial gain 144
376
Principal actuarial assumptions
The latest actuarial valuation was carried out as at June 30, 2008 under the ‘Projected
Unit Credit Method’. The main assumptions used for actuarial valuation are as follows:
Discount rate 12% p.a.
Expected rate of future salary increase 11% p.a.
Average number of leaves accumulated per year
life time of employees 7 days
13.2 Frozen termination benefits
These are termination benefits which are frozen on the reappointment of three employees
who had accepted golden handshake offered by the company and shall be paid when
14. TRADE AND OTHER PAYABLES
Creditors 235321
Retention money 127040
Accrued liabilities 56113
Advances from customers 10459
Due to employees )))))
Due to directors )))))
Due to Workers’ Profit Participation Fund 14.1 16010
Due to gratuity fund trust 14.2 22238
Due to provident fund trust 2734
Unclaimed dividend 146
Interest free deposits:
Repayable on demand 1723
Others 3947
5670
Others 6282
482013
2007
) 16586 )
) 922 )
13731
3777 )
) 16587 )
) 718 )
) 1493 )
13732
1289
) 3777 )
) 718 )
) 1493 )
1289
) 922 )
the ‘Projected
on are as follows:
) 10% p.a. )
) 9% p.a. )
) 8 days )
of three employees
l be paid when
) 248958 )
) ) 108154 ) )
157920
) 10459 ) )
411
160 )
) ) 15178 ) )
19834
) ) 879 ))))) )
) 2810 )
) 3053 )
) 5863 )
) 4697 )
) 572513 )
2008
14.1 Workers’ (profit) participation fund

Opening balance 15178
Interest on funds utilized by the company 2960
18138
Less: Amount paid during the year 2128
16010
14.2 Due to gratuity fund trust
The amounts recognized in the balance sheet on account of defined benefit plan i.e.
gratuity are as follows:
Movement in the liability recognized
in the balance sheet
Net liability at the beginning of the year 19834
Expense recognized in income statement 3684
Contribution to the fund by the company 1280
22238
Reconciliation of the liability as at June 30, 2008
Present value of defined benefit obligationsas at June 30 21635
Fair value of plan assets 492
Unrecognized actuarial gain 1095
22238
Reconciliation of the present value of
defined benefit obligation
Present value of defined benefit obligationsopening 19694
Interest cost 1969
Benefits paid 1280
Loss due to settlements
Actuarial gain on PVDBO 532
Present value of defined benefit obligationsclosing 21635
Expense recognized in profit and loss account
Interest cost 1969
Curtailment or settlement
Expected return on plan assets
3684

2007
Rupees in thousand)
) 15178 )
) )))))
) 15178 )
) )))))
) 15178 )
nefit plan i.e.
) 5442 )
) 14392 )
)))))
) 19834 )
) 19694 )
578
) 718 )
) 19834 )
) 71568 )
) 4903 )
) 6441 )
62020
))))) 1131 )
2329
) 19694 )
) 4904 )
) 6441 )
))))) 9128 )
69 6081
) 14392 )
Salaries, wages and benefits appearing under heads of cost of sales, general and
administrative & selling and distribution expenses include the following amounts on
Cost of sales
General and Administrative expenses
Selling and distribution
Reconciliation of fair value of plan assets
Fair value of plan assets as at June 30
Contribution to the fund by the Company
Benefits paid
Loss due to settlement
Actuarial gain
Fair value of plan assets as at June 30
Plan assets comprise of:
Debt instrument
Cash & Bank
Actual return on plan assets
Actuarial gain
Principal actuarial assumptions

The latest actuarial valuation was carried out as at June 30, 2008 under the ‘Projected Unit
Credit Method’. The main assumptions used for actuarial valuation are as follows:
Discount rate
Expected rate of future salary increase
Expected rate of return
Average expected remaining working
life time of employees
2008 2007
Present value of defined
benefit obligations
as at June 30 21635 ) 19694
Fair value of plan assets
as at June 30 492 578
Deficit 21143 ) 19116

ng amounts on
2008 2007
1842 ) 12456
1105 ) 1653
737 ) 283 )
3684 ) 14392
579 ) 67568
1280 ) )))))
1280 65074
))))) 7996
69 ) 6081
155 )))))
493 ) 579 )
466 ) 465 )
27 ) 114 )
493 ) 579 )
69 ) 6081
155 )))))
86 6081
the ‘Projected Unit
12% p.a. ) 10% p.a. )
11% p.a. ) 9% p.a. )
10% p.a. ) 9% p.a. )
13 years ) 13 years )
2006 2005 2004

Rupees in thousand)
) 71567 ) 70528 ) 64439 )
67568 62221 60017

) 3999 ) 8307 ) 4422 )
)
)
)
15. ACCRUED INTEREST / MARK UP

Interest / markup / profit payable on:
Redeemable capital
Long term murabah finance
Long term loans and finances
Long term foreign currency loans
Lease finances
Short term borrowings
16. SHORT TERM LOANS AND FINANCES

Banks secured
Saudi Pak Commercial Bank Ltd. (SPCBL)
First Credit & Investment Bank Ltd.
KASB Bank Limited
Bridge loan
Running finance
National Bank of Pakistan
Others unsecured
Temporary bank over draft
Othersprovident fund
16.1 This represents balance of a existing running finance facility of Rs. 43 million extended
upto Rs.58 million subsequent to the balance sheet date (2007: Rs. 160 million) carrying
The following facilities are also available as at the year end from SPCBL:
Letter of credit 80000 Approved limit

Letter of guarantee 102000 2008 102000
Rs. ‘000’ Rs. ‘000’
These facilities are secured against ten percent cash margin and lien on import document.
LGs are also secured by counter guarantee of the Company.
16.2 This short term bridge loan is repaid during the year that carried markup @ KIBOR (six
months ask rate) + 3% p.a payable on quarterly basis. The facility was secured by way
16.3 This represents a short term bridge loan (Refer to note 8.10).
16.4 This represents balance of a running finance facility of Rs.60 million (2007: Rs. 100 million)
carrying markup @ KIBOR (six months average ask rate) + 3% p.a with a floor of 12%

2008 2007
22910 ) 25655
6413 )
239851 ) 66300
))))) 9572
18097 ) 8812
23914 ) 13495
311185 ) 123834
16.1 27687 ) 42705

16.2 ))))) 48000
16.3 ) 132000
16.4 59435 ) 59992
16.5 49922 )
137044 ) 282697
16.6 39650 )
16.7 15843 ) 15843
192537 ) 298540
. 43 million extended
million) carrying
80000 ))))
2007 101959 101959
Rs. ‘000’ Rs. ‘000’
n import document.
markup @ KIBOR (six
secured by way
on (2007: Rs. 100 million)
h a floor of 12%
)
)))))
)
)
)
)
)
)
)
)
)
)))))
)
)))))
)
)
The following facilities are also available as at the year end from KASB Bank Limited:
Approved limit
2008 2007
Rs. ‘000’ Rs. ‘000’
Letter of credit 132000 394670

FIM 132000
Letter of guarantee 176000 175306
These facilities are secured against 5% 10% cash margin, lien on import document,
pledge of imported goods and ranking charge on plant & machinery for Rs.150 million
16.5 This represents balance of a cash finance facility of Rs.50 million (2007: Rs. Nil) carrying
markup @ KIBOR (three months average ask rate) + 3% p.a payable on quarterly basis.
16.6 This represents cheques issued in excess of the current account balance as at balance sheet
date but not presented for payments in the bank as at close of the financial year.
16.7 This represents the utilized amount of the total short term finance facility of Rs. 17.5
million (2007: Rs.17.5 million) availed from the Gharibwal Cement Employees Provident
Note
17. CURRENT PORTION OF NON CURRENT LIABILITIES
Long term loans, finances and other payables 8
Liabilities against assets subject to finance lease 10
18. TAXES AND DUTIES

Provision for taxation 18.1
Excise duty 19.1
Local taxes
Income tax deducted at source payable
Excise duty on raw material
Royalty on raw material
18.1 (a) Income tax assessments of the company have been completed upto the
ended June 30, 2007 (tax year 2007).
(b) In view of available tax losses and “nil” revenue from operations due to
stated in note 48, provision for current year taxation has not been made

B Bank Limited:
Facility utilized
2008 2007
Rs. ‘000’ Rs. ‘000’
40999

175306 175306
ort document,
or Rs.150 million
2007: Rs. Nil) carrying
n quarterly basis.
lance as at balance sheet
facility of Rs. 17.5
ployees Provident
2008 2007
414207 37204
95474 62121
509681 99325
2876 10439
1760 1760
5773 5773
28655 10014
201 75
2179 1743
41444 29804
ve been completed upto the income year
venue from operations due to the reason
r taxation has not been made in these
REPORT 2008

2008
(c) Tax charge reconciliation
Loss before taxation
363082
Tax effects of amounts that are:
Deductible for tax purposes
26563
Not deductible for tax purposes
48777 )
Tax effect of unused tax losses
270230
248016
Minimum tax liability provided in accounts
as per Income Tax Ordinance, 2001
)))))
19. CONTINGENCIES AND COMMITMENTS
19.1 Excise duty arrears demand of Rs.16.276 million in respect of capacity production period
196667 to 197374 made by the Central Excise and Land Customs Department had not
19.2 The Company filed a writ petition in the Lahore High Court (the Court) against imposition
of export tax on raw materials by District Council, Chakwal (the Council) and refund of
The Court further directed the Council to refund to the Company the sum of Rs.45.948
million recovered from it during the period from 198586 to 199697.
The Lahore High Court Rawalpindi Bench vide its order dated March 17, 1997 on a
revision application by the Council, suspended the operation of the judgment dated
19.3 District Council Chakwal served notices dated July 25, 1998 and August 05, 1998,
whereby the Company had been directed to deposit an amount of Rs. 5.4 million being
19.4 The Company, through a writ petition, challenged the refusal of IESCO in accepting the
decision by the Electric Inspector and Advisory Board in favour of the Company wherein
IESCO, however, has filed civil petition for leave to appeal along with application for
suspension of operation of the aforementioned order of the Lahore High Court, but

2007
202074
43989
57973 )
235013
221029
2646 )
city production period
artment had not
Court) against imposition
cil) and refund of
sum of Rs.45.948
17, 1997 on a
dgment dated
August 05, 1998,
5.4 million being
ESCO in accepting the
Company wherein
application for
gh Court, but
19.5 The Company has also filed an appeal before the Secretary Industries and Mineral
Development against imposition of 5% penalty on outstanding royalty in respect of
19.6 The Golden Handshake Scheme (GHS) was offered by the company to its employees
during the year ended June 30, 2007. Out of total 537 employees, 349 employees had
19.7 Guarantees given by banks on behalf of the Company to Sui Northern Gas Pipelines
Limited outstanding as at June 30, 2008 aggregated to Rs. 547.265 million that includes
19.8 Guarantee given by a commercial bank on behalf of the Company to Sindh High Court
outstanding as at June 30, 2008 aggregated to Rs. 41.76 million. This facility is secured
19.9 Appeals are pending adjudication before the Collector (Appeals) Islamabad against the
demands of Central Excise Duty and Sales Tax amounting to Rs.313.618 million and
19.1 (a) The Company has issued a post dated cheque of Rs.25.928 million from
bank in favour of Collector Customs for the differential amount of duti
(b) A post dated cheque of Rs.12.718 million is issued in favour of customs
for the differential amount of duties in respect of clearance of imported
The management of the company is of the view that the ultimate outco
above cases shall be in the favour of the Company on the legal grounds
19.11 Corporate guarantees given by commercial banks on behalf of Company in connecti
with issuance of PPTFC outstanding as at June 30, 2008 aggregated to Rs. 426 million
19.12 Commitments in respect of capital expenditure
were outstanding on account of:
a) Wet process cement plant
b) New dry process cement project
c) Dual fuel electric power generators
42 ANNUAL REPORT 20
ries and Mineral
in respect of
ny to its employees
mployees had
hern Gas Pipelines
on that includes
to Sindh High Court
cility is secured
slamabad against the
18 million and
que of Rs.25.928 million from a scheduled
e differential amount of duties in respect
issued in favour of customs authorities
pect of clearance of imported cable from
view that the ultimate outcome of the
ompany on the legal grounds of the cases.
half of Company in connection
Rs. 426 million
25000 )))))
147600 1302950
))))) 479159
172600 1782109
2008 2007
ANNUAL REPORT 2008

20. OPERATING FIXED ASSETS - TANGIBLE
COST / REVALUATION
Particulars As at Additions Disposals As at

01072007 during during 30062008
the year the year
Owned assets
Land freehold
Cost 52592 2930 55522
Revaluation529623 529623
582215 2930 585145
Buildings & foundations
on freehold land
Cost 194033 194033
462721 462721
On leasehold land
Cost 3424 3424
Revaluation14616 14,616
18040 18040
Heavy Vehicles
Cost 99591 99591
162381 162381
Plant and machinery
Cost 1080673 1,080,673
Revaluation1000136 1,000,136
2080809 2,080,809
Railway sidings
Cost 889 889
9339 9339
Roads 4847 4847
Loose tools 1403 1403
Furniture, fixtures and
other office equipment
40781 430 41,211
Transport assets33153 1726 31427
3395689 3360 (1,726) 3,397,323
Assets subject to
finance lease:
Plant and machinery
386271 386271
Heavy vehicles 4495 4495
Vehicles 10947 5097 16044
401713 5097 406810
TOTAL 2008 3797402 8457 (1,726) 3,804,133
TOTAL 2007 3784818 13791 (1,206) 3,797,403
20.1 Vehicles subject to finance lease include vehicles of Rs. 2.78 million (2007: Rs. 2.78 million)
transacted benami in the name of four employees of the company.
20.2 The process of reconstruction of the fixed assets register has been initiated during the
year through outsourcing the services of professionals for the purpose. The managem
20.3 A fresh revaluation of the Company’s freehold land, building, railway siding, heavy
vehicles and plant and machinery situated at its plant site, was made as at June 30, 20
DEPRECIATION
Rate Written down
% AccumulatedCharge Adjustment AccumulatedValue as at
as at for the on disposals/ as at 30062008
01072007 year transfers 30062008
55522
529623
585145
510 119486 7216 126702 67331

510 159073 9909 168982 99706
278559 17125 295684 167037
510 3227 19 3246 178

510 8763 583 9346 5270
11990 602 12592 5448
20 95400 838 96238 3353

20 35936 5371 41307 21483
131336 6,209 137545 24836
5 558519 26108 584627 496046

5 307769 34618 342387 657749
866288 60726 927,014 1,153,795
7 889 889
7 4991 242 5233 3217
5880 242 6122 3217
5 2731 106 2837 2010
10 1298 11 1309 94
10 26918 1419 28337 12874

20 27528 852 1436 26944 4483
1352528 87292 (1,436) 1,438,384 1,958,939
5 22532 18187 40719 345552

20 2194 460 2654 1841
20 3693 2254 5947 10097
28419 20901 49320 357490
1380947 108193 (1,436) 1,487,704 2,316,429
1263845 117691 (589) 1,380,948 2,416,455
n (2007: Rs. 2.78 million)
initiated during the
r the purpose. The management
way siding, heavy
e, was made as at June 30, 2006
20.4 Detail of vehicles sold during the year
Accumulated
Description Cost Depreciation
Honda Civic 1316 1040
LXZ7494
Mazda 411 396

SAC5151
1727 1436
20.5 The following assets have been transferred to owned assets on expiry of the lease term
during the period mentioned there against. However, transfer of ownership of the assets
Year of expiry
Plant & machinery June 30, 2001
Vehicle June 30, 2004
Vehicles June 30, 2005
Vehicles June 30, 2007
20.6 Depreciation has been allocated as under :

Cost of sales
Cost of sales fuel & power (electricity)
General and administrative expenses
Selling and distribution expenses
Capital work in progress Dry cement plant
44 ANNUAL REPORT 20
Written Sale Mode of Particulars of
Down Proceeds Disposal Purchaser
Value
276 276 Negotiation Mr. Shoeb A. Piracha

(exdirector of the Company)
12/A Zahoor Afridi Road
Lahore Cantt.
15 45 Negotiation Mr. Hameed Ullah Khan
Tehsil & district D.I Khan
291 321
piry of the lease term
ership of the assets
Year of expiry Cost Acc. Dep. Carrying
of lease value
20633 12182 8451
1206 588 618
20900 10248 10652
2641 1289 1352
183988 80777 103211
108000 16200 91800
1794 875 919
2008 2007
36 61939 66234
42323 47546
37 2290 2352
38 290 471
1351 1088
108193 117691
ANNUAL REPORT 2008

2008
21. CAPITAL WORK-IN-PROGRESS
Civil works and buildings 1663
Dry cement plant
Civil works 1343477
Plant & machinery 21.1 3485232
Borrowing cost 21.2 790897
Advances to suppliers considered good 61001
Other BMR/Expansion costs 21.4 422510
6103117
Dual fuel electric power generation plant
Civil works 4597
Plant & machinery 21.3 752044
Borrowing cost 58104
Advances to suppliers considered good )))))
Other BMR/Expansion costs 21.4 7304
822049
Wet process plant
L/c in process for packing plant 1540
6928369
21.1 This includes import value plus ancillary cost of machinery of new dry cement plant
having manufacturing capacity of 6700 TPD of grey cement (2007:machinery in transit
21.2 This includes interest amounting Rs.269.13 million (2007:Rs. 37 million ) paid on long
term loan obtained from sponsoring directors to meet the liquidity needs towards the
21.3 This represents import value and ancillary cost of three dual fuel electric power generators
from Wartsila Finland that were received during the year (referred to note 8.8). These
21.4 These represent management and other directly attributable capital expenditures incurred
in connection with the construction and installation of above mentioned projects.
21.5 Subsequent to the balance sheet date, the Company started trial run of the above mentioned
dry process cement plant of 6700 TPD clinker capacity to enable the plant for commercial
22. STORES HELD FOR CAPITAL EXPENDITURE

This includes an aggregate amount of Rs. 74.888 million (2007: Rs. 74.888 million) being the
cost of filter press machinery acquired to convert the old manufacturing process from wet to

2007
1663
1035859
2842970
219349
104008
120625
4322811
4070
5172
51988
51937
1998
115165
)))))
4439639
w dry cement plant
hinery in transit
llion ) paid on long
eds towards the
electric power generators
note 8.8). These
al expenditures incurred
un of the above mentioned
ant for commercial
88 million) being the
ng process from wet to
2008
23. LONG TERM INVESTMENTS
Investment at fair value through profit or loss
Cost of acquisition 1161
Less: Provision for diminution in value
Fair value
24. LONG TERM LOANS AND

Director 24.1
Employees 24.2 2033
2033
Less: Current portion shown under current assets 30
1245
24.1 The above loan has been repaid by director during the year.
24.2 These represent loans given for the purposes of house building, purchase of motor cars
/ motor cycles, house repair loans and emergency loans. House building and vehicle
24.3 Maximum aggregate balances due from the director and executives during the year were
Rs. 360 thousand and Nil (2007: directors Rs. 360 thousand and executives Rs. Nil)
25. LONG TERM DEPOSITS & PREPAYMENTS

Security deposit rented premises 5038
Security deposits trade 1466
Other deposits 25.1 48403
54907
25.1 It includes Rs.48 million of security deposit paid against lease facility to be availed from
Askari Bank Ltd (referred to note 8.9).
26. DEFERRED COST
Discount on issue of shares 100000
Less: Amortized during the year 37 20000
Amortized during previous years 65808
85808
14192
26.1 During the year 2004, the Company issued 20 million ordinary shares of Rs. 10 each at
a discounted price of Rs. 5 each which resulted into a discount of Rs. 100 million.

2007
Rupees in thousand)
1161
508 219
653 942
))))) 360
2149
2509
788 799
1710
urchase of motor cars
ng and vehicle
es during the year were
88
1466
344
1898
lity to be availed from
100000
20000
45808
65808
34192
ares of Rs. 10 each at
2008
27. STORES, SPARES AND LOOSE TOOLS

Stores 27.1 195109
Spares 66448
Loose tools
262388
27.1 Stores include storesintransit valuing Rs. Nil (2007: Rs.26.62 million).
28. STOCK-IN-TRADE
Raw materials 36.1 11701
Workinprocess 36 30967
Finished goods 36 34652
Packing materials
77753
29. TRADE DEBTORS - unsecured

Considered doubtful
Less: Provision for doubtful debts

30. LOANS AND ADVANCES - unsecured, considered good

Advances to staff
Advances for expenses 30.1 5565
Advances against salary 1408
Advances for wheat purchase
Other advances 1742
9333
Advances to suppliers 30.2 497311
Current portion of long term loans
and advances to staff 24
507432
30.1 Advances for expenses include an amount of Rs. Nil (2007: Rs. 272 thousand) due from
directors.
30.2 Advances to suppliers include an amount of Rs. Nil (2007:Rs.15 million) paid as advance
to an associated company M/S Balochistan Glass Limited against supply of specified
31. TRADE DEPOSITS AND SHORT TERM PREPAYMENTS
Guarantee margin deposits 19726
Prepaid guarantee commission 5775
Prepaid rent
Other prepayments
26956

2007
Rupees in thousand)
114570
61085
831 663
176318
11701
30967
34652
433 433
77753
442 442
442 442
))))) )))))
3220
918
618 1165
874
6177
187515
788 799
194491
2 thousand) due from
illion) paid as advance
ply of specified
19726
886
800 2746
655 1028
24386
2008
32. ACCRUED INTEREST
On:
Bank deposits
Employees’ loan
33. OTHER RECEIVABLES

Sales tax input claimable 33.1 78216
Advisory fee receivable 33.2 4219
Others 2778
85213
33.1 This includes sales tax deducted on import of plant & machinery that is to be claimed
under the provisions of Sales Tax Act, 1990 in the next year.
33.2 This fee was paid to Orix Investment Bank Limited for advisory and arrangement of the
proposed TFCs issue of Rs.400 million. However, the said transaction was not execut
34. CASH AND BANK BALANCES
With banks
on current accounts 126503
on escrow account
on special account 34.1 1326
on deposit account 34.2 10050
on saving accounts 34.3 15977
on dividend account
154336
Cash in hand 34.4 2170
156506
34.1 This represent the amount kept under a saving account received from customers as
security deposit. (Refer to Note 11).
34.2 This represent the Fixed Deposit made with First Dawood Investment Bank Ltd as a
security of issuance of PPTFC (referred to Note 6) where as last year’s figure represen
34.3 These include Rs.15 million (2007: Rs. 15 million) withheld by banks under lien in
connection with a letter of guarantee given by a commercial bank on behalf of the
34.4 Cash in hand includes cheques in hand amounting to Rs. Nil (2007: 502.75 million).
35. SALES - net
Cement sales
Less:Sales tax
Excise duty
Discount/Rebate to dealers


2007
Rupees in thousand)
))))) 35
332 564
332 599
25567
4219
1668
31454
that is to be claimed
nd arrangement of the
d transaction was not executed
10525
480 312
1369
200000
34999
))))) 879
248084
502848
750932
rom customers as
ment Bank Ltd as a
as last year’s figure represents
ks under lien in
cial bank on behalf of the
7: 502.75 million).
))))) 771759
))))) 100664
))))) 141872
))))) 7507
))))) 250043
))))) 521716
2008
36. COST OF SALES
Raw materials consumed 36.1
Packing materials consumed
Stores and spares consumed
Salaries, wages and benefits
Fuel and power consumed
Electricity consumed 10660
Coal consumed
Sui gas Kiln
10660
Rent, rates and taxes 1248
Repair and maintenance
Insurance 1029
Vehicle running & traveling
Other expenses 262
Depreciation 20.6 61939
75230
Adjustment of workinprocess inventory
Opening 30967
Closing 28 30967

Cost of goods manufactured 75230
Adjustment of finished goods inventory
Opening 34652
Closing 28 34652

75230
Cement consumed in CWIP new cement plant
75230
36.1 Raw materials consumed
Opening stock as at July 01 11701
Cost of raw materials:
Outside purchases and transportation cost
Explosives
Royalty
Excise duty

Salaries, wages and benefits
Repair and maintenance
Stores and spares
Insurance
Vehicle running & traveling
Other overheads
11701
Closing stock as at June 30 28 11701

2007
Rupees in thousand)
))))) 80741 )
))))) 37699 )
))))) 12734 )
92 ) 87084 )
) 102799 )
))))) 126490 )
))))) 137677 )
) 366966 )
) 1402 )
))))) 34762 )
) 1938 )
))))) 2340 )
) 1400 )
) 66234 )
) 693300 )
) 102991 )
30967
))))) 72024 )
) 765324 )
) 26180 )
34652
))))) 8472
) 756852 )
))))) 46704
) 710148 )
) 3866 )
))))) 22690 )
))))) 1816 )
))))) 3488 )
))))) 723 )
))))) 28717 )
))))) 44861 )
))))) 7630 )
))))) 4245 )
))))) 830 )
))))) 1435 )
))))) 858 )
) 92442 )
11701
))))) 80741 )
2008
37. GENERAL AND ADMINISTRATIVE EXPENSES
Salaries, wages and benefits 22422
Vehicles’ running and maintenance 1376
Traveling and conveyance 3012
Legal and professional charges 7465
Auditors’ remuneration 37.1 575
Postage, telegram and telephone 1648
Printing and stationery 543
Insurance 200
Rent, rates and taxes 6922
Fee and subscription 1702
Entertainment 879
Utilities 796
Advertisement 108
Repair and maintenance 1233
Discount on issue of shares amortized 26 20000
Miscellaneous 607
71778
37.1 Auditor’s remuneration
Viqar A. Khan
Audit fee 250
Half year review fee 150
Corporate consultancy
Certification and others 125
Outofpocket expenses
575
Rahman Sarfraz & Co.
Cost audit fee
Outofpocket expenses

Aftab Nabi & Co.
Internal audit fee
575
38. SELLING AND DISTRIBUTION EXPENSES
Salaries, wages and benefits 38.1 3388
Vehicles’ running and maintenance 688
Postage, telegram and telephone 294
Electricity 107
Advertisement & sale promotion
Insurance 629
Miscellaneous
5408
38.1 This includes dues in respect of final settlement of certain employees who left employment
during the year.
2007
Rupees in thousand)
18507
1119
1027
1878
657
484
330
277
2715
936
345
448
288
479
20000
115
2352
51957
250
63
)))) 50
140
50 35
538
)))) 35
)))) 4
)))) 39
)))) 80
657
911
559
254
170
12 80
160
)))) 770
471
3375
ees who left employment
Note
39. OTHER OPERATING EXPENSES
Donations (without directors’ interest)
Exchange fluctuation loss on translation of foreign
currency long term loans and others net
Provision for diminution in value of investments
Zakat
40. OTHER OPERATING INCOME

Profit/markup on:
Bank deposits
Employee’s loans
Temporary advances to associated company
Unclaimed balances writtenback
Profit on disposal of fixed assets
Scrap sales
Gain on sale of store
Rental income 40.1
Others
40.1 This represents rent on colony quarters given to exemployees of the company who had
been terminated during the last year and rent of shops.
41. FINANCE COSTS
Interest/markup on:
Redeemable capital
Long term loans and finances
Long term foreign currency loans
Short term finances
Employees’ provident fund
Workers’ (profit) participation fund
Lease finance charges
Advisory fee and other charges
Commission on bank guarantees
Bank charges and others
42. LOSS PER SHARE

Basic earnings/(loss) per share
Loss for the year attributable
to ordinary shareholders Rupees in thousand
Weighted average number of
ordinary shares outstanding
during the year Numbers
Loss per share Rupees
2008 2007
110 ) 121 )
17877 ) 10264 )
290 ) 20 )
)))) 20 )
18277 ) 10425 )
806 ) 7624 )
46 ) 172 )
3343 ) 2388 )
4195 ) 10184 )
)))) 2080 )
30 ) 282 )
2408 ) 2842 )
)))) 16107 )
6293 ) )))))
355 ) 654 )
13281 ) 32149 )
he company who had
47329 ) 27953 )
10472 ) 13532 )
)))) 6092 )
39159 ) 19724 )
1584 ) 1750 )
2960 ) )))))
28461 ) 33721 )
)))) 2297 )
2781 ) 6040 )
3424 ) 1359 )
136170 ) 112468 )
Restated
2008 2007
315198 222916
224798316 ) 189407812 )
1.4 1.18
REPORT 2008
Diluted earnings per share
has no such commitments.
43. CASH GENERATED/(UTILIZED) FROM OPERATIONS Note

Net loss before taxation
Adjustments for non cash charges and others:
Depreciation on operating fixed assets
Profit on sale of fixed assets
Profit/Interest income for the year
Provision for compensated absences
(Reversal)/provision for diminution in value of investments
Provision for gratuity
Financial charges
Loss due to exchange fluctuation
Taxes and duties
Amortization of discount on issue of shares
Gain on sale of investments in associate
Working capital changes 43.1
43.1 Working capital changes

(Increase)/decrease in current assets
Stores, spares and loose tools
Stock in trade
Loans and advances
Trade deposits and short term prepayments
Other receivables
Increase/(decrease) in current liabilities
Trade and other payables

2008 2007
363082 202074
64519 ) 117691 )
30 282
4195 10184
376 ) 922 )
290 ) 20 )
3684 ) 14392 )
136170 ) 112468 )
17877 ) 10264 )
11640 ) 146083 )
20000 ) 20000 )
))))) 132434
250331 ) 278940 )
112751 76866 )
566131 191790 )
678882 268656 )
86070 33187 )
))))) 57970 )
312952 94650
2570 750 )
53759 30983
455351 33726
110780 225516 )
566131 191790 )
REPORT 2008

44. FINANCIAL INSTRUMENTS
44.1 Interest rate risk

The Company’s exposure to interest rate risk on its financial assets and liabilities as at
the balance sheet date, are summarized as under:
Interest /markup bearing
Maturity
Maturity after one
upto one year and
year upto five
years
Financial assets
Investments ))))
Loans and advances to staff788 1245
Long term deposits
and prepayments ))))
Trade deposits and short
term prepayments ))))
Accrued interest ))))
Other receivables ))))
Cash and bank balances 17,303
18091 1245
Financial liabilities
On balance sheet
Redeemable capital 160 399840
Murabaha finance 59467 107041
Long term loans, finances
and other payables 414208 4244390
Long term foreign currency
loans and other payables ))))
Liabilities against assets subject
to finance lease 95474 107520
Long term deposits
from customers ))))
Short term loans
& finances 152887
Trade and other payables ))))
Accrued interest ))))
722196 4858791
Off balance sheet
Guarantees ))))
Commitments (Refer note 19.12) ))))
))))
722196 4858791
The effective interest/markup rates for the monetary financial assets and liabilities are
mentioned in respective notes to the financial statements.
44.2 Foreign exchange risk management:
Foreign currency risk arises mainly where receivables and payables exist due to transactions
with foreign undertakings. Payables exposed to foreign currency risk are not covered
44.3 Concentration of credit risk:
Credit risk represents the accounting loss that would be recognized at the reporting date
if counter parties completely failed to perform as contracted. The company believes that
44.4 Fair value of financial assets and liabilities
The carrying value of all financial assets and liabilities reflected in the financial statements
approximate to their fair values.
53 ANNUAL REPORT 20
d liabilities as at
Noninterest /markup bearing
Maturity
Sub Maturity after one Sub
Total upto one year and Total
year upto five
years
)))) )))) )))) 653 653

2033 9333 )))) 9333
)))) )))) )))) 54907 54907
)))) )))) 19726 )))) 19726

)))) )))) 332 )))) 332
)))) )))) 5504 )))) 5504
)))) 17303 139203 )))) 139203
19336 174098 55560 229658
400000 )))) ))))

166508 )))) ))))
4658598 )))) 894285 894285
)))) )))) )))) ))))
202994 )))) ))))
)))) )))) )))) 1150 1150
)))) 152887 ))))

)))) )))) 430426 )))) 430426
)))) )))) 311185 )))) 311185
5580987 741611 895435 1637046
)))) )))) 277264 737760 1015024

)))) )))) 172600 )))) 172600
)))) )))) 449864 737760 1187624
5580987 1191475 1633195 2824670
and liabilities are
ist due to transactions
are not covered
the reporting date
pany believes that
financial statements
ANNUAL REPORT 2008

Total Total
2008 2007
653 942
11366 8687
54907 1898
19726 19726
332 599
5504 5504
156506 750932
248994 788288
)))) 400000 ))))

)))) 166508 ))))
5552883 3632147
)))) )))) 188097
)))) 202994 234514
1150 1225
)))) 152887 298540

430426 526163
311185 123834
7218033 5004520
1015024 677265
172600 1782109
1187624 2459374
8405657 7463894
45. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
Chief Executive
Particulars
2008
Managerial Remuneration )))
Perquisites and benefits
House rent )))
Personal staff salary )))
Entertainment )))
Utilities and others )))
)))
Contribution to:
Provident Fund Trust )))
)))
Number of persons )))
45.1 Chief Executive, directors and executives are entitled to free use of the company’s transport
and residential telephones.
46. TRANSACTIONS WITH RELATED PARTIES

The related parties comprise associated company/undertakings, directors of the Company,
key management staff and staff retirement funds. Details of transaction with related parties
Associated Companies:
Balochistan Glass Limited (BGL)
Sale of stores (including sales tax)
Purchase of stores (including sales tax)
Interest received
Interest charged
Expenses incurred
Expenses paid on behalf of GCL
Loan/advances given to BGL
Repayment of loan/advances given to BGL
Directors
Loan received during the year
Loan paid during the year
Mark up paid during the year
Prior year’s figures represent transactions with a past associated undertaking Dandot Cement
Company Limited.
All transactions were carried out on commercial terms and conditions and were valued at
arm’s length price using Comparable Uncontrollable Price method. Remuneration and benefits
47. NUMBER OF EMPLOYEES
Number of permanent employees at balance sheet date

AND EXECUTIVES
Dirctors Executives
2007 2008 2007 2008 2007

705 750 1676 5793 4888
351 333 890 1671 1116

))) ))) 154 254 166
))) 55 334 78
75 42 455 1816 2203
426 430 1833 3819 3563
))) 18 112 135 78
1,131 1,198 3,621 9,747 8,529
1 2 3 10
f the company’s transport
tors of the Company,
n with related parties
2008 2007
)))) 134274
1027 18996
3343
)))) 2388
)))) 4000
35
10000
23938
1588527 1752065
1516378 4075000
156966 37849
rtaking Dandot Cement
and were valued at
muneration and benefits
2008 334 2007

Nos. Nos.
REPORT 2008
78
))))
))))
))))
))))
271
48. CAPACITY AND PRODUCTION - TONNES
Clinker
2008
Plant capacity 540000
Actual production )))))
During the financial year under consideration, the wet process plant remained closed due to
high operating cost as compared to low price of cement in the market. So it was not feasible
49. GENERAL
These financal statements have been authorized for issue by the Board of Directors of the
Company in its meeting held on October 04, 2008.
50. CORRESPONDING FIGURES
Corresponding figures have been rearranged and reclassified, wherever necessary, for the
purpose of comparison. However, no rearrangement and reclassification is made in these
51. LEVEL OF PRECISION

Figures have been rounded off to the nearest of thousand rupees, unless otherwise stated.
(ASIF MUHAMMAD ALI)
Director

Cement
2007 2008 2007
540000 568420 568420
155190 ))))) 202225
emained closed due to
So it was not feasible
of Directors of the
er necessary, for the
on is made in these
ss otherwise stated.
Director
Form of Proxy
The Secretary
Gharibwal Cement Limited
LAHORE.
I/We of
Gharibwal Cement Limited, and holder of Ordinary Shares as per Shares Register
Folio No. hereby appoint Mr./Mrs./Ms.
of
Folio No. who is also a member of Gharibwal Cement Limited as my/our
As witnessed given under my / our hand (s) day of October, 2008.
WITNESS:
Signature
Name
Address
Note:
1 The Proxy in order to be valid must be signed across a Five Rupees Revenue Stamp a
be deposited in the Registered Office of the Company not later than 48 hours before t
2 No person shall act as proxy unless he is a member of the Company.
3 Signature should agree with the specimen signature registered with the Company.

Proxy
being a member of
per Shares Register
ent Limited as my/our
f October, 2008.
Signature
On five
Rupees
Revenue
Stamp
ve Rupees Revenue Stamp and should
t later than 48 hours before the time
stered with the Company.

Annual 2008

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Annual 2008

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GHARIBWAL CEMENT LIMITED

Mr. Asif Muhammad Ali AUDIT COMMITTEE

3 ANNUAL REPORT 2008

Notice of Annual Gener

4 ANNUAL REPORT 2008

Notice of Annual Gener

5 ANNUAL REPORT 2008

STATEMENT U/S 160 OF THE COMPANIES ORDINANCE, 1984

ITEM NO.4 TO ACCORD TEMPORARY SHORT TERM ADVANCE FACILITY TO BALO

Paid up Capital 858 Long Term Loans / Leases

6 ANNUAL REPORT 2008

7 ANNUAL REPORT 2008

8 ANNUAL REPORT 2008

GHARIBWAL CEMENT LIMITED

9 ANNUAL REPORT 2008

Review Report to the Memb

10 ANNUAL REPORT 2008

Directors’ Report to the Me

Operational Performance of the Old Cement Plant

Clinker Production M. Tons 2008

Cement Production M. Tons Nil

Despatches M. Tons Nil

11 ANNUAL REPORT 2008

Nil 162124 2007

GHARIBWAL CEMENT LIMITED

12 ANNUAL REPORT 2008

Significant Plans & Decisions

Corporate and Financial Reporting Framework

13 ANNUAL REPORT 2008

ANNUAL REPORT 2008

12. Trading in Company

15 ANNUAL REPORT 2008

Debt : Equity Ratio 2.94 2.5 .24 .35

Interest Cover Ratio 2.31 1.97 5.24 2.57

16 ANNUAL REPORT 2008

561,735 936,352 812227 969046 755305

66,875 (257,186) (487,068) (330,152) 66696 22231

8.21 24.31 .16 7.53 12.5 7.59

9.9 35.56 16.76 27.6 4.59 20.02

11.25 ­ ­ ­ 6.65 7.77

3.57 1.65 .35 .57 1.36 1.77

ANNUAL REPORT 2008

19 ANNUAL REPORT 2008

20 ANNUAL REPORT 2008

as at June 30, 2008

21 ANNUAL REPORT 2008

Profit and Loss Account

22 ANNUAL REPORT 2008

Cash Flow Statement

24 ANNUAL REPORT 2008

­ ))))) ­ ))))) ­222916 ­222916

­ ))))) ­13878 ­ )))))

­ ))))) ­ ))))) 34121 )

­ ))))) ­ ))))) ­ )))))

­ ))))) ­ ))))) ­315198 ­315198

­ ))))) ­ ))))) 32970 )

Notes to the Accounts

25 ANNUAL REPORT 2008

26 ANNUAL REPORT 2008

ished approved accounting standards that

27 ANNUAL REPORT 2008

28 ANNUAL REPORT 2008

29 ANNUAL REPORT 2008

11.25 6.65 7.77

))))) ))))) 222916 222916

))))) 13878 )))))

))))) ))))) 34121 )

))))) ))))) )))))

))))) ))))) 315198 315198

))))) ))))) 32970 )

67568 62221 60017

510 119486 7216 126702 67331

510 3227 19 3246 178

20 95400 838 96238 3353

5 558519 26108 584627 496046

10 26918 1419 28337 12874

5 22532 18187 40719 345552

)))) )))) )))) 653 653

)))) )))) )))) 54907 54907

)))) )))) 19726 )))) 19726

400000 )))) ))))